The federal judge presiding over Puerto Rico’s restructuring cases Tuesday told a group of commonwealth bondholders she doesn’t have the authority to force the island’s government to put hundreds of millions in special revenues toward paying off their notes.
Beus Gilbert PLLC won court approval Wednesday for $88.03 million in fees after an 11-year pursuit of a bankruptcy trustee’s claims against billionaire industrialist Ira Rennert and his RenCo Group Inc. for allegedly plundering bankrupt subsidiary Magnesium Corp. — and the ultimate win of a $214.7 million judgment.
The Office of the U.S. Trustee objected Wednesday to confirmation of Takata Holdings Inc.’s Delaware Chapter 11 plan, citing sweeping, and potentially improper liability releases for third parties, including automaker officers and directors, without third party or creditor consent.
Great Lakes freight shipping company Rand Logistics Inc. on Wednesday received court approval in Delaware for a fast-tracked schedule in its nascent Chapter 11 case that will see its prepackaged equitization plan up for confirmation in less than a month.
Insurance services company Patriot National Inc. on Tuesday filed for Chapter 11 protection in Delaware, blaming its financial woes on the loss of its biggest customer to receivership in Florida, with a strategy in hand to rework its balance sheet through a debt-for-equity swap with its lenders.
In a grand bargain covering some attorney fees for its commercial landlords, Toys R Us Inc. bought more time to decide which store leases it wants to reject in bankruptcy, creating what some experts say could be a practical template for other large retailers abruptly forced into filing for Chapter 11.
Former Dewey & LeBoeuf LLP executive director Stephen DiCarmine has reached a settlement in principle with the U.S. Securities and Exchange Commission over fraud claims, his attorney said Tuesday in a letter asking a Manhattan federal judge to stay the SEC’s case while both sides work out the deal’s details.
Television advertising product company Ensequence Inc. filed for Chapter 11 protection Tuesday in Delaware after losing one of its largest clients and defaulting on its secured debt.
Claims from a pair of Chapter 11 adversary complaints accusing two failed Anguillan banks and a Caribbean regulator of illegally transferring millions deposited by customers at subsidiary offshore banks should first be heard in the British territory of Anguilla, two New York bankruptcy judges ruled Monday, citing jurisdictional deference.
Women's shoe maker Aerogroup International Inc. told a Delaware bankruptcy judge Tuesday that hopes for the confirmation of its Chapter 11 plan have dimmed and it is instead pursuing a sale and auction plan for its assets on a shortened schedule.
A New York bankruptcy judge Tuesday gave a whistleblower accusing cancer treatment chain 21st Century Oncology of charging a Florida health system for services under a dirty contract a month to convince him not to dismiss the claim for failing to connect the chain to the wrongdoing.
Sinking under $236 million in debt, Great Lakes bulk freight-mover Rand Logistics Inc. opened a sale-focused, prepackaged Chapter 11 in Delaware bankruptcy court early Tuesday, aiming to complete a debt-for-equity deal with an affiliate of private equity American Industrial Partners by March 16.
Reinsurance firm Scottish Holdings Inc. filed for Chapter 11 protection late Sunday in Delaware with a plan to sell its equity free and clear of more than $30 million in interest liabilities the company says it won't be able to pay.
Takata pushed the Delaware bankruptcy court on Monday to rule that potentially $1 billion in claims stemming from enforcement actions by Hawaii, New Mexico and the U.S. Virgin Islands would be discharged by a Chapter 11 plan confirmation, a notion the states argued would make bankruptcy "a haven for wrongdoers."
Puerto Rico’s financial overseers Saturday asked a federal court to let the island’s beleaguered electric utility take a $1.3 billion line of credit with the territory’s government to keep the island’s lights on past the middle of next month.
A former Lehman Brothers employee wants another chance to prove she was fired and harassed for trying to blow the whistle on the company's prebankruptcy conduct, telling the First Circuit that a lower court was wrong to dismiss her suit on narrow procedural grounds.
