Bankruptcy

  • July 10, 2017

    No Injunction For You, Del. Judge Tells Soupman

    The Original Soupman Inc. lost a bid in Delaware to prevent a group of shareholders from pursuing a reconstitution of the company’s board through a written consent campaign, with a bankruptcy judge finding Monday that the investors are not abusing their rights as equity holders.

  • July 10, 2017

    Fyre Festival Hit With Involuntary Bankruptcy Petition

    A trio of investors hit Fyre Festival LLC on Friday with a petition to drag the ill-fated events company into involuntary Chapter 7 bankruptcy, in the latest suit seeking to recoup money lost on the “luxury” music festival that spiraled into an utter debacle.

  • July 10, 2017

    Judge Taps Harvard Prof As Overseer Of $1B Takata Fund

    Harvard Law School professor and longtime mediator Eric D. Green has been chosen to serve as special master overseeing the handling of a nearly $1 billion restitution fund in the criminal lawsuit over Takata’s potentially deadly air bag inflators, a Michigan federal judge said Monday.

  • July 10, 2017

    Alleged Ponzi Schemer Barred From Selling US Open Tickets

    A New York bankruptcy judge on Friday temporarily barred the indicted former head of a defunct ticket reseller and his father from selling nearly 300 tickets for this year’s U.S. Open Tennis Championships as the company seeks to wrest control of the tickets away from the pair.  

  • July 10, 2017

    Unilife Committee Atty Withdraws To Save Firm's Retention

    A proposed attorney for the unsecured creditors committee of medical device maker Unilife Corp. said he would withdraw from the role Monday in Delaware to alleviate concerns over his prior work for a creditor of the company.

  • July 10, 2017

    Westinghouse Creditors Skeptical Of Milbank Hire For Board

    Unsecured creditors of Westinghouse Electric Co. LLC told a New York bankruptcy court Monday that they had reservations about the company’s request to hire Milbank Tweed Hadley & McCloy LLP as counsel to a “special committee” of the board of directors in the Chapter 11 case.

  • July 10, 2017

    Teachers Sue Puerto Rico Over Fiscal Plan Budget Reductions

    An organization representing professors for the University of Puerto Rico filed a complaint Sunday against the commonwealth and the federally appointed board overseeing the island's debilitating debt crisis, saying a fiscal plan approved earlier this year that cuts the university's budget by $200 million is illegal.

  • July 10, 2017

    Elliott Says It's Considering $9.3B Offer For Oncor

    Elliott Management Corp., the largest creditor of the bankrupt parent of Oncor Electric Delivery Co., has reportedly said it is in the process of making a $9.3 billion offer for the Texas utility, potentially topping a $9.1 billion offer from Warren Buffet's Berkshire Hathaway.

  • July 10, 2017

    Takata Ch. 11 Tort Committee Has Tough Road Ahead

    An official committee in the Takata Chapter 11 that includes personal injury victims is a crucial way to ensure those claimants' rights, but it will be a tough journey through a difficult and delicate bankruptcy where there may not be enough money to go around, experts say.

  • July 7, 2017

    9th Circ. Says Criminal Restitution Trumps Bankruptcy Stay

    The Ninth Circuit joined two other federal appeals courts on Friday when it ruled that the bankruptcy code's automatic pause on litigation after a petition is filed does not apply to attempts to collect restitution in criminal cases under the Mandatory Victims Restitution Act.

  • July 7, 2017

    Soupman Defends DIP Loan, Sale Plan From Secured Lender

    The Original Soupman Inc. defended its $2 million debtor-in-possession loan and an auction plan that envisions a September sale against objections from its secured lender Friday in Delaware, saying the fees associated with the loan and the marketing time for the sale are appropriate.

  • July 7, 2017

    Investor Says Fla. Homebuilders Scammed Him Out Of $4.5M

    An investor levied a slew of accusations Friday against Miami-based Legacy Home Builders, accusing the company, its principals and their attorney of selling unregistered securities and bilking him out of $4.5 million that he invested with them for several development projects, plus promised returns.

  • July 7, 2017

    Joe's Crab Shack Auction OK'd, With KRG As Stalking Horse

    A Texas bankruptcy judge on Thursday approved the Chapter 11 sale plan of the parent company of Joe's Crab Shack, featuring a $50 million stalking horse bid by KRG Acquisitions Co. LLC and a $55 million overbid by Landry's Inc.

  • July 7, 2017

    Taxation With Representation: Kirkland, Gibson, Goodwin

    In this week’s Taxation With Representation, Berkshire Hathaway Energy prepares to acquire bankrupt EFH for $9 billion, the parent of television giant QVC agrees to an approximately $2.1 billion takeover of the company behind Home Shopping Network, and the marketing firm Red Ventures plans to buy Bankrate Inc. for about $1.4 billion.

  • July 7, 2017

    City Of Hartford Hires Greenberg Traurig Restructuring Team

    The city of Hartford, Connecticut, announced Thursday it has hired attorneys from Greenberg Traurig LLP to help evaluate restructuring options, which could include bankruptcy, while it struggles to patch a $50 million budget deficit in a state facing its own budget crisis.

  • July 7, 2017

    Gawker's Probe Of Thiel Keeps Harsh Light On Legal Funders

    A court order allowing Gawker to probe billionaire Peter Thiel’s dealings with the firm behind a massive verdict that drove the company into bankruptcy may yield little ammunition for the estate’s administrator, but the decision should stir anxiety among traditional litigation funders over its potential to inspire similar rulings or new disclosure requirements, experts said.

