We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Bankruptcy

  • June 15, 2018

    $300M Pellet Facility Bankruptcy Suit Kicked To Fed. Court

    A federal magistrate judge in Louisiana has removed a lawsuit from state court against a German insurance company that issued a policy covering a now-bankrupt $300 million heating pellet facility, finding that the matter invokes an international arbitration clause.

  • June 15, 2018

    US Trustee Slams IHeartMedia Executive Bonuses

    The U.S. Trustee on Thursday asked a Texas bankruptcy court to reject iHeartMedia Inc.’s plan to pay its top executives up to $25 million in bonuses, saying the company has failed to show the plan’s performance goals are a challenge or how the executives would help reach them.

  • June 15, 2018

    Maxus Trustee Targets YPF, Repsol In $14B Ch. 11 Fraud Suit

    The liquidating trust for bankrupt Maxus Energy on Thursday launched a potential $14 billion, 23-count adversary suit in Delaware Bankruptcy Court against Spanish energy giant Repsol SA and Argentina-based YPF SA, accusing both of using Chapter 11 to duck U.S. environmental liabilities.

  • June 14, 2018

    Casino Ch. 7 Trustee Wins Bid To Capture CEO’s Assets

    An Illinois federal judge agreed Wednesday to compel the turnover of assets from the deceased chief executive of a Chicagoland casino to its bankruptcy trustee, ruling that the CEO had fraudulently transferred them to his wife.

  • June 14, 2018

    Augustus Energy Cleared For $14M Del. Ch. 11 Asset Sale

    Gas well developer Augustus Energy Resources LLC secured Delaware bankruptcy court approval Thursday for a $14.2 million all-asset sale to its lone bidder, Texas-based Own Resources LLC, after a monthslong search for other offers.

  • June 14, 2018

    Insurers To Pay Minn. Diocese $15M For Sexual Abuse Claims

    The Diocese of Duluth on Wednesday asked a Minnesota bankruptcy court to approve settlements totaling more than $15 million with a pair of insurers to end their disputes over coverage for sexual abuse claims against local clergy.

  • June 14, 2018

    EFH Plan Administrator Can Chime In On Allocation Fight

    The plan administrator tasked with overseeing disbursements from the estate of reorganized debtor Energy Future Holdings Corp. will be allowed to participate in a fight over how responsibility for funding hundreds of millions of dollars in distributions reserves and legal fees will be allocated among the debtor entities, a Delaware judge ruled Thursday.

  • June 14, 2018

    SunEdison Investors Seek Class Cert. In Stock-Drop Suit

    Pension funds alleging bankrupt renewable energy developer SunEdison’s former executives and directors concealed liquidity and financing problems that ultimately caused share prices to drop asked a New York federal court Wednesday for class certification.

  • June 13, 2018

    Rockport Approved For Closing Sales At Retail Locations

    Bankrupt shoe maker The Rockport Co. LLC received court approval Wednesday for a plan to wind down its retail operations in the United States and Canada, telling a Delaware judge that it could not find a buyer for any of its stores.

  • June 13, 2018

    Ex-Dewey CFO Gets Discovery Stay For Criminal Appeal

    Dewey & LeBoeuf LLP's former chief financial officer, who was convicted of fraud, won a bid Tuesday to pause discovery in the U.S. Securities and Exchange Commission’s New York federal suit against him while his criminal case is still on appeal.

  • June 13, 2018

    Software Co. Says $514.16 Fee Row Belongs In Fed. Court

    A software company accused of conspiring with competitors to fix prices charged to bankruptcy trustees urged an Illinois federal judge on Wednesday to retain jurisdiction over the suit, arguing that the opposing counsel is seeking hundreds of thousands of dollars in attorneys’ fees in a dispute triggered by a $514.16 deduction.

  • June 13, 2018

    American Airlines Union Collusion Claims Tossed In Ch. 11

    A New York bankruptcy court on Tuesday shut down a suit by disgruntled pilots accusing their union of dropping the ball and even outright colluding with American Airlines during a tangled arbitration fight, calling the pilots’ claims “doomed” and “without any basis whatsoever.”

  • June 13, 2018

    Lehman Settles $1.2B Credit Suisse Trade Closeout Fight

    Lehman Brothers Holdings Inc. said Tuesday it had reached a settlement with Credit Suisse AG to end a long-running bankruptcy court scuffle over closeout calculations for derivatives trades following the firm’s 2008 collapse, freeing Lehman from a $1.2 billion claim and its last big bank action of that kind.

  • June 13, 2018

    New GM Questions Scope Of Ch. 11 Defect Deal

    General Motors LLC is questioning whether a proposed bankruptcy court settlement over legacy ignition switch lawsuits could possibly cover a proposed class of 11.4 million people and cost the carmaker $1 billion in new stock even though only a few hundred individuals have filed Chapter 11 claims.

  • June 13, 2018

    2nd Circ. Hands ING Bank A Win In Marine-Fuel Lien Dispute

    A Manhattan federal judge erred in quashing ING Bank's lien on a ship's fuel bill and also in entering an "ill-advised" grant of summary judgment in favor of the vessel, the Second Circuit held Wednesday, issuing a reversal in a money fight flowing from the bankruptcy of shipping fuel provider O.W. Bunker.