Climate change issues are beginning to make an appearance in corporate bankruptcy cases, with companies citing environmental regulatory obligations and unusual weather events as contributors to their predicaments, and the frequency of such cases is expected to accelerate with smaller regional business suffering the most at first, experts say.
Sidley Austin LLP said Monday it has bolstered its Houston office with the hiring of a former Bracewell LLP environmental partner experienced in regulatory matters and energy-related transactions.
Bankrupt cancer treatment chain 21st Century Oncology on Friday again asked a New York bankruptcy court to dismiss a whistleblower claim that it falsely charged a Florida health system for services under a dirty contract, saying the whistleblower still hasn’t made his case.
Macaroni Grill's unsecured creditors asked a Delaware judge late Friday to let the committee go around official Chapter 11 debtors and go after assets locked up by disputed liens and prepetition financing agreements, potentially increasing the group’s recoveries by $8 million or more.
Millennials are now the largest living generation and comprise one-third of jurors. While it is impossible to generalize a group so large and diverse, trial lawyers should be mindful of certain generational differences, say baby boomer Lee Hollis and millennial Zachary Martin of Lightfoot Franklin & White LLC.
When a borrower finds itself in a distressed situation, management or private equity sponsors will often identify valuable assets to isolate them from the distressed company, often to the detriment of certain creditors. A recent example involving Algeco Scotsman offers important takeaways for issuers as well as bondholders, say Adam Summers and Corey Fersel of Fried Frank Harris Shriver & Jacobson LLP.
Judicial estoppel is often used to dismiss product liability actions when a plaintiff failed to disclose potential claims during a prior bankruptcy proceeding. While state laws may rule out judicial estoppel defenses in certain multidistrict litigation courts, asserting the defense even where it is unlikely to prevail preserves the issue for appellate review, say Chad Eggspuehler and Melissa Kelly of Tucker Ellis LLP.
At least five circuit courts have taken a sensible approach to allowing an undersecured creditor’s claim for legal fees. But there is still no uniformity in the lower courts, as evident in a North Carolina federal court's recent decision in Summitbridge v. Faison, says Michael Cook of Schulte Roth & Zabel LLP.
When Cumulus Media filed for Chapter 11 protection last week, its market capitalization fell to under $3 million, but $3 million is still greater than zero. Was Cumulus solvent when it filed bankruptcy? The answer is almost surely no, and it is important that lawyers have a good understanding of the reasons why, says attorney J.B. Heaton.
To a secured creditor, a borrower filing for Chapter 11 protection can present a daunting proposition — from digesting the schedules and first-day motions and tracking the many deadlines to developing and implementing a strategy to maximize potential recovery. Stephanie Lieb of Trenam Law provides a map to help creditors traverse the process and emerge as unscathed as possible.
In a recent study, 20 out of 25 law firms surveyed have made billing process improvement a top priority for 2018. Firms can foster consistency and increase efficiency at all stages of their billing cycle by focusing on a few specific procedures, say Sharon Quaintance and Christine Indiano at HBR Consulting.
The Fifth Circuit is among the busiest federal circuit courts in the country. What can you do to increase your chances of reaching oral argument? And if given the opportunity, how can you present a persuasive argument? Former Fifth Circuit clerk Justin Woodard, an associate at Jones Walker LLP, shares some advice.
Having just completed a six-year term as chair of the U.S. Sentencing Commission, I read Yale Law School professor James Forman's new book, "Locking Up Our Own: Crime and Punishment in Black America," with particular interest, says Judge Patti Saris, chief judge for the U.S. District Court for the District of Massachusetts.
Changes to the federal bankruptcy rules taking effect on Dec. 1 will likely result in Chapter 13 and other cases moving more swiftly toward confirmation, but this efficiency could be at the expense of preoccupied or otherwise lackadaisical creditors, say attorneys with Troutman Sanders LLP.