Bankruptcy

  • December 4, 2017

    Fisker Judge Won't Ax Suit Over Ch. 11 Spinoff Stock Sale

    A Delaware bankruptcy judge declined Monday to throw out claims from Fisker Automotive’s liquidating trustee challenging a stake-diluting equity sale from the company spun off after the electric carmaker’s Chapter 11 sale, ruling that the trustee raised plausible concerns there might have been a breach of fiduciary duty.

  • December 4, 2017

    NY Solar Co. Hits Bankruptcy After Abrupt Layoffs

    Level Solar Inc. filed for Chapter 11 bankruptcy protection in New York on Monday with plans to investigate its former CEO, a little more than two months after the residential solar panel installer was accused of abruptly closing its doors and terminating all employees without legally required advanced warning.

  • December 4, 2017

    Blasingame Burch Freed From Ex-Client's Pelvic Mesh Suit

    A West Virginia federal judge on Monday tossed a suit against Blasingame Burch Garrard & Ashley PC by a pelvic mesh class member who said she was pushed into a settlement and the money became property of her bankruptcy estate, saying a different court already settled the question of whose property it was.

  • December 4, 2017

    Walter Investment Gets OK To Tap $1.9B DIP Loan

    Mortgage lender and servicer Walter Investment Management Corp. received interim approval on Monday from a New York bankruptcy court to access a $1.9 billion debtor-in-possession warehouse lending facility it says is needed to finance its primary operating subsidiaries.

  • December 4, 2017

    Shareholder Attys Liable For Firm’s $1.3M Unremitted Tax

    Former shareholders of a now-defunct law firm are personally liable for almost $1.3 million in unremitted withheld payroll taxes to the Internal Revenue Service, a judge in the Southern District of New York ruled on Monday.

  • December 4, 2017

    Developer Woodbridge Hits Ch. 11 Amid SEC Probe

    Real estate development and investment firm the Woodbridge Group of Companies LLC filed for Chapter 11 protection Monday in Delaware amid a U.S. Securities and Exchange Commission investigation into its fundraising practices, looking to restructure some $750 million in mostly retail note debt.

  • December 4, 2017

    Justices Won't Review Widow's Fraud Suit Against GM

    A widow whose husband and four children were killed in a car crash won’t get another shot at overturning a settlement reached with General Motors Co. despite accusations the automaker hid evidence that could have proved her case, after the U.S. Supreme Court on Monday refused to take up the suit.

  • December 1, 2017

    Citibank Reaches Deal To Exit Lehman's $1B Clawback Fight

    Following an undisclosed agreement, a New York federal judge Friday dismissed Citibank from a suit in which a Lehman Brothers unit seeks to claw back $1 billion in swaps transactions from various large banks including Bank of America and JPMorgan Chase.

  • December 1, 2017

    Law Firm Challenges CFPB's Constitutionality At 9th Circ.

    A law firm urged the Ninth Circuit on Thursday to free it from having to respond to a subpoena from the Consumer Financial Protection Bureau, arguing that the agency's structure is unconstitutional since it’s headed by a single director who has “vast,” unrestrained power.

  • December 1, 2017

    Walter Investment To Cut Debt By $800M With Ch. 11 Prepack

    Mortgage lender and servicer Walter Investment Management Corp. filed for Chapter 11 bankruptcy Thursday in New York to execute a prepackaged financial restructuring plan that will reduce the company’s debt by just over $800 million and swap some debt for equity.

  • December 1, 2017

    CIBER Creditors Warn Of Uneven Recoveries In Del. Ch. 11

    Unsecured creditors of bankrupt information technology company CIBER Inc. objected Friday to the confirmation of the company’s Chapter 11 plan in Delaware federal court, alleging inadequate disclosures of plan details and impermissible, disparate treatment of creditors.

  • December 1, 2017

    Exelco Ch. 15 Reps Join Calls To Throw Out Ch. 11 Case

    The foreign representatives for diamond cutter and wholesaler Exelco NV’s pending Chapter 15 case, who were appointed by a court in Belgium, joined the calls to have a competing earlier Chapter 11 case thrown out late Thursday, arguing that the initial bankruptcy filing was lodged in bad faith.

  • December 1, 2017

    Bankrupt Construction Co. Fights To Preserve $26M Contract

    Bankrupt construction contractor Advanced Contracting Solutions Inc. asked a New York bankruptcy court Thursday to prevent another company from pulling the plug on a $26 million contract at a Manhattan condo tower, saying the contract will be “essential for a successful reorganization or sale.”

  • December 1, 2017

    Aman Resorts' Ch. 11 Case Tossed In 'Déjà Vu' Moment

    Another chapter was added Thursday to a dizzying legal saga over the control of luxury hotel group Aman Resorts, as a New York bankruptcy judge for the second time dismissed an involuntary Chapter 11 case purportedly orchestrated by indicted entrepreneur Omar Amanat, adding that a criminal referral is being made.

  • December 1, 2017

    Chancery Allows Tilton Ouster From Boards In Zohar Fight

    A Delaware Chancery judge late Thursday sided with a group of collateralized loan obligation businesses, known as the Zohar funds and once managed by Patriarch Partners CEO Lynn Tilton, in a fight over who controls the equity vote in several portfolio companies, rendering a ruling that allows for Tilton's ouster from the firms' boards.

