Bankruptcy

  • February 12, 2018

    Potlatch To Pay $6M To EPA, DOT Over Pollution Cleanup

    Environmental lawyers at the U.S. Department of Justice have reached a $6 million consent decree with real estate investment trust and paper and wood mill unit owner Potlatch Corp. in Idaho federal court over the $13.43 million cost for cleanup of environmental contamination that Potlatch allegedly worsened at a former Idaho railroad operation site.

  • February 12, 2018

    Powersports Co. Says Ch. 11 Creditor Probe Growing Futile

    Bankrupt powersports company Velocity Holding Co. Inc. objected Monday to a request by its committee of unsecured creditors to compel the production of discovery into past transactions, saying the group is using a “false and misleading” front to broaden the scope of documents the company already agreed to turn over.

  • February 12, 2018

    Madoff Trustee Reaches $76M Settlement With Feeder Fund

    The trustee for Bernie Madoff's shuttered investment firm announced Monday that the bankrupt estate has settled Ponzi scheme profiteering allegations against a feeder fund for just over $76 million, saying the sum covers all transfers received by the fund in the two years preceding the collapse of Madoff's fraud.

  • February 12, 2018

    Gun Maker Remington To File Ch. 11 To Slash $700M In Debt

    Firearm maker Remington Outdoor Co. Inc. said Monday that it plans to file for Chapter 11 protection in Delaware with an agreement in hand with its creditors to slash some $700 million in debt from its balance sheet through an equity swap with term lenders and noteholders.

  • February 12, 2018

    Takata Paves Way For Ch. 11 Exit With Tort Committee Deal

    Takata came to a major settlement over the weekend with the committee representing those suing for wrongful death, personal injury and other claims connected to the deadly air-bag inflators that prompted its bankruptcy, clearing away what was expected to be stiff opposition to the company’s Chapter 11 plan confirmation.

  • February 9, 2018

    Plaintiffs Want To Rework $1B Deal With GM Ch. 11 Trust

    A group alleging damages from defects in old General Motors' cars Thursday asked a New York bankruptcy court for a few more weeks to rework a $1 billion settlement a GM bankruptcy trust backed out of last month, saying the trust has new management and counsel and a deal may still be possible.

  • February 9, 2018

    MBS Trustees Under Scrutiny At Close Of Lehman Ch. 11 Trial

    Counsel for a group of residential mortgage-backed securities trusts faced skepticism from the bench Friday while delivering closing arguments in a bid to augment the trusts’ allowed Chapter 11 claim against Lehman Bros. Holdings Inc. for selling them misrepresented loans, saying their $11.4 billion damage calculations have been substantially supported.

  • February 9, 2018

    Aerogroup Licensee Opposes Sale That Would End Its Rights

    A licensing partner of bankrupt shoe and accessory retailer Aerogroup International Inc. objected Friday to the debtor’s proposed sale of its assets, arguing that it would breach their long-term licensing deal.

  • February 9, 2018

    Archer & Greiner Nabs NYC Bankruptcy Boutique

    New Jersey-based Archer & Greiner PC has announced it is expanding its bankruptcy group and doubling its New York City presence with the addition of boutique law firm DiConza Traurig Kadish LLP to its bench.

  • February 9, 2018

    SEC Seeks Contempt For Accused Woodbridge Ponzi Boss

    Securities and Exchange Commission attorneys sought a contempt of court finding against accused fraudster Robert H. Shapiro late Wednesday, saying in a federal district court motion that Shapiro failed to comply with an order to disclose family trust assets and accounts under his control.

  • February 9, 2018

    Ticket Co. CEO Plans Guilty Plea In Ponzi Scheme Case

    Jason Nissen, the former CEO of bankrupt ticket brokerage National Events Holdings LLC, is planning to enter a guilty plea, his lawyer told a Manhattan federal judge Friday, after prosecutors charged him with running the business as a $70 million Ponzi scheme.

  • February 9, 2018

    UBS Escapes $2.9B Madoff Feeder Fraud Suit In 2nd Circ.

    A federal appeals court rejected a $2.9 billion suit against UBS AG and others on Friday over their role in Bernie Madoff's Ponzi scheme, saying the lower court was correct to take the case out of state court and to find that it lacked the authority to allow the case to proceed further.

  • February 8, 2018

    Bankrupt Cumulus Gets OK To Pay Employee Bonuses

    Hundreds of employees of bankrupt radio giant Cumulus Media Inc. will see 2017 incentive bonuses paid out after a New York bankruptcy judge approved four bonus programs on Thursday.

  • February 8, 2018

    Lehman Puts Finishing Touch On MBS Claims Estimation Trial

    Attorneys for Lehman Brothers Holdings Inc. held firm in closing arguments Thursday that trustees accusing the defunct investment bank of selling toxic mortgage-backed securities have failed to show damages claims in excess of the $2.4 billion Lehman will accept.

  • February 8, 2018

    Bankrupt Hotel Developer Must Face Bid For $15M Payout

    A group of investors in an Iowa hotel franchise can continue to pursue roughly $15 million in fraud judgments against a former business partner who they claim hid millions of dollars in assets and filed for bankruptcy to avoid paying up, a Minnesota federal judge ruled Wednesday.