  • July 7, 2017

    MF Global Insurer Fights Default Bid Over $15M Bond Payment

    Defunct brokerage MF Global's excess insurer Allied World on Thursday hit back at MF Global’s request for a New York bankruptcy court to strike Allied World’s $15 million bond, which a judge had required before the court could consider the insurer's request to arbitrate a coverage dispute in Bermuda.

  • July 7, 2017

    Maxus, Creditors Bash Objection To Property Sale

    Maxus Energy Corp. and its unsecured creditors voiced their support Friday in Delaware bankruptcy court for a proposed post-confirmation sale of property over the objection of a developer that holds a ground lease for the tract of land in Ohio, saying the debtor has the right to sell the land and end the lease.

  • July 7, 2017

    Sports Authority Objects To Google's $1.4M Claims

    Sports Authority Holdings Inc. on Thursday asked the Delaware bankruptcy court to trim an approximately $1.4 million advertising bill from Google, saying it had provided insufficient evidence the charges are reasonable.

  • July 7, 2017

    Bias Claims Take Priority In Aeropostale Ch. 11: Creditor

    An individual creditor in Aeropostale Holdings Inc.’s Chapter 11 bankruptcy proceedings wants the U.S. bankruptcy court to keep her pending $300,000 sexual harassment and retaliation claims against the company classified as an administrative expense, saying that employment discrimination claims lodged against an insolvent during bankruptcy take priority over unsecured creditors.

Expert Analysis

  • A Look At Credit Agreements In Insurance: Part 2

    Excerpt from Lexis Practice Advisor
    Daniel Rabinowitz

    Using the same standard credit agreement provisions for all types of borrowers and guarantors hurts both borrowers and lenders. This is especially true of borrowers and loan parties subject to insurance regulations and market conditions, say Daniel Rabinowitz and David Berg in the final part of this article.

  • A Look At Credit Agreements In Insurance: Part 1

    Excerpt from Lexis Practice Advisor
    Daniel Rabinowitz

    Insurance companies and insurance holding companies are subject to a complicated tangle of laws, regulations and market conditions, and therefore need special provisions in their credit agreements. Certain representations and warranties, conditions, and events of default must be modified to account for such borrowers, say Daniel Rabinowitz and David Berg of Kramer Levin Naftalis & Frankel LLP.

  • Sunnyslope Has Important Ramifications For Secured Lenders

    Michael Pankow

    The Ninth Circuit’s opinion may not be the last word in the matter of Sunnyslope Housing Limited Partnership, as the dissent implicitly urged U.S. Supreme Court review. In the meantime, the ruling is binding within the Ninth Circuit and will be persuasive precedent in other jurisdictions, say Samuel Kidder and Michael Pankow of Brownstein Hyatt Farber Schreck LLP.

  • Weekly Column

    Innovating For Wise Juries: Setting Trial Time Limits

    Stephen Susman

    This is the second in a series of articles discussing ideas proposed by the NYU School of Law Civil Jury Project to resuscitate the American jury trial. In this article, Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman argue for setting early and strict time limits in civil jury trials.

  • Opinion

    Big Business Lobby Tries To Hobble Litigation Finance, Again

    Allison Chock

    In its most recent petition advocating mandatory disclosure of litigation finance, the U.S. Chamber of Commerce simply rehashes the same arguments from its previous failed efforts to convince the Committee on Rules of Practice and Procedure of the dire implications of undisclosed funding relationships, say members of IMF Bentham Ltd.

  • A Slice Of MFN With That Incremental Loan

    Daniel Winick

    With ever expanding bargaining leverage, borrowers are negotiating creative ways to minimize "most-favored nation" provisions and related incremental loan protections. Clifford Chance LLP attorneys Daniel Winick and Andrew Young discuss some of the key MFN exceptions borrowers have been pursuing of late.

  • New Wave Of Lehman Litigation Appears To Be Imminent

    Philip Stein

    Thousands of mortgage lenders across the country either recently received, or will soon be receiving, from Lehman Brothers Holdings Inc. a document that may seem innocuous but likely presages a future lawsuit by LBHI against the recipient, says Philip Stein of Bilzin Sumberg Baena Price & Axelrod LLP.

  • When Is A Working Capital Agreement A Loan? It Depends

    Benjamin Jackson

    Drafters of working capital agreements should be aware that there is now at least one court ruling holding that if the terms of a working capital agreement resemble those of a loan agreement, then it will likely be treated as such regardless of what the agreement calls itself, say Benjamin Jackson and Muhammad Faridi of Patterson Belknap Webb & Tyler LLP.

  • How Bankruptcy Affects Payment Stream Assignments

    Stephen Proctor

    The Sixth Circuit recently decided the fate of a stream of rental payments from the bankrupt owner of a residential complex in the case of Town Center Flats. Although not referenced in Town Center, it is possible that the 1993 discredited Octagon Gas case influenced the result, says Stephen Proctor of Masuda Funai Eifert & Mitchell Ltd.

  • Series

    The Return Of Attorney-Conducted Voir Dire

    Stephen Susman

    If we truly believe in providing litigants with a jury of one’s peers, we must adopt strategies to ensure that parties and their representatives have a say in selecting their jury. When only judges participate, the result is a less representative and less fair cross section of the community, say Stephen Susman, Richard Jolly and Roy Futterman of NYU School of Law's Civil Jury Project.