Bankruptcy

  • 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.

  • January 23, 2018

    Ex-Sedgwick Bankruptcy Chair Heads To Rimon Calif. Offices

    Former Sedgwick bankruptcy chair Lillian Stenfeldt joined the Northern California offices of Rimon Law, the firm announced Tuesday, where she'll continue aiding companies' bankruptcy matters, purchases of intellectual property from bankruptcy estates and other insolvency-related proceedings.

  • January 23, 2018

    Philly Refinery Gets OK On $120M DIP In Fast-Track Ch. 11

    The East Coast’s largest oil refinery received a Delaware bankruptcy court's approval Tuesday to access a $120 million post-petition financing package to fund its rapid trip through the Chapter 11 process, with prepetition term loan lenders providing the facility.

  • January 23, 2018

    Panda Temple Gets Ch. 11 Plan OK After Shifting Releases

    Power plant owner Panda Temple Power LLC received court approval in Delaware on Tuesday for its Chapter 11 reorganization plan two weeks after a bankruptcy judge questioned liability releases being granted to nondebtor affiliates.

  • January 23, 2018

    Citi Sanctioned For Bid To 'Reaffirm' Discharged Debt

    Citigroup Inc.’s mortgage unit was hit with sanctions Tuesday by a New York bankruptcy court, after the lender attempted to force a Chapter 7 debtor to “reaffirm” $102,000 in debt that had already been wiped out.

  • January 23, 2018

    Woodbridge Settles SEC Ch. 11 Trustee Takeover Dispute

    The Woodbridge Group of Cos. agreed to a second Chapter 11 corporate leadership rework in as many weeks on Tuesday, in a settlement that cut short a fourth day of argument in Delaware on a Securities and Exchange Commission-backed trustee takeover of the $1.2 billion case.

Expert Analysis

  • 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.

  • The Case For Creating A Mediation Department At Your Firm

    Dennis Klein

    There are at least four reasons supporting the need for some form of a mediation group within a law firm, especially in firms with larger practices, according to Dennis Klein, owner of Critical Matter Mediation and former litigation partner at Hughes Hubbard & Reed LLP.

  • Intermediate Transfers May Be Safe From 546(e) Safe Harbor

    Meaghan Gragg

    In Merit Management v. FTI Consulting, the U.S. Supreme Court is reviewing the Seventh Circuit’s decision that the Section 546(e) safe harbor does not protect from avoidance a transfer that is conducted through a financial institution where the institution acts merely as a conduit. Based on the justices’ questions at oral argument last week, the odds are good that the Supreme Court will agree with the Seventh Circuit, says Meaghan ... (continued)

  • Being There: Defending Depositions

    Alan Hoffman

    Defending depositions is challenging. The lawyer is the only shield and protector for the witness and the client. The rules of engagement are less than clear, and fraught with ethical perils. Difficult judgment calls often must be made in the heat of battle. This is where lawyers really earn their keep, says Alan Hoffman of Husch Blackwell LLP.

  • A Tale Of 2 Cases On 3rd-Party Releases

    Matthew Kelsey

    Before a bankruptcy court can examine whether a nonconsensual third-party nondebtor release is permissible, it must first determine whether it has authority to approve such releases. Two recent — and conflicting — opinions suggest that this determination depends on the bankruptcy court's view as to what "operative proceeding" governs the matter, say attorneys with Gibson Dunn & Crutcher LLP.

  • A Look At NYC Bar Association's Task Force On Puerto Rico

    Roger Juan Maldonado

    Last year, the New York City Bar Association created its Task Force on Puerto Rico to monitor and comment on the actions of stakeholders involved in the implementation of the Puerto Rico Oversight Management and Economic Stability Act. The task force's focus has naturally shifted in the aftermath of Hurricane Maria's catastrophic impact, say Roger Juan Maldonado and Neysa Alsina of the New York City Bar Association.

  • Opinion

    The Legal Fallout For Harvey Weinstein’s Hired Hands

    Nicole Kardell

    There is a difference between a lawyer or investigator seeking evidence to defend against allegations and correct misrepresentations, and, on the other hand, using duplicitous means to gather information and intimidate alleged victims and journalists. Client advocacy does not mean winning at all costs, says Nicole Kardell of Ifrah Law PLLC.

  • Jury Persuasion In An 'Alt-Fact' World

    Shelley Spiecker

    Today's climate of “alternative facts” has jurors making decisions based on beliefs, emotions and social affiliations that often go unacknowledged or underappreciated. To present their case in the most persuasive manner possible, litigators should consider adapting to their audience when it comes to four psychological factors, say consultants with Persuasion Strategies, a service of Holland & Hart LLP.

  • Applying The Investors' Playbook To Legal Career Planning

    Howard Cohl

    Nothing has been more instrumental in my role as a legal recruiter than what I learned from a variety of hedge fund managers, venture capitalists and investment bankers — how to analyze a deal and make a decision quickly. It boils down to the traditional SWOT analysis, says Howard Cohl, director in Major Lindsey & Africa’s emerging markets group.

  • How IT And Procurement Pros Can Inform Law Firm Budgeting

    Steve Falkin

    As law firms begin preparing for their annual budget review, Steve Falkin and Lee Garbowitz of HBR Consulting discuss why firm leaders should give their internal information technology and procurement teams a seat at the table.