• February 21, 2018

    Luxury Shoe Retailer Hits Ch. 11 With Plan To Liquidate

    A luxury women's shoe and accessory retailer will seek to liquidate its stores in order to pay off debt incurred as a result of nearly $20 million in intercompany transfers in recent years that helped keep the company afloat, according to court filings made in Delaware on Wednesday.

  • February 21, 2018

    Woodbridge Seeks Ch. 11 Judge's OK For Calif. Consent Order

    The Woodbridge Group asked a Delaware bankruptcy judge late Wednesday to approve its entry into a consent order with California regulators barring the company from future securities sales, without admitting wrongdoing but also without a right to further state hearings.

  • February 21, 2018

    Westinghouse Cleared To Solicit Votes On Ch. 11 Plan

    Westinghouse Electric Co. LLC received approval Wednesday from a New York bankruptcy court to distribute its restructuring plan solicitation materials to creditors, keeping the distressed nuclear technology and contracting giant on track to confirm its plan by the end of March.

  • February 21, 2018

    Weil Seeks To Nip Conflict Concerns In Breitburn Ch. 11 Case

    Weil Gotshal & Manges LLP on Tuesday told a New York bankruptcy court that allegations of conflicts of interest involving the bidding for Breitburn Energy Partners LP’s assets were baseless, saying the deal being offered as evidence was with an entity unrelated to the case.

  • February 21, 2018

    Treasury Backs Dodd-Frank Wind-Down Powers, Eyes Reform

    The U.S. Treasury Department Wednesday called for reforming, but not repealing, regulators’ power to take over and unwind major financial institutions on the verge of failure, a key provision of the Dodd-Frank Act that Republicans in the U.S. House of Representatives have sought to scrap.

  • February 21, 2018

    Holland & Knight Adds Bankruptcy Litigator In Houston

    Holland & Knight LLP said Wednesday that it has bolstered its commercial litigation practice in Houston with the hiring of a former Greenberg Traurig LLP partner who has significant experience in bankruptcy and bankruptcy litigation.

  • February 21, 2018

    Tops Supermarkets Opens $1.2B Ch. 11, Plans Debt Rework

    Regional supermarket chain Tops Markets LLC opened a nearly $1.2 billion Chapter 11 restructuring in New York bankruptcy court on Wednesday, saying it needs to reduce its debt load, optimize supply and lease agreements and “constructively engage” with its labor unions.

  • February 20, 2018

    Ex-CEO Of Bankrupt NY Solar Co. Attacks Subpoena Request

    The former CEO of bankrupt solar panel installer Level Solar Inc. hit back on Tuesday against the debtor’s attempts to subpoena him for information, calling the probe a cynical ploy to “defame” and “harass” him “to distract from current management’s own wrongdoing.”

  • February 20, 2018

    Woodbridge Ponzi Defendant Seeks Toss Of SEC Charges

    Ponzi-scheme suspect Robert Shapiro asked a Florida federal court Tuesday to dismiss the Securities and Exchange Commission’s case against him, saying the mortgage notes he sold were not securities.

  • February 20, 2018

    Swift Action Called For In Pacific Drilling Ch. 11 Case

    Turning down calls for mediation in the Chapter 11 case for Pacific Drilling, a New York bankruptcy judge on Tuesday questioned the company’s reorganizing efforts to date and said he expects quick signs of progress in its restructuring plan talks with creditors.

  • February 20, 2018

    Cab Co. Says Bankruptcy Trustee's Suit Based On Falsehoods

    A lawsuit filed by a Chapter 7 trustee in the bankruptcy of Chicago's Yellow Cab Affiliation Inc. accusing one of its subsidiaries of stashing assets contains too many plainly false allegations to go forward, the subsidiary said Tuesday.

  • February 20, 2018

    Tribunal Orders Egypt To Pay $1B In Gas Supply Row

    Egypt has been ordered in arbitration to pay more than $1 billion in damages for wrongfully terminating a gas purchase and supply agreement with the operator of an underwater pipeline that transported natural gas from Egypt to Israel, a company partially owned by the bankrupt Ampal-American Israel Corp.

  • February 20, 2018

    Supreme Court Won't Take Up Atty's Suit Over $1.2M Fee

    The U.S. Supreme Court won’t review a New Jersey appeals panel’s decision saying that a disbarred attorney wasn’t entitled to the $1.2 million fee he took for his representation in a New York case, according to an order issued on Tuesday.

  • February 20, 2018

    $300M Emergency Loan Approved For Puerto Rico Electric Co.

    Puerto Rico’s ailing power utility on Monday was authorized to accept a $300 million unsecured loan from the commonwealth to stave off an imminent blackout, after the utility’s creditors successfully fought off an earlier $1 billion secured loan proposal.

  • February 16, 2018

    SDFL Adopts Guidelines For Cooperation On Int'l Bankruptcies

    The Southern District of Florida's bankruptcy court has adopted guidelines for communication and cooperation between courts in cross-border insolvency matters that practitioners say will help courts efficiently handle the increasing number of Chapter 15 cases filed in the region as its ties to Latin America continue to strengthen.

  • February 16, 2018

    Hedge Fund's $26.2M Bid Tops Ch. 11 Auction For Aerogroup

    Hedge fund Alden Global Capital emerged as the apparent winning bidder in Delaware on Friday for bankrupt shoe retailer Aerogroup International Inc., with a $26.175 million bid that capped a nearly 24-hour, sometimes “testy,” marathon auction.

