Shareholders who bought stock in a since-failed biotech company are bringing counterclaims against Jefferies LLC if they cannot arbitrate their dispute before the Financial Industry Regulatory Authority, telling a Texas federal court Friday that the investment banking firm failed to properly investigate the biotech securities before recommending them.
A former Patton Boggs intellectual property partner cannot sue his bankruptcy attorney for malpractice over her handling of his personal Chapter 7 bankruptcy case since that claim is property of his bankruptcy estate and can only be brought by the trustee, a Virginia federal judge held Friday.
The bankruptcy trust for Hercules Offshore Inc. lost a fight Thursday over a $103.5 million Delaware Chapter 11 claim filed by a Texas-based oil field firm tangled in federal liability actions arising from a July 2013 blowout on one of Hercules’ drilling rigs.
Metal maker Optima Specialty Steel Inc. requested an extension Friday in Delaware bankruptcy court of the exclusive period during which it can file and solicit votes on a Chapter 11 plan of reorganization, saying it needs more time to negotiate with plan sponsors.
A New York bankruptcy judge partially lifted Breitburn Energy Partners LP’s Chapter 11 automatic stay, ruling Friday that a Texas court should determine whether a holder of oil and gas royalty interests in proceeds earned by Breitburn subsidiaries has a property right or an unsecured contract claim.
A Minnesota mineral lease partnership objected Thursday to the continued inclusion of its land in plans for the former Essar Steel's Delaware bankruptcy, saying the multibillion-dollar venture has failed to get mechanic's liens lifted from its property and missed production deadlines.
A New York bankruptcy judge on Friday dismissed a class action against American Airlines Inc. and the Allied Pilots Association over pilot seniority issues stemming from the 2001 tie-up of AA and Trans World Airlines, saying a 2015 amendment of the complaint reintroduced claims that had been rejected earlier in a separate adversary proceeding.
A major creditor of bankrupt software firm ATopTech Inc. objected Friday in Delaware to the fee request made by the debtor’s special litigation counsel, Arnold & Porter Kaye Scholer LLP, saying the firm is working on separate litigation that doesn’t benefit the bankruptcy estate.
The Second Circuit on Friday revived publishing CEO Roy Brown’s claims his former K&L Gates LLP bankruptcy counsel tipped an asset sale toward banks they also represented, saying the district court was wrong to find Brown should have raised the issue at the bankruptcy proceeding.
Telecom company Netas fought Friday to preserve a $14.3 million claim in the long-running bankruptcy of Nortel Networks Inc., saying Nortel has provided virtually zero basis for its objection.
Executives at bankrupt telecom giant Avaya Holdings Inc. can collect up to $3 million in bonuses for hitting earnings targets tied to this year’s fiscal second quarter, a New York bankruptcy judge ruled Friday, after the U.S. trustee’s office dropped its objection to the payouts.
A California federal judge on Thursday nixed allegations that Experian and TD Bank improperly reported outstanding account balances after a debtor declared bankruptcy, saying the consumer failed to allege that the reports contained actual inaccuracies under the Fair Credit Reporting Act, but could have another shot at amending the suit.
Federal health insurer objections sidetracked Bostwick Laboratories Inc.'s bid for a $5.1 million final Chapter 11 borrowing approval in Delaware on Thursday, with the Centers for Medicare & Medicaid Services insisting on a larger than expected carveout for its claims to remaining company funds.
Bankrupt solar power company SunEdison Inc. and its clean energy yieldcos have no basis to use the debtor’s Chapter 11 to investigate claims that they breached a 2014 wind energy deal, the investor counterparties said in a filing Thursday, blasting the yieldcos for failing to seek discovery in state court.
A U.S. trustee asked a Florida bankruptcy judge Thursday to move the involuntary Chapter 11 case of class action law firm Eagan Avenatti LLP to California, where the firm, its owners and creditors are based.
