Bankruptcy

  • January 29, 2024

    Kidde-Fenwal Asks To Extend Ch. 11 Mediation Another Month

    Bankrupt fire-suppression system company Kidde-Fenwal Inc. asked a Delaware judge on Monday to extend ongoing mediation between the company, unsecured creditors and plaintiffs in litigation who say they were injured by so-called forever chemicals in firefighting foam and government claimants in its Chapter 11 case.

  • January 29, 2024

    LaPierre Takes Some Blame, Backing NRA's 'Victim' Defense

    Former longtime National Rifle Association CEO Wayne LaPierre told jurors in the New York attorney general's fraud trial Monday that he failed to tell the NRA board about certain private jet spending and vendor relationships, aligning with the gun group's defense that it was in the dark about his wrongdoing.

  • January 29, 2024

    FTX Strikes $16M Deal To End Donations Clawback Suit

    FTX has asked Delaware's bankruptcy court to approve a $16 million settlement scrapping an adversary action the cryptocurrency exchange operator leveled to recover millions of dollars in customer and company funds that were transferred as philanthropic gifts to entities tied to founder Sam Bankman-Fried.

  • January 29, 2024

    Yellow Corp. Calls Pension Arbitration Demand 'Nonsense'

    Bankrupt trucking firm Yellow Corp. has called the Central States Pension Fund's arbitration demand for $4.8 billion in pension liability claims "nonsense," because the fund has already acquiesced in the bankruptcy court's jurisdiction over the claims.

  • January 29, 2024

    Judge Might Screen Stimwave Ch. 11 Filings To Avoid 'Chaos'

    A Delaware bankruptcy judge said Monday that filings from the ex-CEO of Stimwave Technologies and two of her relatives had created "chaos" in the pain management device venture's Chapter 11 case and he was considering screening their motions.

  • January 29, 2024

    Catching Up With Delaware's Chancery Court

    A transportation services company and cryptocurrency fund both exited litigation, a grill maker and EV-charging company fired up new cases, and biotechs bandaged old wounds while judges fast-tracked a musical power struggle and unwound a REIT deal. All told, a typical week for Delaware's court of equity.

  • January 29, 2024

    Shumaker Can't Get Double Fees For Appeal, Wilkes Says

    An unpersuasive argument doesn't make an appeal frivolous or sanctionable, Wilkes & Associates PA has told a Florida federal court, urging it to reject Shumaker Loop & Kendrick LLP's request to double a bankruptcy court's fee award.

  • January 29, 2024

    Paul Hastings Boosts Restructuring Growth With Kirkland Atty

    Paul Hastings LLP is continuing to expand its restructuring practice following the recruitment of an 18-partner team from Stroock & Stroock & Lavan LLP in 2022, announcing Monday that it had hired a former Kirkland & Ellis LLP attorney in New York.

  • January 29, 2024

    ​​​​​​​China Evergrande Ordered In Hong Kong To Liquidate

    A Hong Kong court on Monday ordered the liquidation of Chinese real estate giant China Evergrande Group and appointed Alvarez & Marsal Asia Ltd. to handle the matter.

  • January 26, 2024

    NRA Paid For Luxury Expenses, LaPierre Confirms

    National Rifle Association CEO Wayne LaPierre on Friday took the witness stand in the trial over the New York attorney general's claims of widespread corruption at the nonprofit gun rights group, confirming details about his opulent lifestyle that was bankrolled in part by the NRA itself.

  • January 26, 2024

    TIAA Sues Ex-SVB Execs Over Losses From Bank's Failure

    Former directors and executives of Silicon Valley Bank have been hit with a suit in California federal court by financial services giant TIAA over losses it allegedly suffered when the bank imploded under the weight of a bulging portfolio of interest rate-sensitive assets.

  • January 26, 2024

    Kirkland, Other Firms Seek $23M Fees In Cyxtera Ch. 11

    Law firms and professional advisers have filed final fee applications exceeding $23 million in the New Jersey bankruptcy case of data center provider Cyxtera Technologies Inc., including a request from Kirkland & Ellis LLP for $14.5 million in legal fees.

  • January 26, 2024

    Unpaid Royalties Not Ch. 11 Estate Property, 3rd Circ. Says

    Underpaid royalties on natural gas from leased land are property of the landowners under Colorado law, the Third Circuit has ruled, overturning a Delaware bankruptcy court's finding that the disputed funds belonged to the Chapter 11 estate of a former drilling company.

