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Bankruptcy

  • September 25, 2018

    Citibank Settles Case Over Macy’s Card Bankruptcies For $5M

    Citibank will pay $5 million to settle a case with the U.S. Trustee Program over bankruptcy cases involving more than 71,000 Macy’s brand credit card accounts, according to a proposed consent order filed Monday.

  • September 24, 2018

    Investors Urge 7th Circ. To Revive Suit Over Fisker Fraud

    A group of investors who say they were duped into buying stock for electric car maker Fisker Automotive just before it went bankrupt urged the Seventh Circuit to revive their suit on Monday, saying the lower court incorrectly found it time-barred.

  • September 24, 2018

    PE Firm Can't Dodge Insurer's Fraud Suit Over $100M Deal

    An Illinois federal judge on Monday ordered a private equity firm to face an insurer's fraud suit over a $100 million deal to buy an auto insurance network, saying the insurer sufficiently pled the firm hid its insurance underwriter's economic vulnerability before the transaction closed.

  • September 24, 2018

    Aerogroup Seeks To Stop Global Brands Sale In Ch. 11 Suit

    Bankrupt shoemaker Aerogroup International Inc. asked a Delaware judge for a temporary restraining order late Friday, seeking to prevent the $1.4 billion sale of Global Brands Group from closing and leaving the debtor unable to collect on $45 million in contract claims from a scuttled Chapter 11 transaction.

  • September 24, 2018

    Tops Markets Must Clear Up Ch. 11 Releases, Watchdog Says

    The U.S. government’s bankruptcy case monitor argued in court papers Friday that Tops Markets LLC should not be permitted to solicit creditor votes on its pending restructuring plan, saying the grocery chain is not providing sufficient details regarding proposed litigation releases for third parties.

  • September 24, 2018

    Del. Judge Backs Releases In Millennium Lab Holdings Ch. 11

    A Delaware federal judge on Friday upheld bankruptcy court confirmation of a laboratory company’s $1.8 billion Chapter 11 plan over creditor objections that the ruling unconstitutionally shielded nondebtor third parties from a racketeering suit.

  • September 24, 2018

    Sears CEO Pushes $2.25B Asset Sale To Avoid Bankruptcy

    In an effort to stave off bankruptcy, Sears CEO Edward Lampert’s hedge fund is urging the company to immediately restructure its debt and sell off about $2.25 billion in assets, including the Sears Home Services business and the Kenmore appliance brand, in the face of upcoming debt payments.

  • September 24, 2018

    Ex-Ad Exec Wins Appeal For $10M Tax Refund In 9th Circ.

    A former ad agency executive won his appeal for more than $10 million in tax refunds when the Ninth Circuit ruled Monday that he had fulfilled a legal requirement to report inconsistencies between his personal tax return and that of his now-defunct advertising placement company.

  • September 21, 2018

    Ex-Judge Joins Dickinson Wright In Fort Lauderdale

    Former Judge Jorge J. Perez has joined Dickinson Wright PLLC’s litigation group in Fort Lauderdale, Florida, where he is an oft-appointed receiver in insolvencies and an arbitrator.

  • September 21, 2018

    Calif. Gov. Signs Wildfire Bills, Limiting PG&E Liability

    California Gov. Jerry Brown signed a package of bills Friday that aims to help the state prevent and recover from catastrophic wildfires, including a controversial bill that critics call a bailout for Pacific Gas and Electric Co. but that its author says is needed to save the liability-burdened utility from bankruptcy.

  • September 21, 2018

    Battle Brewing Over Weinstein's Info Request In Del. Ch. 11

    The Weinstein Co. Holdings LLC filed an objection on Thursday in Delaware bankruptcy court to what it claims is a "burdensome" request by Harvey Weinstein seeking documents about his rights to certain films and projects.

  • September 21, 2018

    Ex-Cocoa Trading Co. Exec Gets 3 Months For $352M Fraud

    U.S. District Judge Jed S. Rakoff on Friday hit a former Transmar Commodity Group Ltd. finance executive with a three-month sentence for his role in a $352 million fraud that bankrupted the cocoa trader and damaged banks, crediting his effort to cooperate but saying the size of the caper required a prison term.

  • September 21, 2018

    Agrokor Gets Croatian Restructuring Recognized In US Court

    A New York bankruptcy judge on Friday granted Croatian food and beverage giant Agrokor U.S. bankruptcy protection while the company works through its restructuring deal in its home country.

  • September 21, 2018

    Fluor Says Westinghouse Owes It $247M In Project Fees

    Engineering and construction giant Fluor Enterprises Inc. on Friday urged a New York bankruptcy court to order Westinghouse Electric to hand over roughly $247 million in allegedly unpaid fees stemming from a pair of nuclear reactor projects, months after the nuclear power company tried to dodge the claims.

  • September 21, 2018

    Claire’s Gets Nod On Ch. 11 Plan After Clinching Creditor Deal

    A Delaware bankruptcy judge confirmed accessory retailer Claire’s Chapter 11 plan on a mostly uncontested basis Friday after a three-day confirmation hearing during which stakeholders hashed out the details of a deal struck Monday that granted second-lien creditors higher recovery rates.

  • September 20, 2018

    Bankrupt Museum Exhibitor To Auction Off Titanic Artifacts

    Thousands of artifacts dredged up from the Titanic are set to go up for auction in a Florida bankruptcy case next month, with a $19.5 million stalking horse bid in place, according to a sale notice filed Wednesday.

