Bankruptcy

  • October 4, 2017

    National Events Probes Will Proceed With $280K DIP Approval

    The bankruptcy of defunct ticket reseller and possible Ponzi scheme vehicle National Events has entered a wait-and-see mode after a New York bankruptcy judge on Wednesday approved a final $280,000 loan that will fund dueling investigations into possible causes of action.

  • October 4, 2017

    Puerto Rico Board Withdraws Bid To Force Furloughs

    In light of the devastation caused by Hurricane Maria, the federally appointed board overseeing Puerto Rico's historic debt restructuring on Wednesday voluntarily dismissed a lawsuit it filed against the island's governor over his refusal to implement a $218 million public employee furlough program.

  • October 4, 2017

    Venezuelan Agency Goes MIA, Ex-Counsel Gets Suit Tossed

    After Venezuela's deposit insurance agency failed to appoint new counsel in its suit against Diaz Reus & Targ LLP, a Florida federal judge on Wednesday dismissed the agency's claims against the law firm over $6.9 million in fees from the Lehman Brothers bankruptcy.

  • October 4, 2017

    Yukos Shareholders Face More Roadblocks In Russia Tax Row

    Former Yukos shareholders, who are attempting to subpoena a lawyer for evidence that could be used to revive $50 billion in arbitral awards over allegedly fabricated tax debts from Russia, have been ordered by a California federal judge to explain why they have failed to notify opposing counsel of their latest motion.

  • October 3, 2017

    Transmar Ordered To Hand Over Docs On $8.2M In Lost Cocoa

    A New York bankruptcy judge on Tuesday ordered bankrupt cocoa trader Transmar Commodity Group Ltd. to hand over documents and find an employee to be deposed regarding $8.2 million worth of cocoa butter and powder whose whereabouts is unknown after Transmar allegedly bought it.

  • October 3, 2017

    Dormant Ch. 11 Case Reopened To Go After Indicted Ex-CEO

    An entrepreneur with a winding trail of fraud allegations may be back on the hook for a $24 million judgment for misappropriating funds while serving as CEO of a computerized trading firm after a New York bankruptcy court reopened the company’s Chapter 11 case on Monday.

  • October 3, 2017

    3rd-Party Release Constitutional, Millennium Labs Judge Says

    The Delaware bankruptcy judge presiding over Millennium Labs’ Chapter 11 case ruled Tuesday that she indeed did have constitutional authority to grant liability releases in a confirmation order without creditor consent, writing that the objecting creditor’s position would “dramatically change the division of labor between the bankruptcy and district courts.”

  • October 3, 2017

    Revised SunEdison D&O Allocation Pact Gets Judge's OK

    A New York bankruptcy judge Tuesday approved an insurance benefit allocation agreement for SunEdison Inc. and its affiliated solar yieldcos after receiving revisions addressing the concerns of two former executives afraid of losing policy protections.

  • October 3, 2017

    Vitamin World Landlords Seek Protection In Final DIP Order

    A group of landlords that lease retail space for stores operated by bankrupt Vitamin World Inc. filed an objection Tuesday in Delaware seeking to ensure their rights are protected when the debtor files its final post-petition financing order later this week.

  • October 3, 2017

    Takata Special Master Reports Delays In Claims Plan

    The special master overseeing the handling of a nearly $1 billion restitution fund in the criminal lawsuit over Takata’s potentially deadly air bag inflators made his first report to a Michigan federal court on Tuesday, saying that he’s hit several delays carrying out his duties so far.

  • October 3, 2017

    Diamond Firm's Ch. 11 May Put Del., Belgium Court At Odds

    Prominent diamond cutter and wholesaler Exelco NV moved Tuesday to avert a dispute between courts in Delaware and Belgium over the company’s restructuring effort, asking a Delaware bankruptcy judge to consider additional steps to block continued creditor liquidation attempts in Antwerp.

  • October 3, 2017

    CST Settlement Eases Approval Of Ch. 11 Bid Procedures

    Attorneys for bankrupt storage tank maker CST Industries Holdings Inc. told a Delaware judge Tuesday that it had reached a settlement resolving most of the outstanding objections to its proposed bidding and auction plan.

  • October 3, 2017

    GM Fights To Be In Bankruptcy Trial Over Revoked Defect Deal

    General Motors Co. argued Tuesday it should get to participate in an upcoming trial over whether a vehicle defect settlement with car purchasers and accident victims that was never signed by a GM bankruptcy trust is enforceable, as the deal could require the manufacturer to hand over $1 billion in company equity.

  • October 3, 2017

    Appvion Gets OK To Tap $65M Of Its Ch. 11 DIP Loan

    Specialty papermaker Appvion Inc. got Delaware bankruptcy court permission Tuesday to tap $65 million of its post-petition financing from first-lien lenders, kicking off a Chapter 11 case in which the company hopes to restructure more than $700 million in debt and reorganize as a going concern.

  • October 3, 2017

    'Idol' Lenders Fight Fox's Bid To Move Contract Row To NY

    An attorney for lenders of bankrupt Core Media, the producer of “American Idol,” urged a California judge Tuesday to keep hearing their suit that accuses Apollo Global Management and 21st Century Fox of interfering with their loan agreements with the company, after he tentatively ruled to send the case back to New York.

