Bankruptcy

  • May 4, 2018

    GE Says Subprime Mortgage Unit May Face Ch. 11

    In a U.S. Securities Exchange Commission filing this week, General Electric Co. said its subprime mortgage unit may be heading into Chapter 11 if it is found liable in pending legal action over defective loans.

  • May 3, 2018

    Weinstein Accusers See 11th-Hour Deposition As Scare Tactic

    Accusers bringing sexual abuse allegations against Harvey Weinstein say a Wednesday-night notice by the Weinstein Co. in Delaware bankruptcy court for the handover of creditor communications regarding the Chapter 11 sale of the studio is meant to silence their support for a late bid that creates a fund for abuse victims.

  • May 3, 2018

    CFPB Beats Back Law Firms’ Bid To Chuck Illegal Fee Fight

    Three law firms and two attorneys can’t shake a Consumer Financial Protection Bureau suit claiming they charged millions of dollars in illegal up-front fees for debt relief services, a California federal judge said Thursday, finding many of those fees were collected within the three-year statute of limitations for enforcement actions.

  • May 3, 2018

    GM Trust Seeks OK For Ignition Switch Settlement

    The bankruptcy trust of Old GM Thursday asked for approval from a New York bankruptcy court for a settlement over legacy ignition switch lawsuits that could cost the reorganized New GM $1 billion in stock depending on what number the court puts to the remaining claims.

  • May 3, 2018

    Bankrupt Gun Seller Says It Was Felled By Trump's Election

    Ohio-based firearms distributor AcuSport Corp. filed for Chapter 11 bankruptcy this week, saying it has fallen on hard times ever since the 2016 presidential election because it increased inventory in mistaken anticipation that Hillary Clinton would win, causing a spike in demand.

  • May 3, 2018

    Relativity Media Re-Enters Ch. 11 With Asset Sale Plan

    Film studio Relativity Media LLC on Thursday re-entered Chapter 11 in a New York bankruptcy court with what it says is a plan to sell its assets to a joint venture.

  • May 3, 2018

    'Amityville Horror' Family Challenges Weinstein's Film Deal

    The family at the center of the notorious "Amityville Horror" house filed an adversary complaint Wednesday in the Delaware bankruptcy case of The Weinstein Co., saying the debtor didn’t meet film production milestones and forfeited the film rights to the family’s story.

  • May 2, 2018

    Gibson Brands' $135M DIP OK'd Over Fee, Roll-Up Concerns

    Bankrupt guitar and piano maker Gibson Brands Inc. received interim approval Wednesday in Delaware to access a portion of its $135 million debtor-in-possession financing package despite concerns over the fees associated with the lending and the roll-up of prepetition debt.

  • May 2, 2018

    NJ Justices Toughen Ethics Suspension For Bankruptcy Atty

    New Jersey’s highest court on Tuesday stripped an attorney of his law license for a year after he ignored bankruptcy court orders and caused more than $150,000 in losses to his clients, among other ethics violations, imposing a longer suspension than that recommended by a disciplinary panel.

  • May 2, 2018

    Remington's Ch. 11 Plan Confirmed With Trimmed Releases

    Gunmaker Remington Outdoor Co. LLC received court approval Wednesday from a Delaware bankruptcy judge for its Chapter 11 debt-for-equity swap plan after objections from the U.S. trustee and the U.S. Securities and Exchange Commission were sustained, requiring the company to eliminate its employees from release provisions.

  • May 2, 2018

    ICSID Won't Revive Aluminum Plant Claim Against Montenegro

    An International Centre for Settlement of Investment Disputes committee on Tuesday refused to revive a Cypriot company's claim accusing Montenegro of impeding efforts to restructure and modernize a bankrupt aluminum plant.

  • May 2, 2018

    Union, Bankruptcy Trustee Fight Grocer's Executive Bonuses

    The U.S. Trustee's office and the Teamsters union on Tuesday told a New York bankruptcy court that a proposed $7.1 million employee bonus proposal in Tops Markets LLC's Chapter 11 plan would award hefty bonuses to the supermarket chain's top executives for simply doing their jobs.

  • May 2, 2018

    Conn. Firm Shakes Lender Suit Over $12M Loan Opinion Letter

    An opinion letter prepared by Connecticut transaction boutique Berkowitz Trager & Trager for a $12 million loan that went south for the lender didn't create a contractual obligation the firm could breach, a federal judge said Tuesday in an order dismissing a malpractice suit against the firm.

  • May 2, 2018

    How Weil Gotshal Drove Takata Through Complex Bankruptcy

    A group of attorneys at Weil Gotshal & Manges LLP say they can finally get some rest after laboring for years on the restructuring and sale of Japanese auto parts maker Takata — a legal undertaking they say was one of the most complex but gratifying experiences of their careers.

  • May 2, 2018

    Cambridge Analytica Files For Bankruptcy After Data Scandal

    Cambridge Analytica LLC, the political data and consulting firm hired by President Donald Trump's 2016 presidential campaign that is now tied to a Facebook data-harvesting scandal, announced Wednesday that it has filed for insolvency and will be shutting its doors.

  • May 1, 2018

    Woodbridge Strikes Deal With SEC To Defer Ponzi Penalties

    Bankrupt real estate holding firm The Woodbridge Group LLC told a Delaware judge Tuesday that it had reached a deal to bifurcate a securities action brought by the U.S. Securities and Exchange Commission in Florida federal court that will allow the deferment of any penalties associated with a Ponzi scheme allegedly perpetrated by the founder of the debtors.

