Bankruptcy

  • 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.

  • June 23, 2017

    Bankrupt BCBG Seeks Go-Ahead For $131M Asset Sale

    BCBG Max Azria Group LLC asked a New York bankruptcy court Friday to approve a $131 million sale of intellectual property, stores and other assets, with a hearing for the clothing retailer's Chapter 11 plan slated for next month.

  • June 23, 2017

    Tidewater Confirmation Hearing To Be Delayed 3 Weeks

    A request by a recently formed committee of equity security holders to delay the confirmation hearing in the Chapter 11 case of offshore oil services firm Tidewater Inc. gained court approval Friday in Delaware, allowing the committee nearly three weeks of extra time to do its work.

  • June 23, 2017

    Texas Court Nixes $31M Suit Against Nursing Home Execs

    A Texas state appellate court has ruled that a lower court doesn’t have jurisdiction to handle a suit brought by a nursing home patient's daughter in which she tried to force the nursing home’s executives to pay a $31 million judgment she obtained against the now-bankrupt company that operated the facility.

  • June 23, 2017

    Texas Justices Say Noble Can't Ditch $63M Cleanup Indemnity

    The Texas Supreme Court on Friday held Noble Energy Inc. must indemnify ConocoPhillips Co. for $63 million in environmental cleanup costs under an indemnity agreement that wasn’t disclosed when Noble’s predecessor bought oil and gas assets during a Chapter 11 bankruptcy.

  • June 22, 2017

    Defunct Scrap Metal Co. Committed No Fraud, Court Affirms

    An Illinois federal judge on Wednesday largely affirmed a bankruptcy court's ruling that officers of defunct Chicago-based metal recycling company Keywell LLC broke no laws on the path to declaring bankruptcy, but did reverse the lower court’s ruling forcing Keywell to equitably subordinate loans made to it when the company was on the brink of going under.

  • June 22, 2017

    Puda Coal Investor Wants Receiver After $228M Judgment

    A shareholder in Puda Coal Inc. asked the Delaware Chancery Court on Thursday to appoint a receiver for the defunct China-based company that was recently hit with a $228 million judgment in New York federal court, arguing the company has a history of disregarding court orders.

  • June 22, 2017

    Oft-Punished Ill. Atty Can't Dodge Sanctions In Bankruptcy

    A Chicago attorney who racked up more than $180,000 in sanctions for frivolous filings and appeals in a protracted pursuit of a daycare chain can’t discharge his sanction debt in bankruptcy court, an Illinois federal judge ruled Thursday.

  • June 22, 2017

    Implant Sciences, Watchdog Protest Bid For Consultant

    Both the Implant Sciences bankruptcy estate and the U.S. Trustee’s Office balked Thursday at the official equity committee’s bid to hire a consultant as its own solicitation agent for the bomb detection firm’s Chapter 11 plan, a measure the debtor and watchdog argue is unreasonable.

  • June 22, 2017

    Insurer Ordered To Pay MF Global Almost $1M In Attys' Fees

    A New York bankruptcy judge found Thursday that former MF Global excess insurer Allied World Assurance Co. Ltd. owes the defunct company $926,000 in attorneys' fees over Allied’s failure to get court permission before filing an action to arbitrate a contract dispute in Bermuda.

  • June 22, 2017

    DOL Flags Optima Ch. 11 For ERISA Liability Releases

    Optima Specialty Steel Inc.’s Chapter 11 plan drew an objection Thursday from the U.S. Department of Labor, based on agency findings that some terms of the plan violate or could violate the Employee Retirement Income Security Act.

  • June 22, 2017

    Tidewater Balks At Shareholder Bid To Delay Ch. 11 Consent

    Offshore marine services company Tidewater Inc. on Wednesday asked the Delaware bankruptcy court to deny a newly formed official equity holders committee’s request to adjourn a June 28 plan confirmation hearing, saying it's an unnecessary delay that could spook its foreign creditors.

  • June 22, 2017

    Sears Canada To Close 59 Stores In Monitored Restructuring

    Sears Canada Inc. announced Thursday that it has obtained protections under Canadian law that will allow it to restructure its ailing business, with the retailer gaining relief from creditors but also saying it will close 59 stores and lay off 2,900 workers.

  • June 22, 2017

    Molycorp Trustee Looks For Approval Of $20.5M Buyout Bid

    Pointing to an auction result 17 times higher than the minimum cash offer, a trustee for bankrupt Molycorp Minerals LLC is urging a Delaware judge to approve the rare earth mine site’s $20.5 million sale to an investor group and set aside remaining objections.

