Bankruptcy

  • April 11, 2017

    Obstruction Cleared From Republic Airways Ch. 11 Flight Plan

    Republic Airways Holdings Inc. got a clear path Monday to confirm its Chapter 11 reorganization plan after a New York bankruptcy judge overruled a Wells Fargo-affiliated creditor's objection to the airline’s proposal to substantively consolidate, given a proposed carveout remedies the concern.

  • April 11, 2017

    BBQ Distributor Rupari Hits Ch. 11, Wants To Hold Auction

    Barbecue meat product distributor Rupari Food Services filed for Chapter 11 protection on Monday in Delaware, saying it was hit hard by a rise in Chinese pork prices and planning to hold an auction with a unit of competitor Carl Buddig and Co. putting in a $26 million stalking horse bid.

  • April 10, 2017

    Feds Still Mum On Platinum Partners Leaks, Exec's Atty Says

    Counsel for a Platinum Partners executive accused of defrauding investors in a portfolio company told a New York federal judge Friday that if the government doesn’t soon provide information about apparent leaks that may have tainted the case, the court should intervene.

  • April 10, 2017

    Essar's Minn. Iron Ore Mine, Mill Project Draws 2nd Bidder

    A Virginia entrepreneur who acquired a bankrupt Midwestern iron ore processing business last year has set his sights on bankrupt former Essar Steel Minnesota LLC, with a last-minute offer to serve as Essar's minimum-bid stalking horse in its Delaware Chapter 11 sale.

  • April 10, 2017

    9th Circ. Nixes $1.2M Award To Ex-Heller Ehrman Atty

    A split Ninth Circuit on Monday reversed a decision ordering the now-defunct Heller Ehrman LLP to pay a former shareholder nearly $1.2 million, finding that a California bankruptcy court erred in determining the attorney was not a shareholder at the time of dissolution.

  • April 10, 2017

    Answers.com Gets Ch. 11 Plan OK To Cut $471M In Debt

    The private-equity-backed owner of Answers.com got the green light Monday from a New York bankruptcy court for its prepackaged Chapter 11 plan that will cut $471 million in debt and convert much of it to equity after its secured lenders voted to approve the plan.

  • April 10, 2017

    Defunct Recycling Co. Hits La. Firm With Malpractice Suit

    A now-defunct electronics recycling company on Friday accused Phelps Dunbar LLP, its former counsel, of failing to act in its best interests, telling a Louisiana federal judge that the firm instead operated at the behest of the company’s founders, who were also named in a $28 million investment fraud suit.

  • April 10, 2017

    Nigeria Award To Enron Unit In Contract Row Upped To $21M

    A D.C. federal judge on Friday tacked on about $2.6 million in exchange rate fluctuations and interest on fees to an arbitration win by a former Enron subsidiary against Nigeria in a breach of contract dispute, bringing the total award to $21.2 million and confirming the award.

  • April 10, 2017

    5th Circ. Tells Ex-CEO Fraudster To Pay Victim's Legal Tab

    In an unusual two-judge decision, the Fifth Circuit has reluctantly ordered a former shipping company CEO to pay about $5 million in legal fees General Electric Capital Corp. incurred in the bankruptcy resulting from the CEO's fraud.

  • April 10, 2017

    Claims Of Madoff Cotenants Correctly Denied, Judge Rules

    A New York bankruptcy judge has blessed the Madoff liquidator's decision to deny $392,000 in claims from parties who said they were customers of the failed investment firm but who, in reality, were account cotenants, saying Monday that the difference is key.

  • April 10, 2017

    RadioShack Cleared To Move Ahead With Ch. 11 Sale Plans

    RadioShack’s bankruptcy successor lined up terms for the sale of at least a third of its 1,500 remaining stores Monday, under a schedule that will cut off bids on April 17 and take the results to a hearing one week later.

  • April 10, 2017

    Madoff Trustee Looks To Narrow Testimony At Merkin Trial

    Looking to blunt the defenses of disgraced financier J. Ezra Merkin at an upcoming trial to claw back Bernie Madoff Ponzi scheme proceeds, the trustee for the fraudulent investment firm asked a New York bankruptcy court on Friday to bar various talking points that amount to “hearsay” testimony.

  • April 10, 2017

    IT Firm Ciber Opens Ch. 11 With $50M Stalking Horse Bid

    Information technology consulting company Ciber Inc. filed for Chapter 11 protection in Delaware on Monday with plans to sell its businesses in the U.S. and India for $50 million to French multinational IT consulting firm Capgemini SA.

  • April 10, 2017

    Optima Wins Approval For $1.75M Private Sale Of Building

    Bankrupt metal manufacturer Optima Specialty Steel received court approval Monday in Delaware for a private sale of a large commercial property it owns in Buffalo, New York, netting $1.75 million for its estate and some benefits from the new owner.

  • April 10, 2017

    Atty Seeks Halt To 'Real Housewives' Star's Malpractice Suit

    A former attorney for a onetime incarcerated star of “The Real Housewives of New Jersey” argued Monday that he properly moved before a New Jersey federal court to stay an order greenlighting a malpractice action against him without first asking a bankruptcy court to do so, saying such a request would have been impracticable.

  • April 10, 2017

    MF Global Insurers Say Coverage Fight Belongs In Bermuda

    A quartet of Bermuda insurance companies Friday told a New York bankruptcy court that their dispute with MF Global over providing payment to satisfy a global settlement belongs in arbitration in Bermuda, while MF Global argued the insurers need to post a $60 million bond to proceed.

