Bankruptcy

  • December 19, 2017

    Bankruptcy Court Wrestles With Enforcing Unsigned GM Deal

    In a legal dispute over the enforceability of a vehicle defect settlement between a General Motors bankruptcy trust and car purchasers and accident victims, the deciding factor will be whether the absence of signatures overpowers the parties’ stated agreement to the terms of the deal.

  • December 19, 2017

    Woodbridge Ch. 11 Hits Noteholder, Trustee Resistance

    A Delaware bankruptcy judge rejected a call Tuesday to expedite a hearing on the contested formation of a committee for $750 million in claims against Woodbridge Group of Cos. LLC, amid U.S. trustee objections to initial financing approvals for the case.

  • December 19, 2017

    Big Banks' Living Wills Pass Muster With The Feds

    The Federal Reserve Board and Federal Deposit Insurance Corp. said Tuesday that the nation's eight largest banks have received passing grades on their latest round of so-called living wills, which detail how they can be safely wound down in the event they’re hit with a financial shock.

  • December 19, 2017

    Charney May Owe Standard General $19.5M, Judge Says

    A Delaware Chancery judge ruled Tuesday that American Apparel founder Dov Charney could be on the hook to Standard General LP for up to $19.5 million plus interest stemming from a fight over his ouster from the company that went through two subsequent bankruptcies.

  • December 19, 2017

    Aquion Energy Wins OK For Ch. 11 Plan After $9M Sale

    A Delaware bankruptcy judge agreed Tuesday to confirm saltwater battery maker Aquion Energy Inc.’s Chapter 11 plan to divvy up proceeds from its $9 million sale, marking what both the debtor and creditors said was a successful case for a company that once struggled to find a buyer.

  • December 19, 2017

    Meningitis Outbreak MDL, $200M Settlement Fund Near End

    Three-quarters of a $200 million settlement fund had been distributed and one claim remained unresolved on Tuesday in multidistrict litigation that once numbered 733 cases against health care providers that administered, but did not concoct, contaminated epidural painkillers linked to a deadly meningitis outbreak.

  • December 19, 2017

    M&G Seeks OK For $850K In Ch. 11 Employee Bonuses

    Bankrupt plastics supplier M&G USA Corp. asked a Delaware court for permission Monday to pay up to $850,000 in bonuses to employees to retain key workers and incentivize performance while the company pursues a Chapter 11 sale of its assets.

  • December 19, 2017

    Probe Initiated After $6B Puerto Rico Gov't Stash Revealed

    The Puerto Rican financial oversight board on Tuesday said it will launch an independent probe into the source of more than $6 billion in cash the bankrupt island’s government is reportedly holding in several bank accounts.

  • December 19, 2017

    Rentech Files Voluntary Petition For Relief Under Ch. 11

    Woodchip and wood pellet producer Rentech Inc. filed for Chapter 11 protection on Monday in a Delaware bankruptcy court, saying it’s selling off its U.S. subsidiaries after an attempt to open new Canadian production facilities ended poorly.

  • December 19, 2017

    Vitamin World Designates Stalking Horse As Top Ch. 11 Bid

    Bankrupt health supplement retailer Vitamin World Inc. told a Delaware judge late Monday that its stalking horse bidder was the only entity to make a qualified offer before the debtor’s bid deadline, making its $28 million minimum offer the successful bid ahead of a planned asset auction.

  • December 19, 2017

    Deals Rumor Mill: CJ HealthCare, Vitamin World, Time Warner

    Several private equity firms are vying for a South Korean pharmaceutical company, China’s Feihe International is set to buy bankrupt Vitamin World, and Time Warner is selling Central European Media Enterprises in a deal said to be worth roughly $2 billion.

  • December 18, 2017

    GM Fights To Kill $1B Ignition Switch Claims Settlement

    General Motors Co. and its bankruptcy trust faced off on Monday against a group of consumers suing the automaker over alleged vehicle defects in New York bankruptcy court, as the consumers fight to enforce a settlement that could cost GM $1 billion even though the deal was never signed.

  • December 18, 2017

    Semiconductor Co. Files Ch. 11 Prepack To Rework $1.1B Debt

    Microchip maker Global A&T Electronics Ltd. on Monday filed for Chapter 11 protection in New York bankruptcy court with a prepackaged plan to drop more than half a billion in debt and end the legal challenges to its 2013 debt swap.

  • December 18, 2017

    EFH Unsecured Creditors Demand Seat On $560M Fee Panel

    Citing foot-dragging and disclosure refusals by a committee overseeing an "eye-popping" $560 million-and-rising professional fee tab, Energy Future Holdings Corp.'s top unsecured creditors asked a Delaware Bankruptcy judge Sunday to give the group representation on the panel.

  • December 18, 2017

    Adams Resources Sails Through Ch. 11 Confirmation Hearing

    Bankrupt oil and gas driller Adams Resources Exploration Corp. gained confirmation of its Chapter 11 plan of liquidation Monday in Delaware following the sale of many of its valuable well interests.

  • December 18, 2017

    Exelon's $60M Bid Only Ch. 11 Offer For ExGen Power Plant

    Bankrupt power station owner ExGen Texas Power LLC announced late Friday in Delaware that a $60 million stalking horse bid from its parent company was the only offer it received for a Texas generating station, declaring the bidder the winner and canceling a planned auction.

