Bankruptcy

  • May 15, 2017

    Garlock Seeks Court's OK For Latest Ch. 11 Plan

    Defunct Garlock Sealing Technologies LLC again asked a North Carolina bankruptcy court on Sunday for confirmation of its Chapter 11 plan, saying it’s finally resolved all but one objection to the latest plan after a seven-year-long tug of war with various stakeholders.

  • May 15, 2017

    Barclays Prevails As Justices Decline $143M Safe Harbor Case

    Barclays PLC will be able to keep $143 million it received from SemGroup a week before SemGroup’s bankruptcy, after the U.S. Supreme Court refused Monday to review a Second Circuit decision that went against the liquidation trustee.

  • May 15, 2017

    Central Grocers Reaches Terms On $100M Stalking Horse Bid

    Bankrupt retail grocery cooperative Central Grocers Inc. filed a motion over the weekend in Delaware seeking approval of bid procedures for a Chapter 11 auction, including a stalking horse bid for 19 of its grocery stores and their inventory valued at $100 million.

  • May 15, 2017

    Western Digital Wants Possible Toshiba JV Sale Arbitrated

    Several of Western Digital Corp.’s subsidiaries on Sunday accused Toshiba Corp. of wrongfully transferring the troubled Japanese company’s rights to three NAND flash memory joint ventures, calling on the ICC International Court of Arbitration to weigh in on the alleged contract violations.

  • May 15, 2017

    Justices Spare Collectors That Pursue Old Debt In Bankruptcy

    Debt collectors that knowingly pursue stale debt in bankruptcy proceedings do not run the risk of facing potential consumer protection lawsuits, the U.S. Supreme Court held Monday, overturning an Eleventh Circuit decision that put collectors on the hook for filing bad faith claims against a debtor.

  • May 12, 2017

    Creditor Escalates Fight For Ocean Rig Involuntary Reorg

    Highland Capital Management LP said Thursday it plans to aggressively pursue an involuntary-petition bid against Chapter 15-mired energy driller Ocean Rig UDW and will seek an appeal allowing the move, saying there is a “difficult question of first impression” in the balance.

  • May 12, 2017

    Software Co. In Nortel Ch. 11 Tries To Up $8M Claim To $81M

    A software firm that has been locked in combat with Nortel Networks for years pushed the Delaware bankruptcy court Friday to allow it to amend its $8 million claim upward to $81 million, a move the Nortel estate argues is simply a money grab.

  • May 12, 2017

    SunEdison Attacked For Insufficient Ch. 11 Plan Details

    SunEdison Inc.'s Chapter 11 exit continues to get more complicated, as bond issuers, groups of shareholders and others worried about losing several millions' worth of claims against the bankrupt solar energy giant complained late in the week that the disclosures in its restructuring proposal are egregiously light on important details.

  • May 12, 2017

    Constellation Hits Back At Ch. 11 Dismissal Deal Critics

    Metal components maker Constellation Enterprises LLC branded as “wildly inappropriate” Friday claims that its Chapter 11 dismissal and settlement plans clash with a recent U.S. Supreme Court ruling barring deals that dismiss cases to secure out-of-order asset distributions.

  • May 12, 2017

    MF Global Wary Of Insurer's Nixed Jurisdiction Challenge

    MF Global told a New York bankruptcy court on Friday that although Allied World has abruptly dropped its personal jurisdiction challenge to a coverage dispute, the insurer is likely to show similar inconsistencies, particularly if the case goes to arbitration in Bermuda.

  • May 12, 2017

    Trustee Will Oversee Bankrupt E-Cig Maker NJOY's Estate

    A Delaware bankruptcy judge on Thursday appointed a Chapter 11 trustee to oversee bankrupt e-cigarette maker NJOY Inc.’s estate after the company claimed it has no employees or directors permitted to make business decisions.

  • May 12, 2017

    Trustee Balks At Broad Releases In Newbury Ch. 11 Plan

    The federal bankruptcy watchdog objected late Thursday in Delaware to the proposed Chapter 11 plan of Newbury Common Associates LLC, citing nonconsensual releases granted to third parties regardless of certain creditors' decisions to not participate in the releases.

  • May 12, 2017

    Marsh Supermarkets Seeks Quick Del. Ch. 11 Sale Checkout

    Bankrupt Marsh Supermarkets Holding LLC started its move through a Chapter 11 express checkout Friday, securing a Delaware judge’s interim approval for an accelerated sale of its 44 best stores and interim support from a wholesale supplier crucial to the Indiana-based company’s plans.

  • May 12, 2017

    The Dewey Saga: From Collapse To Verdict

    Case closed — nearly. The five-year saga of Dewey & LeBoeuf LLP’s descent into bankruptcy and criminal prosecution is almost at an end after a jury on May 8 found the firm’s former Chief Financial Officer Joel Sanders guilty of felony fraud and misdemeanor conspiracy. Here, Law360 looks back at key moments from Dewey's downfall through this week's verdict.

  • May 12, 2017

    Paul Hastings Moves To Toss $5.3M Doral Trustee Suit

    Paul Hastings LLP fought back Friday against an attempt by the trustee of bankrupt Doral Financial Corp. to take back a $5.3 million payment made just before the bank entered Chapter 11, saying the complaint was too vague and was blocked by a settlement with financial regulators.

  • May 12, 2017

    Azerbaijan's Largest Bank Seeks Ch. 15 Amid Restructuring

    The International Bank of Azerbaijan, the country’s largest commercial lender, asked a New York bankruptcy court Thursday to provide the bank legal cover in the U.S. while IBA attempts to restructure $3.3 billion worth of debt after government-backed efforts failed to stabilize its finances.

