Bankruptcy

  • August 3, 2017

    TerraVia Gets OK On Interim DIP, Accelerated Sale Hearing

    Algae-based food product maker TerraVia Holdings Inc. received bankruptcy court approval Thursday in Delaware for interim access to $5 million in debtor-in-possession financing as well as a rapid timeline to accept bids for its assets.

  • August 3, 2017

    Wells Fargo Must Pay Telecom Cos. $1.7M In Diverted Funds

    A group of seven unpaid telecom subcontractors has won a $1.7 million judgment against Wells Fargo in New York federal court after suing the bank to recoup payment held in a bank lock box from a now-defunct contracting firm that installed communications equipment in New York City schools.

  • August 2, 2017

    Injured Atty Settles Claim Against Bankrupt Cab Co. For $22M

    The court-appointed Chapter 7 bankruptcy trustee for a Chicago cab company on Wednesday asked an Illinois bankruptcy court to approve a $22.1 million settlement between the company and a lawyer who was injured when the cab he was in crashed into a concrete highway barrier.

  • August 2, 2017

    Air-Bag Plaintiff Fights Bankrupt Takata's Injunction Bid

    A trial-bound personal injury plaintiff objected Wednesday to Takata's attempt to enjoin lawsuits like hers during the company's bankruptcy, saying the car crash that killed her husband and children gives rise to different claims from those of most other suits concerning Takata's faulty air bags.

  • August 2, 2017

    Texas Energy Co. Sheds $820M In Ch. 11 Consummation

    Houston-based oil and natural gas developer Vanguard Natural Resources said Tuesday it has consummated a prenegotiated Chapter 11 plan and emerged from bankruptcy with $936 million in total outstanding debt, after lightening the load by $820 million.

  • August 2, 2017

    US Trustee Slams Hampshire Group Ch. 11 Liquidation Plan

    An attorney for the U.S. trustee in Delaware called for the rejection of bankrupt menswear company Hampshire Group's Chapter 11 disclosure statement on Wednesday, pointing to potential asset shortfalls, multiple inconsistencies, conflicts with federal law and terms that could harm creditors.

  • August 2, 2017

    $480M Garlock Asbestos Fund Not Covered, Insurer Says

    Safety National Casualty Corp. on Wednesday asked a North Carolina federal judge to find it does not have to pay into a $480 million mesothelioma fund established as part of the Chapter 11 plan of defunct Garlock Sealing Technologies LLC.

  • August 2, 2017

    Keystone Tube Gets Ch. 11 Debt Swap Confirmed In Del.

    Bankrupt metal fabricator Keystone Tube Co. LLC on Wednesday received court approval in Delaware for the confirmation of its Chapter 11 plan, which will pay its first-lien secured creditors in full through a large exit financing facility and swap other secured debt for equity in a reorganized company.

  • August 2, 2017

    Madoff Trustee Wins Bid To Limit Exhibits At Merkin Trial

    Disgraced financier J. Ezra Merkin will not be able to point to the positive performance of certain funds that performed as well or better than his investments in Bernie Madoff’s defunct firm at an upcoming trial over Ponzi scheme proceeds, a New York bankruptcy judge ruled Wednesday.

  • August 2, 2017

    Algae-Based Food Co. TerraVia Hits Ch. 11, Seeking Fast Sale

    Algae-based food maker TerraVia Holdings Inc. filed for Chapter 11 protection Wednesday in Delaware saddled with roughly $200 million in debt and seeking a quick sale, with Dutch firm Corbion NV putting in a $20 million stalking horse bid.

  • August 2, 2017

    MF Global Insurer Pushes For Dismissal Of Adversary Suit

    Defunct brokerage MF Global’s excess insurer Allied World, which is trying to arbitrate a coverage dispute in Bermuda, has asked a New York bankruptcy court to toss MF Global’s adversary suit for what it claimed was improper service.

  • August 1, 2017

    DLA Piper Names Co-Managing Partners In Chicago

    DLA Piper's Chicago office has two new leaders, the firm announced Monday, appointing current U.S. and global co-chair of DLA Piper's restructuring practice Richard Chesley and co-head of DLA Piper's Chicago corporate and securities practice, Brendan Head, to the roles of co-managing partners in Chicago.

  • August 1, 2017

    True Religion Judge Rejects Lease Dump Plan, OKs $60M DIP

    A Delaware bankruptcy judge on Tuesday rejected procedures floated by True Religion Apparel Inc. for dumping some of its leases, siding with the U.S. Trustee’s Office, which argued the strategy contradicted bankruptcy rules, but giving the retailer the green light for its $60 million post-petition loan.

  • August 1, 2017

    Russian Ex-Biz Owner's Bankruptcy Granted US Recognition

    A U.S. bankruptcy judge on Monday said he had been shown no reason why the U.S. should not recognize the foreign bankruptcy of a major Russian granite producer's former owner.

  • August 1, 2017

    SunEdison Takes On Appeal Over Key Ch. 11 Plan Agreement

    Attorneys for bankrupt renewable energy giant SunEdison Inc. found themselves back in court Tuesday, just a week after confirming a Chapter 11 wind-down plan, indicating their intent to expeditiously deal with and dismiss an appeal from dissatisfied creditors over a $300 million exit financing agreement.

