Bankruptcy

  • January 5, 2018

    National Events DIP Lender Wasn't Wise To Ponzi: Examiner

    The court-appointed examiner in the Chapter 11 case of alleged Ponzi scheme vehicle National Events Holdings LLC has cleared one of the defunct ticket reseller’s main creditors and debtor-in-possession lender of any wrongdoing in a report filed with the New York bankruptcy court.

  • January 5, 2018

    SEC Slams Milbank, Woodbridge Ch. 11 Note Group Conflicts

    Alleged behind-the-scenes maneuvering by noteholders with ties to bankrupt Woodbridge Group — accused in a $1 billion securities fraud case — is “threatening the integrity of the bankruptcy process,” Securities and Exchange Commission attorneys said in a Delaware court filing late Thursday.

  • January 5, 2018

    Renco, Noteholders Object To $88M In MagCorp Atty Fees

    Beus Gilbert PLLC, the law firm that won a $213 million judgment from billionaire industrialist Ira Rennert and his Renco Group Inc. for allegedly looting a bankrupt subsidiary, faced a pair of challenges Thursday to its application for $88 million in fees.

  • January 5, 2018

    NY Wheel Owner Says Builder Filed Ch. 11 Case In Bad Faith

    The owner of what was intended to be the Western hemisphere’s largest observation wheel filed a motion to dismiss the Chapter 11 case of the design-build team for the project Friday in Delaware, saying the case was filed as a way to escape liability in an ongoing dispute over construction contracts related to the wheel.

  • January 5, 2018

    Second Bidder's Fees OK'd For Boston Herald Ch. 11 Auction

    The Boston Herald’s pending bankruptcy sale became a horse race Friday with a Delaware judge’s tentative approval of bid procedures allowing a $200,000 deal termination fee and expense payments for a second bidder.

  • January 5, 2018

    Life Settlements Pursues Bankruptcy Financing Package

    Bankrupt life insurance policy buyer Life Settlements Absolute Return I LLC told a Delaware bankruptcy judge Friday that it was seeking post-petition financing to help fund a reorganization of its business.

  • January 4, 2018

    TerraVia Holdings Moves Ahead With Ch. 11 Liquidation

    Algae-to-food developer TerraVia Holding Inc. turned the final corner in its Delaware Chapter 11 on Thursday after a sale of most assets, filing a combined disclosure and liquidation plan that offers unsecured creditors a 12.25 percent recovery on $181 million in claims.

  • January 4, 2018

    Greenberg Traurig To Pay $5M To Defunct Builder In JV Row

    A Florida bankruptcy judge gave his blessing Thursday for Greenberg Traurig LLP to pay $5 million to the liquidation trust for Tousa Inc. to settle potential claims related to the firm’s legal representation of the defunct homebuilder on an ill-fated acquisition that caused the company to topple.

  • January 4, 2018

    Mexican Firm's Contract Claim Adds Wrinkles To M&G Ch. 11

    A major Mexican customer of bankrupt M&G USA Corp. has objected to what it said was M&G’s move to take up contracts of affiliates not connected with the $1.7 billion Delaware bankruptcy in a sale of debtor’s assets.

  • January 4, 2018

    Charming Charlie Landlords Oppose Lease Rejection Plans

    Three landlords leasing property to bankrupt women’s clothing and accessory retailer Charming Charlie Inc. objected Thursday to the company’s proposed lease rejection procedures, saying they didn’t allow enough time for the landlords to respond to a rejection notice from the debtor.

  • January 4, 2018

    Top Bankruptcy Lawyer To Open New Pachulski Stang Office

    Pachulski Stang Ziehl & Jones LLP on Thursday announced that one of the founding partners of Lobel Weiland Golden Friedman LLP will head the firm’s newest California office.

  • January 4, 2018

    US Trustee Says Seadrill Skimps On Ch. 11 Plan Details

    Offshore oil rig operator Seadrill Ltd. should be required to update the solicitation ballots for its proposed Chapter 11 reorganization plan because the company has misclassified claims and left out pertinent information, the federal government's bankruptcy watchdog said in a Wednesday court filing.

  • January 4, 2018

    EFH Slams Major Creditor Bid For Ch. 11 Fee Panel Post

    Energy Future Holdings Corp. claimed Wednesday that a majority unsecured creditor’s successful bid for a seat on the company’s Chapter 11 professional fee committee could lead to bias in committee decisions as well as damaging pressures to drive attorneys' fees below market levels.

  • January 4, 2018

    End Of The Line For ‘Rambling’ RICO Suit, 11th Circ. Says

    Bill pay kiosk company Vibe Micro Inc. does not deserve another shot at fixing the “shotgun pleading” problems that doomed its “rambling” suit against a group of insiders who allegedly conspired to sell off a subsidiary with the help of Snell & Wilmer LLP, the Eleventh Circuit ruled Wednesday.

  • January 4, 2018

    Brookfield Puts Up $4.6B For Bankrupt Westinghouse

    Brookfield Business Partners will acquire Toshiba Corp.'s bankrupt subsidiary Westinghouse Electric for $4.6 billion, the company said Thursday.

  • January 3, 2018

    Fraud Questions Linger In Woodbridge Ch. 11 Trustee Fight

    Attorneys lining up arguments over a U.S. Securities and Exchange Commission bid to oust Woodbridge Group’s bankruptcy team grappled Wednesday with how to stipulate the scope of the company’s alleged $1.2 billion fraud without getting bogged down in details or blowing up claims or defenses.

