Bankruptcy

  • 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.

  • February 15, 2018

    Stroock Adds Kasowitz Benson Restructuring Star In NY

    Stroock & Stroock & Lavan LLP has picked up restructuring expert Daniel Fliman from Kasowitz Benson Torres LLP, Stroock & Stroock said Thursday, to join its 15-partner financial restructuring group in New York.

  • February 15, 2018

    Takata Allowed To Discharge State Claims In Ch. 11

    The Delaware bankruptcy judge presiding over Takata’s bankruptcy ruled late Wednesday that potentially $1 billion in claims stemming from enforcement actions by Hawaii, New Mexico and the U.S. Virgin Islands can be discharged by a confirmed Chapter 11 plan, as the debtor meanwhile settled with 44 other states.

  • February 15, 2018

    A Chat With Hogan Lovells HR Chief Allison Friend

    In this monthly series, legal recruiting experts Amanda Brady and Amy Mallow of Major Lindsey & Africa interview law firm management from Am Law 200 firms about how they are navigating an increasingly competitive business environment. The second conversation is with Allison Friend, chief human resources officer for Hogan Lovells LLP.

  • February 14, 2018

    Trenk DiPasquale Email Probe Ordered In Water Agency Suit

    A New Jersey federal bankruptcy judge on Tuesday ordered an inspection of electronic devices used by Trenk DiPasquale Della Ferra & Sodono PC and two former firm attorneys for discovery purposes in a lawsuit alleging the firm and others enabled unlawful and wasteful conduct at a defunct Newark water agency.

  • February 14, 2018

    Puerto Rico Utility Creditors Unveil $534M Loan Offer

    Creditors of Puerto Rico’s ailing power utility on Wednesday offered a $534 million loan in a bid to head off the contentious $1 billion loan the utility is seeking from the Commonwealth, setting up a showdown over who will provide bridge funding ― and receive superpriority liens ― until federal aid dollars arrive.

  • February 14, 2018

    Trustee Fee Fight Prompts Ch. 11 Retroactive Closing Bid

    A bankruptcy successor to Millennium Lab Holdings II LLC urged a Delaware judge Wednesday to retroactively close its confirmed but under-appeal Chapter 11, arguing that inadequate notice of a sharp hike in U.S. trustee fees justified the move.

  • February 14, 2018

    Cumulus Trustee Objects To Exec Bonus Payments

    The U.S. trustee for Cumulus Media Inc. on Tuesday objected to the radio giant's request that a New York bankruptcy court allow it to make performance bonus payments to employees, including a dozen top executives, saying there is too little information about who will receive the money or how much of a stretch the performance goals are.

  • February 14, 2018

    Aerogroup Gets Nod For New $23M Stalking Horse Bid

    A Delaware bankruptcy judge on Wednesday allowed a hedge fund to put in a $23 million floor bid at an auction for shoe retailer Aerogroup International Inc.’s assets, rejecting a challenge from a multiparty group that had previously been picked as the stalking horse bidder.

  • February 14, 2018

    Deals Rumor Mill: Healthineers, Blackstone, Takata

    Siemens is reportedly pocketing all the proceeds from the IPO of its Healthineers unit, several banks are in talks to aid a financing effort related to the Blackstone-Thomson Reuters deal and automakers are helping Takata resolve its bankruptcy by giving millions to those hurt by its deadly air bag inflators.

  • February 14, 2018

    Velocity Holdings Cleared For Vote On $400M Ch. 11 Plan

    A Delaware bankruptcy judge gave motorsports company Velocity Holding Co. Inc. the green light Wednesday to poll creditors on its Chapter 11 plan to rework more than $400 million in debt after hearing that concerns from unsecured creditors over how liability releases were described had been resolved.

Expert Analysis

  • 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.

  • The Meaninglessness Of 'Disinterested'

    Richard Roth

    The Black Elk bankruptcy — related to the criminal indictment and upcoming trial of seven former Platinum Partners and Black Elk executives — involved a claimed disinterestedness that seems to indicate that the Bankruptcy Code’s disinterested requirement is something seasoned counsel can work around, says Richard Roth, a corporate and securities attorney.

  • Centers Of Influence Are Key To Small Law Firm Rainmaking

    Frank Carone

    In a national survey of 378 small law firms, partners ranked client referrals as the most important means of business development. Yet studies reveal that while professional services providers obtain most new clients from existing client referrals, their best new clients — the ones providing the largest pool of investable assets — overwhelmingly come from “centers of influence,” says Frank Carone, an executive partner at Abrams Fensterman.