Bankruptcy

  • April 3, 2018

    Jewelry Merchant Charming Charlie Confirms Ch. 11 Plan

    Jewelry and accessories retailer Charming Charlie Inc. is set to exit Chapter 11 bankruptcy proceedings in a slimmed-down state after a Delaware bankruptcy judge on Tuesday approved a restructuring agreement proposed by the troubled chain.

  • April 3, 2018

    'Acrimony' Warrants Ch. 11 Trustee For Zohar, UST Says

    Citing “debilitating and entrenched acrimony” among Lynn Tilton’s Zohar Funds and their Delaware Bankruptcy Court creditors and opponents, the Office of the U.S. Trustee on Tuesday called for the appointment of an independent trustee or examiner for the case.

  • April 3, 2018

    Justices Punt Tribune Co. Clawback Row After Merit Ruling

    The Supreme Court has delayed deciding a case brought by Tribune Co. creditors over the scope of the Bankruptcy Code’s “safe harbor” provision in light of its recent decision in Merit Management v. FTI Consulting, which addressed the same protections for financial institutions facing clawback suits and found them to be unexpectedly narrow.

  • April 3, 2018

    Fieldwood Energy Gets OK For Prepackaged Ch. 11 Plan

    A Texas bankruptcy judge on Monday approved a prepackaged Chapter 11 restructuring plan for Gulf of Mexico oil reserves developer Fieldwood Energy LLC that cuts the company’s debt by $1.6 billion while adding the deepwater assets of competitor Noble Energy Inc. to its portfolio.

  • April 3, 2018

    SunEdison Preferred Investors Want $57M Deal Clarified

    Canyon Capital Advisors has urged a New York federal judge to clarify that a recent $57 million securities litigation settlement doesn't halt Canyon's claims that it lost “tens of millions” of dollars in renewable energy company SunEdison's spectacular collapse.

  • April 2, 2018

    PES Fights Intervention Bid For Plan-Critical Consent Decree

    PES Holdings LLC asked a Delaware bankruptcy court on Friday to reject ethanol trade group Growth Energy’s attempt to intervene in a consent decree governing how it will handle renewable energy credits as it comes out of bankruptcy, saying Growth Energy has no standing to involve itself and has not shown even a likelihood of harm.

  • April 2, 2018

    Puerto Rico Gov. Rejects Oversight Board's New Budget Cuts

    The Governor of Puerto Rico is refusing to meet demands by the commonwealth’s federal overseers for harsher austerity measures, potentially setting up a showdown between the on-again, off-again allies in the troubled island’s restructuring process.

  • April 2, 2018

    Patriot National D&O Payouts Can Resume, Judge Says

    The former directors and officers of Patriot National Inc. will be allowed to continue tapping into insurance policies held by the company to pay defense costs in a myriad of lawsuits surrounding Patriot after a Delaware bankruptcy judge ruled Monday that the issue is not for him to decide.

  • April 2, 2018

    9th Circ. Takes Lloyd's Off Hook For $5M Excess Policy Claims

    The Ninth Circuit on Friday said Lloyd’s of London does not have to pay $5 million on an excess policy into a shareholder settlement with a bankrupt subprime lender, saying the actual amount paid in the settlement does not exceed the policy limits.

  • April 2, 2018

    Hobbico Approved For Pair Of Ch. 11 Asset Sales At $26M

    Bankrupt model vehicle retailer Hobbico Inc. received court approval Monday in Delaware for a pair of asset sales that will bring in $25.8 million in proceeds to the debtor’s estate, with more sales planned for next week.

  • April 2, 2018

    EV Energy Partners Hits Ch. 11, Seeks To Shed $343M In Debt

    EV Energy Partners LP filed for Chapter 11 bankruptcy Monday to implement a prepackaged restructuring support agreement it reached with a majority of its senior lenders to swap old debt for new equity and prune its funded debts by more than $343 million.

  • April 2, 2018

    Failed Developer Asks 1st Circ. To Undo Bankruptcy Judgment

    A failed condominium developer fighting multimillion-dollar debts and criminal harassment charges told the First Circuit on Monday that he was ambushed by a creditor's belated claim in bankruptcy court.

  • April 2, 2018

    FirstEnergy Power Generation Units Seek Relief In Ch. 11

    A group of FirstEnergy Corp. subsidiaries operating the electric utility’s fossil fuel and nuclear power plants across Ohio and Pennsylvania filed for bankruptcy on Saturday with the aim of reducing more than $3 billion worth of funded debt and becoming part of a fully regulated business.

  • April 2, 2018

    Stillwater Loses Appeal Over Transfer Claims For 11 Funds

    A New York federal judge ruled Friday that Stillwater Liquidating LLC cannot bring certain claims over the allegedly fraudulent prebankruptcy transfer of assets out of 11 funds, since they were not debtors in the underlying Stillwater bankruptcy proceedings.

  • April 2, 2018

    Deals Rumor Mill: Shree Renuka, GreenSky, Tabarak

    Shree Renuka Sugars Ltd. is reportedly making a third attempt at selling a pair of Brazilian sugar mills, private financial technology company GreenSky LLC filed confidential plans to list publicly and Tabarak earned more time to finance its deal for the Commercial Bank of Qatar’s stake in United Arab Bank.

  • April 2, 2018

    11th Circ. Revives Bankruptcy Client's Claims Against Attys

    The Eleventh Circuit revived a putative class suit accusing attorneys at Florida-based Kaufman Englett & Lynd PLLC of violating federal law by encouraging a cash-strapped client to put their fees on his credit card while he explored filing for bankruptcy.

