Bankruptcy

  • May 17, 2017

    AAI Wants Docs Kept From Boeing In $1.2B Contract Case

    Bankrupt Alabama Aircraft Industries Inc. asked an Alabama federal judge on Wednesday to protect its privileged documents held by a former investor in a long-running dispute with Boeing over a $1.2 billion U.S. Air Force contract, despite a special master’s recommendation that the documents be turned over.

  • May 17, 2017

    Oil Driller Sucking Fund Into 'Death Spiral,' Judge Told

    A fund that lent money to oil and gas driller Camber Energy Inc. only to be sued for converting its debt into Camber stock asked a Texas federal judge on Tuesday to give the fund a way to sell the shares before Camber’s “death spiral” whittles the stock price even further.

  • May 17, 2017

    Offshore Oil Marine Services Firm Plans $430M Debt Swap

    A company that provides marine services to offshore oil and gas drillers throughout the world hit Chapter 11 on Wednesday in Delaware with a plan in hand to swap $430 million of note debt for a large portion of the equity of a reorganized company.

  • May 16, 2017

    Travelers Must Cover Charney Suit, Standard General Says

    Hedge fund Standard General LP urged a New York federal court on Monday to declare that Travelers Indemnity Co. must pay its defense costs for a defamation lawsuit by American Apparel’s founder that was recently defeated in a California appeals court.

  • May 16, 2017

    BankUnited Plan Admin Can't Revive $15M Coverage Bid

    U.S. Specialty Insurance Co. doesn't have to cover two former BankUnited Financial Corp. executives' $15 million settlement of claims brought by the bank's bankruptcy plan administrator over alleged fraudulent transfers, the Eleventh Circuit affirmed on Tuesday.

  • May 16, 2017

    SunEdison Creditors Committee In Position To Vote For Plan

    Groups of SunEdison Inc. creditors said Tuesday they have overcome an impasse on issues that threatened to derail the bankrupt green energy giant’s path out of Chapter 11, telling a New York bankruptcy judge that mediation talks have successfully led to settlement terms.

  • May 16, 2017

    Katy Industries Gets Interim OK For $7.5M DIP Loan

    A Delaware bankruptcy judge on Tuesday gave Katy Industries Inc. the interim OK for its $7.5 million post-petition loan being extended by the cleaning and storage products manufacturer's stalking horse bidder, a joint venture of Victory Park Capital Advisors and Highview Capital LLC.

  • May 16, 2017

    Jevic Ruling Scuttles Constellation's Ch. 11 Dismissal

    A Chapter 11 dismissal sank Tuesday on the rocks of a recent U.S. Supreme Court decision that narrowed case exit settlement options in bankruptcies, as a Delaware federal judge ruled that current law obliged the decision despite its likely cost to creditors.

  • May 16, 2017

    Ex Le-Nature's CEO Can't Escape Plea Deal, 3rd Circ. Says

    The Third Circuit on Tuesday rebuffed another attempt by the former CEO of now-defunct Le-Nature's Inc. to be released from a 2011 plea deal he struck with the government that resulted in a 20-year prison sentence for his role in a $668 million accounting fraud.

  • May 16, 2017

    Delivery Agent Creditors' Discovery Bid Must Wait, Judge Says

    A motion by the unsecured creditors of bankrupt retail club Delivery Agent Inc. to seek discovery from the company's directors will have to wait a week after a Delaware bankruptcy judge on Tuesday deferred a decision on the request until a motion to convert the case to Chapter 7 has been decided.

  • May 16, 2017

    Tony Roma's Objects To Rupari Ch. 11 Licensing Assignment

    The parent company of the Tony Roma’s Steakhouse chain objected Tuesday to the inclusion of a product licensing agreement between the chain and bankrupt meat distributor Rupari Food Services Inc. in the debtor’s list of contracts to be assumed and assigned in a Chapter 11 asset sale.

  • May 16, 2017

    Justices Stem Tide Of Suits Against Stale Debt Collectors

    In finding that an attempt to collect on obviously time-barred debt in bankruptcy is not grounds for punishment under consumer protection laws, the U.S. Supreme Court has cleared up confusion around filing proofs of claim in Chapter 13 that have plagued the credit and collection industry, experts say.

  • May 16, 2017

    Netflix Fights Bankrupt Film Studio's Suit Over Streaming

    Netflix Inc. on Tuesday urged a California judge to toss a bankrupt film studio’s breach of contract suit alleging that Netflix attempted to stream the studio's films for free by circumventing theatrical releases necessary to determine licensing fees, arguing that a bankruptcy court had already litigated the dispute.

  • May 16, 2017

    Fashion Retailer Rue21 Files For Ch. 11 Protection

    Pennsylvania-based teen clothing retailer rue21 Inc. on Monday became the latest retail chain to file for Chapter 11, with the chain saying approximately a third of its stores are on the chopping block as it restructures.

  • May 15, 2017

    Virtus Gets Mixed Cert. Rulings In 2 Securities Suits

    A New York federal judge on Monday granted class certification in a securities class action against Virtus Investment Partners Inc. over alleged public misstatements, but simultaneously denied certification in another suit with similar allegations.