  • January 3, 2018

    Takata Ch. 11 Disclosures Approved After Numerous Changes

    The Chapter 11 disclosure statement for bankrupt vehicle safety equipment maker Takata received court approval Wednesday in Delaware after a judge considered more than two dozen requests for modifications made by creditors, tort plaintiffs and the federal bankruptcy watchdog.

  • January 3, 2018

    Hedge Fund Blasts Defense Of Puerto Rico Restructuring Law

    Hedge fund Aurelius Capital Management on Tuesday reasserted its claims that the federal board representing Puerto Rico in its financial restructuring cases was unconstitutionally appointed, saying there is no exception in the U.S. Constitution's appointments clause for "territorial officers."

  • January 3, 2018

    Katten Nabs Distressed Debt Pro From Richards Kibbe

    Katten Muchin Rosenman LLP has hired a distressed debt pro from Richards Kibbe & Orbe LLP to head up its distressed debt and claims trading practice, the firm announced Wednesday.

  • January 3, 2018

    LeClairRyan Sued For Malpractice By Ex-Blood Test Exec

    The founder and ex-CEO of scandal-plagued medical screening company Health Diagnostic Laboratory Inc. has hit LeClairRyan with a whopping $2.6 billion malpractice suit in Virginia court, alleging the law firm’s bad advice led directly to the kickback suits that nearly destroyed HDL and now threaten her personally.

Expert Analysis

  • An Interview With Former DHS Secretary Jeh Johnson

    Randy Maniloff

    Jeh Johnson, the former secretary of homeland security, was kind enough to let me visit him to reflect on his diverse career. He told stories that left me speechless. And yes, the man who was responsible for the Transportation Security Administration removed his shoes when going through airport security. You bet I asked, says Randy Maniloff of White and Williams LLP.

  • A Powerful Tool For Collecting Judgments

    Craig Weiner

    Enforcing a judgment, particularly in foreign jurisdictions, is a complex and difficult endeavor, and filing lawsuits in foreign countries often proves ineffective and costly. These situations require specialization and expertise, and litigants are increasingly turning to court-appointed receivers as a solution, say Craig Weiner and Chelsea Walcker of Robins Kaplan LLP.

  • Series

    Judging A Book: Gilstrap Reviews 'Alexander Hamilton'

    Judge Rodney Gilstrap

    While Alexander Hamilton is the subject of a hit Broadway musical and renewed biographical examinations, professor Kate Brown takes us down a road less traveled in her book "Alexander Hamilton and the Development of American Law" — showing Hamilton as first, last and foremost an American lawyer, says U.S. District Judge Rodney Gilstrap of the Eastern District of Texas.

  • The Case For Creating A Mediation Department At Your Firm

    Dennis Klein

    There are at least four reasons supporting the need for some form of a mediation group within a law firm, especially in firms with larger practices, according to Dennis Klein, owner of Critical Matter Mediation and former litigation partner at Hughes Hubbard & Reed LLP.

  • Intermediate Transfers May Be Safe From 546(e) Safe Harbor

    Meaghan Gragg

    In Merit Management v. FTI Consulting, the U.S. Supreme Court is reviewing the Seventh Circuit’s decision that the Section 546(e) safe harbor does not protect from avoidance a transfer that is conducted through a financial institution where the institution acts merely as a conduit. Based on the justices’ questions at oral argument last week, the odds are good that the Supreme Court will agree with the Seventh Circuit, says Meaghan ... (continued)

  • Being There: Defending Depositions

    Alan Hoffman

    Defending depositions is challenging. The lawyer is the only shield and protector for the witness and the client. The rules of engagement are less than clear, and fraught with ethical perils. Difficult judgment calls often must be made in the heat of battle. This is where lawyers really earn their keep, says Alan Hoffman of Husch Blackwell LLP.

  • A Tale Of 2 Cases On 3rd-Party Releases

    Matthew Kelsey

    Before a bankruptcy court can examine whether a nonconsensual third-party nondebtor release is permissible, it must first determine whether it has authority to approve such releases. Two recent — and conflicting — opinions suggest that this determination depends on the bankruptcy court's view as to what "operative proceeding" governs the matter, say attorneys with Gibson Dunn & Crutcher LLP.

  • A Look At NYC Bar Association's Task Force On Puerto Rico

    Roger Juan Maldonado

    Last year, the New York City Bar Association created its Task Force on Puerto Rico to monitor and comment on the actions of stakeholders involved in the implementation of the Puerto Rico Oversight Management and Economic Stability Act. The task force's focus has naturally shifted in the aftermath of Hurricane Maria's catastrophic impact, say Roger Juan Maldonado and Neysa Alsina of the New York City Bar Association.

  • Opinion

    The Legal Fallout For Harvey Weinstein’s Hired Hands

    Nicole Kardell

    There is a difference between a lawyer or investigator seeking evidence to defend against allegations and correct misrepresentations, and, on the other hand, using duplicitous means to gather information and intimidate alleged victims and journalists. Client advocacy does not mean winning at all costs, says Nicole Kardell of Ifrah Law PLLC.

  • Jury Persuasion In An 'Alt-Fact' World

    Shelley Spiecker

    Today's climate of “alternative facts” has jurors making decisions based on beliefs, emotions and social affiliations that often go unacknowledged or underappreciated. To present their case in the most persuasive manner possible, litigators should consider adapting to their audience when it comes to four psychological factors, say consultants with Persuasion Strategies, a service of Holland & Hart LLP.