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Bankruptcy

  • November 23, 2018

    2 Platinum Execs Helping Feds After Plea, Filing Reveals

    Two men who worked as executives at Platinum Partners have secretly pled guilty and are cooperating in the criminal fraud case against Platinum co-founder Mark Nordlicht and others, a court document has revealed.

  • November 21, 2018

    Weinstein Buyer Says Stars Can't Fast-Track Contract Queries

    The Weinstein Co.'s buyer objected Wednesday to a request from a group of film stars including Meryl Streep and Jennifer Lawrence for a fast-track ruling on the status of their contracts, arguing the actors haven't justified the need for expedited consideration.

  • November 21, 2018

    Rehab Co. Agrees To Modify Ch. 11's 3rd-Party Releases

    Bankrupt addiction treatment facility network EBH Topco LLC challenged on Wednesday the U.S. Trustee’s claim that its Chapter 11 plan is unconfirmable, saying the third-party releases the trustee flagged are consensual, but conceded to revising the language in the plan and disclosure statement to be consistent with the bankruptcy code.

  • November 21, 2018

    Investor Challenges National Events Deal With D&O Insurer

    The largest creditor of bankrupt ticket brokerage and alleged Ponzi scheme vehicle National Events Holding LLC has again objected to a proposed $1.65 million settlement between the debtor’s trustee and its directors and officers insurer, and is fighting a bid to roll several closely associated entities into the Chapter 7 case.

  • November 21, 2018

    Insolvent German Firm's Del. Ch. 15 Targets Whirlpool

    Germany-based kitchen and home products maker Alno AG opened a Chapter 15 "foreign main" bankruptcy proceeding in Delaware late Tuesday, saying it was investigating possible claims against Whirlpool Corp. and CEO Marc Bitzer for Alno's failure to declare insolvency years ago.

  • November 21, 2018

    Toys R Us Creditors Challenge Releases In Ch. 11 Plan

    Toys R Us Inc.’s unsecured creditors committee has asked a Virginia bankruptcy judge to reject a Chapter 11 plan for a group of the toy chain’s subsidiaries, saying it shorts creditors by releasing possible legal claims against some of the entities.

  • November 21, 2018

    Spanish-language Broadcaster Hits Ch. 11 With $530M Debt

    LBI Media Inc., which operates Spanish-language TV and radio stations nationally including EstrellaTV, hit Chapter 11 in Delaware on Wednesday with $530 million in debt and a planned debt-for-equity swap, citing shifting viewer habits and dwindling revenue from advertisers as reasons for its filing.

  • November 21, 2018

    FirstEnergy Unit Looks To Pocket $152M In Ch. 11 Plant Sale

    FirstEnergy Corp.'s bankrupt fossil generation subsidiary filed court papers Tuesday seeking authorization to auction off one of its three power plants with a bidding floor set by an affiliate of Starwood Energy Group Global LLC that it says would net the estate about $152 million.

  • November 21, 2018

    IHeartMedia Looks To Re-Up Ch. 11 Worker Bonus Plan

    IHeartMedia Inc. has asked a Texas bankruptcy court for authorization to continue performance incentive plans that could pay company employees up to $82 million in 2019 as the radio giant tries to reorganize under Chapter 11.

  • November 21, 2018

    Bankrupt Franchisee Reaches Ch. 11 Deal With Applebee's

    Bankrupt Applebee’s restaurant franchisee RMH Franchise Holdings Inc. said in a Delaware court filing Tuesday that it had reached a settlement agreement with the restaurant chain that will pave the way to a much smoother Chapter 11 confirmation process than anticipated.

  • November 21, 2018

    Maxus Ch. 11 Trustee Slams Move To Toss $14B Suit In Del.

    The trustee for Maxus Energy Corp.'s bankruptcy liquidation on Wednesday branded as contradictory, misplaced or wrong dismissal challenges to its $14 billion, 23-count, alter ego liability and "veil piercing" suit in Delaware against Spanish energy giant Repsol SA and Argentina-based YPF SA.

  • November 21, 2018

    Atty Could Get Fees Despite Suspension, 3rd Circ. Says

    The Third Circuit has ruled that an attorney who represented a couple while administratively suspended isn’t entitled to a contingency fee, but could recoup payment for work he performed for the clients before they fired him.

  • November 21, 2018

    Willkie Farr Adds 'Madoff 5' Prosecutor From Boies Schiller

    Willkie Farr & Gallagher LLP has hired a former Boies Schiller Flexner LLP partner and New York federal prosecutor who was on the team that tried five former Bernie Madoff associates accused of aiding the $65 billion Ponzi scheme.

  • November 20, 2018

    Revised Puerto Rico Sales Tax Plan Cleared For Creditor Vote

    A plan to restructure nearly $18 billion in debt carried by the Puerto Rico Sales Tax Corp., or COFINA, will go to a creditor vote, the judge presiding over the U.S. territory’s bankruptcy-like proceedings ruled Tuesday, putting the agency on track to confirm its debt adjustment scheme by mid-January.

  • November 20, 2018

    Suspension Proposed For Fla. Atty's Omissions In Bankruptcy

    A court-appointed referee recommended Monday that Peter G. Herman, a former director at Tripp Scott PA, be suspended from practicing law for 18 months for failing to disclose assets in a personal bankruptcy case, particularly his interest in $10 million in contingency fees won by his firm.

