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Bankruptcy

  • 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.

  • August 3, 2018

    Think Finance Can't Dodge CFPB Suit, Judge Says

    A Montana federal judge on Friday rejected Think Finance LLC's bid to end a Consumer Financial Protection Bureau suit accusing the financial technology company of deceiving borrowers and using sham tribal lenders to collect money it wasn't owed, saying the CFPB’s structure is legal and tribal leaders don’t have to be joined to the suit.

  • August 3, 2018

    Weinstein Says Rape Grand Jury Didn't See Exculpatory Info

    Disgraced movie mogul Harvey Weinstein asked a Manhattan state judge Friday to dismiss criminal charges accusing him of raping three women, asserting that Manhattan District Attorney Cyrus Vance kept exculpatory emails away from the grand jury that indicted him.

  • August 3, 2018

    Rising Star: Davis Polk's Lara Samet Buchwald

    With a keen skill for litigating, Lara Samet Buchwald has quickly become a valuable member of Davis Polk & Wardwell LLP's team of restructuring professionals and helped large clients battle contentious issues and see their way to successful case resolutions, earning her a spot as one of five bankruptcy practitioners under age 40 honored by Law360 as Rising Stars.

  • August 2, 2018

    Platinum Demise Front And Center At Ex-Union Boss' Retrial

    Federal prosecutors asked a Manhattan jury Thursday to tie former labor boss Norman Seabrook's alleged corruption to $19 million of investment losses his union later sustained when Platinum Partners, the hedge fund Seabrook allegedly favored in exchange for a $60,000 bribe in 2014, went bankrupt.

  • August 2, 2018

    Netflix Waves White Flag In Relativity Ch. 11 Contract Fight

    Netflix has abandoned all opposition to continuing its distribution deal with Relativity Media LLC and dropped claims for millions of dollars in payments from the bankrupt studio, deciding Thursday to settle the case after losing a bid to collect $9 million for a breach of its exclusive streaming agreement.

  • August 2, 2018

    Ampal Sees Its Stake In $1B Egypt Gas Award Preserved

    A New York judge on Wednesday looked to preserve the value of bankrupt Ampal-American Israel Corp.’s stake in a more than $1 billion arbitral award stemming from a terminated natural gas deal with Egypt, telling the company's controlling shareholder he must notify the company's bankruptcy trustee before taking certain actions.

  • August 2, 2018

    Weinstein Ch. 11 Emails OK’d For Rape Charges Defense

    A Delaware bankruptcy judge consented Thursday to the use of 40 redacted victim emails from The Weinstein Co.’s Chapter 11 files in a reported plan to seek dismissal of rape and sexual predator charges against Harvey Weinstein in a New York proceeding on Friday.

  • August 2, 2018

    Retailer Brookstone Opens Ch. 11 In Del. With Sale Plans

    Specialty retailer Brookstone again filed for Chapter 11 protection in Delaware on Thursday with plans to close 102 mall stores and sell its airport locations, wholesale and e-commerce operations, citing continued lagging sales just four years after its prior bankruptcy sale.

  • August 2, 2018

    KPMG Can't Escape Investors' Suit Over Miller Energy Audit

    A Tennessee federal judge on Thursday kept alive the bulk of a proposed class action from investors accusing KPMG of helping the now-defunct Miller Energy Resources Inc. falsify financials about oil and gas assets, saying there is adequate evidence that the alleged scheme was known to KPMG and caused share prices to fall.

  • August 2, 2018

    Del. Court Tosses NextEra's $60M Admin. Claim In EFH Ch. 11

    NextEra Inc. can't recover $60 million in costs it incurred while seeking regulatory approval for its failed $19 billion acquisition of bankrupt Energy Future Holdings Inc., a Delaware bankruptcy court ruled on Wednesday, finding that NextEra's administrative claim was clearly barred by the terms of that deal.

Expert Analysis

  • 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.

  • Limiting Law Firms' Professional Liability Risks: Part 3

    Stuart Pattison

    As clients increasingly look to limit their own liability exposure, they can reasonably expect that their retained counsel should do the same. In this context, a carefully crafted, thoughtfully presented engagement letter can help a law firm strike a successful balance between protecting itself and preserving a client relationship, say Stuart Pattison and John Muller of Sompo International Holdings Ltd.

  • New Stats On Millennial Attorney Disciplinary Actions

    Jean Edwards

    In this analysis of disciplinary action trends in the legal industry, Edwards Neils LLC managing member Jean Edwards examines data provided by bar organizations for 17 states and the District of Columbia.

  • In A Health Provider Restructuring, Beware The Master Lease

    Steven Horowitz

    A health care operator in financial distress may consider a number of nonbankruptcy options to streamline its operations, dispose of underperforming assets and improve its position. However, an operator with significant assets in a master lease may find that the lease imposes a variety of restrictions, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Limiting Law Firms' Professional Liability Risks: Part 2

    Stuart Pattison

    With law firms increasingly exposed to professional liability risks associated with their corporate client relationships, firms must craft well-structured client engagement letters to help protect against malpractice claims. Two key elements of an engagement letter are how it defines the scope of engagement and how it handles conflicts of interest, say Stuart Pattison and John Muller of Sompo International Holdings Ltd.

  • For Creditors, Written Representation Is The Best Evidence

    Rudolph Di Massa Jr.

    The U.S. Supreme Court’s opinion in Lamar Archer & Cofrin LLP v. Appling should encourage creditors to rely on written, rather than oral, statements they obtain from borrowers as to both their assets and their overall financial health or status, say Rudolph Di Massa Jr. and Keri Wintle of Duane Morris LLP.

  • Series

    From Lawmaker To Lawyer: Prioritizing Is Always Key

    Joe Lieberman

    Today, members of Congress often seem able to blame colleagues of the other party for not getting anything done for their constituents. In law practice, you can’t really blame a bad result for your clients on the lawyers on the other side, says former Sen. Joe Lieberman, D-Conn., of Kasowitz Benson Torres LLP.

  • Limiting Law Firms' Professional Liability Risks: Part 1

    Stuart Pattison

    Corporate law departments are increasingly demanding more concessions from outside legal counsel, and presenting engagement letters that open the door to greater professional and cyber liability exposure for law firms — often beyond the scope of their insurance coverage. Firms must add their own language to engagement letters to limit liability, say Stuart Pattison and John Muller of Sompo International Holdings Ltd.

  • Series

    From Lawmaker To Lawyer: How Congress Affected My Career

    Yvonne B. Burke

    Being a former member of Congress put me in an advantageous position when I approached law firms in the late '70s, at a time when there were few female lawyers, and even fewer African-American lawyers, in major law firms, says former Rep. Yvonne B. Burke, D-Calif., a director of Amtrak.