Bankruptcy

  • April 13, 2018

    Zohar Ch. 11 Dismissal Hearing Procedures Set By Court

    Bankrupt distressed company investment vehicles the Zohar Funds are prepared to defend their Chapter 11 filings at hearings beginning Tuesday after a Delaware judge decided Friday on how those hearings should proceed.

  • April 13, 2018

    Weiland Golden Gets Bankruptcy Partner And New Firm Name

    Weiland Golden LLP has hired a SulmeyerKupetz bankruptcy member, David Goodrich, to join the 23-year-old Orange County-based insolvency boutique as partner, and the firm has changed its name to Weiland Golden Goodrich LLP, the firm said.

  • April 13, 2018

    $890M 'Save Toys R Us' Bid Made By MGA Entertainment CEO

    The billionaire toy mogul behind brands like Bratz dolls and Little Tikes put in a formal bid of $890 million to buy Toys R Us Inc. stores in the U.S. and Canada in an attempt to spare the toy retail giant from bankruptcy, his company, MGA Entertainment Inc., announced Friday.

  • April 13, 2018

    Greenberg Traurig Beats Malpractice Claim In Clawback Row

    A New York state judge has tossed NextEra Energy Inc.’s malpractice suit claiming Greenberg Traurig LLP failed to assert a specific safe harbor defense to a clawback claim in a bankruptcy case, saying the firm can’t be held liable for not asserting a defense that couldn’t be sustained in court.

  • April 13, 2018

    A Conversation With Baker Botts CMO Gillian Ward

    In this monthly series, legal recruiting experts at Major Lindsey & Africa interview law firm management about navigating an increasingly competitive business environment. Here we feature Gillian Ward, chief marketing officer at Baker Botts LLP.

  • April 13, 2018

    Ch. 7 Trustee Fights Sanctions Over His Chicago Cab Suit

    The trustee in the Chapter 7 bankruptcy of a major Chicago cab company Thursday urged an Illinois federal judge to reject a motion for sanctions against him by the company’s owners, calling it a ploy to shut down his fraudulent transfer suit.

  • April 12, 2018

    Fla. Firm Fights Sanctions In Billionaire Sex Offender Row

    Fowler White Burnett PA urged a Florida bankruptcy judge Wednesday not to hold it or convicted billionaire sex offender Jeffrey Epstein in contempt for allegedly retaining copies of confidential documents, saying the cited court order did not say what to do with a disc that is at issue.

  • April 12, 2018

    Cumulus Defends Valuation To Open Ch. 11 Plan Confirmation

    Bankrupt radio giant Cumulus Media Inc. began a trial Thursday to confirm a Chapter 11 restructuring plan that would reduce its bloated debt by just over $1 billion, squaring off against junior creditors who complain they are being shortchanged by a deal that undervalues the company's total worth.

  • April 12, 2018

    NextEra Fights To Keep $60M Expense Claim Against EFH

    NextEra Inc. objected late Wednesday in Delaware to a motion to dismiss its $60 million administrative expense claim against the estate of reorganized debtor Energy Future Holdings Inc., saying it is entitled to payment of the costs it incurred while pursuing an acquisition of the debtor’s assets last year.

  • April 12, 2018

    Hospital Owner Can't Keep Ch. 11 Malpractice Row In Court

    A Texas appeals court on Thursday refused to overturn a trial court's order sending to arbitration a claim that law firm Johnson DeLuca Kurisky & Gould PC botched its representation of a Houston entrepreneur in connection with a bankrupt hospital.

  • April 12, 2018

    Judge Rips Feuding Parties In NY Solar Co.'s Ch. 11

    Level Solar Inc. narrowly fended off a bid by its former CEO to liquidate the case, after a New York bankruptcy judge admonished both parties for “mudslinging nonsense” at a contentious hearing Thursday while saying she would give the debtor a few more weeks to get its act together.

  • April 12, 2018

    Ex-CFO Of 'Soup Nazi' Co. Gets 9 Months For Tax Evasion

    The former chief financial officer of the business popularized by the "Soup Nazi" character in the sitcom "Seinfeld" received a nine-month sentence on Thursday in New York federal court for failing to pay federal income, Medicare and Social Security taxes.

  • April 11, 2018

    NY Unions Attack Construction Firm's Ch. 11 Claim Objections

    A group of construction worker unions representing employees of Navillus Tile Inc. argued Wednesday that the bankrupt New York-based contractor must prioritize some of their wage claims, saying they can be easily substantiated with documentation.

  • April 11, 2018

    Orexigen Reaches Deal With Creditors On $70M DIP Loan

    Bankrupt obesity drug maker Orexigen Therapeutics Inc. continued negotiations with noteholders until moments before a hearing Wednesday in Delaware, where it received final court approval on its $70 million post-petition financing package.

  • April 11, 2018

    Aviva Ends $35M Note Fraud Claims Against Dewey Execs

    Former Dewey & LeBoeuf chief operating officer Dennis D’Alessandro on Wednesday entered into an agreed judgement to end claims that he helped mislead Aviva Life and Annuity Co.about the firm’s finances when Aviva bought $35 million in secured notes in 2010.

  • April 11, 2018

    6th Circ. Says Couple's Appeal Of Fraud Verdict 'Nonsensical'

    The Sixth Circuit on Wednesday tore into an Ohio couple’s attempt to appeal a jury’s 2017 verdict finding them liable for nearly $3.3 million in accounts and fraudulent transfers from a bankrupt credit union, calling their arguments, “in some cases, nonsensical.”

