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Bankruptcy

  • February 15, 2019

    The $1B Question: Can Puerto Rico Afford Its Bankruptcy Bills?

    Law firms and other professional service providers are seeking more than $300 million in bills for Puerto Rico’s unprecedented restructuring -- a figure that is eventually expected to surpass $1 billion. Some local attorneys are questioning the costs. (This article is part of a series on how the island’s legal industry is rebuilding after Hurricane Maria).

  • February 15, 2019

    Puerto Rico’s Law Firms Find Their Footing After Disaster

    Out of disaster comes opportunity. That is what the corporate legal community of Puerto Rico found after Hurricane Maria. But for many attorneys, the recovery is personal, too. (This article is part of a series on how the island’s legal industry is rebuilding after Hurricane Maria.)

  • February 15, 2019

    Milbank Beats Trustee Objection To Rep Gymboree In Ch. 11

    Milbank Tweed Hadley & McCloy LLP can serve as counsel for children's clothing retailer Gymboree Group Inc. as it looks to liquidate most of its business in Chapter 11, a Virginia bankruptcy judge ruled Friday, finding the firm is not conflicted simply because it represents Gymboree creditors in other matters.

  • February 15, 2019

    Puerto Rico Fed Board Was Illegally Appointed: 1st Circ.

    The federal board charged with overseeing Puerto Rico’s financial overhaul and addressing its debt crisis was unconstitutionally appointed and must either be confirmed by the U.S. Senate or replaced in accordance with the law within the next 90 days, the First Circuit ruled Friday.

  • February 15, 2019

    Sears Creditors May Probe Sale Of $900M In Debt To Cyrus

    Creditors of Sears Holding Corp. were given the green light on Friday to investigate the bankrupt retailer's sale of $900 million in intercompany debt to a major lender, with a New York bankruptcy court approving requests to issue a slew of subpoenas and conduct discovery.

  • February 15, 2019

    2 Energy Cos. Must Face $14B Suit From Del. Ch. 11 Trustee

    A Delaware bankruptcy judge refused to dismiss a Maxus Energy Corp. Chapter 11 trustee suit on Friday seeking as much as $14 billion in fraudulent transfer and alter ego liability damages against Repsol SA and Argentina-based YPF SA.

  • February 15, 2019

    Wells Fargo Wants Quick OK On Samuels Jewelers Credit Bid

    Wells Fargo told a Delaware bankruptcy judge Friday that its $16 million credit bid for specialty retailer Samuels Jewelers Inc.’s assets should be approved quickly as the debtor is in default under the bank’s post-petition lending facility and no other bidders have emerged.

  • February 15, 2019

    Ex-Vinson & Elkins Atty Joins Pillsbury In NY

    Pillsbury Winthrop Shaw Pittman LLP has added a former Vinson & Elkins LLP commercial litigator to its New York City office as a partner.

  • February 15, 2019

    Sprawling $1B Platinum Case Finally Going To Trial

    The $1 billion fraud case against four insiders at failed hedge fund manager Platinum Partners is going to trial in Brooklyn on Tuesday, setting up a courtroom showdown two years in the making.

  • February 15, 2019

    Whiteford Taylor's Bankruptcy Team Adds Veteran In Delaware

    Globally recognized bankruptcy practitioner Marc Abrams has joined Whiteford Taylor & Preston LLP’s Wilmington, Delaware, office, bringing his 40 years of experience in corporate restructuring and cross-border insolvency proceedings back to The First State, the firm announced Monday.

  • February 15, 2019

    Great Eastern Energy Hits Ch. 11 In Del. With $61M Debt

    The parent of northeast electricity and natural gas supplier Great Eastern Energy took the business into a $61 million Chapter 11 in Delaware late Thursday after a series of defaults on agreements with creditors led by interests of Macquarie Investments.

  • February 14, 2019

    Life Insurance Buyer Gets New Ch. 11 Stalking Horse Bidder

    A bankrupt purchaser of life insurance policies from wealthy policyholders announced Thursday that it will pursue a Chapter 11 auction of its portfolio of policies with a $5.65 million offer from a new stalking horse bidder that proposes less costly bid protections than a prior offer did.

  • February 14, 2019

    Puerto Rico Fed. Board Sues For Island Senate's Financial Info

    The federally appointed board overseeing Puerto Rico's financial overhaul announced Thursday that it has filed a complaint to compel the production of documents from the territory's Senate to get a fuller understanding of the island government's bank account balances.

  • February 14, 2019

    Retailer Shopko Seeks To Investigate McKesson In Ch. 11

    Midwestern big box retailer Specialty Retail Shops Holding Corp., better known as Shopko, has asked a Nebraska bankruptcy court to allow it to investigate its claims that pharmaceutical distributor McKesson Corp. has overcharged it millions of dollars for drugs.

  • February 14, 2019

    Bankrupt Imerys Dropped From Dying Woman’s J&J Talc Trial

    Newly bankrupt Imerys Talc is no longer a defendant in a trial over whether Johnson & Johnson’s talcum-made baby powder contained asbestos that caused a dying woman’s cancer, a California judge said Thursday, but he asked jurors not to speculate on why the talc supplier is no longer in the case.

