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Bankruptcy

  • February 15, 2019

    Wells Fargo Wants Quick OK On Samuels Jewelers Credit Bid

    Wells Fargo told a Delaware bankruptcy judge Friday that its $16 million credit bid for specialty retailer Samuels Jewelers Inc.’s assets should be approved quickly as the debtor is in default under the bank’s post-petition lending facility and no other bidders have emerged.

  • February 15, 2019

    Ex-Vinson & Elkins Atty Joins Pillsbury In NY

    Pillsbury Winthrop Shaw Pittman LLP has added a former Vinson & Elkins LLP commercial litigator to its New York City office as a partner.

  • February 15, 2019

    Sprawling $1B Platinum Case Finally Going To Trial

    The $1 billion fraud case against four insiders at failed hedge fund manager Platinum Partners is going to trial in Brooklyn on Tuesday, setting up a courtroom showdown two years in the making.

  • February 15, 2019

    Whiteford Taylor's Bankruptcy Team Adds Veteran In Delaware

    Globally recognized bankruptcy practitioner Marc Abrams has joined Whiteford Taylor & Preston LLP’s Wilmington, Delaware, office, bringing his 40 years of experience in corporate restructuring and cross-border insolvency proceedings back to The First State, the firm announced Monday.

  • February 15, 2019

    Great Eastern Energy Hits Ch. 11 In Del. With $61M Debt

    The parent of northeast electricity and natural gas supplier Great Eastern Energy took the business into a $61 million Chapter 11 in Delaware late Thursday after a series of defaults on agreements with creditors led by interests of Macquarie Investments.

  • February 14, 2019

    Life Insurance Buyer Gets New Ch. 11 Stalking Horse Bidder

    A bankrupt purchaser of life insurance policies from wealthy policyholders announced Thursday that it will pursue a Chapter 11 auction of its portfolio of policies with a $5.65 million offer from a new stalking horse bidder that proposes less costly bid protections than a prior offer did.

  • February 14, 2019

    Puerto Rico Fed. Board Sues For Island Senate's Financial Info

    The federally appointed board overseeing Puerto Rico's financial overhaul announced Thursday that it has filed a complaint to compel the production of documents from the territory's Senate to get a fuller understanding of the island government's bank account balances.

  • February 14, 2019

    Retailer Shopko Seeks To Investigate McKesson In Ch. 11

    Midwestern big box retailer Specialty Retail Shops Holding Corp., better known as Shopko, has asked a Nebraska bankruptcy court to allow it to investigate its claims that pharmaceutical distributor McKesson Corp. has overcharged it millions of dollars for drugs.

  • February 14, 2019

    Bankrupt Imerys Dropped From Dying Woman’s J&J Talc Trial

    Newly bankrupt Imerys Talc is no longer a defendant in a trial over whether Johnson & Johnson’s talcum-made baby powder contained asbestos that caused a dying woman’s cancer, a California judge said Thursday, but he asked jurors not to speculate on why the talc supplier is no longer in the case.

  • February 14, 2019

    UST Wants New Asbestos Claims Rep In Maremont Ch. 11

    The Office of the U.S. Trustee urged a Delaware bankruptcy judge Thursday to require an independent search for an asbestos trust future claims representative in the Chapter 11 of former automotive parts maker Maremont Corp., citing a need to assure independence in the job.

  • February 14, 2019

    Promise Healthcare's $35M Ch. 11 Sale Of 2 Hospitals OK'd

    A Delaware judge on Thursday gave his nod to Promise Healthcare Group LLC's roughly $35 million sale of two hospitals in Louisiana and plans to move forward with the sale of a Los Angeles hospital with a $7 million cash offer from a stalking horse bidder in place.

  • February 14, 2019

    Opt-Out Releases Prove Problematic In Aegean Marine Ch. 11

    Distressed Greek refueling company Aegean Marine Petroleum Network Inc. must adjust its attempt to bind creditors to third party litigation releases in its Chapter 11 plan, a New York bankruptcy judge said Thursday, telling lawyers for the company he will not "manufacture consent" by approving an "opt out" provision.

  • February 14, 2019

    Pellet Cos. Trustee's Suit Belongs In State Court: Judge

    A Louisiana federal magistrate judge has recommended that a trustee’s suit against a German insurance company that issued a policy to a now-bankrupt heating pellet company be sent back to state court, holding that removal wasn’t appropriate because an officer of the debtor hadn’t agreed to it.

  • February 14, 2019

    Kasowitz Benson, Pachulski Can Rep White Eagle In Ch. 11

    Bankrupt life insurance settlement investor White Eagle Asset Portfolio LP received a Delaware judge’s permission Thursday to retain a pair of law firms in its Chapter 11 case despite arguments from its secured lender that the firms had conflicts with non-debtor affiliates of the company.

  • February 14, 2019

    Avenatti Loses Control Of Firm Amid Claim He Hid Millions

    Michael Avenatti has agreed to give up control of his bankrupt law firm's finances after a former partner accused Avenatti of "brazen acts of bankruptcy fraud," including hiding million of dollars and surreptitiously stealing artwork from the firm's former office in an attempt to duck a $10 million judgment. 