Citing excessively restrictive or even unprecedented lender protection terms, a Delaware bankruptcy judge ordered a rework of Unilife Corp.’s $1 million interim debtor-in-possession loan agreement Thursday, saying the Chapter 11 proposal went too far.
The U.S. subsidiaries of high-end British lingerie company Agent Provocateur filed for Chapter 11 protection “with several landlords closing in,” planning to slim domestic operations and sell what remains to an affiliate of Four Marketing Group.
Bankrupt medical device maker Halt Medical Inc. received court approval Thursday in Delaware to access a portion of its $4.16 million debtor-in-possession financing package to be provided by its stalking horse bidder.
Bankrupt telecom giant Avaya doubled down Wednesday on its bid to pay $3.7 million in bonuses to six top executives, with the company’s chief restructuring officer telling the New York bankruptcy court that reaching the target revenue numbers for the bonuses has been a genuine challenge.
Texas utility regulators on Thursday unanimously rejected the $18 billion NextEra Inc. sale deal at the center of Energy Future Holdings Corp.’s Chapter 11 plan, dealing what appears to be a fatal blow to the power giant’s second attempt to exit bankruptcy.
The increasing use of Section 363 sales and the increasingly fast pace at which they are completed have drawn alarm and criticism from some industry participants and observers. However, these trends appear to be less alarming when viewed in the historical context of broader market factors, says Konstantin Danilov of Analysis Group Inc.
A default under a mortgage loan by a property owner can lead to undesirable consequences for both the tenant and the mortgage lender who becomes the new owner of the property. A subordination, nondisturbance and attornment agreement usually provides certain protections for the lender, but as long as both parties are willing to compromise, the end result is mutually beneficial, says Andrew Royce of Sherin and Lodgen LLP.
A recent survey found that nearly two-thirds of Am Law 200 firms are now using data analytics, compared to only about a tenth of regional and boutique firms. Yet the exploding market for data analytics technology in business is making these productivity tools available for any size matter or firm, say Christopher Paskach of The Claro Group and Douglas Johnston Jr. of Five Management LLC.
As the Sixth Circuit explained in Hildebrand, it is incorrect to assume that “applicable nonbankruptcy law” means any applicable law outside of the Bankruptcy Code. State laws can still be considered “bankruptcy” laws depending on their content — an important distinction to be leveraged when faced with an otherwise unfavorable “applicable law,” says Elliot Smith of Squire Patton Boggs LLP.
Most legal and business leaders know that internal culture — including tone, operating style, standard of behavior and shared values that guide employee decisions — can make or break a firm. An internal audit can assess a firm's culture and identify potential issues within the organization, says Justin Gwin of Kaufman Rossin PA.
For decades, law firms have taken on considerable expense to acquire or rent opulent office space, often with the intention of signaling seriousness and reliability to their clients. But more recently, solo practitioners and established firms alike have started breaking tradition, says Philippe Houdard, co-founder of Pipeline Workspaces.
The Seventh Circuit’s recent decision in Cox v. Nostaw serves as a useful reminder of Bankruptcy Rule 8008’s proper application in the context of a settlement that occurs pending appeal, and provides welcome guidance for a rule that has sparse case law, say Darren Azman and Michael Galen of McDermott Will & Emery LLP.
Both the Puerto Rico oversight board and the new commonwealth administration have expressed a strong preference for restructuring the commonwealth’s debt through the use of Title VI of the Puerto Rico Oversight, Management and Economic Stability Act. However, Title VI is unlikely to provide a realistic path to restructure tax-supported debt, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.
If today’s law firms are willing to rethink their perceptions of millennials, they may see greater success in attracting and retaining new talent by giving the younger generation the kind of retirement planning benefits they want and need, says Nathan Fisher of Fisher Investments.
Oil and natural gas markets hit bottom last year, with oil prices 75 percent lower, and gas prices 80 percent lower, than at their 2014 peaks. Oil and gas firms responded with job and capital expense cuts, and many faced restructuring. But steady price growth during the past year has led to more stability, say attorneys from Skadden Arps Slate Meagher & Flom LLP.