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Bankruptcy

  • September 5, 2018

    SEC Objects To IHeartMedia's Proposed Ch. 11 Plan Releases

    The U.S. Securities and Exchange Commission slammed the “overly broad” third-party releases contained in iHeartMedia’s proposed Chapter 11 plan on Tuesday, saying the provisions would improperly prevent whole swaths of stakeholders from suing the debtor's directors and affiliates for outright fraud or negligence later on.

  • September 5, 2018

    Real Mex Utility Payment Issues Cleared Up In Ch. 11 Case

    The Chapter 11 utility assurance procedures proposed by bankrupt restaurant chain Real Mex received court approval Wednesday in Delaware after a rare objection to the motion was overruled by a bankruptcy judge.

  • September 5, 2018

    3 Dewey Execs Settle With SEC Over Law Firm's Collapse

    The U.S. Securities and Exchange Commission has said former Dewey & LeBoeuf chairman Steven Davis and two other ex-Dewey staffers have agreed to settle civil fraud claims against them stemming from the law firm’s 2012 collapse.

  • September 5, 2018

    Receiver Gives Notice Of SEC Suit Against 1 Global Capital

    A court-appointed receiver on Wednesday gave a Missouri federal court notice of a previously sealed lawsuit the U.S. Securities and Exchange Commission filed in late August accusing Florida-based lender 1 Global Capital LLC and its former CEO of fraudulently raising more than $287 million — and misappropriating at least $35 million of that — from thousands of investors over the past four years.

  • September 4, 2018

    Momentive, Bondholders Spar Over Interest Rate At Trial's End

    Bankrupt silicone maker Momentive Performance Materials and two creditor groups on Tuesday finished their arguments in a New York bankruptcy court in a trial over whether there was a market for the cramdown notes the company issued in 2014.

  • September 4, 2018

    Weinstein Directors Want Del. Ch. 11 OK For NY Defense

    Seven former directors of The Weinstein Co. LLC — including Harvey Weinstein — urged a Delaware bankruptcy judge Tuesday to lift a Chapter 11 barrier to company participation as defendants in a New York lawsuit filed by one of the embattled movie mogul's alleged harassment victims.

  • September 4, 2018

    McKesson Defends Right To $7M Of Disputed Orexigen Funds

    Drug distributor McKesson Corp. and a subsidiary reiterated their belief that they are entitled to $7 million in disputed funds being held by debtor Orexigen Therapeutics Inc. in its Delaware Chapter 11 case, arguing that the basis for opposition to release of the money put forth by lenders and the debtor doesn’t comport with the law as written.

  • September 4, 2018

    Sex Victims Must Prove Distress, Billionaire Says In Docs Row

    Billionaire convicted sex offender Jeffrey Epstein asked a Florida bankruptcy court Tuesday to depose three of his victims and compel their mental examinations in connection with a dispute over confidential documents that were allegedly retained by his counsel in violation of a court order.

  • September 4, 2018

    Jones Day Bankruptcy Pro Goes To Paul Hastings' NY Office

    Paul Hastings LLP has hired a cross-border bankruptcy specialist from Jones Day, part of the firm’s recent push to bulk up its finance and restructuring practices.

  • September 4, 2018

    Nordam Seeks Partial Ch. 11 Sale Deal To Gulfstream

    The Nordam Group reported an agreement in Delaware bankruptcy court on Tuesday to sell the aircraft component maker's troubled product and manufacturing line to Gulfstream Aerospace Corp., in a Chapter 11 deal intended to settle disputes with both Gulfstream and Pratt & Whitney Corp.

  • September 4, 2018

    Necco Trustee Says Board Nixed Sweet Prebankruptcy Deal

    The trustee representing the once iconic but now bankrupt New England Confectionery Co., better known as Necco, sued the company’s board of directors Friday in Massachusetts federal court alleging they committed a gross breach of fiduciary duty by ignoring a promising buyout offer in order to benefit conflicted board members.

  • August 31, 2018

    Receiver Seeks OK Of Clawback Deals In Alleged $7.4M Fraud

    The court-appointed receiver for companies linked to a Chilean fugitive who U.S. securities regulators say bilked investors out of $7.4 million asked a Florida federal court on Friday to approve hundreds of thousands of dollars in clawback settlements she has reached with various parties.

  • August 31, 2018

    Woodbridge Fights Trans Worker's Suit Amid Bankruptcy

    Woodbridge filed an objection on Thursday to the $14 million wrongful termination claim asserted by a former employee who said she was mistreated for being a transgender woman, saying the claim seeks unreasonable damages and should be subordinated amid the company’s Chapter 11 proceedings.

  • August 31, 2018

    Creditors Flag Weinstein's Request To Lift Ch. 11 Stay

    Unsecured creditors objected Friday to an attempt by Harvey Weinstein and defendants in one of his sexual assault cases in New York federal court to lift the stay in The Weinstein Co.'s Chapter 11 in Delaware, claiming such a move could leave the bankruptcy estate insolvent.

  • August 31, 2018

    Verity Health System Files For Bankruptcy In California

    Nonprofit hospital chain Verity Health System of California Inc. Friday filed for Chapter 11 in a California bankruptcy court, saying it needs to sell the six hospitals it operates to escape more than a billion dollars in bond debt and pension liabilities.

