Bankruptcy

  • May 8, 2017

    NextEra Blasts Texas Rejection Of $18B Energy Future Sale

    NextEra Energy on Monday urged the Public Utility Commission of Texas to reconsider the rejection of its $18 billion purchase of the utility that's the crux of Energy Future Holdings' Chapter 11 plan, claiming the decision unconstitutionally expands the agency's authority and is riddled with legal errors.

  • May 8, 2017

    Co-Lender On Collapsed Golf Course Project Nets Partial Win

    A now-bankrupt investment vehicle nabbed a partial win Monday, when a New Jersey federal judge found a co-lender on a defaulted $47 million loan to develop a golf course violated the parties' agreement by negotiating a release with guarantors, but left claims the guarantors breached the release for trial.

  • May 8, 2017

    Platinum Investors Blame Fund Losses On Feds' 'Crusade'

    Investors in Platinum Partners-managed hedge funds recently claimed they were “victimized by certain crusading members of the federal government” and said two indicted executives should be allowed to go back to work amid the criminal case to prevent more losses.

  • May 8, 2017

    China Fishery Lenders Oppose Extended Plan Exclusivity

    Defunct China Fishery Group Ltd.’s lenders on Friday blasted its request for an eight-month extension to file a Chapter 11 plan, calling the move a transparent delay tactic and telling a New York bankruptcy court they’ve completely lost faith in the seafood processor’s management.

  • May 8, 2017

    Jury Convicts Ex-Dewey CFO, Frees Exec Director

    A Manhattan jury on Monday issued a split verdict in the long-running criminal case against top executives of Dewey & LeBoeuf LLP, acquitting the defunct law firm’s executive director but convicting its former chief financial officer on fraud and conspiracy charges.

  • May 8, 2017

    THQ, Execs Agree To Pay $2.6M To Settle UDraw Suit

    THQ Inc. and two executives have agreed to pay $2.6 million to settle class allegations that they misled investors before a failed plan to expand a Nintendo Wii accessory to other gaming platforms, the investors told a California federal judge on Friday.

  • May 8, 2017

    Creditors Lose Bid To Challenge Outer Harbor's Ch. 11 Plan

    The unsecured creditors of defunct Outer Harbor LLC received a mixed bag Friday, as the Delaware bankruptcy court rejected their bid to challenge its Chapter 11 plan but signaled they will be allowed to conduct “some” investigation into $25 million in prepetition payments.

  • May 5, 2017

    Ind. Atty Sanctioned For Aiding Unauthorized Practice

    The Indiana Supreme Court has barred an Indiana attorney from practicing law for 30 days, finding that Justin R. Wall violated a variety of rules in his role as a local representative for a Florida mortgage and foreclosure law firm that had allegedly fleeced Hoosier clients.

  • May 5, 2017

    Judge Swain Chosen To Preside Over Puerto Rico Bankruptcy

    U.S. Chief Justice John Roberts on Friday appointed U.S. District Judge Laura Taylor Swain to preside over Puerto Rico's $70 billion bankruptcy case, anticipated to be the largest municipal debt restructuring in U.S. history.

  • May 5, 2017

    NJ Judge Upholds Remand Of $36.3M Superfund Suit

    A New Jersey federal judge on Friday upheld a federal bankruptcy court’s decision to send a lawsuit over responsibility for the estimated $36.3 million cleanup of a 26-acre Superfund site back to state court, agreeing with the finding that the case is a contract, not bankruptcy, dispute.

  • May 5, 2017

    Late Tax Forms Can't Free Tax Debts In Bankruptcy: 3rd Circ.

    A former franchisee for DirectBuy failed to escape three years of federal tax liabilities in bankruptcy proceedings when the Third Circuit ruled on Friday that his late-filed tax forms cannot legitimately be classified as “returns.”

  • May 5, 2017

    Trustee, Creditors Rip Constellation Ch. 11 Deal, Cite Jevic

    The Office of the U.S. Trustee and two creditor groups called Friday for the rejection of a case dismissal deal in Constellation Enterprises LLC’s Delaware Chapter 11, saying the settlement “launders” assets and runs afoul of a recent U.S. Supreme Court “structured dismissal” ruling.

  • May 5, 2017

    Central Grocers Gets OK To Use Lender Cash For A Week

    A Delaware bankruptcy judge gave Central Grocers Inc. the green light Friday to use lender cash to fund its Chapter 11 case, but the ability to use the money only lasts a week, as the debtor scrambles to find more substantial post-petition financing.

  • May 5, 2017

    GM Trust, Lenders Wrap Testimony Phase In $1.5B Asset Row

    A General Motors trust seeking to recover transfers related to a $1.5 billion term loan wrapped up testimony Friday, with no indication of how the judge may rule, in a bellwether bankruptcy court trial to determine the nature and value of the lenders' security interests in GM plant assets.

  • May 5, 2017

    Molycorp Investor Asks Chancery To Stop Mineral Rights Deal

    The investment firm that owns the majority of spinoffs from bankrupt mining company Molycorp took the majority owners of one spinoff to Delaware Chancery Court on Thursday to block the sale of the mineral rights to the only major rare earth mine in the U.S.

  • May 5, 2017

    Handling Of Lily Customer Refund Cash Draws Objections

    The handling of cash due to be refunded to customers of bankrupt flying drone maker Lily Robotics Inc. drew objections Friday in Delaware, with the company's unsecured creditors and one of the refund processors opposing aspects of the debtor's proposed cash management order.

