Bankruptcy

  • June 9, 2017

    CFPB Could Avoid Fight With New Debt Collection Plan

    The Consumer Financial Protection Bureau's director on Thursday said the agency would look to rewrite rules for debt collectors' communications and disclosures with consumers before dealing with thornier questions on data accuracy, a move experts say could avoid opposition from Republicans, as there is wide agreement the rules need to be updated.

  • June 9, 2017

    Supplier Objects To Liens In Katy Industries DIP

    A hardware and material supplier for bankrupt Katy Industries Inc. objected Friday in Delaware to the debtor’s proposed final debtor-in-possession financing package, saying it inappropriately places liens on Katy-held property that belongs to the supplier.

  • June 9, 2017

    'Housewives' Star's Ex-Atty Can't Escape Malpractice Action

    A former attorney for a onetime incarcerated star of “The Real Housewives of New Jersey” lost his second bid to toss her malpractice action against him on Friday, when a New Jersey state judge said the lawyer's arguments were either premature or previously rejected by another jurist.

  • June 9, 2017

    Rupari Seeks To Seal Worker Info In Bankruptcy Filings

    Meat distributor Rupari Food Services Inc. asked the Delaware bankruptcy court Thursday for permission to seal the address information of the company's employees, a measure that has met increasing opposition from the U.S. Trustee’s Office in other cases on the grounds the information is public.

  • June 9, 2017

    Bond Insurer Calls Puerto Rico Fiscal Plan Unconstitutional

    Ambac Assurance Corp. on Thursday accused the commonwealth of Puerto Rico and several of the territory's insolvent public corporations of violating the law Congress established to buoy the island’s sinking economy, saying special revenue funds are being unconstitutionally diverted from paying back bondholders.

  • June 9, 2017

    Extreme Plastics Wants Out Of Cases Due To Lack Of Funds

    Oil field services firm Extreme Plastics Plus Inc. asked a Delaware bankruptcy judge late Thursday to dismiss the company's Chapter 11 case because it is out of money and has not done any business since selling its assets last fall.

  • June 9, 2017

    BCBG Seeking Asset Sale To Marquee, Global Brands

    Bankrupt women's fashion company BCBG Max Azria on Friday announced it has reached a deal to split nearly all of its remaining assets between fashion companies Marquee Brands LLC and Global Brands Group Holding Ltd.

  • June 8, 2017

    SunEdison Seeks OK For $32M D&O Insurance Deal

    As part of its Chapter 11 exit plan, SunEdison Inc. asked a New York bankruptcy court Wednesday to approve a settlement that will generate $32 million for the company's unsecured creditors in exchange for a release of claims against former and current SunEdison executives.

  • June 8, 2017

    Puerto Rico Justices Must Hear Bond Issuer Row, Judge Told

    The dispute between COFINA bondholders and Puerto Rico's general obligation bondholders took a new turn Wednesday, as the former parties asked the federal judge overseeing the commonwealth's restructuring to let Puerto Rico's Supreme Court determine once and for all whether tax-backed bond issuer COFINA is even constitutional.

  • June 8, 2017

    US Trustee Says Katy Industries Can't Seal Employee Info

    The federal bankruptcy watchdog took issue Thursday with Katy Industries Inc.’s bid to shield its employees’ addresses from filings, arguing in Delaware federal court that the bankruptcy rules don’t allow for such a blanket redaction and that debtor has not shown why such information should be sealed from the public.

  • June 8, 2017

    Experian, TD Bank Depart Atty's FCRA War

    Experian and TD Bank have exited a California federal suit alleging they violated the Fair Credit Reporting Act by reporting outstanding account balances after a debtor declared bankruptcy, ending just one of more than 100 similar cases filed by a bankruptcy attorney.

  • June 8, 2017

    Atty's Retainer With Ch. 7 Client 'Reprehensible,' Judge Says

    A federal bankruptcy judge has slammed an Idaho lawyer's "reprehensible" use of a retainer agreement to pressure a debtor-client to pay bills and threats to abandon the case as part of an order demanding a complete disgorgement of his fees.

  • June 8, 2017

    Del. Bankruptcy Judge OKs $2.7M Settlement In Haggen Ch. 11

    A Delaware bankruptcy judge approved a $2.7 million settlement agreement on Wednesday in the Chapter 11 proceedings of debtor Haggen Holdings LLC, a grocery store operator that filed for protection about a year after it acquired 146 stores from Albertsons LLC.

  • June 8, 2017

    Pension Fund, Union Fight Hospital Laundry Co.'s Ch. 11 Sale

    The National Retirement Fund and a Service Employees International Union affiliate objected Wednesday to bankrupt medical laundry company Angelica Corp.'s proposed $125 million sale to a KKR & Co. LP affiliate, saying the court cannot let the debtor shed its $51 million in pension obligations.

  • June 8, 2017

    House Passes Bill Overhauling Dodd-Frank

    In a party-line vote the U.S. House of Representatives passed a bill Thursday that would repeal and replace many of the financial regulations put in place by the Dodd-Frank Act.

  • June 7, 2017

    GM Ruling Shows Bankruptcy May Not Erase Duty To Warn

    A New York bankruptcy judge’s ruling Wednesday that General Motors’ 2009 bankruptcy sale doesn’t protect the automaker from non-ignition switch-related claims aimed at the company’s alleged post-sale actions highlights the fact that a successor company may still have a duty to warn about defective products bought from a debtor.

