Bankruptcy

  • 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.

  • February 16, 2018

    Ex-Debevoise Partner Tapped To Help Atlantic City Recovery

    An ex-Debevoise & Plimpton LLP partner and onetime gubernatorial candidate has been tapped as special counsel to lead New Jersey's effort in returning Atlantic City to local control after more than a year into a state takeover of the struggling resort town's finances, state officials said.

  • February 16, 2018

    Convicted Dewey Exec's SEC Deal Hinges On Criminal Appeal

    A settlement between the U.S. Securities and Exchange Commission and former Dewey & LeBoeuf LLP chief financial officer Joel Sanders, who was convicted of fraud, rests on the outcome of Sanders' criminal appeal, a Manhattan federal judge heard Friday.

  • February 16, 2018

    Boston Herald Cleared For $12M Ch. 11 Sale To MediaNews

    The Boston Herald on Friday secured court approval for the tabloid's $11.98 million sale to hedge fund-controlled MediaNews Group, under a business-saving deal expected to close by March 28.

  • February 15, 2018

    Puerto Rico Electric Co. Denied Bid For Emergency Loan

    Access to electricity in Puerto Rico may be in short-term peril after a New York federal judge on Thursday denied the territory’s insolvent power utility access to $1 billion in emergency financing offered by the island’s central government, finding the superpriority lien attached to the loan unjustified.

  • February 15, 2018

    Dubious Timeline Saves Nursing Home Chain From OT Suit

    A Washington federal judge on Thursday dismissed a proposed collective action by former co-managers at national nursing home chain Holiday Retirement alleging the company illegally denied them overtime, saying the workers can’t sue because they hid their claims during a 2015 bankruptcy.

  • February 15, 2018

    Deals Rumor Mill: Thomson Reuters, Seadrill, Petrobras

    Thomson Reuters' chairman reportedly had concerns about the Blackstone-led offer for its financial and risk business, offshore drilling giant Seadrill is nearing a restructuring deal with bondholders and shipyards, and Petrobras set a late-March deadline for offers for a majority stake in a gas pipeline network.

  • February 15, 2018

    Insurers Cleared To Subpoena Asbestos Claim Info In Ch. 11

    A New York bankruptcy judge has told Rapid-American Corp. it can’t stop the trio of insurance companies it claims failed to cover it from asbestos claims from subpoenaing the company’s claims handlers.

  • February 15, 2018

    Appvion Lenders Slam Creditors' Bid To Challenge Liens

    Secured creditors of specialty-paper maker Appvion Inc. objected late Wednesday in Delaware bankruptcy court to the official unsecured creditors committee's request to challenge the liens of the secured creditors, saying the clock has run out on such claims.

  • February 15, 2018

    $380M Trade Secrets Claim Against Avaya Gets Pushback

    SAE Power Inc. faced an uphill battle Thursday as it tried to convince a New York bankruptcy court that its trade secrets claim against bankrupt Avaya Inc. should be valued at $380 million, rather than the $1 million or so Avaya says it’s worth.

Expert Analysis

  • The Art Of The Litigation Funding Deal

    Julia Gewolb

    As litigation funding becomes more widespread, greater complexity and variability in funding deals are to be expected. All claimants should consider certain key questions on the economics of single-case funding when considering or comparing funding terms, says Julia Gewolb of Bentham IMF.

  • Smart Contracts Need Smart Corporate Lawyers

    Matthew O’Toole

    Given the operational and security risks involved, and the substantial digital asset values transacted, the rise of distributed ledger technology and smart contracts will create new opportunities and responsibilities for transactional lawyers, say attorneys with Potter Anderson Corroon LLP.

  • Another Bankruptcy Discharge Case Before High Court

    Thomas Byrne

    The government’s once-sterling record of victories in bankruptcy cases before the U.S. Supreme Court has been dinged in recent years, but the odds still would have to favor the government's side in Lamar Archer & Cofrin v. Appling, where the Supreme Court will weigh in again on one of the most litigated issues in bankruptcy, says Thomas Byrne of Eversheds Sutherland.

  • How To Fix Your Broken Client Teams

    Mike O'Horo

    Law firms claim they create client teams to improve service. Clients aren’t fooled, describing these initiatives as “thinly veiled sales campaigns.” Until firms and client teams begin to apply a number of principles consistently, they will continue to fail and further erode clients’ trust, says legal industry coach Mike O’Horo.

  • Cook Inlet Decision Rightly Protects Deemed Consolidation

    Darren Azman

    The Alaska bankruptcy court's recent ruling in Cook Inlet Energy should give debtors confidence that consolidating for a limited purpose does not open them up to the liabilities associated with substantive consolidation. The ability to retain their preferred structure can have a profound impact on debtors, with far-reaching implications for financing and tax matters, say Darren Azman and Michael Galen of McDermott Will & Emery LLP.

  • The Bankruptcy Eligibility Of Quasi-Government Entities

    James Heiser

    In cases where a not-for-profit corporation is closely related to or controlled by a governmental unit, a creditor may challenge the corporation’s eligibility to file for bankruptcy. An Illinois bankruptcy judge's decision in Lombard Public Facilities is a reminder that eligibility is a fact-specific inquiry, say attorneys with Chapman and Cutler LLP.

  • How To Serve Your Blind Client Effectively

    Julia Satti Cosentino

    While a client’s visual impairment can create challenges for an attorney, it also can open up an opportunity for both attorney and client to learn from each other. By taking steps to better assist clients who are blind or visually impaired, attorneys can become more perceptive and effective advisers overall, say Julia Satti Cosentino and Nicholas Stabile of Nutter McClennen & Fish LLP.

  • Per Plan Or Per Debtor? New Ruling Has Precedential Value

    Luke Barefoot

    While lower courts remain split on the question, the Ninth Circuit in Transwest Resort Properties recently provided the first circuit-level ruling on whether the impaired accepting class requirement applies to bankruptcy plan confirmation on a per-plan or a per-debtor basis. The opinion will have persuasive weight for lower courts that have not previously weighed in, say Luke Barefoot and Dan Soltman of Cleary Gottlieb Steen & Hamilton LLP.

  • Opinion

    Evolving Due Process In The Digital Age

    Stephen Kane

    Because courts have not modernized as quickly as companies like Amazon, Tesla and Apple, Americans are becoming increasingly dissatisfied, but technological innovations may be able to help Americans access their due process, says Stephen Kane of FairClaims.

  • Under New Tax Law, Time Is Running Out For Ponzi Victims

    Kevin Diamond

    Counsel representing victims of Ponzi schemes should note that the Tax Cuts and Jobs Act eliminates the theft tax loss provisions of the Internal Revenue Code for tax years after 2017. The time to act is now, before this important tax benefit goes away, says Kevin Diamond of Rico Murphy & Diamond LLP.