Bankruptcy

  • June 16, 2017

    Travelers Says Charney Defamation Suit Costs Not Covered

    Travelers Indemnity Co. on Thursday asked a New York federal court to declare it does not have to pay the costs hedge fund Standard General LP incurred defending a defamation lawsuit by American Apparel’s ousted CEO Dov Charney, saying the suit was over an employment issue and not advertising.

  • June 15, 2017

    Rep Slams Puerto Rico Fiscal Board For Delay On Utility Deal

    The head of the U.S. House Committee on Natural Resources sent a letter Thursday dressing down the board overseeing Puerto Rico's troubled finances for delaying approval of a $9 billion restructuring deal between the territory's power utility and its bondholders that Congress has already blessed.

  • June 15, 2017

    Judge Won't Toss Suit Against GE Capital Over $3.6B Scheme

    A Florida bankruptcy judge on Thursday denied General Electric Capital Corp.'s bid to escape a suit alleging it participated in the $3.6 billion Ponzi scheme orchestrated by Tom Petters, paving the way for the claims to go to a jury.

  • June 15, 2017

    Lily Robotics Sells IP Assets For $750K In Ch. 11 Deal

    Bankrupt flying-camera drone company Lily Robotics Inc. received court approval Thursday in Delaware for a pair of sales of its intellectual property assets, including patents for its undelivered camera platform and brand trademarks, that will net the company $750,000.

  • June 15, 2017

    Del. Suit Claims Coal Co. Investors Diverted Bid Rights

    Investors in a firm that loaned money to a now-bankrupt Kentucky coal company sued the firm's managers and others in Delaware's Chancery Court on Wednesday, claiming the firm's managers secretly locked up rights to a coal tract during a bankruptcy sale.

  • June 15, 2017

    $20.5M Bid Tops Molycorp Auction, Beats Stalking Horse

    A bankruptcy auction battle produced a $20.5 million tentative winning cash bid for Molycorp Minerals LLC's idled California rare earth mine, company officials reported Thursday, in a disputed outcome that ended far above the company's initial $1.2 million stalking horse offer.

  • June 15, 2017

    Oracle Objects To SunEdison's Service Transfer Plan

    Oracle America Inc. objected Thursday to a proposed transition services agreement between bankrupt SunEdison Inc. and its yieldcos, saying the deal may impact Oracle’s intellectual property.

  • June 15, 2017

    Ex-Client Sues Blasingame Burch Over Pelvic Mesh Deal

    A woman who took a $300,000 settlement over alleged injuries from a pelvic mesh product is now suing Blasingame Burch Garrard & Ashley PC, claiming she was coerced and misled into taking the deal, in part due to the firm's claims about how the settlement would affect a personal bankruptcy.

  • June 15, 2017

    Canada's Thornton Grout Adds Ex-Ontario Bankruptcy Judge

    A former Canada court judge who oversaw Nortel Networks Inc.’s bankruptcy proceedings has joined both Thornton Grout Finnigan LLP as counsel to the firm and Toronto’s Arbitration Place as a member arbitrator, according to an announcement from the two groups.

  • June 15, 2017

    Fisker Trustee Can Go After $33M Paid To BMW For Engines

    The Delaware bankruptcy court has kept a $32.6 million claim by the trustee of bankrupt Fisker Automotive against BMW alive, saying the trustee could continue to pursue BMW for unjust enrichment over an allegedly unfulfilled engine order despite the failure of most if its claims.

  • June 15, 2017

    Creditor, Retiree Committees Appointed In Puerto Rico Case

    The U.S. bankruptcy watchdog on Thursday appointed two committees to represent retirees and unsecured creditors in Puerto Rico’s ongoing restructuring case, while declining to create a committee for unsecured creditors of the Puerto Rico Sales Tax Financing Corp.

  • June 15, 2017

    Outer Harbor Creditors Appeal Lien Investigation Shutdown

    The unsecured creditors of defunct Outer Harbor LLC on Wednesday appealed a Delaware bankruptcy court’s decision denying them an opportunity to challenge the cargo handling operation’s Chapter 7 liquidation plan over $25 million in “suspicious” prepetition payments by the debtor.

  • June 14, 2017

    Justice Ginsburg On Oral Argument And ‘Imperious’ Attorneys

    Justice Ruth Bader Ginsburg discusses the value of oral arguments, advice for advocates, and the one thing lawyers do that irks her, in the second of two articles based on an exclusive interview.

  • June 14, 2017

    5 Federal Judges To Mediate Puerto Rico Bankruptcy Fights

    A team of five sitting federal judges across several jurisdictions was appointed on Wednesday to help mediate issues arising from Puerto Rico's massive debt restructuring proceedings, with U.S. Bankruptcy Judge Barbara Houser of Texas' Northern District to serve as leader of the group.

  • June 14, 2017

    Lender To Bankrupt Ticket Reseller Seeks Lift Of Ch. 11 Stay

    A private equity firm owed $44 million by bankrupt ticket reseller and alleged Ponzi scheme front National Events Holdings LLC asked a New York bankruptcy court Wednesday to let the firm liquidate the debtor's $5.8 million in assets, and took aim at two other creditors.

