Bankruptcy

  • October 16, 2017

    Optima Steel's Revamped Ch. 11 Plan Confirmed In Delaware

    The newly revised Chapter 11 plan of metal maker Optima Specialty Steel Inc. received court approval Monday in Delaware with no creditors objecting to the distribution of the company’s equity to unsecured noteholders.

  • October 16, 2017

    Trenk DiPasquale's Email Excuse Is Shaky, Water Agency Says

    A defunct Newark water agency seeking email correspondence by its former counsel blasted what it called the firm’s attempt to shield the files, telling a New Jersey bankruptcy judge Friday that it doesn’t buy Trenk DiPasquale Della Fera & Sodono PC’s explanation that employees’ digital communications are deleted within a month of their termination.

  • October 16, 2017

    Former RadioShack Employees Object To Del. Ch. 11 Plan

    A group of former employees suing defunct RadioShack over botched mass layoffs urged a Delaware bankruptcy court Monday to shoot down the electronic retailer’s proposed Chapter 11 plan, saying it provides no information on how RadioShack will pay for the proposed class action if the laid-off workers prevail.

  • October 16, 2017

    Bankruptcy Atty Gets 5 Years For Embezzling Millions

    A Connecticut federal court sentenced a bankruptcy attorney Friday to more than five years in prison and ordered him to pay $4.8 million in restitution for embezzling at least $3.4 million, according to prosecutors.

  • October 13, 2017

    Bahraini Bank, Investment Co. Must Face Ch. 11 Suits In US

    A Bahraini bank and the investment arm of a Yemeni bank cannot avoid Chapter 11 clawback suits brought by creditors of Arcapita Bank BSC, a New York bankruptcy judge ruled Friday, saying the parties knowingly availed themselves of the U.S. court system by conducting transactions through domestic accounts.

  • October 13, 2017

    Solar Co. Suniva Gets OK For $3M Boost To DIP Loan

    A Delaware bankruptcy judge on Friday allowed solar panel maker Suniva Inc. to take on roughly $3 million in additional post-petition financing the debtor said was needed to keep up its unusual restructuring efforts that hinge on prosecuting an import relief case before the U.S. International Trade Commission.

  • October 13, 2017

    No Counterclaims For Law Firms In CFBP Illicit Fees Case

    A California federal judge Friday tossed out claims by a trio of law firms for $25 million in damages from the Consumer Financial Protection Bureau for the agency’s suit accusing them of illegally collecting advance fees for debt relief work, but said they could file a new claim for free speech violations.

  • October 13, 2017

    C&J Investor Says $5M Fee Bid Justified By $250M Savings

    Attorneys representing a shareholder of C&J Energy Services Inc. told a Delaware Chancery Court judge Friday that their efforts in a challenge to the $2.9 billion merger of C&J and Nabors Industries Ltd. justify a $5 million fee award because the suit led to a $250 million reduction in the cash paid by C&J in the deal.

  • October 13, 2017

    EFH Reaches Deal Over Vistra Tax Allocation Dispute

    Energy Future Holdings Corp. on Friday told the Delaware bankruptcy court that it came to an agreement resolving a dispute with its former major operating subsidiary for now that allows the ex-unit to file the tax return it wants to on Monday with the possibility that it might be tweaked later.

  • October 13, 2017

    SunEdison Can End IP Contract With Korean Co., Judge Rules

    A New York bankruptcy judge on Friday found that a supply and license agreement between SunEdison Inc. and a Korean company it helped create to manufacture solar materials is governed by New York law and was properly terminated, allowing SunEdison to sell the patent rights to the production process.

  • October 13, 2017

    ‘PwC Did Not Do Its Job’ And Missed $2B Fraud, Judge Told

    PricewaterhouseCoopers LLP fundamentally bungled its auditing responsibilities when it failed to scrutinize mortgage transactions and missed a fraud scheme that led to the downfall of the bank PwC was supposed to monitor, the Federal Deposit Insurance Corp. said in D.C. federal court Friday.

  • October 13, 2017

    OW Bunker Tells 2nd Circ. Subcontractors Can't Claim Fuel

    Bankrupt marine fuel supplier and trader O.W. Bunker AS on Thursday urged the Second Circuit to affirm that several liens against ships that contracted to buy fuel from it belong to O.W., and not to the "subcontractors" that actually delivered the fuel on credit. 

  • October 13, 2017

    Citibank's $1.74B Settlement With Lehman Gets Court's OK

    Citibank NA's agreement to return $1.74 billion to the Lehman Brothers estate and cut short a trial over closeout calculations for derivatives trades that went into default after Lehman's collapse is sealed, as the New York bankruptcy judge who oversaw the monthslong trial happily signed the deal on Friday.

  • October 13, 2017

    Stanford Receiver Renews Fight Over $88M Clawback Verdict

    The court-appointed receiver handling the Ponzi implosion of Stanford International Bank asked a Texas federal judge on Thursday to overturn a jury's decision keeping $88 million in Stanford cash in the hands of the cable and truck-racing magnate who received it shortly before Stanford collapsed.

  • October 12, 2017

    EFH Judge Halts Former Unit From Filing Tax Return

    The Delaware bankruptcy judge presiding over the Energy Future Holdings Corp. Chapter 11 granted the debtor’s request for a temporary restraining order Thursday blocking Vistra Energy Corp., which was once part of the power giant’s corporate structure, from making tax moves that could allegedly hurt the bankruptcy estate.

