Senior bondholders with secured interests in Puerto Rico sales tax revenues said Friday that the commonwealth and a federally appointed board overseeing the territory's landmark bankruptcy proceedings should be compelled to produce discovery after improperly refusing to provide testimony concerning an alleged failure to protect the investors’ secured collateral.
The Seventh Circuit on Monday again denied a bid by the trustee for Sentinel Management Group to claw back $14.5 million from a creditor, three years after the court rejected the same request, this time finding an “indefinite and internally inconsistent” bankruptcy court order can’t be used to bar a previously allowed transfer.
Bankrupt algae-based food producer TerraVia Holdings Inc. asked a district court judge in Delaware to transfer two lingering intellectual property suits to bankruptcy court late Friday, saying closure is critical to the company’s planned Chapter 11 auction.
The trustee for bankrupt human resources contractor Corporate Resource Services Inc. filed amended adversary claims Friday that insiders had sold CRS-owned businesses for millions of dollars below their market value shortly before its bankruptcy.
The bankruptcy estate for rooftop solar firm Sungevity pushed back Monday against the U.S. trustee’s office’s opposition to its proposed structured dismissal, arguing that without the relief, it is forced to choose between two bad choices, neither of which would yield much of a recovery for creditors.
The U.S. Supreme Court has been asked to review a Sixth Circuit ruling that, in Chapter 11 bankruptcies of real estate properties, lenders who are assigned rents can have exclusive dibs on them, and they are not property of the bankruptcy estate.
An Illinois federal court did not err when it handed down a $272 million judgment against six Chicagoland casino executives who allegedly caused their company to lose its gambling license and fall into bankruptcy, the Seventh Circuit said Friday.
A Delaware bankruptcy judge gave sexual health and wellness retailer Peekay Acquisition Inc. the nod Friday to tap lender cash to launch its Chapter 11 case, which it hopes will culminate in a sale of the business saddled with more than $72.5 million in debt.
Westinghouse Electric Co. LLC, the contractor behind a canceled project to build two new nuclear reactors in South Carolina, and two of its units were hit with class complaints by former employees who said they lost their jobs without notice.
A Delaware bankruptcy judge gave Takata’s Japanese parent, which has petitioned for Chapter 15 recognition, temporary protection Friday from collection efforts and lawsuits in the United States, with a larger fight over whether that shield should become permanent set for September.
Transmar Commodity Group Ltd. CEO Peter G. Johnson, his son and a financial executive at the belly-up New Jersey cocoa distributor denied charges Friday that they engaged in a massive $360 million bank fraud, and Manhattan U.S. District Judge Jed S. Rakoff put the case on track for an April trial.
Convicted insider trader Raj Rajaratnam and two other executives with his defunct hedge fund Galleon Group asked a New York federal judge on Thursday to dismiss a bankruptcy trustee's $135 million fraud case against them, saying the complaint "completely distorts the reality" of the company's wind-down.
A New York bankruptcy judge entered an order Wednesday allowing Breitburn Energy Partners LP to enter into swap agreements with its debtor-in-possession lenders and related entities to hedge potential losses from fluctuations in oil and gas prices.
The U.S. government can bypass the automatic stay in Rupari Food Services Inc.’s ongoing bankruptcy and have a $2.8 million judgment entered against the debtor for claims it cheated on customs taxes years ago, the U.S. Court of International Trade ruled Thursday.
The liquidating trustee for the parent of onetime music megadistributor Columbia House filed legal actions Wednesday seeking $19 million in clawbacks and suing four former executives for breach of fiduciary duty over an improvident loan.
The U.S. Supreme Court said Thursday that it erred in June when it took up a North Carolina bankruptcy dispute over whether debt used to finance the acquisition of a golf and residential real estate development was correctly recharacterized as equity after the original loan was sold to settle a foreclosure.
Takata’s corporate parent in Japan, already under a form of bankruptcy protection in its home country, sought Chapter 15 recognition Thursday in Delaware, opening another front in the company’s quest to halt the firestorm of litigation over defective Takata air bag inflators linked to at least a dozen deaths.
Sexual health and wellness retailer Peekay Acquisition Inc. opened a Chapter 11 sale effort in Delaware early Thursday, reporting $72.6 million in debt and launching its bankruptcy with plans for a stalking-horse-led marketing of the 46-store business.
A suit removed to federal court on Tuesday reveals that law firm McGarry & McGarry LLC is taking another stab at antitrust conspiracy claims regarding fees charged to Chapter 7 trustees, even after the Seventh Circuit and federal courts have recently dismissed similar claims from the firm.
The federal judge overseeing Puerto Rico’s landmark insolvency proceedings nudged forward a consensual plan to settle a key creditor dispute over liens on the territory’s sales tax revenues before the end of the year, approving the appointment of agents to represent competing bondholders at a hearing Wednesday.
Complex auctions under the Bankruptcy Code are still often conducted in the traditional manner — live and in person in law offices and courtrooms. An online auction that is designed specifically to meet the needs of all stakeholders is a better approach, say Brad Miller and Margarita Patria of Charles River Associates.
In the final article in this series on proposed innovations to the American jury trial, Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project sum up the improvements they believe the U.S. jury system desperately needs.
The Third Circuit recently affirmed that downstream purchasers took oil purchased from a bankrupt intermediary free and clear of the oil producers’ liens. The opinion is an important reminder that courts will look to the state lien laws and Uniform Commercial Code of a midstream company’s home state to determine whether the producers are secured, say attorneys with King & Spalding LLP.
While no particular form is required to establish a durable alternative fee arrangement, there are terms that should, for the benefit of both client and outside attorney, be expressly set forth in the agreement itself, but are often overlooked, say attorneys with WilmerHale.
In a bankruptcy, the trustee, shareholders, employees and other third parties frequently look to hold the directors and officers responsible through breach of fiduciary duty claims. Although defending these claims can be stressful, there are protections in place for defendants and strategies that can reduce their exposure, say Joseph Swanson and Donald Kirk of Carlton Fields Jorden Burt PA.
As cybercriminals continue to look for easy targets, the court system will surely enter their crosshairs. If judges and court personnel do not maintain proper data security and cyber hygiene, confidential litigant information can fall into the hands of a wide variety of bad actors, say Daniel Garrie of JAMS, David Cass of IBM Cloud, Joey Johnson of Premise Health Inc. and Richard Rushing of Motorola Mobility LLC.
Although the Commercial Instruments and Maritime Lien Act was enacted to clarify confusion regarding the rights and remedies of participants in the shipping industry, recent global insolvencies of entities such as O.W. Bunker and Hanjin have forced courts to reconsider the text, history and purpose of a seemingly straightforward federal statute, say Brian Maloney and Laura Miller of Seward & Kissel LLP.
When you look at your client through the "survival circuit" lens, what first appeared as an emotional mess is now valuable information about what is important to them, what needs have to be met to settle the case, or what further clarity your client requires before moving forward, say dispute resolution experts Selina Shultz and Robert Creo.
The Delaware bankruptcy court's recent decision in the case of Fisker Automotive significantly expanded the ability of debtors in possession and trustees to pursue fraudulent transfer and unjust enrichment claims for transactions occurring outside the U.S., say attorneys with K&L Gates LLP.
When a law firm appoints a chief privacy officer, not only does the firm benefit from the crucial operational impact of a well-managed privacy program, but clients see how seriously you take your duties of confidentiality and competence, says Rita Heimes, research director at the International Association of Privacy Professionals.