Bankruptcy

  • May 10, 2018

    Petters Trustee Challenges Fund Manager's $720M Claim

    The trustee charged with cleaning up the mess left by Thomas Petters’ nearly $4 billion Ponzi scheme is accusing a hedge fund of sneaking a duplicative $720 million claim into the Ponzi vehicle’s Chapter 11 plan through “shameless and deceitful conduct.”

  • May 10, 2018

    Video Ad Tech Firm Hits Ch. 11 With Plan For Asset Sale

    Advertising software company Videology Inc. hit Chapter 11 Thursday in Delaware with an offer in hand to sell its assets, saying the transformation of television and video advertising wasn’t moving fast enough for it to meet its financial obligations.

  • May 10, 2018

    Applebee's Franchisee To Fund Ch. 11 With Lender Cash

    An Applebee’s Neighborhood Bar and Grill franchisee with 159 restaurants in 15 states received permission from a Delaware judge on Thursday to finance its Chapter 11 case with the use of secured lenders’ cash collateral.

  • May 10, 2018

    Law Firm Cites Mulvaney In 9th Circ. Challenge To CFPB

    A California law firm that’s asking the Ninth Circuit to free it from a Consumer Financial Protection Bureau civil investigative demand pressed its challenge to the constitutionality of the agency’s structure on Wednesday, citing recent criticism from CFPB acting Director Mick Mulvaney that the agency he leads “is far too powerful.”

  • May 10, 2018

    GAO Proposes Tightening Debt To Address Puerto Rico Crisis

    The Government Accountability Office has suggested increased federal regulation of Puerto Rico's issuing of debt will help it recover from its debt crisis, with the territory countering that the federal office overlooked the structural inequality underlying its financial condition.

  • May 10, 2018

    SEC Objects To Envelope Co.'s 3rd-Party Releases In Ch. 11

    The U.S. Securities and Exchange Commission on Wednesday objected to the litigation releases in envelope maker Cenveo Inc.’s Chapter 11 plan, telling a New York bankruptcy court they go too far in forcing debtors to give up their legal rights.

  • May 10, 2018

    Toys R Us Clears Bidding Procedures For Over 270 Stores

    Toys R Us Inc. received court approval Thursday to implement proposed real estate bidding and sale procedures as it liquidates its business in the U.S., putting in place a timeline for the retail giant to sell its ownership or lease interests at close to 275 locations by the end of June.

  • May 10, 2018

    3 Things Lawyers Should Know About Chapter 11 Real Estate

    So far, 2018 has seen a wave of retailers and restaurant chains file for Chapter 11 protection — including most recently one of Applebee's largest franchise holders — and experts say such bankruptcy proceedings come with unique sets of challenges because they deal with leases and real property, as opposed to more traditional creditor-debtor matters. 

  • May 9, 2018

    Relativity's DIP Ask Slashed As It Faces Grilling In Ch. 11

    Relativity Media LLC, the film production house that just entered bankruptcy for the second time in three years, saw its $1.6 million DIP request nearly halved Wednesday by a dubious judge, and also told the court it's cut business ties with founder Ryan Kavanaugh.

  • May 9, 2018

    Small Businesses, Clients Face Off On Debt Discharge

    The U.S. Supreme Court is wrestling with the question of whether an individual who may have lied to obtain credit can have the debt wiped away in personal bankruptcy proceedings, an issue that has pitted financially distressed Americans seeking a fresh start against small businesses worried about being swindled.

  • May 9, 2018

    Ybrant Must Give Up Lycos Shares In $37M Award Row

    A New York federal judge agreed Tuesday to allow a South Korean technology company to take over India-based Ybrant Digital's interest in the search engine and web portal Lycos Inc. to help pay $37 million in arbitral awards issued over a failed stock purchase agreement.

  • May 9, 2018

    Bankrupt iHeartMedia Seeks OK To Pay $108M In Bonuses

    Radio broadcast giant iHeartMedia Inc. Tuesday asked a Texas bankruptcy court to approve the payment of up to $108 million in bonuses to more than 700 employees, saying the incentive is required for its restructuring to succeed.

  • May 9, 2018

    Tops Grocery Chain Defends Bid To Pay Bonuses In Ch. 11

    Tops Markets LLC defended its request to include $3.2 million in employee retention bonuses in its Chapter 11 plan, telling a New York bankruptcy court that the employees in question are key to keeping the supermarket chain afloat.

  • May 9, 2018

    Hedge Fund Fights $2.5M Settlement In Petters Ponzi Scheme

    Hedge fund Ritchie Capital Management told a Minnesota federal judge Tuesday the district court's lack of jurisdiction to approve a $2.5 million settlement between J.P. Morgan Chase & Co. and the receivership over the assets of fraudster Thomas Petters was one of several reasons to block the deal.

  • May 9, 2018

    Hedge Fund Boss Ran $200M Mismarking Scheme, Feds Say

    A hedge fund boss led a $200 million scheme to overstate the value of his now-bankrupt fund's residential mortgage-backed securities, the federal government said on Wednesday in a newly unsealed indictment that also charged two ​of his ​co-workers.

  • May 9, 2018

    McKinsey Critic Alleges False Ch. 11 Disclosures In RICO Suit

    A rival of McKinsey & Co. hit the global advisory firm with a lawsuit Wednesday in New York federal court for alleged racketeering violations, accusing McKinsey of intentionally failing to disclose disqualifying conflicts of interest in big bankruptcy cases.

