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Bankruptcy

  • 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.

  • October 2, 2018

    Toys R Us Axes IP Auction, To Focus On Branding

    Toys R Us has canceled plans to auction off its brand marks and intellectual property later this week, the fallen retail giant told a Virginia bankruptcy court Monday, indicating it will pursue a plan of reorganization that may shift the focus of the company toward its brand names.

  • October 2, 2018

    Lehman To Add Indemnity Claims Against Mortgage Sellers

    Lehman Brothers Holdings Inc. is looking to increase indemnification requests from about 100 mortgage lenders it alleges sold the defunct firm shoddy home loans before its collapse, seeking to tack on obligations related to $2.45 billion worth of claim settlements with residential mortgage-backed securities trusts.

  • October 2, 2018

    Deals Rumor Mill: Exxon, Cinven, Mattress Firm

    Exxon Mobil Corp. is considering selling off a trove of assets in the Gulf of Mexico, Cinven wants its seventh buyout fund to rake in a record number of proceeds, and the country’s largest mattress retailer could file for bankruptcy as soon as this week.

  • October 2, 2018

    Telco Not Shown Insolvent At Time Of Transfer, 11th Circ. Says

    The Eleventh Circuit on Tuesday dismissed claims a telecommunications company's sale of its rights over a patent portfolio before it went bankrupt was a fraudulent transfer, saying the liquidation trustee failed to prove the company was insolvent at the time of the sale.

  • October 2, 2018

    Open Road Gets More Time To Nail Down Stalking Horse Bid

    Bankrupt film distribution company Open Road Films LLC got permission from a Delaware judge Tuesday to wait another week before submitting auction bidding procedures so it could continue to accept offers from potential stalking horse bidders.

  • October 2, 2018

    Gibson’s Chapter 11 Plan Gets Nod In Delaware

    A Delaware bankruptcy judge gave his nod on Tuesday to musical instruments maker Gibson Brands Inc.’s Chapter 11 plan after a settlement was reached with creditors last month to provide improved recoveries for some and last-minute details were hashed out.

  • October 2, 2018

    Boeing Tries To Cut Lost Profits Claims In $1.3B Deal Row

    The Boeing Co. has urged an Alabama federal court to find that Alabama Aircraft Industries can’t pursue lost-profits damages in its suit alleging Boeing cut it out of a $1.3 billion U.S. Air Force deal, while the now-bankrupt AAI argued the parties’ agreement doesn’t bar such recovery.

  • October 2, 2018

    Georgia-Pacific Affiliate Says Ch. 11 Should Keep Going

    Georgia-Pacific affiliate Bestwall LLC has defended its Chapter 11 filing, telling a North Carolina bankruptcy judge that a committee of asbestos claimants is pushing “unsubstantiated allegations” by asserting that its parent company is using the case to evade asbestos claims.

  • October 2, 2018

    Verity Health Gets $235M Stalking Horse Bid On 2 Hospitals

    Nonprofit hospital chain Verity Health System of California Inc. asked a California bankruptcy court on Monday to approve a $235 million stalking horse bid from Santa Clara County for two of its six hospitals.

  • October 2, 2018

    Sedgwick Files For Ch. 11 Bankruptcy

    Sedgwick LLP, the shuttered San Francisco-based firm that closed its doors at the beginning of the year, filed for Chapter 11 bankruptcy in Northern California federal court on Tuesday.

  • October 1, 2018

    Proposed Asbestos Trust Rep Faces Depo In Duro Dyne Ch. 11

    Amid enhanced government scrutiny of bankruptcy trusts for asbestos exposure victims, a New Jersey bankruptcy judge said Monday that the proposed representative for future claimants in the Chapter 11 case for Duro Dyne National Corp. must show evidence of disinterest before being formally appointed.

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.