  • October 3, 2017

    Kasowitz Benson Can't Exit Ampal Ch. 7 Case, Judge Rules

    A New York bankruptcy judge on Tuesday found the CEO of energy investment holding company Ampal-American Israel Corp. in contempt for failing to respond to discovery and denied his attorneys permission to withdraw until the issue is settled.

  • October 3, 2017

    CRS Trustee Files $7M Clawback Suit Against Wells Fargo

    The trustee for bankrupt human resources contractor Corporate Resource Services Inc. and co-debtors filed a $7 million adversary suit Monday against Wells Fargo Bank NA for “forcing them into liquidation” and charging millions of dollars in unfair fees.

  • October 3, 2017

    Global Auto Leather Firm Files Ch. 11 With Deal In Tow

    Global automotive leather upholstery supplier GST AutoLeather Inc. and five affiliates sought Chapter 11 protection in Delaware early Tuesday, listing $196 million in liabilities and reporting plans for a creditor-supported sale of the 84-year-old business.

  • October 3, 2017

    Toshiba To Pay $522M For Full Ownership Of Westinghouse

    Toshiba on Tuesday said it will pay 59 billion yen ($522 million) to buy out a minority shareholder and take full ownership of its bankrupt U.S. nuclear arm Westinghouse, a deal that comes as the struggling Japanese technology company is selling its memory business to a private equity-led group.

  • October 2, 2017

    Separate Restructuring Plans Emerge In China Fishery Ch. 11

    Two distinct plans to reorganize were filed Friday in China Fishery Group Ltd.’s Chapter 11 case, where its indebted groups contemplate separate tracks to emerge from bankruptcy by shedding hundreds of millions of dollars in debt and selling valuable assets or offering equity to creditors.

Expert Analysis

  • When Are Appellate Time Limits Jurisdictional?

    Eric Miller

    During its upcoming term, the U.S. Supreme Court will examine Federal Rule of Appellate Procedure 4(a)(5), which limits a district court's authority to extend the time for filing appeals. The court’s decision should further clarify the distinction between jurisdictional and nonjurisdictional time limits, says Eric Miller, chairman of the appellate practice at Perkins Coie LLP.

  • The Use Of Special Masters In Complex Cases

    Shira Scheindlin

    Special master appointments can be very beneficial in resolving disputes quickly, streamlining discovery, handling delicate settlement negotiations, and — somewhat surprisingly — reducing cost and delay, says retired U.S. District Judge Shira Scheindlin, now with JAMS.

  • Roundup

    Notes From A Law Firm Chief Privacy Officer

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    As more law firms become the targets of major cyberattacks, more firms may consider appointing a chief privacy officer. In this series, CPOs at four firms discuss various aspects of this new role.

  • Series

    Notes From A Law Firm Chief Privacy Officer: New Demands

    Phyllis Sumner

    For outside counsel, oftentimes efficiency and responsiveness collide with security measures as clients are increasingly requiring their law firms to comply with third-party risk management programs. To meet these challenges, law firms are focusing more on the roles of chief privacy officer and chief information security officer, says Phyllis Sumner, chief privacy officer for King & Spalding LLP.

  • Del. Case May Set New Roadblocks For 3rd-Party Releases

    Stephen Zide

    If the Delaware bankruptcy court were to find in the case of Millennium Lab Holdings that it lacks constitutional authority to approve nonconsensual third-party releases, such releases as part of a Chapter 11 plan will be even more difficult to obtain than they are already, say Stephen Zide and Rachael Ringer of Kramer Levin Naftalis & Frankel LLP.

  • Opinion

    It's Time To Improve Voir Dire In Federal Court

    Lisa Blue

    During the jury selection process, many times parties submit proposed voir dire questions, but the court ultimately chooses the questions to be asked and does all of the questioning of the jury panel. While this approach is judicially efficient, rarely do we learn anything meaningful from the panel members, say Lisa Blue of Baron and Blue and Robert Hirschhorn of Cathy E. Bennett & Associates.

  • Series

    Notes From A Law Firm Chief Privacy Officer: Insider Risks

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    As law firms hold sensitive information not only related to the firm but to the firm’s clients, an insider threat — whether it's a "bad actor employee" or inadvertent activity — poses a particular concern. There are steps that privacy officers can initiate to help minimize these threats, says Patricia Wagner, chief privacy officer for Epstein Becker Green.

  • Understanding When Claims Travel With The Debt

    Abbe Dienstag

    A recent case in New York state court, One Williams Street Capital Management v. U.S. Education Loan Trust IV, affords a useful opportunity to understand both the reach and the limitations of a uniquely New York statute, which provides that a transfer of a bond “vests in the transferee all claims or demands of the transferrer,” say Abbe Dienstag and John Bessonette of Kramer Levin Naftalis & Frankel LLP.

  • Series

    Notes From A Law Firm Chief Privacy Officer: Balancing Act

    Kristin Jones

    As the role of law firm chief privacy officer becomes more prevalent and expansive, many CPOs are finding themselves in the midst of a delicate balancing act — weighing compliance with government regulations and client requirements on one side with the needs of firm business on the other, says Kristin Jones, chief privacy officer for Stradley Ronon Stevens & Young LLP.

  • Facing Mass Store Closings As A Retail Landlord

    Anthony Borich

    According to industry reports, retailers have announced over 3,000 store closings already this year, which is double the total for all of 2016. As turmoil in the retail business intensifies, landlords must carefully consider transaction, litigation and bankruptcy strategies in order to minimize loss, say attorneys with Jenner & Block LLP