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Bankruptcy

  • September 17, 2018

    Arizona $3.5M Settlement Approved In Woodbridge Ch. 11

    The Woodbridge Group of Companies received bankruptcy court approval Monday in Delaware to enter into a consent order with Arizona regulators calling for a $3.5 million restitution payment to investors in that state duped into investing in the company’s Ponzi scheme.

  • September 17, 2018

    Claire's Strikes Deal With Oaktree Over Contested Ch. 11

    After several hours of negotiations, Claire's was able to avoid what was likely to be a highly contentious confirmation hearing for the accessory retailer's Chapter 11 restructuring plan after settling with second-lien creditors now set to recover millions more under the plan.

  • September 17, 2018

    Hospitals Fight Blue Cross Blue Shield Bid To Nix ERISA Suit

    Seven affiliated hospitals — five of them bankrupt — have urged a Texas federal judge to spare their Employee Retirement Income Security Act suit claiming that dozens of Blue Cross Blue Shield entities underpaid them by tens of millions of dollars, arguing the Western District of Texas is a proper venue for the litigation.

  • September 17, 2018

    TelexFree Admits Massive Telecom Scam, Securities Abuses

    The scam corporations behind one of the world's largest pyramid schemes, TelexFree Inc. and TelexFree LLC, admitted Monday to securities fraud that federal agents believe swindled more than 1 million people, a move signaling the end of criminal charges and a lawsuit that halted the massive scheme in its tracks in 2014.

  • September 14, 2018

    Oaktree Flags Claire's Modified Ch. 11 Plan

    Oaktree Capital Management LP on Friday objected to the modified Chapter 11 plan of fashion accessory retailer Claire's Inc., claiming last-minute changes significantly impact the amount of claims to be paid and contesting the debtors' call to bar certain evidence at a confirmation hearing set for Monday.

  • September 14, 2018

    Irish Bank Reps Say Ch. 15 Suit Has No American Nexus

    The foreign representatives of Chapter 15 debtor Irish Bank Resolution Corp. Ltd. objected Friday to a move by an Irish creditor to lift the automatic stay of litigation to allow the creditor to move forward with an adversary proceeding in Delaware, saying the loans at issue in the complaint are governed by Irish law.

  • September 14, 2018

    Trustee Of Modi's Jewelry Cos. Starting Ch. 11 Claims Probe

    The recently appointed Chapter 11 trustee of three bankrupt U.S. jewelry companies linked to Indian billionaire Nirav Modi’s massive $2 billion bank fraud has asked for authorization to begin sending out subpoenas while he investigates further.

  • September 14, 2018

    Car Dealer Loses RICO Suit Over Alleged Scam By Employees

    An Illinois federal judge on Friday canned a racketeering suit brought by an auto dealership owner accusing his former business associates of conspiring to run his business into the ground, saying his failure to prove they were part of an enterprise proved "fatal."

  • September 14, 2018

    DOJ Warns Against Fraud In Kaiser Asbestos Trust Plan

    The Department of Justice has filed a statement of interest in the asbestos-centric bankruptcy of Kaiser Gypsum Co., warning that it won't tolerate any continuation of the "fraud, abuse and mismanagement" that have plagued the asbestos trust system in recent years.

  • September 14, 2018

    Actresses Get 'Road Map' To File New Weinstein Class Suit

    Counsel for the actresses accusing Harvey Weinstein of sexual assault in a putative class action say a New York federal judge gave them a “road map” to a stronger case when he dismissed their claims this week.

  • September 14, 2018

    Lehman Judge Looks Back On Historic Case 10 Years Later

    Ten years ago, Lehman Brothers filed the largest bankruptcy in history, an event that accelerated the global financial crisis and inspired a new regime of banking regulation. Judge James Peck spoke with Law360 about the gravity of Lehman's historic filing and how his prior work helped him steward the case. This is the first in a three-part series looking back at Lehman's collapse.

  • September 13, 2018

    Puerto Rico Creditors Blast GDB Deal As It Clears Hurdle

    Puerto Rico’s creditors and its financial oversight board clashed Thursday over the proposed $4.1 billion restructuring of the island’s Government Development Bank, with creditors deriding it as a “home-baked bankruptcy” that would shield corrupt bankers from scrutiny even as the bank’s own creditors overwhelmingly approved the deal.

  • September 13, 2018

    McKinsey Denies Conflicts Of Interest In ANR Ch. 11 Case

    Consulting giant McKinsey & Co. on Wednesday asked a Virginia bankruptcy court to reject calls to reopen the Alpha Natural Resources Chapter 11 case over allegations of conflicts of interest, saying it did not know of the alleged conflicts and would have had no duty to disclose the ties at issue.

  • September 13, 2018

    Green Field Trustee Gets $17M From Ex-CEO In Ch. 11 Suit

    The liquidation trustee of reorganized debtor Green Field Energy Services Inc. will be able to recover nearly $17 million from the former CEO of the company after a Delaware bankruptcy judge decided Wednesday that he is liable for breaching a contract with the company and depriving it of needed financing.

  • September 13, 2018

    3rd Circ. Leaves EFH Off Hook For $275M Breakup Fee

    A divided Third Circuit panel on Thursday upheld a decision relieving the bankrupt Energy Future Holdings Inc. from paying a $275 million termination fee after a deal to sell its interest in a power distribution system to NextEra Inc. failed to win approval from Texas utility regulators.

  • September 13, 2018

    M&G Ch. 11 Exit For Some European Affiliates OK'd In Del.