  • June 14, 2017

    Implant Sciences Gets Tentative OK On Ch. 11 Disclosures

    A Delaware bankruptcy judge agreed Wednesday to OK the disclosure statement for the former Implant Sciences’ Chapter 11 plan, but left the door open for additional rulings, including on competing add-ons to the document from the bomb detector maker and its shareholders that turned into a dispute that morning.

  • June 14, 2017

    NRG Energy Unit Hits Ch. 11 With Plan To Cut $1.8B Debt

    GenOn Energy Inc. initiated Chapter 11 bankruptcy proceedings Wednesday in Texas, with a prearranged plan to cut nearly $1.8 billion in debt through a noteholder equity swap and settle potential fraudulent transfer claims against parent company NRG Energy Inc. for $261 million.

  • June 14, 2017

    'Soup Nazi' Distributor Hits Ch. 11 After Tax Evasion Case

    The New York company that distributes soup products licensed from the chef that inspired the Soup Nazi character on the sitcom "Seinfeld" trickled into Delaware bankruptcy court late Tuesday, weeks after the company’s chief financial officer was hit with 20 charges of federal tax evasion.

  • June 14, 2017

    GulfMark Retail Noteholders Sue Over Rights Offering

    Two GulfMark Offshore retail noteholders Wednesday lodged an objection in Delaware bankruptcy court to the company’s proposed rights offering and Chapter 11 disclosures, saying they are unfair to them and other retail noteholders.

  • June 14, 2017

    Real Estate Rumors: Opal, Jeff Shapack, Broadway Tech

    Opal Holdings is reportedly buying a bankrupt Manhattan site where the firm plans to build retail and condos, developer Jeff Shapack is said to be putting a Chicago property that includes a Shake Shack on the market for $14.25 million, and Broadway Technology has reportedly leased 25,000 square feet in New York from Chinese conglomerate Fosun.

Expert Analysis

  • How Client Feedback Programs Benefit Law Firms And Clients

    Elizabeth Duffy

    Despite an increase in engagement with client feedback programs over the last 15 years, law firms — and their clients — have a way to go before realizing the maximum benefits such programs can deliver, says Elizabeth Duffy of Acritas US Inc.

  • The Stakes Are High In FTI Consulting V. Merit Management

    Brian Koosed

    Litigation over the Section 546(e) safe harbor has been on the rise in the last several years and the defenses against these suits have been furious. This makes the U.S. Supreme Court’s decision to review FTI Consulting v. Merit Management even more important, say Brian Koosed and Robert Honeywell of K&L Gates LLP.

  • Puerto Rico Bankruptcy Puts Pensions At Risk

    John Hansen

    As in many municipal bankruptcies, the Puerto Rico case is likely to devolve into a battle between bondholders on the one hand and the holders of pension obligations on the other, says John Hansen of John Hansen Law.

  • Solving The Legal Industry's Data Protection Breakdown

    Jeff Ton

    Most law firms today aren't using common security and data protection measures that other industries employ to protect sensitive data. Options like continuous data replication and backups have various pros and cons, but most importantly, law practices must understand the need for a two-tiered approach to data protection, says Jeff Ton of Bluelock LLC.

  • 5 Things To Know About Justice Gorsuch’s First 30 Days

    Charles Webber

    Justice Neil Gorsuch joined the U.S. Supreme Court a little more than 30 days ago, on April 7, 2017. And while it is too early for him to have written any opinions, Gorsuch participated in the final 13 oral arguments of the 2016 term. Charles Webber of Faegre Baker Daniels LLP offers five takeaways from his first month on the job.

  • 5 Mistakes That End Law Firms

    Randy Evans

    Although the end often comes quickly, law firms do not fail overnight. Randy Evans of Dentons and Elizabeth Whitney of Swiss Re Corporate Solutions review five mistakes that expedite law firm failures.

  • A Wake-Up Call For Banks To Comply With Bankruptcy Rules

    Jerome Walker

    The Office of the Comptroller of the Currency’s recent action against U.S. Bank shows that a bank may commit a safety and soundness violation by failing to comply with the bankruptcy laws and rules. The challenge for banks is to determine what changes need to be made to their internal controls, says Jerome Walker of Duane Morris LLP.

  • Shrewsbury And Its Impact On Delaware Foreclosure Actions

    David White

    The Delaware Supreme Court's recent decision in J.M. Shrewsbury v. Bank of New York Mellon affects lenders’ pursuit of foreclosure, but it likely affects counsel for lenders far more than the lenders themselves, say David White and Matthew Rifino of McCarter & English LLP.

  • Takeaways From Cumulus Media Refinancing Ruling

    Mark Chass

    Investors should anticipate that creditors may rely on two aspects of the recent decision in Cumulus Media v. JPMorgan Chase to challenge exchange offers, particularly those in which issuers seek to refinance unsecured debt with secured debt, says Mark Chass of Kramer Levin Naftalis & Frankel LLP.

  • In Tronox, 2nd Circ. Sends Clear Message About Injunctions

    Jack Haake

    There is value in the protections afforded by an injunction, be it through a settlement or a bankruptcy discharge. The Second Circuit’s recent decision in Tronox preserves an injunction’s value in two ways, says Jack Haake of Foley & Lardner LLP.