  • February 14, 2019

    Salini Offers $254M For Stake In Struggling Rival Astaldi

    Italian construction firm Astaldi on Thursday approved a deal that would divest some of its assets to resolve claims of certain creditors and see rival industrial group Salini Impregilo SpA pay €225 million ($253.8 million) for a majority stake.

  • February 13, 2019

    Bankruptcy Judge Scolds PG&E Over Last-Minute Filings

    A California bankruptcy judge on Wednesday reprimanded Pacific Gas and Electric Co. during a hearing on its request to pay wages and benefits to 24,000 employees, saying it needs to do a better job filing motions in a timely fashion and supporting its requests.

  • February 13, 2019

    Nassar Victims' Payout Hangs On Fight With USAG's Insurers

    USA Gymnastics and its insurers are battling in bankruptcy court over coverage for up to $150 million in sexual abuse claims, a dispute that will determine how much money abuse victims can recover and set the stage for similar insurance fights in sexual abuse scandals in other Olympic sports.

  • February 13, 2019

    Aegean Marine Fights Pushback Over Ch. 11 Plan Releases

    A group of investors suing ailing Greek refueling company Aegean Marine Petroleum Network Inc. for securities fraud and the federal bankruptcy watchdog have taken the company to task for what they call overly broad third-party releases in its proposed Chapter 11 plan, accusations the debtor denied in a follow-up filing.

  • February 13, 2019

    Ditech Cleared To Tap $1.9B Ch. 11 DIP Package

    Bankrupt mortgage lender and servicer Ditech Holding Corp. received interim approval Wednesday to access a $1.9 billion debtor-in-possession financing package, among other requests for initial relief, as it kicks off a Chapter 11 bid to cut more than $800 million in debt for the second time in two years.

Expert Analysis

  • What Happens When Crypto Meets Insolvency

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    Shaya Rochester and Lindsay Lersner of Katten Muchin Rosenman LLP address four issues likely to be found at the intersection of cryptocurrency and insolvency — ownership, classification, volatility, and treatment under the Uniform Commercial Code.

  • Why NY's Sutton 58 Decision Won't Rattle Real Estate Finance

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    Though some have claimed the New York Appellate Division, First Department's ruling in Sutton 58 v. Pilevsky will have earth-shattering consequences, the deceptively narrow decision does not undermine the contract-based foundation upon which recourse carveout guarantees are built, say attorneys at Fried Frank Harris Shriver & Jacobson LLP.

  • Why Proper Document Redaction May Be An Ethical Duty

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    Paul Manafort's attorneys recently filed a court document containing incompletely redacted information, highlighting the need for attorneys to become competent at redaction — or at least at verifying that redaction has been performed correctly. Failure to do either could be construed as legal malpractice, says Byeongsook Seo of Snell & Wilmer LLP.

  • Why High Court's Schein Decision Is Dangerous For Debtors

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    In a Jan. 8 decision, the U.S. Supreme Court further defined the allocation of power between arbitral tribunals and bankruptcy courts by striking down an exception that had allowed courts to decide whether a claim belongs in arbitration, says Shane Ramsey of Nelson Mullins Riley & Scarborough LLP. 

  • Series

    Why I Became A Lawyer: A Refugee's Journey Of Firsts

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    Even as a child in war-torn Iran, I began to develop a sense of justice and a desire for equality and the rule of law. These instincts ultimately guided me to become a federal prosecutor, and now a partner in private practice, says Raymond Aghaian of Kilpatrick Townsend & Stockton LLP.

  • Keeping PR Strategy Communications Privileged: Part 2

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    Determining whether and to what extent your legal team should invite a PR agent into privileged communications requires weighing many factors — including the unsettled and evolving case law on whether such involvement destroys privilege protection and creates discoverable, usable evidence, says Jeffrey Schomig of WilmerHale.

  • Keeping PR Strategy Communications Privileged: Part 1

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    Companies faced with high-profile litigation often turn to public relations firms to help defend their reputations and maintain shareholder confidence. But recent cases are a reminder that internal PR firm documents face uncertain privilege protection, even when those documents are generated in support of a broader legal strategy, says Jeffrey Schomig of WilmerHale.

  • What Lawyers Can Do To Prevent And Combat Burnout

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    Lawyer burnout has been called a “romantic disorder” because it is characteristic of a work ethic admired in the legal culture. But the negative impacts of burnout are real and lawyers need to recognize the signs and solutions, says Jennifer Gibbs of Zelle LLP.

  • PG&E Highlights Circuit Split On Power Purchase Agreements

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    Along with its historic bankruptcy filing this week, Pacific Gas and Electric Corp. filed a motion regarding the status of its power purchase agreements, setting up a showdown with FERC and bringing this unsettled legal question to the fore, say J. Paul Forrester and Andrew Young of Mayer Brown LLP.

  • 3 Aspects Of Value Preservation For Restructuring Cos.

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    Three papers presented at the American Economic Association conference this month analyzed mechanisms to protect and preserve the value of distressed companies attempting to navigate the restructuring process, say consultants at Analysis Group Inc.