  • June 13, 2018

    Avenatti's Ex-Partner Seeks Assets To Satisfy $10M Judgment

    A former partner at Eagan Avenatti LLP has asked a California bankruptcy court to turn over the defunct class action firm’s assets to him to satisfy a $10 million judgment — a request that includes payments tied to Michael Avenatti’s representation of Stormy Daniels in her lawsuit against President Donald Trump.

  • June 13, 2018

    Madoff Trustee Recovers $280M In Ezra Merkin Settlement

    The trustee for Bernie Madoff's defunct investment firm Wednesday asked a New York bankruptcy court to approve a $280 million settlement of his claims that disgraced financier J. Ezra Merkin received fraudulent transfers from Madoff’s fund.

  • June 12, 2018

    Concertgoers Object To 50 Cent's Sanction Bid In Bankruptcy

    Two Massachusetts women on Monday fought 50 Cent’s attempt to have a Connecticut bankruptcy judge sanction them for continuing to pursue a personal injury case over one of the hip-hop artist’s concerts, arguing their suit is exempt from restrictions in the rapper’s reorganization plan.

  • June 12, 2018

    MACH Gen Gets Del. Court Nod For $10M DIP Draw

    Bankrupt commercial power producer New MACH Gen LLC secured access to the first half of a proposed $20 million bankruptcy financing loan Tuesday, under a Delaware Chapter 11 reorganization plan that would take two of the company’s three current plants to a confirmation hearing on July 23.

  • June 12, 2018

    Puerto Rico Investors Cry Foul Over Sales Tax Revenue Deal

    Investors holding general obligation debt issued by Puerto Rico's government are pushing for tweaks to a pending settlement proposed to resolve a bitter fight between creditors over billions worth of sales tax collections, saying the currently proposed split is unacceptable.

Expert Analysis

  • Analyzing The Economics Of Litigation Funding

    J.B. Heaton

    The growth of litigation funding has only increased the controversy surrounding it. Looking to move beyond the rhetoric for and against the practice, attorney and investment analytics expert J.B. Heaton, of J.B. Heaton PC and Conjecture LLC, attempts an objective analysis of the underlying economics of the litigation funding arrangement.

  • How We Got Here: A Look Back At Trailblazing Women In Law

    Jill Norgren

    Today's female lawyers stand on the shoulders of several generations of pioneers. Here, historian Jill Norgren explains how the status of women in the legal profession has changed since the 1870s.

  • Keys To Protecting Communications With Litigation Funders

    Alan Guy

    As different jurisdictions impose their own disclosure requirements regarding commercial litigation finance, there can be no “one size fits all” approach to ensuring confidentiality. But litigants, lawyers and litigation funders may be able to decrease disclosure risks through a handful of best practices, says Alan Guy of Vannin Capital.

  • Should Sovereign Immunity Shield IRS In Section 544 Suits?

    Scott Grossman

    A bankruptcy judge for the Eastern District of Michigan ruled in April that sovereign immunity does not bar a fraudulent transfer suit against the IRS. In doing so, she noted a split between the Seventh and Ninth Circuits and elected to follow the Ninth. With the IRS continuing to raise this defense to Section 544 fraudulent transfer claims, it is possible the Supreme Court will be called upon, says Scott Grossman of Greenberg Traurig LLP.

  • Introducing The Legal Industry To Millennial Business Owners

    Yaima Seigley

    ​The current business climate has produced vast opportunities for seasoned lawyers to create valuable connections with millennial business owners, but first lawyers must cleanse their palate of misconceptions regarding millennials, says Yaima Seigley of Isaac Wiles Burkholder & Teetor LLC.

  • 2 New Decisions Clarify Chapter 15 Requirements

    James Bentley

    Two recent decisions from the Southern District of New York reaffirmed several Second Circuit holdings that retainers placed with U.S. law firms constitute property of the debtor in the U.S. for Chapter 15 filing purposes. The surprising part was the required amount, says James Bentley of Schulte Roth & Zabel LLP.

  • Opinion

    Why Won't Judicial Nominees Affirm Brown V. Board Of Ed?

    Franita Tolson

    On May 17, 1954, the U.S. Supreme Court decided Brown v. Board of Education, recognizing a moral and legal truth that should be beyond question in American society. The refusal by some of President Donald Trump's judicial nominees to say whether they believe the case was decided correctly is indicative of the narrow-minded elitism they would bring to the bench, says professor Franita Tolson of the University of Southern California's Gould School of Law.

  • The Lawyers' Guide To Cloud Computing

    Daniel Garrie

    In deciding whether cloud computing is right for the organization or firm, an attorney must consider cloud computing’s significant impact on the electronic discovery process, say Daniel Garrie, managing partner at Law & Forensics LLC, and David Cass, chief information security officer at IBM Cloud.

  • The Burden Of Medical Records During Bankruptcy

    Kenya Woodruff

    Companies in the health care industry face many unique challenges when undergoing a bankruptcy, including challenges arising due to the federal and state law framework governing the use and disclosure of medical information. Maintenance and storage of medical records is complicated further because of debtors' lack of financial resources, say attorneys with Haynes and Boone LLP.

  • Opinion

    Recovering Lawyers' Lost Position Of Independence

    Samuel Samaro

    In these politically divisive times, many ask whether our institutions and traditions can help us return to a greater consensus. In days long past, the legal profession could have been counted on to serve just such a function. But lawyers are now just as polarized as everyone else, says Samuel Samaro of Pashman Stein Walder Hayden PC.