  • May 12, 2017

    Property Cos. Slam Haggen Creditors' Aim To Block Expenses

    The companies holding the property that Haggen Holding LLC acquired in a 2014 merger hit back Thursday in Delaware bankruptcy court against claims they are violating a court order by using proceeds from real estate sales to defend against an adversary proceeding by the unsecured creditors, saying the order allows it and that the creditors are trying to undermine their defense.

  • May 12, 2017

    ATopTech Quells Sale Objections From Largest Creditor

    Bankrupt microchip firm ATopTech Inc. reached a settlement with its largest creditor and competitor to gain provisional court approval of its asset sale Friday in Delaware, resolving objections to the sale and related federal litigation.

  • May 11, 2017

    Creditor Wants To Break EFH's 'Vise' Grip On Ch. 11 Case

    One of the largest creditors in Energy Future Holdings Corp.'s case asked the Delaware bankruptcy court Thursday to clear a path for it to propose an alternative Chapter 11 plan after two exit attempts have hit roadblocks, arguing the power giant is trying to maintain "vise-like control" over the case.

  • May 11, 2017

    Merkin, Madoff Trustee Fire Back Over Trial Testimony

    Disgraced financier J. Ezra Merkin urged a New York bankruptcy judge to not let the trustee for Bernie Madoff’s fraudulent investment firm cripple Merkin's defenses at an upcoming trial to claw back Ponzi scheme proceeds, arguing Wednesday that certain testimony should not be barred.

Expert Analysis

  • Offshore Decommissioning Liability And Bankruptcy

    Edward Ripley

    It is more important than ever to prepare for disposal and environmental remediation of oil and gas infrastructure when it is no longer economically viable. But accounting for decommissioning obligations can turn into a game of “hot potato,” especially during bankruptcy proceedings. Edward Ripley and Eldy Roché of King & Spalding LLP discuss two important lessons regarding decommissioning liability of offshore installations.

  • Lateral Partner Hiring: Time To Look In The Mirror

    Howard Flack

    The surveys that report lateral partner hiring as more or less a 50-50 proposition keep being published, and yet the lateral partner market is as robust as ever. So, what are firms looking at to measure their success and justify the level of investment they continue to make in the lateral market? asks Howard Flack of Volta Talent Strategies LLC.

  • District Court Sabine Ruling: Bad News For Midstream Cos.

    Mark D. Sherrill

    The U.S. District Court for the Southern District of New York has affirmed that Sabine Oil & Gas Corporation can reject some gathering contracts with midstream energy companies, for lack of valid covenants running with the land. The ruling is another unfavorable result for midstream firms dealing with distressed oil and gas producers, say Mark Sherrill and Stephany Olsen LeGrand of Eversheds Sutherland (US) LLP.

  • A Big Haircut For Indenture Trustee Counsel Fees

    Karol K. Denniston

    A Delaware bankruptcy judge's recent decision in Nortel Network’s Chapter 11 case has several important takeaways for indenture trustees and their legal counsel that go well beyond the fee reductions an indenture trustee’s two law firms received, says Karol Denniston of Squire Patton Boggs LLP.

  • A Law Firm’s Guide To Social Media

    Julie Bagdikian

    Bear in mind that the internet seldom forgets and never forgives, and you are just one screen grab from a meme. A law firm's core messages and unique selling points must be clearly determined before embarking on a social media strategy, says Julie Bagdikian of The Pollack PR Marketing Group.

  • Defining 'Securities Claims' In D&O Policies

    Kevin LaCroix

    In a directors and officers insurance dispute spawned by Verizon’s spinoff of its electronic directories business, a Delaware court recently interpreted the definition of “securities claim” to include claims asserted under the common law. While Verizon was able to secure coverage in this case, it is in the best interests of policyholders to include an express reference to common-law claims in such definitions, says Kevin LaCroix of RT ProExec.

  • Why Shippers See Value In Cayman Special Purpose Vehicles

    Andy Randall IMG_0047.jpg

    The Hanjin Shipping bankruptcy, and big losses at a major shipping lender, point to a shipping market where traditional bank finance is increasingly hard to come by. Cayman Islands orphan special purpose vehicles offer an alternative for enforcement as well as for new leasing deals. Andy Randall and Edward Rhind of Walkers Global explain how these structures can add efficiency and value.

  • Hitting The Brakes On Structured Dismissals

    Ferve Ozturk.jpg

    The U.S. Supreme Court's decision in Czyzewski v. Jevic that a bankruptcy court lacks the power to approve a priority-violating structured dismissal may give unsecured priority wage holders, and particularly judgment creditors, a seat at the negotiating table together with secured and unsecured creditors committees, says Ferve Ozturk of BakerHostetler.

  • Are Your In-House Lawyers Happy?

    Aric Press

    What is the mood of the nation’s in-house lawyers? Aric Press — a partner at Bernero & Press LLC and former editor-in-chief of The American Lawyer — shares the findings of a recent survey of more than 800 in-house counsel.

  • Why Tribes Should Be Careful With Bankruptcy Practices

    Lynne B. Xerras

    In Casino Caribbean v. Money Centers last month, the U.S. Bankruptcy Court for the District of Delaware ruled that tribal sovereign immunity is not abrogated by Section 106 of the Bankruptcy Code. This decision makes it clear that many bankruptcy courts do not consider Native American tribes to be "governmental units," say attorneys with Holland & Knight LLP.