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Bankruptcy

  • May 7, 2018

    Patriarch Calls $10M TransCare Clawback Suit 'Nonsensical'

    Private equity fund Patriarch Partners asked a New York bankruptcy court on Friday to dismiss claims in a $10 million clawback suit over the private equity firm’s alleged role in bankrupting ambulance company TransCare Corp., calling the suit “nonsensical.”

  • May 7, 2018

    Puerto Rico Finance Monitor Can't Duck Journos' Bid For Docs

    A Puerto Rico district court has ruled that the island’s federally appointed oversight board must turn over internal documents to journalists, a move that severely undermines the board’s claims of broad constitutional immunity and could open the door to future lawsuits against it.

  • May 7, 2018

    EV Energy Investors Seek Appointment Of Ch. 11 Examiner

    A pair of equityholders of bankrupt oil and gas producer EV Energy Partners LP asked a Delaware bankruptcy judge Monday to appoint an examiner in the case to look into potential prepetition transactions that allegedly stripped the debtor of value.

  • May 7, 2018

    Nine West Creditors Warn Of Fight Over $50M DIP Term Loan

    The unsecured creditors of Nine West Holdings Inc. could make it more difficult for the bankrupt women’s shoe and apparel company to gain access to a proposed $50 million debtor-in-possession term loan, as an attorney for the creditors complained Monday that it seemed “exorbitantly expensive” and restrictive.

  • May 7, 2018

    Bertucci's Appeases Creditors With Extended Sale Timeline

    Bankrupt Italian eatery chain Bertucci’s resolved objections Monday in Delaware from the official committee of unsecured creditors in its Chapter 11 case by extending the deadlines for its asset sale procedures and increasing the committee’s budget.

  • May 7, 2018

    Weinstein Co. Says Creditors Trying To 'Sabotage' $310M Sale

    The Weinstein Co. and its unsecured creditors stepped up their feud Monday over an unofficial after-the-deadline bid for the bankrupt business, an offer that TWC said appeared to be a "coordinated effort to sabotage" a $310 million cash deal with Lantern Entertainment LLC.

  • May 7, 2018

    Lehman Deal's Terms Not So 'Plain Vanilla,' 2nd Circ. Hears

    A Korean bank that refused to honor an unsigned settlement after a judge ruled in its favor in a dispute with bankrupt lender Lehman Brothers Holdings Inc. asked the Second Circuit on Monday to reverse a judge’s finding that the deal was binding, saying the “plain vanilla” terms that weren’t addressed in mediation were actually complex.

  • May 4, 2018

    Law360 Reveals Titans Of The Plaintiffs Bar

    They’ve gone up against big-name companies while advocating for plaintiffs ranging from grieving family members to shareholders and consumers in some of the biggest and most well-known cases of the past year.

  • May 4, 2018

    Jumio Investor Claims Leadership Bungling In Ch. 11 Suit

    Six former insiders and counsel of identity-verification startup Jumio, including a WilmerHale partner, were sued in Delaware bankruptcy court on Friday by an investor who said they ruined the company by causing it to forgo opportunities to be recapitalized before it filed for bankruptcy in March 2016.

  • May 4, 2018

    Pa. Atty Blabbed About Confidential Depo, KeyBank Says

    KeyBank NA urged a Pennsylvania federal judge on Friday to sanction a lawyer with McCullough Eisenberg LLC, alleging that the attorney emailed confidential information from a deposition to more than a hundred bankruptcy attorneys operating in the state seeking input on a case.

  • May 4, 2018

    Drivers Fight To Keep Suit Over Fiat Chrysler Recalls Alive

    Two drivers who accused Fiat Chrysler of implementing a new set of defects when it recalled faulty cars said Thursday that a New York bankruptcy judge's decision to shift the suit to California didn't lay the groundwork for dismissal, and the case should be permitted to move forward.

  • May 4, 2018

    New GM Must Face Some Groundwater Claims, Judge Says

    Michiganders with property-contamination claims against GM must submit to the provisions of GM's 2009 bankruptcy sale order, a New York bankruptcy judge ruled Friday — but that order does allow them to press claims over contaminants that were purportedly dumped presale but migrated onto their land post-sale.

  • May 4, 2018

    NRC Nixes Duke Energy License For Failed $24.7B Plant

    The U.S. Nuclear Regulatory Commission has rescinded construction and operating licenses held by Duke Energy Florida LLC related to a $24.7 billion nuclear power plant, putting a lid on the company’s now-failed venture with bankrupt Westinghouse Electric Co.

  • May 4, 2018

    Mammoet, NY Wheel Developer Reach Deal On Ch. 11, Project

    Bankrupt Mammoet-Starneth LLC, the entity hired to design and build the world's largest observation wheel in New York City, announced a resolution Friday allowing the developer to transition to a new contractor and get financing to finish the project while allowing the Chapter 11 case to continue in Delaware.

  • May 4, 2018

    GE Says Subprime Mortgage Unit May Face Ch. 11

    In a U.S. Securities Exchange Commission filing this week, General Electric Co. said its subprime mortgage unit may be heading into Chapter 11 if it is found liable in pending legal action over defective loans.

