Bankruptcy

  • July 28, 2017

    Bids For More Puerto Rico Creditor Committees Under Fire

    The U.S. bankruptcy watchdog Friday asked a Puerto Rican federal court to deny requests to expand the creditors’ committees in the island’s ongoing restructuring case, saying one request was unnecessary and the other not allowed.

  • July 28, 2017

    True Religion Landlords Balk At Lease Rejection Proposal

    True Religion Apparel Inc.’s landlords took issue Friday in Delaware bankruptcy court with the way the retail chain wants to dump leases at its dozens of stores across the country, arguing that the debtor’s deadline could reject the leases before it hands over the keys, flouting bankruptcy rules.

  • July 28, 2017

    Rent-A-Wreck DIP Loan Approved, With Pledge Not To Tap It

    Bankrupt secondhand car rental company Rent-A-Wreck of America Inc. received court approval Friday in Delaware for $100,000 in post-petition financing after it pledged not to tap into the funding unless it was absolutely necessary.

  • July 28, 2017

    Toshiba To Pay $2.2B For Unit's Exit From SC Nuke Reactors

    Westinghouse Electric Co. parent company Toshiba Corp. will pay nearly $2.2 billion to rid itself of obligations on two unfinished nuclear reactors at the Summer Nuclear Station in Jenkinsville, South Carolina, according to a statement released Thursday by the project owners.

  • July 27, 2017

    National Events Creditor Nabs Remaining Assets, Ch. 7 Looms

    The messy bankruptcy of ticket reseller and alleged Ponzi scheme vehicle National Events Holdings LLC entered a new phase Thursday, as a New York bankruptcy court finally let its largest creditor collect on the company’s $730,000 in remaining assets, opening the door for a Chapter 7 trustee to take over.

  • July 27, 2017

    Payless Shoes To Walk Out Of Ch. 11 After Plan Approval

    A Missouri bankruptcy judge filed an order of approval Wednesday giving discount shoe retailer Payless ShoeSource Inc. the green light to execute its proposed reorganization plan and emerge from Chapter 11 with its own discount on nearly $850 million in prepetition funded debt, shaved down to just over $400 million.

  • July 27, 2017

    Millennium Labs Judge Grills Sides On 3rd-Party Releases

    The Delaware bankruptcy judge presiding over Millennium Labs' Chapter 11 case on Thursday grilled the debtor and a creditor who appealed the 2015 confirmation order over what constitutional authority allows liability releases granted without creditor consent, delving into an issue that could have far-reaching implications for bankruptcy courts’ power.

  • July 27, 2017

    U Of Puerto Rico Plan Trustee Wants Clarity On Asset Transfer

    The trustee for a benefits plan for University of Puerto Rico employees has asked the judge overseeing the territory's landmark restructuring case if it can legally transfer fund assets, as the school has demanded, after it declined to distribute $33 million in emergency early-withdrawal requests due to the island’s insolvency.

  • July 27, 2017

    Bank Can Seize $2.3M More In Defunct Co.'s Assets: 6th Circ.

    The Sixth Circuit on Thursday found that Huntington National Bank had correctly valued a foreclosed property and was entitled to $2.3 million more of the owner's assets to make up the amount it was owed.

  • July 27, 2017

    Bostwick Creditors Say Plan Administrator Is Conflicted

    The official committee of unsecured creditors in the Chapter 11 case of cancer testing firm Bostwick Laboratories Inc. objected to the company’s proposed plan, saying that the suggested plan administrator is hopelessly conflicted with Bostwick’s largest equity holder.

  • July 27, 2017

    2nd Circ. Denies Ex-Lehman Trader's Bid For $85M Bonus

    The Second Circuit on Thursday declined to make Lehman Brothers pay a former trader $85 million, saying he has already been paid most of the money the bankrupt brokerage owed him.

  • July 27, 2017

    Paragon Drilling Units Get Nod To Use Cash Collateral

    A group of offshore drilling subsidiaries of the reorganized Paragon Offshore LLC received court approval Thursday in Delaware to use cash collateral to fund their new Chapter 11 cases after reaching consensus with the United States trustee and the owners of the debtors’ drilling rigs.

  • July 26, 2017

    Essar Judge Sidelines Fight Over IRS' $9M Debt Hunt

    Facing a potentially needless fight over bankruptcy court power to block the IRS' pursuit of an Essar Steel executive for a $9 million company tax debt, a Delaware judge steered the dispute into a brief limbo Wednesday, indicating that time could resolve the issue.

  • July 26, 2017

    Ticket Co. 'Insider' Ripped For Payout Bid Amid Ponzi Claims

    The U.S. trustee and several unsecured creditors of defunct ticket reseller and suspected Ponzi scheme vehicle National Events Holdings LLC objected to a bid by the company’s minority owner to pocket proceeds from the sale of NEH’s remaining ticket inventory, saying it's unclear if the “insider” was complicit in the alleged scheme.

  • July 26, 2017

    EFH Creditor Gets More Time To Top Berkshire's $9B Sale Bid

    The Delaware bankruptcy judge presiding over Energy Future Holdings Corp.'s Chapter 11 on Wednesday gave its largest creditor more time to come up with a topping offer to Berkshire Hathaway's $9 billion sale bid, but did not extend the timeline beyond the point when Warren Buffet's conglomerate says it would walk.

