Bankruptcy

  • June 14, 2017

    Marsh Approved For $28M Sales Of 26 Stores, Inventory

    Bankrupt grocery chain Marsh Supermarkets Holding LLC received court approval Wednesday in Delaware for a series of sale transactions that will provide about $28 million in cash to the debtor's estate after resolving numerous objections to the proposals.

  • June 13, 2017

    CST, Oaktree Clash Over $15M DIP, Ch. 11 Options In Del.

    Global storage tank maker CST Industries Holdings Inc. tangled with its largest creditor Tuesday during its first Chapter 11 hearing, with private equity Oaktree Capital Management LP seeking to block an interim $15 million debtor-in-possession loan.

  • June 13, 2017

    Permit Issues Plague Molycorp Mine Sale, Regulators Say

    A trio of federal agencies objected Tuesday to the proposed sale of a California mining enterprise owned by bankrupt Molycorp Minerals LLC, saying that permit issues need to be resolved before the transaction can be consummated.

  • June 13, 2017

    Essar Steel Ch. 11 Confirmed With New Owner, High Hopes

    A bankrupt Minnesota mine and mill venture that once threatened to become a bottomless Delaware Chapter 11 money pit instead had its more than $1 billion plan confirmed Tuesday, putting the company on the track for a 10 million-ton-per-year project build-out.

  • June 13, 2017

    MF Global Insurer Must Post $15M To Continue Arbitration Bid

    A New York bankruptcy judge ruled Monday that defunct brokerage MF Global's excess insurer Allied World must post a $15 million bond before the court can consider the insurer's request to arbitrate a coverage dispute in Bermuda, saying Allied World cannot evade requirements of New York insurance law.

  • June 13, 2017

    2nd Circ. Won't Revive RBS Libor Claims For 2nd Time

    A budget hotel operator can’t sue the Royal Bank of Scotland for alleged rate-rigging because it never mentioned those fraud claims during a since-concluded bankruptcy case, the Second Circuit affirmed on Tuesday, essentially laying down a "list it or lose it" ultimatum for post-petition claims.

  • June 13, 2017

    Alitalia Files For Ch. 15, Hinting Disruption To US Operations

    Italian airline Alitalia on Monday asked a New York bankruptcy court to protect its U.S.-based assets and recognize the insolvency proceedings that began last month in its home country, saying it is facing imminent disruption of its U.S. operations.

  • June 13, 2017

    Bankrupt Gymboree Gets Access To $35M New DIP Money

    Gymboree, the children's clothier saddled with a billion dollars' worth of debt during a 2010 buyout by private equity firm Bain, received interim bankruptcy court approval Monday to access $35 million in new money and hundreds of millions of dollars in other converted debtor-in-possession financing as it seeks to regain solid footing.

  • June 13, 2017

    Jevic Eyes Mediation After High Court Remands Settlement

    Trucking company Jevic Holding Corp. updated a Delaware bankruptcy judge on the status of its Chapter 11 case Tuesday, weeks after the U.S. Supreme Court remanded a 2012 structured dismissal of the case to the lower court because it leap-frogged employee claims with a higher priority for repayment.

  • June 13, 2017

    Sears Canada Mulls Sale As Financial Woes Intensify

    Sears Canada Inc. on Tuesday cautioned investors about its ability to continue operating as a going concern amid the "very challenging environment" in retail and low liquidity, saying it is considering all strategic alternatives, including a financial restructuring or a sale of the company.

  • June 12, 2017

    Justice Ginsburg On Diversity And Persuading Her Colleagues

    Justice Ruth Bader Ginsburg discusses what it means to have three women on the court, the aftermath of hostile Senate confirmation fights, and why justices sometimes do the unexpected, in the first of two articles based on an exclusive interview with the feminist icon.

  • June 12, 2017

    Cox Affiliates Accused Of Monopolizing Used-Car Market

    A defunct used-car dealership has lodged a complaint against Cox Automotive Inc. and its affiliates in Florida federal court, accusing the companies of monopolizing the used-car industry by colluding with major manufacturer dealerships and auctioning the cars off at fixed prices. 

  • June 12, 2017

    Horsehead Execs Seek To Toss Securities Suit Over Zinc Plant

    American Zinc Recycling LLC shot back Monday against a lawsuit alleging its top brass misled shareholders about the value of a new zinc plant that ran into problems and dragged the company into bankruptcy, telling a Delaware federal court they had been upfront about the risks of the venture.

  • June 12, 2017

    'Housewives' Star's Ex-Atty Loses Appeal Over Ch. 7 Deal

    A New Jersey federal judge on Monday affirmed a bankruptcy settlement allowing a formerly incarcerated star of “The Real Housewives of New Jersey” and her Chapter 7 trustee to pursue a malpractice suit against her former attorney, finding the lawyer didn’t have standing to challenge the settlement.

  • June 12, 2017

    SunEdison Cleared To Solicit Votes On Ch. 11 Plan

    More than a year after entering Chapter 11, bankrupt renewable energy giant SunEdison Inc. received authorization from a New York federal judge on Monday to distribute its financial restructuring proposals to creditors, with hopes of confirming its plan in just over a month.

