Bankruptcy

  • September 22, 2017

    SunEdison Slams 'Disgruntled' Investors' Appeal Over Ch. 11

    Aiming to shoot down an appeal stemming from its now-confirmed Chapter 11 bankruptcy plan, renewable energy giant SunEdison Inc. told a New York federal court this week that investors accusing the company of using an exit financing agreement to buy creditor support are improperly seeking to advance a “self-interested agenda.”

  • September 22, 2017

    Avaya Allows $40M Bankruptcy Claim To Settle Patent Suit

    Bankrupt telecom giant Avaya Inc. became the 14th company to settle allegations that it infringed an Ethernet patent held by Network-1 Technologies Inc., agreeing to allow a $40 million unsecured claim against the estate, according to papers filed in New York bankruptcy court on Thursday.

  • September 22, 2017

    Debt Lawyers Say CFPB Can't Ax $25M Free Speech Suit

    Two lawyers who say their livelihoods were destroyed by the Consumer Financial Protection Bureau’s crackdown on debt-relief firm Morgan Drexen Inc. told a California federal court Thursday that there is no good reason to dismiss their $25 million suit against the regulator.

  • September 22, 2017

    Kid Brands Trustee Wants Ch. 11 Converted Or Dismissed

    The federal bankruptcy watchdog has asked a New Jersey bankruptcy court to pull the plug on defunct children’s products manufacturer Kid Brands Inc., either by converting its Chapter 11 case to a Chapter 7 liquidation or by dismissing it altogether.

  • September 22, 2017

    Caesars Settles With Mississippi On $3M Claim In Ch. 11

    An Illinois bankruptcy judge on Thursday approved a state of Mississippi claim for $3.02 million in Caesars Entertainment Operating Co. Inc.'s Chapter 11 reorganization, giving final approval to the parties' settlement stemming from the state's original request for $26.95 million.

  • September 21, 2017

    Toys R Us Allowed To Continue Customer Rewards Programs

    Loyal customers of Toys R Us were given reassurance Thursday that the bankrupt retail giant will make good on gift cards and other consumer-friendly deals after it received court permission to maintain its customer programs, shortly after gaining access to $2.2 billion in post-petition financing.

  • September 21, 2017

    SEC Seeks No Penalty From IT Firm Over Execs' Alleged Fraud

    A bankrupt information technology company whose former top executives face criminal fraud charges for allegedly plundering their company’s accounts and trying to hide it won’t have to pay a cent under a settlement filed by the U.S. Securities and Exchange Commission in Illinois federal court on Wednesday.

  • September 21, 2017

    WaMu Trust Says No Sanctions For Unpaid Contingency Fee

    The liquidating trustee of long-bankrupt Washington Mutual Inc. has hit back against Grant Thornton LLP’s bid for sanctions over an unpaid $5 million contingency fee, telling a Delaware bankruptcy judge the fee was only approved because the firm lied to the court at an earlier hearing.

  • September 21, 2017

    Lehman Faulty-Mortgage Suit Must Wait, FDIC Says

    The Federal Deposit Insurance Corp. asked a New York bankruptcy court Thursday to hit the snooze button on a suit filed by Lehman Brothers against Guaranty Bank over the sale of shoddy mortgages, saying Lehman must go through an administrative claims process first.

  • September 21, 2017

    Rothstein Feeder Fund Slaps Insurance Broker With $63M Suit

    The liquidating trustee for an investment fund that fed into jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme sued Harden & Associates on Wednesday, claiming the insurance broker's negligence led the fund's insurers to deny coverage after the scheme collapsed.

  • September 21, 2017

    MF Global Asks To Appeal Arbitration Order In Insurer Row

    MF Global asked Wednesday for permission to appeal a New York bankruptcy court's order requiring the defunct brokerage to arbitrate in Bermuda a coverage dispute with its excess insurer, Allied World, saying the decision involves a controlling issue of law and conflicts with two appellate court rulings.

  • September 21, 2017

    Optima Steel Submits Last-Minute Changes To Ch. 11

    Caught short by a parent company’s failure to complete a $200 million post-confirmation Chapter 11 investment, Optima Specialty Steel Inc. on Wednesday launched a modified reorganization plan that erases the corporate parent’s equity.

  • September 20, 2017

    Toys R Us Bankruptcy Prospects Depend On Big Holiday Sales

    While the future for Toys R Us Inc. looks uncertain now, the company’s performance over the crucial holiday season will go a long way toward determining its long-term prospects, with experts pointing to the timing of and rationale for the company's bankruptcy filings this week.

  • September 20, 2017

    Holland & Knight Inks $5M Deal To End Malpractice Claims

    Holland & Knight LLP has agreed to pay $5 million to escape a malpractice suit brought by the bankruptcy trustee for a Miami hotel condominium project over its alleged failure to tell one of the condo project owners about the other’s planned fraud.

  • September 20, 2017

    Greenberg Traurig Pays $9.8M To Settle Lender's Claims

    Greenberg Traurig LLP has agreed to pay $9.75 million to settle malpractice claims over its work for defunct loan originator and Ponzi scheme vehicle Mortgages Ltd. more than a decade ago, provided an Arizona bankruptcy court signs off on the deal.

  • September 20, 2017

    Gordon Ramsay Must Give Up Docs On Caesars Restaurants

    An Illinois bankruptcy judge Wednesday ordered celebrity British chef Gordon Ramsay to turn over documents covering plans for restaurants with Caesars, saying that the television personality is at the center of a dispute involving the casino giant as it nears the end of its Chapter 11 saga.

