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Bankruptcy

  • August 21, 2018

    Puerto Rico Board Blames Short-Sighted Fixes For Debt Crisis

    The government of Puerto Rico contributed to the island’s crippling debt crisis by implementing short-term fixes instead of long-term solutions, and did not attempt to evade a constitutional debt limit, according to a 600-page report released by the federal board charged with rehabilitating Puerto Rico's finances.

  • August 21, 2018

    DC Circ. Ends Delta Pilots' Pension Suit

    A group of Delta Air Lines Inc. pilots can't collect $544 million from the Pension Benefit Guaranty Corp. over its alleged mishandling of their pension plan after Delta’s bankruptcy, the D.C. Circuit ruled Tuesday, saying the agency had no further obligation to the pilots after paying out their benefits.

  • August 21, 2018

    Claire's Senior Creditors Sue Oaktree Over Plan Opposition

    Senior secured creditors of bankrupt accessory retailer Claire’s Stores Inc. filed an adversary complaint Tuesday in Delaware saying second-lien creditor Oaktree Capital Management LP breached intercreditor agreements by trying to derail the debtor’s Chapter 11 plan and seeking to challenge the secured liens of other creditors.

  • August 21, 2018

    Ignition-Switch Case Count Below 1,000, GM Lawyers Report

    Lawyers for General Motors told a Manhattan federal judge at a conference on Tuesday that fewer than 1,000 individuals' claims remain in the long-running multidistrict litigation over the automaker’s dangerous ignition-switch defect, although it isn’t clear when the cases will finally wrap up.

  • August 21, 2018

    Ex-Fisker Auto Board Member Can't Escape Shareholder Suit

    A Delaware federal court Tuesday refused to dismiss a former Fisker Automotive board member from a shareholder suit accusing the company of lying about its shaky financial footing prior to its 2013 bankruptcy, but it did dismiss a company owned by the board member.

  • August 21, 2018

    Cambridge Analytica Agrees To Give Docs To Facebook Users

    The Chapter 7 trustee for scandal-plagued Cambridge Analytica reached a tentative deal in New York bankruptcy court Tuesday to hand over most of the documents in his possession to a group of Facebook users, who are suing the social media giant and the political consulting shop for allegedly misusing their personal data.

  • August 21, 2018

    Ex-Lehman Worker's Retaliation Suit 1 Day Late: 1st Circ.

    The First Circuit on Monday agreed to dismiss a tardy retaliation lawsuit filed against Lehman Brothers Inc. by a communications specialist who claimed she was fired in 2008 from the company's former Neuberger Berman unit for reporting that the subsidiary was falsifying information ahead of its bankruptcy.

  • August 21, 2018

    Ice Co. Investors Can't Sue Over Dividend, 3rd Circ. Says

    Investors in Canadian ice maker Arctic Glacier International Inc. are barred from pursuing claims that they are owed a dividend from the sale of assets under the company’s bankruptcy reorganization plan, because the plan included provisions shielding the business from such liability, the Third Circuit has ruled.

  • August 20, 2018

    Furniture Brands Trustee Worried By Heritage DIP Releases

    Proposed releases for bankrupt furniture maker Heritage Home Group in a final order for its post-petition financing package drew an objection Monday in Delaware from the liquidating trustee of former debtor Furniture Brands International Inc. because they may impair potential claim the trust has against Heritage.

  • August 20, 2018

    Insurer Can't Arbitrate $480M Garlock Asbestos Coverage Suit

    Safety National Casualty Corp. can’t arbitrate its claims that it doesn’t have to pay out a $5 million excess policy to help fund Garlock Sealing Technology’s $480 million asbestos settlement, after a North Carolina federal court declared an arbitration clause in the policy void on Monday.

  • August 20, 2018

    Gibson, Lender Say Claim Fight Can Wait Until Confirmation

    Bankrupt musical instrument maker Gibson Brands Inc. told a Delaware judge Monday that creditor GSO Capital agreed to put off a dispute over its claim until after the debtor's Chapter 11 plan is confirmed because the process for determining the exact amount of the claim would take too much time.

  • August 20, 2018

    Navillus Strikes Deal With Unions That Bankrupted It

    New York City construction heavyweight Navillus Tile Inc. has reached a deal with the unions that forced it into bankruptcy last year with a devastating $76 million judgment, paving the way for an exit from Chapter 11 as early as October, the concrete contractor says.

  • August 20, 2018

    Pacific Drilling Says Majority Shareholder OK'd Ch. 11 Plan

    Pacific Drilling SA announced Monday it has secured the approval of its majority shareholder for a Chapter 11 restructuring plan, putting the company on track to shed $3 billion in debt after more than a year of talks.

  • August 20, 2018

    Unregistered Brokers Sold Woodbridge Securities, SEC Claims

    The U.S. Securities and Exchange Commission accused five people and four companies Monday with allegedly selling retail investors hundreds of millions of dollars in unregistered securities of the now-bankrupt Woodbridge Group of Companies LLC, which collapsed last year after the SEC charged it with running a $1.2 billion Ponzi scheme.

  • August 17, 2018

    Bowles Rice, Insurer Resolve $41M Fight On Eve Of Trial

    Bowles Rice has resolved a $41 million fight with a title insurer stemming from a troubled coal plant build and averted a trial that was set to start Monday, according to a lawyer involved in the case, heading off what at least one expert said was a sizable threat to the firm in the face of its limited malpractice coverage.

