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Bankruptcy

  • 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.

  • August 9, 2018

    1st Circ. Hands Win To Puerto Rico In Bond Lien Dispute

    Hedge fund Peaje Investments' $65 million in bonds issued by Puerto Rico's Highways and Transportation Authority are not secured by a lien on toll revenues, the First Circuit has affirmed in a decision that amounts to a victory for the commonwealth and yet another setback for creditors of its various government agencies.

  • August 9, 2018

    Weinstein Given Until Sept. To Respond To Chubb's UK Suit

    Harvey Weinstein has been given until September to file a response in a London court to attempts by the European arm of U.S. insurer Chubb Group to avoid covering the American movie producer's legal costs from fighting several sexual assault lawsuits.

  • August 8, 2018

    Bowles Rice, Title Insurer Set For Trial In $41M Contract Row

    Bowles Rice LLP is headed to trial against a longtime partner, title insurer First American, after a federal court ruled Wednesday enough facts remain disputed about the law firm's share of blame around a $41 million settlement following the rocky construction of a coal power plant, whose title First American insured.

  • August 8, 2018

    1st Circ. Opens Path For PREPA Bondholders' Receiver Bid

    The First Circuit on Wednesday reversed a ruling by the judge presiding over Puerto Rico's restructuring proceedings, finding she is not precluded from lifting automatic stay protections for the island's bankrupt electric utility so that bondholders can pursue legal action to appoint a receiver.

  • August 8, 2018

    Indian Bank Raises Fraud Concern In Samuels' Del. Ch. 11

    India’s second-largest national bank confirmed its interest Wednesday in the day-old Delaware Chapter 11 of Samuels Jewelers Inc., citing ongoing probes of jewelry chain fraudsters in India and the bankruptcy of a jewelry retailer in New York with ties similar to Samuels’.

  • August 8, 2018

    Woodbridge OK'd For $215M In Del. Ch. 11 Noteholder Loans

    Acknowledging a possible lack of precedent, a Delaware bankruptcy judge on Wednesday approved procedures for “distressed lending” to alleged Ponzi scheme noteholders trapped in The Woodbridge Group LLC Chapter 11, with up to $215 million in note-backed loans possible.

  • August 8, 2018

    Bribery Trial Judge Asks How $60K Cash Fits In 'Man-Purse'

    The Manhattan federal judge overseeing the bribery trial of former union boss Norman Seabrook was curious Wednesday about the $60,000 allegedly paid to Seabrook in exchange for a hedge fund investment, pressing a key witness on how that much cash could have been stuffed in a small-sized “man-purse.”

  • August 8, 2018

    Nine West Creditors Seek Lenders' Info On 2014 Takeover

    Unsecured creditors of Nine West Holdings Inc. have asked the bankruptcy court to allow them to expand their probe into Sycamore Partners' 2014 takeover of the women's shoe and apparel company, saying they need to subpoena additional lenders.

  • August 8, 2018

    Lenders In $25B EFH Loan Row Get No Priority, 3rd Circ. Says

    The Third Circuit on Tuesday found Marathon Asset Management LP and several Polygon Global Partners funds do not have a priority claim on the $1.25 billion remainder of a $24.5 billion loan in the Energy Future Holdings Corp. bankruptcy.

  • August 7, 2018

    J&M Sales Will Seek Restructuring In Ch. 11 Case

    Bankrupt discount retailer J&M Sales Inc. will pursue a restructuring path in its Chapter 11 case, debtor attorneys told a Delaware judge Tuesday, but is keeping options open for an asset sale or liquidation as it struggles with a heavy debt load.

  • August 7, 2018

    Bankrupt Real Mex Gets Access To $1.6M In DIP Financing

    The parent company of casual dining chain Real Mex Restaurants received bankruptcy court approval Tuesday to access $1.6 million of a $5.5 million debtor-in-possession financing package after the interim draw amount was slashed in half over questions about workers’ compensation program fees.

  • August 7, 2018

    Fed Oversight Board Wins Power Fight With Puerto Rico Gov.

    A federal judge Tuesday rejected arguments that Puerto Rico’s federal financial oversight board is exceeding its authority and found that it can impose a budget over the objections of the island’s elected officials.

  • August 7, 2018

    Cooperator Tells Jury He Paid Off Ex-Union Boss As A Favor

    A real estate developer-turned-government-cooperator told a Manhattan jury Tuesday that he carried a $60,000 cash bribe to former union president Norman Seabrook on behalf of hedge fund owner Murray Huberfeld because he thought both men were "powerful" and he wanted them each to owe him a favor.

  • August 7, 2018

    Jewelry Co. Hits Ch. 11 Amid Indian Bank Fraud Allegations

    Chain retailer Samuels Jewelers Inc. filed for Chapter 11 bankruptcy in Delaware on Tuesday, claiming that allegations of bank fraud against executives of its parent company in India — including the uncle of alleged fraudster Nirav Modi — have damaged the business and worsened its financial struggles.

