We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Bankruptcy

  • December 17, 2018

    DOJ Faults McKinsey Disclosures In Westmoreland Ch. 11

    The U.S. Trustee’s Office has asked a Texas bankruptcy court to turn down Westmoreland Coal Co.’s request to hire McKinsey Recovery and Transformation Services as a Chapter 11 adviser, saying the consulting firm’s disclosures are insufficient.

  • December 17, 2018

    2 Years For Bookkeeper Whose $3.4M Theft Sank Lit Agency

    A Manhattan federal judge sentenced a bookkeeper to two years in prison Monday for filching $3.4 million over seven years from Donadio & Olson Inc., a literary agency known for representing "Fight Club" author Chuck Palahniuk, and driving it into bankruptcy.

  • December 14, 2018

    US Trustee Fights Gibson's Bid To End Ch. 11 Cases

    The U.S. Trustee's Office has asked the Delaware bankruptcy court to hold off on Gibson Brands Inc.’s bid to close its Chapter 11, saying "a number of critical tasks" remains undone and that the company is attempting to improperly consolidate its 12 cases into one.

  • December 14, 2018

    $50M Released Early For 2nd-Priority Dow Implant Victims

    The Sixth Circuit has found the $2.35 billion Dow Corning settlement trust for women with defective breast implants can begin paying out $50 million in second-tier claims early, saying there was sufficient evidence that there will be money left over when the last of the first-tier claims are filed next year.

  • December 14, 2018

    Sears, Cyrus Blast Swap Bidder's Objection To Notes Sale

    Sears Holding Corp. and debtor-in-place lender Cyrus Capital Partners have asked a New York bankruptcy court to reject a call to vacate the sale of $900 million in intercompany medium-term notes to Cyrus, calling it a ploy by a failed bidder to change the results.

  • December 14, 2018

    David's Bridal Creditors Slam Evercore’s $13M Ch. 11 Fee

    Creditors of bankrupt David’s Bridal Inc. called for a 50 percent cut to a proposed $13.1 million Delaware Chapter 11 retention fee for investment banker Evercore Group LLC on Friday, citing “double dipping” and other allegedly nonstandard fee calculations.

  • December 14, 2018

    OneJet Lists Scant Assets, $43M Debt In Ch. 7 Filing

    Some computers, airstairs and maintenance vans of unknown value were all that defunct airline OneJet Inc. has listed in a Chapter 7 filing in Pennsylvania bankruptcy court against $43 million in debts, including dozens of loans from individuals worth $75,000 to $350,000 each.

  • December 14, 2018

    Aegean Marine Files Deal To Reorganize With $135M Sale

    Aegean Marine Petroleum Network Inc. on Thursday filed an outline of plans to reorganize in Chapter 11 by selling the marine refueling business to entities owned by Oaktree Capital Management LP and Hartree Partners LP for $135 million, a departure from an earlier proposal to sell to its competitor.

  • December 14, 2018

    The 6 Biggest Law Firm Mergers Of 2018

    The legal sector was rocked by announcements of six massive law firm mergers in 2018, adding to a string of behemoth combinations over the past decade that many believe are leading to the consolidation of the industry into a handful of giants.

  • December 13, 2018

    Catalina Secures First Court OKs For $1.9B Del. Ch. 11

    Point-of-sale retail coupon and "big data" retailing pioneer Catalina Marketing Corp. secured its first Chapter 11 approvals Thursday for a prepackaged plan that will wipe away about 85 percent of its $1.9 billion debt load.

  • December 13, 2018

    Toys R Us Wins Ch. 11 Clearance For $760M Sale Of Asia Biz

    Toys R Us Inc. won approval from a Virginia bankruptcy court on Thursday to sell the majority stake of its business operations in Asia to a group of senior investors for $760 million as part of a Chapter 11 liquidation plan that provides creditor recoveries and releases potential claims between stakeholders.

  • December 13, 2018

    Dixie Electric Ends Quick, $300M Trip Through Del. Ch. 11

    Oil field electricity supplier Dixie Electric secured Delaware bankruptcy court confirmation Thursday for a $300 million Chapter 11 debt-to-equity restructuring, nailing down final approvals 42 days after opening its case.