  • February 16, 2018

    Muni Market Shaken By Puerto Rico Special Revenues Ruling

    Municipal bonds secured by pledged special revenue streams have long been prized as safe bets, but a recent ruling in Puerto Rico’s restructuring cases that payment on those obligations is not required in bankruptcy has riled investors and left legal experts confounded over a largely untested Bankruptcy Code provision.

  • February 16, 2018

    Takata Wins Nod For Ch. 11 Plan Confirmation, $1.6B Sale

    A Delaware bankruptcy judge agreed Friday to confirm Takata’s Chapter 11 plan that centers on a $1.6 billion sale to Key Safety Systems Inc. and uses proceeds to pay victims of Takata's dangerously defective air-bag inflators, after hearing that the major creditor groups were all on board.

  • February 16, 2018

    EFH Raises Questions Over Reserve Fund Interest Payments

    Bankrupt energy provider Energy Future Holdings Corp. made a hastily scheduled appearance Friday in Delaware court to ask for guidance on issues related to a $275 million fund reserve being created to cover a potential claim from a jilted sale partner.

  • February 16, 2018

    Weil's Role Part Of Probe Of Breitburn Conflict Claims

    A New York bankruptcy judge Friday said he would hold a hearing to address a Breitburn Energy Partners LP bondholder’s claim of conflicts of interest between a prospective stalking horse bidder, a Breitburn lienholder and Breitburn bankruptcy counsel Weil Gotshal & Manges LLP.

Expert Analysis

  • When Product Liability Claims Are Hidden From Bankruptcy

    Chad Eggspuehler

    Judicial estoppel is often used to dismiss product liability actions when a plaintiff failed to disclose potential claims during a prior bankruptcy proceeding. While state laws may rule out judicial estoppel defenses in certain multidistrict litigation courts, asserting the defense even where it is unlikely to prevail preserves the issue for appellate review, say Chad Eggspuehler and Melissa Kelly of Tucker Ellis LLP.

  • Court Wrongly Disallows Lender's Post-Bankruptcy Legal Fee

    Michael Cook

    At least five circuit courts have taken a sensible approach to allowing an undersecured creditor’s claim for legal fees. But there is still no uniformity in the lower courts, as evident in a North Carolina federal court's recent decision in Summitbridge v. Faison, says Michael Cook of Schulte Roth & Zabel LLP.

  • Why Stock Prices Of Insolvent Firms Can Still Be Positive

    J.B. Heaton

    When Cumulus Media filed for Chapter 11 protection last week, its market capitalization fell to under $3 million, but $3 million is still greater than zero. Was Cumulus solvent when it filed bankruptcy? The answer is almost surely no, and it is important that lawyers have a good understanding of the reasons why, says attorney J.B. Heaton.

  • A Secured Creditor’s Guide To Navigating Chapter 11

    Stephanie Lieb

    To a secured creditor, a borrower filing for Chapter 11 protection can present a daunting proposition — from digesting the schedules and first-day motions and tracking the many deadlines to developing and implementing a strategy to maximize potential recovery. Stephanie Lieb of Trenam Law provides a map to help creditors traverse the process and emerge as unscathed as possible.

  • The Billing Evolution: How Far Along Is Your Firm?

    Sharon Quaintance

    In a recent study, 20 out of 25 law firms surveyed have made billing process improvement a top priority for 2018. Firms can foster consistency and increase efficiency at all stages of their billing cycle by focusing on a few specific procedures, say Sharon Quaintance and Christine Indiano at HBR Consulting.

  • 10 Tips For Effective Practice Before The 5th Circ.

    Justin Woodard

    The Fifth Circuit is among the busiest federal circuit courts in the country. What can you do to increase your chances of reaching oral argument? And if given the opportunity, how can you present a persuasive argument? Former Fifth Circuit clerk Justin Woodard, an associate at Jones Walker LLP, shares some advice.

  • Series

    Judging A Book: Saris Reviews 'Locking Up Our Own'

    Judge Patti Saris

    Having just completed a six-year term as chair of the U.S. Sentencing Commission, I read Yale Law School professor James Forman's new book, "Locking Up Our Own: Crime and Punishment in Black America," with particular interest, says Judge Patti Saris, chief judge for the U.S. District Court for the District of Massachusetts.

  • Creditors Beware: New, Simplified Ch. 13 Comes At A Price

    Harris Winsberg

    Changes to the federal bankruptcy rules taking effect on Dec. 1 will likely result in Chapter 13 and other cases moving more swiftly toward confirmation, but this efficiency could be at the expense of preoccupied or otherwise lackadaisical creditors, say attorneys with Troutman Sanders LLP.

  • Exploring The New-Value Exception In Multidebtor Cases

    Steven Fink

    While debtors have attempted to invoke the new-value exception in the multidebtor context, doing so raises a number of questions, and there is a surprising dearth of case law addressing how the exception should be applied in multidebtor bankruptcies, say attorneys with the Law Office of Steven J. Fink PLLC and Orrick Herrington & Sutcliffe LLP.

  • Enforcing Judgment Against A Debtor's Spouse

    Craig Weiner

    In the rare instance when otherwise collectible assets are owned by a debtor’s spouse — who is not liable on the underlying judgment — a creditor must be determined and creative in order to recover on its judgment, say Craig Weiner and Michael Kolcun of Robins Kaplan LLP.