Bankruptcy

  • June 26, 2017

    Madoff Trustee Inks $23M Deal With Fraudster's Sons' Estates

    The trustee overseeing the unwinding of Bernard Madoff’s investment firm struck a $23 million deal with the estates of Madoff’s two sons, according to court papers filed Monday in New York showing the estates of each brother will be left with $3.75 million combined.

  • June 26, 2017

    The Supreme Court Term By The Numbers

    Despite a contentious confirmation hearing for Justice Neil Gorsuch, the U.S. Supreme Court term itself was mellow this year, with more unanimous cases and fewer controversial decisions. Still, there were a handful of business rulings that packed a punch.

  • June 26, 2017

    The Firms That Won Big At The Supreme Court

    One firm went undefeated at the U.S. Supreme Court this term. Another built on last year’s winning streak. And some high court powerhouses took their lumps. Here, Law360 breaks down how the firms most frequently seen at oral arguments performed this term.

  • June 26, 2017

    IP Cases Led The Pack In High Court Amicus Briefs

    Intellectual property cases took four of the top 10 spots on Law360's ranking of the U.S. Supreme Court cases that attracted the most amicus briefs this term, as disputes involving issues like patent exhaustion and offensive trademarks each generated dozens of amicus filings.

  • June 26, 2017

    'Soup Nazi' Distributor Says Investor Tried To Disrupt Ch. 11

    The company that distributes products from the chef that inspired the Soup Nazi character on “Seinfeld” asked the Delaware bankruptcy court on Monday to stop what it claimed was a malicious attempt by a penny stock investment firm to derail its bankruptcy.

  • June 26, 2017

    Central Grocers Announces Liquidation Of Food Inventory

    A pair of liquidators announced Monday that $20 million in food inventory is being sold off at the Illinois headquarters and distribution center of Central Grocers Inc., a grocery chain and cooperatively owned wholesaler being wound down and liquidated under Chapter 11 bankruptcy.

  • June 26, 2017

    Customers Seek Early Win In AMR-US Airways Merger Dispute

    A group of travel agents and customers with long-running antitrust claims against American Airlines parent company AMR Corp. over its acquisition of US Airways asked a New York bankruptcy judge Friday to award them a pretrial judgment and unwind the airline tie-up based on U.S. Supreme Court precedent.

  • June 26, 2017

    EFH Gets Nod For Up To $6.3B In Replacement DIP Financing

    A Delaware bankruptcy judge gave Energy Future Holdings Corp. the nod Monday for up to $6.3 billion in replacement debtor-in-possession financing aimed at preventing a jam when its current post-petition loan matures in four days and covering the power giant if its historic case stretches into 2018.

  • June 26, 2017

    US Trustee Blasts Ryckman Creek's Executive Bonus Plan

    The U.S. trustee on Monday objected in Delaware bankruptcy court to natural gas storage venture Ryckman Creek Resources’ proposed $2.5 million executive incentive plan, saying it’s impossible to determine if the incentive targets were set too low.

  • June 26, 2017

    Bankrupt IT Co. Pays Investors $1.3M Over Faulty Reporting

    Bankrupt information technology servicer Code Rebel Corp. has agreed to pay $1.3 million to end a proposed investor class action alleging its executives approved inaccurate financial statements, according to a settlement filed in New York federal court Monday.

  • June 26, 2017

    Takata Ordered To Pay $8M In US Virgin Islands Air Bag Suit

    A U.S. Virgin Islands judge on Saturday ordered Takata Corp. to set aside $8 million to cover civil penalties and the cost to drivers who have to replace the potentially fatal air bags, a day before the company’s U.S. business filed for Chapter 11 protection.

  • June 26, 2017

    9th Circ. Won't Rethink Tossing Ariz. Road Easement Row

    The Ninth Circuit stayed firm Friday on its decision to undo a district court’s conclusion that an easement for a road that cuts across the Gila River Indian Community’s reservation permitted a Chapter 11 trustee to develop a piece of land into a housing tract, a decision that ultimately tossed the dispute entirely.

  • June 26, 2017

    2nd Circ. To Reduce Fee Award In $655M Madoff Settlement

    The Second Circuit on Monday approved the general shape of a $655 million class action settlement involving investors in hedge funds that placed money with Bernard Madoff’s investment firm, but said attorneys’ fees were set too high given the low risk they took on.

  • June 26, 2017

    GulfMark Offshore Gets OK To Poll Creditors On Ch. 11 Plan

    A Delaware bankruptcy judge gave GulfMark Offshore Inc. the go-ahead Monday to poll creditors on its Chapter 11 plan to swap out more than $400 million in debt for equity in a reorganized company, noting that the disclosure statement described a “very complicated” restructuring transaction.

  • June 26, 2017

    Plaintiffs Bar Perspective: Susman Godfrey's Matthew Berry

    Cases are typically decided based on a relatively small number of key issues. It is critical not only to identify those key issues at the outset of the case, but to also plot a strategy for getting them resolved in your favor, says Matthew Berry of Susman Godfrey LLP.

  • June 25, 2017

    Air-Bag Maker Takata Files For Bankruptcy In Delaware, Japan

    The U.S. business of embattled Takata Corp. filed for Chapter 11 protection in Delaware late Sunday, with the parent company following suit in Tokyo Monday morning.

