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Bankruptcy

  • November 30, 2018

    Real Mex Asks For More Time To Consider Ch. 11 Plan Filing

    The parent company of bankrupt casual dining chain Real Mex asked a Delaware judge Friday to extend the time frame during which it has the exclusive right to file a Chapter 11 plan to give it more time to work through the claims filed against its estate.

  • November 30, 2018

    McKinsey Critic Aims To Keep RICO Suit Alive As Feud Grows

    A federal racketeering suit accusing McKinsey & Co. of failing to disclose conflicts of interest in several Chapter 11 cases should not be dismissed, Jay Alix, a fierce critic and competitor of the global consulting firm said this week, pushing forward a multipronged feud.

  • November 30, 2018

    Aralez Creditors Slam Proposed Ch. 11 Sales To Deerfield

    The unsecured creditors of bankrupt Aralez Pharmaceuticals Inc. want to block a proposed $250 million asset sale to prepetition lender Deerfield Management Co. LP and an associated company, telling a New York bankruptcy court that at least $75 million of the debt Deerfield is using to bid on the assets is really just equity, and therefore worthless.

  • November 30, 2018

    3rd Circ. Upholds Rent Recoupment Plan In Casino Ch. 11

    A Third Circuit panel on Friday upheld a nightclub and beach club owner’s lease agreement with the new owners of a casino that filed for Chapter 11, ruling that the Bankruptcy Code and the doctrine of equitable recoupment entitle the owner to reduce his rent obligation in keeping with the lease agreement he held with the casino.

  • November 30, 2018

    Toys R Us Asia JV Settlement Gets Bankruptcy Court Approval

    A Virginia bankruptcy judge on Friday approved a settlement between Toys R Us investors and the minority equity holder in the toy giant’s $900 million in Asian business, clearing the way for the investors to buy an 85 percent stake in the overseas assets.

  • November 30, 2018

    MVP: Quinn Emanuel's Susheel Kirpalani

    Susheel Kirpalani, partner at Quinn Emanuel Urquhart & Sullivan LLP, has advised the largest group of bondholders in Puerto Rico's restructuring as they maneuver a bankruptcy law he had a role in creating, making him one of Law360's 2018 Bankruptcy MVPs.

  • November 29, 2018

    McKinsey Looks To Fight Jay Alix Claims By Unsealing Docs

    McKinsey & Co. opened a new front on Thursday in its bitter, multi-pronged legal battle with turnaround firm AlixPartners LLP and its founder Jay Alix, asking a Delaware Chancery Court for permission to publicly disseminate documents from a previously settled case that it says will prove Alix's recent attacks are just cynical ploys that follow a game plan formulated years ago.

  • November 29, 2018

    Investors Get First OK On $23M Deal With Cobalt Underwriters

    A Texas federal judge granted preliminary approval on Thursday for a nearly $23 million settlement with Morgan Stanley, Credit Suisse and a host of other investment banks that served as underwriters for the now-bankrupt Cobalt International Energy Inc.

  • November 29, 2018

    Cancer Center's Private Sale Plan Nixed For Ch. 11 Auction

    A private sale process proposed by bankrupt cancer treatment center Oklahoma ProCure Management LLC was denied Thursday by a Delaware judge who said that news of a new competing bidder called for a traditional Chapter 11 auction procedure.

  • November 29, 2018

    Unsecured Creditors Flag Promise Healthcare’s Ch. 11 Plans

    Unsecured creditors objected to various aspects of bankrupt hospital operator Promise Healthcare Group LLC’s Chapter 11 on Thursday, including the proposed sale of a California facility and bid protections proposed for the stalking horse bidder for another facility.

  • November 29, 2018

    The Weinstein Co.'s Contract Issues Proposed For Mediation

    Disputes over the status of film contracts between The Weinstein Co. and actors, producers and directors may be headed to mediation after a Delaware bankruptcy judge encouraged the parties to explore that option Thursday.

  • November 29, 2018

    Attys Agree To Join Patriot National Suits, But Spar On Venue

    Counsel for two sets of investors in bankrupt Patriot National Inc. went before the U.S. Judicial Panel on Multidistrict Litigation on Thursday, with each arguing that separate suits over Patriot’s alleged fraud scheme should be consolidated but disagreeing on whether they should be taken up in New York or Florida.

  • November 29, 2018

    Relativity Media To Beef Up Liquidation Plan Disclosures

    Relativity Media LLC said Thursday it will address a number of bankruptcy court concerns regarding the disclosure materials for its Chapter 11 liquidation plan, putting the defunct studio on course to begin soliciting creditor votes on its proposed wind-down process in the coming days.

  • November 29, 2018

    Puerto Rico Bankruptcy Fee Examiner Seeks More Scrutiny

    The firms representing Puerto Rico's public debtors and creditor committees in the territory's restructuring cases should be subject to new controls over their ability to bill for experts and receive rate increases, a fee examiner has reported.

  • November 29, 2018

    Bankrupt RMH Still Tweaking Details Of Applebee’s Deal

    A week after court filings indicated that bankrupt Applebee's restaurant franchisee RMH Franchise Holdings Inc. had reached a settlement agreement with the restaurant chain that could pave the way to a much smoother Delaware Chapter 11 confirmation process than anticipated, details are still being tweaked on the deal, according to a teleconference Thursday.

