Bankruptcy

  • August 11, 2017

    Rajaratnam Fights Galleon Fund Trustee's $135M Fraud Suit

    Convicted insider trader Raj Rajaratnam and two other executives with his defunct hedge fund Galleon Group asked a New York federal judge on Thursday to dismiss a bankruptcy trustee's $135 million fraud case against them, saying the complaint "completely distorts the reality" of the company's wind-down.

  • August 10, 2017

    Breitburn Gets OK To Use DIP Proceeds For Swap Deals

    A New York bankruptcy judge entered an order Wednesday allowing Breitburn Energy Partners LP to enter into swap agreements with its debtor-in-possession lenders and related entities to hedge potential losses from fluctuations in oil and gas prices.

  • August 10, 2017

    Feds' Claim Against Crawfish Importer Can Skip Ch. 11 Stay

    The U.S. government can bypass the automatic stay in Rupari Food Services Inc.’s ongoing bankruptcy and have a $2.8 million judgment entered against the debtor for claims it cheated on customs taxes years ago, the U.S. Court of International Trade ruled Thursday.

  • August 10, 2017

    Trustee For Columbia House Trying To Claw Back Millions

    The liquidating trustee for the parent of onetime music megadistributor Columbia House filed legal actions Wednesday seeking $19 million in clawbacks and suing four former executives for breach of fiduciary duty over an improvident loan.

  • August 10, 2017

    Justices Rescind Grant To Hear Ch. 11 Debt Rebranding Case

    The U.S. Supreme Court said Thursday that it erred in June when it took up a North Carolina bankruptcy dispute over whether debt used to finance the acquisition of a golf and residential real estate development was correctly recharacterized as equity after the original loan was sold to settle a foreclosure.

  • August 10, 2017

    Takata's Japanese Parent Seeks Ch. 15, Litigation Halt

    Takata’s corporate parent in Japan, already under a form of bankruptcy protection in its home country, sought Chapter 15 recognition Thursday in Delaware, opening another front in the company’s quest to halt the firestorm of litigation over defective Takata air bag inflators linked to at least a dozen deaths.

  • August 10, 2017

    Sexual Health Chain Peekay Plans Sale In Del. Ch. 11

    Sexual health and wellness retailer Peekay Acquisition Inc. opened a Chapter 11 sale effort in Delaware early Thursday, reporting $72.6 million in debt and launching its bankruptcy with plans for a stalking-horse-led marketing of the 46-store business.

  • August 9, 2017

    Firm Brings New Antitrust Suit Over Bankruptcy Software Fees

    A suit removed to federal court on Tuesday reveals that law firm McGarry & McGarry LLC is taking another stab at antitrust conspiracy claims regarding fees charged to Chapter 7 trustees, even after the Seventh Circuit and federal courts have recently dismissed similar claims from the firm.

  • August 9, 2017

    Puerto Rico Sales Tax Bond Row On Track For Dec. Resolution

    The federal judge overseeing Puerto Rico’s landmark insolvency proceedings nudged forward a consensual plan to settle a key creditor dispute over liens on the territory’s sales tax revenues before the end of the year, approving the appointment of agents to represent competing bondholders at a hearing Wednesday.

  • August 9, 2017

    EFH Creditors Slam $270M Breakup Fee In $9.1B Berkshire Bid

    A trio of Energy Future Holdings Corp. creditors objected Wednesday to details in a proposed $270 million termination fee if a $9.1 billion sale to Berkshire Hathaway Energy Co. fizzles, with the size of the breakup expense a common target.

  • August 9, 2017

    Takata Confronts Opposition To Bid For Air Bag Suit Freeze

    Bankrupt Takata faced a legion of opposition Wednesday to its bid to halt scores of lawsuits connected to the company's defective air bag inflators, parrying accusations that the idea came from Takata's major automaker customers to shield them from litigation claimants and government agencies.

  • August 9, 2017

    Knight Energy Holdings Files For Ch. 11

    Knight Energy Holdings LLC, an oil and gas tool rental company, filed for Chapter 11 bankruptcy in Louisiana on Tuesday, citing the knock-on effects of stubbornly low petroleum prices and seeking a quick turnaround through a proposed debt-for-equity swap.

  • August 8, 2017

    Fed, FDIC Extend Living Will Deadline For 19 Foreign Banks

    The Federal Reserve Board and Federal Deposit Insurance Corp. on Tuesday extended the deadline for 19 foreign banks and two domestic bank holding companies to file their next round of "living wills" detailing how they can be speedily and safely wound down in the event of a crisis.

  • August 8, 2017

    Nissan To Pay $98M To Exit Takata Air Bag MDL

    Nissan is the latest automaker to settle allegations in multidistrict litigation over defective Takata Corp. air bags, agreeing to a $97.7 million payout, consumers told a Florida federal judge Tuesday.

  • August 8, 2017

    Constellation Creditors Deny Jevic Fit In Ch. 11 Ruling

    Unsecured creditors of Constellation Enterprises LLC urged a federal judge late Monday to reverse a bankruptcy court’s rejection of the company's structured dismissal settlement, saying the decision wrongly relied on the U.S. Supreme Court’s recent Jevic decision.

  • August 8, 2017

    PBGC, Creditors Object To Hospital Laundry Co.'s Ch. 11 Plan

    Unsecured creditors and the Pension Benefit Guaranty Corp. have both objected to Angelica Corp.’s proposed Chapter 11 plan, calling a release-of-liability clause in the medical laundry and linen management company’s plan far too broad to pass muster.

