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Bankruptcy

  • June 12, 2018

    Fyre Festival Investor Can Pursue $3M Claim Amid Ch. 7

    A New York bankruptcy judge has agreed to let an investor for the doomed Fyre Festival pursue a $3 million claim against the company and its organizers while the beleaguered concert operation goes through liquidation.

  • June 12, 2018

    Tilton Balks At $500K White & Case Role In Zohar Ch. 11

    Financier Lynn Tilton and her investment firm Patriarch Partners LLC objected Monday to the appointment of White & Case LLP under a $500,000 retainer as counsel to an independent director assigned to the Delaware Chapter 11 cases of her Zohar funds.

  • June 11, 2018

    BMW Can't Immediately Appeal In $33M Fisker Clawback Case

    A Delaware federal judge refused Monday to let BMW immediately appeal a bankruptcy court order keeping alive a $32.6 million clawback suit by the trustee for the estate of electric-car company Fisker, saying there's nothing present to justify such an appeal.

  • June 11, 2018

    Marsh Supermarkets Gets Del. Ch. 11 Liquidation Approval

    Conceding that his decision was a close call, a Delaware bankruptcy judge on Monday confirmed a liquidating Chapter 11 plan for remnants of the Marsh Supermarkets chain, overruling a U.S. trustee objection to provisions for blanket, nonconsensual liability releases.

  • June 11, 2018

    FirstEnergy Excludes Unions From Bonuses, Workers Say

    A collection of unions representing employees at FirstEnergy Corp.'s bankrupt nuclear generation unit filed court papers Friday complaining that the company is seeking to pay nearly all but its unionized workers an aggregate of $100 million in bonuses for staying on the job as operations wind down.

  • June 11, 2018

    2nd Circ. Urged To Seek Texas Justices' View On Sabine Case

    Nordheim Eagle Ford Gathering LLC urged the Second Circuit on Monday to reconsider its ruling that Sabine Oil & Gas Corp. could reject gas-gathering contracts after filing for bankruptcy, arguing the Texas Supreme Court must first decide whether such contracts are linked with drilling lands under state law.

  • June 11, 2018

    Mass. Power Plant Owner Back In Ch. 11 With $700M Of Debt

    A Massachusetts natural-gas power plant owner sought bankruptcy protection Monday in Delaware, listing more than $700 million in secured debt as it pursues confirmation of a prepackaged Chapter 11 plan on a five-week timeline, just four years after a previous in-court reorganization.

  • June 11, 2018

    GM Ignition Switch Suit Goes From SDNY To NM State Court

    A New York federal judge on Monday sent a suit blaming a fatal accident on a GM car’s ignition mechanism back to New Mexico state court, saying the accident at issue took place after GM reorganized and was only “remotely related” to the company’s 2008 bankruptcy.

  • June 11, 2018

    Rehab Network Extends Sale Timeline To Appease Creditors

    Bankrupt drug and alcohol addiction treatment network EBH TopCo LLC on Monday reached a deal with its post-petition lender and its unsecured creditors committee in Delaware to extend the proposed milestones in its asset sale process by about three weeks to address the concerns of the newly formed committee.

  • June 11, 2018

    Winston & Strawn Accused Of Conflict In Relativity Ch. 11

    Winston & Strawn LLP is facing heat for an alleged conflict of loyalties after agreeing to represent foundering production company Relativity Media LLC as it rushed into bankruptcy to head off a contract dispute with Netflix, despite representing the streaming entertainment service in separate patent litigation.

  • June 11, 2018

    'Housewives' Star Gets Green Light For Atty Malpractice Deal

    A New Jersey federal bankruptcy judge on Monday agreed to dismiss the case of a once-incarcerated star of "The Real Housewives of New Jersey" so that she and her Chapter 7 trustee can complete a confidential settlement in their malpractice action against her former lawyer in state court.

  • June 11, 2018

    Sequor Law Picks Up 2 Bankruptcy Attys From GrayRobinson

    Sequor Law has added two former GrayRobinson PA shareholders, including one of the founding members of that firm’s Miami office, to its own Miami-based bankruptcy practice, the firm has announced.

  • June 11, 2018

    Trustee Defends $15B Suit Over SEC’s 'Unlawful Power Grab'

    A liquidation trustee suing the U.S. Securities and Exchange Commission for almost $15 billion in allegedly ill-gotten disgorgements told a Massachusetts federal judge on Friday that the agency’s arguments against the suit cannot insulate its “unlawful power grab” from being challenged.

  • June 11, 2018

    MF Global Creditor Plan Stalls On €126M Deutsche Bank Debt

    A plan to pay out creditors of a U.K. unit of defunct brokerage MF Global hit a roadblock on Monday after a London appellate court ruled that a disputed claim by Deutsche Bank AG for €126 million ($149 million) prevents the arrangement from going into effect.

  • June 8, 2018

    Shanghai Zhenhua To Pay Toisa $20M To End Row In Ch. 11

    Chinese manufacturing giant Shanghai Zhenhua agreed to pay $20 million to offshore oil tanker company Toisa Ltd. to end a shipbuilding arbitration dispute between the two companies, according to a motion filed Friday in Toisa’s bankruptcy proceedings.