  • April 10, 2017

    Apollo Cuts Hostess Stake With Public Offering

    Hostess Brands Inc. said Monday that Apollo Global Management LLC-affiliated funds will sell 18.7 million shares in a public offering that has the private equity giant reducing its stake in the snack maker to about 2.6 percent after helping purchase it out of bankruptcy.

  • April 7, 2017

    Ch. 15 Liquidators Say US Court Can't Nix Israeli Suit

    The court-appointed liquidators for Chapter 15 debtor and defunct Israeli electric car battery company Better Place Inc. asked the Delaware bankruptcy court Friday to reject a request from former directors to halt claims against them in Israel, arguing the U.S. court doesn't have jurisdiction over the action.

  • April 7, 2017

    BofA Lost $11M In Dewey's Last Days, Jury Hears At Retrial

    Bank of America lost $11 million when it sold off debt held by Dewey & LeBoeuf LLP before the megafirm crashed, a bank representative testified on Friday at the retrial of two former executives accused of defrauding the bank and others.

  • April 7, 2017

    Bankrupt Calif. Proton Says Sale Docs Will Disclose Dispute

    The bankrupt owners of a California cancer treatment center said Friday they plan to acknowledge a dispute with the site’s operators over a Delaware court-supervised attempt to sell the facility, but said the operators' rights were already subject to termination.

Expert Analysis

  • Financial Services In The 1st Month Of Trump Presidency

    Matthew Cutts

    In the first 30 days of his administration, President Donald Trump issued more than two dozen executive orders, memoranda and proclamations, several of which significantly impact the financial services industry. In addition, policymakers are turning their time and attention to reforming the nation’s financial services laws, with a “Choice Act 2.0” likely to be introduced soon, say Matthew Cutts and James Sivon of Squire Patton Boggs LLP.

  • The Mistakes Lawyers Make When Copying And Pasting

    Robert D. Lang

    We all recognize that cutting or copying text from earlier works and pasting it into new documents saves attorneys time. However, with this increase in speed comes an increased risk of making, or not catching, errors, says Robert Lang of D’Amato & Lynch LLP.

  • Opinion

    Calif. Court Gets Automatic Funding Disclosure Right

    Matthew D. Harrison

    Detractors of litigation funding have strained to characterize a recent decision from a California federal court as significant headway in their crusade against the litigation funding industry. However, in truth, this is a victory for both the industry and those in need of capital to bring meritorious claims against wrongdoers in an often prohibitively expensive legal system, say Matthew Harrison and Priya G. Pai of Bentham IMF.

  • Benefits Of Bringing Fraudulent Conveyance Actions In NY

    Dale A. Schreiber

    In the forthcoming Trumpian era of expected higher inflation and interest rates, insolvencies of highly leveraged public companies and large privately held concerns will likely increase exponentially. In scenarios involving limited liability entities organized or with principal places of business in New York, the New York Fraudulent Conveyance Act offers a uniquely creditor-friendly tool, say Dale Schreiber and Margaret Dale of Pro... (continued)

  • In Retrospect

    Relearning The Lessons Of Korematsu's Case

    Randy Maniloff

    Fred Korematsu’s U.S. Supreme Court case challenging President Franklin Roosevelt’s executive order that led to the incarceration of approximately 120,000 people of Japanese ancestry may sound like ancient history. However, Feb. 19 marks the 75th anniversary of the order's signing, and that it’s celebrating its diamond anniversary now is breathtaking timing, says Randy Maniloff of White and Williams LLP.

  • Health Republic's Curious Liquidation: Part 8

    James Veach

    Although Health Republic's liquidation is a matter of considerable public interest, the process has been far from transparent. Last fall, the National Association of Insurance Commissioners' discussion of consumer operated and oriented plans was closed to the public, in potential violation of the NAIC's policy statement on open meetings, says James Veach of Mound Cotton Wollan & Greengrass LLP.

  • How A General Counsel Should Think About AI: Part 2

    Bruce J. Heiman

    General counsels face the challenging task of understanding how companies can navigate the rules surrounding uses of artificial intelligence. To get smart on AI, general counsels must ask the right questions about areas such as human resources, intellectual property, liability and insurance, say Bruce Heiman and Elana Reman of K&L Gates LLP.

  • Health Republic's Curious Liquidation: Part 7

    James Veach

    In the seventh part of this series on Health Republic's liquidation process, James Veach of Mound Cotton Wollan & Greengrass LLP summarizes his recent attempt to appear as a friend of the court overseeing the liquidation.

  • How A General Counsel Should Think About AI: Part 1

    Bruce J. Heiman

    Though the Trump administration has yet to make an official statement regarding artificial intelligence, support for AI is consistent with its expressed desire to promote American business. As such, general counsel will inevitably have to navigate what big data and AI mean for compliance with current and future laws and regulations, say Bruce Heiman and Elana Reman of K&L Gates LLP.

  • What You Need To Know About 'Unrestricted Subsidiaries'

    Michael Friedman

    Investments in “unrestricted subsidiaries” are an exception to investment covenants and are being increasingly used in restructuring a company’s capital structure. Before purchasing any debt, distressed investors need to be mindful of what unrestricted subsidiaries are and how they may affect the overall credit of a company or debt recoveries, say attorneys with Chapman and Cutler LLP.