  • September 20, 2017

    2nd Circ. Overturns Ex-DHB CEO's Restitution, Keeps Bail

    The Second Circuit on Wednesday vacated a securities fraud conviction against the deceased former CEO of military body armor maker DHB Industries Inc. and let his estate off the hook for $91 million in restitution, but found his family can’t get back funds that were forfeited after the government found he was hiding assets.

  • September 20, 2017

    DOJ Says Madoff Victim Payouts To Begin By Year's End

    The U.S. Department of Justice said in a letter to U.S. Rep. Vern Buchanan, R-Fla., that victims of fraudster Bernie Madoff would begin to receive payouts from the department's Assets Forfeiture Fund by the end of the year, the congressman announced Wednesday.

  • September 20, 2017

    Madoff Trustee Can Proceed With $2.2M Clawback Suit

    The trustee for Bernie Madoff’s defunct investment firm can proceed with a suit that seeks to claw back $2.2 million withdrawn by an investor before the $65 billion Ponzi scheme imploded, a New York bankruptcy court ruled on Wednesday.

  • September 20, 2017

    Adams Resources Gets Nod For Additional Well Interest Sale

    Bankrupt oil and gas driller Adams Resources Exploration Corp. received court approval Wednesday in Delaware for the sale of two additional well interests after an earlier sale generated proceeds of more than $5 million.

Expert Analysis

  • A Possible Pathway Out Of The Stern V. Marshall Maze

    Benjamin Feder

    PEM Entities v. Levin, which the U.S. Supreme Court will hear next term, potentially could provide the court with a coherent rationale to start resolving the uncertainty it created six years ago in Stern v. Marshall regarding the constitutional authority of bankruptcy courts, says Benjamin Feder of Kelley Drye & Warren LLP.

  • Planning A Legal Career With A Future Relocation In Mind

    Jacqueline Bokser LeFebvre

    Lawyers move to New York City to work on some of the most sophisticated work the legal market has to offer. This exposure and experience is an amazing asset and many of the skills developed will make associates very marketable in the event they consider relocating to another market. However, this isn’t always the case, says Jacqueline Bokser LeFebvre of Major Lindsey & Africa.

  • 4 Female Perspectives On BigLaw Leadership

    Regina Pisa

    Only a handful of the largest U.S. law firms are led by women. Here, in their own words, are perspectives from Shook Hardy & Bacon Chair Madeleine McDonough, Crowell & Moring Chair Angela Styles, Morgan Lewis & Bockius Chair Jami Wintz McKeon and Goodwin Procter Chair Emeritus Regina Pisa.

  • The Elephant In The Room: Advancing Women To Partnership

    Anusia Gillespie

    Despite more focus and investment, the numbers continue to show little progress in advancing women to the top tiers of firm leadership. Considering the irreversible nature of the transformation of the market for top talent, it is time to start experimenting and innovating from the core, rather than from the periphery, say Anusia Gillespie and Scott Westfahl of Harvard Law School.

  • How Midsize Law Firms Can Minimize Cybersecurity Threats

    K. Stefan Chin

    It can be challenging for midsize law firms to develop an enterprise cybersecurity program that mitigates the eminent threat of data breach and meets the regulatory and compliance requirements of the firm and its clients. This challenge becomes daunting when considering the steady rise in client audits, say K. Stefan Chin of Peckar & Abramson PC and John Sweeney of Logicforce.

  • Is Bankruptcy An Option For Ancillary Marijuana Businesses?

    Patricia Heer

    The director of the U.S. Trustee Program recently proclaimed before a congressional subcommittee that debtors with assets or income derived from marijuana may not proceed through the bankruptcy system. However, this limitation has not been addressed, let alone settled, with respect to businesses that are ancillary to marijuana cultivators and dispensaries, says Patricia Heer of Duane Morris LLP.

  • Health Republic’s Curious Liquidation: Part 12

    James Veach

    Health Republic's liquidator has stated that claimants will not be paid until Health Republic's disputed claims against and from the federal government are resolved. Policyholders and other creditors should not be told to wait through a claims adjudication process only to find that potentially barely any money may remain to pay even a small portion of approved claims, says James Veach of Mound Cotton Wollan & Greengrass LLP.

  • Turning Bust To Boom: P3 Initiatives Under PROMESA

    Richard Cooper

    Normally, investors and lenders to public-private partnerships avoid pursuing projects where the government’s ability to provide financial, operational and logistical support is subject to considerable uncertainty. But the tools provided by the Puerto Rican Oversight, Management and Economic Stability Act can help mitigate some of these risks and even facilitate future projects in Puerto Rico, say attorneys with Cleary Gottlieb Ste... (continued)

  • Weekly Column

    Innovating For Wise Juries: Matching Experts

    Stephen Susman

    In the penultimate installment of this series, Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project answer a question on many legal analysts’ minds: What if both sides’ expert witnesses sat in a hot tub discussing the case while a jury watched?

  • The Role Of Public Relations In Municipal Restructuring

    Dan Zacchei

    Debtors and creditors in municipal restructuring situations need to accept that engaging with policymakers, shaping the public narrative and mitigating misleading headlines all have a significant impact on the outcome, says Dan Zacchei of Sloane & Co.