Bankruptcy

  • May 10, 2017

    BCBG Ch. 11 Sees Azria Wife Appeal Loss Of $7M Payout

    Fashion designer Max Azria’s wife has appealed a New York bankruptcy court’s ruling that allowed BCBG Max Azria Group Inc. to void her $7 million golden parachute payout after the bankrupt women’s clothing retailer fired her in March.

  • May 10, 2017

    Pepper Hamilton Adds Bankruptcy Pro In NY

    A financial services and bankruptcy attorney who successfully challenged two proposed reorganization plans in oil driller Paragon Offshore PLC’s bankruptcy has joined Pepper Hamilton LLP in New York.

  • May 10, 2017

    NY Judge Won't Combine Loan Suits Against REIT

    A New York federal judge has declined to combine three derivative suits accusing directors of Resource Capital Corp. of mishandling a Puerto Rico hotel loan portfolio that prompted a $41 million write-down in August 2015, calling a bid for co-lead counsel unnecessary.

  • May 9, 2017

    DLA Piper Gets Second Win In $36M Bankruptcy Appeal

    A New York federal judge on Tuesday affirmed a bankruptcy court's dismissal of a suit accusing DLA Piper of helping a Cayman Islands investment manager siphon more than $36 million to cover a separate unit’s mortgage-backed securities payments, finding the liquidators couldn't sue over something that had once benefited them.

  • May 9, 2017

    Split Dewey Verdict Shows Difficulty Of Convicting Top Execs

    The conviction of just one out of three former executives of Dewey & LeBoeuf LLP shows the problems prosecutors face in trying to hold senior management accountable for crimes that are not directly tied to the C-suite, experts said Tuesday.

  • May 9, 2017

    Judge Handling Puerto Rico Case Seen As Strong Choice

    Picked to oversee Puerto Rico's unprecedented $70 billion bankruptcy case, U.S. District Judge Laura Taylor Swain will be making decisions that could make or break the economically troubled island, but experts say her judicious temperament and legal acumen make her suited for the task.

  • May 9, 2017

    Platinum Partners Not Covered For Fraud Claims, Insurers Say

    A pair of excess insurers on Monday asked a New York state court to rule that they don't have to cover hedge fund Platinum Partners or several of its executives in connection with litigation over an alleged $1 billion securities fraud scheme and a purported kickback scheme, claiming the fund made misrepresentations on its policy applications.

  • May 9, 2017

    NextEra Says Greenberg Traurig Neglected Common Defense

    NextEra Energy Inc. sued Greenberg Traurig LLP in New York state court Monday, alleging the firm failed to assert a common legal defense to a $149 million fraudulent transfer claim in a bankruptcy proceeding.

  • May 9, 2017

    Towing Co. Seeks Dismissal Of Ch. 11 Case After Sale

    Citing a successful sale process that garnered $40 million in consideration, bankrupt roadside assistance company United Road Towing Inc. asked a Delaware judge Tuesday to dismiss its Chapter 11 case and allow the debtor to wind down and dissolve.

  • May 9, 2017

    5th Circ. Bars Atty From Dropping Client Note In Ch. 7

    The Fifth Circuit on Monday held a lawyer who had settled a malpractice case with a former client can’t discharge the settlement in bankruptcy because the lawyer didn’t advise the client to retain independent counsel before settling.

  • May 9, 2017

    Glavin Dishes On 'Nightmare' Case For Dewey's DiCarmine

    Former Dewey & LeBoeuf Executive Director Steven DiCarmine beat state fraud charges on May 8, three years and two trials after they were brought. Rita Glavin of Seward & Kissel LLP spoke with Law360 about trying the case she described during the trial as DiCarmine's “nightmare.”

  • May 9, 2017

    Dance Mom Star Gets Year In Prison For Defrauding Creditors

    Abigale Lee Miller, the star of Lifetime’s reality television show “Dance Moms,” was sentenced Tuesday in Pennsylvania federal court to one year and one day in prison after she was pled guilty to hiding assets from creditors during her bankruptcy.

  • May 9, 2017

    Contura Energy Marks Latest Coal Co. To Seek IPO

    Coal producer Contura Energy Inc., formed out of Alpha Natural Resources Inc.’s bankruptcy restructuring, filed initial public offering plans on Monday, marking the third coal company to pursue an IPO this year amid improving market conditions and expectations of a friendlier regulatory environment.

  • May 9, 2017

    Rupari Cash Budget Tweaked To Resolve Committee Objection

    Bankrupt meat distributor Rupari Food Services Inc. resolved objections to its cash collateral budget to gain court approval of the spending plan from a Delaware judge Tuesday by increasing the money allocated to the unsecured creditors committee and reducing its own counsel fees.

  • May 9, 2017

    ATopTech Ch. 11 Bidder Seeks Info Demand Protective Order

    A front-running bidder for bankrupt microchip design software company ATopTech Inc. sought a protective order Monday barring a Chapter 11 creditor from making several information demands and said in court filings that it has dropped plans to lend the debtor $6 million.

  • May 9, 2017

    Russian Railcar Co. Fights Arbitration Bid In Ex-CEO Row

    A Russian railcar lessor accusing its former interim CEO of divulging certain confidential information to its creditors has hit back against his efforts to send the dispute to Russia or a London arbitration, telling a Connecticut federal court that he lodged a related suit in the U.S.