  • August 31, 2018

    What To Watch In Kavanaugh's Confirmation Hearing

    Judge Brett Kavanaugh's confirmation hearing before the Senate Judiciary Committee starting Tuesday promises to be one of the most public spectacles of his career, with the D.C. Circuit jurist taking a step into the spotlight on his path toward replacing retired Justice Anthony Kennedy on the U.S. Supreme Court.

  • August 31, 2018

    Bankrupt Aerogroup Sues Global Brands Over Aborted Sale

    Bankrupt shoe maker Aerogroup International Inc. is suing fashion conglomerate Global Brands Group Holding Ltd. for pulling out of a deal to purchase it 11 minutes into the hearing where that deal was supposed to be confirmed, leading to a last-minute fire sale that Aerogroup says cost it $30 million.

  • August 30, 2018

    Westinghouse WARN Plaintiffs Split Over Court Jurisdiction

    The bitter, monthslong debate over what to do with two putative WARN Act class actions against Westinghouse Electric took another turn Wednesday, as counsel for one set of plaintiffs asked to have both suits transferred to South Carolina, while their counterparts demanded the suits stay put in New York bankruptcy court.

  • August 30, 2018

    Applebee's Franchisee Cites Progress On Ch. 11 Lender Deal

    Applebee’s restaurant franchisee RMH Franchise Holdings Inc. told a Delaware bankruptcy judge Thursday that it was making progress in mediation talks with its lenders and had their consent to continue accessing their cash collateral while sale and plan talks continue.

  • August 30, 2018

    IRS Not Immune To Monetary Damages, 9th Circ. Finds

    The Ninth Circuit opened the door for awarding damages to an Oregon couple who said they suffered emotional distress when the IRS unlawfully sent them collection notices after they had filed for bankruptcy, ruling Thursday that the government had waived immunity to such damages.

Expert Analysis

  • What Kavanaugh's Writing Tells Us About His Personality

    Matthew Hall

    People with certain personality traits tend to use certain words. A computer analysis of Judge Brett Kavanaugh’s D.C. Circuit opinions reveals that he is highly extraverted, which means that he would be a prominent voice on the U.S. Supreme Court, says Matthew Hall, a professor at the University of Notre Dame.

  • Roundup

    Cities In Distress

    Cities in Distress

    Five years after the city of Detroit filed for Chapter 9 bankruptcy, experts look at the financial troubles of Chicago and other U.S. cities in this special series.

  • Opinion

    3 Pros, 3 Cons Of Litigation Finance

    Ralph Sutton

    An educated guess puts the number of new litigation funders launched in the past 18 months at 30 — an astonishing number, with more to come. Is this a blessing to our legal system or something more akin to tulip mania? Maybe both, says Ralph Sutton, founder and CEO of litigation funding firm Validity Finance LLC.

  • Series

    Cities In Distress: Municipal Recovery Lessons From Pa.

    Juliet Moringiello

    As we reflect on the five years since Detroit’s bankruptcy filing, Pennsylvania’s experience in intervening in its municipalities’ financial distress provides some useful insights on the problems plaguing municipalities as well as lessons for states, says professor Juliet Moringiello of Widener University Commonwealth Law School.

  • Modern Communication Brings E-Discovery Challenges

    Thomas Bonk

    As new communications platforms displace email, the legal industry is awkwardly grappling with complex e-discovery questions. Fortunately, this environment provides a very fertile ground of incentives for innovation in both e-discovery technology and service offerings, says Thomas Bonk of Epiq.

  • Series

    Cities In Distress: Michigan's Emergency Mgr. Law And Flint

    Eric Scorsone

    Michigan has taken a very aggressive approach to addressing municipal fiscal insolvency. But the state's emergency manager law fails to consider the unintended consequences of short-term financial adjustments, as seen in the case of Flint, say Eric Scorsone and Samantha Zinnes of Michigan State University.

  • Opinion

    It's Not All About The Benjamins, Baby (Lawyer)

    J.B. Heaton

    Notwithstanding the latest salary war among prominent law firms, I urge my middle-aged and older colleagues to help the recent graduates we know focus on the long term. Even if the salary is the same, there is a big difference between an institutional firm and the relatively younger firms matching BigLaw, says J.B. Heaton, a University of Chicago business law fellow and former partner at Bartlit Beck.

  • Asbestos Transparency Laws Can Stop Double Recovery

    Scott Hunsaker

    Some asbestos plaintiffs have obtained full recovery from viable defendants and simultaneously, or later, recovered more money for the same injury from asbestos bankruptcy trusts established by those same entities. Recognizing this problem, more and more states are turning to asbestos transparency laws as a solution, say Scott Hunsaker and Karl Borgsmiller of Tucker Ellis LLP.

  • Series

    Cities In Distress: Are There True Alternatives To Ch. 9?

    Lawrence Larose

    Some distressed municipalities — including Atlantic City, New Jersey, and Hartford, Connecticut — have recently restructured outside of Chapter 9, through legislation and negotiations. But such fixes are intensely political in nature and are entirely dependent on the will of government officials, say Lawrence Larose and Samuel Kohn of Norton Rose Fulbright.

  • Claims Trading Lessons From Delaware Bankruptcy Court

    Michael Rupe

    The Delaware bankruptcy court's opinion last month in Woodbridge serves as a cautionary reminder that policy preferences for free claim assignability do not serve to nullify properly drafted anti-assignment provisions, say attorneys with King & Spalding LLP.