  • December 1, 2017

    Lufthansa Offers Concessions For €210M Air Berlin Buy

    Deutsche Lufthansa AG offered Europe’s antitrust enforcer concessions Thursday for its plan to purchase €210 million ($238.1 million) in assets from the beleaguered Air Berlin PLC after the commission found that the deal could hurt competition.

  • December 1, 2017

    EDMC Seeks End To Marblegate’s New Suit Over $15M Debt

    Two affiliates of troubled for-profit college firm Education Management Corp. being pursued by Marblegate Asset Management over $15 million in debt have asked a Manhattan federal judge to dismiss the lender’s latest suit, saying they haven’t actually defaulted and the court has already weighed in on the matter.

  • November 30, 2017

    Hyper-Accelerated Maurice Sale Plans Draw Trustee Rebuke

    A 32-day sale timeline proposed by bankrupt retail distributor Maurice Sporting Goods Inc. drew an objection from the U.S. trustee Thursday, who said the plan does not provide enough time for the assets to be marketed or for bidders to perform due diligence before the Dec. 13 bid deadline.

  • November 30, 2017

    Bikram Yoga Bankruptcy Should Be Dismissed: US Trustee

    The U.S. trustee on Thursday asked a California bankruptcy court to revoke the Chapter 11 status of hot yoga chain Bikram Choudhury Yoga Inc. for failure to file required financial information.

  • November 30, 2017

    Gawker Liquidator Defeats Efforts To Undercut Thiel Probe

    Gawker Media LLC can advance a probe into billionaire Peter Thiel’s funding of litigation that brought down the gossip news website, a New York bankruptcy judge said Thursday, while also denying Thiel’s bid to insert himself into Gawker’s asset sale process.

Expert Analysis

  • Make Way For The 'Unicorns'

    Lucy Endel Bassli

    By "unicorn" I don’t mean the next great tech startup with a valuation of $1 billion. I mean the new breed of lawyers realizing that there are better ways to get their day jobs done, says Lucy Endel Bassli, assistant general counsel leading the legal operations and contracting functions at Microsoft Corp.

  • Series

    Judging A Book: McConnell Reviews 'Unequal'

    Judge John McConnell

    As widespread claims of sexual misconduct continue to surface in the entertainment industry and beyond, a discussion of how judges treat workplace discrimination cases may be particularly timely. Here, U.S. District Judge John McConnell reviews the book "Unequal: How America’s Courts Undermine Discrimination Law," by professors Sandra Sperino and Suja Thomas.

  • Curing A Default: When Is It Too Late?

    Adam Wolk

    There remains some debate as to whether events of default can be cured in the absence of, or after the lapse of, an express cure period in credit agreements, and there is little judicial discussion on this specific scenario, say attorneys with Mayer Brown LLP.

  • Roundup

    Making Pro Bono Work

    Pro Bono Thumbnail

    In this series, attorneys explore the challenges and rewards of pro bono volunteering in the legal profession.

  • Being There: Preparing Witnesses For Depositions

    Alan Hoffman

    Preparing witnesses to be deposed is a critical element of discovery. It is important to remember that each witness is an individual with unique personal qualities, strengths and weaknesses. Getting to know the witness helps establish rapport and trust, says Alan Hoffman of Husch Blackwell LLP.

  • Series

    Making Pro Bono Work: The Sidley-Exelon Partnership

    Kelly Huggins

    Exelon Corp. and Sidley Austin LLP have been working together on both short- and long-term pro bono matters for the past 10 years. We offer a glimpse of how we got started and what we have done in the hope that other corporate legal departments and law firms might find ways to work together to meet the legal needs of the poor, say Kelly Huggins, pro bono counsel at Sidley Austin, and Margaret Balsley-Cross, assistant general counsel at Exelon.

  • Why Board Certification For Bankruptcy Lawyers Matters

    Michael Fielding

    Given the sheer number of rankings and awards for attorneys, how can a potential buyer of legal services sort the wheat from the chaff? In bankruptcy law, the American Board of Certification provides a readily available layer of protection for both practitioners and their clients, says Michael Fielding of Husch Blackwell LLP.

  • Recipe For Legal Project Management: Look To BBQ Champs

    Anthony Rospert

    As a master certified barbecue judge with the Kansas City Barbeque Society, I have noticed that the top pitmasters follow a consistent process in approaching each and every competition. Their "secret sauce" — employing project management principles — can also help lawyers achieve success, says Anthony Rospert of Thompson Hine LLP.

  • Series

    Making Pro Bono Work: Can You Practice In Your State?

    Eve Runyon

    The justice gap is a well-documented problem and over the past two decades, law firms have mobilized attorneys to provide millions of hours of pro bono every year. But for many in-house counsel, there remains a big hurdle — restrictive multijurisdictional practice rules, says Eve Runyon, president and CEO of Pro Bono Institute.

  • Arcapita Bank Closes Escape Valve For Foreign Defendants

    Mark Salzberg

    A New York bankruptcy judge’s recent opinion in the Arcapita Bank Chapter 11 case is certain to have a dramatic impact in adversary proceedings involving foreign defendants. Unfortunately for those foreign defendants, it may now be much more difficult to escape from those proceedings, says Mark Salzberg of Squire Patton Boggs LLP.