  • August 7, 2018

    Level Solar Grilled By Court Over Ch. 11 Case Progress

    A New York bankruptcy judge on Tuesday pressured an attorney for solar panel installer Level Solar Inc. to address delays in moving the company toward a restructuring plan amid calls to liquidate the estate while ordering a holdback of nearly half of his request for legal fees.

  • August 7, 2018

    5th Circ. Told Bankruptcy Can't Touch $5M Crash Settlement

    An attorney who reached a $5 million settlement for his clients who were injured in a bus crash told a panel of Fifth Circuit judges during oral arguments in Houston Tuesday that the law doesn't support a bankruptcy judge's decision to pull those insurance policy proceeds into the bankruptcy estate of the now-defunct bus company.

  • August 6, 2018

    Court Declines Fast Ch. 11 Hearing On $2.4M Ryckman Claim

    A liquidating trustee for bankrupt natural gas storage venture Ryckman Creek LLC lost a bid Monday for quick rejection of $2.4 million in purchase deductions sought by the company’s Chapter 11 buyer, just ahead of a fight over a disputed $11 million equity payment.

  • August 6, 2018

    2nd Circ. Nixes $371M Antitrust Suit Against Time, Hearst

    The Second Circuit rejected a defunct magazine wholesaler’s attempt to revive its $371 million antitrust suit against magazine publishers including Time and Hearst, finding in a decision made public Monday that there was insufficient evidence that the publishers conspired to put it out of business.

Expert Analysis

  • 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.

  • Opinion

    It's Not All About The Benjamins, Baby (Lawyer)

    J.B. Heaton

    Notwithstanding the latest salary war among prominent law firms, I urge my middle-aged and older colleagues to help the recent graduates we know focus on the long term. Even if the salary is the same, there is a big difference between an institutional firm and the relatively younger firms matching BigLaw, says J.B. Heaton, a University of Chicago business law fellow and former partner at Bartlit Beck.

  • Asbestos Transparency Laws Can Stop Double Recovery

    Scott Hunsaker

    Some asbestos plaintiffs have obtained full recovery from viable defendants and simultaneously, or later, recovered more money for the same injury from asbestos bankruptcy trusts established by those same entities. Recognizing this problem, more and more states are turning to asbestos transparency laws as a solution, say Scott Hunsaker and Karl Borgsmiller of Tucker Ellis LLP.

  • Series

    Cities In Distress: Are There True Alternatives To Ch. 9?

    Lawrence Larose

    Some distressed municipalities — including Atlantic City, New Jersey, and Hartford, Connecticut — have recently restructured outside of Chapter 9, through legislation and negotiations. But such fixes are intensely political in nature and are entirely dependent on the will of government officials, say Lawrence Larose and Samuel Kohn of Norton Rose Fulbright.

  • Claims Trading Lessons From Delaware Bankruptcy Court

    Michael Rupe

    The Delaware bankruptcy court's opinion last month in Woodbridge serves as a cautionary reminder that policy preferences for free claim assignability do not serve to nullify properly drafted anti-assignment provisions, say attorneys with King & Spalding LLP.

  • Series

    Judging A Book: Hood Reviews 'Lawyering From The Inside Out'

    Judge Denise Hood

    Law professor Nathalie Martin's new book, "Lawyering From the Inside Out: Learning Professional Development Through Mindfulness and Emotional Intelligence," can be of value to any lawyer aiming to achieve greater productivity, relieve the stress of the legal profession and focus on goals, says U.S. District Chief Judge Denise Page Hood of the Eastern District of Michigan.

  • Series

    Cities In Distress: A Tale Of 3 California Bankruptcies

    Karol Denniston

    The Chapter 9 bankruptcies of Vallejo, San Bernardino and Stockton have left a legacy of challenges facing California municipalities that seek to restructure their obligations. These cases show that a comprehensive restructuring remains illusory because restructuring pension obligations is legally complicated and politically sensitive, says Karol Denniston of Squire Patton Boggs LLP.

  • 3 Top E-Discovery Case Law Lessons Of 2018 (So Far)

    Casey Sullivan

    The blockbuster e-discovery cases, with big sanctions and bigger controversies, have been few and far between this year. But that doesn’t mean the legal questions around e-discovery have been answered. Let’s take a closer look at three cases worthy of our attention, says Casey Sullivan, an attorney at discovery technology provider Logikcull.

  • Series

    Cities In Distress: What Chicago's Bankruptcy May Look Like

    Adam Levitin

    In the five years since Detroit filed for Chapter 9 bankruptcy, people have wondered which big city will be next. But the next big-city bankruptcy will not be about one local government in crisis. It is more likely to be a crisis involving many overlapping local governments, in a place like Chicago, say Adam Levitin of Georgetown University and David Schleicher of Yale University.

  • Opinion

    Law Schools Must Take A Stand Against Mandatory Arbitration

    Isabel Finley

    Later this week, Harvard Law students will begin bidding on interview slots with the nation’s top law firms. Our institutions owe it to their students not only to require firms to disclose mandatory arbitration provisions in new associate contracts, but also to bar employers from on-campus recruiting if they require these provisions, says Isabel Finley, a third-year student at Harvard Law School and president of the Harvard Women’s Law Association.