Bankruptcy

  • September 14, 2017

    Optima Steel Seeks Ch. 11 Redo After Missed $200M Influx

    Optima Specialty Steel Inc. reported a scramble Thursday to reorganize its already confirmed Chapter 11 plan, telling a Delaware bankruptcy judge the effort follows a sponsor’s missed $200 million cash delivery deadline and resulting plan support agreement termination.

  • September 14, 2017

    Vitamin World Cleared For $1.6M Ch. 11 Service Contracts

    Bankrupt retailer Vitamin World Inc. locked up rare, first-hearing approval Thursday for $1.6 million in payments to continue services from a pre-Chapter 11 contractor, over objections from the Office of the U.S. Trustee.

  • September 14, 2017

    Fund Takes Nix Of $230M Madoff Claim To High Court

    A hedge fund is asking the U.S. Supreme Court to review a Second Circuit decision that let a U.S. bankruptcy court void the sale of a $230 million claim despite the earlier approval of a foreign bankruptcy court, saying the precedent could have “destructive consequences” for multinational bankruptcy proceedings if it’s allowed to stand.

  • September 14, 2017

    Puerto Rico Utility Creditors Lose Bid To Appoint Receiver

    The oversight powers of the federally appointed board guiding Puerto Rico's historic restructuring were reaffirmed in a court ruling Thursday, finding that a group of bondholders could not move to appoint a receiver for the island's insolvent electric company without the panel's consent.

  • September 14, 2017

    Chieftain's Plan Confirmed After Smooth Ch. 11 Process

    The peaceful Chapter 11 process of fracking sand company Chieftain Sand and Proppant LLC ended Thursday when a Delaware bankruptcy judge approved its consensual plan of liquidation that will see its estate wound down over the next few months.

  • September 14, 2017

    Firm Tells 5th Circ. Coverage Is Owed For Malpractice Suits

    Law firm Shelton & Associates on Wednesday asked the Fifth Circuit to reverse a pair of lower court decisions denying insurance coverage for two different legal malpractice suits, saying the district court misinterpreted the policy’s prior knowledge exclusion.

  • September 14, 2017

    Kobre & Kim Snags Ex-Brown Rudnick Insolvency Atty

    A cross-border insolvency attorney who spent 15 years at Brown Rudnick LLP is joining Kobre & Kim in New York, bringing experience that includes helping the liquidator for an offshore Bernard L. Madoff feeder fund cancel the sale of its $230 million claim against the Ponzi schemer’s defunct firm.

  • September 14, 2017

    One Of Dewey 'Secret Seven' Cooperators Sentenced

    A Manhattan judge sentenced one of seven former Dewey & LeBoeuf LLP employees who pled guilty and cooperated in the prosecution of three of the firm's executives, giving former director of revenue support Dianne Cascino an agreed-upon sentence of community service on Thursday.

  • September 13, 2017

    McDermott Adds Private Equity Partner In Chicago

    McDermott Will & Emery LLP's Chicago office added a new partner to its corporate and transactional practice group this week when Michael McStay joined the firm from Ropes & Gray LLP, where he focused on private equity deals for seven years.

  • September 13, 2017

    Puerto Rico Fuel Line Lenders Prep For Utility Revenue Fight

    Units of Scotiabank and hedge fund Solus Alternative Asset Management have asked the court overseeing Puerto Rico’s restructuring to let them intervene in a suit between the island’s government-owned power company and its bondholders, saying they’re owed $696 million by the power company that must be paid back ahead of all other claims.

  • September 13, 2017

    California Proton Reaches Deal For Facility Transition

    Bankrupt oncology therapy firm California Proton Treatment Center LLC on Wednesday asked a Delaware judge to approve a deal with its lenders and its operating contractor that would allow for the orderly transition of the facility through a bankruptcy sale after months of litigation.

  • September 13, 2017

    GM Trust Says Ditching $15M Defect Settlement Was Best Path

    A General Motors bankruptcy trust handling creditor claims on Tuesday defended its last-minute decision to back out of a $15 million settlement with car purchasers and accident victims over alleged vehicle defects, saying it made more sense to accept GM’s offer to pay defense litigation costs.

  • September 13, 2017

    Golden Nugget Casinos Operator Prices $1.4B In Notes

    Casino and hotel operator Golden Nugget Inc. announced Wednesday that it had priced a $1.415 billion notes offering and that it will combine its casino operations with those of restaurant chain operator Landry’s Inc., joining the two companies, which are both owned by a Texas billionaire. 

  • September 13, 2017

    Chase's $425M Claim Against Auto Parts Mogul Reaffirmed

    JPMorgan Chase came one step closer on Wednesday to recovering $425 million the bank says was improperly taken out of a trust by an auto parts magnate to avoid paying bankruptcy debts, as a Michigan federal court reaffirmed an earlier ruling labeling the move a fraudulent transfer. 

  • September 13, 2017

    Seadrill To Defer Debt Payments, Raise $1B Through Ch. 11

    Distressed offshore oil rig operator Seadrill Ltd. filed for bankruptcy on Tuesday with prenegotiated plans to defer $5.7 billion worth of secured debt payments and speedily emerge from Chapter 11 with more than $1 billion in new capital, hoping to position itself for an anticipated market recovery.

