Bankruptcy

  • January 26, 2018

    GST AutoLeather Nears Deal On DIP Funding And Sale Plans

    Bankrupt vehicle upholstery maker GST AutoLeather Inc. told a Delaware judge Friday that issues over its post-petition funding and plans to sell off its assets had been largely resolved after an aborted attempt at gaining approval for the sale last week.

  • January 26, 2018

    IRS Beats Class Claims That Agency Can't Tax Late Filers

    A California federal judge said Friday that he would end a proposed class action alleging the agency lacks the authority to assess taxes on some late-filed tax forms, finding the suit’s named plaintiff couldn’t point to imminent or concrete harm and didn’t have standing to sue.

  • January 26, 2018

    Judge OKs Cobalt's $500M Pact With Sonangol For Oil Blocks

    A Texas bankruptcy judge greenlit a deal under which Angolan state-owned oil company Sonangol EP will pay $500 million to take over Cobalt International Energy Inc.’s interests in a pair of offshore drilling blocks, resolving arbitration in which Cobalt was seeking more than $2 billion.

  • January 26, 2018

    Bancomext Wants $550M In Pre-Ch. 11 M&G Transfers Probed

    Mexico’s development bank has asked the Delaware judge handling M&G USA Corp.’s Chapter 11 to authorize an examination of transfers between nondebtor affiliate sites in Mexico and M&G’s bankrupt businesses, saying as much as $550 million might have gone to debtor companies improperly.

  • January 26, 2018

    Boston Herald Unions Fight To Keep CBAs Ahead Of Sale

    Four unions representing various employees at the bankrupt Boston Herald have objected to the debtor's bid to kill their collective bargaining agreements ahead of a two-bidder sale process in Delaware bankruptcy court, calling the request one-sided, unfair and premature.

  • January 26, 2018

    7 Cos. To Price IPOs Exceeding $3.4B Led By Gaming REIT

    Eight firms are set to guide seven companies projected to raise more than $3.4 billion through initial public offerings during the week of Jan. 29, led by an estimated $1 billion initial public offering from a real estate investment trust formed by Caesars Entertainment Corp.’s emergence from bankruptcy.

  • January 25, 2018

    Aeropostale Ch. 11 Judge Mulling Release Consent 'Opt In'

    The New York bankruptcy judge presiding over Aeropostale’s Chapter 11 case said Thursday that the teen fashion retailer can soon begin soliciting votes on its debt restructuring plan, but non-voting creditors and shareholders may have to opt in to proposed third-party litigation releases to consent to those provisions.

  • January 25, 2018

    Puerto Rico's New 5-Year Plan Excludes Debt Payments

    The government of Puerto Rico will seemingly lack the funds to pay off its choking level of debt over the next five years, according to revised fiscal plans unveiled late Wednesday predicting a $3.4 billion budget deficit through fiscal 2022.

  • January 25, 2018

    Lyondell Trustee Can’t Recover $300M Payment To PE Mogul

    A New York federal judge on Wednesday found the trustee of bankrupt Lyondell Chemical Co. can’t claw back $300 million in credit line repayments from private equity mogul Leonard Blavatnik but can bump its breach of contract damages from $8 million to $12 million.

  • January 25, 2018

    Ex-Lehman Workers Can't Cash In Restricted Stock: 2nd Circ.

    The Second Circuit told a group of former Lehman Brothers Inc. workers Thursday they can’t cash in either the restricted stock units they received in compensation or the units they were promised but didn’t receive, saying both are securities claims.

  • January 25, 2018

    Honda, Nissan, Class Defend $702M Air Bag Settlements

    Lawyers for Honda, Nissan and a class of vehicle owners who sued the car manufacturers over the cost of replacing their defective Takata air bags asked a Florida federal judge on Wednesday to reject a litany of objections to settlements worth more than $702 million.

  • January 25, 2018

    Casino Ch. 7 Trustee Can't Force Turnover Of CEO’s Assets

    An Illinois federal judge on Wednesday tossed a bid by a Chicagoland casino's bankruptcy trustee for a turnover of assets from the casino's former chief executive, finding that the trustee has not shown the assets are in fact the property of the late CEO’s estate.

  • January 24, 2018

    Steelworkers Seek Assurance M&G Buyer Will Honor CBA

    The United Steelworkers union representing 120 workers at a West Virginia plastics plant owned by bankrupt M&G Polymers LLC filed a conditional objection Wednesday in Delaware seeking assurance that any buyer of the facility would honor a collective bargaining agreement with the union.

  • January 24, 2018

    $155M Transfers OK'd On Appeal In Detroit Casino's Ch. 11

    A Michigan federal court on Tuesday approved prebankruptcy transfers of $155 million from downtown Detroit's Greektown Casino to two couples who had years earlier owned a large indirect stake, disregarding the protests of the bankruptcy trustee and saying a safe harbor applied to the transaction considered in context.

  • January 24, 2018

    Westinghouse Remains Free From SC Utility Customer Claims

    Westinghouse Electric Co. does not have to face a pair of proposed class actions filed by South Carolina utility customers over payments for a now-abandoned nuclear reactor project, a New York bankruptcy judge ruled Wednesday, saying it appears the consumers filed what amount to prepetition claims too late.

