Bankruptcy

  • July 5, 2017

    $15M Offer Sets Pace For RadioShack Ch. 11 IP Auction

    RadioShack's bankruptcy successor secured Delaware court approval Wednesday for an auction of store-related intellectual property, with a creditor's offer to cancel $15 million in debt serving as the bid to beat.

  • July 5, 2017

    Judge Slams Auto Magnate's Fraud In $425M JPMorgan Fight

    A Michigan federal judge ripped an auto parts magnate on Wednesday for dissolving a trust and taking possession of its assets in an apparent bid to avoid a $425 million judgment for JPMorgan that followed his business empire's bankruptcy, saying his argument had “disturbing” implications.

  • July 5, 2017

    Muzak Parent Says Rival Spread False Info To Poach Users

    Mood Media, the parent company of in-store media provider Muzak, hit competitor Applied Media Technologies Corp. with a defamation suit in Florida federal court Monday, alleging AMTC misrepresented a complicated Chapter 15 filing by Mood Media as a “bankruptcy” and “collapse” in a cynical ploy to poach its customers.

  • July 5, 2017

    Barnes & Thornburg Adds Corporate Partner In Dallas Office

    Barnes & Thornburg LLP has announced that it has bolstered its Dallas office's corporate practice group with the addition of a former Weil Gotshal & Manges LLP senior associate who has experience in bankruptcies, mergers and acquisitions, and private equity.

  • July 5, 2017

    Alitalia Sees Foreign Bankruptcy Recognized In US

    Alitalia received legal recognition of its Italian bankruptcy from a New York court Wednesday, giving the distressed airline some breathing room with U.S. creditors while it deliberates whether to reorganize or liquidate through legal proceedings in its home country.

  • July 5, 2017

    Retailer True Religion Seeks Ch. 11 Rework Of $493M Debt

    Premium clothier True Religion Apparel Inc. rolled out a prepackaged restructuring plan early Wednesday in Delaware bankruptcy court, seeking to chop $350 million from the company’s $493 million in liabilities, mostly through debt-to-equity swaps.

  • July 3, 2017

    SEC Settles ITT Student Loan Case, Nears Deal With Execs

    The U.S. Securities and Exchange Commission has reached a settlement with bankrupt ITT Educational Services Inc., according to documents filed in Indiana federal court Friday, and is nearing a deal with two former executives in a case over ITT’s alleged hiding of student loan defaults from investors.

  • July 3, 2017

    Justice Stevens On Playing Politics With The High Court

    Justice John Paul Stevens discusses Merrick Garland, President Donald Trump, and how the Supreme Court has changed over the past few decades, in the first of two articles based on Law360’s interview with the 97-year-old retiree. This is part of an ongoing series of exclusive Law360 interviews with current and former Supreme Court justices.

  • July 3, 2017

    No Shocker: Puerto Rico's Electric Co. Files For Bankruptcy

    Puerto Rico's government-owned power company was forced to file for bankruptcy-like protections on Sunday after a long-negotiated deal to deleverage the utility’s $9 billion debt load was quashed by the board overseeing the territory's fiscal crisis and landmark insolvency proceedings.

  • July 3, 2017

    Bankrupt Cancer Treatment Co. Seeks Stay For Nondebtor

    Global cancer treatment center operator 21st Century Oncology has asked a New York bankruptcy judge to extend its automatic Chapter 11 litigation stay to protect a nondebtor affiliate from pending claims over a data breach that affected more than 2.2 million patients' personal information.

  • July 3, 2017

    Madoff Trustee Says Transferee Issue Can't End $2.2M Suit

    The trustee for Bernie Madoff’s investment firm Friday told a New York bankruptcy court that it was too early to end a suit attempting to clawback $2.2 million withdrawn by an investor from the $65 billion Ponzi scheme.

  • July 3, 2017

    Lehman Throws Support Behind RMBS Settlement

    Lehman Brothers Holdings Inc. urged a New York bankruptcy court on Friday to approve a grand bargain to end claims over billions of dollars' worth of dud financial-crisis-era mortgage-backed securities that it sold to investors who were left holding them after the bank's failure.

  • June 30, 2017

    Puerto Rico Utility Headed For Bankruptcy After Panel Vote

    The federal panel overseeing Puerto Rico's debt crisis voted Friday to allow the island's government-owned power company to voluntarily file for a specially created form of bankruptcy, just days after the same group rejected a $9 billion restructuring deal the utility reached with its creditors out of court.

  • June 30, 2017

    UK Litigation Roundup: Here's What You Missed In London

    The last week has seen Regent Capital sue the founder of Matador Pictures over debt, an Austral-Argentinian agricultural magnate lodge a claim against a foreign exchange trading platform, and St. Paul Fire and Marine Insurance take on several reinsurers. Here, Law360 looks at those and other new claims in the U.K.

  • June 30, 2017

    Sheppard Mullin Sued By Bankrupt Co. Over Property Sale

    A bankruptcy trustee has filed a legal malpractice suit in California state court against Sheppard Mullin Richter & Hampton LLP for the way it handled a bankrupt company’s $50 million sale of a California property, accusing the firm of failing to properly structure the deal and hurting the company’s ability to pay creditors, including Sheppard Mullin.