  • January 26, 2024

    Pa. Judge OKs Stream TV Ch. 11 Trustee, Del. Debt Action

    A Pennsylvania bankruptcy judge has ordered a trustee to take over the Chapter 11 bankruptcy proceedings of 3D television maker Stream TV Networks and subsidiary Technovative Inc., while also allowing a Delaware Chancery Court case seeking to establish control of Technovative to go forward.

  • January 26, 2024

    Ebix Ch. 11 Financing Survives Challenge To $70M Roll Up

    A Texas bankruptcy judge approved a $105 million post-petition financing package in the case of insurance software company Ebix Inc. on Friday, overruling an objection from the Office of the U.S. Trustee concerning a rolling up of $70 million in existing debt.

  • January 26, 2024

    Insurers Say Imerys' Mediation Request Cuts Them Out

    A group of insurers has asked the Delaware bankruptcy court to reject bankrupt talc producer Imerys' bid to extend mediation over its Chapter 11 plan, saying the request is really meant to cut the insurers out of mediation.

  • January 26, 2024

    COVID-19 Sends Canadian '4D' Movie Co. To Ch. 15 In Del.

    Canadian "4D" movie company SimEx-Iwerks Entertainment filed for Chapter 15 recognition of its Canadian restructuring proceedings Thursday in Delaware bankruptcy court after it said revenue didn't recover following the COVID-19 pandemic.

  • January 26, 2024

    Patent Manager IPwe Plans Ch. 11 Sale With Shareholder Bid

    Patent trading platform operator IPwe received approval from a Delaware bankruptcy judge Friday to take out up to $500,000 in Chapter 11 financing the company says it will need to stay afloat long enough to put its assets on the block.

  • February 08, 2024

    Law360 Seeks Members For Its 2024 Editorial Boards

    Law360 is looking for avid readers of its publications to serve as members of its 2024 editorial advisory boards.

  • January 26, 2024

    Piper Aircraft Asks Fla. Court To Modify Claims Trust

    Piper Aircraft Inc. — which emerged from bankruptcy in 1995 with a trust meant to handle future claims for injuries caused by faulty aircraft — has sued to modify the 28-year-old trust, which it says holds $70 million in assets but is paying out very little in claims each year, while burning through millions in legal fees.

  • January 26, 2024

    Marketing Co.'s Unsecured Creditors Blast Sale Proposal

    The unsecured creditors in Manhattan-based marketing firm Troika Media Group's Chapter 11 case have asked a New York bankruptcy judge to reject the company's plan for a sale to its secured lender, alleging the transaction would only benefit secured lenders and leave the business administratively insolvent.

  • January 26, 2024

    Bankrupt Water Gremlin Says It Wants To Survey Tort Claims

    Water Gremlin Co. told a Delaware bankruptcy judge Friday that it is in talks with environmental regulators to close the sale of its lead battery terminal and fishing sinker plant while it tries to get a handle on what kind of tort liability the plant is leaving it with.

  • January 25, 2024

    Eye Care Tech Co. Gets Tentative OK For $8M DIP

    Optometry software maker Eye Care Leaders received tentative approval Thursday from a Texas bankruptcy judge to tap into $8 million of debtor-in-possession financing from a private equity firm looking to buy the company in a Chapter 11 sale.

  • January 25, 2024

    Insurer Can't Block Chapter 11 Asbestos Plan, Justices Told

    Two companies seeking Chapter 11 bankruptcy protection with asbestos claims alongside asbestos claimant representatives urged the U.S. Supreme Court to reject an insurer's opposition to their proposed reorganization plan, in a case that could change who can participate in the often protracted bankruptcy process.

  • January 25, 2024

    Gambling Biz Ch. 11 Approval Must Be Undone, Court Told

    The liquidating trustee for the former parent of a gambling machine manufacturer has urged a Delaware bankruptcy court to unwind the confirmation of the subsidiary's Chapter 11 plan, arguing it should get to explore allegations leveled by the underlying business's new owners that the old management conspired to "loot" the company.

Expert Analysis

  • Pa. Ruling Sheds New Light On Ch. 9 Eligibility Requirements

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    A Pennsylvania bankruptcy court’s recent ruling that the city of Chester qualified for municipal bankruptcy relief provides insight into the finer points of Chapter 9 eligibility, including the requirements for debtor insolvency, state law authorization and good faith negotiation, say attorneys at Cadwalader.

  • Lawyer Discernment Is Critical In The World Of AI

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    In light of growing practical concerns about risks and challenges posed by artificial intelligence, lawyers' experience with the skill of discernment will position them to help address new ethical and moral dilemmas and ensure that AI is developed and deployed in a way that benefits society as a whole, says Jennifer Gibbs at Zelle.