    A Delaware bankruptcy judge approved a deal Thursday to release three European affiliates from plastics-maker M&G USA Corp.’s Chapter 11 case, conditioned in part on immunity agreements and affiliate efforts to prune as much as $600 million from creditor claims in Mexico.

  • September 13, 2018

    Heritage Home Secures Ch. 11 Approval For Asset Sale

    Bankrupt furniture retailer Heritage Home Group LLC received approval in Delaware on Thursday for a Chapter 11 sale of “nonluxury” product inventories in stores and distribution centers, days ahead of a bid deadline and auction for the company’s pricier lines.

  • September 13, 2018

    Mass. AG Says Ch. 7 Won't Save For-Profit School From Suit

    The Massachusetts Attorney General's Office told a Delaware bankruptcy judge on Thursday that federal protections in Education Management Corp.'s Chapter 7 should not prevent the state from proceeding with a lawsuit against one of its for-profit schools seeking damages on behalf of students.

  • September 12, 2018

    NY Developer Faces Collection Action After 'Lavish' Pics

    A construction executive misused money meant for a luxury New York City condominium project and failed to repay a related $4 million loan while flaunting his “lavish lifestyle” on Instagram, a group of lenders said in a collection action filed Tuesday in state court.

  • September 12, 2018

    Unmanifested Defects Claims OK'd In GM Ignition Switch MDL

    A New York federal judge Wednesday found plaintiffs in dozens of states in the General Motors ignition switch MDL can recover damages even if the alleged defect never manifested and can recover earnings lost while dealing with the defect.

Expert Analysis

  • 11th Circ. Changes Course On New Value Defense

    Paul Avron

    The Eleventh Circuit’s decision this month in Kaye v. Blue Bell Creameries confirms that the prior requirement that new value must remain unpaid is no longer the law in the circuit, wiping out a valuable tool for debtors, trustees and post-confirmation estate representatives for avoiding and recovering preferential transfers, says Paul Avron of Berger Singerman LLP.

  • 4 Key Components To New Firm Partnership Agreements

    Russell Shinsky

    A well-drafted partnership agreement protects a law firm's founders, establishes a process for new and outgoing partners, and sets forth guidelines for navigating conflict along the way. Startup firms can begin with something less complex, but there are important elements that every agreement should include, says Russell Shinsky of Anchin Block & Anchin LLP.

  • Opinion

    Open The Federal Courthouses

    David Oscar Markus

    Forget about cameras, reporters in the Manafort trial were not even permitted in the courtroom with their phones, tablets or computers. That meant no live reporting on Twitter and no emails to the newsrooms with updates. In a world focused on information and news as it happens, this is unacceptable, says trial attorney David Oscar Markus.

  • Del. Series LLC Changes Bring Clarity For Secured Lenders

    R. Jason Russell

    Delaware recently passed amendments to the Delaware Limited Liability Company Act that enable a new type of series of an LLC known as a “registered series.” The changes address historical uncertainty among secured lenders seeking to perfect a security interest, say R. Jason Russell and Sean Sullivan of Morris Nichols Arsht & Tunnell LLP.

  • Navigating Counsel Conflicts Of Interest In Bankruptcy

    Claire Wu

    A recent New York federal court ruling in the bankruptcy case of Relativity Media highlights the importance of disqualification of counsel disputes in bankruptcy matters. Attorneys must proceed with care when duties owed to both parties create a conflict of interest, says Claire Wu of SulmeyerKupetz PC.

  • 'High Availability' — A Key Term In Law Firm IT Strategy

    Jeff Norris

    While most law firm executives and partners may instinctively want to tune out terms like "high availability" and "disaster recovery" — concepts that IT managers usually worry about — there are five reasons you should lean in and wrestle with the vocabulary, say Jeff Norris of Managed Technology Services LLC and Greg Inge of information security consulting firm CQR.

  • The 'Post-Fact' Jury In The 'Fake News' Era

    Ross Laguzza

    The "fake news" phenomenon is ever more prominent in the political arena — but not in the jury box. At a trial, jurors don’t have to rely on the media or any other source to tell them the facts and issues, since they have a front-row seat to the action, says Ross Laguzza, a consultant at R&D Strategic Solutions LLC.

  • Series

    Judging A Book: Lipez Reviews 'Last Great Colonial Lawyer'

    Judge Kermit Lipez

    In his new book, "The Last Great Colonial Lawyer: The Life and Legacy of Jeremiah Gridley," Charles McKirdy argues that Gridley — someone I had never heard of — was the last great colonial lawyer, and that his cases illuminate his times. The author largely substantiates both claims, says First Circuit Judge Kermit Lipez.

  • How FIRRMA Will Change National Security Reviews: Part 2

    Jeff Bialos

    The newly enacted Foreign Investment Risk Review Modernization Act significantly expands the authority of the U.S. government to review and restrict foreign investments on national security grounds. But FIRRMA also has provisions that may exempt some transactions from review, and accelerate review of others, say Jeffrey Bialos and Mark Herlach of Eversheds Sutherland LLP.

  • How FIRRMA Will Change National Security Reviews: Part 1

    Jeffrey Bialos

    The Foreign Investment Risk Review Modernization Act empowers the U.S. government to review a far broader group of transactions than ever before to determine if they threaten national security. FIRRMA's expansive new coverage includes oversight of real estate investments and transfers of "emerging and foundational technologies," say Jeffrey Bialos and Mark Herlach of Eversheds Sutherland LLP.