Bankruptcy

  • April 20, 2017

    Tony Roma's Says Licensing Deal Not Part Of Rupari Sale

    Steakhouse chain Tony Roma's objected Thursday in Delaware to proposed bid procedures that would govern a bankruptcy auction for the assets of meat distributor Rupari Food Services Inc., saying a licensing agreement between the two companies was no longer valid and couldn't be included in a stalking horse package.

  • April 20, 2017

    ER Operator Adeptus Files Ch. 11, Seeks PE Takeover

    Emergency room company Adeptus Health Inc. and 139 affiliates, mostly individual medical centers, filed for Chapter 11 bankruptcy in Texas on Wednesday with $454 million in debt and a plan to be taken over by private equity firm Deerfield Management Co.

  • April 20, 2017

    RadioShack Defends Plan For $1.4M In Executive Bonuses

    Bankrupt electronics retailer RadioShack on Thursday defended its plan to pay top-level employees incentive bonuses, saying the workers eligible for the payments are performing work above and beyond their normal responsibilities.

  • April 20, 2017

    Maxus Seeks OK On $15M Sale Of Gulf Oil Field Interests

    Bankrupt oil and gas exploration firm Maxus Energy Corp. asked a Delaware court late Wednesday to approve a sale of its partial interest in a Gulf of Mexico offshore oil field as part of its effort to liquidate its assets through Chapter 11 transactions.

  • April 20, 2017

    'Housewives' Star Slams Atty's Bid To Toss Malpractice Suit

    A onetime incarcerated star of “The Real Housewives of New Jersey” and a bankruptcy trustee on Wednesday slammed her former attorney's bid to dismiss their malpractice action against him in New Jersey state court, saying the motion is part of his “litigation extravaganza” intended to delay the matter.

  • April 20, 2017

    High Court Hat Trick: Jenner Atty Appears 3 Times In A Month

    Jenner & Block LLP partner Adam Unikowsky has argued a remarkable three times in front of the U.S. Supreme Court in the past month, including an appearance during Justice Neil Gorsuch's second day on the job, and Unikowsky said anticipating left field questions was key in his marathon stretch of high court arguments.

  • April 20, 2017

    2nd Circ. Tosses Tronox Tort Plaintiffs' No-Suit Order Appeal

    The Second Circuit on Thursday ruled it has no jurisdiction to decide if 4,300 people are barred by an anti-suit injunction — part of the $5 billion Tronox bankruptcy settlement — from suing former Tronox parent Kerr-McGee Corp. for injuries they blame on toxic emissions from a Pennsylvania industrial plant.

  • April 19, 2017

    Hulk Hogan, Billionaire Slam Gawker For Info Hunt

    The three victorious parties in the lawsuit that brought down Gawker Media LLC ­­— wrestler Hulk Hogan, his attorneys at Harder Mirell & Abrams LLP and billionaire Peter Thiel — all pushed back in New York bankruptcy court Tuesday against Gawker's request for discovery, calling it a last-gasp effort to lash out at Thiel for financing the case.

  • April 19, 2017

    Galleon Founder Took Millions Amid Firm Turmoil, Suit Says

    Galleon Group LLC founder Raj Rajaratnam paid himself around $131 million from one of his company's units while he faced the insider trading charges for which he's now serving prison time, according to an adversary proceeding in a liquidation suit in New York bankruptcy court on Tuesday.

  • April 19, 2017

    GTAT Trustee Sues Ex-CEO Over Ruinous Apple Deal

    The litigation trustee for the former GT Advanced Technologies Inc. sued two former leaders of the materials supplier on Wednesday in connection with a massive screen-making deal with Apple that allegedly bankrupted GTAT.

  • April 19, 2017

    Avaya Argues For Continued Stay Of BlackBerry's Patent Suit

    Bankrupt telecom giant Avaya Inc. told a New York bankruptcy judge on Tuesday that BlackBerry Corp.'s bid to lift the debtor's Chapter 11 litigation shield for allegedly continuing to sell infringing products is without good cause and, if granted, could thwart the company's restructuring.

  • April 19, 2017

    FirstBank Takes 2nd Shot In 2nd Circ. In $62M Lehman Claim

    FirstBank Puerto Rico returned to the Second Circuit on Wednesday in its attempt to recover $62 million in securities, or their market value, from the estate of Lehman Brothers Inc., saying it was covered as a customer under the Securities Investor Protection Act, and that LBI, as a collateral custodian, remained liable.

  • April 19, 2017

    SunEdison Yieldco Deal Allocation Spat Heads To Mediation

    SunEdison Inc.’s contentious bankruptcy appeared to have hit a tipping point Tuesday, as the New York bankruptcy judge overseeing the case ordered all parties involved to enter mediation talks, and unsecured creditors blasted the company’s new $640 million loan proposal and threatened to convert the case to Chapter 7.

  • April 19, 2017

    Suniva Gets DIP Cash To Fund Solar Cell Trade Petition

    Solar cell maker Suniva Inc. received court approval Wednesday in Delaware to draw $1.4 million in post-petition cash that will help fund its pursuit of a U.S. International Trade Commission recommendation aimed at protecting American solar cell firms from a flood of cheaper foreign imports.

  • April 19, 2017

    SportsDirect Acquires Eastern Outfitters In Ch. 11 Sale

    Eastern Outfitters LLC secured a Delaware bankruptcy judge’s approval Wednesday to hand off its business to SportsDirect.com Retail Ltd. for $105 million in debt take-backs and other consideration, in a deal that sends Eastern’s stores through their second Chapter 11 sale in less than a year.

