Bankruptcy

  • November 27, 2017

    USDA Balks At 'Drastic' Cut Of $34M Claim In Limitless Ch. 11

    Bankrupt mobile broadband provider Limitless Mobile LLC’s proposed Chapter 11 plan will hinge on the outcome of a longstanding fight over the size of the federal government’s claim, after a last-minute settlement fell through ahead of a confirmation hearing Tuesday in Delaware bankruptcy court.

  • November 27, 2017

    Avaya Ch. 11 Plan, Supported By Creditors, Heads To Judge

    Avaya Inc. said Sunday that it is ready to confirm a Chapter 11 turnaround plan at a New York bankruptcy court hearing this week with support from all of its major creditor constituencies after hashing out plan amendments during court-ordered mediation.

  • November 27, 2017

    Calif. Governments Appeal Peabody's Exit From Climate Suit

    Two California counties and a city announced Sunday they’ll appeal a bankruptcy court’s decision to shield post-bankruptcy Peabody Energy from liability for driving long-term, possibly irreversible damage to the climate, as three dozen other fossil-fuel extractors continue to face the claims.

  • November 27, 2017

    Cancer Center 21st Century Faces Pushback Over Ch. 11 Plan

    Creditors and insurers of 21st Century Oncology Holdings Inc. filed objections to its Chapter 11 plan Monday in New York bankruptcy court over complaints of sloppy drafting and unpaid bills, setting up several hurdles the cancer treatment center will have to clear before emerging from bankruptcy.

  • November 27, 2017

    Venezuela, Crystallex Deal OK'd In $1.2B Mine Row

    Venezuela and the bankrupt Crystallex International Corp. secured a Canadian court’s approval Friday for a settlement resolving their dispute over a $1.2 billion arbitral award issued to the company over the government’s expropriation of a gold mine.

  • November 22, 2017

    Bankrupt NY Contractor Seeks OK For $135M DIP Loan

    A New York construction contractor that filed for bankruptcy earlier this month asked a judge on Wednesday to approve a $135 million debtor-in-possession financing the debtor says is critical to keep up work on open projects while it sorts out its finances in court.

  • November 22, 2017

    Holiday Season Won't Contain 'Retail Apocalypse'

    The hype surrounding the so-called retail apocalypse describes a real phenomenon that may be worse than anticipated, with experts predicting 2018 to be the worst year for retail bankruptcies in recent memory, portending a shakeup that could spread to the larger economy.

  • November 22, 2017

    Takata Tort Claimants Say Deal Would Favor Parts Makers

    Tort claimants of bankrupt automotive airbag maker Takata objected late Tuesday to the company’s proposed restructuring support agreement, saying it envisions a plan that would pay original equipment manufacturers while leaving existing and future tort claimants to fight for recoveries with the debtor’s estate.

  • November 22, 2017

    Hunton Moves To Toss $34M Stanford Deal Objections

    Hunton & Williams LLP asked a Texas federal judge Tuesday to reject the objections that have been raised to its $34 million deal to settle allegations that it aided Robert Allen Stanford’s $7 billion Ponzi scheme, saying the settlement is fair and won’t impact the rights of other parties embroiled in litigation over the scheme.

  • November 22, 2017

    ChinaCast Reaches Deal To Advance Ch. 11 Plan Confirmation

    ChinaCast Education Corp. and a private equity firm sitting on a $66 million judgment against the defunct company asked a New York bankruptcy court Tuesday for a second chance at approval of a settlement, which would see them team up to pursue $30 million worth of the debtor’s insurance policies.

  • November 21, 2017

    Trustee Objects To Releases In Aerogroup Ch. 11 Plan

    The federal bankruptcy watchdog blasted the proposed Chapter 11 plan of women’s footwear maker Aerogroup International Inc. on Tuesday, telling a Delaware bankruptcy court the plan contains overly broad third-party releases and that an accompanying disclosure statement doesn’t give enough information.

  • November 21, 2017

    Limitless Delays Ch. 11 Confirmation For Settlement OK

    Bankrupt mobile broadband provider Limitless Mobile LLC on Tuesday in Delaware delayed a confirmation hearing on its third amended Chapter 11 liquidation plan for one week in hopes of receiving approval from the federal government during that time on a settlement deal that is critical to the plan.

  • November 21, 2017

    Del. Court Nixes Committee Delay For M&G USA Sale Hearing

    A Delaware bankruptcy judge declined Tuesday to postpone a Dec. 11 sale hearing for M&G USA Corp.’s $1.7 billion Chapter 11, but delayed for 10 days a final hearing on the global plastic resin supplier’s $100 million debtor-in-possession loan.

  • November 21, 2017

    Sporting Goods Co. Gets Nod On Breakup Fee In Ch. 11 Sale

    A Delaware bankruptcy judge approved a $150,000 expense reimbursement Tuesday should bankrupt Maurice Sporting Goods Inc.’s Chapter 11 stalking horse sale stumble, despite acknowledging concerns about insufficient legal backing and problematic features.

  • November 21, 2017

    Puerto Rico Board Says Bond Insurer Can't Fight Fiscal Plan

    The federal board charged with guiding Puerto Rico through its watershed debt restructuring reasserted Tuesday that it must remain unfettered from bondholder litigation to certify fiscal budgeting plans for the territory and ultimately come up with debt readjustment proposals, tamping down complaints of alleged constitutional violations.