  • August 1, 2017

    Bostwick Ch. 11 Moves Ahead After Insider Suit Compromise

    Bostwick Laboratories Inc. made rough peace with its unsecured creditors Tuesday and moved ahead with plans to liquidate the bankrupt pathology lab's remaining Chapter 11 case, after agreement on provisions for an oversight panel for future asset-recovery actions against insiders.

  • August 1, 2017

    RadioShack Asks For $2M DIP Loan To Fund Plan Process

    Bankrupt electronics retailer RadioShack asked a Delaware judge late Monday to approve a $2 million debtor-in-possession loan to help fund its case as it pursues a confirmable Chapter 11 plan in the midst of declining revenues due to its shuttered retail operations.

  • August 1, 2017

    Ex-Zucker Goldberg Atty Owes Firm $1.93M, Suit Says

    A creditors committee of defunct New Jersey foreclosure law firm Zucker Goldberg & Ackerman LLC wants to reclaim on the firm's behalf more than $1.93 million paid to a onetime Pennsylvania partner before the business folded two years ago, according to a Monday bankruptcy court filing.

  • August 1, 2017

    Firm Denied Malpractice Suit Move From Bankruptcy Court

    A federal judge refused to remove a malpractice suit against Florida law firm Englett & Associates PLLC and one of its attorneys from bankruptcy court to U.S. district court, finding that the bid was premature since it was not ready for jury trial.

  • August 1, 2017

    Jefferies Dodges Arbitration With Biotech Investors

    A Texas federal court on Monday said investors who bought stock in a since-failed biotech company could not force Jefferies LLC into arbitration, because the shareholders bought stock from other entities and were not Jefferies’ customers.

Expert Analysis

  • Series

    My Strangest Day In Court: The Life Partners Bankruptcy

    Joseph Wielebinski

    The bankruptcy courtroom was filled with interested investors. They hung on every argument and every word of testimony. When Life Partners management argued that the allegedly fraudulent business model worked just fine, they cheered, recalls Joseph Wielebinski of Munsch Hardt Kopf & Harr PC.

  • Where AI Meets Cybersecurity And The Legal Profession

    Randy Sabett

    Artificial intelligence and machine learning will continue to be a major focus for the legal community, whether as an isolated topic, as it intersects with cybersecurity, or within the legal profession itself. Each of these raises unique concerns for attorneys, says Randy Sabett, vice chair of Cooley LLP's privacy and data protection practice group.

  • Weekly Column

    Innovating For Wise Juries: Interim Arguments

    Roy Futterman

    By allowing attorneys to summarize what has just occurred in testimony and how it fits into the wider case narrative, courts can substantially improve juror comprehension through every step of a trial. Yet interim arguments are not practiced regularly, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.

  • Unstructured Data Is Just The Tip Of The Iceberg

    David Turner

    Recent amendments to the Rules of Civil Procedure mean issues like spoliation, sanctions and adverse impacts are focus areas for many attorneys, providers and clients. David Turner of FTI Consulting Inc. discusses the technological best practices regarding preservation and proportionality, as well as the challenges associated with clients' structured data.

  • 5 Questions To Ask Firm Before Accepting A Litigation AFA

    Gregory Lantier

    Outside counsel experienced with alternative fee arrangements will have many war stories regarding successful — and less successful — fee arrangements. Asking outside counsel to share these experiences can provide useful insight into the strength of a proposed AFA, say attorneys with WilmerHale.

  • Working Capital True Up Is Not An End Run Around Liability Bar

    Stephen Quinlivan

    In Chicago Bridge & Iron v. Westinghouse Electric Co., the Delaware Supreme Court examined the interaction between a working capital true up and alleged breaches of financial statement representations and warranties in a purchase agreement. The result will likely lead to heated debates between buyers and sellers, says Stephen Quinlivan of Stinson Leonard Street LLP.

  • Opinion

    Why You Should Argue Your Appeal

    Stewart Milch

    Conventional wisdom says that oral argument is a mere formality; that in courts where judges read briefs in advance, their minds are made up and will rarely — if ever — change. But conventional wisdom notwithstanding, oral argument can be critical, says Stewart Milch of Goldberg Segalla LLP.

  • 6 Ways Teaching A Law School Class Can Benefit Lawyers

    Steven Allison

    Though teaching a law school class may be one of the last things on a busy practitioner's to-do list, it's a misconception that teaching will benefit only those who are looking to leave the practice of law and enter academia. It also offers several practical benefits, especially for more junior lawyers looking for stand-up experience, say Steven Allison and Samrah Mahmoud of Crowell & Moring LLP.

  • Turnaround Advisers Must Beware Calif. Labor Landscape

    Karl Block

    In working with businesses in California, turnaround advisers and acquirers should be sure to monitor developments on the state's Fair Day’s Pay Act, which could have a significant impact on restructurings, says Karl Block of Loeb & Loeb LLP.

  • Oh, The Indemnity! New Claims May Follow RMBS Settlements

    Joseph Cioffi

    Defendants in pre-financial crisis residential mortgage-backed securities litigation may look to underlying transaction documents, contract law or equitable principles to seek indemnity from other securitization parties for any settlement payouts, expenses or losses incurred from claims against them, says Joseph Cioffi of Davis & Gilbert LLP.