Bankruptcy

  • July 28, 2017

    Trustee Seeks Info On Flight To France Purchased By Mogul

    The trustee in the massive personal bankruptcy of a real estate developer wants Air France to turn over documents relating to a woman who visited him abroad, and has asked a New York bankruptcy court to order the handover.

  • July 28, 2017

    Retail Resuscitation A Race Against The Clock In Amazon Era

    As distressed brick-and-mortar retailers continue to feel the pinch of a shift in consumer habits, their ability to successfully reorganize in fast-paced bankruptcy proceedings is no longer a sure thing, experts say, and increasingly a retailer's fate is determined in negotiations with creditors before filing.

  • July 28, 2017

    Bids For More Puerto Rico Creditor Committees Under Fire

    The U.S. bankruptcy watchdog Friday asked a Puerto Rican federal court to deny requests to expand the creditors’ committees in the island’s ongoing restructuring case, saying one request was unnecessary and the other not allowed.

  • July 28, 2017

    True Religion Landlords Balk At Lease Rejection Proposal

    True Religion Apparel Inc.’s landlords took issue Friday in Delaware bankruptcy court with the way the retail chain wants to dump leases at its dozens of stores across the country, arguing that the debtor’s deadline could reject the leases before it hands over the keys, flouting bankruptcy rules.

  • July 28, 2017

    Rent-A-Wreck DIP Loan Approved, With Pledge Not To Tap It

    Bankrupt secondhand car rental company Rent-A-Wreck of America Inc. received court approval Friday in Delaware for $100,000 in post-petition financing after it pledged not to tap into the funding unless it was absolutely necessary.

  • July 28, 2017

    Toshiba To Pay $2.2B For Unit's Exit From SC Nuke Reactors

    Westinghouse Electric Co. parent company Toshiba Corp. will pay nearly $2.2 billion to rid itself of obligations on two unfinished nuclear reactors at the Summer Nuclear Station in Jenkinsville, South Carolina, according to a statement released Thursday by the project owners.

  • July 27, 2017

    National Events Creditor Nabs Remaining Assets, Ch. 7 Looms

    The messy bankruptcy of ticket reseller and alleged Ponzi scheme vehicle National Events Holdings LLC entered a new phase Thursday, as a New York bankruptcy court finally let its largest creditor collect on the company’s $730,000 in remaining assets, opening the door for a Chapter 7 trustee to take over.

  • July 27, 2017

    Payless Shoes To Walk Out Of Ch. 11 After Plan Approval

    A Missouri bankruptcy judge filed an order of approval Wednesday giving discount shoe retailer Payless ShoeSource Inc. the green light to execute its proposed reorganization plan and emerge from Chapter 11 with its own discount on nearly $850 million in prepetition funded debt, shaved down to just over $400 million.

  • July 27, 2017

    Millennium Labs Judge Grills Sides On 3rd-Party Releases

    The Delaware bankruptcy judge presiding over Millennium Labs' Chapter 11 case on Thursday grilled the debtor and a creditor who appealed the 2015 confirmation order over what constitutional authority allows liability releases granted without creditor consent, delving into an issue that could have far-reaching implications for bankruptcy courts’ power.

  • July 27, 2017

    U Of Puerto Rico Plan Trustee Wants Clarity On Asset Transfer

    The trustee for a benefits plan for University of Puerto Rico employees has asked the judge overseeing the territory's landmark restructuring case if it can legally transfer fund assets, as the school has demanded, after it declined to distribute $33 million in emergency early-withdrawal requests due to the island’s insolvency.

  • July 27, 2017

    Bank Can Seize $2.3M More In Defunct Co.'s Assets: 6th Circ.

    The Sixth Circuit on Thursday found that Huntington National Bank had correctly valued a foreclosed property and was entitled to $2.3 million more of the owner's assets to make up the amount it was owed.

  • July 27, 2017

    Bostwick Creditors Say Plan Administrator Is Conflicted

    The official committee of unsecured creditors in the Chapter 11 case of cancer testing firm Bostwick Laboratories Inc. objected to the company’s proposed plan, saying that the suggested plan administrator is hopelessly conflicted with Bostwick’s largest equity holder.

  • July 27, 2017

    2nd Circ. Denies Ex-Lehman Trader's Bid For $85M Bonus

    The Second Circuit on Thursday declined to make Lehman Brothers pay a former trader $85 million, saying he has already been paid most of the money the bankrupt brokerage owed him.

  • July 27, 2017

    Paragon Drilling Units Get Nod To Use Cash Collateral

    A group of offshore drilling subsidiaries of the reorganized Paragon Offshore LLC received court approval Thursday in Delaware to use cash collateral to fund their new Chapter 11 cases after reaching consensus with the United States trustee and the owners of the debtors’ drilling rigs.

  • July 26, 2017

    Essar Judge Sidelines Fight Over IRS' $9M Debt Hunt

    Facing a potentially needless fight over bankruptcy court power to block the IRS' pursuit of an Essar Steel executive for a $9 million company tax debt, a Delaware judge steered the dispute into a brief limbo Wednesday, indicating that time could resolve the issue.

  • July 26, 2017

    Ticket Co. 'Insider' Ripped For Payout Bid Amid Ponzi Claims

    The U.S. trustee and several unsecured creditors of defunct ticket reseller and suspected Ponzi scheme vehicle National Events Holdings LLC objected to a bid by the company’s minority owner to pocket proceeds from the sale of NEH’s remaining ticket inventory, saying it's unclear if the “insider” was complicit in the alleged scheme.