  • May 1, 2018

    Deals Rumor Mill: Weinstein, Essential Properties, SoftBank

    The Weinstein Co. is reportedly facing competing offers from a private equity firm and a producer, Essential Properties Realty Trust is eyeing an initial public offering, and SoftBank subsidiary Arm Holdings plans to give up control of its Chinese operations.

  • May 1, 2018

    Real Industry May Drop Some Plan Releases To Get Ch. 11 OK

    Bankrupt metal recycling company Real Industry Inc. told a Delaware bankruptcy judge Tuesday that it would seek permission from its directors to drop third-party releases from its proposed Chapter 11 plan to resolve objections from some parties and pave the way for confirmation.

  • May 1, 2018

    Accusers Favor New Weinstein Co. Bid With $30M Victim Fund

    The Weinstein Co.’s stalking horse bidder may be facing a late challenge to its $210 million bid for the bankrupt production company’s assets in Delaware bankruptcy court following a new bid Tuesday, according to a group of plaintiffs in the sexual harassment putative class action against the company and founder Harvey Weinstein.

  • May 1, 2018

    Cumulus Set To Exit Ch. 11 After Beating Plan Objections

    Broadcast radio giant Cumulus Media Inc. is on its way out of Chapter 11 bankruptcy Tuesday after defeating arguments over the value of the company and receiving New York bankruptcy court approval to undertake a restructuring plan that will pass a large majority of ownership to its secured lenders.

Expert Analysis

  • In Lakeridge, Concurring Justices Take The Spotlight

    Steven Wilamowsky

    The U.S. Supreme Court last week held in Village at Lakeridge that the appropriate standard for determining nonstatutory insider status in bankruptcy is the clearly erroneous standard that was applied by the Ninth Circuit. But the concurring opinions, which address an issue that was not before the court, appear to be more significant, say Steven Wilamowsky and Aaron Krieger of Chapman and Cutler LLP.

  • Opinion

    Grassley, Feinstein Debate Judicial Vetting, Obstruction

    Sen. Chuck Grassley

    It is undisputed that in his first year in office President Trump was able to confirm a significant number of judges to the federal bench. How it happened — and whether it's a good thing — are debated here by Sen. Chuck Grassley, R-Iowa, and Sen. Dianne Feinstein, D-Calif.

  • A Potential Shift On Education Debt Discharge Standards

    Amir Shachmurove

    To its detractors, the so-called Brunner test, which is used to establish the dischargeability of student loan debts, stands out like a sore thumb. However, in an unexpected move, the U.S. Department of Education recently published a memo calling for comments that hinted it might be considering eliminating or modifying this standard, say attorneys with Troutman Sanders LLP.

  • Investing In Ground-Leased Or Net-Leased Real Estate

    Tzvi Rokeach

    When crafting a ground lease or any other form of triple net lease, special attention should be paid to the tensions that arise as a result of both tenant and landlord seeking to finance their respective positions, says Tzvi Rokeach of Kramer Levin Naftalis & Frankel LLP.

  • 10 Tips For Working With IT To Preserve Data

    John Tredennick

    Increasingly, when courts impose a “legal hold” they require legal supervision of the preservation process, meaning lawyers must rely heavily on information technology professionals to execute the mechanics. John Tredennick of Catalyst Repository Systems and Alon Israely of TotalDiscovery offer insights on how legal and IT can work together to make the process more efficient and fulfill the company’s legal obligations.

  • High Court Ruling In FTI Consulting Makes Eminent Sense

    Charles Tabb

    Before the U.S. Supreme Court's decision in Merit Management v. FTI Consulting last week, almost any corporate debtor could file in New York or Delaware and, in structuring a securities buyout, plan to close in escrow through a financial institution and be certain that the buyout was unavoidable. No more, says Charles Tabb of Foley & Lardner LLP.

  • A Powerful Tool For Tracing Foreign Assets In US

    Rick Antonoff

    Foreign representatives have long used Chapter 15 discovery to investigate whether a foreign debtor has assets in the U.S. But two recent cases in New York involving Russian debtors demonstrate the value of Chapter 15 for uncovering assets that were fraudulently transferred, say Rick Antonoff and Evan Zucker of Blank Rome LLP. 

  • Protecting Privilege In Litigation Financing Negotiations

    Eric Robinson

    Multiple courts have held that discoverable material from negotiations with a litigation funder, when executed properly, can be attorney work product and immune from disclosure in the later litigation. The recent Acceleration Bay decision is indicative of what happens when difficult facts conflict with best practices, says Eric Robinson of Stevens & Lee PC.

  • Lessons Learned From The Oil Patch Blues

    Tom Howley

    Now that crude oil prices appear to have stabilized, previously restructured oil and gas companies are once again looking to increase production and expand their asset bases. Bankruptcy created a competitive advantage for many reorganized entities, while companies that did not file are still in damage control, say attorneys with Jones Day.

  • Why Machine Learning Should Matter To Lawyers

    Dan Puterbaugh

    Legal leaders who want to meet their clients' expanding expectations should start moving their documents to future-ready document management solutions now if they want to stay competitive in the next few years, says Dan Puterbaugh of Adobe Systems Inc.