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Bankruptcy

  • October 9, 2018

    Mattress Firm Wants Rent, Store Reductions In Del. Ch. 11

    Bankrupt retailer Mattress Firm Inc. told a Delaware judge Tuesday that it wants rent concessions from many of its surviving stores, in addition to the ability to quickly close up to 700 locations, during an initial hearing for its more than $3.3 billion Chapter 11 restructuring.

  • October 9, 2018

    Stalking Horse Bid Elusive In Open Road Films Ch. 11 Case

    Attorneys for bankrupt film distributor Open Road Films LLC told a Delaware judge Tuesday that its efforts to secure a stalking horse bidder in its Chapter 11 case had not yet been successful, and the debtor went ahead with submitting its sale bidding procedures without a baseline offer.

  • October 9, 2018

    Ampal Reaches $150M Deal To Resolve Gas Row With Egypt

    Bankrupt Ampal-American Israel Corp. has reached a $150 million deal to resolve several arbitrations involving Egypt and two state-owned oil and gas companies — one of which resulted in a $1.033 billion arbitral award against Egypt — stemming from a terminated natural gas deal, according to documents filed in New York bankruptcy court.

  • October 9, 2018

    FIKA's Proposed $11M Sale To Ch. 11 Lender Approved

    FIKA, a bankrupt New York City coffee chain inspired by Swedish coffee culture, inched forward Tuesday in its bid to sell the business to its secured lender in Chapter 11 for roughly $11.4 million and remain in operation.

  • October 9, 2018

    Westmoreland Coal Hits Ch. 11 With Plan For Lender Takeover

    Westmoreland Coal Co. on Tuesday became the latest coal company to file for Chapter 11, telling a Texas bankruptcy court it has reached an agreement with a lender group to restructure $90 million in debt and sell off its core business assets.

  • October 9, 2018

    Ill. Atty Accused Of Defaming EB-5 Fund To Chinese Investors

    The U.S. Immigration Fund LLC has sued an Illinois attorney, his business partner and a Hong Kong consulting firm for fraud and defamation in New York state court, alleging they defrauded the EB-5 center out of millions by making false statements about the center to Chinese investors seeking EB-5 visas and inducing them to withdraw their capital from the fund.

  • October 9, 2018

    Justices Won't Review Objection To Samson Resources Ch. 11

    The U.S. Supreme Court on Tuesday refused to second-guess a Third Circuit opinion affirming the dismissal of an untimely appeal of a bankruptcy court order authorizing Samson Resources Corp. to sell its interest in the oil and gas lease governing a well in Louisiana as part of the company’s Chapter 11 reorganization.

  • October 5, 2018

    Kossoff & Kossoff Accused In $100M Accounting Cover-Up

    The Chapter 11 trustee for industrial staffing agency Corporate Resource Services Inc. has hit Kossoff & Kossoff LLP with a malpractice suit that claims the accounting firm helped cover up $100 million in unpaid tax liabilities that ultimately brought down CRS.

  • October 9, 2018

    CORRECTED: Ex-Exec Of Modi Jewelry Co. Seeks Access To D&O Coverage

    The ex-president of a company owned by billionaire jeweler Nirav Modi on Thursday asked a New York bankruptcy court for an order allowing one of his company’s directors and officers insurance to pay for his legal defense, saying the policy proceeds are not estate property. Correction: A previous version of this story incorrectly identified the individual filing the motion. The error has been corrected.

  • October 5, 2018

    Bondholders Seek To Appoint Receiver For Puerto Rico Utility

    A group of bondholders on Thursday renewed their call to put a receiver in charge of Puerto Rico’s electric utility, while the island’s federally appointed fiscal oversight board sought information from the governor’s office about an announced electric rate cut.

  • October 5, 2018

    ATD’s $1.2B DIP Financing Approved Over Trustee’s Objection

    A Delaware bankruptcy judge on Friday approved a roughly $1.2 billion debtor in possession financing package in tire distributor ATD Corp.’s Chapter 11 over the objection of the Office of the U.S. Trustee, which flagged more than $600 million of prepetition debt being rolled up into the financing.

  • October 5, 2018

    Asbestos Trusts Come Under DOJ Civil Investigation

    The U.S. Department of Justice is turning up the heat to ferret out abuses and potential cases of fraud in the country’s multibillion-dollar asbestos bankruptcy trust system.

  • October 5, 2018

    Deals Rumor Mill: Salini Impregilo, CannTrust, Civitas

    Salini Impregilo SpA is eyeing a possible deal to buy some or all of Italian construction company Astaldi; CannTrust is discussing a partnership deal in the food, beverage and cosmetics industries; and Civitas Solutions Inc. is exploring a possible sale.

  • October 5, 2018

    Mattress Firm Files For Ch. 11 With $3.3B Debt, Exit Plan

    Nationwide mattress retailer and distributor Mattress Firm Inc. retreated into Chapter 11 in Delaware bankruptcy court early Friday with a prepackaged plan for a $3.3 billion debt restructuring, hauling along 40 affiliates and plans to close hundreds of its 3,230 stores.

  • October 4, 2018

    HealthNow Wants Out Of Hospitals' Benefits Payment Suit

    HealthNow New York Inc. has asked a Texas federal court just to allow it to escape an Employee Retirement Income Security Act suit from seven affiliated hospitals which had claimed that dozens of Blue Cross Blue Shield entities underpaid them by tens of millions of dollars.