  • April 19, 2017

    Aerospace Holdings To Pivot To Private Bankruptcy Sale

    Bankrupt aerospace component manufacturer Aerospace Holdings Inc. told a Delaware federal judge Wednesday it intends to abandon a Chapter 11 auction of its assets in favor of a private sale to its post-petition lender and competitor Harlow Aerostructures LLC.

  • April 19, 2017

    Utilities Doubt Westinghouse's Ability To Pay Bills

    Eight utility companies on Tuesday said that newly bankrupt Westinghouse Electric Co. LLC — which just tapped $350 million in financing — will be too broke to pay its power bills within two months, and asked a New York bankruptcy court to quadruple planned deposits.

  • April 19, 2017

    Fla. Sheriff Can't Buy Ex-Worker's Suit, Bankruptcy Court Says

    A Florida county sheriff cannot escape a former employee’s defamation and false arrest lawsuit by buying her rights to the litigation in Florida bankruptcy court, it has ruled, despite his more than doubling her offer.

  • April 18, 2017

    Solar Panel Maker Suniva Opens Ch. 11 On $100M-Plus Debt

    Suniva Inc., an Atlanta-based company that claims to be the nation’s leading solar manufacturer, filed for Chapter 11 bankruptcy protection in Delaware on Monday, according to a petition that lists more than $100 million in liabilities and no more than $50 million in assets.

  • April 18, 2017

    Violin Memory Gets Ch. 11 Plan OK For Sale To Soros Unit

    A Delaware bankruptcy judge agreed Tuesday to confirm Violin Memory Inc.’s Chapter 11 plan that hands control of the company over to a unit of major creditor Soros Fund Management LLC, which won an auction for the data management company’s assets in January.

Expert Analysis

  • Lateral Partner Hiring: Time To Look In The Mirror

    Howard Flack

    The surveys that report lateral partner hiring as more or less a 50-50 proposition keep being published, and yet the lateral partner market is as robust as ever. So, what are firms looking at to measure their success and justify the level of investment they continue to make in the lateral market? asks Howard Flack of Volta Talent Strategies LLC.

  • District Court Sabine Ruling: Bad News For Midstream Cos.

    Mark D. Sherrill

    The U.S. District Court for the Southern District of New York has affirmed that Sabine Oil & Gas Corporation can reject some gathering contracts with midstream energy companies, for lack of valid covenants running with the land. The ruling is another unfavorable result for midstream firms dealing with distressed oil and gas producers, say Mark Sherrill and Stephany Olsen LeGrand of Eversheds Sutherland (US) LLP.

  • A Big Haircut For Indenture Trustee Counsel Fees

    Karol K. Denniston

    A Delaware bankruptcy judge's recent decision in Nortel Network’s Chapter 11 case has several important takeaways for indenture trustees and their legal counsel that go well beyond the fee reductions an indenture trustee’s two law firms received, says Karol Denniston of Squire Patton Boggs LLP.

  • A Law Firm’s Guide To Social Media

    Julie Bagdikian

    Bear in mind that the internet seldom forgets and never forgives, and you are just one screen grab from a meme. A law firm's core messages and unique selling points must be clearly determined before embarking on a social media strategy, says Julie Bagdikian of The Pollack PR Marketing Group.

  • Defining 'Securities Claims' In D&O Policies

    Kevin LaCroix

    In a directors and officers insurance dispute spawned by Verizon’s spinoff of its electronic directories business, a Delaware court recently interpreted the definition of “securities claim” to include claims asserted under the common law. While Verizon was able to secure coverage in this case, it is in the best interests of policyholders to include an express reference to common-law claims in such definitions, says Kevin LaCroix of RT ProExec.

  • Why Shippers See Value In Cayman Special Purpose Vehicles

    Andy Randall IMG_0047.jpg

    The Hanjin Shipping bankruptcy, and big losses at a major shipping lender, point to a shipping market where traditional bank finance is increasingly hard to come by. Cayman Islands orphan special purpose vehicles offer an alternative for enforcement as well as for new leasing deals. Andy Randall and Edward Rhind of Walkers Global explain how these structures can add efficiency and value.

  • Hitting The Brakes On Structured Dismissals

    Ferve Ozturk.jpg

    The U.S. Supreme Court's decision in Czyzewski v. Jevic that a bankruptcy court lacks the power to approve a priority-violating structured dismissal may give unsecured priority wage holders, and particularly judgment creditors, a seat at the negotiating table together with secured and unsecured creditors committees, says Ferve Ozturk of BakerHostetler.

  • Are Your In-House Lawyers Happy?

    Aric Press

    What is the mood of the nation’s in-house lawyers? Aric Press — a partner at Bernero & Press LLC and former editor-in-chief of The American Lawyer — shares the findings of a recent survey of more than 800 in-house counsel.

  • Why Tribes Should Be Careful With Bankruptcy Practices

    Lynne B. Xerras

    In Casino Caribbean v. Money Centers last month, the U.S. Bankruptcy Court for the District of Delaware ruled that tribal sovereign immunity is not abrogated by Section 106 of the Bankruptcy Code. This decision makes it clear that many bankruptcy courts do not consider Native American tribes to be "governmental units," say attorneys with Holland & Knight LLP.

  • Google, NASA, Planes And A Stronger Legal Team

    Nicholas Cheolas

    Why did minor mechanical issues bring down two airplanes, while a catastrophic engine explosion did not bring down a third? The answers lie, in part, in research conducted by NASA in the wake of those crashes and, more recently, by Google. And those answers can help organizations build better teams to meet today’s legal industry challenges, says Nicholas Cheolas of Zelle LLP.