Bankruptcy

  • May 8, 2018

    Paragon Trust $1.7B Clawback Suit Halted For Arbitration Bid

    Paragon Litigation Trust's $1.7 billion clawback suit against Noble Corp., the former parent of once-bankrupt oil explorer Paragon Offshore PLC, will have to wait for a decision on whether the trust’s claims are arbitrable after a Delaware bankruptcy judge stayed the case Tuesday pending argument on Noble’s arbitration motion.

  • May 8, 2018

    Weinstein Co. Ch. 11 Sale Gets Nod, Nets $260M In Cash

    The Weinstein Co., battered by a tidal wave of sexual assault and harassment allegations against its co-founder Harvey Weinstein, secured a Delaware bankruptcy judge’s approval Tuesday to sell most of its assets to an affiliate of private equity firm Lantern Capital for a diminished $260 million in cash.

  • May 8, 2018

    Applebee's Franchisee Moves 175 Locations Into Chapter 11

    One of the largest franchisees of casual dining chain Applebee's Neighborhood Grill and Bar hit Chapter 11 on Tuesday, with its 175 restaurant locations listing debts of at least $100 million with plans to use existing lenders' cash collateral and a potential post-petition loan to fund its case.

  • May 7, 2018

    Patriarch Calls $10M TransCare Clawback Suit 'Nonsensical'

    Private equity fund Patriarch Partners asked a New York bankruptcy court on Friday to dismiss claims in a $10 million clawback suit over the private equity firm’s alleged role in bankrupting ambulance company TransCare Corp., calling the suit “nonsensical.”

  • May 7, 2018

    Puerto Rico Finance Monitor Can't Duck Journos' Bid For Docs

    A Puerto Rico district court has ruled that the island’s federally appointed oversight board must turn over internal documents to journalists, a move that severely undermines the board’s claims of broad constitutional immunity and could open the door to future lawsuits against it.

  • May 7, 2018

    EV Energy Investors Seek Appointment Of Ch. 11 Examiner

    A pair of equityholders of bankrupt oil and gas producer EV Energy Partners LP asked a Delaware bankruptcy judge Monday to appoint an examiner in the case to look into potential prepetition transactions that allegedly stripped the debtor of value.

  • May 7, 2018

    Nine West Creditors Warn Of Fight Over $50M DIP Term Loan

    The unsecured creditors of Nine West Holdings Inc. could make it more difficult for the bankrupt women’s shoe and apparel company to gain access to a proposed $50 million debtor-in-possession term loan, as an attorney for the creditors complained Monday that it seemed “exorbitantly expensive” and restrictive.

  • May 7, 2018

    Bertucci's Appeases Creditors With Extended Sale Timeline

    Bankrupt Italian eatery chain Bertucci’s resolved objections Monday in Delaware from the official committee of unsecured creditors in its Chapter 11 case by extending the deadlines for its asset sale procedures and increasing the committee’s budget.

  • May 7, 2018

    Weinstein Co. Says Creditors Trying To 'Sabotage' $310M Sale

    The Weinstein Co. and its unsecured creditors stepped up their feud Monday over an unofficial after-the-deadline bid for the bankrupt business, an offer that TWC said appeared to be a "coordinated effort to sabotage" a $310 million cash deal with Lantern Entertainment LLC.

  • May 7, 2018

    Lehman Deal's Terms Not So 'Plain Vanilla,' 2nd Circ. Hears

    A Korean bank that refused to honor an unsigned settlement after a judge ruled in its favor in a dispute with bankrupt lender Lehman Brothers Holdings Inc. asked the Second Circuit on Monday to reverse a judge’s finding that the deal was binding, saying the “plain vanilla” terms that weren’t addressed in mediation were actually complex.

  • May 4, 2018

    Law360 Reveals Titans Of The Plaintiffs Bar

    They’ve gone up against big-name companies while advocating for plaintiffs ranging from grieving family members to shareholders and consumers in some of the biggest and most well-known cases of the past year.

  • May 4, 2018

    Jumio Investor Claims Leadership Bungling In Ch. 11 Suit

    Six former insiders and counsel of identity-verification startup Jumio, including a WilmerHale partner, were sued in Delaware bankruptcy court on Friday by an investor who said they ruined the company by causing it to forgo opportunities to be recapitalized before it filed for bankruptcy in March 2016.

  • May 4, 2018

    Pa. Atty Blabbed About Confidential Depo, KeyBank Says

    KeyBank NA urged a Pennsylvania federal judge on Friday to sanction a lawyer with McCullough Eisenberg LLC, alleging that the attorney emailed confidential information from a deposition to more than a hundred bankruptcy attorneys operating in the state seeking input on a case.

  • May 4, 2018

    Drivers Fight To Keep Suit Over Fiat Chrysler Recalls Alive

    Two drivers who accused Fiat Chrysler of implementing a new set of defects when it recalled faulty cars said Thursday that a New York bankruptcy judge's decision to shift the suit to California didn't lay the groundwork for dismissal, and the case should be permitted to move forward.

  • May 4, 2018

    New GM Must Face Some Groundwater Claims, Judge Says

    Michiganders with property-contamination claims against GM must submit to the provisions of GM's 2009 bankruptcy sale order, a New York bankruptcy judge ruled Friday — but that order does allow them to press claims over contaminants that were purportedly dumped presale but migrated onto their land post-sale.

