Bankruptcy

  • May 22, 2017

    9th Circ. Says Union's Split Of American Airlines Equity OK

    The Ninth Circuit on Monday found that the Transport Workers Union of America hadn’t acted in bad faith when it cut out certain retirees from equity payments it received in an airline bankruptcy settlement, concluding the union hadn’t breached its duty of fair representation of its members.

  • May 22, 2017

    US Trustee Objects To 'No Info' Ryckman Creek Sale

    Wyoming natural gas storage venture Ryckman Creek Resources LLC overreached with a bankruptcy proposal for stalking-horse bid protections before naming the bidder or any initial offer, the Office of the U.S. Trustee said Friday in a Delaware federal court objection.

  • May 22, 2017

    Agent Provocateur Seeks $200K Loan From Prospective Buyer

    The bankrupt U.S. subsidiaries of high-end British lingerie company Agent Provocateur asked a New York bankruptcy court Friday for permission to take out a $200,000 debtor-in-possession loan from a prospective buyer to overcome any bumps on the road to the sale.

  • May 22, 2017

    Puerto Rican Agencies Added To Restructuring

    The number of entities engaged in Puerto Rico’s restructuring doubled over the weekend to four, as the board overseeing the U.S. territory’s bankruptcy-like process filed relief petitions for the island’s largest public pension system and its transportation agency, which both owe billions to debt holders.

  • May 22, 2017

    Maxus Ch. 11 Plan Confirmed With Support From Creditors

    Bankrupt oil and gas firm Maxus Energy Corp. received court approval Monday in Delaware for its Chapter 11 plan of liquidation after reaching consensus with its creditors to create three post-bankruptcy trusts to administer its assets.

  • May 22, 2017

    Bankrupt Avaya Attacked Over Survivor Benefits

    The widow of a former Avaya Inc. worker told a New York bankruptcy court on Sunday that she and other recipients of survivorship benefits cannot be shoved aside in the tech company's bankruptcy, citing appellate precedent in which an Avaya ancestor agreed with her characterization of the benefit.

  • May 22, 2017

    2nd Circ. OKs Nixing Of Fund's $230M Madoff Claim Sale

    A New York bankruptcy court was right to scrap the sale of a $230 million claim by the liquidator for an offshore Bernard L. Madoff feeder fund to a hedge fund, the Second Circuit affirmed on Monday, saying offshore Chapter 15 sales are still subject to U.S. court review.

  • May 22, 2017

    Embattled NYC Taxi Mogul Sues Accountants For Malpractice

    A New York City taxi mogul who’s been accused of trying to duck his creditors has gone on the offensive with a state court lawsuit accusing his accountants of failing their basic responsibilities and sharing information — some sensitive, some false — with third parties.

  • May 22, 2017

    High Court Won't Hear Additional Stale Debt Claim Row

    The U.S. Supreme Court on Monday declined to hear an appeal regarding a dismissed suit targeting a debt collector, one week after the high court ruled that debt collectors that knowingly pursue stale debt in bankruptcy proceedings are not subject to consumer protection lawsuits.

  • May 22, 2017

    Texas Driller ‘Death Spiral’ Suit Against Investor Dismissed

    A Texas federal judge on Monday dismissed oil and gas company Camber Energy Inc.'s suit against a key investor for allegedly forcing it to issue shares that drove down its stock value into a “death spiral” based on a strained interpretation of an “unconscionable” contract.

  • May 22, 2017

    CBO Says CHOICE Act Would Cut Deficit By $24B

    A government spending watchdog said Friday that primarily smaller banks would benefit from a Republican bill that would functionally repeal the Dodd-Frank Act, and that the bill would reduce the deficit by around $24 billion over 10 years.

  • May 22, 2017

    Justices Won’t Take Up Rabobank Tying Scheme Challenge

    The U.S. Supreme Court said Monday it would not review a law firm’s lawsuit accusing Rabobank NA of taking Chapter 7 estate funds from creditors through a tying scheme with a bankruptcy software company, leaving in place an appeals court’s finding that the bank’s actions were not anti-competitive.

  • May 22, 2017

    High Court Asked To Restore ERISA Suit Over Madoff Profits

    A New York engineers' union fund has petitioned the U.S. Supreme Court to revive its suit against the Bank of New York Mellon and Ivy Investment Management over decades-old Bernie Madoff investment advice, saying the Second Circuit violated bedrock principles of the Employee Retirement Income Security Act when affirming the case’s dismissal.

  • May 19, 2017

    Nursing Home Reaffirms Medicare Circuit Split In Cert Push

    A bankrupt Florida nursing home seeking U.S. Supreme Court review of its fight to keep a Medicare payment dispute in bankruptcy court used its reply brief to refute federal and state government attempts to downplay what it says is a circuit split on key issues.

  • May 19, 2017

    Standard Register Settles $10M Dispute With Liberty Mutual

    The bankruptcy trust of Standard Register Co. has settled a $10 million dispute over workers' comp insurance with Liberty Mutual Insurance Co., according to a motion filed Thursday in Delaware bankruptcy court.