  • May 8, 2017

    CORRECTION: Hinshaw Partner Seeks Sanctions After Price-Fix Suit Nixed

    A Hinshaw & Culbertson LLP attorney and his development company client urged a Florida federal judge Friday to sanction an attorney who brought a lawsuit accusing them of benefitting from another company's scheme to rig prices of certain Miami land parcels at a bankruptcy auction, saying he knew the lawsuit’s claims had no factual support. Correction: A previous version of this article incorrectly stated Cronig’s ties to Watson, Watson and Cronig's relationship to the alleged scheme, and JAWHBS' role in the bankruptcy case. The errors have been corrected.

  • May 5, 2017

    Reality Star Says Creditors Unharmed By Bankruptcy Scheme

    Federal prosecutors and the star of Lifetime’s reality television series “Dance Moms” again squared off in Pennsylvania federal court Thursday, over how harshly Abigale Lee Miller should be sentenced for hiding assets during bankruptcy proceedings.

  • May 5, 2017

    Bankrupt Energy Co. Reaches Deal In Shareholder Suit

    Bankrupt oil and gas company New Source Energy Partners LP has reached a settlement in principle with investors who claim they were misled about the company’s $40 million 2015 preferred share offering, according to documents filed in New York federal court Thursday.

  • May 5, 2017

    Dewey Jury Eyes Execs' Actions In $150M Bond Offering

    A New York jury deliberating fraud charges against two former Dewey & LeBoeuf LLP executives requested testimony Friday regarding what investors in a $150 million private bond offering were told about the ailing firm's finances and who told them.

Expert Analysis

  • Where’s The Fire? Viewing 363 Sales Through A Market Lens

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    The increasing use of Section 363 sales and the increasingly fast pace at which they are completed have drawn alarm and criticism from some industry participants and observers. However, these trends appear to be less alarming when viewed in the historical context of broader market factors, says Konstantin Danilov of Analysis Group Inc.

  • SNDA Agreements Benefit Both Tenants And Lenders

    Andrew Royce

    A default under a mortgage loan by a property owner can lead to undesirable consequences for both the tenant and the mortgage lender who becomes the new owner of the property. A subordination, nondisturbance and attornment agreement usually provides certain protections for the lender, but as long as both parties are willing to compromise, the end result is mutually beneficial, says Andrew Royce of Sherin and Lodgen LLP.

  • Data Analytics Now Cost-Effective For Smaller Firms

    Chris Paskach

    A recent survey found that nearly two-thirds of Am Law 200 firms are now using data analytics, compared to only about a tenth of regional and boutique firms. Yet the exploding market for data analytics technology in business is making these productivity tools available for any size matter or firm, say Christopher Paskach of The Claro Group and Douglas Johnston Jr. of Five Management LLC.

  • A Lesson From 6th Circ. On 'Applicable Nonbankruptcy Law'

    Elliot M. Smith

    As the Sixth Circuit explained in Hildebrand, it is incorrect to assume that “applicable nonbankruptcy law” means any applicable law outside of the Bankruptcy Code. State laws can still be considered “bankruptcy” laws depending on their content — an important distinction to be leveraged when faced with an otherwise unfavorable “applicable law,” says Elliot Smith of Squire Patton Boggs LLP.

  • Don’t Underestimate The Value Of An Internal Audit

    Justin Gwin

    Most legal and business leaders know that internal culture — including tone, operating style, standard of behavior and shared values that guide employee decisions — can make or break a firm. An internal audit can assess a firm's culture and identify potential issues within the organization, says Justin Gwin of Kaufman Rossin PA.

  • New Business Opportunities In Shared Workspaces

    Philippe Houdard

    For decades, law firms have taken on considerable expense to acquire or rent opulent office space, often with the intention of signaling seriousness and reliability to their clients. But more recently, solo practitioners and established firms alike have started breaking tradition, says Philippe Houdard, co-founder of Pipeline Workspaces.

  • Avoiding Errors When Dismissing A Bankruptcy Appeal

    Darren Azman

    The Seventh Circuit’s recent decision in Cox v. Nostaw serves as a useful reminder of Bankruptcy Rule 8008’s proper application in the context of a settlement that occurs pending appeal, and provides welcome guidance for a rule that has sparse case law, say Darren Azman and Michael Galen of McDermott Will & Emery LLP.

  • Why Puerto Rico Will Likely Rely On PROMESA Title III

    Richard J. Cooper

    Both the Puerto Rico oversight board and the new commonwealth administration have expressed a strong preference for restructuring the commonwealth’s debt through the use of Title VI of the Puerto Rico Oversight, Management and Economic Stability Act. However, Title VI is unlikely to provide a realistic path to restructure tax-supported debt, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • How 401(k) Benefits Can Attract Millennial Legal Talent

    Nathan Fisher

    If today’s law firms are willing to rethink their perceptions of millennials, they may see greater success in attracting and retaining new talent by giving the younger generation the kind of retirement planning benefits they want and need, says Nathan Fisher of Fisher Investments.

  • Why 2017 May Be A Steadier Year For Oil And Gas Firms

    Mark Chehi

    Oil and natural gas markets hit bottom last year, with oil prices 75 percent lower, and gas prices 80 percent lower, than at their 2014 peaks. Oil and gas firms responded with job and capital expense cuts, and many faced restructuring. But steady price growth during the past year has led to more stability, say attorneys from Skadden Arps Slate Meagher & Flom LLP.