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Bankruptcy

  • 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.

  • August 6, 2018

    Del. Ch. 11 Court OKs Hearing On Weinstein Contract Rules

    Over objections from at least 15 entertainment industry figures, a Delaware bankruptcy judge on Monday scheduled a hearing on streamlined procedures for rejecting or handing off eligible contracts from The Weinstein Co. to buyer Lantern Entertainment LLC.

  • August 6, 2018

    Oil Co. Investors Should Get Cert. In Stock Suit, Judge Says

    A New York federal judge recommended class certification Monday for investors accusing associates of now-defunct Miller Energy of overstating the value of oil and gas assets in filings with the U.S. Securities and Exchange Commission.

  • August 6, 2018

    Aerogroup Creditor Agrees To Halt Foreclosure Action

    An attorney for bankrupt shoemaker Aerogroup International Inc. told a Delaware judge Monday that a post-petition lender had agreed to drop its efforts to foreclose on estate property to allow potential litigation against a company that had backed out of a deal to buy Aerogroup’s assets earlier this year.

  • August 6, 2018

    Retailer J&M Sales Opens Del. Ch. 11 With $110M Debt

    Discount store holding company J&M Sales Inc. on Monday filed for Chapter 11 in Delaware bankruptcy court, saying it will close 74 stores nationwide as part of its attempt to get out from under $110 million in debt.

  • August 6, 2018

    Janus Ruling Finds Way Into Ex-Union Boss' Bribery Trial

    The U.S. Supreme Court's Janus ruling crimping union fee collection bled into the Manhattan bribery retrial of former labor boss Norman Seabrook Monday when a key witness suggested to the jury that union investment losses tied to Seabrook's alleged $20 million corruption scheme could weaken it against enemies of organized labor.

  • August 6, 2018

    Producer Drops Film Rights Suit Against Weinstein, Disney

    A film producer has settled his claims with Walt Disney and The Weinstein Co. in a dispute over the rights to make a spinoff and sequel to the 1984 cult Hollywood horror film “Children of the Corn,” according to court documents filed in California federal court Monday.

  • August 6, 2018

    ActiveCare Delays Ch. 11 Auction Plan For Committee Talks

    Diabetes patient monitoring company ActiveCare Inc. will push back deadlines in its Chapter 11 sale process after telling a Delaware bankruptcy judge Monday that it would take an extra week to discuss its auction plan with a recently appointed committee of unsecured creditors.

  • August 6, 2018

    FirstEnergy Unit Defends Bonuses In Retention Plan

    FirstEnergy Corp.'s bankrupt nuclear generation unit has urged a court to ignore objections a collection of unions filed complaining that the company is seeking to pay nearly all but its unionized workers an aggregate of millions of dollars in bonuses for staying on the job as operations wind down.

  • August 6, 2018

    Ex-Employees' SunEdison Stock-Drop Suit Nixed Again

    A New York federal judge on Monday again nixed a suit by former employees of SunEdison Inc. claiming executives of the now-bankrupt renewable energy giant continued to sell stock in spite of its imminent collapse, saying the employees hadn't adequately alleged the executives breached their fiduciary duty.

  • August 6, 2018

    Deals Rumor Mill: Mattress Firm, SoftBank, Sprint

    Mattress Firm is reportedly considering bankruptcy, SoftBank is mulling a $90 billion value for the domestic wireless unit it plans on listing, and T-Mobile’s $59 billion proposed merger with Sprint is in the early stages of antitrust review.

  • August 6, 2018

    Real Mex Chain Again Files Ch. 11 With Planned $47M Sale

    The owner of Real Mex Restaurants filed for Chapter 11 protection in Delaware on Sunday citing increased wage and commodity costs and extensive competition as it aims to sell the chain’s remaining restaurants to private equity firm Z Capital Group for $47 million.

