Bankruptcy

  • November 16, 2017

    PBGC Blasts Pilots' Fiduciary Breach Claims At DC Circ.

    The Pension Benefit Guaranty Corp. asked a D.C. Circuit panel Thursday to quash a breach of fiduciary duty claim from former Delta Air Lines Inc. pilots who say the government agency intentionally miscalculated their benefits when it took on their pension commitments as part of the airline’s 2016 bankruptcy.

  • November 16, 2017

    TerraVia's Ch. 11 On Track For January Confirmation Date

    Bankrupt algae-based food maker TerraVia Holding Inc. received interim approval Thursday in Delaware for its Chapter 11 plan disclosures so it can begin soliciting creditors for votes on the plan, which is up for confirmation in January.

  • November 16, 2017

    Caesars Drops $1.7B On Indiana Gaming Operator

    Caesars Entertainment Corp. said Thursday it will acquire Centaur Holdings LLC in a $1.7 billion cash deal that adds Indiana’s Hoosier Park Racing & Casino and Indiana Grand Racing & Casino to the hospitality giant’s portfolio, a month after Caesars’ operating company emerged from bankruptcy.

  • November 16, 2017

    Fyre Fest Trustee Seeking Wide Probe Into Ja Rule, Others

    The court-appointed liquidation trustee for the production company behind the infamous Fyre Festival asked a New York bankruptcy court on Thursday to let him subpoena the event's scandal-plagued co-founders, including rapper Ja Rule, alongside its former lawyers, employees and any financial institutions it may have dealt with.

  • November 16, 2017

    Toys R Us Asks For $100M In Incentives For Execs, Workers

    Toys R Us Inc. on Wednesday asked a Virginia bankruptcy court for permission to pay its employees up to $100 million in bonuses, saying the incentives are needed to navigate the company through a Chapter 11 holiday season.

  • November 16, 2017

    Fisker Buyer Urges Del. Bankruptcy Court To Toss Stock Suit

    Wanxiang Clean Energy USA LLC and the firm it spun off after buying bankrupt electric carmaker Fisker Automotive urged the Delaware bankruptcy court Thursday to throw out a lawsuit from the liquidating trust challenging an equity sale it says was designed to dilute its stake in the spinoff.

  • November 16, 2017

    Kasowitz Bows Out Of $28M Ampal Adversary Case

    Kasowitz Benson Torres LLP received permission Thursday to bow out of adversary litigation in the bankruptcy of energy investment holding company Ampal-American over a $28 million judgment linked to a project to make ethanol from sugarcane in Colombia.

  • November 16, 2017

    3rd Circ. Won't Revive RICO Claims Over Allied Bankruptcy

    The Third Circuit on Wednesday found that investment firm Yucaipa Cos. Ltd. had no standing for its $170 million RICO suit claiming two hedge funds conspired to wipe out its debt claim against bankrupt car hauler Allied Systems Holdings Inc.

  • November 16, 2017

    Willkie Farr Adds Ex-Kirkland Restructuring Partner

    A former Kirkland & Ellis LLP partner, whose clients have included Linn Energy in its bankruptcy case and first-lien lenders in Hercules Offshore Inc.’s Chapter 11 liquidation, has joined Willkie Farr & Gallagher LLP in New York.

  • November 15, 2017

    Motorsport Co. Files For Ch. 11, Aiming To Clear $300M Debt

    Velocity Holding Company Inc. and its 18 powersports industry subsidiaries filed for Chapter 11 bankruptcy in Delaware on Wednesday, declaring liabilities of more than $100 million in a comprehensive recapitalization aimed at eliminating $300 million in debt.

  • November 15, 2017

    Puerto Rico Creditors Denied Bid For Separate Debt Probe

    There will be only one investigation into the origins of Puerto Rico's crippling debt crisis, a federal judge ruled Wednesday, shutting down a creditor committee's effort to conduct its own probe into some of the island's biggest banks but saying their input should be part of a federal board's ongoing inquiry.

  • November 15, 2017

    Altegrity Floats $4M Okla. Tax Commission Deal In Ch. 11

    Reorganized security and information firm Altegrity Inc. sought Delaware bankruptcy court clearance Wednesday to settle $24.9 million in disputed tax claims with Oklahoma for $4 million, after a yearslong series of state and bankruptcy court proceedings.

  • November 15, 2017

    CST Industries' $92M Stalking Horse Sale Gets Go-Ahead

    After more than a day of negotiations among bankrupt steel tank maker CST Industries Holding Inc., its creditors and its proposed buyers, a Delaware judge gave his approval Wednesday for a $92.9 million sale transaction that resolved objections from unsecured lenders.

  • November 15, 2017

    Jurisdiction Question Punted In Exelco Bankruptcy Fracas

    Bankrupt diamond cutter Exelco NV will have to wait a few weeks to learn the fate of competing insolvency proceedings in the United States and Belgium after a Delaware judge on Wednesday declined to decide issues relating to which jurisdiction has the authority to administer the case.

  • November 15, 2017

    Sexual Health Chain Peekay Wins Ch. 11 Plan Confirmation

    A Delaware bankruptcy judge agreed Wednesday to confirm sexual health and wellness retailer Peekay Acquisition Inc.’s Chapter 11 plan, which centers on a $30 million sale to senior lenders, commending the attorneys for running an efficient and “very, very positive” case.