  • June 12, 2017

    Defaults Send Tank Maker CST Industries Into Del. Ch. 11

    A leading world producer of storage tanks and domes sought Chapter 11 protection in Delaware late Friday, prompted by defaults on part of the private-equity-held company's $171 million debt load and an inability to negotiate better terms for a prepetition sale offer.

  • June 12, 2017

    High Court Leaves Door Open For More Debt Collection Cases

    A Monday U.S. Supreme Court decision determining that federal debt collection laws do not apply to banks that collect on debt that they buy leaves hanging the key question of how much of the debt a firm collects it must own to be exempt from the law’s consumer protections.

  • June 12, 2017

    Gymboree To Restructure $1.1B In Debt In Ch. 11

    Children's clothing retailer Gymboree Corp. announced Sunday it is looking to reduce its swelling debt by approximately $1 billion under a prenegotiated plan to restructure through Chapter 11 bankruptcy, saying it has fallen victim to a shift in consumer habits that has been roiling the retail industry.

  • June 12, 2017

    Hancock Fabric's Ch. 11 Plan Confirmed Over Objection

    A Delaware bankruptcy judge agreed to confirm the Chapter 11 plan of liquidation of Hancock Fabrics Inc. on Monday after attorneys for the debtor said it had resolved all of the outstanding objections to the plan except for one, which the judge overruled.

  • June 12, 2017

    Georgia Power Takes On Nuclear Plant With $3.7B Toshiba Aid

    Electric utility Georgia Power said Friday that it aims to take over an over-budget nuclear plant from bankrupt engineer Westinghouse, using a $3.7 billion guarantee from Westinghouse parent Toshiba.

Expert Analysis

  • Coming To America? Examining The Chapter 15 Avenue

    Andrew Goldman

    Chapter 15 of the Bankruptcy Code provides a doorway for non-U.S. companies to obtain creditor protection and other benefits of a U.S. bankruptcy, but how wide open is that doorway? Decisions interpreting Section 109(a) provide inconsistent answers, say attorneys with WilmerHale.

  • Recent Trends In Enforcement Of Intercreditor Agreements

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    Three recent cases show that bankruptcy courts are increasingly willing to interpret intercreditor agreements and agreements among lenders and apply their plain language to the facts of the case, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • What Lawyers Should Know To Avoid Online Scams

    J. S. Christie Jr.

    Scams resulting in access to confidential information are probably a lawyer’s greatest technology and cybersecurity risk. But hackers are more likely to gain access to a lawyer’s computer systems through human error, usually responding to a scam, than a brute force attack, says J. S. Christie Jr. of Bradley Arant Boult Cummings LLP.

  • Web Servers: An Overlooked Cybersecurity Risk At Law Firms

    Jeff Schilling

    Many law firms use public-facing websites for business development and to streamline operational processes. While these sites are great for maximizing information-sharing, they could unknowingly be an unlocked gateway into a firm’s most confidential data, says Jeff Schilling of Armor Defense Inc.

  • The Mediator’s Proposal As A Tool For Litigants

    Dennis Klein

    Mediators’ proposals, which call for an unconditional and confidential acceptance or rejection, are resolving high-value disputes on a regular basis. Dennis Klein of Critical Matter Mediation examines why this is happening and the tactical implications for litigants in anticipating that a mediator’s proposal could resolve litigation.

  • Expectations After The Trump Administration's First 100 Days

    Jim Flood

    In its first 100 days, the Trump administration has had mixed results and may be behind where it wants to be. The biggest threat to President Donald Trump’s domestic policy agenda beyond the first 100 days is the difficulty of reconciling the Freedom Caucus Republicans, moderate Republicans and Democrats, say Jim Flood and Cari Stinebower of Crowell & Moring LLP.

  • Defining An Occurrence For Sexual Abuse Cases

    Katharine Thompson

    In Diocese v. Duluth, the Bankruptcy Court for the District Court of Minnesota ruled last month that each instance of sexual abuse counted as a separate trigger of insurance coverage. This decision clashes with a recent decision made by a Pennsylvania court, indicating that courts across the country will continue to grapple with trigger and number of occurrence issues related to sexual abuse, says Katharine Thompson of Gordon Rees ... (continued)

  • The 9-Year Winning Streak Of Virginia ‘Rocket Docket’

    Bob Tata

    Out of 94 district courts, the Eastern District of Virginia has been the fastest civil trial docket in the country for nine straight years. Without micromanaging the process, the EDVA's judges, magistrate judges, and clerks and staff continue to perform at a stunningly efficient level, says Bob Tata of Hunton & Williams LLP.

  • Opinion

    Let's Talk About Half-Hearted Innovation

    Michael Moradzadeh

    Allowing attorneys to telecommute may seem like a great fix for law firms. But without significant changes to the firm's culture, telecommuting is just a patch applied to the problem of attrition, says Michael Moradzadeh, founding partner of Rimon PC.

  • Roundup

    Counsel To Counsel: Insights From Law Firm GCs

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    General counsel at four law firms share the biggest issues they face in an increasingly complex legal environment.