• October 13, 2017

    Citibank's $1.74B Settlement With Lehman Gets Court's OK

    Citibank NA's agreement to return $1.74 billion to the Lehman Brothers estate and cut short a trial over closeout calculations for derivatives trades that went into default after Lehman's collapse is sealed, as the New York bankruptcy judge who oversaw the monthslong trial happily signed the deal on Friday.

  • October 13, 2017

    Stanford Receiver Renews Fight Over $88M Clawback Verdict

    The court-appointed receiver handling the Ponzi implosion of Stanford International Bank asked a Texas federal judge on Thursday to overturn a jury's decision keeping $88 million in Stanford cash in the hands of the cable and truck-racing magnate who received it shortly before Stanford collapsed.

  • October 12, 2017

    EFH Judge Halts Former Unit From Filing Tax Return

    The Delaware bankruptcy judge presiding over the Energy Future Holdings Corp. Chapter 11 granted the debtor’s request for a temporary restraining order Thursday blocking Vistra Energy Corp., which was once part of the power giant’s corporate structure, from making tax moves that could allegedly hurt the bankruptcy estate.

  • October 12, 2017

    Westinghouse Asks To Use DIP Funds For Nondebtors' Bills

    Nuclear energy contracting giant Westinghouse Electric Co. LLC asked a New York bankruptcy court on Wednesday to authorize amendments to its $800 million postpetition financing arrangement so it can provide emergency funding for struggling nondebtor affiliates overseas.

  • October 12, 2017

    Fresh & Easy Settles Employee Firing Claims For $2.2M

    The liquidating trust for grocer Fresh & Easy has agreed to pay a claim of $2.2 million to settle putative class actions brought by about 900 California workers who said they found themselves jobless without warning, according to a joint motion filed Wednesday in Delaware bankruptcy court.

  • October 12, 2017

    O'Melveny Defends $2.5M Fee Bid In La Paloma Ch. 11

    O'Melveny & Myers LLP defended its roughly $2.5 million fee bid for the La Paloma Generating Co. LLC Chapter 11 in Delaware bankruptcy court Thursday against criticism from the power producer's senior creditor, arguing that the lender is asking the firm to "roll over and play dead."

  • October 12, 2017

    Bankrupt CST Industries Gets Nod For Bonus, Retention Pay

    Steel tank maker CST Industries Holdings Inc. secured bankruptcy court approval Thursday for $1.3 million or more in incentive or retention bonuses for key employees, over objections from unsecured creditors wary of the cost and skeptical of the justifications.

  • October 12, 2017

    Lufthansa To Invest €1.5B In Bankrupt Air Berlin

    Deutsche Lufthansa AG on Thursday confirmed its chief executive’s comments that the German airline is making a €1.5 billion ($1.8 billion) investment in beleaguered Air Berlin.

  • October 12, 2017

    Doors Open For Russia Bank Trustee In NYC Embezzle Probe

    The trustee for an insolvent Russian bank investigating a purported link between funds embezzled by the bank’s former president and New York City real estate purchases won a bankruptcy court fight Thursday with the property buyers over the right to look deeper into past transactions.

  • October 12, 2017

    Breitburn Urges NY Judge To Approve New Ch. 11 Plan

    Breitburn Energy Partners LP unveiled its long-awaited Chapter 11 plan before a New York bankruptcy court on Thursday, pacifying some creditors who’d been on the verge of mutiny over the summer and angering others who say the plan shortchanges them for the sake of expediency.

  • October 11, 2017

    Fla. Energy Biz Partners Trade Barbs At Bankruptcy Trial

    The tension simmering between former partners of a bankrupt Florida energy company repeatedly neared the boiling point Wednesday as a co-founder cross-examined the company's largest investor, who allegedly put the business into involuntary bankruptcy as part of a scheme to force the co-founder out.

  • October 11, 2017

    Patients Fault Cancer Center Over Ch. 11 Plan Info Omissions

    A putative class of 2.2 million patients suing bankrupt cancer treatment center operator 21st Century Oncology over a data breach that exposed their personal information said the company has unacceptably omitted any mention of their claims in its Chapter 11 plan disclosures.

  • October 11, 2017

    ChinaCast, Lenders Slam PE Firm's Insurance Payout Request

    ChinaCast Education Corp. and a group of its senior lenders Wednesday asked a New York bankruptcy judge to deny a creditor a $15 million insurance payout on a securities class action judgment, calling it an improper asset grab.

  • October 11, 2017

    GM Trust Appeals Judge's $1.5B Loan Row Asset Valuations

    A General Motors creditors’ trust on Tuesday asked to appeal a bankruptcy judge’s ruling in a bellwether case on the nature and value of security interests in GM plant assets related to a $1.5 billion term loan, saying that the findings overlook the federal government’s role as savior to the manufacturer in 2009.

  • October 11, 2017

    'American Idol' Parent Says Sony's Royalty Claims Are Barred

    "American Idol" producer CORE Entertainment moved Tuesday to shut down a suit by Sony Music Entertainment over unpaid royalties for Clay Aiken, Kelly Clarkson and other stars of the show, telling a New York bankruptcy court the claims are barred by CORE’s recent reorganization.

  • October 11, 2017

    EU Blesses Portugal's Novo Banco Sale Under State Aid Rules

    The European Commission on Wednesday said it has cleared Portugal’s plan to sell a majority of rescued bank Novo Banco to private equity outfit Lone Star after it found the arrangement did not run afoul of the European Union’s state aid rules.