  • October 4, 2018

    Sedgwick’s Ch. 11 Filing 'A Success Story,' Judge Told

    A California bankruptcy judge on Thursday noted the “astonishing amount” of work Sedgwick LLP did prior to its Chapter 11 filing, after an attorney for the now-defunct firm touted it as a bankruptcy “success story” — all its employees have been paid and found new jobs since the firm shuttered in January. 

  • October 4, 2018

    Bankrupt Verity Health Fights Leases, Citing $25M Loss

    Nonprofit hospital chain Verity Health asked a California bankruptcy court on Wednesday to be allowed to cut its ties to a sports medicine practice, saying the contracts would cost the chain $25 million over the next nine years.

  • October 4, 2018

    Bank Units Urge Judge To Deny FDIC A Redo In Colonial Suit

    Wells Fargo and First Horizon units told a New York federal judge on Wednesday that the Federal Deposit Insurance Corp. is leaning on a suspect state regulator policy statement as part of a misguided effort to salvage dismissed claims against them in a suit over the sale of residential mortgage-backed securities to now-defunct Colonial Bank.

  • October 4, 2018

    Applebee's Opposes Ch. 11 Franchise Deal Rejection Attempt

    The parent company of restaurant chain Applebee's objected Thursday in Delaware bankruptcy court to an attempt by its largest franchisee to reject the agreements that allow debtor RMH Franchise Holdings to operate six restaurants, saying it still believes the deals were terminated before the bankruptcy case began.

  • October 4, 2018

    Madoff Trustee's $156M BNP Paribas Clawback Bid Trimmed

    A New York bankruptcy judge on Wednesday partially dismissed an attempt by the trustee of Bernie Madoff’s investment company to claw back $156 million from BNP Paribas SA, saying the bank did not know it was dealing with a Ponzi scheme.

Expert Analysis

  • Transitioning Cos. Can't Forget Pending Green Cards

    Hector Chichoni

    When sponsoring foreign national employees for employment-based lawful permanent residence in the U.S., there are many factors an employer must consider if it is restructuring, relocating or downsizing its operations to avoid the consequences of noncompliance under current U.S. immigration law, says Hector Chichoni of Duane Morris LLP.

  • Calif.'s New Rules For Lawyers Move Closer To ABA Model

    Mark Loeterman

    The first comprehensive overhaul of California's Rules of Professional Conduct in nearly 30 years becomes operational on Nov. 1. Some of the new rules mirror the model language used by the American Bar Association, but many continue to reflect California’s unique approach to certain ethical questions, says Mark Loeterman of Signature Resolution LLC.

  • Know The Limits To Atty Public Statements During A Trial

    Matthew Giardina

    The balancing act between protecting attorneys’ speech rights and ensuring unbiased adjudications was highlighted recently in two cases — when Michael Cohen applied for a restraining order against Stephanie Clifford's attorney, and when Johnson & Johnson questioned whether a Missouri talc verdict was tainted by public statements from the plaintiffs' counsel, says Matthew Giardina of Manning Gross & Massenburg LLP.

  • Clarifying The Scope Of Bankruptcy Code 3rd-Party Injunction

    Craig Goldblatt

    The Third Circuit’s decision last month in W.R. Grace contains valuable lessons for insurers on the benefits that can be obtained by a third-party injunction issued under Section 524(g)(4) of the Bankruptcy Code, say Craig Goldblatt and Nancy Manzer of WilmerHale.

  • In Calif., Questions Remain On Law Firm Conflict Waivers

    Richard Rosensweig

    In Sheppard Mullin v. J-M Manufacturing Co., the California Supreme Court ruled last month that a law firm's failure to disclose a known conflict with another current client did not categorically disentitle the firm from recovering fees. But the court didn’t provide hoped-for guidance on how to write an enforceable advance conflict waiver, says Richard Rosensweig of Goulston & Storrs PC.

  • Q&A

    A Chat With Faegre Client Development Chief Melanie Green

    Melanie Green

    In this monthly series, Amanda Brady of Major Lindsey & Africa interviews management from top law firms about the increasingly competitive business environment. Here we feature Melanie Green, chief client development officer at Faegre Baker Daniels LLP.

  • Equitable Mootness Is Alive And Well In Chapter 9

    Richard Cooper

    Last month's opinion in Bennett v. Jefferson County brings the Eleventh Circuit in line with other courts that have found that the equitable mootness doctrine should apply in Chapter 9. The decision may be particularly relevant in Puerto Rico's ongoing restructuring proceedings, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Q&A

    Back To School: Widener's Rod Smolla Talks Free Speech

    Rodney Smolla

    In this new series featuring law school luminaries, Widener University Delaware Law School dean Rodney Smolla discusses teaching philosophies, his interest in First Amendment law, and arguing before the U.S. Supreme Court in Virginia v. Black.

  • New Pass-Through Deduction Will Pass Over Many Lawyers

    Evan Morgan

    A few weeks ago, the IRS proposed regulations related to the Tax Cuts and Jobs Act's 20 percent deduction on qualified business income for pass-through entities. The guidance offers long-awaited clarity, but is mostly bad news for many law firms, says Evan Morgan of Kaufman Rossin PA.

  • How Reckless Judicial Impeachments Threaten Rule Of Law

    Jan van Zyl Smit

    Judicial impeachment fever seems to be spreading through the states, with West Virginia legislators recently voting to remove their state's entire Supreme Court, and lawmakers in Pennsylvania and North Carolina threatening the same. These actions are a serious threat to judicial independence, says Jan van Zyl Smit of the Bingham Centre for the Rule of Law.