Bankruptcy

  • September 8, 2017

    Joe's Crab Shack Files Ch. 11 Plan After $57M Asset Sale

    Joe's Crab Shack parent company Ignite Restaurant Group Inc. put forth a Chapter 11 liquidation plan in Texas bankruptcy court on Thursday that relies on a settlement reached between secured and unsecured creditors to divvy up $57 million in proceeds made from selling the business to Landry’s Inc.

  • September 8, 2017

    PE-Backed Silicone Producer Momentive Files $100M IPO

    Private-equity-backed silicone producer MPM Holdings Inc. filed an estimated $100 million initial public offering on Friday, nearly three years after emerging from bankruptcy, marking the third company to join the IPO pipeline since Labor Day.

  • September 8, 2017

    Iron Mining Co. Says Competitor Is Sabotaging Ch. 11 Plan

    The successor company of Essar Steel Minnesota filed an adversary complaint late Thursday in Delaware bankruptcy court accusing a competitor of interfering with the implementation of its confirmed Chapter 11 plan by sabotaging contracts with customers and suppliers.

  • September 8, 2017

    Norwegian Must Arbitrate Fuel Row, Supplier Says

    A bankrupt marine fuel supplier has asked a Connecticut federal judge to dismiss Norwegian Cruise Line’s suit stemming from bunkers it ordered, saying the cruise line can’t get out of paying what it owes just because it voluntarily paid another supplier tied to the transaction and that the dispute belongs in arbitration in London.

  • September 8, 2017

    HR Contractor Pays Workers $3.16M After DOL Investigation

    A Virginia contractor that provides human resources and other services to federal agencies has paid back more than $3 million in wages and benefits to workers it stiffed during bankruptcy proceedings last year, the U.S. Department of Labor said Thursday.

  • September 8, 2017

    Gymboree Wins Court Approval For $1B Reorganization Plan

    A Virginia bankruptcy court has given its stamp of approval to the Gymboree Corp.’s plan for getting out from under the billion dollar debt it was left with after a 2010 buyout.

  • September 7, 2017

    La Paloma, Top Lender Compromise On Del. Ch. 11 Control

    La Paloma Generating Co. retained, on paper, exclusive Chapter 11 control Thursday after agreeing to allow a $150 million credit bid and other Delaware bankruptcy court concessions to a top lender seeking to buy the California power plant.

  • September 7, 2017

    City Of Hartford Warns Of Bankruptcy Without State Aid

    Officials for the city of Hartford, Connecticut, warned the governor and state lawmakers Thursday that the capital, which is struggling to patch a $50 million budget deficit, could be forced to file for municipal bankruptcy in 60 days without state funding in place.

  • September 7, 2017

    Russian Corporate Raiding Suit Must Be Stayed: Receiver

    The Chapter 15 receiver for a defunct Russian granite producer has asked a New York bankruptcy court to declare that claims alleging Pavlovskgranit was illegally forced into bankruptcy belong to the debtor, essentially pulling the rug out from under a Delaware company pursuing a $750 million suit on those same claims.

  • September 7, 2017

    Soupman Ch. 11 Sale Gets OK With Buyer Now Acquiring Debt

    The tumultuous sale process pursued by bankrupt food distributor The Original Soupman Inc. came to a close Thursday when a Delaware judge approved the sale to an affiliate of shareholder WealthColony Management Group LLC after it agreed to acquire $4.7 million of the debtor’s secured debt.

  • September 7, 2017

    Aman Resorts Involuntary Bankruptcy Saga Draws Judge's Ire

    A New York bankruptcy judge repeatedly described herself at a loss for words on Wednesday while trying to understand how the trustee in an involuntary Florida bankruptcy case connected to luxury hotel group Aman Resorts could have overlooked the checkered past of the petitioner and pending fraud case against him.

  • September 7, 2017

    Judge Won't Nix Arbitration Order In MF Global, Insurer Row

    A New York bankruptcy judge refused Wednesday to overturn his order requiring MF Global to arbitrate in Bermuda a coverage dispute with its excess insurer, Allied World, even after taking a harder look at the defunct brokerage's argument that its liquidation plan supersedes an arbitration provision.

  • September 7, 2017

    Energy XXI Execs Face Shareholder Suit Over Statements

    Shareholders in Energy XXI Ltd. on Wednesday accused the energy company’s officers and directors of fraudulently inflating the company’s value for their own benefit leading up to the company’s 2016 bankruptcy.

  • September 6, 2017

    National Events DIP Loan Will Finance Dueling Investigations

    The structure for one of two parallel bankruptcy cases for defunct ticket reseller National Events finally fell into place Wednesday, as a New York bankruptcy court agreed to leave in place a state court-appointed receiver who will investigate the suspected Ponzi scheme vehicle alongside an independent examiner.

  • September 6, 2017

    Puerto Rico Electric Co. Wants Rate Row Heard By Fed. Court

    Puerto Rico's insolvent electric utility filed papers Tuesday to transfer a dispute over rate hikes to the federal court presiding over the island's historic bankruptcy-like proceedings, saying the matter challenges the authority of federal overseers and the law underpinning the territory's restructuring.