  • August 8, 2017

    Hospital Says 21st Century Ch. 11 Can't Shield Affiliate

    A cancer center in California urged a New York bankruptcy court Monday to block 21st Century Oncology Holdings Inc.'s Chapter 11 litigation stay, arguing that the move would extend protection to an affiliate that isn’t a debtor in the case.

  • August 8, 2017

    Bondholders Sue To Guard Puerto Rico Electric Co. Money

    Bond insurers with interest in most of the $8.3 billion in outstanding bond debt issued by Puerto Rico’s government-owned power company launched a complaint Monday to force the utility to remit pledged funds for debt service, saying the company has failed to honor contractual obligations.

  • August 8, 2017

    Ex-Dewey Partners Urge Leniency For Convicted Former CFO

    Former Dewey & LeBoeuf LLP partners expressed support for a no-jail sentence for former Dewey Chief Financial Officer Joel Sanders in letters filed with a New York court Monday, saying Sanders' actions didn't cause the megafirm's collapse.

  • August 8, 2017

    7th Circ. Says Peregrine Forex Customers Can't Collect

    The Seventh Circuit on Monday upheld bankruptcy and federal district court rulings that a proposed class of customers having metal and foreign exchange contracts with Peregrine Financial Group Inc. could not collect from its bankruptcy estate, nor could another proposed class with time-barred claims.

Expert Analysis

  • The Best Documents In Your Case May Be From 3rd Parties

    Wyatt Dowling

    Cases are built on evidence and evidence comes from discovery. But discovery is largely a voluntary process. Serving a document subpoena on a third party can be an efficient and creative way to fill in the gaps that may exist in the productions of opposing parties, says Wyatt Dowling of Yetter Coleman LLP.

  • A Possible Pathway Out Of The Stern V. Marshall Maze

    Benjamin Feder

    PEM Entities v. Levin, which the U.S. Supreme Court will hear next term, potentially could provide the court with a coherent rationale to start resolving the uncertainty it created six years ago in Stern v. Marshall regarding the constitutional authority of bankruptcy courts, says Benjamin Feder of Kelley Drye & Warren LLP.

  • Planning A Legal Career With A Future Relocation In Mind

    Jacqueline Bokser LeFebvre

    Lawyers move to New York City to work on some of the most sophisticated work the legal market has to offer. This exposure and experience is an amazing asset and many of the skills developed will make associates very marketable in the event they consider relocating to another market. However, this isn’t always the case, says Jacqueline Bokser LeFebvre of Major Lindsey & Africa.

  • 4 Female Perspectives On BigLaw Leadership

    Regina Pisa

    Only a handful of the largest U.S. law firms are led by women. Here, in their own words, are perspectives from Shook Hardy & Bacon Chair Madeleine McDonough, Crowell & Moring Chair Angela Styles, Morgan Lewis & Bockius Chair Jami Wintz McKeon and Goodwin Procter Chair Emeritus Regina Pisa.

  • The Elephant In The Room: Advancing Women To Partnership

    Anusia Gillespie

    Despite more focus and investment, the numbers continue to show little progress in advancing women to the top tiers of firm leadership. Considering the irreversible nature of the transformation of the market for top talent, it is time to start experimenting and innovating from the core, rather than from the periphery, say Anusia Gillespie and Scott Westfahl of Harvard Law School.

  • How Midsize Law Firms Can Minimize Cybersecurity Threats

    K. Stefan Chin

    It can be challenging for midsize law firms to develop an enterprise cybersecurity program that mitigates the eminent threat of data breach and meets the regulatory and compliance requirements of the firm and its clients. This challenge becomes daunting when considering the steady rise in client audits, say K. Stefan Chin of Peckar & Abramson PC and John Sweeney of Logicforce.

  • Is Bankruptcy An Option For Ancillary Marijuana Businesses?

    Patricia Heer

    The director of the U.S. Trustee Program recently proclaimed before a congressional subcommittee that debtors with assets or income derived from marijuana may not proceed through the bankruptcy system. However, this limitation has not been addressed, let alone settled, with respect to businesses that are ancillary to marijuana cultivators and dispensaries, says Patricia Heer of Duane Morris LLP.

  • Health Republic’s Curious Liquidation: Part 12

    James Veach

    Health Republic's liquidator has stated that claimants will not be paid until Health Republic's disputed claims against and from the federal government are resolved. Policyholders and other creditors should not be told to wait through a claims adjudication process only to find that potentially barely any money may remain to pay even a small portion of approved claims, says James Veach of Mound Cotton Wollan & Greengrass LLP.

  • Turning Bust To Boom: P3 Initiatives Under PROMESA

    Richard Cooper

    Normally, investors and lenders to public-private partnerships avoid pursuing projects where the government’s ability to provide financial, operational and logistical support is subject to considerable uncertainty. But the tools provided by the Puerto Rican Oversight, Management and Economic Stability Act can help mitigate some of these risks and even facilitate future projects in Puerto Rico, say attorneys with Cleary Gottlieb Ste... (continued)

  • Weekly Column

    Innovating For Wise Juries: Matching Experts

    Stephen Susman

    In the penultimate installment of this series, Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project answer a question on many legal analysts’ minds: What if both sides’ expert witnesses sat in a hot tub discussing the case while a jury watched?