  • June 23, 2017

    $20.5M Ch. 11 Bid Approved For Molycorp Rare Earth Mine

    The nation’s largest rare earth mine took a long but tentative step back from the dead Friday after receiving Delaware bankruptcy court approval of a $20.5 million cash deal for Molycorp Minerals LLC that also covered more than $100 million of potential environmental liabilities.

  • June 23, 2017

    Stalking Horse Fight Heats Up In Joe's Crab Shack Ch. 11

    The bankrupt parent company of Joe's Crab Shack traded barbs Friday with hospitality giant Landry's Inc. over the debtors’ choice to stick with a $50 million stalking horse bid from another competitor instead of accepting a $55 million offer from Landry’s ahead of a proposed Chapter 11 auction.

  • June 23, 2017

    Judge Denies Implant Sciences Investors A Solicitation Agent

    A request from shareholders of bomb detection hardware maker Implant Sciences to retain a solicitation agent for the company’s proposed Chapter 11 plan failed to receive court approval Friday in Delaware because the court determined the services were unnecessary.

  • June 23, 2017

    Bankrupt Hospital Laundry Co.'s $125M Sale To KKR OK'd

    A New York bankruptcy judge on Friday approved the $125 million sale of Angelica Corp. to a KKR & Co. LP affiliate, saying he was satisfied the medical laundry and linen management company had fielded the best offer to continue as a going concern when it emerges from Chapter 11.

Expert Analysis

  • Tips For Complying With ABA’s New Encryption Guidance

    Nick Holda

    Last month, the American Bar Association published revised guidance regarding an attorney’s duty to protect sensitive client material in light of recent high-profile hacks. The first step in compliance is understanding how your data is being stored and accessed. There are three key questions you should ask your firm’s information technology staff and/or external solution vendors, says Nick Holda of PreVeil.

  • A Closer Look At Midland Funding V. Johnson

    Phoebe Winder

    The U.S. Supreme Court's ruling in Midland Funding v. Johnson is certainly a win for creditors — especially those that purchase distressed debt and participate in bankruptcy proceedings. Yet, a closer analysis of the majority opinion reveals a number of issues meriting careful consideration, say attorneys with K&L Gates LLP.

  • Puerto Rico Fiscal Reform: The End Of The Beginning

    Bradley Wendt

    Puerto Rico's recent petition for court protection created the largest municipal bankruptcy in U.S. history. Here, Bradley Wendt of Charles River Associates reviews the legislative process leading to the filing for court protection and analyzes the dominant debt restructuring issues being considered by the court and stakeholders.

  • Weekly Column

    Innovating For Wise Juries: Preliminary Instructions

    Richard Lorren Jolly

    One of the easiest ways to improve civil jury trials is to give juries substantive instructions on the law at the beginning of the trial rather than at its conclusion. It is also one of the most popular proposals we are recommending, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.

  • Due Diligence From The Lateral Partner’s Perspective

    Howard Flack

    Lateral candidates looking to make the last — or perhaps only — move of their career cannot afford to just stand by and let a law firm’s vetting process unfold on its own, says Howard Flack, a partner at Volta Talent Strategies who previously led lateral partner recruiting and integration at Hogan Lovells.

  • Lateral Partner Due Diligence: Where Should A Firm Begin?

    Howard Flack

    One frequently hears from leading malpractice insurers that one of the highest risk categories for law firms is that of lateral partners not sufficiently vetted during the recruitment process, says Howard Flack, a partner at Volta Talent Strategies Inc. who previously led lateral partner recruiting and integration at Hogan Lovells.

  • Has EU Really Made Cross-Border Asset Preservation Easier?

    Jef Klazen

    While the new European Account Preservation Order promises to harmonize protective account measures across 26 European Union member states, certain EAPO features mean it might not always be the best choice for judgment creditors deploying an international litigation strategy, say attorneys with Kobre & Kim LLP.

  • A Look At Credit Agreements In Insurance: Part 2

    Excerpt from Lexis Practice Advisor
    Daniel Rabinowitz

    Using the same standard credit agreement provisions for all types of borrowers and guarantors hurts both borrowers and lenders. This is especially true of borrowers and loan parties subject to insurance regulations and market conditions, say Daniel Rabinowitz and David Berg in the final part of this article.

  • A Look At Credit Agreements In Insurance: Part 1

    Excerpt from Lexis Practice Advisor
    Daniel Rabinowitz

    Insurance companies and insurance holding companies are subject to a complicated tangle of laws, regulations and market conditions, and therefore need special provisions in their credit agreements. Certain representations and warranties, conditions, and events of default must be modified to account for such borrowers, say Daniel Rabinowitz and David Berg of Kramer Levin Naftalis & Frankel LLP.

  • Sunnyslope Has Important Ramifications For Secured Lenders

    Michael Pankow

    The Ninth Circuit’s opinion may not be the last word in the matter of Sunnyslope Housing Limited Partnership, as the dissent implicitly urged U.S. Supreme Court review. In the meantime, the ruling is binding within the Ninth Circuit and will be persuasive precedent in other jurisdictions, say Samuel Kidder and Michael Pankow of Brownstein Hyatt Farber Schreck LLP.