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Bankruptcy

  • February 4, 2019

    Zohar Defends, Tilton Objects To New Agent In Del. Ch. 11

    Creditors of the bankrupt Zohar funds accused collateralized loan and business turnaround mogul Lynn Tilton late Friday of conflicted efforts to dismantle or rework part of a broad settlement that headed off efforts to get the case dismissed last year.

  • February 4, 2019

    Sears Faces Challenges To $5B Sale Plan, Store Closures

    Objectors to the proposed $5.2 billion sale of Sears Holdings Corp. to ESL Investments Inc. questioned the sale agreement’s legal releases, the solvency of the Sears estate and planned store closures in a New York bankruptcy court hearing Monday.

  • February 4, 2019

    FullBeauty Wins Quick OK For $900M Ch. 11 Plan

    Plus-size clothing company FullBeauty Brands Inc. saw its $900 million prepackaged Chapter 11 plan approved Monday in a New York bankruptcy court, less than 24 hours after it submitted its bankruptcy papers.

  • February 4, 2019

    Bankruptcy Ruling Piles More Gloom On Canadian Oil Cos.

    The Supreme Court of Canada's recent ruling that bankrupt oil and gas companies must clean up abandoned drilling sites before paying off creditors will further squeeze an already struggling Canadian oil sands industry and could raise more environmental liability questions than answers, attorneys say.

  • February 4, 2019

    Republic Creditors Seek $6M Clawback From Founder's Kid

    A group of Republic Metals Corp. creditors is seeking to claw back $6 million from the daughter of the bankrupt metal refiner's founder in a suit that claims she did not perform "any significant work" to justify her salary and bonuses.

  • February 4, 2019

    Novum Pharma Opens $53M Del. Ch. 11 With Sale Plan

    Specialty drug company Novum Pharma LLC opened a Chapter 11 case in Delaware on Sunday with $53 million in debt and sale plans, citing pressure from generic product competitors, manufacturing issues and managed care expenses as reasons for its filing.

  • February 4, 2019

    Avenatti's DQ Bid In $10M Row 'Tactically Abusive': Judge

    A California federal judge has denied a bid by lawyer Michael Avenatti to disqualify attorneys from Frank Sims & Stolper LLP from representing his former law partner in a suit seeking to enforce a $10 million judgment, calling the motion to disqualify "tactically abusive."

  • February 4, 2019

    Greenberg Opens New Minneapolis Office With DLA Crew

    Greenberg Traurig LLP has opened a new office in Minneapolis with three DLA Piper lawyers, marking the firm's 30th location in the U.S., the firm announced Monday.

  • February 4, 2019

    Clothing Retailer Charlotte Russe Declares Bankruptcy

    Charlotte Russe, a retailer of clothing for women, has filed for Chapter 11 in Delaware bankruptcy court with roughly $173 million in debt and a $50 million debtor-in-possession loan lined up, with plans to either sell itself as a going concern or hold a liquidation sale.

  • February 1, 2019

    As Puerto Rico Recovers, Courts Heed Lessons Of Disaster

    When Puerto Rico plunged into darkness in September 2017, the island's courts rallied to reopen and re-establish a pillar of the community. More than a year later, judicial officials are still surveying the damage.

  • February 1, 2019

    Aegean Marine Hit With Suit Over Alleged $300M Fraud

    A group of Aegean Marine Petroleum Network Inc. creditors hit the ailing Greek refueling company's executives with a proposed class action in New York federal court on Friday, seeking damages for an alleged $300 million fraud scheme that forced Aegean into bankruptcy late last year.

  • February 1, 2019

    Ex-WaMu Execs Lose Del. Ch. 11 Fight For Pay Incentives

    Citing a federal agency prohibition, a Delaware bankruptcy judge on Friday rejected long-dangling golden parachute, incentive pay and related claims filed by former executives of long-shuttered Washington Mutual Inc., freeing what had been a $66 million estate settlement reserve.

  • February 1, 2019

    Citgo Denies Bankruptcy Rumor In Wake Of WSJ Report

    Citgo Petroleum Corp., a Houston-based oil refiner owned by Venezuela's state oil giant, said Friday it "has no intention of entering into bankruptcy proceedings" after the Wall Street Journal reported the company is considering that option amid Venezuela's political power crisis and U.S. sanctions.

  • February 1, 2019

    ESL Says $5.2B Ch. 11 Sale Only Way Forward For Sears

    ESL Investments Inc. urged a New York bankruptcy court Friday to reject objections by Sears Holding Corp.'s unsecured creditors committee to the proposed $5.2 billion sale of the company to ESL, saying it is a fair deal and will revive the retail giant.

  • February 1, 2019

    PBGC Sues Sears To Take Over Struggling Pension Plans

    The Pension Benefit Guaranty Corporation on Friday urged an Illinois federal judge to terminate two Sears Holdings Corp. pension plans estimated to be underfunded by $1.4 billion so that the agency could take over the assets and obligations of the plans.

