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Bankruptcy

  • January 17, 2019

    Gymboree Hits 2nd Ch. 11, Will Liquidate Most Stores

    Less than a year and a half after leaving Chapter 11, children’s clothing retailer Gymboree Group Inc. reentered bankruptcy Thursday with $212 million in debt, saying this time it will not be coming out the other side.

  • January 16, 2019

    Puerto Rico Creditors Press For Sales Tax Plan Approval

    Major stakeholders engulfed in Puerto Rico's bankruptcy-like proceedings urged a federal judge on Wednesday to approve a watershed settlement designed to restructure nearly $18 billion in debt carried by the Puerto Rico Sales Tax Corp., or COFINA, saying it is the best way to avert years of protracted litigation.

  • January 16, 2019

    Westmoreland Says It Will Seek To End Union Contract

    Saying it was unable to get the benefits concessions it needs under its postpetition financing arrangement, Westmoreland Coal told a Texas bankruptcy judge Wednesday it plans to ask permission to reject its contracts with the United Mine Workers of America.

  • January 16, 2019

    Republic Metals Lenders Fight Ch. 11 Examiner Appointment

    The senior lenders for Republic Metals Refining Corp. on Wednesday told a New York bankruptcy judge that a U.S. Trustee request for an independent examiner to check on the ownership of the company’s inventory would be a waste of time and money.

  • January 16, 2019

    LBI Media’s Ch. 11 Disclosures Get Nod In Delaware

    A Delaware bankruptcy judge gave his nod to the Chapter 11 plan disclosure statement of bankrupt LBI Media Inc. after objections from junior noteholders pressing for further details were worked out prior to the hearing.

  • January 16, 2019

    Beauty Brands Bidder Says 23-Store Offer Is Best Available

    The founders of bankrupt cosmetics retailer Beauty Brands told a Delaware Bankruptcy Court judge Wednesday they presented the debtor with an offer to acquire 23 of its stores and continue operating them as a going concern, calling the bid superior to the stalking horse bid in a chain-wide liquidation plan.

  • January 16, 2019

    PG&E's Ch. 11 Is Climate Change Wake-Up Call For Utilities

    Pacific Gas & Electric Co.'s plan to seek bankruptcy protection to address crippling liabilities for California wildfires should ring alarm bells for utilities, regulators and lawmakers in other states and force them to examine whether the current utility business model can accommodate climate change-related risks to energy infrastructure, policy experts say.

  • January 16, 2019

    Calif. County Sues PG&E Over Deadly Nov. Wildfire

    Butte County in Northern California has sued Pacific Gas & Electric Co. in state court over the deadly wildfire that ravaged the county and killed 86 people last year, alleging the utility disregarded safety to increase its own profits.

  • January 15, 2019

    Aly Raisman's Nassar Suit Paused Pending USAG Ch. 11

    Olympic gold medal-winning gymnast Aly Raisman’s request to pause her suit over disgraced sports medicine doctor Larry Nassar’s sexual abuse was granted on Monday, after a California federal court agreed that a stay would help the parties assess the impact of the recent bankruptcy filing by USA Gymnastics, the sport's governing body.

  • January 15, 2019

    US Trustee Rips Bankrupt Makeup Co.'s $1.4M Exec Bonus Bid

    The U.S. Trustee’s Office on Tuesday asked a New York bankruptcy court to deny cosmetics maker Glansaol Holdings Inc.’s request to pay up to $1.4 million in executive bonuses, saying there was no proof the goals are a stretch or that bonuses won’t be going to insiders.

  • January 15, 2019

    Puerto Rico Fed Board Looks To Invalidate $6B In Bond Debt

    A federally-appointed board tasked with overseeing Puerto Rico’s monumental debt restructuring joined with the island’s unsecured creditors Monday to demand that $6 billion in general obligation bond debt be wiped out, arguing the bonds violated provisions in the Puerto Rican Constitution when they were issued a few years ago.

  • January 15, 2019

    FirstEnergy Customer Violated Ch. 11 Stay, Judge Rules

    An Ohio federal judge agreed Tuesday that a Pennsylvania-based auto parts manufacturer’s move to cancel its deal to buy power from a bankrupt FirstEnergy Corp. subsidiary violated the company’s right to maintain its contractual relationships throughout Chapter 11 proceedings.

  • January 15, 2019

    LBI Noteholders Say Co. Cheated Them Out Of $129M

    A group of second-lien noteholders of Spanish language broadcaster LBI Media Inc. accused the company in Delaware bankruptcy court Tuesday of costing them $129.5 million by cutting a bad restructuring deal with a first-lien noteholder.

  • January 15, 2019

    Group Owes SEC $6.6M In Woodbridge Securities Probe

    Three people and two companies owe the U.S. Securities and Exchange Commission more than $6.6 million after a Florida federal judge on Monday entered judgment against them for allegedly selling unregistered securities of Woodbridge Group of Companies LLC, which collapsed last year after the SEC charged it with running a $1.2 billion Ponzi scheme.

  • January 14, 2019

    Del. Bankruptcy Judge Kevin J. Carey To Retire In August

    U.S. Bankruptcy Judge Kevin J. Carey will retire from the Delaware bench in August after nearly 14 years of presiding over insolvency cases in the state, the U.S. Bankruptcy Court for the District of Delaware announced Friday.