  • November 20, 2018

    Noteholder Bid For Woodbridge Ch. 11 Delay Nixed In Del.

    Noting an "only slightly better than negligible" chance of success on appeal and low chance of irreparable injury to noteholders appealing, a Delaware bankruptcy judge on Tuesday declined to put on hold his confirmation of the Woodbridge Group of Cos. LLC's Chapter 11.

  • November 20, 2018

    Okla. Cancer Center Told To Justify Filing For Ch. 11 In Del.

    An Oklahoma cancer treatment center must explain to a Delaware bankruptcy judge why it filed a Chapter 11 petition in the First State after the court pointed out the debtor’s lack of connection to the state during a first-day hearing Tuesday.

  • November 20, 2018

    KKR, Bain Set Up $20M Fund For Workers Toys R Us Let Go

    Private equity giants KKR & Co. Inc. and Bain Capital LP announced Tuesday they have established a $20 million fund to provide severance pay for some of the more than 30,000 former employees of the bankrupt Toys R Us chain.

  • November 20, 2018

    David’s Bridal Gets Nod For $185M DIP In Del. Ch. 11

    A Delaware bankruptcy judge on Tuesday gave her nod to David's Bridal Inc.’s $185 million in post-petition financing in the bridal retail giant's prepackaged Chapter 11, which the company said was necessary to keep operations going as it heads into the busy season for dress orders.

  • November 20, 2018

    Provant Creditors File Ch. 11 Clawback Over $2M Transfer

    The official committee of unsecured creditors of Provant Health has sued a group of company equity owners, claiming they improperly transferred more than $2 million from the company to avoid their guaranty obligations.

Expert Analysis

  • Transitioning Cos. Can't Forget Pending Green Cards

    Hector Chichoni

    When sponsoring foreign national employees for employment-based lawful permanent residence in the U.S., there are many factors an employer must consider if it is restructuring, relocating or downsizing its operations to avoid the consequences of noncompliance under current U.S. immigration law, says Hector Chichoni of Duane Morris LLP.

  • Calif.'s New Rules For Lawyers Move Closer To ABA Model

    Mark Loeterman

    The first comprehensive overhaul of California's Rules of Professional Conduct in nearly 30 years becomes operational on Nov. 1. Some of the new rules mirror the model language used by the American Bar Association, but many continue to reflect California’s unique approach to certain ethical questions, says Mark Loeterman of Signature Resolution LLC.

  • Know The Limits To Atty Public Statements During A Trial

    Matthew Giardina

    The balancing act between protecting attorneys’ speech rights and ensuring unbiased adjudications was highlighted recently in two cases — when Michael Cohen applied for a restraining order against Stephanie Clifford's attorney, and when Johnson & Johnson questioned whether a Missouri talc verdict was tainted by public statements from the plaintiffs' counsel, says Matthew Giardina of Manning Gross & Massenburg LLP.

  • Clarifying The Scope Of Bankruptcy Code 3rd-Party Injunction

    Craig Goldblatt

    The Third Circuit’s decision last month in W.R. Grace contains valuable lessons for insurers on the benefits that can be obtained by a third-party injunction issued under Section 524(g)(4) of the Bankruptcy Code, say Craig Goldblatt and Nancy Manzer of WilmerHale.

  • In Calif., Questions Remain On Law Firm Conflict Waivers

    Richard Rosensweig

    In Sheppard Mullin v. J-M Manufacturing Co., the California Supreme Court ruled last month that a law firm's failure to disclose a known conflict with another current client did not categorically disentitle the firm from recovering fees. But the court didn’t provide hoped-for guidance on how to write an enforceable advance conflict waiver, says Richard Rosensweig of Goulston & Storrs PC.

  • Q&A

    A Chat With Faegre Client Development Chief Melanie Green

    Melanie Green

    In this monthly series, Amanda Brady of Major Lindsey & Africa interviews management from top law firms about the increasingly competitive business environment. Here we feature Melanie Green, chief client development officer at Faegre Baker Daniels LLP.

  • Equitable Mootness Is Alive And Well In Chapter 9

    Richard Cooper

    Last month's opinion in Bennett v. Jefferson County brings the Eleventh Circuit in line with other courts that have found that the equitable mootness doctrine should apply in Chapter 9. The decision may be particularly relevant in Puerto Rico's ongoing restructuring proceedings, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Q&A

    Back To School: Widener's Rod Smolla Talks Free Speech

    Rodney Smolla

    In this new series featuring law school luminaries, Widener University Delaware Law School dean Rodney Smolla discusses teaching philosophies, his interest in First Amendment law, and arguing before the U.S. Supreme Court in Virginia v. Black.

  • New Pass-Through Deduction Will Pass Over Many Lawyers

    Evan Morgan

    A few weeks ago, the IRS proposed regulations related to the Tax Cuts and Jobs Act's 20 percent deduction on qualified business income for pass-through entities. The guidance offers long-awaited clarity, but is mostly bad news for many law firms, says Evan Morgan of Kaufman Rossin PA.

  • How Reckless Judicial Impeachments Threaten Rule Of Law

    Jan van Zyl Smit

    Judicial impeachment fever seems to be spreading through the states, with West Virginia legislators recently voting to remove their state's entire Supreme Court, and lawmakers in Pennsylvania and North Carolina threatening the same. These actions are a serious threat to judicial independence, says Jan van Zyl Smit of the Bingham Centre for the Rule of Law.