  • November 21, 2017

    Oncor Stakeholder Goes After NextEra For $72M Breakup Fee

    A minority shareholder in Texas utility Oncor Electric Delivery Co. LLC told the Delaware Chancery Court on Monday that NextEra Energy owes it $72 million as a breakup fee for a merger shot down by state regulators.

  • November 21, 2017

    Subpoenas 'Out The Door' In National Events Ponzi Probes

    Two parallel investigations into the $70 million National Events Ponzi scheme are humming along, as a New York bankruptcy court on Tuesday approved several motions that will tie up loose ends while the defunct ticket reseller waits on responses to a flurry of recently issued subpoenas.

  • November 21, 2017

    Talos-Stone Union Creates $2.5B Offshore Driller

    Talos Energy LLC and Stone Energy Corp., which emerged from bankruptcy earlier this year, on Tuesday said they will merge in an all-stock deal that will create an offshore drilling company with an enterprise value of $2.5 billion and an initial market capitalization of $1.9 billion.

  • November 21, 2017

    Vitamin World Approved For Store Liquidation, Sale Plans

    Bankrupt health supplement retailer Vitamin World Inc. will move ahead with plans to sell most of its stores as a going concern operation while liquidating the rest of its locations after receiving approval for the process from a Delaware federal judge on Tuesday.

  • November 20, 2017

    M&G, DIP Lender Slam Creditor Call To Sideline Sale, Loan

    Bankrupt plastics maker M&G USA Corp., its debtor-in-possession lender and top secured creditor hit back Monday at an unsecured creditor's call to delay hearings on the company's bid and sale procedures, warning that the company has no options and dwindling cash.

Expert Analysis

  • The Limitations Of Administrative Expense Claims

    Jason Binford

    The Delaware bankruptcy court's decision in the case of SRC Liquidation makes clear that administrative expense claim rights will be strictly construed to goods that are physically provided to the debtor. Clearly, concerned vendors should be wary of drop shipment, says Jason Binford of Gardere Wynne Sewell LLP.

  • How Bankruptcy Can Maximize Health Care Businesses' Value

    Adam Harris

    The consolidation of financially troubled companies can be effectively achieved through the bankruptcy sale process. For health care businesses in particular, bankruptcy sales can maximize the value of these businesses by providing buyers with flexibility and myriad protections, say Adam Harris and James Bentley of Schulte Roth & Zabel LLP.

  • Practical Considerations For Litigating Against SPVs

    Matthew Ingber

    In the wake of the financial crisis, many lawsuits seeking to recover damages for alleged investment losses have been filed by special-purpose vehicles. Litigation practitioners will benefit from a practical consideration of the strengths and weaknesses of these entities in formulating an overall litigation strategy, say attorneys with Mayer Brown LLP.

  • Congress Faces 'CHOICE' On Future Of SEC Enforcement

    Thomas Zaccaro

    While most of the Financial CHOICE Act focuses on financial regulations imposed by Dodd-Frank and other federal legislation, portions of the act would have a significant impact on U.S. Securities and Exchange Commission enforcement actions, say attorneys with Paul Hastings LLP.

  • CFPB's 1st 'Abusive' Claim Against A Loan Purchaser

    Kristie Kully

    The Consumer Financial Protection Bureau’s use of its abusiveness authority to attack Aequitas Capital Management’s willingness to acquire loans with high risks of default certainly makes one wonder about the downside risks of the CFPB’s foray into the capital markets, say attorneys with Mayer Brown LLP.

  • Toys R Us Faces Chapter 11 Challenges

    Stephen Selbst

    Toys R Us recently filed for Chapter 11 bankruptcy, citing the impact of e-commerce as a major factor. Other recent retail bankruptcies underscore how difficult it is for retailers to recover from a bankruptcy filing, and creditors must be prepared, says Stephen Selbst of Herrick Feinstein LLP.

  • Finding The Unicorn In Lender Liability Litigation

    Jerry Blanchard

    Investors frequently talk about trying to find the next unicorn, that small startup company that is going to turn into a billion-dollar valuation. The New Jersey district court's recent decision in PNC Bank v. Star Group offers debtors counsel hope that a unicorn has finally arrived in the lender liability context, says Jerry Blanchard of Bryan Cave LLP.

  • Why A Hanjin Fleet Came To Hong Kong

    Dean Young

    The demise of Korea’s Hanjin Shipping Co. Ltd. was the largest bankruptcy of a container line in history, and recently resulted in the biggest ever court sale of ships in Hong Kong, totaling over $600 million. Hong Kong’s legal system makes it an ideal venue for ship mortgage enforcement, say attorneys with Mayer Brown JSM.

  • Cautionary Tales For Landlords Of Bankrupt Tenants

    Marshall Hogan

    If the past year is any indication, landlords of bankrupt retail tenants may want to be especially mindful of Section 502(b)(6) of the Bankruptcy Code, which may limit their ability to recover certain damages, says Marshall Hogan of Foley & Lardner LLP.

  • How Collaboration Is Changing Inside Some Law Firms

    Chris Cartrett

    In our recent survey of business of law professionals, nearly half of respondents said that who they collaborate with, inside their law firm, is different from five years ago, says Chris Cartrett of legal software provider Aderant.