Bankruptcy

  • October 3, 2017

    Revised SunEdison D&O Allocation Pact Gets Judge's OK

    A New York bankruptcy judge Tuesday approved an insurance benefit allocation agreement for SunEdison Inc. and its affiliated solar yieldcos after receiving revisions addressing the concerns of two former executives afraid of losing policy protections.

  • October 3, 2017

    Vitamin World Landlords Seek Protection In Final DIP Order

    A group of landlords that lease retail space for stores operated by bankrupt Vitamin World Inc. filed an objection Tuesday in Delaware seeking to ensure their rights are protected when the debtor files its final post-petition financing order later this week.

  • October 3, 2017

    Takata Special Master Reports Delays In Claims Plan

    The special master overseeing the handling of a nearly $1 billion restitution fund in the criminal lawsuit over Takata’s potentially deadly air bag inflators made his first report to a Michigan federal court on Tuesday, saying that he’s hit several delays carrying out his duties so far.

  • October 3, 2017

    Diamond Firm's Ch. 11 May Put Del., Belgium Court At Odds

    Prominent diamond cutter and wholesaler Exelco NV moved Tuesday to avert a dispute between courts in Delaware and Belgium over the company’s restructuring effort, asking a Delaware bankruptcy judge to consider additional steps to block continued creditor liquidation attempts in Antwerp.

  • October 3, 2017

    CST Settlement Eases Approval Of Ch. 11 Bid Procedures

    Attorneys for bankrupt storage tank maker CST Industries Holdings Inc. told a Delaware judge Tuesday that it had reached a settlement resolving most of the outstanding objections to its proposed bidding and auction plan.

  • October 3, 2017

    GM Fights To Be In Bankruptcy Trial Over Revoked Defect Deal

    General Motors Co. argued Tuesday it should get to participate in an upcoming trial over whether a vehicle defect settlement with car purchasers and accident victims that was never signed by a GM bankruptcy trust is enforceable, as the deal could require the manufacturer to hand over $1 billion in company equity.

  • October 3, 2017

    Appvion Gets OK To Tap $65M Of Its Ch. 11 DIP Loan

    Specialty papermaker Appvion Inc. got Delaware bankruptcy court permission Tuesday to tap $65 million of its post-petition financing from first-lien lenders, kicking off a Chapter 11 case in which the company hopes to restructure more than $700 million in debt and reorganize as a going concern.

  • October 3, 2017

    'Idol' Lenders Fight Fox's Bid To Move Contract Row To NY

    An attorney for lenders of bankrupt Core Media, the producer of “American Idol,” urged a California judge Tuesday to keep hearing their suit that accuses Apollo Global Management and 21st Century Fox of interfering with their loan agreements with the company, after he tentatively ruled to send the case back to New York.

  • October 3, 2017

    Kasowitz Benson Can't Exit Ampal Ch. 7 Case, Judge Rules

    A New York bankruptcy judge on Tuesday found the CEO of energy investment holding company Ampal-American Israel Corp. in contempt for failing to respond to discovery and denied his attorneys permission to withdraw until the issue is settled.

  • October 3, 2017

    CRS Trustee Files $7M Clawback Suit Against Wells Fargo

    The trustee for bankrupt human resources contractor Corporate Resource Services Inc. and co-debtors filed a $7 million adversary suit Monday against Wells Fargo Bank NA for “forcing them into liquidation” and charging millions of dollars in unfair fees.

  • October 3, 2017

    Global Auto Leather Firm Files Ch. 11 With Deal In Tow

    Global automotive leather upholstery supplier GST AutoLeather Inc. and five affiliates sought Chapter 11 protection in Delaware early Tuesday, listing $196 million in liabilities and reporting plans for a creditor-supported sale of the 84-year-old business.

  • October 3, 2017

    Toshiba To Pay $522M For Full Ownership Of Westinghouse

    Toshiba on Tuesday said it will pay 59 billion yen ($522 million) to buy out a minority shareholder and take full ownership of its bankrupt U.S. nuclear arm Westinghouse, a deal that comes as the struggling Japanese technology company is selling its memory business to a private equity-led group.

  • October 2, 2017

    Separate Restructuring Plans Emerge In China Fishery Ch. 11

    Two distinct plans to reorganize were filed Friday in China Fishery Group Ltd.’s Chapter 11 case, where its indebted groups contemplate separate tracks to emerge from bankruptcy by shedding hundreds of millions of dollars in debt and selling valuable assets or offering equity to creditors.

  • October 2, 2017

    Outer Harbor Creditors Object To Redacted Lender Fee Bid

    The official committee of unsecured creditors in the Chapter 11 case of port operator Outer Harbor Terminal LLC objected Sunday to the debtor’s attempt to make fee and expense payments to the legal counsel of its post-petition lenders, saying documents were too heavily redacted to provide needed information.

  • October 2, 2017

    Ga. Power Says Westinghouse Can't Block Contract Nix

    Georgia Power Co. told a New York bankruptcy court Friday that bankrupt Westinghouse Electric Co. LLC cannot hide behind its other creditors to prevent the termination of its contract to build two nuclear power plants.