  • November 29, 2018

    Air Charter Founder Gets 8 Years For Defrauding Passengers

    The former vice president of a now-bankrupt public air charter operator has been sentenced in New Jersey federal court to nearly eight years in prison for her role in a scheme to steal millions of dollars that passengers prepaid for flights, the U.S. Department of Justice announced Wednesday.

  • November 29, 2018

    Pilot Says Airline Ignored Jets' Carbon Monoxide Leaks

    Now-defunct airline startup OneJet ignored maintenance issues and allowed air tainted by carbon monoxide and engine exhaust to fill the cabins of two aircraft, a pilot said in a lawsuit filed in Pennsylvania federal court, claiming the company’s negligence caused his severe sickness.

  • November 29, 2018

    MVP: Akin Gump's Ira Dizengoff

    Bankruptcy deal-maker Ira Dizengoff of Akin Gump Strauss Hauer & Feld LLP reorganized tens of billions of dollars this year, including an arrangement that fended off unemployment for 4,500 people working at bankrupt power plants, efforts that landed him among Law360’s 2018 Bankruptcy MVPs.

  • November 29, 2018

    Platinum Union Graft Suit Wrongly Dismissed, 2nd Circ. Told

    New York correctional union members on Wednesday asked the Second Circuit to revive a derivative suit targeting the top brass of the Correction Officers’ Benevolent Association over the alleged Platinum Partners bribery scheme, saying a lower court wrongly found a need for a presuit demand for action from the COBA’s board.

  • November 28, 2018

    PE Manager To Face Contempt Hearing In Hospital's Ch. 11

    A Dallas-based private equity manager cannot delay a Texas bankruptcy court set to conduct a hearing in December on whether he should be held in contempt for wrongfully paying his firm millions after assisting in the Chapter 11 reorganization and sale of an Austin hospital, a judge said Tuesday.

Expert Analysis

  • SDNY Decision Could Inject Uncertainty Into 363 Sales

    Steven Wilamowsky

    The Southern District of New York's recent ruling in Cooper could pare back some of the protections to which asset buyers in bankruptcy cases generally have been entitled under Section 363(m) of the Bankruptcy Code, say Steven Wilamowsky and Laura Appleby of Chapman and Cutler LLP.

  • Critical Factors For Airline Survival And Restructuring

    Henry Kikoyo

    Last week, Primera Air joined the list of airlines that have filed for insolvency, less than a year after the company announced record 2017 financial results. Why the sudden fall from grace? Those familiar with the aviation industry will recognize the pattern, says Henry Kikoyo of Brown Rudnick LLP.

  • Kavanaugh Cannot Be Compelled To Recuse Himself

    Donald Scarinci

    Whether Justice Brett Kavanaugh’s prior statements may be grounds for disqualification when it comes to judging certain cases is debatable, but there are no specific recusal guidelines for the U.S. Supreme Court. The justices themselves don’t even agree on where to draw the line when it comes to perceived political bias, says Donald Scarinci, a founding partner of Scarinci Hollenbeck LLC.

  • Knowledge Management: An Unsung Hero Of Legal Innovation

    Rob MacAdam

    As technology evolves, law firms are increasingly looking for ways to improve communication, transparency and service for their clients. Firms should put knowledge management at the core of their value proposition to create a competitive advantage, says Rob MacAdam at HighQ.

  • Can Defrauded Crypto Investors Hope To Recover Anything?

    Brett Theisen

    While insolvencies and fraud in the cryptocurrency space will create many issues of first impression for the courts, some valuable lessons can be found in more traditional fraud cases, such as the Bernie Madoff Ponzi scheme, says Brett Theisen of Gibbons PC.

  • Opinion

    Skip The New 'Civility Courses' And Think Like A Lawyer

    Alex Dimitrief

    As we watch what passes for political discourse in our nation’s capital, it’s understandable that universities are launching programs on how to cope with ideological disputes. But our country needs fewer people who profess to be open-minded and more people who engage in and honor the conclusions of reasoned debates, says Alex Dimitrief of General Electric Co.

  • Why Law Firms Should Monitor The Dark Web

    Anju Chopra

    Dark web monitoring allows law firms to see what sensitive information may have made its way onto the thriving global underground marketplace where cybercriminals buy and sell exposed data. It can also help lawyers advise clients on a wide range of legal and business matters, say Anju Chopra and Brian Lapidus of Kroll.

  • Does Rule 45 Protect Nonparties From Undue Burden?

    Matthew Hamilton

    Interpretations of Rule 45 protections vary but what's clear is that "undue burden" does not mean no burden at all. To avoid the costs of compliance with a subpoena, a nonparty should be ready to demonstrate its disinterest in the litigation and the anticipated cost and burden of compliance, say attorneys at Pepper Hamilton LLP.

  • UCC Incorporation By Reference: An Imperfect Way To Perfect

    Michael Karpen

    The Uniform Commercial Code allows a fair amount of flexibility when it comes to collateral descriptions in UCC-1 financing statements. But given a recent decision in the Puerto Rico bankruptcy, counsel should refrain from relying on extrinsic documents when seeking to perfect a security interest, say attorneys with Troutman Sanders LLP. 

  • The Substantial Substantiation Rules For Code Section 170

    Bryan Camp

    The recent case of Estelle C. Grainger v. Commissioner of Internal Revenue teaches an important lesson about how difficult the substantiation rules in Internal Revenue Code Section 170 can be for large-dollar noncash charitable contributions, says Bryan Camp, a professor at Texas Tech University School of Law.