  • February 14, 2019

    UST Wants New Asbestos Claims Rep In Maremont Ch. 11

    The Office of the U.S. Trustee urged a Delaware bankruptcy judge Thursday to require an independent search for an asbestos trust future claims representative in the Chapter 11 of former automotive parts maker Maremont Corp., citing a need to assure independence in the job.

  • February 14, 2019

    Promise Healthcare's $35M Ch. 11 Sale Of 2 Hospitals OK'd

    A Delaware judge on Thursday gave his nod to Promise Healthcare Group LLC's roughly $35 million sale of two hospitals in Louisiana and plans to move forward with the sale of a Los Angeles hospital with a $7 million cash offer from a stalking horse bidder in place.

  • February 14, 2019

    Opt-Out Releases Prove Problematic In Aegean Marine Ch. 11

    Distressed Greek refueling company Aegean Marine Petroleum Network Inc. must adjust its attempt to bind creditors to third party litigation releases in its Chapter 11 plan, a New York bankruptcy judge said Thursday, telling lawyers for the company he will not "manufacture consent" by approving an "opt out" provision.

  • February 14, 2019

    Pellet Cos. Trustee's Suit Belongs In State Court: Judge

    A Louisiana federal magistrate judge has recommended that a trustee’s suit against a German insurance company that issued a policy to a now-bankrupt heating pellet company be sent back to state court, holding that removal wasn’t appropriate because an officer of the debtor hadn’t agreed to it.

  • February 14, 2019

    Kasowitz Benson, Pachulski Can Rep White Eagle In Ch. 11

    Bankrupt life insurance settlement investor White Eagle Asset Portfolio LP received a Delaware judge’s permission Thursday to retain a pair of law firms in its Chapter 11 case despite arguments from its secured lender that the firms had conflicts with non-debtor affiliates of the company.

Expert Analysis

  • Fresh Takes On Seeking Costs And Fees Under Rule 45

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    Recent case law reveals that courts vary widely in their approaches to shifting the costs and fees incurred in responding to a Federal Rule of Civil Procedure 45 subpoena. Nonparties responding to such requests should consider certain district court trends, say attorneys at Pepper Hamilton LLP.

  • Bankruptcy Ruling Reminds Corp. Counsel To Mind Rule 1.13

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    Cruickshank v. Dixon, a recent Bankruptcy Court decision in Massachusetts, is the latest case highlighting the need for attorneys to examine conflicts of interests between a controlling equity holder and corporate interest as laid out in the Model Rules of Professional Conduct, say Christopher Blazejewski and Jessica Gray Kelly of Sherin and Lodgen LLP.

  • Series

    Judging A Book: Smith Camp Reviews 'Echo Of Its Time'

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    "Echo of Its Time" is the story of Nebraska’s federal district court from statehood in 1867 to the demise of Prohibition in 1933. Professors John Wunder and Mark Scherer have written an objective, unsentimental and insightful history, layered with context and rich in character study, says U.S. District Judge Laurie Smith Camp of the District of Nebraska.

  • No Premium Recovery Guarantees For 5th Circ. Lenders

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    While the U.S. Court of Appeals for the Fifth Circuit’s opinion last month directly addressed the allowability of make-whole and prepayment premiums for unsecured creditors in solvent debtor cases, its reasoning also cast doubt on the allowability of such premiums even for oversecured creditors, say attorneys at Latham & Watkins LLP.

  • Momentive Disrupts Intercreditor Agreements And Reorgs

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    The Momentive decision in the Southern District of New York, which warned against allowing senior secured creditors to “completely disable debtors from restructuring” and “scavenge on all assets in bird’s-eye view,” may have the unintended consequence of doing just that, say Adam Shiff and Shai Schmidt of Kasowitz Benson Torres LLP.

  • Opinion

    Sanders And Schumer (Mostly) Right On Share Repurchases

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    One need not agree with all of the proposal by Sens. Chuck Schumer and Bernie Sanders to limit share repurchases and dividends by amending the tax code. Society at large will surely benefit if corporations are required to pay their creditors before paying shareholders, says J.B Heaton of J.B. Heaton PC.

  • Guest Feature

    'The Mooch' Talks Mayhem, Con Law, Lessons From Harvard

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    Anthony Scaramucci is probably best known for the 11 days he spent as White House director of communications in 2017. But when White and Williams LLP attorney Randy Maniloff sat down to chat with "the Mooch," he was interested in hearing a different story.

  • What Happens When Crypto Meets Insolvency

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    Shaya Rochester and Lindsay Lersner of Katten Muchin Rosenman LLP address four issues likely to be found at the intersection of cryptocurrency and insolvency — ownership, classification, volatility, and treatment under the Uniform Commercial Code.

  • Why NY's Sutton 58 Decision Won't Rattle Real Estate Finance

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    Though some have claimed the New York Appellate Division, First Department's ruling in Sutton 58 v. Pilevsky will have earth-shattering consequences, the deceptively narrow decision does not undermine the contract-based foundation upon which recourse carveout guarantees are built, say attorneys at Fried Frank Harris Shriver & Jacobson LLP.

  • Why Proper Document Redaction May Be An Ethical Duty

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    Paul Manafort's attorneys recently filed a court document containing incompletely redacted information, highlighting the need for attorneys to become competent at redaction — or at least at verifying that redaction has been performed correctly. Failure to do either could be construed as legal malpractice, says Byeongsook Seo of Snell & Wilmer LLP.