  • May 9, 2017

    Shareholders Say SunEdison Disclosure Statement Flawed

    An ad hoc committee of SunEdison shareholders Monday filed an objection to the company’s Chapter 11 plan, saying it fails to explain why one of the world’s largest energy companies went under or what creditors can expect now.

  • May 8, 2017

    Streamlining Salvages Dewey Case On Second Try

    After their first try ended in a mistrial, prosecutors from the Manhattan district attorney's office trimmed the fat and the key defendant from their controversial retrial of the former leadership of Dewey & LeBoeuf LLP — and that decision netted a modest victory five years in the making on May 8 when jurors convicted the defunct firm's former chief financial officer on felony fraud charges.

  • May 8, 2017

    Weary Dewey Jurors Say Case Against Sanders Far Clearer

    After deliberating for five days at the end of the lengthy retrial of two former executives at Dewey & LeBoeuf LLP, multiple jurors said Monday they felt New York state prosecutors had done a far better job proving their case against Joel Sanders, whose name one noted "was on everything," than they had against Stephen DiCarmine.

  • May 8, 2017

    Texas Atty Keeps $40M Win Against IRS Over Tax Shelter Tips

    A Dallas attorney escaped a $40 million IRS penalty for the second time on Monday when a Texas federal court affirmed a bankruptcy court’s ruling that certain financial arrangements the attorney marketed nearly two decades ago were not tax shelters.

Expert Analysis

  • What Should Puerto Rico Offer Its Creditors?

    Richard J. Cooper

    Attorneys with Cleary Gottlieb Steen & Hamilton LLP offer four recommendations to keep in mind when designing the type of instrument that creditors will receive in a restructuring of Puerto Rico’s debt.

  • Facing Judgment For The Securities Law Violation Of Another

    Shmuel Vasser

    The Eleventh Circuit's decision in Lunsford v. Process Technologies has potentially significant implications for directors, officers and other responsible persons who may find themselves on the hook vicariously for securities violations of the company, perhaps in turn due to the acts or omissions of a subordinate employee, say Shmuel Vasser and Andrew Harmeyer of Dechert LLP.

  • How The Most Profitable Law Firms Structure Their C-Suites

    Anita Turner

    The most successful Am Law 200 law firms have evolved from being partner-run to being run by a group of highly skilled professionals reporting to firm shareholders. The data collected from our recent survey indicates this model is generally conducive to increased profitability, says Anita Turner, senior director at Colliers International.

  • Settlement Strategy: What Does The Client Really Want?

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    The best outside counsel think like the client. That includes understanding the client’s perspectives and goals with regard to reaching a settlement — because “good results” mean different things for different clients. Outside counsel must ask themselves the right questions, and know the answers, to shape a client-focused settlement strategy, say Kate Jackson of Cummins Inc. and Patrick Reilly of Faegre Baker Daniels LLP.

  • MF Global-PwC Fight Could Set Troublesome Precedent

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    The glaring misperception created by the mere filing of MF Global’s case against PricewaterhouseCoopers is that the audit firm had or should have some responsibility for MF Global's collapse. In addition, certain hallmarks of a framework for a potential claim against accounting firms are absent here, says Jacob Frenkel of Dickinson Wright PLLC.

  • Modernizing New York’s Fraudulent Conveyance Laws

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    A bill recently introduced in the New York State Assembly would repeal the state’s version of the Uniform Fraudulent Conveyance Act and replace it with the Uniform Voidable Transaction Act. Adoption of the UVTA would be an important step in ensuring that New York law remains the gold standard in commercial contracts, says Patrick Fitzmaurice of Troutman Sanders LLP.

  • In The Associate Lateral Market, All Law Firms Are Not Equal

    Darin R. Morgan

    When associates contemplate a potential lateral move, there is a common misconception that all law firms are the same. It may seem that one law firm is just like the next, but if you dig deeper, you may discover unique attributes at some firms that may be more appealing and improve your professional satisfaction significantly, says Darin Morgan of Major Lindsey & Africa.

  • Reflections From A Mock Trial

    Lora Brzezynski

    Nerves were high on the day of the trial. While technically client interests were not at stake, our reputations were still on the line. We were not only presenting our case in front of our newly acquainted colleagues, but also for partners at our firm, expert witnesses, federal judges and in-house counsel — potential employers and clients, say attorneys with Dentons, sharing their recent mock trial experience.

  • OFAC Takes Sanctions Jurisdiction Into Uncharted Waters

    Edward Krauland

    The Office of Foreign Assets Control’s recent finding that a Taiwan-based shipping company violated sanctions regulations has led to quite a bit of speculation about whether OFAC has asserted a broad new theory of jurisdiction. Bankruptcy proceedings, as opposed to other types of disputes in U.S. district court, have particular elements that appear to have been relevant to OFAC’s finding of jurisdiction, say attorneys with Steptoe & Johnson LLP.

  • Issues To Expect In A Title III Puerto Rico Restructuring

    Luke A. Barefoot

    One of the issues that will perhaps most affect the treatment and negotiating leverage of various creditors in Puerto Rico's ensuing Title III process is the determination of the type of security interest and collateral by which their bonds are secured, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.