Bankruptcy

  • April 24, 2017

    ATopTech Seeks $6M DIP Financing For Stalking Horse Sale

    Bankrupt microchip maker ATopTech Inc. on Friday asked a Delaware bankruptcy court to approve a $6 million debt facility provided by the Hong Kong businessman whose $9 million stalking horse offer for the company’s assets was approved last week.

  • April 24, 2017

    Gawker Defends Bid To Investigate Hulk Hogan's Backer

    Gawker Media LLC on Monday struck back against objections to its request for an investigation into whether its creditors are being funded by billionaire Peter Thiel, who funded the Hulk Hogan privacy lawsuit that brought about its demise, telling a New York bankruptcy judge the examination is entirely proper.

  • April 24, 2017

    Solar Co. Verengo Gets OK On Ch. 11 Plan, Sale To Creditors

    A Delaware bankruptcy judge gave rooftop solar company Verengo Inc. the nod Monday for its Chapter 11 plan that implements a sale to a joint venture of Angeleno Group LLC and ClearSky Power & Technology Fund, both major creditors in the case.

  • April 24, 2017

    Wells Fargo Ditches Restrictions Over 'Living Will' Issues

    Federal regulators removed restrictions that barred Wells Fargo & Co. from opening international branches or purchasing nonbank firms, saying in a letter Monday that the bank had fixed deficiencies in its "living will," a plan that details how to take it apart during a crisis.

  • April 24, 2017

    Dewey Execs Pin Hopes On Undermining State's Case

    Defense attorneys for two former Dewey & LeBoeuf LLP executives told a New York judge on Monday that they will not present full-blown defense cases, meaning a jury will likely start weighing the financial-crisis-era fraud case next week.

  • April 24, 2017

    Adams Resources Subsidiary Hits Ch. 11 With Sale Plans

    A subsidiary of Adams Resources & Energy Inc. hit Chapter 11 on Friday in Delaware bankruptcy court with a plan to auction its assets after several years of depressed oil prices caught up with the exploration firm’s bottom line and created a liquidity shortage for the company.

  • April 24, 2017

    5th Circ. Backs Dismissal Of ATP Investor Suit

    The Fifth Circuit on Friday upheld the dismissal of a shareholder suit accusing executives of now-bankrupt ATP Oil & Gas Corp. of giving misleading information about its financial health and boardroom turmoil, saying there's no evidence the company intended to deceive investors.

  • April 24, 2017

    Rupari Says Ch. 11 Adversary Process Must Move Swiftly

    Attorneys for bankrupt meat distributor Rupari Food Services Inc. told a Delaware judge Monday that an adversary proceeding it filed against Tony Roma's Steakhouse regarding a licensing agreement needs to be resolved as quickly as possible to maintain its post-petition funding and stalking horse bid.

  • April 24, 2017

    BCBG Can Cancel Azria Employment Contract, Judge Says

    A New York federal judge decided Monday that bankrupt women's apparel company BCBG Max Azria Group Inc. can escape a $7 million golden parachute payment to founder Max Azria's wife Lubov, ruling her employment contract and the company’s 2015 restructuring agreement are not integrated.

  • April 24, 2017

    Bankrupt Ciber Sues Wash. Board Over Software Deal

    Bankrupt information technology company Ciber Inc. sued the state of Washington in an adversary proceeding on Friday, saying it and a state education board owe $13 million for a computer system Ciber has ready but that, due to internal dysfunction, the state board hasn't implemented.

  • April 24, 2017

    5th Circ. Largely Sides With SEC In Life Partners Appeal

    The U.S. Securities and Exchange Commission persuaded the Fifth Circuit to partly reinstate a jury verdict against two executives at “death bonds” trader Life Partners Holdings Inc. on Friday, but the appeals court also threw out civil penalties after finding that the lower court miscalculated.

  • April 24, 2017

    Trio Of Directors Urge US Bankruptcy Court To Nix Israeli Suit

    Three former directors of Chapter 15 debtor and now-defunct electric car company Better Place Inc. again urged a Delaware bankruptcy court on Friday to toss a suit its liquidators have brought against them in Israeli court, saying U.S. law still applies in that case.

  • April 24, 2017

    Great Lakes Pipeline Seeks OK Of Essar Contract Fight Deal

    TransCanada Corp. unit Great Lakes Gas Transmission LP told a Delaware bankruptcy court Friday to approve a bid from Chapter 11 debtor Essar Steel Minnesota LLC to allow a $33 million proof of claim that would settle a long-running contract dispute with the natural gas transporter, calling objections to the bid confounding.

  • April 24, 2017

    Justices Won't Hear GM's Appeal Of Bankruptcy-Shield Ruling

    The U.S. Supreme Court on Monday refused to review a federal appeals court's decision that General Motors must bear responsibility for some of its predecessor company's actions even after a 2009 bankruptcy, potentially exposing it to hundreds of millions of dollars in liability over defective ignition-switch claims.

  • April 21, 2017

    Retailer Bebe Will Shut All Stores To Avoid Bankruptcy

    Women’s clothing maker Bebe Stores Inc. is the latest in a string of mid-size apparel retailers to call it quits it recent months, announcing Friday it will close all of its 180 stores by next month amid talk of transitioning to online sales, in an effort to avoid bankruptcy.

