Incarcerated former hedge fund boss Stephen Maiden took the witness stand Wednesday in the stock fraud trial of ex-KIT Digital Inc. CEO Kaleil Isaza Tuzman, as well as film and tech entrepreneur Omar Amanat, and described the trio's scheme to prop up the video technology company's stock price.
Hill Wallack LLP bolstered its Yardley, Pennsylvania, office with the recent additions of a partner in its trusts and estates group and three associates in its trial and insurance defense, employment and labor law, and creditors’ rights and bankruptcy practices, the firm announced Monday.
Missouri-based thermal coal producer Armstrong Energy Inc. filed for bankruptcy on Wednesday to facilitate the sale of the company to a group of creditors and a coal mining competitor, blaming its decline on debt obligations in excess of $100 million and external pressures on the industry at large.
A Florida federal judge on Wednesday granted final approval for $741 million in settlements reached by Toyota, BMW, Subaru and Mazda to resolve consumer class actions over dangerously defective Takata Corp. air bags, including an award of $166 million in attorneys’ fees for class counsel.
The unsecured claimholders in Westinghouse Electric Co.’s bankruptcy case asked for permission to intervene in a putative class action claiming the company fired workers without notice on Wednesday, saying they need to act to protect their interests.
NextEra Inc. urged the Delaware bankruptcy court late Monday not to confirm Energy Future Holdings Corp.’s Chapter 11 plan unless $275 million is held back to cover the breakup fee connected to NextEra’s failed sale deal while the former suitor appeals the court’s rejection of the payment.
A Delaware bankruptcy judge on Tuesday reluctantly scheduled a December hearing in the long-running and complex fight between Exide Technologies Inc. and California air regulators over environmental claims, but strongly urged the sides to continue negotiating after learning that mediation came close to resolving the issue.
Two former executives of bankrupt ITT Educational Services Inc., citing “broad, overreaching theories — often, based on pure speculation,” filed a motion on Tuesday in Indiana federal court seeking to narrow the scope of fraud allegations brought against them by the U.S. Securities and Exchange Commission.
Second-lien lenders of bankrupt power station owner La Paloma Generating Co. LLC objected Tuesday in Delaware to a motion from senior lenders to enforce a prepetition intercreditor agreement and direct plan distributions to them.
The federal board charged with shoring up Puerto Rico’s finances and restructuring its debts said Tuesday that a revised fiscal recovery plan will be put together over the coming months to account for a new reality in the wake of widespread devastation caused by Hurricane Maria.
Nutrition supplement chain Vitamin World put off a final approval ruling on its $25 million bankruptcy loan for a third time Tuesday, prompting a caution from lender agent Wells Fargo that a default, and tough decisions, are imminent.
Attorneys for MF Global Holdings Ltd. will be spending their winter in the North Atlantic after a New York federal court on Monday denied the defunct brokerage’s bid to undo a bankruptcy court order that sent a coverage dispute with Allied World to the insurer’s home country of Bermuda for arbitration.
Telecom giant Avaya Inc. received clearance Tuesday from a New York bankruptcy judge to begin soliciting creditor votes on an updated Chapter 11 reorganization plan that came together with input from groups of creditors during court-ordered mediation.
Global plastics resin supplier M&G USA Corp. on Tuesday disclosed the full scope of an earlier-launched Delaware Chapter 11, reporting $1.7 billion in debt owed by a dozen companies and seeking a $100 million debtor-in-possession loan in part to finance a sale of most assets.
At oral arguments Tuesday, the U.S. Supreme Court wrestled with a narrow legal question that may determine the fate of Chapter 11 cramdown plans around the country: how should appellate courts review a bankruptcy judge’s finding that a creditor is prohibited from voting on the plan?
The Chapter 11 plan of bankrupt power station owner La Paloma Generating Co. LLC received court approval Monday in Delaware over the objection of junior creditors who claimed the plan and a settlement with senior creditors were unfair.
