Bankruptcy

  • October 27, 2017

    Up Next At High Court: Filing Deadlines, Ch. 11 Cramdowns

    The U.S. Supreme Court returns to the bench this coming week for the second oral argument session of the 2017-18 term, taking on a key question for plaintiffs who attach state law claims to lawsuits filed in federal court and a thorny legal issue for “cramdown” Chapter 11 bankruptcy proceedings. Here, Law360 highlights what to look out for.

  • October 27, 2017

    Top Dewey Cooperator Gets No Prison Time For Fraud

    The former finance director of Dewey & LeBoeuf LLP and star cooperating witness in the two criminal trials of the failed law firm’s top executives over a purported accounting fraud scheme was sentenced on Friday to no prison time, and instead was ordered to perform community service.

  • October 26, 2017

    Bankruptcy Software Co. Blasts Firm's Latest Antitrust Suit

    Software company Bankruptcy Management Solutions on Thursday urged an Illinois federal judge to dismiss a suit by a Chicago law firm accusing it of conspiring with competitors to agree on prices charged to Chapter 7 trustees, saying the firm's state-law claims are no different from federal antitrust ones that have already been dismissed twice.

  • October 26, 2017

    BNP Paribas Says Madoff Trustee's $156M Suit Must Fail

    French bank BNP Paribas SA on Wednesday urged a New York bankruptcy judge to refuse a motion by the bankruptcy trustee for Ponzi schemer Bernie Madoff’s investment company to make the bank and its affiliates pay $156 million for accepting funds from the scheme, saying they were fooled by Madoff like everyone else.

  • October 26, 2017

    MoFo Slams Sungevity Creditor's Ch. 11 Fee Claims

    Morrison & Foerster and a restructuring adviser, who were both flagged for submitting about $490,000 in allegedly unsupported fees during solar panel producer Sungevity Inc.’s Delaware Chapter 11, dismissed those objections Thursday as an unjustified clawback ploy designed to boost a buyer’s own recovery.

  • October 26, 2017

    Trump Signs Bill To Extend Bankruptcy Judgeships, Hike Fees

    President Donald Trump signed a disaster relief bill Thursday that included a provision extending several temporary bankruptcy judgeships and hiking fees for some bankruptcy filers.

  • October 26, 2017

    La Paloma Senior Creditors Defend Ch. 11 Plan Proposal

    The senior secured creditors of bankrupt power station owner La Paloma Generating Co. LLC defended the company’s proposed Chapter 11 plan Thursday in Delaware court, saying it worked hard to steer the case toward a confirmable plan while junior creditors sat idle.

  • October 26, 2017

    Westinghouse Lays Out Vision For Long-Term Ch. 11 Case

    Bankruptcy proceedings for Westinghouse Electric Co. LLC will carry on for a while, counsel for the beleaguered nuclear contractor indicated to a New York bankruptcy judge Thursday, saying they are sorting through claims and working to put an exit transaction together but will likely need certain extensions.

  • October 25, 2017

    Bankruptcy Appeals In District Court A Long Shot: Report

    Appealing bankruptcy court decisions in district court is a losing bet for the appellant, although your chances can vary wildly based on who’s sitting on the bench, according to a new report by legal analytics company Lex Machina.

  • October 25, 2017

    Fla. Court Revives Ch. 7 Trustee's Legal Malpractice Claims

    A Florida appeals court revived a bankruptcy trustee's negligence and malpractice claims against an attorney who had previously represented the debtor in a wrongful death suit, ruling Wednesday that she had standing to sue on his behalf.

  • October 25, 2017

    Unilife Ch. 11 Plan Gets Interim OK, Despite Gaps

    Medical device maker Unilife Corp. on Wednesday nailed down Delaware court dates for a confirmation hearing on its liquidating Chapter 11 plan, although estate values and creditor recovery estimates remain in flux, and unsecured creditors would not rule out a challenge.

  • October 25, 2017

    La Paloma Creditors Call Ch. 11 Plan Recoveries Unfair

    A group of second-lien creditors objected Tuesday in Delaware to the proposed Chapter 11 plan of power station owner La Paloma Generating Co. LLC, calling the plan unconfirmable and saying the recoveries proposed for unsecured creditors are not enough.

  • October 25, 2017

    Puerto Rico Gets Court's OK For Use Of FEMA Relief Funds

    The judge presiding over Puerto Rico’s bankruptcy-like cases on Wednesday approved the commonwealth’s stipulations for using federal disaster relief funds to help the island rebuild after Hurricane Maria, providing assurances that the money is to be used solely for cleanup efforts.

  • October 25, 2017

    RadioShack's E-Commerce-Focused Ch. 11 Plan Gets OK

    Electronics retailer RadioShack received approval from the Delaware bankruptcy court on Wednesday for its Chapter 11 plan of reorganization, which aims to shift the company’s focus to its web-based operations while reducing its debt load, and will push back issues relating to potential class claims lodged by workers laid off from its closing brick-and-mortar stores.

  • October 25, 2017

    AAI Lands Blow To Boeing Doc Bid In $1.2B Contract Row

    A special master on Wednesday recommended an Alabama federal judge reject Boeing Co.’s challenge to bankrupt Alabama Aircraft Industries Inc.’s claims of privilege regarding documents sought in a long-running dispute over a $1.2 billion U.S. Air Force contract.

