The trustee in the Chapter 7 bankruptcy of a major Chicago cab company Thursday urged an Illinois federal judge to reject a motion for sanctions against him by the company’s owners, calling it a ploy to shut down his fraudulent transfer suit.
Fowler White Burnett PA urged a Florida bankruptcy judge Wednesday not to hold it or convicted billionaire sex offender Jeffrey Epstein in contempt for allegedly retaining copies of confidential documents, saying the cited court order did not say what to do with a disc that is at issue.
Bankrupt radio giant Cumulus Media Inc. began a trial Thursday to confirm a Chapter 11 restructuring plan that would reduce its bloated debt by just over $1 billion, squaring off against junior creditors who complain they are being shortchanged by a deal that undervalues the company's total worth.
NextEra Inc. objected late Wednesday in Delaware to a motion to dismiss its $60 million administrative expense claim against the estate of reorganized debtor Energy Future Holdings Inc., saying it is entitled to payment of the costs it incurred while pursuing an acquisition of the debtor’s assets last year.
A Texas appeals court on Thursday refused to overturn a trial court's order sending to arbitration a claim that law firm Johnson DeLuca Kurisky & Gould PC botched its representation of a Houston entrepreneur in connection with a bankrupt hospital.
Level Solar Inc. narrowly fended off a bid by its former CEO to liquidate the case, after a New York bankruptcy judge admonished both parties for “mudslinging nonsense” at a contentious hearing Thursday while saying she would give the debtor a few more weeks to get its act together.
The former chief financial officer of the business popularized by the "Soup Nazi" character in the sitcom "Seinfeld" received a nine-month sentence on Thursday in New York federal court for failing to pay federal income, Medicare and Social Security taxes.
A group of construction worker unions representing employees of Navillus Tile Inc. argued Wednesday that the bankrupt New York-based contractor must prioritize some of their wage claims, saying they can be easily substantiated with documentation.
Bankrupt obesity drug maker Orexigen Therapeutics Inc. continued negotiations with noteholders until moments before a hearing Wednesday in Delaware, where it received final court approval on its $70 million post-petition financing package.
Former Dewey & LeBoeuf chief operating officer Dennis D’Alessandro on Wednesday entered into an agreed judgement to end claims that he helped mislead Aviva Life and Annuity Co.about the firm’s finances when Aviva bought $35 million in secured notes in 2010.
The Sixth Circuit on Wednesday tore into an Ohio couple’s attempt to appeal a jury’s 2017 verdict finding them liable for nearly $3.3 million in accounts and fraudulent transfers from a bankrupt credit union, calling their arguments, “in some cases, nonsensical.”
Envelope maker Cenveo Inc. Tuesday told a New York bankruptcy court that creditors’ concerns about the company hiring a former vice president to renegotiate its leases is misplaced, saying he has the necessary experience and will be less expensive than a national firm.
Lathrop Gage LLP has added an insurance recovery and counseling partner from Latham & Watkins LLP to its Los Angeles office, the firm announced Tuesday.
Bon-Ton Stores Inc.’s best hope for a going-concern Chapter 11 sale instead of liquidation went down in flames Wednesday, when a Delaware bankruptcy judge bluntly rejected its proposal to pay up to $500,000 to cover expenses for an unfinished post-deadline offer.
A nine-year-old investor lawsuit against two former top executives at defunct telecommunications firm Nortel Networks Corp. was dismissed by a New York federal judge on Wednesday, with the court ruling that there was no suggestion of misdirection or knowledge of wrongdoing by company officials.
Holders of Puerto Rico’s general obligation bond debt waged a court fight Tuesday over the territory’s sales tax revenues, telling a New York federal judge that the island’s constitution overrides competing bondholder claims to more than $17 billion in pledged sales tax collections.
A group of noteholders objected Monday in Delaware bankruptcy court to Orexigen Therapeutics Inc.’s $70.35 million debtor-in-possession loan, saying the financing will strip value from unsecured creditors by requiring the obesity treatment maker to sell its assets too quickly.
The collateral manager of bankrupt distressed-company investment vehicles the Zohar Funds lost a bid Tuesday in Delaware seeking the production of a broad range of documents related to litigation in other fora as it prepares to litigate a motion to dismiss the Chapter 11 cases of the funds.
Toy retailer Toys R’ Us Monday asked a Virginia bankruptcy court for the go-ahead to secure an additional $80 million in debtor-in-place financing it says it will need to keep its remaining overseas operations afloat.
A Pennsylvania federal judge granted a win to an airplane parts manufacturer in a trademark dispute with a rival over the use of a common part-labeling system, ruling that the system was not generic and that a valid trademark for it existed.
Like medical professionals, lawyers often resist policies to reduce errors due to the culture of perfectionism that permeates the industry. Autonomy is key to the legal professional's prestige and the outward demonstration of competence is key to maintaining autonomy, says Peter Norman of Winnieware LLC.
The U.S. Supreme Court last week held in Village at Lakeridge that the appropriate standard for determining nonstatutory insider status in bankruptcy is the clearly erroneous standard that was applied by the Ninth Circuit. But the concurring opinions, which address an issue that was not before the court, appear to be more significant, say Steven Wilamowsky and Aaron Krieger of Chapman and Cutler LLP.
It is undisputed that in his first year in office President Trump was able to confirm a significant number of judges to the federal bench. How it happened — and whether it's a good thing — are debated here by Sen. Chuck Grassley, R-Iowa, and Sen. Dianne Feinstein, D-Calif.
To its detractors, the so-called Brunner test, which is used to establish the dischargeability of student loan debts, stands out like a sore thumb. However, in an unexpected move, the U.S. Department of Education recently published a memo calling for comments that hinted it might be considering eliminating or modifying this standard, say attorneys with Troutman Sanders LLP.
When crafting a ground lease or any other form of triple net lease, special attention should be paid to the tensions that arise as a result of both tenant and landlord seeking to finance their respective positions, says Tzvi Rokeach of Kramer Levin Naftalis & Frankel LLP.
Increasingly, when courts impose a “legal hold” they require legal supervision of the preservation process, meaning lawyers must rely heavily on information technology professionals to execute the mechanics. John Tredennick of Catalyst Repository Systems and Alon Israely of TotalDiscovery offer insights on how legal and IT can work together to make the process more efficient and fulfill the company’s legal obligations.
Before the U.S. Supreme Court's decision in Merit Management v. FTI Consulting last week, almost any corporate debtor could file in New York or Delaware and, in structuring a securities buyout, plan to close in escrow through a financial institution and be certain that the buyout was unavoidable. No more, says Charles Tabb of Foley & Lardner LLP.
Foreign representatives have long used Chapter 15 discovery to investigate whether a foreign debtor has assets in the U.S. But two recent cases in New York involving Russian debtors demonstrate the value of Chapter 15 for uncovering assets that were fraudulently transferred, say Rick Antonoff and Evan Zucker of Blank Rome LLP.
Multiple courts have held that discoverable material from negotiations with a litigation funder, when executed properly, can be attorney work product and immune from disclosure in the later litigation. The recent Acceleration Bay decision is indicative of what happens when difficult facts conflict with best practices, says Eric Robinson of Stevens & Lee PC.
Now that crude oil prices appear to have stabilized, previously restructured oil and gas companies are once again looking to increase production and expand their asset bases. Bankruptcy created a competitive advantage for many reorganized entities, while companies that did not file are still in damage control, say attorneys with Jones Day.