  • May 15, 2017

    Katy Industries Hits Ch. 11 In Delaware, Seeking Sale

    Cleaning and storage products manufacturer Katy Industries Inc. filed for Chapter 11 protection in Delaware on Sunday, listing roughly $100 million in debt and planning an auction with a joint venture of creditor Victory Park Capital Advisors and investor Highview Capital LLC putting in a stalking horse bid.

  • May 15, 2017

    Molycorp Judge Nixes Credit Bid Objection In Ch. 11 Sale

    Saying that ample time remains for arguments between bidding and a sale, a Delaware bankruptcy judge put off a private equity challenge Monday to rules for the offer of secured creditor claims in bidding for Molycorp Minerals’ California rare earth mine.

  • May 15, 2017

    FDIC Scores Partial Victory In $265M Tax Refund Row

    Defunct holding company FBOP Corp. will have to hand over some of a $265 million tax return to eight banks overseen by the Federal Deposit Insurance Corp., though the Illinois federal judge who ordered the forfeiture said he was yet unsure how much it should be.

  • May 15, 2017

    Cosi's Ch. 11 Reorganization Plan Is Now In Effect

    A reorganized Cosi Inc. on Monday filed notice in Massachusetts bankruptcy court, saying that Chief U.S. Bankruptcy Judge Melvin S. Hoffman has confirmed the fast casual restaurant chain’s amended Chapter 11 reorganization and that the plan is now in effect.

  • May 15, 2017

    Garlock Seeks Court's OK For Latest Ch. 11 Plan

    Defunct Garlock Sealing Technologies LLC again asked a North Carolina bankruptcy court on Sunday for confirmation of its Chapter 11 plan, saying it’s finally resolved all but one objection to the latest plan after a seven-year-long tug of war with various stakeholders.

Expert Analysis

  • Justice Deferred: What High Court Won't Review In Lakeridge

    Steven Wilamowsky

    The U.S. Supreme Court recently granted certiorari in Village at Lakeridge to consider the deferential standard of review for determining nonstatutory insider status in Chapter 11, but has left other important questions unaddressed, say Steven Wilamowsky and Aaron Krieger of Chapman and Cutler LLP.

  • Satire

    A Law Firm Ranking Model By 'Fake News & Distorted Reports'

    Alan B. Morrison

    Suffering from law firm ranking fatigue? Bewildered by the methodologies? If so, you're in good company. Alan Morrison, associate dean for public interest and public service law at George Washington University Law School, wonders just how far law firm ranking efforts may go.

  • Opinion

    The Hunger Games, Puerto Rico Edition

    Anthony T. Caso

    Puerto Rico’s “general obligation” bondholders are trying to kill off the competition for whatever scraps will be left over when, and if, creditors finally get paid. But their “Hunger Games”-like strategy is bound to fail, says Anthony Caso of Chapman University Fowler School of Law.

  • Fewer 2nd Chances For Failed Retailers

    Christa Hart

    For many retail chains filing for Chapter 11 protection, bankruptcy is often the end of the line rather than a fresh start. Retailers’ long-standing reliance on seasonal asset-based revolvers, trade credit and operating leases may be contributing to this outcome, say Christa Hart and Amir Agam of FTI Consulting Inc.

  • Top 10 Litigation Risks For Retailers In 2017

    Ann Schofield Baker

    With the 2017 retail season in full swing, what issues are keeping retailers up at night? Ann Schofield Baker of Perkins Coie LLP has distilled a list of top retail risks and trends this year, ranging from data breaches, cyber-ransom threats and toxic chemical compliance to the potential for litigation over subjects including shipping fees, discount pricing and website accessibility.

  • When Arbitration Clauses Collide With Bankruptcy Laws

    Laura M. Fontaine

    A bankruptcy trustee or a debtor in possession has several specific powers that frequently come into conflict with a nondebtor’s desire to invoke an arbitration clause. The Fifth Circuit’s recent decision in Janvey v. Alguire pushed back on a trend of expanding the nonsignatory related parties that can be swept into arbitration, says Laura Fontaine of Gruber Elrod Johansen Hail Shank LLP.

  • Crowdfunding For Legal Cases: 5 Trends Reshaping Justice

    Julia Salasky

    Most people have never had an opportunity to personally take part in a legal case that directly challenges laws or policies they don’t agree with. Now that crowdfunding is available for legal cases, people can engage directly with legal change in the community and be a check on the powerful, says Julia Salasky, CEO of CrowdJustice.

  • Opinion

    ABA Needs A New Model Legal Ethics Rule

    Kevin L. Shepherd

    Perhaps lost in the presidential post-election tumult was a report issued in late 2016 by an international body evaluating U.S. compliance with anti-money laundering and counter-terrorist financing standards. Considering repeated criticisms of the legal profession, the American Bar Association should seriously consider a new model legal ethics rule, says Kevin Shepherd of Venable LLP.

  • What Does Lateral Partner Success Look Like?

    Howard Flack

    In the final segment of his series on lateral recruitment, Howard Flack, a partner of Volta Talent Strategies LLC and former leader of the lateral partner recruiting team at Hogan Lovells, shares a number of factors law firms should consider when measuring lateral hire success.

  • Are Lateral Recruitment Opportunities Shaping Your Strategy?

    Howard Flack

    In the second installment of this series on lateral recruiting, Howard Flack of Volta Talent Strategies LLC challenges law firms to ask themselves whether business strategies are determining lateral hires — or vice versa.