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Bankruptcy

  • August 13, 2018

    Suniva Creditor Sues To Halt Removal Of Solar Cell Equipment

    The largest unsecured creditor of bankrupt solar cell maker Suniva Inc. filed an adversary complaint late Friday in Delaware seeking to prevent the debtor from having the creditor remove manufacturing equipment it recently purchased at auction from the debtor’s Norcross, Georgia, factory.

  • August 13, 2018

    Aralez Gets OK To Tap $5M DIP, Must Produce Budget Info

    A New York bankruptcy judge on Monday approved a request by Aralez Pharmaceuticals Inc. to use up to $1 million from a $5 million debtor-in-possession loan, but instructed the distressed drug distributor to better explain its budget and application of borrowed funds when it seeks the remainder.

  • August 13, 2018

    Insurers Won't Cover Verizon's $95M FairPoint Settlement

    Verizon Communications Inc. can’t use its insurance policies to cover the $95 million it paid out to settle claims that it lied to competitor FairPoint Communications Inc. when it sold off some of its landline infrastructure for $2.3 billion, insurers said in a suit filed in New York state court.

  • August 13, 2018

    Rakoff Hits Ailing Cocoa Trader With 3 Years In $350M Fraud

    Peter G. Johnson, whose cocoa trading business Transmar went under after it deceived lenders out of more than $350 million, was sentenced to three years behind bars by U.S. District Judge Jed Rakoff on Monday, with the judge weighing the loss against Johnson’s life of good works.

  • August 13, 2018

    Ex-Union Boss Like 'Con Man' Cooperator, Bribery Jury Hears

    Counsel for Norman Seabrook, the former labor boss accused of steering $20 million of union capital to a now-bankrupt hedge fund for a $60,000 bribe, told a Manhattan jury Monday that a key government witness is a “con man” who can't be trusted, but a prosecutor said both men are “cut from the same cloth.”

  • August 13, 2018

    Fisker Ch. 11 Trustee, Karma In Talks On Stock Sale Reset

    A liquidating trustee for bankrupt electric car maker Fisker Automotive and its Chapter 11 buyer reported plans Monday for a third round of talks on a "reset" of a capital raise by the company’s new owners that diluted the trustee's original 20 percent share and led to a Delaware lawsuit.

  • August 13, 2018

    Lehman Judge Keeps Mortgage Suits In NY Bankruptcy Court

    Lehman Brothers’ quest to hold a group of mortgage originators accountable for the $1.2 billion it paid to settle claims after their loans went belly up will stay in New York bankruptcy court, the judge overseeing the defunct investment bank’s Chapter 11 case said Monday.

  • August 13, 2018

    11th Circ. Tosses Atty Sanction In Trucking Co. OT Case

    The Eleventh Circuit on Friday threw out a sanction for a Miami Beach lawyer and his client stemming from a trucking company overtime pay case, saying a decision last fall about conflicting positions taken by a litigant in separate judicial proceedings called for a reversal.

  • August 10, 2018

    How The Legal Industry Lets Down Lawyers With Disabilities

    The dissolution of a five-year-old bar group marks the latest setback for disabled attorneys, who often find little support while navigating an inhospitable industry.

  • August 10, 2018

    Gaining Access: Disabled Lawyers Share Their Stories

    In a series of interviews, lawyers tell Law360 how even well-intentioned professors can create barriers, how inclusivity can help a firm’s litigation prowess, and how “inspirational” can be a dirty word.

  • August 10, 2018

    Unsecured Creditors Blast ActiveCare's Fast-Track Sale

    A committee of unsecured creditors on Thursday asked the Delaware bankruptcy court to halt diabetes patient monitoring company ActiveCare Inc.’s Chapter 11 sale plans, claiming there are problems with proposed financing, the stalking horse bid and the timing of the sale.

  • August 10, 2018

    Woodbridge Creditors Object To Claim Assignment Plan

    A group of noteholders of the Woodbridge Group of Companies LLC says the debtor’s proposed plan disclosure statement is impermissible because it would seek to solicit creditors with potential class claims relating to a Ponzi scheme run by the debtor to assign those claims to a plan litigation trust.

  • August 10, 2018

    Creditors Get Film Co. Owner's Bankruptcy Converted To Ch. 7

    The bankruptcy case of Calrissian LP was converted to a Chapter 7 liquidation Friday when a Delaware judge said the company’s estate needed to explore potential litigation over its failed acquisition of film distribution company Our Alchemy LLC, which led to its own insolvency proceedings.

  • August 10, 2018

    McKinsey Critic Bolsters Call To Reopen ANR Ch. 11 Case

    A company formed by Jay Alix, a critic of consulting giant McKinsey & Co., on Thursday renewed its call for a Virginia bankruptcy court to reopen the Alpha Natural Resources Chapter 11 case, saying it had discovered dozens of conflicts of interest in the case by McKinsey.

  • August 10, 2018

    DC Metro Contractor Sues Insurer, Bond Co. For $2.1M

    A subcontractor on a Washington, D.C., metro improvement project slapped a contract bond provider and an insurance company with a suit in Illinois federal court on Thursday, alleging it’s owed $2.1 million under a payment bond after a bankruptcy court ordered it to give the money back.

