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

  • Asian-Americans Facing Challenges In The Legal Industry

    Goodwin Liu

    Asian-Americans are the fastest-growing minority in the legal profession, but recent studies confirm their underrepresentation among partners, prosecutors, judges and law school administrators. We must take action, say Goodwin Liu, associate justice of the California Supreme Court, and Ajay Mehrotra of the American Bar Foundation.

  • A BigLaw Ladies’ Guide To Becoming A 1st-Chair Trial Lawyer

    Sarah Rathke

    Judge Shira Scheindlin recently published an op-ed in The New York Times discussing the statistical truth that law firms have poor representation of female attorneys as first-chair trial lawyers. Backed by data collected by the New York State Bar Association, Judge Scheindlin’s observation is not merely anecdotal. But it doesn’t have to be inevitable, says Sarah Rathke, a partner and trial lawyer at Squire Patton Boggs LLP.

  • Using Powers Of Attorney In Fund Financing Transactions

    Zachary Barnett

    Powers of attorney offer lenders rights in connection with a fund’s ability to call capital contributions from investors. Drafted properly, POAs can provide a lender with the ability to take immediate action after a triggering event, such as an event of default, say attorneys with Mayer Brown LLP.

  • The Limitations Of Administrative Expense Claims

    Jason Binford

    The Delaware bankruptcy court's decision in the case of SRC Liquidation makes clear that administrative expense claim rights will be strictly construed to goods that are physically provided to the debtor. Clearly, concerned vendors should be wary of drop shipment, says Jason Binford of Gardere Wynne Sewell LLP.

  • 5 Tips To Ensure Proper Deposition Behavior

    Brian McDermott

    If conducted properly, depositions can be a powerful tool. At times, though, opposing counsel employ tactics to impede the examiner’s ability to obtain unfiltered, proper testimony from the deponent. By knowing and effectively using applicable rules and case law, however, deposing attorneys can take specific steps to combat these tactics, say attorneys with Ogletree Deakins Nash Smoak & Stewart PC.

  • How Bankruptcy Can Maximize Health Care Businesses' Value

    Adam Harris

    The consolidation of financially troubled companies can be effectively achieved through the bankruptcy sale process. For health care businesses in particular, bankruptcy sales can maximize the value of these businesses by providing buyers with flexibility and myriad protections, say Adam Harris and James Bentley of Schulte Roth & Zabel LLP.

  • Series

    Judging A Book: Tunheim Reviews 'Miles Lord'

    Chief Judge John Tunheim

    Litigator Roberta Walburn’s rollicking new book, "Miles Lord: The Maverick Judge Who Brought Corporate America to Justice," is a really good read — a fascinating story about a life lived in the heat of battle and usually at the edge of what might have been considered appropriate for a federal judge, says Chief U.S. District Judge John Tunheim of the District of Minnesota.

  • Practical Considerations For Litigating Against SPVs

    Matthew Ingber

    In the wake of the financial crisis, many lawsuits seeking to recover damages for alleged investment losses have been filed by special-purpose vehicles. Litigation practitioners will benefit from a practical consideration of the strengths and weaknesses of these entities in formulating an overall litigation strategy, say attorneys with Mayer Brown LLP.

  • Technology Assisted Review Can Work For Small Cases

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    For as long as e-discovery lawyers have been using technology assisted review, a belief has persisted that it cannot be used economically or effectively in small cases. But TAR can be highly effective in small cases, typically reducing the time and cost of a review project by 60 to 80 percent, say John Tredennick, Thomas Gricks III and Andrew Bye of Catalyst Repository Systems LLC.

  • New Sedona Principles Stress Information Governance

    Saffa Sleet

    The Sedona Conference Working Group's updated Sedona Principles provides a timely reminder that the legal industry needs to be thinking more seriously about the interconnectedness between e-discovery and information governance, says Saffa Sleet of FTI Consulting Inc.