  • February 1, 2019

    Promise Healthcare’s $80M Ch. 11 Sale Of Calif. Hospital OK’d

    A Delaware judge on Friday gave his nod to Promise Healthcare Group LLC’s roughly $80 million sale of a Los Angeles-area medical center and bid procedures in connection with the planned sale of the bankrupt hospital operator’s remaining assets that have yet to be sold.

  • February 1, 2019

    Nine West Pleads Case For Ch. 11 Plan OK Ahead Of Trial

    Ahead of a multiweek trial over the fairness of its plan to reorganize in Chapter 11 proceedings, Nine West Holdings Inc. said Friday that its proposal to distribute $785 million to creditors should be approved, calling it the best result reached after months of hard-fought stakeholder negotiations.

  • February 1, 2019

    Insurer Says It Needn't Defend Auditor In Microcap Scheme

    Great American Assurance Co. asked a Florida federal court Thursday to declare that it does not have to defend an accounting firm in a bankruptcy trustee's suit over a $23 million microcap scheme operated by executives at Sanomedics Inc.

  • February 1, 2019

    Oil Storage Co. Settles Dispute Over Costs In Ch. 11

    Bankrupt oil storage company Fairway Energy LP told a Delaware bankruptcy judge Friday it has settled a dispute in its Chapter 11 over $622,000 in estimated costs to perform work at an underground storage cavern it leases.

  • February 1, 2019

    Indonesian Shipping Giant To Rework $437M Debt Load

    A major Indonesian coal transporter filed for Chapter 11 for a bond-issuing subsidiary in a New York bankruptcy court Friday, saying the filing is part of a plan to restructure $437 million in debt.

Expert Analysis

  • 10 Tips For Law Firms To Drive Revenue Via Sports Tickets

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    Many law firms have tickets or luxury suites at sporting events to host clients and prospects. Matthew Prinn of RFP Advisory Group and Matt Ansis of TicketManager discuss some of the ways that firms can use those tickets effectively.

  • Inside Key ABA Guidance On Attorneys' Cybersecurity Duties

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    A recent opinion from the American Bar Association provides useful guidance on attorneys’ obligations to guard against cyberattacks, protect electronic client information and respond if an attack occurs, says Joshua Bevitz of Newmeyer & Dillion LLP.

  • Opening Comments: A Key Strategic Decision In Mediation

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    Opening comments by parties in mediation that are made with the proper content and tone can diffuse pent-up emotion and pave the way for a successful resolution. But an opening presentation can do more harm than good if delivered the wrong way, say Jann Johnson and William Haddad of ADR Systems LLC.

  • Opinion

    USA Gymnastics Should Dissolve Itself In Bankruptcy

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    USA Gymnastics, facing over 100 lawsuits as a result of the Larry Nassar sex molestation crimes, recently filed for bankruptcy to ensure its survival. However, rather than being preserved, the organization should be replaced by a government agency that can assume financial and moral responsibility, says Ronald Katz of GCA Law Partners LLP.

  • Arbitration In Bankruptcy Isn't Dead After Anderson

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    In Anderson v. Credit One Bank, the Second Circuit declined to enforce a mandatory arbitration provision, despite a long-standing U.S. Supreme Court mandate. While Anderson seems to mark a departure for bankruptcy cases with arbitration provisions, it may simply reflect a narrow exception, says Deborah Reperowitz of Stradley Ronon Stevens & Young LLP.

  • Series

    Judging A Book: Ginsburg Reviews 'The Curse Of Bigness'

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    When reading Tim Wu’s new book, "The Curse of Bigness: Antitrust in the New Gilded Age," lawyers, economists and historians will find its broad brush maddening, and the generalist reader will simply be misled, says D.C. Circuit Judge Douglas Ginsburg.

  • Taberna Bankruptcy Ruling Brings Relief For CDO Investors

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    A New York bankruptcy court's recent dismissal of Taberna Preferred Funding's involuntary Chapter 11 case reinforces the accepted principle that contractual terms are the best means for liquidating a nonrecourse securitization vehicle — good news for those interested in the stability of the collateralized debt obligation model, says James Bentley of Schulte Roth & Zabel LLP.

  • Jurors Should Ask More Questions During Trials

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    Permitting jurors to submit written questions, or even to pose questions orally to witnesses on the stand, advances several important goals and promotes both fairness and efficiency, says Matthew Wright of McCarter & English LLP.

  • Calif. Ruling Dings Engagement Letter Arbitration Clauses

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    The California Supreme Court's recent decision in Sheppard Mullin v. J-M Manufacturing has cast doubt on arbitration clauses in attorney engagement agreements, jeopardizing the efficient resolution of malpractice claims and fee disputes, say Sharon Ben-Shahar Mayer and Mark Drooks of Bird Marella Boxer Wolpert Nessim Drooks Lincenberg & Rhow PC.

  • 10 Things We Wish We Were Told When Going In-House

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    Attorneys at Albert Einstein College of Medicine, Perkins Coie LLP and the Healthcare Association of New York State reflect on lessons they learned the hard way when transitioning to in-house counsel positions.