A Delaware bankruptcy judge agreed to give the final OK on Monday to specialty papermaker Appvion Inc.'s roughly $325 million post-petition financing facility after several tweaks to the loan resolved objections from the official committee of unsecured creditors.
The fraud trial of the former CEO of KIT Digital Inc. and an entrepreneur and investor accused of mismanaging millions of dollars in investments from the troubled video technology startup began on Monday in Manhattan, with the prosecution claiming the two men spun an extensive web of lies to cover up their misdeeds.
Morrison & Foerster LLP on Monday resolved its fee dispute with bankrupt rooftop solar firm Sungevity Inc.’s buyer and post-petition lender, agreeing to reduce its bid by $25,000 and clearing the way for its total request of about $2.5 million for the roughly six-month-long case.
The U.S. Supreme Court on Tuesday will wrestle with what standard appellate courts should use to review the factual findings of a bankruptcy court when determining certain insider relationships of creditors to a debtor, with practitioners hoping the justices will bring long-needed clarity.
For as long as e-discovery lawyers have been using technology assisted review, a belief has persisted that it cannot be used economically or effectively in small cases. But TAR can be highly effective in small cases, typically reducing the time and cost of a review project by 60 to 80 percent, say John Tredennick, Thomas Gricks III and Andrew Bye of Catalyst Repository Systems LLC.
The Sedona Conference Working Group's updated Sedona Principles provides a timely reminder that the legal industry needs to be thinking more seriously about the interconnectedness between e-discovery and information governance, says Saffa Sleet of FTI Consulting Inc.
Albert Einstein famously said, “The definition of insanity is doing the same thing over and over again, but expecting different results.” That maxim applies to large companies that seek more value and diversity from their outside counsel by expecting big firms to change. There’s a simple solution to this problem, according to attorneys Margaret Cassidy, Sara Kropf and Ellen D. Marcus.
While most of the Financial CHOICE Act focuses on financial regulations imposed by Dodd-Frank and other federal legislation, portions of the act would have a significant impact on U.S. Securities and Exchange Commission enforcement actions, say attorneys with Paul Hastings LLP.
The Consumer Financial Protection Bureau’s use of its abusiveness authority to attack Aequitas Capital Management’s willingness to acquire loans with high risks of default certainly makes one wonder about the downside risks of the CFPB’s foray into the capital markets, say attorneys with Mayer Brown LLP.
Toys R Us recently filed for Chapter 11 bankruptcy, citing the impact of e-commerce as a major factor. Other recent retail bankruptcies underscore how difficult it is for retailers to recover from a bankruptcy filing, and creditors must be prepared, says Stephen Selbst of Herrick Feinstein LLP.
Payment collection delays have caused law firms to seek new options, one of which is litigation finance. In this context, litigation finance can offer alternative avenues to firms as they approach the end of a fiscal year or partnership distribution dates, says Travis Lenkner of Burford Capital LLC.
Imagine going to a restaurant and ordering your steak medium-rare. The steak arrives burned. You expect the kitchen to bring you another one properly done, right? And you don’t expect to pay for two steaks, do you? Paying a vendor for document review should be no different, says Lisa Prowse, an attorney and vice president at e-discovery firm BIA Inc.
Investors frequently talk about trying to find the next unicorn, that small startup company that is going to turn into a billion-dollar valuation. The New Jersey district court's recent decision in PNC Bank v. Star Group offers debtors counsel hope that a unicorn has finally arrived in the lender liability context, says Jerry Blanchard of Bryan Cave LLP.
The demise of Korea’s Hanjin Shipping Co. Ltd. was the largest bankruptcy of a container line in history, and recently resulted in the biggest ever court sale of ships in Hong Kong, totaling over $600 million. Hong Kong’s legal system makes it an ideal venue for ship mortgage enforcement, say attorneys with Mayer Brown JSM.