  • June 22, 2017

    Puerto Rico Court Shouldn't Hear Tax Row, Stakeholders Say

    The board overseeing Puerto Rico’s financial restructuring Wednesday united with bondholders and retirees to oppose moving a key dispute over sales tax revenue from federal court to the territory’s Supreme Court.

  • June 22, 2017

    MIG To Pursue Wind-Down After Court OKs $72M Asset Sale

    Bankrupt telecommunications holding company MIG LLC on Thursday received court approval in Delaware for a private asset sale, with the debtor set to receive $72 million in cash in exchange for its assets and the equity of related debtor ITC Cellular LLC.

  • June 22, 2017

    Acting Comptroller Blasts CFPB At Senate Hearing

    The acting head of the Office of the Comptroller of the Currency said on Thursday that the Consumer Financial Protection Bureau was not providing sufficient oversight of the smaller banks that it regulates.

  • June 21, 2017

    Justice Sotomayor On The Power Of Dissent

    Justice Sonia Sotomayor discusses her views on writing dissents and the change she hopes they inspire in the law, in the second of two articles based on an exclusive interview with the 111th justice.

  • June 21, 2017

    Azeri Bank's Restructuring Under Fire In Ch. 15 Hearing

    Azerbaijan’s largest commercial bank was left in a holding pattern Wednesday after a New York bankruptcy judge said he needs more time to mull a noteholder group’s complaint against granting the lender U.S. legal protections under Chapter 15 while it restructures $3.3 billion worth of debt in its home country.

  • June 21, 2017

    Whistleblowers, MDL Plaintiffs Object To $32M SunEd Deal

    Two former SunEdison Inc. officers with pending whistleblower suits against the bankrupt solar energy giant and the lead plaintiffs in a Securities Act multidistrict litigation have asked the New York bankruptcy court overseeing the case for assurances that their suits won’t be affected by a recent $32 million settlement with unsecured creditors.

Expert Analysis

  • 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.

  • Weekly Column

    Innovating For Wise Juries: Setting Trial Time Limits

    Stephen Susman

    This is the second in a series of articles discussing ideas proposed by the NYU School of Law Civil Jury Project to resuscitate the American jury trial. In this article, Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman argue for setting early and strict time limits in civil jury trials.

  • Opinion

    Big Business Lobby Tries To Hobble Litigation Finance, Again

    Allison Chock

    In its most recent petition advocating mandatory disclosure of litigation finance, the U.S. Chamber of Commerce simply rehashes the same arguments from its previous failed efforts to convince the Committee on Rules of Practice and Procedure of the dire implications of undisclosed funding relationships, say members of IMF Bentham Ltd.

  • A Slice Of MFN With That Incremental Loan

    Daniel Winick

    With ever expanding bargaining leverage, borrowers are negotiating creative ways to minimize "most-favored nation" provisions and related incremental loan protections. Clifford Chance LLP attorneys Daniel Winick and Andrew Young discuss some of the key MFN exceptions borrowers have been pursuing of late.

  • New Wave Of Lehman Litigation Appears To Be Imminent

    Philip Stein

    Thousands of mortgage lenders across the country either recently received, or will soon be receiving, from Lehman Brothers Holdings Inc. a document that may seem innocuous but likely presages a future lawsuit by LBHI against the recipient, says Philip Stein of Bilzin Sumberg Baena Price & Axelrod LLP.

  • When Is A Working Capital Agreement A Loan? It Depends

    Benjamin Jackson

    Drafters of working capital agreements should be aware that there is now at least one court ruling holding that if the terms of a working capital agreement resemble those of a loan agreement, then it will likely be treated as such regardless of what the agreement calls itself, say Benjamin Jackson and Muhammad Faridi of Patterson Belknap Webb & Tyler LLP.

  • How Bankruptcy Affects Payment Stream Assignments

    Stephen Proctor

    The Sixth Circuit recently decided the fate of a stream of rental payments from the bankrupt owner of a residential complex in the case of Town Center Flats. Although not referenced in Town Center, it is possible that the 1993 discredited Octagon Gas case influenced the result, says Stephen Proctor of Masuda Funai Eifert & Mitchell Ltd.

  • Series

    The Return Of Attorney-Conducted Voir Dire

    Stephen Susman

    If we truly believe in providing litigants with a jury of one’s peers, we must adopt strategies to ensure that parties and their representatives have a say in selecting their jury. When only judges participate, the result is a less representative and less fair cross section of the community, say Stephen Susman, Richard Jolly and Roy Futterman of NYU School of Law's Civil Jury Project.

  • Monthly Column

    Gray Matters: Identities Are Us

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    Lawyers faced with clients who can’t or won’t listen to their advice must consider that the core of this risky decision may be a person's inability or refusal to relinquish a prime identity in times of uncertainty, say dispute resolution experts Robert Creo and Selina Shultz.