  • October 2, 2017

    Insurers Face Headwinds In Bid To Audit Asbestos Payouts

    Insurers' bid for deeper audits of asbestos injury trust payouts on behalf of Philips North America hit skeptical questioning in Delaware’s Chancery Court on Monday, and reminders that the insurers appeared to have already agreed to nothing more.

  • October 2, 2017

    Takata Gets Nod On Unusual Bankruptcy Financing Deal

    A Delaware bankruptcy judge agreed Monday to give final approval to Takata Corp.’s unusual post-petition financing arrangement with its big-name automaker customers, expected to free up roughly $300 million in liquidity, after hearing they had resolved differences over funding with the tort claimant committee.

  • October 2, 2017

    Citibank To Return $1.74B In Deal With Lehman Bros.

    Citibank NA has agreed to return $1.74 billion to the Lehman Brothers estate after reaching a settlement with the defunct investment firm and its unsecured creditors several weeks into a bankruptcy court trial over the valuation of about 30,000 derivatives trades that went into default after Lehman's collapse.

  • October 2, 2017

    McFarland's Fyre Fest Fraud Topped $20M, New Charges Say

    Fyre Festival founder Billy McFarland pled not guilty Monday in Manhattan federal court as prosecutors expanded their charges against him for a fraud they say scammed at least 70 investors out of more than $20 million.

  • October 2, 2017

    Justices Won't Hear 6 False Claims Act Appeals

    The U.S. Supreme Court on Monday turned down six petitions in False Claims Act cases, touching on issues including pleading standards, tolling of the statute of limitations for FCA relators and a potential jurisdictional bar on attorneys’ fee awards.

Expert Analysis

  • Diversity In The Legal Profession — A Stubborn Vision

    Robert Grey

    At the Leadership Council on Legal Diversity, we want to see, as founding member and Microsoft chief legal officer Brad Smith once stated, “a legal profession as diverse as the nation we serve.” We are not there yet — far from it — but we are beginning to put some numbers on the board, says Robert Grey, president of the Leadership Council on Legal Diversity.

  • Opinion

    New Salary History Laws Crimp Attorney Hiring Process

    Fredric Newman

    In prohibiting employers from asking potential hires about their previous salaries, lawmakers seek to "level the playing field." But there are real problems with the practicality, legality and enforceability of many of the salary history laws, says Fredric Newman, a founding partner of Hoguet Newman Regal & Kenney LLP.

  • 5 Tips For A Successful Legal Blog

    David Coale

    David Coale, leader of the appellate practice at Lynn Pinker Cox & Hurst LLP, shares his insights into what works — and what does not — when setting up and maintaining a legal blog.

  • Series

    Judging A Book: Kopf Reviews Posner's 'Federal Judiciary'

    Judge Richard Kopf

    There is a wonderful sketch of Seventh Circuit Judge Richard Posner dressed in a black robe with arms outstretched as if they were the billowing wings of a lean vulture. He is kicking a human brain down a hallway and wearing a half-smile that looks for all the world like a sneer. That sketch is the perfect metaphor for both Judge Posner and his new book, "The Federal Judiciary: Strengths and Weaknesses," says U.S. District Judge Ri... (continued)

  • Lehman Ruling Sets Stage For Future Subordination Contests

    John Stigi

    The Second Circuit's determination that former Lehman Brothers employees' restricted stock units are securities is important to creditors seeking to safeguard their priority position among bankruptcy claimants, say John Stigi and Christopher Bosch of Sheppard Mullin Richter & Hampton LLP.

  • When Are Appellate Time Limits Jurisdictional?

    Eric Miller

    During its upcoming term, the U.S. Supreme Court will examine Federal Rule of Appellate Procedure 4(a)(5), which limits a district court's authority to extend the time for filing appeals. The court’s decision should further clarify the distinction between jurisdictional and nonjurisdictional time limits, says Eric Miller, chairman of the appellate practice at Perkins Coie LLP.

  • The Use Of Special Masters In Complex Cases

    Shira Scheindlin

    Special master appointments can be very beneficial in resolving disputes quickly, streamlining discovery, handling delicate settlement negotiations, and — somewhat surprisingly — reducing cost and delay, says retired U.S. District Judge Shira Scheindlin, now with JAMS.

  • Roundup

    Notes From A Law Firm Chief Privacy Officer

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    As more law firms become the targets of major cyberattacks, more firms may consider appointing a chief privacy officer. In this series, CPOs at four firms discuss various aspects of this new role.

  • Series

    Notes From A Law Firm Chief Privacy Officer: New Demands

    Phyllis Sumner

    For outside counsel, oftentimes efficiency and responsiveness collide with security measures as clients are increasingly requiring their law firms to comply with third-party risk management programs. To meet these challenges, law firms are focusing more on the roles of chief privacy officer and chief information security officer, says Phyllis Sumner, chief privacy officer for King & Spalding LLP.

  • Del. Case May Set New Roadblocks For 3rd-Party Releases

    Stephen Zide

    If the Delaware bankruptcy court were to find in the case of Millennium Lab Holdings that it lacks constitutional authority to approve nonconsensual third-party releases, such releases as part of a Chapter 11 plan will be even more difficult to obtain than they are already, say Stephen Zide and Rachael Ringer of Kramer Levin Naftalis & Frankel LLP.