  • June 30, 2017

    Doral Trustee Slams Paul Hastings' Bid To Ax $5.3M Suit

    The trustee of bankrupt Doral Financial Corp. on Friday shot back at a bid to stop its attempted clawback of a $5.3 million payment made to Paul Hastings LLP just before the bank entered Chapter 11, saying the money came from it and not a subsidiary bank.

  • June 30, 2017

    RadioShack Asks For More Time To Negotiate Ch. 11 Plan

    Bankrupt electronics retailer RadioShack asked a Delaware judge Friday to extend the exclusive period during which it can file a Chapter 11 plan of reorganization, saying it needs more time to continue negotiations with creditors in hopes of getting to a consensual proposal.

  • June 30, 2017

    Banks Ask High Court To Review 2nd Circ. In $140M FDIC Row

    A group of five banks, including Credit Suisse AG and Deutsche Bank AG, has asked the U.S. Supreme Court to review a Second Circuit decision allowing the Federal Deposit Insurance Corp. to move forward with a $140 million mortgage securities suit.

  • June 30, 2017

    Square Says 9th Circ. Should Reject Bankruptcy Atty's Suit

    Square Inc. on Thursday said a bankruptcy lawyer seeking to bring claims that the payments processor discriminated against prostitutes, bookies and bankruptcy lawyers by blocking them from using its online payment service has no standing to sue because he never used its services.

  • June 30, 2017

    Leaseholder Opposes Maxus Post-Confirmation Property Sale

    A leaseholder of an Ohio property owned by reorganized debtor Maxus Energy Corp. objected Friday in Delaware to the proposed sale of that land, saying its long-term ground lease can’t be canceled in a post-confirmation sale transaction under the federal Bankruptcy Code.

Expert Analysis

  • Solving The Legal Industry's Data Protection Breakdown

    Jeff Ton

    Most law firms today aren't using common security and data protection measures that other industries employ to protect sensitive data. Options like continuous data replication and backups have various pros and cons, but most importantly, law practices must understand the need for a two-tiered approach to data protection, says Jeff Ton of Bluelock LLC.

  • 5 Things To Know About Justice Gorsuch’s First 30 Days

    Charles Webber

    Justice Neil Gorsuch joined the U.S. Supreme Court a little more than 30 days ago, on April 7, 2017. And while it is too early for him to have written any opinions, Gorsuch participated in the final 13 oral arguments of the 2016 term. Charles Webber of Faegre Baker Daniels LLP offers five takeaways from his first month on the job.

  • 5 Mistakes That End Law Firms

    Randy Evans

    Although the end often comes quickly, law firms do not fail overnight. Randy Evans of Dentons and Elizabeth Whitney of Swiss Re Corporate Solutions review five mistakes that expedite law firm failures.

  • A Wake-Up Call For Banks To Comply With Bankruptcy Rules

    Jerome Walker

    The Office of the Comptroller of the Currency’s recent action against U.S. Bank shows that a bank may commit a safety and soundness violation by failing to comply with the bankruptcy laws and rules. The challenge for banks is to determine what changes need to be made to their internal controls, says Jerome Walker of Duane Morris LLP.

  • Shrewsbury And Its Impact On Delaware Foreclosure Actions

    David White

    The Delaware Supreme Court's recent decision in J.M. Shrewsbury v. Bank of New York Mellon affects lenders’ pursuit of foreclosure, but it likely affects counsel for lenders far more than the lenders themselves, say David White and Matthew Rifino of McCarter & English LLP.

  • Takeaways From Cumulus Media Refinancing Ruling

    Mark Chass

    Investors should anticipate that creditors may rely on two aspects of the recent decision in Cumulus Media v. JPMorgan Chase to challenge exchange offers, particularly those in which issuers seek to refinance unsecured debt with secured debt, says Mark Chass of Kramer Levin Naftalis & Frankel LLP.

  • In Tronox, 2nd Circ. Sends Clear Message About Injunctions

    Jack Haake

    There is value in the protections afforded by an injunction, be it through a settlement or a bankruptcy discharge. The Second Circuit’s recent decision in Tronox preserves an injunction’s value in two ways, says Jack Haake of Foley & Lardner LLP.

  • Coming To America? Examining The Chapter 15 Avenue

    Andrew Goldman

    Chapter 15 of the Bankruptcy Code provides a doorway for non-U.S. companies to obtain creditor protection and other benefits of a U.S. bankruptcy, but how wide open is that doorway? Decisions interpreting Section 109(a) provide inconsistent answers, say attorneys with WilmerHale.

  • Recent Trends In Enforcement Of Intercreditor Agreements

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    Three recent cases show that bankruptcy courts are increasingly willing to interpret intercreditor agreements and agreements among lenders and apply their plain language to the facts of the case, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • What Lawyers Should Know To Avoid Online Scams

    J. S. Christie Jr.

    Scams resulting in access to confidential information are probably a lawyer’s greatest technology and cybersecurity risk. But hackers are more likely to gain access to a lawyer’s computer systems through human error, usually responding to a scam, than a brute force attack, says J. S. Christie Jr. of Bradley Arant Boult Cummings LLP.