  • November 15, 2017

    Westinghouse, Ex-Workers Told To Consolidate Complaints

    A New York bankruptcy judge on Wednesday told Westinghouse Electric Co. LLC and former employees at its canceled project to build two new nuclear reactors in South Carolina to come up with a plan to consolidate the former workers' suits against the company over lack of sufficient notice of the project's closure.

  • November 15, 2017

    REIT Investors Defend Suit Over Board Probe Of Loan Loss

    Shareholders of the real estate investment trust Resource Capital Corp. who say the company’s board is responsible for a $41 million loss on a loan backed by Puerto Rican hotels urged a New York federal judge on Tuesday not to dismiss their suit, saying that when the board looked into the loss it had a “predetermined outcome” in mind: to let directors off the hook.

  • November 15, 2017

    Lenders In $25B EFH Loan Row Dispute Priority At 3rd Circ.

    An attorney for Marathon Asset Management LP and several Polygon Global Partners funds told the Third Circuit on Wednesday that loan documents gave his clients priority on what remains of a $1.25 billion portion of a $24.5 billion loan that is part of the massive Energy Future Holdings Corp. case.

  • November 14, 2017

    Puerto Rico Gov. Touts Sovereignty In $95B Aid Request

    The governor of Puerto Rico was ardent Tuesday in telling members of Congress that the hurricane-weary and debt-ridden territory will be a model of transparency as it seeks to receive nearly $95 billion in federal aid to help chart its own course on the path to recovery.

  • November 14, 2017

    CST Closes In On Sale Resolution With Buyer And Creditors

    Bankrupt steel storage tank maker CST Industries Holdings Inc. told a Delaware judge Tuesday that after a daylong hearing on its proposed sale to a stalking horse bidder, it was close to a deal that would resolve the objections of unsecured creditors and pave the way for a consensual transaction.

Expert Analysis

  • Toys R Us Faces Chapter 11 Challenges

    Stephen Selbst

    Toys R Us recently filed for Chapter 11 bankruptcy, citing the impact of e-commerce as a major factor. Other recent retail bankruptcies underscore how difficult it is for retailers to recover from a bankruptcy filing, and creditors must be prepared, says Stephen Selbst of Herrick Feinstein LLP.

  • The Role Legal Finance Can Play In Firm Year-End Collections

    Travis Lenkner

    Payment collection delays have caused law firms to seek new options, one of which is litigation finance. In this context, litigation finance can offer alternative avenues to firms as they approach the end of a fiscal year or partnership distribution dates, says Travis Lenkner of Burford Capital LLC.

  • 'Per-Doc' Pricing Can Improve Document Review

    file folder

    Imagine going to a restaurant and ordering your steak medium-rare. The steak arrives burned. You expect the kitchen to bring you another one properly done, right? And you don’t expect to pay for two steaks, do you? Paying a vendor for document review should be no different, says Lisa Prowse, an attorney and vice president at e-discovery firm BIA Inc.

  • Finding The Unicorn In Lender Liability Litigation

    Jerry Blanchard

    Investors frequently talk about trying to find the next unicorn, that small startup company that is going to turn into a billion-dollar valuation. The New Jersey district court's recent decision in PNC Bank v. Star Group offers debtors counsel hope that a unicorn has finally arrived in the lender liability context, says Jerry Blanchard of Bryan Cave LLP.

  • Why A Hanjin Fleet Came To Hong Kong

    Dean Young

    The demise of Korea’s Hanjin Shipping Co. Ltd. was the largest bankruptcy of a container line in history, and recently resulted in the biggest ever court sale of ships in Hong Kong, totaling over $600 million. Hong Kong’s legal system makes it an ideal venue for ship mortgage enforcement, say attorneys with Mayer Brown JSM.

  • A Guide To The Executive Branch Official Nomination Process

    Adam Raviv

    Although the Trump administration has completed the vetting and confirmation of a cabinet and White House staff, thousands of senior positions remain unfilled throughout the executive branch. More than ever, people selected for those posts find themselves under close scrutiny, say Adam Raviv and Reginald Brown of WilmerHale.

  • Cautionary Tales For Landlords Of Bankrupt Tenants

    Marshall Hogan

    If the past year is any indication, landlords of bankrupt retail tenants may want to be especially mindful of Section 502(b)(6) of the Bankruptcy Code, which may limit their ability to recover certain damages, says Marshall Hogan of Foley & Lardner LLP.

  • How Collaboration Is Changing Inside Some Law Firms

    Chris Cartrett

    In our recent survey of business of law professionals, nearly half of respondents said that who they collaborate with, inside their law firm, is different from five years ago, says Chris Cartrett of legal software provider Aderant.

  • Uses And Possible Misuses Of 3rd-Party Releases In Ch. 11

    Richard Epling

    The benefits of third-party releases to proponents of debt restructuring are obvious, but the release process also is subject to abuse or overreaching, and there are no clear boundaries beyond which plan proponents may not go, says Richard Epling, a retired partner at Pillsbury Winthrop Shaw Pittman LLP.

  • Opinion

    Dealing With Difficult Lawyers

    Alan Hoffman

    Some lawyers tend to be overly aggressive, regarding law practice as a zero-sum game in which there are only winners and losers. The best response is to act professionally — separating the matter at hand from the personalities. But it is also important to show resolve and not be vulnerable to intimidation, says Alan Hoffman of Husch Blackwell LLP.