  • September 20, 2018

    Kokesh Defeats JPMorgan's $286M Coverage Award: NY Court

    A New York appeals court on Thursday reversed an order requiring a group of insurers to pay J.P. Morgan Securities Inc. $286 million for settlement costs that Bear Stearns shelled out in a deal with the U.S. Securities and Exchange Commission, saying coverage is precluded based on the U.S. Supreme Court's 2017 ruling in Kokesh that disgorgement is a penalty.

  • September 20, 2018

    J&M Vendors' Skittishness Threatens Ch. 11 Plan Hopes

    The prospects of discount retailer J&M Sales Inc. getting to a confirmed Chapter 11 plan of reorganization dimmed Thursday, when attorneys for the chain of stores told a Delaware bankruptcy judge that its vendors were wary of signing on to a process where they would provide inventory on shortened terms.

  • September 20, 2018

    IHeartMedia Gets OK To Solicit Creditor Votes On Ch. 11 Plan

    A Texas bankruptcy judge issued an order Thursday approving the disclosures and solicitation materials for iHeartMedia Inc.'s Chapter 11 plan, which is expressly opposed by the broadcast media giant's unsecured creditors and has faced challenges from federal authorities.

  • September 20, 2018

    Earl of Sandwich's Quick Win Bid Draws Ire In Caesars' Ch. 11

    Investment adviser Whitebox Advisors LLC blasted an Earl of Sandwich location’s request for an order declaring it the owner of a $3.6 million claim in Caesars’ Illinois federal court bankruptcy, arguing that the evidence shows the now-shuttered Atlantic City eatery had reached a binding preliminary deal to sell the claim.

Expert Analysis

  • 3 Cautionary Tales For Buyers Of Bankruptcy Claims

    Nancy Peterman

    Courts have usually provided little guidance regarding problems that might affect the use of claims purchased in bankruptcy cases for strategic reasons. With three recent decisions, this dynamic has begun to change, say Nancy Peterman and John Elrod of Greenberg Traurig LLP.

  • New Privacy Laws' Unintended Impact On Bankruptcy Sales

    Walt Sapronov

    When the next downturn occurs, bankruptcies and opportunities for investors to pick up distressed assets on the cheap will follow. Where those assets include customer lists or other personal information protected by new privacy laws in the EU and California, those sales will become more difficult, say Walt Sapronov and Paul Kouroupas of Sapronov & Associates PC.

  • What Kavanaugh's Writing Tells Us About His Personality

    Matthew Hall

    People with certain personality traits tend to use certain words. A computer analysis of Judge Brett Kavanaugh’s D.C. Circuit opinions reveals that he is highly extraverted, which means that he would be a prominent voice on the U.S. Supreme Court, says Matthew Hall, a professor at the University of Notre Dame.

  • Roundup

    Cities In Distress

    Cities in Distress

    Five years after the city of Detroit filed for Chapter 9 bankruptcy, experts look at the financial troubles of Chicago and other U.S. cities in this special series.

  • Opinion

    3 Pros, 3 Cons Of Litigation Finance

    Ralph Sutton

    An educated guess puts the number of new litigation funders launched in the past 18 months at 30 — an astonishing number, with more to come. Is this a blessing to our legal system or something more akin to tulip mania? Maybe both, says Ralph Sutton, founder and CEO of litigation funding firm Validity Finance LLC.

  • Series

    Cities In Distress: Municipal Recovery Lessons From Pa.

    Juliet Moringiello

    As we reflect on the five years since Detroit’s bankruptcy filing, Pennsylvania’s experience in intervening in its municipalities’ financial distress provides some useful insights on the problems plaguing municipalities as well as lessons for states, says professor Juliet Moringiello of Widener University Commonwealth Law School.

  • Modern Communication Brings E-Discovery Challenges

    Thomas Bonk

    As new communications platforms displace email, the legal industry is awkwardly grappling with complex e-discovery questions. Fortunately, this environment provides a very fertile ground of incentives for innovation in both e-discovery technology and service offerings, says Thomas Bonk of Epiq.

  • Series

    Cities In Distress: Michigan's Emergency Mgr. Law And Flint

    Eric Scorsone

    Michigan has taken a very aggressive approach to addressing municipal fiscal insolvency. But the state's emergency manager law fails to consider the unintended consequences of short-term financial adjustments, as seen in the case of Flint, say Eric Scorsone and Samantha Zinnes of Michigan State University.

  • Opinion

    It's Not All About The Benjamins, Baby (Lawyer)

    J.B. Heaton

    Notwithstanding the latest salary war among prominent law firms, I urge my middle-aged and older colleagues to help the recent graduates we know focus on the long term. Even if the salary is the same, there is a big difference between an institutional firm and the relatively younger firms matching BigLaw, says J.B. Heaton, a University of Chicago business law fellow and former partner at Bartlit Beck.

  • Asbestos Transparency Laws Can Stop Double Recovery

    Scott Hunsaker

    Some asbestos plaintiffs have obtained full recovery from viable defendants and simultaneously, or later, recovered more money for the same injury from asbestos bankruptcy trusts established by those same entities. Recognizing this problem, more and more states are turning to asbestos transparency laws as a solution, say Scott Hunsaker and Karl Borgsmiller of Tucker Ellis LLP.