  • October 11, 2017

    Garden Fresh Says Filing Ch. 11 Plan Would Be Fruitless

    Bankrupt restaurant chain operator Garden Fresh asked the Delaware bankruptcy court Tuesday to dismiss its Chapter 11 cases without a reorganization plan, saying it has no money to make a plan and no assets to reorganize.

  • October 11, 2017

    Trenk DiPasquale Fights Probe Request In Water Agency Suit

    Attorneys from Trenk DiPasquale Della Fera & Sodono PC told a New Jersey bankruptcy court Tuesday that its former client, the now-defunct Newark Watershed Conservation and Development Corp., was not entitled to search the firm’s electronics for missing documents.

  • October 10, 2017

    Partner Says He Tried To Keep Bankrupt Energy Co. Going

    The largest investor in a beleagured Florida energy company testified Tuesday that he tried in good faith to right the business after his partners descended into a deadlocked dispute, contending the only improprieties in the involuntary bankruptcy he forced the company into came in one partner's appeal.

  • October 10, 2017

    Platinum Execs Say Insurers Must Give Cash For Defense

    Attorneys for hedge fund Platinum Partners and some of its executives on Tuesday pressed a New York state judge to force three excess insurers to advance money to cover their costs of defending against criminal charges over a purported $1 billion securities fraud scheme involving an offshore driller, saying the insurers are duty-bound to provide coverage.

Expert Analysis

  • The Limitations Of Administrative Expense Claims

    Jason Binford

    The Delaware bankruptcy court's decision in the case of SRC Liquidation makes clear that administrative expense claim rights will be strictly construed to goods that are physically provided to the debtor. Clearly, concerned vendors should be wary of drop shipment, says Jason Binford of Gardere Wynne Sewell LLP.

  • 5 Tips To Ensure Proper Deposition Behavior

    Brian McDermott

    If conducted properly, depositions can be a powerful tool. At times, though, opposing counsel employ tactics to impede the examiner’s ability to obtain unfiltered, proper testimony from the deponent. By knowing and effectively using applicable rules and case law, however, deposing attorneys can take specific steps to combat these tactics, say attorneys with Ogletree Deakins Nash Smoak & Stewart PC.

  • How Bankruptcy Can Maximize Health Care Businesses' Value

    Adam Harris

    The consolidation of financially troubled companies can be effectively achieved through the bankruptcy sale process. For health care businesses in particular, bankruptcy sales can maximize the value of these businesses by providing buyers with flexibility and myriad protections, say Adam Harris and James Bentley of Schulte Roth & Zabel LLP.

  • Series

    Judging A Book: Tunheim Reviews 'Miles Lord'

    Chief Judge John Tunheim

    Litigator Roberta Walburn’s rollicking new book, "Miles Lord: The Maverick Judge Who Brought Corporate America to Justice," is a really good read — a fascinating story about a life lived in the heat of battle and usually at the edge of what might have been considered appropriate for a federal judge, says Chief U.S. District Judge John Tunheim of the District of Minnesota.

  • Practical Considerations For Litigating Against SPVs

    Matthew Ingber

    In the wake of the financial crisis, many lawsuits seeking to recover damages for alleged investment losses have been filed by special-purpose vehicles. Litigation practitioners will benefit from a practical consideration of the strengths and weaknesses of these entities in formulating an overall litigation strategy, say attorneys with Mayer Brown LLP.

  • Technology Assisted Review Can Work For Small Cases


    For as long as e-discovery lawyers have been using technology assisted review, a belief has persisted that it cannot be used economically or effectively in small cases. But TAR can be highly effective in small cases, typically reducing the time and cost of a review project by 60 to 80 percent, say John Tredennick, Thomas Gricks III and Andrew Bye of Catalyst Repository Systems LLC.

  • New Sedona Principles Stress Information Governance

    Saffa Sleet

    The Sedona Conference Working Group's updated Sedona Principles provides a timely reminder that the legal industry needs to be thinking more seriously about the interconnectedness between e-discovery and information governance, says Saffa Sleet of FTI Consulting Inc.

  • Opinion

    For More Value And Diversity In Outside Counsel, Go Small

    Sara Kropf

    Albert Einstein famously said, “The definition of insanity is doing the same thing over and over again, but expecting different results.” That maxim applies to large companies that seek more value and diversity from their outside counsel by expecting big firms to change. There’s a simple solution to this problem, according to attorneys Margaret Cassidy, Sara Kropf and Ellen D. Marcus.

  • Congress Faces 'CHOICE' On Future Of SEC Enforcement

    Thomas Zaccaro

    While most of the Financial CHOICE Act focuses on financial regulations imposed by Dodd-Frank and other federal legislation, portions of the act would have a significant impact on U.S. Securities and Exchange Commission enforcement actions, say attorneys with Paul Hastings LLP.

  • CFPB's 1st 'Abusive' Claim Against A Loan Purchaser

    Kristie Kully

    The Consumer Financial Protection Bureau’s use of its abusiveness authority to attack Aequitas Capital Management’s willingness to acquire loans with high risks of default certainly makes one wonder about the downside risks of the CFPB’s foray into the capital markets, say attorneys with Mayer Brown LLP.