  • December 18, 2017

    Trustee Ready To Distribute $584M To Madoff Customers

    The liquidation trustee for Bernard Madoff’s failed securities firm told a New York federal bankruptcy court Monday that he’s ready to distribute more than $584 million to investors who fell victim to Madoff’s Ponzi scheme, bringing the total amount that will have been paid out so far to about $11.4 billion.

  • December 18, 2017

    Paragon Offshore Ch. 11 Trustee Seeks $1.7B Del. Clawback

    Bankrupt oil rig venture Paragon Offshore PLC's litigation trustee sued spinoff parent Noble Corp. PLC in Delaware's bankruptcy court late Friday, claiming fraud and fiduciary breaches and seeking to reclaim $1.7 billion in note payments.

  • December 18, 2017

    Dentons Predecessor To Pay Bulk Of $12.2M USAE Deal

    A long-promised settlement between a Dentons predecessor and U.S. Aerospace Inc. shareholders who said the company's value was wrongly transferred materialized Friday, revealing that the predecessor firm and other defendants have agreed to pay $12.2 million after a USAE bankruptcy was kicked out of bankruptcy court.

  • December 18, 2017

    MVP: Jones Day's Heather Lennox

    Jones Day’s Heather Lennox led the charge this year to restructure the world’s largest private sector coal company, saving it from liquidation and earning her a spot as one of Law360’s 2017 Bankruptcy MVPs.

Expert Analysis

  • 11th Circ. Just Got More Attractive For Business Bankruptcy

    Paul Steven Singerman

    The initial hurdle in every case involving bar order litigation is whether the bankruptcy court has jurisdiction to enter the proposed bar order. The Eleventh Circuit’s recent opinion in Fundamental Long Term Care offers the clearest statement to date of the law upholding the power of bankruptcy courts to issue bar orders, say attorneys with Berger Singerman LLP.

  • Series

    Judging A Book: Pryor Reviews 'Scalia Speaks'

    Judge William Pryor

    Christopher Scalia and Edward Whelan have published an indispensable collection of the late Justice Antonin Scalia's best speeches. "Scalia Speaks: Reflections on Law, Faith, and Life Well Lived" puts on full display Justice Scalia’s skilled writing, quick wit and uncommon wisdom on a wide range of topics — from law to turkey hunting, says Judge William Pryor of the Eleventh Circuit.

  • Building A Diverse Bankruptcy Bench Is Critical

    Judge Frank Bailey

    The bankruptcy court bench is the least diverse bench in the federal court system, which is curious given that diversification of the Article I benches is within the control of other federal judges, says U.S. Bankruptcy Judge Frank Bailey of the District of Massachusetts.

  • Financial Crisis Anniversary

    The Inside Counsel Revolution

    Ben Heineman

    The role of the general counsel has significantly grown in importance, with the GC now often replacing the senior partner in the outside law firm as the primary counselor for the CEO and the board. This inside counsel revolution was given great impetus by the financial crisis that started 10 years ago, says Ben Heineman Jr., former general counsel of General Electric Co.

  • Rejecting Tuition Payment Clawback: A Logical Result

    James Bentley

    When the parent of a child who attends private school files for bankruptcy, the school may be sued to return tuition payments for the benefit of the parent's creditors. A bankruptcy court recently dismissed two such claims, providing schools with well-reasoned opinions on which to rely, says James Bentley of Schulte Roth & Zabel LLP.

  • How Arbitrators Maintain Proportionality In Discovery

    Richard Seymour

    There has been much discussion of discovery proportionality in federal litigation since the December 2015 changes to Civil Rule 26. But arbitrators have long used procedures to simplify the discovery process that courts have only recently begun to adopt, says attorney and arbitrator Richard Seymour.

  • The Law Firm CFO’s Role In The Strategic Planning Process

    Tyler Quinn

    Today's law firm chief financial officer should be involved in many areas beyond traditional financial management, including operations, risk management and information technology. He or she can support strategic planning throughout the process, from development of the plan to its implementation, measurement and eventual evolution, say Tyler Quinn and Marc Feigelson of Kaufman Rossin PA.

  • Law Firms Must Transition To An Industry Sector Approach

    Heidi Gardner

    Clients are beginning to expect and demand that their external lawyers provide advice tailored to the client's industry. Aside from this, law firms should want to move toward a sector approach because industry-focused groups are a natural place for cross-practice collaboration to flourish, say Heidi Gardner and Anusia Gillespie of Harvard Law School.

  • On Second Thought: EFH Court's Extraordinary Move

    Steven Wilamowsky

    The Delaware bankruptcy court’s recent decision in Energy Future Holdings, granting a motion to reconsider a decision it made over a year ago and denying a breakup fee it had previously approved, is at once troubling and instructive, say Steven Wilamowsky and Sara Ghadiri of Chapman and Cutler LLP.

  • Series

    Judging A Book: Kozinski Reviews 'The Judge'

    Judge Alex Kozinski

    In their new book, "The Judge: 26 Machiavellian Lessons," do Ronald Collins and David Skover prove their thesis that hypocrisy is the key to judicial greatness? Some of the examples they present are hard to dispute, says Judge Alex Kozinski of the Ninth Circuit.