  • June 8, 2018

    Relativity Founder Shielded From Part Of Investor Fraud Suit

    Relativity Media LLC co-founder Ryan Kavanaugh will not have to face negligence claims in a California state suit accusing him of defrauding an investor before the company went belly-up in 2015, as a New York bankruptcy judge ruled Thursday that Relativity's confirmed Chapter 11 plan blocks certain allegations.

  • June 8, 2018

    Think Finance Says CFPB's 'Threadbare' Suit Must Go

    Think Finance on Thursday stood behind its efforts to shake a Consumer Financial Protection Bureau suit accusing the financial technology company of duping borrowers and using sham tribal payday lenders to collect money it wasn't owed, telling a Montana federal court that the agency's "threadbare" complaint should not proceed.

  • June 8, 2018

    IHeartMedia Can Pay Employee Bonuses, Access $450M DIP

    A Texas bankruptcy judge on Thursday approved iHeartMedia Inc.’s requests to fund its Chapter 11 restructuring with a new $450 million revolving credit facility and pay its non-insider employees an aggregate of up to $66 million in bonuses to encourage peak performance.

  • June 8, 2018

    Murray Plumb & Murray Adds New Bankruptcy Partner

    Maine law firm Murray Plumb & Murray announced that it has expanded its bankruptcy practice group with the addition of a former Marcus Clegg & Mistretta PA attorney as a partner.

  • June 8, 2018

    Penthouse Bankruptcy Ends 'Caligula' IP Suit

    A California federal court Wednesday ended Penthouse Global Media Inc.’s suit against a digital media holding company over the rights to the 1979 film “Caligula” and the OMNI trademark after Penthouse said its intellectual property was sold in a bankruptcy auction earlier in the week.

Expert Analysis

  • Should Sovereign Immunity Shield IRS In Section 544 Suits?

    Scott Grossman

    A bankruptcy judge for the Eastern District of Michigan ruled in April that sovereign immunity does not bar a fraudulent transfer suit against the IRS. In doing so, she noted a split between the Seventh and Ninth Circuits and elected to follow the Ninth. With the IRS continuing to raise this defense to Section 544 fraudulent transfer claims, it is possible the Supreme Court will be called upon, says Scott Grossman of Greenberg Traurig LLP.

  • Introducing The Legal Industry To Millennial Business Owners

    Yaima Seigley

    ​The current business climate has produced vast opportunities for seasoned lawyers to create valuable connections with millennial business owners, but first lawyers must cleanse their palate of misconceptions regarding millennials, says Yaima Seigley of Isaac Wiles Burkholder & Teetor LLC.

  • 2 New Decisions Clarify Chapter 15 Requirements

    James Bentley

    Two recent decisions from the Southern District of New York reaffirmed several Second Circuit holdings that retainers placed with U.S. law firms constitute property of the debtor in the U.S. for Chapter 15 filing purposes. The surprising part was the required amount, says James Bentley of Schulte Roth & Zabel LLP.

  • Opinion

    Why Won't Judicial Nominees Affirm Brown V. Board Of Ed?

    Franita Tolson

    On May 17, 1954, the U.S. Supreme Court decided Brown v. Board of Education, recognizing a moral and legal truth that should be beyond question in American society. The refusal by some of President Donald Trump's judicial nominees to say whether they believe the case was decided correctly is indicative of the narrow-minded elitism they would bring to the bench, says professor Franita Tolson of the University of Southern California's Gould School of Law.

  • The Lawyers' Guide To Cloud Computing

    Daniel Garrie

    In deciding whether cloud computing is right for the organization or firm, an attorney must consider cloud computing’s significant impact on the electronic discovery process, say Daniel Garrie, managing partner at Law & Forensics LLC, and David Cass, chief information security officer at IBM Cloud.

  • The Burden Of Medical Records During Bankruptcy

    Kenya Woodruff

    Companies in the health care industry face many unique challenges when undergoing a bankruptcy, including challenges arising due to the federal and state law framework governing the use and disclosure of medical information. Maintenance and storage of medical records is complicated further because of debtors' lack of financial resources, say attorneys with Haynes and Boone LLP.

  • Opinion

    Recovering Lawyers' Lost Position Of Independence

    Samuel Samaro

    In these politically divisive times, many ask whether our institutions and traditions can help us return to a greater consensus. In days long past, the legal profession could have been counted on to serve just such a function. But lawyers are now just as polarized as everyone else, says Samuel Samaro of Pashman Stein Walder Hayden PC.

  • 8 Reasons To Take A Fresh Look At Your Law Office Lease

    Tiffany Winne

    After moving into a new law office, tenants often file their signed leases away, figuring that the terms are set for a few years at least. However, leases can be very flexible instruments, and should be reviewed annually even if nothing seems amiss, says Tiffany Winne of Savills Studley Inc.

  • A General Counsel's Tips For Succeeding As A New Associate

    Jason Idilbi

    Based on his experience as a BigLaw associate for six years and now as general counsel for a tech startup, Jason Idilbi of Passport Labs offers some best practices for newer associates — whether they are serving external clients or senior attorneys within their firms.

  • Series

    Judging A Book: Berzon Reviews 'We The Corporations'

    Judge Marsha Berzon

    My advice to prospective clerks will now include the suggestion that they read Adam Winkler's new book, "We the Corporations: How American Businesses Won Their Civil Rights," for the same reason I recommend taking a corporations course — appreciating the critical role of business corporations in American life and law, says Ninth Circuit Judge Marsha Berzon.