  • January 24, 2018

    Golfsmith Ch. 11 Dismissal Gets Judge OK After Asset Sales

    The Chapter 11 case of Golfsmith International Holdings Inc. came to an end on Wednesday after a Delaware bankruptcy court granted a joint motion to dismiss the case now that the sports retailer has sold off substantially all of its assets.

  • January 24, 2018

    Canadian DIY Supplier RCR Secures Del. Ch. 15 Protections

    Bankrupt Canadian do-it-yourself home improvement supplier RCR International Inc. secured protection for its American assets and contracts Wednesday, in the first steps of a Chapter 15 proceeding in Delaware in support of its cross-border insolvency case.

  • January 24, 2018

    Takata Seeks OK For $22M Stock Buy To Duck Mexico Tax

    Hoping to avoid a $9 million tax bill in Mexico, bankrupt vehicle safety device and air bag component maker Takata sought Delaware court approval late Tuesday to plow a $22 million intercompany receivable back into a Mexican affiliate that owes the money.

  • January 24, 2018

    Toys R Us Looks To Close 180 Stores Nationwide

    Toys R Us on Tuesday asked a New York bankruptcy court for permission to close more than 180 U.S. stores that it says are performing at “suboptimal levels.” 

  • January 23, 2018

    Takata Sues RL Polk Over Noticing Debacle

    Bankrupt air bag maker Takata filed an adversary suit on Tuesday against bankruptcy administration vendor R.L. Polk & Co., who Takata says caused an extra $1.6 million in expenses by botching almost 5 million addresses on a mailing list.

Expert Analysis

  • Exploring The New-Value Exception In Multidebtor Cases

    Steven Fink

    While debtors have attempted to invoke the new-value exception in the multidebtor context, doing so raises a number of questions, and there is a surprising dearth of case law addressing how the exception should be applied in multidebtor bankruptcies, say attorneys with the Law Office of Steven J. Fink PLLC and Orrick Herrington & Sutcliffe LLP.

  • Enforcing Judgment Against A Debtor's Spouse

    Craig Weiner

    In the rare instance when otherwise collectible assets are owned by a debtor’s spouse — who is not liable on the underlying judgment — a creditor must be determined and creative in order to recover on its judgment, say Craig Weiner and Michael Kolcun of Robins Kaplan LLP.

  • Roundup

    Judging A Book

    Justice and Empathy

    Are the latest books on the judicial system worth reading? Federal judges share their thoughts in this series of book reviews.

  • Don't Waste This Planning Cycle: Year-End Strategies

    Hugh A. Simons

    Law firms are businesses where partners operate with significant autonomy. To see their priorities translate into individual partner action, firm leaders should use a few collaborative strategies, suggests Hugh A. Simons, former senior partner of The Boston Consulting Group and former COO of Ropes & Gray LLP.

  • Creditors’ Options In Venezuela’s Disorderly Default

    Javier Rubinstein

    By analyzing the case law from Argentina’s default in 2001 and the terms of the Venezuelan bonds, it is possible to predict how a disorderly default might play out in Venezuela's debt crisis. Attorneys with Kirkland & Ellis LLP examine key elements from Argentina’s default in order to predict whether history is likely to repeat itself.

  • From Snaps To Tweets: The Craft Of Social Media Discovery

    Matthew Hamilton

    Courts have consistently held that social media accounts are subject to established discovery principles but are reluctant to allow parties to rummage through private social media accounts. Recent case law confirms that narrowly tailored information requests get the best results, say Matthew Hamilton, Donna Fisher and Jessica Bae of Pepper Hamilton LLP.

  • The Battle Over 3rd-Party Releases Continues

    Matthew Kelsey

    Bankruptcy courts have taken divergent approaches to analyzing whether they have jurisdiction to approve nonconsensual third-party nondebtor releases. While the New York bankruptcy court's recent decision in SunEdison provides another data point for the debate, it leaves some questions unanswered, say attorneys with Gibson Dunn & Crutcher LLP.

  • Feature

    An Interview With Former DHS Secretary Jeh Johnson

    Randy Maniloff

    Jeh Johnson, the former secretary of homeland security, was kind enough to let me visit him to reflect on his diverse career. He told stories that left me speechless. And yes, the man who was responsible for the Transportation Security Administration removed his shoes when going through airport security. You bet I asked, says Randy Maniloff of White and Williams LLP.

  • A Powerful Tool For Collecting Judgments

    Craig Weiner

    Enforcing a judgment, particularly in foreign jurisdictions, is a complex and difficult endeavor, and filing lawsuits in foreign countries often proves ineffective and costly. These situations require specialization and expertise, and litigants are increasingly turning to court-appointed receivers as a solution, say Craig Weiner and Chelsea Walcker of Robins Kaplan LLP.

  • Series

    Judging A Book: Gilstrap Reviews 'Alexander Hamilton'

    Judge Rodney Gilstrap

    While Alexander Hamilton is the subject of a hit Broadway musical and renewed biographical examinations, professor Kate Brown takes us down a road less traveled in her book "Alexander Hamilton and the Development of American Law" — showing Hamilton as first, last and foremost an American lawyer, says U.S. District Judge Rodney Gilstrap of the Eastern District of Texas.