  • August 10, 2018

    Aralez Sheds Assets For $250M As Bankruptcy Cases Begin

    Aralez Pharmaceuticals Inc. on Friday said it will sell $250 million worth of assets in separate deals with Canada’s Nuvo Pharmaceuticals Inc. and funds controlled by investment firm Deerfield Management as the company begins bankruptcy proceedings in the U.S. and Canada.

  • August 9, 2018

    'Man-Purse And Some TLC' Sweetened $60K Bribe, Jury Told

    A key prosecution witness in the $20 million cash-for-investment bribery case against former union boss Norman Seabrook told a Manhattan jury Thursday that a designer man-purse and some friendly treatment soothed the defendant when he learned of his less-than-expected $60,000 alleged payout.

  • August 9, 2018

    Relativity Wins Approval Of Creditor Settlement, Final DIP

    Relativity Media LLC defeated a U.S. Trustee objection Thursday to secure bankruptcy court approval of a settlement with its creditor groups that paves the way for a sale of the company to its senior lenders, and was authorized to tap the remainder of a $4 million debtor-in-possession loan.

  • August 9, 2018

    Ryckman Owner Must Honor $11M Trustee Buyout, Court Told

    A liquidating trustee for bankrupt natural gas storage venture Ryckman Creek Resources LLC told a Delaware bankruptcy judge Thursday that Ryckman’s new owner can’t revoke a call-in of $11 million in trustee-held shares, and rejected demands for a $9.5 million price cut.

  • August 9, 2018

    GM Trust, Lenders Told To Resolve $1.5B Loan Row Quickly

    A New York bankruptcy judge Thursday urged General Motors Co.'s bankruptcy trust and JPMorgan Chase Bank NA to pick up the pace following a bellwether ruling in 2017 intended to resolve a dispute over the nature and value of security interests in GM plants related to a $1.5 billion term loan.

Expert Analysis

  • 6th Circ. Clarifies Approach To Mandatory Abstention

    Tamar Dolcourt

    In HNRC Dissolution, the Sixth Circuit took a holistic approach to determining the core nature of a proceeding in bankruptcy, which will likely make it more difficult for litigants to obtain mandatory abstention in certain cases, says Tamar Dolcourt of Foley & Lardner LLP.

  • How NJ Law Protects Tenants By The Entirety

    Bruce Buechler

    A New Jersey state appellate court's decision in Jimenez v. Jimenez shows that when dealing with property owned by a husband and wife as tenants by the entirety, New Jersey law can impose very serious ramifications on a judgment creditor’s efforts to collect or levy on that property, says Bruce Buechler of Lowenstein Sandler LLP.

  • 3 Cautionary Tales For Buyers Of Bankruptcy Claims

    Nancy Peterman

    Courts have usually provided little guidance regarding problems that might affect the use of claims purchased in bankruptcy cases for strategic reasons. With three recent decisions, this dynamic has begun to change, say Nancy Peterman and John Elrod of Greenberg Traurig LLP.

  • New Privacy Laws' Unintended Impact On Bankruptcy Sales

    Walt Sapronov

    When the next downturn occurs, bankruptcies and opportunities for investors to pick up distressed assets on the cheap will follow. Where those assets include customer lists or other personal information protected by new privacy laws in the EU and California, those sales will become more difficult, say Walt Sapronov and Paul Kouroupas of Sapronov & Associates PC.

  • What Kavanaugh's Writing Tells Us About His Personality

    Matthew Hall

    People with certain personality traits tend to use certain words. A computer analysis of Judge Brett Kavanaugh’s D.C. Circuit opinions reveals that he is highly extraverted, which means that he would be a prominent voice on the U.S. Supreme Court, says Matthew Hall, a professor at the University of Notre Dame.

  • Roundup

    Cities In Distress

    Cities in Distress

    Five years after the city of Detroit filed for Chapter 9 bankruptcy, experts look at the financial troubles of Chicago and other U.S. cities in this special series.

  • Opinion

    3 Pros, 3 Cons Of Litigation Finance

    Ralph Sutton

    An educated guess puts the number of new litigation funders launched in the past 18 months at 30 — an astonishing number, with more to come. Is this a blessing to our legal system or something more akin to tulip mania? Maybe both, says Ralph Sutton, founder and CEO of litigation funding firm Validity Finance LLC.

  • Series

    Cities In Distress: Municipal Recovery Lessons From Pa.

    Juliet Moringiello

    As we reflect on the five years since Detroit’s bankruptcy filing, Pennsylvania’s experience in intervening in its municipalities’ financial distress provides some useful insights on the problems plaguing municipalities as well as lessons for states, says professor Juliet Moringiello of Widener University Commonwealth Law School.

  • Modern Communication Brings E-Discovery Challenges

    Thomas Bonk

    As new communications platforms displace email, the legal industry is awkwardly grappling with complex e-discovery questions. Fortunately, this environment provides a very fertile ground of incentives for innovation in both e-discovery technology and service offerings, says Thomas Bonk of Epiq.

  • Series

    Cities In Distress: Michigan's Emergency Mgr. Law And Flint

    Eric Scorsone

    Michigan has taken a very aggressive approach to addressing municipal fiscal insolvency. But the state's emergency manager law fails to consider the unintended consequences of short-term financial adjustments, as seen in the case of Flint, say Eric Scorsone and Samantha Zinnes of Michigan State University.