  • What To Know About Filing SVB, Signature Creditor Claims

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    The Federal Deposit Insurance Corporation has advised companies that provided services to Silicon Valley Bank or Signature Bank before they closed to file a creditor claim, but the category is broad and even those who only think they may be a creditor of the failed banks should file a proof of claim ahead of the July deadlines, say David Bizar and William Hanlon at Seyfarth.

  • SVB's Collapse Is A Setback For Tech Startups

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    Silicon Valley Bank's collapse and absorption into a more traditional bank may diminish funding opportunities for tech startups in the short run, though alternative lenders could step up to fill the gap, says Chris Spillman at Biztech Lawyers.

  • Don't Forget Alumni Engagement When Merging Law Firms

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    Neglecting law firm alumni programs after a merger can sever the deep connections attorneys have with their former firms, but by combining good data management and creating new opportunities to reconnect, firms can make every member in their expanded network of colleagues feel valued, say Clare Roath and Erin Warner at Troutman Pepper.

  • A Convergence Of Factors Hurts SVB Securities Class Action

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    Shareholders have filed a class action against Silicon Valley Bank and its senior executives alleging securities fraud, but the unique circumstances leading up to the collapse, like higher interest rates and an asset-liability mismatch, complicate the task of assigning sole responsibility for SVB's downfall, say Atanu Saha and Narinder Walia at StoneTurn.

  • Without Stronger Due Diligence, Attys Risk AML Regulation

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    Amid increasing pressure to mitigate money laundering and terrorism financing risks in gatekeeper professions, the legal industry will need to clarify and strengthen existing client due diligence measures — or risk the federal regulation attorneys have long sought to avoid, says Jeremy Glicksman at the Nassau County District Attorney’s Office.

  • Failed Bank Execs Could Be Targets After Biden Proposals

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    Of President Joe Biden's three regulatory proposals following last month's bank collapses, legislation expanding the Federal Deposit Insurance Corporation's clawback authority would likely present the greatest risk to executives of failed banks going forward, say attorneys at Norton Rose.

  • Every Lawyer Can Act To Prevent Peer Suicide

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    Members of the legal industry can help prevent suicide among their colleagues, and better protect their own mental health, by learning the predictors and symptoms of depression among attorneys and knowing when and how to get practical aid to peers in crisis, says Joan Bibelhausen at Minnesota Lawyers Concerned for Lawyers.

  • Bank Failures Contribute To Increased Restructuring Activity

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    A look at recent turbulence in the regional banking sector shows the potential for a period of heightened regulatory scrutiny of current business practices and exposures, and that it’s likely the 2023 uptick in restructuring activity will continue, says Michael Eisenband at FTI Consulting.

  • Heed PCAOB's Warning On Proof-Of-Reserves Reports

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    While directed at investors, the Public Company Accounting Oversight Board's recent advisory on proof-of-reserves reports is a timely and stark warning to crypto entities, as well as their customers and accounting firms, to tread carefully in their reliance on these reports as proof of financial stability, say Patrick Bryan and Deborah Meshulam at DLA Piper.

  • Building On Successful Judicial Assignment Reform In Texas

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    Prompt action by the Judicial Conference could curtail judge shopping and improve the efficiency and procedural fairness of the federal courts by implementing random districtwide assignment of cases, which has recently proven successful in Texas patent litigation, says Dabney Carr at Troutman Pepper.

  • Opinion

    10th Circ. Ruling Could Gut Homeowners' Ch. 13 Safety Net

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    The Tenth Circuit’s recent ruling in Doll v. Goodman could spell the end of Chapter 13 protection for consumers in a number of states, and if the decision is replicated in other circuits, homeowners across the country could lose their homes for lack of a viable bankruptcy administration, says former U.S. Bankruptcy Judge Catherine Bauer, now at Signature Resolution.

  • A Curious Bankruptcy Case Where Bad Behavior's Overlooked

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    In the recent and somewhat unusual Shannon Rose Fasano case, an Idaho bankruptcy court ruled that the party making a late appeal request passed the excusable neglect test, despite the party's mistreatment of the judge and opposing counsel, and his default on a promissory note, says Daniel Lowenthal at Patterson Belknap.

  • Do Videoconferences Establish Jurisdiction With Defendants?

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    What it means to have minimum contacts in a foreign jurisdiction is changing as people become more accustomed to meeting via video, and defendants’ participation in videoconferencing may be used as a sword or a shield in courts’ personal jurisdiction analysis, says Patrick Hickey at Moye White.

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