  • April 21, 2017

    Westinghouse Ch. 11 Threatens Fate Of US Nuclear Projects

    The recent bankruptcy filing of Westinghouse Electric Co. LLC, Toshiba’s global nuclear energy arm, could put the fate of its unfinished nuclear reactor projects in the U.S. at risk, the Congressional Research Service said, noting concern over the federal government’s $8.3 billion in guaranteed liabilities.

  • April 21, 2017

    Bankrupt Ryckman Creek Floats Deal With Gas Storage Client

    Ryckman Creek Resources LLC proposed a settlement Friday in Delaware bankruptcy court that would resolve both prepetition and post-petition litigation brought by Anadarko Energy Services Co. relating to gas storage contracts at the debtor’s Wyoming facility.

  • April 21, 2017

    Dewey Prosecution Rests In Retrial, Defense Plans Unclear

    New York prosecutors finished laying out their fraud case Friday against two former executives of failed law firm Dewey & LeBoeuf LLP, turning the focus to whether Stephen DiCarmine and Joel Sanders will take the stand in their own defense before the jury starts deliberations.

  • April 21, 2017

    BCBG Says Court Can Quickly Resolve Azria Contract Feud

    Bankrupt women's apparel company BCBG Max Azria Group Inc. Wednesday again pushed for a quick resolution of its contract dispute with founder Max Azria and his wife Lubov, once again arguing the company’s 2015 restructuring agreement and Lubov’s employment agreement are two separate contracts.

  • April 21, 2017

    Fla. Judge Sends Eagan Avenatti Bankruptcy To Calif.

    A Florida bankruptcy judge on Friday granted a U.S. trustee's request to move the involuntary Chapter 11 case of class action law firm Eagan Avenatti LLP to California, where the firm, its owners and creditors are based.

Expert Analysis

  • Justice Deferred: What High Court Won't Review In Lakeridge

    Steven Wilamowsky

    The U.S. Supreme Court recently granted certiorari in Village at Lakeridge to consider the deferential standard of review for determining nonstatutory insider status in Chapter 11, but has left other important questions unaddressed, say Steven Wilamowsky and Aaron Krieger of Chapman and Cutler LLP.

  • Satire

    A Law Firm Ranking Model By 'Fake News & Distorted Reports'

    Alan B. Morrison

    Suffering from law firm ranking fatigue? Bewildered by the methodologies? If so, you're in good company. Alan Morrison, associate dean for public interest and public service law at George Washington University Law School, wonders just how far law firm ranking efforts may go.

  • Opinion

    The Hunger Games, Puerto Rico Edition

    Anthony T. Caso

    Puerto Rico’s “general obligation” bondholders are trying to kill off the competition for whatever scraps will be left over when, and if, creditors finally get paid. But their “Hunger Games”-like strategy is bound to fail, says Anthony Caso of Chapman University Fowler School of Law.

  • Fewer 2nd Chances For Failed Retailers

    Christa Hart

    For many retail chains filing for Chapter 11 protection, bankruptcy is often the end of the line rather than a fresh start. Retailers’ long-standing reliance on seasonal asset-based revolvers, trade credit and operating leases may be contributing to this outcome, say Christa Hart and Amir Agam of FTI Consulting Inc.

  • Top 10 Litigation Risks For Retailers In 2017

    Ann Schofield Baker

    With the 2017 retail season in full swing, what issues are keeping retailers up at night? Ann Schofield Baker of Perkins Coie LLP has distilled a list of top retail risks and trends this year, ranging from data breaches, cyber-ransom threats and toxic chemical compliance to the potential for litigation over subjects including shipping fees, discount pricing and website accessibility.

  • When Arbitration Clauses Collide With Bankruptcy Laws

    Laura M. Fontaine

    A bankruptcy trustee or a debtor in possession has several specific powers that frequently come into conflict with a nondebtor’s desire to invoke an arbitration clause. The Fifth Circuit’s recent decision in Janvey v. Alguire pushed back on a trend of expanding the nonsignatory related parties that can be swept into arbitration, says Laura Fontaine of Gruber Elrod Johansen Hail Shank LLP.

  • Crowdfunding For Legal Cases: 5 Trends Reshaping Justice

    Julia Salasky

    Most people have never had an opportunity to personally take part in a legal case that directly challenges laws or policies they don’t agree with. Now that crowdfunding is available for legal cases, people can engage directly with legal change in the community and be a check on the powerful, says Julia Salasky, CEO of CrowdJustice.

  • Opinion

    ABA Needs A New Model Legal Ethics Rule

    Kevin L. Shepherd

    Perhaps lost in the presidential post-election tumult was a report issued in late 2016 by an international body evaluating U.S. compliance with anti-money laundering and counter-terrorist financing standards. Considering repeated criticisms of the legal profession, the American Bar Association should seriously consider a new model legal ethics rule, says Kevin Shepherd of Venable LLP.

  • What Does Lateral Partner Success Look Like?

    Howard Flack

    In the final segment of his series on lateral recruitment, Howard Flack, a partner of Volta Talent Strategies LLC and former leader of the lateral partner recruiting team at Hogan Lovells, shares a number of factors law firms should consider when measuring lateral hire success.

  • Are Lateral Recruitment Opportunities Shaping Your Strategy?

    Howard Flack

    In the second installment of this series on lateral recruiting, Howard Flack of Volta Talent Strategies LLC challenges law firms to ask themselves whether business strategies are determining lateral hires — or vice versa.