  • October 12, 2017

    Westinghouse Asks To Use DIP Funds For Nondebtors' Bills

    Nuclear energy contracting giant Westinghouse Electric Co. LLC asked a New York bankruptcy court on Wednesday to authorize amendments to its $800 million postpetition financing arrangement so it can provide emergency funding for struggling nondebtor affiliates overseas.

  • October 12, 2017

    Fresh & Easy Settles Employee Firing Claims For $2.2M

    The liquidating trust for grocer Fresh & Easy has agreed to pay a claim of $2.2 million to settle putative class actions brought by about 900 California workers who said they found themselves jobless without warning, according to a joint motion filed Wednesday in Delaware bankruptcy court.

  • October 12, 2017

    O'Melveny Defends $2.5M Fee Bid In La Paloma Ch. 11

    O'Melveny & Myers LLP defended its roughly $2.5 million fee bid for the La Paloma Generating Co. LLC Chapter 11 in Delaware bankruptcy court Thursday against criticism from the power producer's senior creditor, arguing that the lender is asking the firm to "roll over and play dead."

  • October 12, 2017

    Bankrupt CST Industries Gets Nod For Bonus, Retention Pay

    Steel tank maker CST Industries Holdings Inc. secured bankruptcy court approval Thursday for $1.3 million or more in incentive or retention bonuses for key employees, over objections from unsecured creditors wary of the cost and skeptical of the justifications.

  • October 12, 2017

    Lufthansa To Invest €1.5B In Bankrupt Air Berlin

    Deutsche Lufthansa AG on Thursday confirmed its chief executive’s comments that the German airline is making a €1.5 billion ($1.8 billion) investment in beleaguered Air Berlin.

Expert Analysis

  • Technology Assisted Review Can Work For Small Cases

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    For as long as e-discovery lawyers have been using technology assisted review, a belief has persisted that it cannot be used economically or effectively in small cases. But TAR can be highly effective in small cases, typically reducing the time and cost of a review project by 60 to 80 percent, say John Tredennick, Thomas Gricks III and Andrew Bye of Catalyst Repository Systems LLC.

  • New Sedona Principles Stress Information Governance

    Saffa Sleet

    The Sedona Conference Working Group's updated Sedona Principles provides a timely reminder that the legal industry needs to be thinking more seriously about the interconnectedness between e-discovery and information governance, says Saffa Sleet of FTI Consulting Inc.

  • Opinion

    For More Value And Diversity In Outside Counsel, Go Small

    Sara Kropf

    Albert Einstein famously said, “The definition of insanity is doing the same thing over and over again, but expecting different results.” That maxim applies to large companies that seek more value and diversity from their outside counsel by expecting big firms to change. There’s a simple solution to this problem, according to attorneys Margaret Cassidy, Sara Kropf and Ellen D. Marcus.

  • Congress Faces 'CHOICE' On Future Of SEC Enforcement

    Thomas Zaccaro

    While most of the Financial CHOICE Act focuses on financial regulations imposed by Dodd-Frank and other federal legislation, portions of the act would have a significant impact on U.S. Securities and Exchange Commission enforcement actions, say attorneys with Paul Hastings LLP.

  • CFPB's 1st 'Abusive' Claim Against A Loan Purchaser

    Kristie Kully

    The Consumer Financial Protection Bureau’s use of its abusiveness authority to attack Aequitas Capital Management’s willingness to acquire loans with high risks of default certainly makes one wonder about the downside risks of the CFPB’s foray into the capital markets, say attorneys with Mayer Brown LLP.

  • Toys R Us Faces Chapter 11 Challenges

    Stephen Selbst

    Toys R Us recently filed for Chapter 11 bankruptcy, citing the impact of e-commerce as a major factor. Other recent retail bankruptcies underscore how difficult it is for retailers to recover from a bankruptcy filing, and creditors must be prepared, says Stephen Selbst of Herrick Feinstein LLP.

  • The Role Legal Finance Can Play In Firm Year-End Collections

    Travis Lenkner

    Payment collection delays have caused law firms to seek new options, one of which is litigation finance. In this context, litigation finance can offer alternative avenues to firms as they approach the end of a fiscal year or partnership distribution dates, says Travis Lenkner of Burford Capital LLC.

  • 'Per-Doc' Pricing Can Improve Document Review

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    Imagine going to a restaurant and ordering your steak medium-rare. The steak arrives burned. You expect the kitchen to bring you another one properly done, right? And you don’t expect to pay for two steaks, do you? Paying a vendor for document review should be no different, says Lisa Prowse, an attorney and vice president at e-discovery firm BIA Inc.

  • Finding The Unicorn In Lender Liability Litigation

    Jerry Blanchard

    Investors frequently talk about trying to find the next unicorn, that small startup company that is going to turn into a billion-dollar valuation. The New Jersey district court's recent decision in PNC Bank v. Star Group offers debtors counsel hope that a unicorn has finally arrived in the lender liability context, says Jerry Blanchard of Bryan Cave LLP.

  • Why A Hanjin Fleet Came To Hong Kong

    Dean Young

    The demise of Korea’s Hanjin Shipping Co. Ltd. was the largest bankruptcy of a container line in history, and recently resulted in the biggest ever court sale of ships in Hong Kong, totaling over $600 million. Hong Kong’s legal system makes it an ideal venue for ship mortgage enforcement, say attorneys with Mayer Brown JSM.