  • August 6, 2018

    8th Circ. Affirms DOL Win In Suit Against Ex-Blanket Co. CEO

    The Eighth Circuit has again backed a U.S. Department of Labor's bankruptcy court win in its suit against the former CEO of a blanket company, which claimed some funds taken out of worker paychecks meant for health plan premiums didn't actually get sent to the insurer.

  • August 3, 2018

    Gawker Bankruptcy Can't Shield Writer From Defamation Suit

    A Deadspin freelancer who was sued for defamation by a sports gambling expert is not protected by the Chapter 11 plan of Deadspin's former parent company, Gawker Media, a New York bankruptcy judge ruled Friday, because the gambling expert did not receive a benefit from the bankruptcy.

  • August 3, 2018

    Lender Says Applebee's Franchisee Ch. 11 Bonuses Excessive

    The largest secured lender of bankrupt Applebee’s franchisee RMH Franchise Holdings Inc. objected Friday to the debtor’s proposed employee incentive and retention plans, saying they are excessive and duplicative of existing payment programs.

  • August 3, 2018

    Madoff Investor's $3.4M Deal Not Covered, 2nd Circ. Told

    Two Chubb Ltd. insurers on Thursday urged the Second Circuit to affirm that they don’t have to cover a nearly $3.4 million settlement that a victim of Bernard L. Madoff’s Ponzi scheme paid to resolve a clawback action brought by the Madoff bankruptcy trustee, saying a lower court properly held that the action didn’t trigger their policies’ personal injury coverage.

  • August 3, 2018

    GM, Drivers Look To GenOn In Ch. 11 Ignition Switch Deal

    General Motors LLC and a group of vehicle owners sparred this week over what precedent GenOn Energy Inc.'s bankruptcy sets for GM's dispute over whether a class needs to be certified before a Chapter 11 settlement over legacy ignition switch lawsuits can be approved.

  • August 3, 2018

    Oaktree Slams Claire's Ch. 11 Moves, Challenges Control

    Private equity firm Oaktree Capital Management challenged Claire's Inc.'s exclusive control of its $2.1 billion Chapter 11 Friday, arguing that the jewelry retailer has backed out of an assurance that it will seriously entertain a wider range of bids for the company.

  • August 3, 2018

    Brookstone To Begin Closing Sales At All 101 Mall Locations

    Attorneys for Brookstone told a Delaware bankruptcy judge Friday that the consumer gadget retailer will begin closing sales at all 101 of its mall stores and its lone discount outlet center beginning immediately as it pursues a going concern sale for its remaining retail and e-commerce assets.

Expert Analysis

  • 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.

  • Myths And Facts About Using TAR Across Borders

    John Tredennick

    Many legal teams involved in cross-border matters still hesitate to use technology assisted review, questioning its ability to handle non-English document collections. However, with the proper expertise, modern TAR can be used with any language, including challenging Asian languages, say John Tredennick and David Sannar of Catalyst Repository Systems.

  • The Path To Restitution After Lagos

    Shannon Murphy

    While the U.S. Supreme Court's decision in Lagos eliminated the traditional way that many corporate victims recouped investigation costs, there still may be ways for at least a subset of those costs to be recovered, say Shannon Murphy and Steven Grimes of Winston & Strawn LLP.

  • Roundup

    From Lawmaker To Lawyer

    From Lawmaker To Lawyer

    Earlier this year, Rep. Trey Gowdy, R-S.C., made headlines with his decision to leave Congress and return to law. ​​In this series, former members of Congress who made that move discuss how their experience on the Hill influenced their law practice.

  • Opinion

    A Trump Supreme Court Nominee Can Be Defeated

    Nan Aron

    The Senate Republican leadership and the Trump administration are racing to fill Justice Anthony Kennedy’s spot on the U.S. Supreme Court. Does opposition to their plans have any chance of success? My answer is yes, because the stakes are so high, people are so engaged, and the records of those short-listed are so deeply troubling, says Nan Aron, president of Alliance for Justice.