  • January 14, 2019

    Lender Says Life Settlement Co. Is Using Ch. 11 To Pay Parent

    The top secured lender to bankrupt life settlements venture White Eagle Asset Portfolio LP accused it of seeking to improperly pay the expenses of a non-debtor parent and urged a Delaware bankruptcy judge to reject a proposed cash management order for the case.

  • January 14, 2019

    10th Circ. Affirms Liberty's Win In Black Lung Coverage Row

    Liberty Mutual Fire Insurance Co. didn't breach any obligations to the ex-president of bankrupt Clemens Coal Co. when it failed to provide the company a policy with coverage for black lung disease claims, the Tenth Circuit affirmed on Monday, agreeing with a lower court that the former executive's case fails because the insurer owed no duty to him personally.

  • January 14, 2019

    Promise Healthcare Gets Nod For $3M Exec Bonus In Ch. 11

    A Delaware bankruptcy judge on Monday signed off on a revised version of bankrupt hospital operator Promise Healthcare’s plan to pay up to $3 million in bonus pay to an executive if certain targets are met in its planned Chapter 11 sale of assets, after concerns were raised about a prior proposal for the incentive pay.

  • January 14, 2019

    Aegean Marine Gets OK On $535M DIP, $681M Purchase Bids

    Ailing Greek refueling company Aegean Marine Petroleum Network Inc. received approval from a New York bankruptcy court on Monday to proceed with a $535 million debtor-in-possession loan and a newly revised $681 million purchase offer, both from competitor and prepetition lender Mercuria Energy Group Ltd.

  • January 14, 2019

    Pharma. Co. Egalet's Ch. 11 Confirmed In Delaware

    A Delaware bankruptcy judge on Monday approved pharmaceutical company Egalet Corp.'s Chapter 11, just a little more than two months after the company entered bankruptcy citing shifts in the abuse-deterrent drug market and announcing plans to acquire four anti-inflammatory drugs from another company to boost revenue.

Expert Analysis

  • 'Flexible Work' Makes Freelancing More Viable In BigLaw

    Elizabeth Black

    The rise of remote work capabilities and advances in technology are making flexible, freelance legal work a more accessible career option for corporate attorneys, say Elizabeth Black and Sara Eng of InCloudCounsel.

  • Opinion

    A Call To Permit Judicial Substitution In MDL Proceedings

    Doug Smith

    While several proposed changes to multidistrict litigation procedures may be warranted and appropriate, consideration should be given to a modest modification of the judicial selection process, says Doug Smith of Kirkland & Ellis LLP.

  • Guest Feature

    Judge Weinstein On Activism, Gobbledegook, Going Robeless

    Judge Jack Weinstein

    Judge Jack Weinstein has served in the Eastern District of New York for over half a century. White and Williams LLP attorney Randy Maniloff visited his Brooklyn office to find out what makes the 97-year-old jurist tick.

  • What To Expect From Technology-Assisted Review In 2019

    Thomas Gricks

    2018 will be remembered as a transition year for technology-assisted review, and 2019 will likely see a continued focus on how we use TAR, with refinement and expansion across the board, says Thomas Gricks of Catalyst Repository Systems LLC.

  • 2019 Will Bring More Good News For Litigation Finance

    Alan Guy

    Last year saw another round of year-over-year growth in litigation finance, as debates shifted from whether it should be permitted to how it can best be managed. The exciting news, says Alan Guy of Vannin Capital PCC, is that 2019 seems likely to bring more of the same.

  • Why More Law Firms Will Embrace Remote Work In 2019

    Tomas Suros

    Leveraging technology in a fiercely competitive market is a key factor driving law firms toward technology adoption in 2019, as they face growing demand from legal talent and clients for the ability to connect, access and control information whenever and wherever needed, says Tomas Suros of tech provider AbacusNext.

  • 5 Most-Read Legal Industry Guests Of 2018

    iStock-1056065752.jpg

    Law360 guest authors weighed in on a host of key legal industry issues this year, ranging from in-house tips for success and open secrets about BigLaw diversity to criticisms of the equity partnership and associate salary models. Here are five articles that captured the most attention.

  • Schools Suffer When Debtor Tuition Payments Are Recovered

    Michael Cook

    Two lower courts have added to the murky case law addressing a bankruptcy trustee’s ability to recover a debtor’s tuition payments for their children, leading to draconian results for innocent schools, say Michael Cook and James Bentley of Schulte Roth & Zabel LLP.

  • Receiverships May Be Particularly Useful For New Industries

    Ira Bodenstein

    Now more than ever, receiverships can help troubled enterprises when bankruptcy is not an option. In addition to Ponzi schemes and securities and real estate fraud, receiverships are increasingly used in cryptocurrency matters and cases of EB-5 immigrant investor program fraud, say Ira Bodenstein of Fox Rothschild LLP and Brian Soper of BMS.

  • Series

    Judging A Book: Mills Reviews 'Mississippi's Federal Courts'

    Judge Michael Mills

    ​​David M. Hargrove's​ new book​,​ "Mississippi’s Federal Courts: A History," is a remarkably candid portrait of the characters and courts serving the state's federal judiciary from 1798 on, and contributes new scholarship on how judges were nominated during the civil rights era, says U.S. District Judge Michael Mills of the Northern District of Mississippi.