Bankruptcy

  • June 21, 2017

    Whistleblowers, MDL Plaintiffs Object To $32M SunEd Deal

    Two former SunEdison Inc. officers with pending whistleblower suits against the bankrupt solar energy giant and the lead plaintiffs in a Securities Act multidistrict litigation have asked the New York bankruptcy court overseeing the case for assurances that their suits won’t be affected by a recent $32 million settlement with unsecured creditors.

  • June 21, 2017

    Unilife, Competitor Spar Over Ch. 11 Sale Doc Access

    An informal court dispute over a competitor’s disclosure demands in the Chapter 11 sale of wearable drug injection device-maker Unilife Corp. escalated Wednesday, with a Delaware judge ordering formal submissions from all sides.

  • June 21, 2017

    Aquion Asset Sale Price Balloons After Ch. 11 Auction

    A Chapter 11 auction of the assets of bankrupt saltwater battery maker Aquion Energy Inc. resulted in a sale price more than three times greater than the initial stalking horse bid for the company in a deal approved by the court Wednesday in Delaware.

  • June 21, 2017

    Creditors Object To New Motion For DIP Limitless Ch. 11

    The unsecured creditors of bankrupt Limitless Mobile LLC pushed back on Wednesday against the company’s request for a new $2 million debtor-in-possession loan to fund its ongoing reorganization efforts, telling a Delaware bankruptcy court it’s time to shut down the “failed” and “cash-burning” venture.

  • June 21, 2017

    Marblegate Picks New Fight With EDMC After 2nd Circ. Loss

    Marblegate Asset Management LLC, a lender to Education Management Corp. whose challenge to the troubled for-profit education firm’s restructuring plan was thwarted by the Second Circuit, has filed a new suit to make the borrower pay its debts under an alternate legal theory.

  • June 20, 2017

    'High Risk' DIP Loan Worries 'Soup Nazi' Distributor Judge

    A Delaware bankruptcy judge on Tuesday gave the company that distributes products from the chef that inspired the “Soup Nazi” character on “Seinfeld” interim approval to tap a $2 million post-petition loan described as “high risk,” but not before her concerns about the “very expensive” financing were addressed.

  • June 20, 2017

    National Events Restructuring Put On Hold Again

    The restructuring of defunct ticket reseller and possible Ponzi scheme vehicle National Events Holdings LLC was again put on pause Tuesday when a New York bankruptcy court concluded there simply wasn’t enough information to make a major ruling in the hopelessly tangled case just yet.

  • June 20, 2017

    Keystone Tube Clears First Ch. 11 Hearing On $400M Rework

    Bankrupt Keystone Tube Co. mostly breezed through an initial Delaware court hearing on its more than $400 million prepackaged debt restructuring Tuesday, with only scattered warnings of future dissent.

  • June 20, 2017

    Central Grocers Ch. 11 Cases Transferred To Ill. Court

    The Chapter 11 cases of Midwestern grocery chain Central Grocers Inc. will be administered in Illinois, where creditors filed an involuntary petition against the company two days before the company filed its own petitions, according to an order of transfer filed in Delaware on Tuesday.

  • June 20, 2017

    Biz Groups Say Bankruptcy Law Stops Lehman Swap Claim

    Three securities industry groups have urged a New York federal judge to uphold a bankruptcy court decision dismissing a Lehman Brothers unit’s bid to recover $1 billion from swaps transactions the firm says were wrongfully terminated, saying the terminations are protected by bankruptcy law.

  • June 20, 2017

    D&O Insurer Off The Hook In Capitol Bancorp Suit: 6th Circ.

    A split Sixth Circuit panel found Tuesday that Indian Harbor Insurance does not have to cover former officers of bankrupt Capitol Bancorp from an $18.8 million suit by the liquidation trustee, saying the pre- and post-Chapter 11 bank are the same entity for the purpose of the policy.

  • June 20, 2017

    Puerto Rico Blasted For Trying To Expand Bankruptcy Shield

    Groups of bondholders are accusing the Puerto Rico government of impermissibly attempting to protect government officials and conceal information that should be open to legal discovery by expanding the automatic litigation shield enabled by its court-monitored financial restructuring.

  • June 20, 2017

    Bankrupt Energy Co. Settles Preferred-Share Suit For $2.9M

    New Source Energy Partners LP investors asked a New York federal judge Monday to preliminarily sign off on a $2.85 million settlement that would resolve a shareholder disclosure suit over the bankrupt oil and gas company’s 2015 preferred-share offering.

  • June 20, 2017

    Insurance Co. Objects To Molycorp Bidder's $20.5M Bid

    Westchester Fire Insurance Co. on Monday asked the Delaware bankruptcy court to modify the sales agreement for Molycorp Minerals LLC's idled California rare earth mine to require the buyer to replace the $18 million in surety bonds that Westchester has issued on the mine.

  • June 20, 2017

    Millennium Labs Case May Doom Powerful Ch. 11 Tool

    The Millennium Labs Chapter 11 plan is quietly winding its way through the appellate system on a path that could spell the demise of the uncommon but powerful tool of liability releases granted without an affected creditor’s consent, a result experts say might drive increased conflict in bankruptcy cases.