  • May 4, 2018

    NRC Nixes Duke Energy License For Failed $24.7B Plant

    The U.S. Nuclear Regulatory Commission has rescinded construction and operating licenses held by Duke Energy Florida LLC related to a $24.7 billion nuclear power plant, putting a lid on the company’s now-failed venture with bankrupt Westinghouse Electric Co.

  • May 4, 2018

    Mammoet, NY Wheel Developer Reach Deal On Ch. 11, Project

    Bankrupt Mammoet-Starneth LLC, the entity hired to design and build the world's largest observation wheel in New York City, announced a resolution Friday allowing the developer to transition to a new contractor and get financing to finish the project while allowing the Chapter 11 case to continue in Delaware.

  • May 4, 2018

    GE Says Subprime Mortgage Unit May Face Ch. 11

    In a U.S. Securities Exchange Commission filing this week, General Electric Co. said its subprime mortgage unit may be heading into Chapter 11 if it is found liable in pending legal action over defective loans.

  • May 3, 2018

    Weinstein Accusers See 11th-Hour Deposition As Scare Tactic

    Accusers bringing sexual abuse allegations against Harvey Weinstein say a Wednesday-night notice by the Weinstein Co. in Delaware bankruptcy court for the handover of creditor communications regarding the Chapter 11 sale of the studio is meant to silence their support for a late bid that creates a fund for abuse victims.

  • May 3, 2018

    CFPB Beats Back Law Firms’ Bid To Chuck Illegal Fee Fight

    Three law firms and two attorneys can’t shake a Consumer Financial Protection Bureau suit claiming they charged millions of dollars in illegal up-front fees for debt relief services, a California federal judge said Thursday, finding many of those fees were collected within the three-year statute of limitations for enforcement actions.

Expert Analysis

  • The Impact Of Tax Reform On Film, TV And Print Media: Part 1

    Michele Alexander

    While the media has been reporting on tax reform, tax reform will impact the media industry itself. Reform's effects are numerous, from a reduction in tax rates and new deductions to the loss of important deductions and new international regimes that have kept tax experts waiting in anticipation of further guidance, say attorneys Michele Alexander and Ryan Davis of Bracewell LLP.

  • A Cautionary Tale For Sublicensees

    John Loughnane

    Sirius Radio has been defending itself against a patent infringement suit that deserves the attention of any party that has ever sublicensed rights. The case is a reminder that a sublicensee whose licensor commences bankruptcy should pay close attention to the proceedings and take appropriate action, says John Loughnane of Nutter McClennen & Fish LLP.

  • A Notable Footnote In High Court Merit Management Decision

    Elliot Moskowitz

    The U.S. Supreme Court’s ruling in Merit Management v. FTI Consulting has been characterized as a narrowing of the Section 546(e) safe harbor, given the court’s holding that a transfer is not protected from avoidance merely because the funds passed through a “financial institution.” However, a footnote in the decision could mean that the safe harbor remains applicable to additional participants in securities transactions, say Elliot Moskowitz and Tina Hwa Joe of Davis Polk & Wardwell LLP.

  • Opinion

    BigLaw Doesn't Have A Diversity Problem

    Marlen Whitley

    Although the lack of racial and gender diversity among the ranks of the majority of both midsized and top law firms is a major issue, it’s past time to shed light on the real problem — inclusion, or lack thereof, says Marlen Whitley of Reed Smith LLP.

  • Opinion

    Roman J. Israel, Esquire, Meet Donald J. Trump, POTUS

    Kevin Curnin

    Despite the Trump administration's desire to shut down the Legal Services Corp., thankfully the budget that Congress passed and the president signed into law last week has restored $410 million of funding to the legal aid organization. An unlikely brief for preserving LSC may be found in the quirky Denzel Washington film "Roman J. Israel, Esq.," says Kevin Curnin, immediate past president of the Association of Pro Bono Counsel.

  • Opinion

    We Need A Cybersecurity Framework For Law Firms

    Shaun Jamison

    In order to enable lawyers to best meet cybersecurity challenges, state bars should pass rules that adopt a cybersecurity framework to be developed by a national committee, says Shaun Jamison, associate dean of faculty and professor at Purdue University's Concord Law School.

  • Equity Partnership Isn’t What It Used To Be

    Jeff Liebster

    To many young attorneys, becoming an equity partner shows a firm's long-term commitment, meaning job security and a voice in important firm matters. However, the industry has changed and nowadays it may not be better to enter a new firm as an equity partner, says Jeffrey Liebster of Major Lindsey & Africa.

  • Series

    Judging A Book: Hardiman Reviews 'Without Precedent'

    Judge Thomas Hardiman

    In his new book, "Without Precedent: Chief Justice John Marshall and His Times," professor Joel Richard Paul ably explains more than a dozen of Marshall’s most significant opinions, which comes as no surprise​. ​What is a surprise — a pleasant one — is the book's readability, says Judge Thomas Hardiman of the Third Circuit.

  • Top Tax Changes For Law Firms: What Lawyers Need To Know

    Evan Morgan

    For law firms structured as corporations, a lower maximum corporate tax rate and repeal of the corporate alternative minimum tax are good news. But many law firms are pass-through entities, so deduction limitations mean they'll see less benefit from the new tax law, says Evan Morgan of CPA and advisory firm Kaufman Rossin PA.

  • Bankruptcy Notice Lessons From Lyondell

    Robert Millner

    The Eighth Circuit’s decision in Dahlin v. Lyondell Chemical Co., addressing what a debtor needs to include in a claim bar date notice to unknown creditors, makes clear that due process in the notice context is rooted in reasonableness, say Robert Millner and Geoffrey Miller of Dentons.