  • October 25, 2017

    WL Homeowners Can Seek Insurance Recovery Over Defects

    A Delaware bankruptcy judge Tuesday ordered that homeowners pursuing defect claims against bankrupt WL Homes be allowed to continue pursuing claims under its insurance policies and avoid the automatic bankruptcy stay, but blocked them from pursuing claims against WL itself.

  • October 24, 2017

    United's DHL Counterclaims Preserved For Bankruptcy Court

    A New York federal judge on Tuesday declined to dismiss for good United’s counterclaims in DHL’s antitrust suit over air cargo surcharges, saying that granting the request would hurt the airline’s plan to pursue the claims in bankruptcy court.

  • October 24, 2017

    Toys R Us Cleared To Tap Remainder Of $3.1B DIP Loan

    Toys R Us won approval from a Virginia bankruptcy court on Tuesday to access the last remaining third of a $3.1 billion debtor-in-possession loan facility after negotiating with creditors to resolve payment concerns and stating that the company has positioned itself for a strong holiday sales season.

  • October 24, 2017

    Venoco Gets OK To Desert Calif. Pipelines Despite Local Fears

    Oil and gas driller Venoco LLC received Delaware Bankruptcy Court approval Tuesday to abandon a pair of oil and gas pipelines in Southern California over the objections of several state and local agencies.

  • October 24, 2017

    Deals Rumor Mill: Unilever, Siemens, Air Berlin

    The second round of bidding for the multibillion-dollar margarine and spreads unit of Unilever is set to begin, Siemens has hired three banks to help organize an IPO of its multibillion-dollar health care unit, and multiple suitors are vying for Air Berlin’s remaining assets.

Expert Analysis

  • 4 Ways Law Firms Can Help Battle Addiction

    Link Christin

    With more than a third of lawyers showing signs of problem drinking, and untold others abusing prescription drugs and other substances, it is time for law firms to be more proactive in addressing this issue, says Link Christin, executive director of the Legal Professionals Program at Caron Treatment Centers.

  • A Look At Latest 7th Circ. Opinion In Sentinel Management

    Aaron Boschee

    In its fifth trip to the Seventh Circuit, the Sentinel Management Group’s bankruptcy case recently explored complex issues bankruptcy practitioners often encounter in large Chapter 11 cases with financial services debtors, says Aaron Boschee of Squire Patton Boggs LLP.

  • A Law Firm Guide To Helping Victims Of Human Trafficking

    Sarah Dohoney Byrne

    Unlike victims of many crimes, human trafficking survivors often have complicated legal problems related to the experience of being trafficked — everything from criminal records to custody disputes to immigration obstacles. Many law firms already provide assistance in these areas and can easily transition resources and expertise, says Sarah Dohoney Byrne of Moore & Van Allen PLLC.

  • Bankruptcy Sale Does Not Obviate Chapter 91 Compliance

    Christopher Stracco

    In 975 Holdings LLC v. City of Egg Harbor, the New Jersey Tax Court recently extended the state's Chapter 91 dismissal provisions to properties purchased through a bankruptcy asset sale. A taxpayer should always respond to a Chapter 91 request to protect the rights of subsequent purchasers, say Christopher Stracco and Katharine Coffey of Day Pitney LLP.

  • Clarifying A Bankrupt Employer’s WARN Act Obligations

    Robert Lewis

    The Third Circuit issued a significant decision this month in Varela v. AE Liquidation that highlighted the interplay between the Bankruptcy Code and the Worker Adjustment and Retraining Notification Act. Employers should bear in mind the Third Circuit’s warning that the “probability” test it adopted to determine if a bankrupt employer must provide 60 days’ notice of a mass layoff is an objective one, says Robert Lewis of Baker McKenzie.

  • Diversity In The Legal Profession — A Stubborn Vision

    Robert Grey

    At the Leadership Council on Legal Diversity, we want to see, as founding member and Microsoft chief legal officer Brad Smith once stated, “a legal profession as diverse as the nation we serve.” We are not there yet — far from it — but we are beginning to put some numbers on the board, says Robert Grey, president of the Leadership Council on Legal Diversity.

  • Opinion

    New Salary History Laws Crimp Attorney Hiring Process

    Fredric Newman

    In prohibiting employers from asking potential hires about their previous salaries, lawmakers seek to "level the playing field." But there are real problems with the practicality, legality and enforceability of many of the salary history laws, says Fredric Newman, a founding partner of Hoguet Newman Regal & Kenney LLP.

  • 5 Tips For A Successful Legal Blog

    David Coale

    David Coale, leader of the appellate practice at Lynn Pinker Cox & Hurst LLP, shares his insights into what works — and what does not — when setting up and maintaining a legal blog.

  • Series

    Judging A Book: Kopf Reviews Posner's 'Federal Judiciary'

    Judge Richard Kopf

    There is a wonderful sketch of Seventh Circuit Judge Richard Posner dressed in a black robe with arms outstretched as if they were the billowing wings of a lean vulture. He is kicking a human brain down a hallway and wearing a half-smile that looks for all the world like a sneer. That sketch is the perfect metaphor for both Judge Posner and his new book, "The Federal Judiciary: Strengths and Weaknesses," says U.S. District Judge Ri... (continued)

  • Lehman Ruling Sets Stage For Future Subordination Contests

    John Stigi

    The Second Circuit's determination that former Lehman Brothers employees' restricted stock units are securities is important to creditors seeking to safeguard their priority position among bankruptcy claimants, say John Stigi and Christopher Bosch of Sheppard Mullin Richter & Hampton LLP.