  • September 6, 2017

    Lyondell Trustee's $6.3B Shareholder Clawback Suits Axed

    The unsecured creditors of Lyondell Chemical Co. have agreed to lay down their arms in three clawback suits targeting $6.3 billion paid out to shareholders just before the company went under in 2008, with a New York bankruptcy court on Tuesday blessing a joint order to dismiss all remaining claims with prejudice.

  • September 6, 2017

    Takata Creditors Question Ch. 11 Notices In Air Bag Case

    Manufacturing creditors of bankrupt vehicle airbag maker Takata Corp. objected Wednesday to taking on most of the $37 million cost of expanded notifications to future individual claim-makers, arguing in a Delaware bankruptcy filing that the expense is part of the overall case cost and benefit.

  • September 6, 2017

    2 Ex-Howrey Partners Settle Tax Cases For $50K Each

    Two foreign former Howrey LLP partners will pay $50,000 apiece to end tax obligation cases with the trustee representing the long-defunct law firm after he claimed the duo had skipped out on payments and contractual obligations, according to a settlement approved Wednesday in California bankruptcy court.

  • September 6, 2017

    Texas Banks Settle $66M Fraud Suit Over Syndicated Loan

    Three Texas lenders on Wednesday told a Texas federal court they’ve settled claims in a sprawling $66 million fraud dispute over liability for a syndicated loan provided to a now-bankrupt group of greenhouse operators.

  • September 6, 2017

    Thema International To Pay $687M In Madoff Recovery

    An Irish fund that sent investor money to Bernie Madoff starting in 1996 will pay $687 million to the bankruptcy trustee for the Ponzi schemer’s investment company, which is tasked with recovering funds for his victims, according to a settlement agreement filed in New York federal court Wednesday.

Expert Analysis

  • Fisker Takes Trustee Avoidance Powers Overseas

    Chad Dale

    The Delaware bankruptcy court's recent decision in the case of Fisker Automotive significantly expanded the ability of debtors in possession and trustees to pursue fraudulent transfer and unjust enrichment claims for transactions occurring outside the U.S., say attorneys with K&L Gates LLP.

  • Having A Chief Privacy Officer Reassures Your Firm's Clients

    Rita Heimes

    When a law firm appoints a chief privacy officer, not only does the firm benefit from the crucial operational impact of a well-managed privacy program, but clients see how seriously you take your duties of confidentiality and competence, says Rita Heimes, research director at the International Association of Privacy Professionals.

  • Some Needed Certainty On Administrative Expense Status

    Mark Sherrill

    Debtors in bankruptcy have often used the ambiguity surrounding the meaning of the word “received” as a tool to fight against administrative expense claims. Earlier this month, the Third Circuit issued an opinion in the case of World Imports that will likely be highly influential on this matter, says Mark Sherrill of Eversheds Sutherland.

  • Weekly Column

    Innovating For Wise Juries: Discussions Before Deliberations

    Richard Lorren Jolly

    To be sure, allowing jurors to discuss evidence before final deliberations proved to be among the least popular of our recommended innovations. But empirical evidence belies these fears, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.

  • 5 Questions Firms Should Ask When Evaluating Litigation AFA

    Gregory Lantier

    Law firm management should understand the client’s reasons for requesting an alternative fee arrangement, and whether approving the fee will help grow the relationship with the client, say attorneys with WilmerHale.

  • For Law Firm Offices, Business Savvy Is The New Cool

    Craig Braham

    Having embraced the notion that the right space can reinforce the right firm culture, law firm leaders have been evaluating real estate primarily for its physical properties. However, it's hard to be collegial, even in the coolest of in-house coffee bars, if your cost structure is untenable, says Craig Braham of Advocate Commercial Real Estate Advisors LLC.

  • Litigation Finance And Its Uses In Bankruptcy

    Travis Lenkner

    Litigation finance is increasingly used in the bankruptcy arena to help generate meaningful recoveries. In addition to transactions in which a finance provider purchases an interest in a high-value judgment from the estate, litigation finance can be used in a variety of bankruptcy scenarios, says Travis Lenkner of Burford Capital LLC.

  • The Best Documents In Your Case May Be From 3rd Parties

    Wyatt Dowling

    Cases are built on evidence and evidence comes from discovery. But discovery is largely a voluntary process. Serving a document subpoena on a third party can be an efficient and creative way to fill in the gaps that may exist in the productions of opposing parties, says Wyatt Dowling of Yetter Coleman LLP.

  • A Possible Pathway Out Of The Stern V. Marshall Maze

    Benjamin Feder

    PEM Entities v. Levin, which the U.S. Supreme Court will hear next term, potentially could provide the court with a coherent rationale to start resolving the uncertainty it created six years ago in Stern v. Marshall regarding the constitutional authority of bankruptcy courts, says Benjamin Feder of Kelley Drye & Warren LLP.

  • Planning A Legal Career With A Future Relocation In Mind

    Jacqueline Bokser LeFebvre

    Lawyers move to New York City to work on some of the most sophisticated work the legal market has to offer. This exposure and experience is an amazing asset and many of the skills developed will make associates very marketable in the event they consider relocating to another market. However, this isn’t always the case, says Jacqueline Bokser LeFebvre of Major Lindsey & Africa.