  • June 20, 2017

    Helicopter Co. Investors Try Again To Get $3.9M Deal's OK

    Shareholders in a helicopter services company took a second shot Monday at gaining approval of a $3.9 million settlement, one month after a New York federal judge said preliminary approval of the deal could cause absent class members to think “the deck is stacked against them.”

  • June 19, 2017

    Patent Suit Adversary Blasts Muzak Parent's Ch. 15 Bid

    A creditor of in-store media provider Muzak and parent company Mood Media told a New York bankruptcy court on Friday that the companies' bid for Chapter 15 protection should fail to the extent that it will disrupt pending patent infringement claims potentially worth up to $130 million.

  • June 19, 2017

    Justice Sotomayor On Working A Room And The Post-Scalia Void

    Justice Sonia Sotomayor discusses the one thing she hates seeing at oral arguments, why diversity matters on the federal bench, and her habit of embracing audience members at live talks, in the first of two articles based on an exclusive interview with the 111th justice.

  • June 19, 2017

    EFH First-Lien Creditors Seek Lock-Down In New $6.3B DIP

    Energy Future Holdings Corp.'s first-lien note trustee filed a marked-up version of the company's proposed $6.3 billion Delaware Chapter 11 debtor-in-possession refinancing motion Monday, tucking in revisions to either nail down full payment of claims or qualify its support.

  • June 19, 2017

    Puerto Rico Creditors Rip Board's Plan To Solve Bond Conflict

    The federally appointed board overseeing Puerto Rico's restructuring is facing heat over its proposal to appoint independent agents to resolve competing claims over the territory’s sales tax revenues, as bondholders and insurers complained Friday that the agent selection process is flawed.

Expert Analysis

  • Due Diligence From The Lateral Partner’s Perspective

    Howard Flack

    Lateral candidates looking to make the last — or perhaps only — move of their career cannot afford to just stand by and let a law firm’s vetting process unfold on its own, says Howard Flack, a partner at Volta Talent Strategies who previously led lateral partner recruiting and integration at Hogan Lovells.

  • Lateral Partner Due Diligence: Where Should A Firm Begin?

    Howard Flack

    One frequently hears from leading malpractice insurers that one of the highest risk categories for law firms is that of lateral partners not sufficiently vetted during the recruitment process, says Howard Flack, a partner at Volta Talent Strategies Inc. who previously led lateral partner recruiting and integration at Hogan Lovells.

  • Has EU Really Made Cross-Border Asset Preservation Easier?

    Jef Klazen

    While the new European Account Preservation Order promises to harmonize protective account measures across 26 European Union member states, certain EAPO features mean it might not always be the best choice for judgment creditors deploying an international litigation strategy, say attorneys with Kobre & Kim LLP.

  • A Look At Credit Agreements In Insurance: Part 2

    Excerpt from Lexis Practice Advisor
    Daniel Rabinowitz

    Using the same standard credit agreement provisions for all types of borrowers and guarantors hurts both borrowers and lenders. This is especially true of borrowers and loan parties subject to insurance regulations and market conditions, say Daniel Rabinowitz and David Berg in the final part of this article.

  • A Look At Credit Agreements In Insurance: Part 1

    Excerpt from Lexis Practice Advisor
    Daniel Rabinowitz

    Insurance companies and insurance holding companies are subject to a complicated tangle of laws, regulations and market conditions, and therefore need special provisions in their credit agreements. Certain representations and warranties, conditions, and events of default must be modified to account for such borrowers, say Daniel Rabinowitz and David Berg of Kramer Levin Naftalis & Frankel LLP.

  • Sunnyslope Has Important Ramifications For Secured Lenders

    Michael Pankow

    The Ninth Circuit’s opinion may not be the last word in the matter of Sunnyslope Housing Limited Partnership, as the dissent implicitly urged U.S. Supreme Court review. In the meantime, the ruling is binding within the Ninth Circuit and will be persuasive precedent in other jurisdictions, say Samuel Kidder and Michael Pankow of Brownstein Hyatt Farber Schreck LLP.

  • Weekly Column

    Innovating For Wise Juries: Setting Trial Time Limits

    Stephen Susman

    This is the second in a series of articles discussing ideas proposed by the NYU School of Law Civil Jury Project to resuscitate the American jury trial. In this article, Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman argue for setting early and strict time limits in civil jury trials.

  • Opinion

    Big Business Lobby Tries To Hobble Litigation Finance, Again

    Allison Chock

    In its most recent petition advocating mandatory disclosure of litigation finance, the U.S. Chamber of Commerce simply rehashes the same arguments from its previous failed efforts to convince the Committee on Rules of Practice and Procedure of the dire implications of undisclosed funding relationships, say members of IMF Bentham Ltd.

  • A Slice Of MFN With That Incremental Loan

    Daniel Winick

    With ever expanding bargaining leverage, borrowers are negotiating creative ways to minimize "most-favored nation" provisions and related incremental loan protections. Clifford Chance LLP attorneys Daniel Winick and Andrew Young discuss some of the key MFN exceptions borrowers have been pursuing of late.

  • New Wave Of Lehman Litigation Appears To Be Imminent

    Philip Stein

    Thousands of mortgage lenders across the country either recently received, or will soon be receiving, from Lehman Brothers Holdings Inc. a document that may seem innocuous but likely presages a future lawsuit by LBHI against the recipient, says Philip Stein of Bilzin Sumberg Baena Price & Axelrod LLP.