  • February 8, 2018

    TerraForm Can't Use SunEdison To Halt $231M Suit

    A New York state judge Tuesday rejected a request by SunEdison yieldco TerraForm Power LLC to put a $231 million investor suit on hold pending SunEdison’s emergence from Chapter 11, saying the green energy giant faces no new liability from the suit.

  • February 8, 2018

    5 Cos. Price IPOs Totaling $959M Despite Market Turbulence

    Four operating businesses and a blank check company priced initial public offerings that began trading Thursday after raising $959 million at various points in their price ranges, completing deals despite renewed market volatility.

  • February 8, 2018

    Judge Skeptical Of Dewey CFO's Bid To Vacate Conviction

    Former Dewey & LeBoeuf LLP Chief Financial Officer Joel Sanders got a cold reception from a New York state judge when he argued for his conviction to be nixed on Thursday, with the judge questioning whether a key witness had truly recanted.

  • February 8, 2018

    Ascent Resources Marcellus OK'd For Quick Prepack Ch. 11

    A Delaware bankruptcy judge on Thursday gave Ascent Resources Marcellus Holdings LLC the green light for a prepackaged Chapter 11 case aiming for a six-week confirmation target to rework roughly $1 billion in debt, allowing the oil and gas developer and producer to fund its proceedings with lender cash.

  • February 8, 2018

    Accused Ponzi Leader Seeks End To SEC’s $1B Asset Freeze

    Accused Ponzi scheme architect Robert H. Shapiro asked a Florida federal judge late Wednesday to lift or modify a U.S. Securities and Exchange Commission freeze on some $1 billion in assets under his control, citing limitations in a recent U.S. Supreme Court ruling and calling the lock-up excessive.

Expert Analysis

  • What To Do With Performance Bonds When Projects Default

    Gary Strong high rez.jpg

    Sureties have surety defenses which sometimes allow them to disclaim coverage under performance bonds. However, this often requires a long and lengthy litigation in which the surety must sustain multiple burdens of proof, says Gary Strong of Seiger Gfeller Laurie LLP.

  • Oil States Patent Dispute Will Affect Bankruptcy Courts

    Benjamin Feder

    A patent dispute before the U.S. Supreme Court this term, Oil States v. Greene’s, concerns the limits of Congress’ ability to create courts under Article I and therefore raises separation-of-power issues similar to those in Stern v. Marshall, where the Supreme Court limited the authority of the bankruptcy courts, says Benjamin Feder of Kelley Drye & Warren LLP.

  • 6 E-Discovery Predictions For 2018

    Erich Potter

    Erich Potter, discovery counsel with Oles Morrison Rinker & Baker LLP, discusses six ways e-discovery will continue to excite and confound in 2018.

  • 6 Roles To Embrace In An Evolving Legal Industry

    Rob MacAdam

    Smart law firms are increasingly positioning professionals to proactively guide them as the legal landscape reshapes itself, harnessing six emerging roles within their organizational charts to embrace new approaches, tools and systems, says Rob MacAdam of HighQ.

  • Crystallex's Implications For Holders Of Venezuelan Debt

    Richard Cooper

    As the economic situation in Venezuela continues to deteriorate and the number of bond defaults continues to mount, the Third Circuit’s recent ruling against Crystallex is a poignant reminder about the challenges of recovering on claims against a determined sovereign. However, Crystallex is not without further litigation options, say Richard Cooper and Boaz Morag of Cleary Gottlieb Steen & Hamilton LLP.

  • Opinion

    This Year, Let’s Invest In Lawyer Resiliency

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    Highly profitable companies have comprehensive corporate wellness programs that realize plateauing health care costs, greater employee engagement, and a demonstrable competitive advantage. The legal field needs a similar awakening, says Rudhir Krishtel, a former partner of Fish & Richardson and senior patent counsel at Apple.

  • 5 Legal Technology Predictions For 2018

    Jeff Ton

    While each new year is expected to bring fresh challenges to the legal industry, 2018 will be particularly disruptive to the status quo. Both law firms and organizations that cater to the legal community should prepare for developments like increasing pressure from international clients and data security risks caused by multigenerational gaps, says Jeff Ton of Bluelock LLC.

  • Health Republic’s Curious Liquidation: Part 13

    James Veach

    A year and a half into Health Republic's liquidation, policyholders have yet to receive any money from approved claims. We will see what the Feb. 14 status conference reveals, and hopefully some of Health Republic's former policyholders will appear and participate, says James Veach of Mound Cotton Wollan & Greengrass LLP.

  • Litigation Finance Trends To Watch In 2018

    Jay Greenberg

    Jay Greenberg and Max Volsky, co-founders of litigation finance platform LexShares Inc., analyze emerging trends based on conversations with their investors and executives in this rapidly evolving sector.

  • The Enneagram And The Practice Of Law

    Jennifer Gibbs

    Study of the Enneagram personality typing system can provide attorneys with better insights into themselves, and into those they interact with professionally, including clients, opposing counsel and judges, says Jennifer Gibbs of Zelle LLP.