  • May 3, 2018

    Weinstein Accusers See 11th-Hour Deposition As Scare Tactic

    Accusers bringing sexual abuse allegations against Harvey Weinstein say a Wednesday-night notice by the Weinstein Co. in Delaware bankruptcy court for the handover of creditor communications regarding the Chapter 11 sale of the studio is meant to silence their support for a late bid that creates a fund for abuse victims.

  • May 3, 2018

    CFPB Beats Back Law Firms’ Bid To Chuck Illegal Fee Fight

    Three law firms and two attorneys can’t shake a Consumer Financial Protection Bureau suit claiming they charged millions of dollars in illegal up-front fees for debt relief services, a California federal judge said Thursday, finding many of those fees were collected within the three-year statute of limitations for enforcement actions.

  • May 3, 2018

    GM Trust Seeks OK For Ignition Switch Settlement

    The bankruptcy trust of Old GM Thursday asked for approval from a New York bankruptcy court for a settlement over legacy ignition switch lawsuits that could cost the reorganized New GM $1 billion in stock depending on what number the court puts to the remaining claims.

  • May 3, 2018

    Bankrupt Gun Seller Says It Was Felled By Trump's Election

    Ohio-based firearms distributor AcuSport Corp. filed for Chapter 11 bankruptcy this week, saying it has fallen on hard times ever since the 2016 presidential election because it increased inventory in mistaken anticipation that Hillary Clinton would win, causing a spike in demand.

  • May 3, 2018

    Relativity Media Re-Enters Ch. 11 With Asset Sale Plan

    Film studio Relativity Media LLC on Thursday re-entered Chapter 11 in a New York bankruptcy court with what it says is a plan to sell its assets to a joint venture.

Expert Analysis

  • You’re Perfect, Now Change: Perfectionism Hurts Lawyers

    Peter Norman

    Like medical professionals, lawyers often resist policies to reduce errors due to the culture of perfectionism that permeates the industry. Autonomy is key to the legal professional's prestige and the outward demonstration of competence is key to maintaining autonomy, says Peter Norman of Winnieware LLC.

  • In Lakeridge, Concurring Justices Take The Spotlight

    Steven Wilamowsky

    The U.S. Supreme Court last week held in Village at Lakeridge that the appropriate standard for determining nonstatutory insider status in bankruptcy is the clearly erroneous standard that was applied by the Ninth Circuit. But the concurring opinions, which address an issue that was not before the court, appear to be more significant, say Steven Wilamowsky and Aaron Krieger of Chapman and Cutler LLP.

  • Opinion

    Grassley, Feinstein Debate Judicial Vetting, Obstruction

    Sen. Chuck Grassley

    It is undisputed that in his first year in office President Trump was able to confirm a significant number of judges to the federal bench. How it happened — and whether it's a good thing — are debated here by Sen. Chuck Grassley, R-Iowa, and Sen. Dianne Feinstein, D-Calif.

  • A Potential Shift On Education Debt Discharge Standards

    Amir Shachmurove

    To its detractors, the so-called Brunner test, which is used to establish the dischargeability of student loan debts, stands out like a sore thumb. However, in an unexpected move, the U.S. Department of Education recently published a memo calling for comments that hinted it might be considering eliminating or modifying this standard, say attorneys with Troutman Sanders LLP.

  • Investing In Ground-Leased Or Net-Leased Real Estate

    Tzvi Rokeach

    When crafting a ground lease or any other form of triple net lease, special attention should be paid to the tensions that arise as a result of both tenant and landlord seeking to finance their respective positions, says Tzvi Rokeach of Kramer Levin Naftalis & Frankel LLP.

  • 10 Tips For Working With IT To Preserve Data

    John Tredennick

    Increasingly, when courts impose a “legal hold” they require legal supervision of the preservation process, meaning lawyers must rely heavily on information technology professionals to execute the mechanics. John Tredennick of Catalyst Repository Systems and Alon Israely of TotalDiscovery offer insights on how legal and IT can work together to make the process more efficient and fulfill the company’s legal obligations.

  • High Court Ruling In FTI Consulting Makes Eminent Sense

    Charles Tabb

    Before the U.S. Supreme Court's decision in Merit Management v. FTI Consulting last week, almost any corporate debtor could file in New York or Delaware and, in structuring a securities buyout, plan to close in escrow through a financial institution and be certain that the buyout was unavoidable. No more, says Charles Tabb of Foley & Lardner LLP.

  • A Powerful Tool For Tracing Foreign Assets In US

    Rick Antonoff

    Foreign representatives have long used Chapter 15 discovery to investigate whether a foreign debtor has assets in the U.S. But two recent cases in New York involving Russian debtors demonstrate the value of Chapter 15 for uncovering assets that were fraudulently transferred, say Rick Antonoff and Evan Zucker of Blank Rome LLP. 

  • Protecting Privilege In Litigation Financing Negotiations

    Eric Robinson

    Multiple courts have held that discoverable material from negotiations with a litigation funder, when executed properly, can be attorney work product and immune from disclosure in the later litigation. The recent Acceleration Bay decision is indicative of what happens when difficult facts conflict with best practices, says Eric Robinson of Stevens & Lee PC.

  • Lessons Learned From The Oil Patch Blues

    Tom Howley

    Now that crude oil prices appear to have stabilized, previously restructured oil and gas companies are once again looking to increase production and expand their asset bases. Bankruptcy created a competitive advantage for many reorganized entities, while companies that did not file are still in damage control, say attorneys with Jones Day.