  • April 11, 2018

    Cenveo Defends Bid To Hire Ex-VP As Bankruptcy Consultant

    Envelope maker Cenveo Inc. Tuesday told a New York bankruptcy court that creditors’ concerns about the company hiring a former vice president to renegotiate its leases is misplaced, saying he has the necessary experience and will be less expensive than a national firm.

  • April 11, 2018

    Lathrop Gage Snags LA Insurance Partner From Latham

    Lathrop Gage LLP has added an insurance recovery and counseling partner from Latham & Watkins LLP to its Los Angeles office, the firm announced Tuesday.

  • April 11, 2018

    Bon-Ton Liquidation Looms After Del. Court Nixes Bid Fee

    Bon-Ton Stores Inc.’s best hope for a going-concern Chapter 11 sale instead of liquidation went down in flames Wednesday, when a Delaware bankruptcy judge bluntly rejected its proposal to pay up to $500,000 to cover expenses for an unfinished post-deadline offer.

  • April 11, 2018

    Ex-Nortel Execs Beat Long-Simmering Securities Fraud Suit

    A nine-year-old investor lawsuit against two former top executives at defunct telecommunications firm Nortel Networks Corp. was dismissed by a New York federal judge on Wednesday, with the court ruling that there was no suggestion of misdirection or knowledge of wrongdoing by company officials.

Expert Analysis

  • Series

    Judging A Book: Hardiman Reviews 'Without Precedent'

    Judge Thomas Hardiman

    In his new book, "Without Precedent: Chief Justice John Marshall and His Times," professor Joel Richard Paul ably explains more than a dozen of Marshall’s most significant opinions, which comes as no surprise​. ​What is a surprise — a pleasant one — is the book's readability, says Judge Thomas Hardiman of the Third Circuit.

  • Top Tax Changes For Law Firms: What Lawyers Need To Know

    Evan Morgan

    For law firms structured as corporations, a lower maximum corporate tax rate and repeal of the corporate alternative minimum tax are good news. But many law firms are pass-through entities, so deduction limitations mean they'll see less benefit from the new tax law, says Evan Morgan of CPA and advisory firm Kaufman Rossin PA.

  • Bankruptcy Notice Lessons From Lyondell

    Robert Millner

    The Eighth Circuit’s decision in Dahlin v. Lyondell Chemical Co., addressing what a debtor needs to include in a claim bar date notice to unknown creditors, makes clear that due process in the notice context is rooted in reasonableness, say Robert Millner and Geoffrey Miller of Dentons.

  • Opinion

    Companies Should Avoid The BigLaw Bonus Structure

    Michael Moradzadeh

    Since passage of the Trump tax plan last year, companies have been touting bonuses they’ve handed down to rank-and-file employees. This highlights the trend of employers favoring bonuses over pay raises in the belief that variable, short-term rewards are less risky to the business than permanent increases in labor costs. But law firms have used this strategy for years — and there are dangers, says Michael Moradzadeh of Rimon PC.

  • Chief Innovation Officer — The New Star On Legal Teams

    Mark Williamson

    Over the past few years, forward-thinking law firms have expanded their talent pools to include a chief innovation officer, whose responsibilities include spearheading the implementation of technology. It is a smart move, says ​​​​​​​Mark Williamson, co-founder and chief technology officer at Hanzo Archives Ltd.

  • Considerations For Appointing Equity Committees In Ch. 11

    Shivani Shah

    Equity security holders are increasingly requesting the appointment of official equity committees to represent their interests in bankruptcy cases. Shivani Shah of Norton Rose Fulbright examines the bases for such appointments and the standard that courts apply in evaluating such requests.

  • Opinion

    National Lawyers Need National Licensing For National Courts

    EJ Hurst II

    Just last month, a number of legal groups asked the Northern District of California to strike its rule requiring that, before seeking federal court admission, attorneys first be licensed by the state of California. It is irrational to exclude seasoned federal practitioners from general admission due to state bar approval while allowing raw state lawyers who have never been inside a federal courtroom, says attorney EJ Hurst.

  • New Bribery Suit's Implications For Venezuela Restructuring

    Richard Cooper

    The decision by Venezuela’s state-owned oil company PDVSA to pursue claims in the U.S. over an alleged bribery scheme raises a number of legal and strategic issues not just for the defendants named in the suit, but also for PDVSA’s bondholders and creditors of the republic, say Richard Cooper and Boaz Morag of Cleary Gottlieb Steen & Hamilton LLP.

  • Lawyering A La Carte: Unbundled Dispute Resolution Services

    David Wallace

    There's no reason for limiting unbundled legal services to family law or even pro se litigants. Wider adoption, especially by litigators, presents an opportunity to correct law's distribution and pricing problem, to make justice practically available to all, and to dethrone litigation as the "sport of kings," says New York-based trial lawyer David Wallace.

  • Bitcoin: A New, Volatile Asset In Bankruptcy

    Erin Jane Illman

    Given the mainstream use of bitcoin and the “staying power” of this cryptocurrency, bankruptcy practitioners need to prepare to see bitcoin as part of the assets in future bankruptcy cases. The volatility of bitcoin value, however, will require bankruptcy courts and parties to come up with creative solutions, say Erin Illman and Robert Cox of Bradley Arant Boult Cummings LLP.