  • May 9, 2018

    Ex-Pharmacist Denied Meningitis Acquittal Bid Amid Appeal

    A Massachusetts federal court reiterated Wednesday that a pharmacist convicted of 77 counts for manufacturing deadly drugs in the 2012 fungal meningitis outbreak cannot pursue an acquittal bid while simultaneously appealing the verdict.

  • May 8, 2018

    Bressler Amery Fined For Pursuing Client's Discharged Debt

    In a strongly worded opinion Tuesday, a New York bankruptcy judge slapped Bressler Amery & Ross PC with punitive fines and penalties for continuing to hound a former client for payments that were discharged through a Chapter 7 case, saying a firm with a bankruptcy department should have known better.

  • May 8, 2018

    Harvey Weinstein Fights Chubb For Payment Of Legal Defense

    Harvey Weinstein on Monday filed a counterclaim in New York federal court against the Chubb Group, alleging its refusal to defend or indemnify him for nearly a dozen sexual assault and harassment suits in the U.S. and abroad is a breach of contract.

  • May 8, 2018

    Bankrupt Westinghouse Seeks OK To Pay Worker Bonuses

    Westinghouse Electric Co. LLC asked a New York bankruptcy court Monday to let the nuclear power company provide several hundred employees with bonus payments totaling up to $19.6 million if it reaches certain performance milestones, adding that the incentives would help boost its performance.

Expert Analysis

  • Opinion

    Gorsuch's 1st Year Shows He Is A Conservative Activist

    Elliot Mincberg

    In his first year on the U.S. Supreme Court, Justice Neil Gorsuch has proven to be a narrow-minded elitist who consistently votes in favor of corporations and the powerful, acting to roll back protections for workers, consumers, LGBTQ individuals and other marginalized communities, says Elliot Mincberg of People for the American Way.

  • The Many Challenges Facing Venezuela Bribery Suit: Part 2

    Richard Cooper

    Resolution of the standing issues raised in the U.S. bribery suit brought by Venezuela’s state-owned oil company PDVSA may have implications not just for this case, but for whether PDVSA may be bound by the Venezuelan government to any future debt restructuring, say Richard Cooper and Boaz Morag of Cleary Gottlieb Steen & Hamilton LLP.

  • The Many Challenges Facing Venezuela Bribery Suit: Part 1

    Richard Cooper

    The documents filed thus far in the U.S. bribery suit brought by Venezuela’s state-owned oil company PDVSA make clear that the standing issues in this case are complicated. The case also presents questions as to whether it will have implications for financial creditors of PDVSA and the republic, say Richard Cooper and Boaz Morag of Cleary Gottlieb Steen & Hamilton LLP.

  • Why Bankruptcy Lawyer's Trade Secret Cases Failed

    James Morsch

    Peter Francis Geraci — owner of a large consumer bankruptcy firm based in Chicago — recently lost two trade secret cases, illustrating just how difficult it can be to win a lawsuit for misappropriation against individuals employed by a rival, says James Morsch of Butler Rubin Saltarelli & Boyd LLP.

  • Finance-Savvy Millennials Are Shifting Business Of Law

    Michael Perlich

    The impact of millennials has already been felt within the legal community by our eagerness to embrace new technologies. One way that we will have potentially even more impact lies in our willingness to embrace new ways of developing business and financing law, says Michael Perich of Burford Capital LLC.

  • Opinion

    Attorney-Client Privilege Is Alive And Well

    Genie Harrison

    The FBI raid of the office of President Donald Trump’s personal lawyer set off a firestorm of controversy about the sanctity of the attorney-client privilege, epitomized by Trump's tweet that the "privilege is dead." But attorney-client privilege is never taken lightly — I have battle scars from the times I have sought crime-fraud exceptions, says Genie Harrison of the Genie Harrison Law Firm.

  • Roundup

    Dissolving Practice

    Dissolving Practice

    In this series, experts discuss the unique aspects of closing a law firm, and some common symptoms of dysfunctionality in a firm that can be repaired before it's too late.

  • Series

    Dissolving Practice: How To Fix A Dysfunctional Law Firm

    Larry Richard

    I am often asked, “When there are one or more partner departures, what can a firm do to prevent this from escalating to a catastrophic level?” The short answer is “nothing.” Law firms need to adopt culture-strengthening lifestyles to prevent defections from occurring in the first place, says Larry Richard of LawyerBrain LLC.

  • Series

    Dissolving Practice: Partner Agreement Clauses That Can Help

    ​​​​​Leslie Corwin

    Given the competing public policies of protecting clients’ right to counsel of their choice, lawyer mobility, and the fiduciary duty partners owe to a dissolved firm, it behooves law firms to carefully review their partnership agreements to make sure they adequately spell out what happens in the unfortunate event that the law firm chooses to wind down, say ​​​​​Leslie Corwin and Rachel Sims of Blank Rome LLP.

  • Series

    Dissolving Practice: The Unfinished Business Doctrine

    Thomas Rutledge

    There has been, of late, significant dispute as to the application of the unfinished business doctrine, particularly with respect to hourly rate matters of now-dissolved large law firms. And the California Supreme Court’s recent decision in Heller Ehrman, like others as to similar points, is highly questionable, says Thomas Rutledge of Stoll Keenon Ogden PLLC.