  • August 17, 2018

    Claire's Retains Del. Ch. 11 Control, Beats Challenge

    Claire’s Stores Inc. retained exclusive control of its Chapter 11 on Friday, overcoming a move by creditor Oaktree Capital Management to loosen the debtor’s hand and improve prospects for a competing $1.5 billion Oaktree bid for the fashion accessories retailer.

  • August 17, 2018

    7th Circ. Backs Officers Of Defunct Bank Co. On $76M Refund

    The Seventh Circuit on Friday upheld the dismissal of a bankruptcy trustee's suit against the officers of a defunct bank holding company for keeping a $76 million tax refund instead of disbursing it to the company’s failing banks.

  • August 17, 2018

    Half-Built Fla. Resort's $39M Sale Gets Court Approval

    A Florida bankruptcy judge signed off Friday on a $39.1 million sale of a stalled Fort Lauderdale resort partially built with $30 million from the EB-5 immigrant investor visa program.

  • August 17, 2018

    Ex-Constellation CEO Says He Is Victim In Stock Fraud Suit

    The ex-CEO of bankrupt Constellation Healthcare Technologies Inc. Thursday asked a New Jersey federal court to dismiss claims he engaged in securities fraud, alleging he is the victim of an investor’s takeover scheme.

  • August 17, 2018

    PG&E Fire Liability Has Calif. Considering Ch. 11 Alternative

    As wildfires again ravage swaths of California forests in what has become a deadly summer ritual, the threat of a Pacific Gas and Electric Co. bankruptcy looms over state lawmakers who are hastily debating how to apportion liability for billions of dollars' worth of damage stemming from last year's infernos.

Expert Analysis

  • Tax Relief Under Tax Cuts And Jobs Act? Not For Debtors

    Scott Grossman

    The Tax Cuts and Jobs Act has been lauded as being generally beneficial to corporate taxpayers — but not so for corporate debtors, whose ability to reorganize and emerge under a Chapter 11 plan has been significantly and negatively impacted by the change, say Scott Grossman and Kenneth Zuckerbrot of Greenberg Traurig LLP.

  • Opinion

    BigLaw's Associate Salary Model Is A Relic Of A Bygone Era

    William Brewer

    Legal industry compensation practices are once again in the news as BigLaw firms continue to match the new high watermark of $190,000 for first-year associate salaries. The typical model of increasing associate salaries uniformly fails star associates, the firms they work for and, ultimately, the clients they serve, says William Brewer, managing partner of Brewer Attorneys & Counselors.

  • #MeToo At Law Firms And What We Can Do About It

    Beth Schroeder.JPG

    While some may say it’s ironic, it’s also embarrassing and enraging that the very industry that offers anti-harassment training, policies and counsel now finds itself the subject of #MeToo headlines. The American Bar Association recommendation that will bring about the greatest change is the call to provide alternative methods for reporting violations, says Beth Schroeder, chair of Raines Feldman LLP's labor and employment group.

  • How Will Weinstein Co. Bankruptcy Impact Accusers?

     Matthew LaGarde

    Due to the idiosyncrasies of American bankruptcy law, The Weinstein Company's recent bankruptcy filing could cause many of Harvey Weinstein’s accusers to receive pennies on the dollar relative to what they are owed under state and federal laws prohibiting workplace sexual harassment, say Matthew LaGarde and Jessica Westerman of Katz Marshall & Banks LLP.

  • Knowledge Lawyers Can Help Firms Stay Ahead Of The Curve

    Vanessa Pinto Villa

    In a profession notoriously averse to change, it should come as no surprise that there is skepticism about the value of having attorneys perform nonbillable tasks. But U.S. law firms have slowly begun to incorporate knowledge lawyers into their operations — and the trend is likely to continue, says Vanessa Pinto Villa of Hogan Lovells.

  • An Unprecedented Look Inside The FARA Unit

    Brian Fleming

    For close observers of the Foreign Agents Registration Act, the June 8 release by the U.S. Department of Justice of over 50 FARA advisory opinions was a watershed. These opinions offer an unprecedented glimpse into how the FARA Registration Unit interprets the law, say Brian Fleming and Andrew Herman of Miller & Chevalier Chtd.

  • Options For Failing Marijuana Cos. And Their Creditors

    Brett Theisen

    In the marijuana industry, there is ambiguity surrounding failing businesses because the product remains illegal under federal law. Brett Theisen of Gibbons PC identifies the credit risks associated with lending to, or working with, a marijuana business and highlights key state law solutions for both debtors and creditors.

  • Why Lawyers Shouldn't Accept Fees In Cryptocurrency: Part 2

    John Reed Stark

    The legal industry has already begun to feel the impact of anti-bribery and anti-money laundering requirements. When involved with cryptocurrency trading and remittance, law firms face more than the risk of being perceived as organizations that support money laundering practices, says John Reed Stark of John Reed Stark Consulting LLC.

  • A Growing Divide On Trademark License Rights In Bankruptcy

    Luke Barefoot

    The U.S. Supreme Court has been asked to clarify in the case of Tempnology the extent to which trademark license rights survive rejection in bankruptcy proceedings. In the meantime, licensees face continued uncertainty on their ability to use licensed trademarks following rejection, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Why Lawyers Shouldn't Accept Fees In Cryptocurrency: Part 1

    John Reed Stark

    Law firms are increasingly accepting cryptocurrency as payment for services. While this might seem innovative and forward-thinking, ironically it is much more of a throwback, says John Reed Stark of John Reed Stark Consulting LLC.