  • July 26, 2017

    Katy Creditors Challenge Secured Debt Claims In Sale Deal

    The official committee of unsecured creditors in the Chapter 11 case of Katy Industries Inc. filed an adversary complaint Tuesday challenging the validity of the company's second-lien debt and its lender's purchase of Katy's assets using a credit bid on those secured claims.

  • July 26, 2017

    SquareTwo Fights Bids To Open Up Class Action Cases

    SquareTwo Financial Services Corp. on Tuesday asked a New York bankruptcy court to deny requests to lift its Chapter 11 litigation stay for a pair of suits alleging illegal debt collection practices, saying there is no money available for the plaintiffs.

  • July 26, 2017

    CEO Accuses Prosecutor Of Using Fraud To Get Guilty Plea

    The former CEO of defunct bottling company Le-Nature's Inc., who pled guilty in 2011 to defrauding banks and investors out of $660 million and was sentenced to 20 years in prison, attempted Tuesday in Pennsylvania federal court to withdraw his plea by accusing a U.S. Department of Justice lawyer of defrauding the court.

  • July 26, 2017

    Takata Delays Action On Unique Bankruptcy Funding Plans

    Air bag maker Takata told a Delaware bankruptcy judge Wednesday that it was adjourning action on an accommodation transaction designed to finance the company’s insolvency proceedings and that milestones included in the plan had been extended.

  • July 26, 2017

    GM Appeals Successor Liability Over Nonswitch Claims

    General Motors is appealing a court ruling that widened the scope of its post-bankruptcy responsibility for defects in pre-bankruptcy cars, it said Tuesday, signaling that it will fight allegations of shifting and steering defects as doggedly as it pursued last year's unsuccessful appeals to snuff out liability for a well-known ignition switch defect. 

Expert Analysis

  • Weekly Column

    Innovating For Wise Juries: Openings Before Voir Dire

    Richard Lorren Jolly

    This week’s idea for improving civil jury trials is remarkably simple: Allow counsel to provide complete opening statements to the entire venire before voir dire begins instead of after the jury is impaneled, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.

  • 5 Questions To Ask Client Before Proposing A Litigation AFA

    Gregory Lantier

    The first step in assembling an intelligent response to a request for an alternative fee arrangement is for outside counsel to be certain they understand the primary reasons that the client is making the request, say attorneys with WilmerHale.

  • How Good-Faith Defenses Can Waive Attorney-Client Privilege

    John Emmanuel

    A Florida bankruptcy court's recent decision in the case of Mongelluzzi bears comment for the considerations it may present to any party relying on a good-faith defense, whether rooted in the Bankruptcy Code or otherwise, say John Emmanuel and Frank Harrison of Buchanan Ingersoll & Rooney PC.

  • 3 Key Areas Legal Operations Teams Should Focus On

    Jaime Woltjen

    These days, legal operations directors can easily get stretched too thin between responsibilities like overseeing support staff and taking on office management responsibilities. Legal operations teams should focus their time and effort on outside counsel management, technology planning and analytics, says Jaime Woltjen of Stout Risius Ross LLC.

  • Protecting And Enforcing Judgment Creditor Interests In IP

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    Judgment creditors typically satisfy their claims through settlement or, if necessary, by seizing and selling a debtor’s real and tangible personal property. In the rare case when a debtor’s only asset is intellectual property, a creditor must be more determined and creative in order to satisfy its judgment, say Craig Weiner and Michael Kolcun of Robins Kaplan LLP.

  • How To Use The Bona Fide Prospective Purchaser Defense

    Excerpt from Lexis Practice Advisor
    Nicholas Rigano

    Under the Comprehensive Environmental Response, Compensation and Liability Act, current owners and operators of real property are strictly liable for costs to clean up environmental contamination. However, the bona fide prospective purchaser defense may shield a prospective purchaser from CERCLA liability stemming from pre-existing contamination, says Nicholas Rigano of Rigano LLC.

  • Recap

    What The Experts Said About High Court Rulings This Term

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    With the U.S. Supreme Court term now concluded, we take a look back at some first impressions from the experts when the most impactful decisions for corporate law were handed down.

  • US Law Firms Face Discovery Of Foreign Clients' Records

    Steven Kobre

    The law relating to the taking of discovery directly from U.S. law firms is evolving in favor of disclosure when documents have been provided to third parties. Law firms must be vigilant in handling their clients' documents or face being responsible for producing them to third parties, say Steven Kobre and John Han of Kobre & Kim LLP.

  • Opinion

    The Future Of Law And The Demise Of The Midsize Firm

    Fredric Newman

    Since 1980, there has been a systemic supersizing of business enterprises, the growth of sovereign wealth, and the emergence of international businesses. The pressure this has put on national and regional law firms to go global or go home is enormous, says Fredric Newman, a founding partner of Hoguet Newman Regal & Kenney LLP.

  • Town Center's Impact On Real Estate Lenders And Borrowers

    Dov Kleiner

    Last month, the Sixth Circuit's decision in In re Town Center established that a mortgage lender that has taken appropriate steps to perfect an assignment of rents is protected if its borrower files a bankruptcy petition. However, the comfort provided by this case is not universal, as the holding is dependent on the subject property being in Michigan, a "title theory" state, says Dov Kleiner of Kleinberg Kaplan Wolff & Cohen PC.