Bankruptcy

  • 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.

  • November 20, 2017

    Fiat Chrysler Botched Recall Row Survives, Returns To Calif.

    A New York bankruptcy judge ruled Friday that Fiat Chrysler can’t ditch a putative class action claiming it's liable for allegedly botched recall repairs, but sent the matter back to California federal court, saying the issues relate to events that occurred after its bankruptcy-related purchase of Old Chrysler.

  • November 20, 2017

    Sporting Goods Wholesaler Maurice Hits Ch. 11 In Del.

    Maurice Sporting Goods Inc. filed for Chapter 11 protection in Delaware on Monday with roughly $100 million in debt and private investment company Middleton Partners LLC lined up as the stalking horse bidder in a planned asset sale.

  • November 20, 2017

    Takata Can Extend Airbag Lawsuit Freeze For Individuals

    The Delaware bankruptcy judge presiding over the Takata case on Monday granted the debtors’ request to extend the freeze on lawsuits connected to its dangerously defective airbag inflators through late February for individual claims, but will revisit a stay on state enforcement actions in 30 days.

  • November 20, 2017

    RMBS Trustees Open Court Fight For $11.4B Lehman Claim

    Bankruptcy court scrutiny of Lehman Brothers’ sale of residential mortgage-backed securities in the years preceding the 2008 financial crisis got underway Monday as counsel for several RMBS trusts argued that the shuttered investment bank is responsible for $11.4 billion in damages for securitizing misrepresented loans.

  • November 20, 2017

    Embattled Exelco Should Have Ch. 11 Nixed, US Trustee Says

    A U.S. bankruptcy watchdog wants to dismiss diamond cutter Exelco NV’s Delaware bankruptcy, or possibly convert it to a Chapter 7, saying the company isn’t fulfilling major obligations it took on when it availed itself of court protection.

  • November 20, 2017

    Real Alloy Gets Interim OK On $365M Bankruptcy Loan Deals

    Bankrupt aluminum recycling firm Real Alloy Holding Inc. received interim approval Monday in Delaware for its $365 million post-petition financing plans that will make about $45 million in new money available as soon as Tuesday to help fund the company's operations.

  • November 17, 2017

    Bank Balks At GST Committee's Bid To Hire Configure

    Bankrupt GST AutoLeather Inc.’s pre- and post-petition lender Royal Bank of Canada took aim Friday at the unsecured creditors committee’s bid to hire investment banker Configure Partners LLC, arguing that the firm is not needed and much too expensive.

  • November 17, 2017

    Ch. 7 Trustee Accuses Chicago Cab Co. Of Stashing Assets

    Insiders of a now-bankrupt Chicago cab company offloaded its revenue stream to another entity in anticipation of a $26 million personal injury judgment, and also misappropriated $160 million in profits from medallion transactions using the cab company’s money, according to a new suit by a bankruptcy trustee on Thursday.

  • November 17, 2017

    Sandridge Investor Can't Sue Due To Bankruptcy: 10th Circ.

    The Tenth Circuit on Friday rejected an objector’s challenge to a $38 million settlement that ended a derivative suit against the directors of an energy company that went bankrupt while the case was pending, saying he lost the right to sue when the company’s shares were canceled.

  • November 17, 2017

    Powersports Co. Velocity Gets OK To Tap $25M Of Ch. 11 Loan

    A Delaware bankruptcy judge gave Velocity Holding Co. Inc. the nod Friday to tap $25 million of its post-petition financing that the motorsports parts and apparel company hopes will help fund a rework of its more than $400 million in debt that ultimately proposes a handover to first-lien creditors.

Expert Analysis

  • 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.

  • Uses And Possible Misuses Of 3rd-Party Releases In Ch. 11

    Richard Epling

    The benefits of third-party releases to proponents of debt restructuring are obvious, but the release process also is subject to abuse or overreaching, and there are no clear boundaries beyond which plan proponents may not go, says Richard Epling, a retired partner at Pillsbury Winthrop Shaw Pittman LLP.

  • The Psychology Of Hourly Fee Arrangements

    J.B. Heaton

    The range of possible and better fee agreements is wide. But such alternatives will become popular only if litigants confront the psychological tendencies shaping their existing fee arrangements, says J.B. Heaton, a partner at Bartlit Beck Herman Palenchar & Scott LLP.

  • Lessees Left In Limbo

    Kate Thomas

    The Ninth Circuit’s recent decision in Spanish Peaks casts doubt on the scope of protection that lessees may have when their leased real property is sold under Section 363 of the Bankruptcy Code, says Kate Thomas of Squire Patton Boggs LLP.

  • Self-Collection In E-Discovery — Risks Vs. Rewards

    Alex Khoury

    As judges become better educated about the complexities of collecting electronically stored information, in particular the inefficacy of keyword searching, they are increasingly skeptical of self-collection. And yet, for many good reasons (and a few bad ones), custodian self-collection is still prevalent in cases of all sizes and in all jurisdictions, says Alex Khoury of Balch & Bingham LLP.

  • In Delaware, The Gift Plan Is Not Dead Yet

    Michael Friedman

    Many believed that the U.S. Supreme Court’s decision this year in Czyzewski v. Jevic Holding would be the death knell for so-called gift plans in bankruptcy. But given the Delaware district court's recent decision in Nuverra Environmental Solutions, that does not appear to be the case, say attorneys with Chapman and Cutler LLP.

  • 4 Ways Law Firms Can Help Battle Addiction

    Link Christin

    With more than a third of lawyers showing signs of problem drinking, and untold others abusing prescription drugs and other substances, it is time for law firms to be more proactive in addressing this issue, says Link Christin, executive director of the Legal Professionals Program at Caron Treatment Centers.

  • A Look At Latest 7th Circ. Opinion In Sentinel Management

    Aaron Boschee

    In its fifth trip to the Seventh Circuit, the Sentinel Management Group’s bankruptcy case recently explored complex issues bankruptcy practitioners often encounter in large Chapter 11 cases with financial services debtors, says Aaron Boschee of Squire Patton Boggs LLP.

  • A Law Firm Guide To Helping Victims Of Human Trafficking

    Sarah Dohoney Byrne

    Unlike victims of many crimes, human trafficking survivors often have complicated legal problems related to the experience of being trafficked — everything from criminal records to custody disputes to immigration obstacles. Many law firms already provide assistance in these areas and can easily transition resources and expertise, says Sarah Dohoney Byrne of Moore & Van Allen PLLC.

  • Bankruptcy Sale Does Not Obviate Chapter 91 Compliance

    Christopher Stracco

    In 975 Holdings LLC v. City of Egg Harbor, the New Jersey Tax Court recently extended the state's Chapter 91 dismissal provisions to properties purchased through a bankruptcy asset sale. A taxpayer should always respond to a Chapter 91 request to protect the rights of subsequent purchasers, say Christopher Stracco and Katharine Coffey of Day Pitney LLP.