  • March 30, 2018

    Probe Sought In Ch. 11 Tied To Alleged Indian Fraudster

    The federal government's bankruptcy watchdog is seeking the appointment of a special examiner to investigate Indian billionaire Nirav Modi's ties to his bankrupt U.S. jewelry businesses, citing accusations that he orchestrated a $2 billion banking fraud in India.

  • March 30, 2018

    UK Litigation Roundup: Here's What You Missed In London

    The last week has seen more than a dozen former professional soccer players sue several financial advisers, the former owner of now-insolvent British fashion chain Jaeger lodge a contract dispute against Lloyds Bank and a private equity fund that bought him out, and Denmark's tax authority lodge an action against Barclays and other firms. Here, Law360 looks at those and other new claims in the U.K.

  • March 30, 2018

    Co. Punished For Dodging Discovery Tied To $75M IP Loss

    A Massachusetts federal judge on Thursday blasted Biolitec AG, its leader and local counsel for making it nearly impossible for AngioDynamics Inc. to collect on a years-old $75 million judgment in an IP dispute, ordering monthly sanctions that could add up to $1 million total until it complies with a discovery order.

  • March 30, 2018

    House Panel Skewers Puerto Rico Fiscal Board's Performance

    The federal board charged with stewarding Puerto Rico's financial rehabilitation has fallen well short of expectations since it was installed nearly two years ago, a U.S. House committee said in a letter Thursday, complaining the board must do more to reach debt restructuring deals with the territory's creditors.

Expert Analysis

  • Health Republic’s Curious Liquidation: Part 14

    James Veach

    On Feb. 14, Health Republic Insurance of New York's liquidator will ask the New York Supreme Court to approve its report on the present status of its liquidation, but it is what the report doesn't discuss that will be most revealing, says James Veach of Mound Cotton Wollan & Greengrass LLP in the final part of this series.

  • Series

    Judging A Book: Duncan Reviews 'Justice And Empathy'

    Judge Allyson Duncan

    In "Justice and Empathy: Toward a Constitutional Ideal," the late Yale Law School professor Robert Burt makes a compelling case for the undeniable role of the courts in protecting the vulnerable and oppressed​. But the question of how the judiciary might conform to Burt’s expectations raises practical problems​, says U.S. Circuit Judge Allyson Duncan of the Fourth Circuit. ​

  • When Blockchain Meets Article 9 And Bankruptcy

    Andrew Helman

    Blockchain cryptocurrencies have been touted as everything from a tool that will revolutionize commerce to the very worst of speculative capitalism. Less attention has been given to their practical application vis-a-vis commercial and insolvency law, say Andrew Helman of Marcus Clegg and Carl Wedoff of Jenner & Block LLP.

  • The Art Of The Litigation Funding Deal

    Julia Gewolb

    As litigation funding becomes more widespread, greater complexity and variability in funding deals are to be expected. All claimants should consider certain key questions on the economics of single-case funding when considering or comparing funding terms, says Julia Gewolb of Bentham IMF.

  • Smart Contracts Need Smart Corporate Lawyers

    Matthew O’Toole

    Given the operational and security risks involved, and the substantial digital asset values transacted, the rise of distributed ledger technology and smart contracts will create new opportunities and responsibilities for transactional lawyers, say attorneys with Potter Anderson Corroon LLP.

  • Another Bankruptcy Discharge Case Before High Court

    Thomas Byrne

    The government’s once-sterling record of victories in bankruptcy cases before the U.S. Supreme Court has been dinged in recent years, but the odds still would have to favor the government's side in Lamar Archer & Cofrin v. Appling, where the Supreme Court will weigh in again on one of the most litigated issues in bankruptcy, says Thomas Byrne of Eversheds Sutherland.

  • How To Fix Your Broken Client Teams

    Mike O'Horo

    Law firms claim they create client teams to improve service. Clients aren’t fooled, describing these initiatives as “thinly veiled sales campaigns.” Until firms and client teams begin to apply a number of principles consistently, they will continue to fail and further erode clients’ trust, says legal industry coach Mike O’Horo.

  • Cook Inlet Decision Rightly Protects Deemed Consolidation

    Darren Azman

    The Alaska bankruptcy court's recent ruling in Cook Inlet Energy should give debtors confidence that consolidating for a limited purpose does not open them up to the liabilities associated with substantive consolidation. The ability to retain their preferred structure can have a profound impact on debtors, with far-reaching implications for financing and tax matters, say Darren Azman and Michael Galen of McDermott Will & Emery LLP.

  • The Bankruptcy Eligibility Of Quasi-Government Entities

    James Heiser

    In cases where a not-for-profit corporation is closely related to or controlled by a governmental unit, a creditor may challenge the corporation’s eligibility to file for bankruptcy. An Illinois bankruptcy judge's decision in Lombard Public Facilities is a reminder that eligibility is a fact-specific inquiry, say attorneys with Chapman and Cutler LLP.

  • How To Serve Your Blind Client Effectively

    Julia Satti Cosentino

    While a client’s visual impairment can create challenges for an attorney, it also can open up an opportunity for both attorney and client to learn from each other. By taking steps to better assist clients who are blind or visually impaired, attorneys can become more perceptive and effective advisers overall, say Julia Satti Cosentino and Nicholas Stabile of Nutter McClennen & Fish LLP.