  • June 7, 2017

    Texas Affirms Denial Of NextEra's $12.2B Oncor Acquisition

    The Public Utility Commission of Texas on Wednesday stood by its recent decision to reject NextEra Energy Inc.'s $12.2 billion plan to purchase Oncor Electricity Delivery, the state’s largest utility, saying the proposed transaction was not in the public interest.

  • June 7, 2017

    7th Circ. Judge Wary Of Sentinel's 2nd Clawback Attempt

    A Seventh Circuit judge on Wednesday pressed an attorney for Sentinel Management Group’s trustee to explain the “extraordinary situation” that brought the trustee before the court to once again attempt to claw back $14.5 million from a creditor three years after the appellate court rejected the same request.

  • June 7, 2017

    $2.4B Lehman RMBS Deal Draws Investor Side-Eye

    Institutional investors holding a large slice of hundreds of millions of Lehman Brothers-related residential mortgage-back securities trusts put a New York bankruptcy court on notice Tuesday that they're dubious of a deal announced days ago that would set a $2.4 billion floor for the trusts' resolution, pointing to numerous provisions that would bar future legal claims.

  • June 7, 2017

    Westinghouse Asset Sale Could Prompt CFIUS Review: Feds

    Federal attorneys told a New York bankruptcy court this week that certain transactions involving the sale of nuclear energy behemoth Westinghouse or its assets to foreign entities could be subject to review by U.S. officials and ultimately rejected by President Donald Trump, who has taken hard stances on trade issues.

Expert Analysis

  • Opinion

    The Hunger Games, Puerto Rico Edition

    Anthony T. Caso

    Puerto Rico’s “general obligation” bondholders are trying to kill off the competition for whatever scraps will be left over when, and if, creditors finally get paid. But their “Hunger Games”-like strategy is bound to fail, says Anthony Caso of Chapman University Fowler School of Law.

  • Fewer 2nd Chances For Failed Retailers

    Christa Hart

    For many retail chains filing for Chapter 11 protection, bankruptcy is often the end of the line rather than a fresh start. Retailers’ long-standing reliance on seasonal asset-based revolvers, trade credit and operating leases may be contributing to this outcome, say Christa Hart and Amir Agam of FTI Consulting Inc.

  • Top 10 Litigation Risks For Retailers In 2017

    Ann Schofield Baker

    With the 2017 retail season in full swing, what issues are keeping retailers up at night? Ann Schofield Baker of Perkins Coie LLP has distilled a list of top retail risks and trends this year, ranging from data breaches, cyber-ransom threats and toxic chemical compliance to the potential for litigation over subjects including shipping fees, discount pricing and website accessibility.

  • When Arbitration Clauses Collide With Bankruptcy Laws

    Laura M. Fontaine

    A bankruptcy trustee or a debtor in possession has several specific powers that frequently come into conflict with a nondebtor’s desire to invoke an arbitration clause. The Fifth Circuit’s recent decision in Janvey v. Alguire pushed back on a trend of expanding the nonsignatory related parties that can be swept into arbitration, says Laura Fontaine of Gruber Elrod Johansen Hail Shank LLP.

  • Crowdfunding For Legal Cases: 5 Trends Reshaping Justice

    Julia Salasky

    Most people have never had an opportunity to personally take part in a legal case that directly challenges laws or policies they don’t agree with. Now that crowdfunding is available for legal cases, people can engage directly with legal change in the community and be a check on the powerful, says Julia Salasky, CEO of CrowdJustice.

  • Opinion

    ABA Needs A New Model Legal Ethics Rule

    Kevin L. Shepherd

    Perhaps lost in the presidential post-election tumult was a report issued in late 2016 by an international body evaluating U.S. compliance with anti-money laundering and counter-terrorist financing standards. Considering repeated criticisms of the legal profession, the American Bar Association should seriously consider a new model legal ethics rule, says Kevin Shepherd of Venable LLP.

  • What Does Lateral Partner Success Look Like?

    Howard Flack

    In the final segment of his series on lateral recruitment, Howard Flack, a partner of Volta Talent Strategies LLC and former leader of the lateral partner recruiting team at Hogan Lovells, shares a number of factors law firms should consider when measuring lateral hire success.

  • Are Lateral Recruitment Opportunities Shaping Your Strategy?

    Howard Flack

    In the second installment of this series on lateral recruiting, Howard Flack of Volta Talent Strategies LLC challenges law firms to ask themselves whether business strategies are determining lateral hires — or vice versa.

  • Offshore Decommissioning Liability And Bankruptcy

    Edward Ripley

    It is more important than ever to prepare for disposal and environmental remediation of oil and gas infrastructure when it is no longer economically viable. But accounting for decommissioning obligations can turn into a game of “hot potato,” especially during bankruptcy proceedings. Edward Ripley and Eldy Roché of King & Spalding LLP discuss two important lessons regarding decommissioning liability of offshore installations.

  • Lateral Partner Hiring: Time To Look In The Mirror

    Howard Flack

    The surveys that report lateral partner hiring as more or less a 50-50 proposition keep being published, and yet the lateral partner market is as robust as ever. So, what are firms looking at to measure their success and justify the level of investment they continue to make in the lateral market? asks Howard Flack of Volta Talent Strategies LLC.