  • September 13, 2017

    Caesars Wins OK Of $126M Management Liability Settlement

    Caesars Entertainment Operating Co. received the green light from an Illinois bankruptcy court on Wednesday for a $126 million settlement with its insurers to cover directors and executives in its fraudulent transfer suit against its own parent corporation, bringing the coverage dispute to an end.

  • September 13, 2017

    Ex-Yukos Shareholders Must Subpoena Atty In Person: Judge

    Former Yukos Oil Co. shareholders trying to subpoena a lawyer they believe has knowledge of alleged Russian meddling that upended a mammoth $50 billion arbitral award in their favor cannot get around federal rules requiring he be served in person, a California federal magistrate judge ruled Wednesday.

  • September 12, 2017

    50 Cent Sues Ex-Managers For Tax Liability, ‘Self-Dealing’

    Curtis “50 Cent” Jackson sued GSO Business Management LLC and one of its ex-partners on Tuesday, saying his former business managers ignored a way to reduce his tax liability during his bankruptcy and also “helped themselves” to $90,000 in fees without permission.

  • September 12, 2017

    Westinghouse Can Pay Bonuses To Retain Key Employees

    Westinghouse Electric Co. LLC was given the green light Tuesday to implement a $13.8 million bonus program meant to incentivize more than 200 of the bankrupt nuclear energy giant’s employees to continue working over the coming months while the company is in Chapter 11.

  • September 12, 2017

    GM Plaintiffs Move To Enforce Revoked $15M Bankruptcy Deal

    A group of car owners and claimholders alleging damages from defects in old General Motors' vehicles asked a New York federal court Monday to enforce a $15 million settlement with a bankruptcy trust that was all but signed before the manufacturer allegedly undermined the deal.

Expert Analysis

  • Opinion

    It's Time To Improve Voir Dire In Federal Court

    Lisa Blue

    During the jury selection process, many times parties submit proposed voir dire questions, but the court ultimately chooses the questions to be asked and does all of the questioning of the jury panel. While this approach is judicially efficient, rarely do we learn anything meaningful from the panel members, say Lisa Blue of Baron and Blue and Robert Hirschhorn of Cathy E. Bennett & Associates.

  • Series

    Notes From A Law Firm Chief Privacy Officer: Insider Risks

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    As law firms hold sensitive information not only related to the firm but to the firm’s clients, an insider threat — whether it's a "bad actor employee" or inadvertent activity — poses a particular concern. There are steps that privacy officers can initiate to help minimize these threats, says Patricia Wagner, chief privacy officer for Epstein Becker Green.

  • Understanding When Claims Travel With The Debt

    Abbe Dienstag

    A recent case in New York state court, One Williams Street Capital Management v. U.S. Education Loan Trust IV, affords a useful opportunity to understand both the reach and the limitations of a uniquely New York statute, which provides that a transfer of a bond “vests in the transferee all claims or demands of the transferrer,” say Abbe Dienstag and John Bessonette of Kramer Levin Naftalis & Frankel LLP.

  • Series

    Notes From A Law Firm Chief Privacy Officer: Balancing Act

    Kristin Jones

    As the role of law firm chief privacy officer becomes more prevalent and expansive, many CPOs are finding themselves in the midst of a delicate balancing act — weighing compliance with government regulations and client requirements on one side with the needs of firm business on the other, says Kristin Jones, chief privacy officer for Stradley Ronon Stevens & Young LLP.

  • Facing Mass Store Closings As A Retail Landlord

    Anthony Borich

    According to industry reports, retailers have announced over 3,000 store closings already this year, which is double the total for all of 2016. As turmoil in the retail business intensifies, landlords must carefully consider transaction, litigation and bankruptcy strategies in order to minimize loss, say attorneys with Jenner & Block LLP

  • How The IPad Can Be A Litigator's Best Friend

    Paul Kiesel

    New mobile computing tools — both hardware and applications — are changing the technology paradigm for legal practitioners. In particular, the combination of the 12.9-inch iPad Pro, the Apple Pencil and the LiquidText annotation app can revolutionize both trial preparation and courtroom litigating, says attorney Paul Kiesel, in his latest review of tech trends.

  • Series

    Notes From A Law Firm Chief Privacy Officer: CPO Vs. CISO

    Mark McCreary

    To understand the role of the law firm chief privacy officer — and why that person ought to be a lawyer — it’s important to distinguish the role they fill from that of the chief information security officer, says Mark McCreary, chief privacy officer for Fox Rothschild LLP.

  • 5 Questions To Ask Before Entering Joint-Representation AFA

    Natalie Hanlon Leh

    One growing trend is for clients to enter into alternative fee arrangements in which one law firm represents multiple parties who “share” fees and costs in a related matter. This way parties can more efficiently manage a matter and reduce their individual legal fees. But joint representation is not without its own risks and challenges, say attorneys with WilmerHale.

  • Legal Incubators Can Help New Lawyers And Society

    Martin Pritikin

    Legal incubators serve as an important bridge to practice and a crucial step toward aligning the incentives of new lawyers with the needs of their clients. They may even pose a threat to the traditional law school model itself, and that's not necessarily a bad thing, says Martin Pritikin, dean of Concord Law School at Kaplan University.

  • Puerto Rico Bondholders Share The Pain

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    Recent actions by Puerto Rico’s oversight board create a relatively broad band of recovery levels for bondholders. Investor uncertainty will likely persist for the near and medium terms, says Bradley Wendt of Charles River Associates.