  • July 26, 2017

    EFH Creditor Gets More Time To Top Berkshire's $9B Sale Bid

    The Delaware bankruptcy judge presiding over Energy Future Holdings Corp.'s Chapter 11 on Wednesday gave its largest creditor more time to come up with a topping offer to Berkshire Hathaway's $9 billion sale bid, but did not extend the timeline beyond the point when Warren Buffet's conglomerate says it would walk.

  • July 26, 2017

    Katy Creditors Challenge Secured Debt Claims In Sale Deal

    The official committee of unsecured creditors in the Chapter 11 case of Katy Industries Inc. filed an adversary complaint Tuesday challenging the validity of the company's second-lien debt and its lender's purchase of Katy's assets using a credit bid on those secured claims.

  • July 26, 2017

    SquareTwo Fights Bids To Open Up Class Action Cases

    SquareTwo Financial Services Corp. on Tuesday asked a New York bankruptcy court to deny requests to lift its Chapter 11 litigation stay for a pair of suits alleging illegal debt collection practices, saying there is no money available for the plaintiffs.

  • July 26, 2017

    CEO Accuses Prosecutor Of Using Fraud To Get Guilty Plea

    The former CEO of defunct bottling company Le-Nature's Inc., who pled guilty in 2011 to defrauding banks and investors out of $660 million and was sentenced to 20 years in prison, attempted Tuesday in Pennsylvania federal court to withdraw his plea by accusing a U.S. Department of Justice lawyer of defrauding the court.

Expert Analysis

  • Monthly Column

    Gray Matters: We Feel, We Decide

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    Despite legal education training and the focus on logic and reason by the courts, lawyers address emotional issues on a daily basis — albeit more indirectly. But a shift to consciously and strategically addressing emotions gives us a powerful tool to help our clients reach faster, better decisions, say dispute resolution experts Robert Creo and Selina Shultz.

  • Opinion

    Justice Kennedy's Moderating Influence On The High Court

    Nan Aron

    The guessing game around Justice Anthony Kennedy’s possible retirement is reaching a crescendo. Yet the speculation does more than fuel bookmakers’ odds. It draws attention to his pivotal role as the court’s swing vote, says Nan Aron, president of Alliance for Justice.

  • Why Likes And Retweets Are Worth Protecting In Bankruptcy

    Victoria Cioppettini

    Bankruptcy counsel armed with knowledge about how to leverage the potentially lucrative asset of a company’s user-generated content — testimonials, reviews, likes, retweets, shares and other customer-driven communications — will be able to maximize the value of the company, defend litigation without spoliation of evidence, and help the corporation achieve an orderly reorganization, say Victoria Cioppettini and Susan Usatine of Cole Schotz PC.

  • Weekly Column

    Innovating For Wise Juries: Juror-Posed Questions

    Roy Futterman

    One way to combat juror confusion and boredom is to allow jurors to ask witnesses questions. No federal evidentiary or court rule prohibits it, and every federal circuit court to address the practice has held it permissible, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.

  • What Lenders Must Know About The FSMA: Part 2

    Breia Schleuss

    In the concluding part of this primer on the Food Safety Modernization Act, Breia Schleuss and Rachael Dettmann Spiegel of Faegre Baker Daniels LLP discuss the FSMA’s intentional adulteration rule, foreign supplier verification program and produce safety rule, and how they may affect secured lenders.

  • What Lenders Must Know About The FSMA: Part 1

    Breia Schleuss

    In the first part of this two-part series offering practical advice for lenders looking to understand the Food Safety Modernization Act, Breia Schleuss and Rachael Dettmann Spiegel of Faegre Baker Daniels LLP analyze the components addressing preventive controls for human and animal food and sanitary transportation.

  • 6 Things Every Accounts Receivable Buyer Should Know

    Massimo Capretta

    Over the past several years, nonrecourse receivables financing has been embraced by many major financial institutions and nonbank investors in the U.S. market. Attorneys with Mayer Brown LLP outline some of the legal elements any prospective purchaser should be aware of before a purchase.

  • Tips For Complying With ABA’s New Encryption Guidance

    Nick Holda

    Last month, the American Bar Association published revised guidance regarding an attorney’s duty to protect sensitive client material in light of recent high-profile hacks. The first step in compliance is understanding how your data is being stored and accessed. There are three key questions you should ask your firm’s information technology staff and/or external solution vendors, says Nick Holda of PreVeil.

  • A Closer Look At Midland Funding V. Johnson

    Phoebe Winder

    The U.S. Supreme Court's ruling in Midland Funding v. Johnson is certainly a win for creditors — especially those that purchase distressed debt and participate in bankruptcy proceedings. Yet, a closer analysis of the majority opinion reveals a number of issues meriting careful consideration, say attorneys with K&L Gates LLP.

  • Puerto Rico Fiscal Reform: The End Of The Beginning

    Bradley Wendt

    Puerto Rico's recent petition for court protection created the largest municipal bankruptcy in U.S. history. Here, Bradley Wendt of Charles River Associates reviews the legislative process leading to the filing for court protection and analyzes the dominant debt restructuring issues being considered by the court and stakeholders.