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Bankruptcy

  • 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.

  • October 4, 2018

    Tire Distributor ATD Opens Del. Ch. 11 With $2.6B Debt

    ATD Corp., one of the nation's top distributors of replacement tires, filed for Chapter 11 protection in Delaware Thursday with plans to reduce the company’s roughly $2.6 billion in debt by about $1.1 billion in a debt-for-equity swap.

  • October 4, 2018

    Aruba Airline Passengers Seek Cert. In Exit Fee Suit

    Inselair Aruba NV passengers asked a Florida federal judge on Wednesday for class certification in their suit against the Dutch Caribbean airline for allegedly charging them last-minute illegal and mandatory exit fees before they boarded flights from Miami International Airport.

  • October 4, 2018

    Brookstone's $65M Sale Of Airport, Online Retail Biz OK'd

    Bankrupt gadget retailer Brookstone Holdings Corp. received court approval Thursday for a $65 million sale of its remaining retail business consisting of more than 30 airport locations and its website.

  • October 3, 2018

    ActiveCare Ch. 11 Sale OK'd With Liability Concerns Resolved

    A bankruptcy judge has signed off on the Chapter 11 sale of diabetes patient monitoring company ActiveCare Inc. to stalking horse bidder Telcare Inc. for $3.75 million after details related to potential cure claims were resolved.

  • October 3, 2018

    Coal Supply Agreement Won’t End In FirstEnergy Bankruptcy

    An Ohio bankruptcy judge on Tuesday turned down FirstEnergy Solutions Corp.'s request to end a decadeslong coal purchase deal with Murray Energy Corp. that the coal giant argued was inextricably tied to its contract to dispose of FirstEnergy's coal waste.

  • October 3, 2018

    Sedgwick Ch. 11 Sets Stage For Atty Payments Battle

    Sedgwick LLP's recent Chapter 11 petition signals a new turn in the story of the now-defunct firm, potentially setting up its former equity partnership for a long and contentious dispute over the return of payments doled out to attorneys in the firm's final year, or longer.

  • October 3, 2018

    Lehman Judge Nixes Bids To Transfer Lender Indemnity Suits

    Lehman Brothers Holdings Inc. can continue to pursue indemnity claims against about 100 mortgage loan sellers from around the country in New York bankruptcy court, a judge ruled on Tuesday, turning down dozens of requests to transfer venue and saying she is best equipped to hear the cases.

  • October 3, 2018

    M&G Gets $2M As Funds In Delaware Ch. 11 Run Out

    A Delaware bankruptcy judge on Wednesday authorized plastics maker M&G USA Corp.'s use of $2 million in debtor-in-possession funds to cover operations and administrative costs in its Chapter 11 as a temporary solution since financing has run out.

  • October 3, 2018

    Furniture Co. Hit With Doubled Jury Award In IP Row

    An Illinois federal judge on Tuesday doubled to $7 million a jury award to a high-end furniture and lighting company after finding that a Canadian competitor's “multiple misrepresentations” in an infringement suit merited increased damages.

Expert Analysis

  • Series

    Judging A Book: Fogel Reviews 'Good Judgment'

    Judge Jeremy Fogel

    In this time of partisan conflict over judicial selection, a new book by Canadian jurist Robert J. Sharpe —​ "Good Judgment" — represents a refreshing, deeply thoughtful departure from binary arguments about how and why judges make decisions, says U.S. District Judge Jeremy Fogel, director of the Federal Judicial Center.

  • 10 Ways To Prevent E-Discovery Woes

    Debbie Reynolds

    E-discovery is not easy, but employing these 10 strategies may help minimize future headaches, say Debbie Reynolds and Daryl Gardner of EimerStahl Discovery Solutions LLC.

  • 11th Circ. Changes Course On New Value Defense

    Paul Avron

    The Eleventh Circuit’s decision this month in Kaye v. Blue Bell Creameries confirms that the prior requirement that new value must remain unpaid is no longer the law in the circuit, wiping out a valuable tool for debtors, trustees and post-confirmation estate representatives for avoiding and recovering preferential transfers, says Paul Avron of Berger Singerman LLP.

  • 4 Key Components To New Firm Partnership Agreements

    Russell Shinsky

    A well-drafted partnership agreement protects a law firm's founders, establishes a process for new and outgoing partners, and sets forth guidelines for navigating conflict along the way. Startup firms can begin with something less complex, but there are important elements that every agreement should include, says Russell Shinsky of Anchin Block & Anchin LLP.

  • Opinion

    Open The Federal Courthouses

    David Oscar Markus

    Forget about cameras, reporters in the Manafort trial were not even permitted in the courtroom with their phones, tablets or computers. That meant no live reporting on Twitter and no emails to the newsrooms with updates. In a world focused on information and news as it happens, this is unacceptable, says trial attorney David Oscar Markus.

  • Del. Series LLC Changes Bring Clarity For Secured Lenders

    R. Jason Russell

    Delaware recently passed amendments to the Delaware Limited Liability Company Act that enable a new type of series of an LLC known as a “registered series.” The changes address historical uncertainty among secured lenders seeking to perfect a security interest, say R. Jason Russell and Sean Sullivan of Morris Nichols Arsht & Tunnell LLP.

  • Navigating Counsel Conflicts Of Interest In Bankruptcy

    Claire Wu

    A recent New York federal court ruling in the bankruptcy case of Relativity Media highlights the importance of disqualification of counsel disputes in bankruptcy matters. Attorneys must proceed with care when duties owed to both parties create a conflict of interest, says Claire Wu of SulmeyerKupetz PC.

  • 'High Availability' — A Key Term In Law Firm IT Strategy

    Jeff Norris

    While most law firm executives and partners may instinctively want to tune out terms like "high availability" and "disaster recovery" — concepts that IT managers usually worry about — there are five reasons you should lean in and wrestle with the vocabulary, say Jeff Norris of Managed Technology Services LLC and Greg Inge of information security consulting firm CQR.

  • The 'Post-Fact' Jury In The 'Fake News' Era

    Ross Laguzza

    The "fake news" phenomenon is ever more prominent in the political arena — but not in the jury box. At a trial, jurors don’t have to rely on the media or any other source to tell them the facts and issues, since they have a front-row seat to the action, says Ross Laguzza, a consultant at R&D Strategic Solutions LLC.

  • Series

    Judging A Book: Lipez Reviews 'Last Great Colonial Lawyer'

    Judge Kermit Lipez

    In his new book, "The Last Great Colonial Lawyer: The Life and Legacy of Jeremiah Gridley," Charles McKirdy argues that Gridley — someone I had never heard of — was the last great colonial lawyer, and that his cases illuminate his times. The author largely substantiates both claims, says First Circuit Judge Kermit Lipez.