  • May 19, 2017

    EFH Creditor Loses Doc Fight In Push For Ch. 11 Option

    Sweeping document requests from a hedge fund group pressing for an alternative Chapter 11 solution to twice-confounded Energy Future Holdings Corp. were blocked Friday, with a Delaware bankruptcy judge saying the burden outweighed a likely scant return.

  • May 19, 2017

    3rd Circ. Won't Boot Judge Off Bankruptcy Misconduct Appeal

    The Third Circuit on Friday shut down a former Syntax-Brillian Corp. shareholder’s bid to force a Delaware federal judge off appeal proceedings over alleged misconduct by Greenberg Traurig LLP during its representation of bankrupt Syntax, finding the investor’s “impugning” of the court was meritless.

  • May 19, 2017

    Trustee To Form Retiree Committee In Puerto Rico Bankruptcy

    The U.S. trustee on Friday told the federal judge overseeing Puerto Rico’s unprecedented bankruptcy case that it plans to appoint a retiree committee for those vested in the commonwealth’s public pension systems, making a rare call to begin the committee process without waiting for the court to rule on a pending motion.

  • May 19, 2017

    Marsh Supermarkets Proposes Exec Bonus Plan

    Bankrupt Marsh Supermarkets Holding LLC asked the Delaware bankruptcy court Thursday to approve an up to $1.175 million key employee incentive plan, saying the employees are necessary for the company to get the best price for its assets.

  • May 19, 2017

    Gardere Adds 3 Coats Rose Bankruptcy Attys In Dallas

    Gardere Wynne Sewell LLP announced on Thursday it has hired three former Coats Rose PC bankruptcy attorneys who have joined its financial restructuring and reorganization practice group in Dallas.

Expert Analysis

  • A Wake-Up Call For Banks To Comply With Bankruptcy Rules

    Jerome Walker

    The Office of the Comptroller of the Currency’s recent action against U.S. Bank shows that a bank may commit a safety and soundness violation by failing to comply with the bankruptcy laws and rules. The challenge for banks is to determine what changes need to be made to their internal controls, says Jerome Walker of Duane Morris LLP.

  • Shrewsbury And Its Impact On Delaware Foreclosure Actions

    David White

    The Delaware Supreme Court's recent decision in J.M. Shrewsbury v. Bank of New York Mellon affects lenders’ pursuit of foreclosure, but it likely affects counsel for lenders far more than the lenders themselves, say David White and Matthew Rifino of McCarter & English LLP.

  • Takeaways From Cumulus Media Refinancing Ruling

    Mark Chass

    Investors should anticipate that creditors may rely on two aspects of the recent decision in Cumulus Media v. JPMorgan Chase to challenge exchange offers, particularly those in which issuers seek to refinance unsecured debt with secured debt, says Mark Chass of Kramer Levin Naftalis & Frankel LLP.

  • In Tronox, 2nd Circ. Sends Clear Message About Injunctions

    Jack Haake

    There is value in the protections afforded by an injunction, be it through a settlement or a bankruptcy discharge. The Second Circuit’s recent decision in Tronox preserves an injunction’s value in two ways, says Jack Haake of Foley & Lardner LLP.

  • Coming To America? Examining The Chapter 15 Avenue

    Andrew Goldman

    Chapter 15 of the Bankruptcy Code provides a doorway for non-U.S. companies to obtain creditor protection and other benefits of a U.S. bankruptcy, but how wide open is that doorway? Decisions interpreting Section 109(a) provide inconsistent answers, say attorneys with WilmerHale.

  • Recent Trends In Enforcement Of Intercreditor Agreements

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    Three recent cases show that bankruptcy courts are increasingly willing to interpret intercreditor agreements and agreements among lenders and apply their plain language to the facts of the case, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • What Lawyers Should Know To Avoid Online Scams

    J. S. Christie Jr.

    Scams resulting in access to confidential information are probably a lawyer’s greatest technology and cybersecurity risk. But hackers are more likely to gain access to a lawyer’s computer systems through human error, usually responding to a scam, than a brute force attack, says J. S. Christie Jr. of Bradley Arant Boult Cummings LLP.

  • Web Servers: An Overlooked Cybersecurity Risk At Law Firms

    Jeff Schilling

    Many law firms use public-facing websites for business development and to streamline operational processes. While these sites are great for maximizing information-sharing, they could unknowingly be an unlocked gateway into a firm’s most confidential data, says Jeff Schilling of Armor Defense Inc.

  • The Mediator’s Proposal As A Tool For Litigants

    Dennis Klein

    Mediators’ proposals, which call for an unconditional and confidential acceptance or rejection, are resolving high-value disputes on a regular basis. Dennis Klein of Critical Matter Mediation examines why this is happening and the tactical implications for litigants in anticipating that a mediator’s proposal could resolve litigation.

  • Expectations After The Trump Administration's First 100 Days

    Jim Flood

    In its first 100 days, the Trump administration has had mixed results and may be behind where it wants to be. The biggest threat to President Donald Trump’s domestic policy agenda beyond the first 100 days is the difficulty of reconciling the Freedom Caucus Republicans, moderate Republicans and Democrats, say Jim Flood and Cari Stinebower of Crowell & Moring LLP.