  • December 13, 2018

    NJ Health Care Co. Execs Indicted In $300M Investment Fraud

    Four former executives of the bankrupt Constellation Healthcare Technologies Inc. have been indicted for bilking investors out of $300 million in connection with a merger designed to take their publicly traded company private, New Jersey federal prosecutors said Thursday.

  • December 13, 2018

    Vereit Insurers Must Cover SEC Probe, Class Action Costs

    A Delaware state court judge has ruled real estate trust Vereit Inc.'s insurers must cover the costs the company's investment manager incurred defending against an investor class action and a U.S. Securities and Exchange Commission probe aimed at both companies.

  • December 13, 2018

    1st Circ. OKs 30-Day Auto Stay Limit For Repeat Ch. 13 Filers

    Debtors who find themselves in Chapter 13 bankruptcy twice within a year only get the benefits of the litigation-blocking automatic stay for 30 days on the second go-around, after which it terminates completely, the First Circuit ruled Wednesday, affirming two lower courts’ decisions.

  • December 13, 2018

    Open Road Films' Ch. 11 Sale Delayed By Assumption Issue

    A Delaware bankruptcy judge delayed approval of the Chapter 11 sale of Open Road Films LLC on Thursday saying the parties needed to resolve outstanding contract cure and assumption issues before an amended sale order could be signed.

  • December 13, 2018

    Restoration Co. Sues Bankrupt Pa. Mall Over $880K Flood Bill

    The owners of a bankrupt and mostly empty Pittsburgh-area shopping mall owe more than $880,000 to a disaster recovery firm for cleaning up after a January flood, according to a lawsuit filed in Pennsylvania federal court Thursday.

  • December 13, 2018

    6 Things That Rocked The Legal Industry In 2018

    From a pitched battle over a U.S. Supreme Court nomination to a sea change in the way that legal employers consider their attorneys' mental health and well-being, these were some of the most significant events and trends to hit the legal industry in 2018.

  • December 12, 2018

    Sears Defends $25M Exec Bonuses From Trustee In Ch. 11

    Sears Holding Corp. on Wednesday asked a New York bankruptcy court to reject a U.S. Trustee’s Office challenge to its proposal to pay $25 million in bonuses to top executives and employees, saying it's established the bonuses are fair and needed.

  • December 12, 2018

    Parker Drilling Enters Voluntary Prearranged Ch. 11

    Offshore drilling services provider Parker Drilling Co. Wednesday filed for Chapter 11 in a Texas bankruptcy court with what it said was a prepackaged plan to cut its funded debt by two-thirds.

Expert Analysis

  • BVI Companies May See More 'Just And Equitable' Petitions

    Andrew Willins

    Courts in the British Virgin Islands have mostly resisted the temptation to appoint liquidators in soft wind-downs. However, a recent decision in Delco Participation v. Green Elite has opened the door to more "just and equitable" liquidation petitions, say Andrew Willins and Eliot Simpson of Appleby.

  • Florida Courts Are Prepared For A New Wave Of Foreclosures

    Victor Petrescu

    For Florida practitioners who experienced the foreclosure crisis that swept through the state beginning in 2008, the recent uptick in foreclosure filings may feel ominous. However, Florida's foreclosure jurisprudence has evolved at an incredible pace, capable of expediting the process tremendously if another crisis arises, says Victor Petrescu of Levine Kellogg Lehman Schneider & Grossman LLP.

  • Transitioning Cos. Can't Forget Pending Green Cards

    Hector Chichoni

    When sponsoring foreign national employees for employment-based lawful permanent residence in the U.S., there are many factors an employer must consider if it is restructuring, relocating or downsizing its operations to avoid the consequences of noncompliance under current U.S. immigration law, says Hector Chichoni of Duane Morris LLP.

  • Calif.'s New Rules For Lawyers Move Closer To ABA Model

    Mark Loeterman

    The first comprehensive overhaul of California's Rules of Professional Conduct in nearly 30 years becomes operational on Nov. 1. Some of the new rules mirror the model language used by the American Bar Association, but many continue to reflect California’s unique approach to certain ethical questions, says Mark Loeterman of Signature Resolution LLC.

  • Know The Limits To Atty Public Statements During A Trial

    Matthew Giardina

    The balancing act between protecting attorneys’ speech rights and ensuring unbiased adjudications was highlighted recently in two cases — when Michael Cohen applied for a restraining order against Stephanie Clifford's attorney, and when Johnson & Johnson questioned whether a Missouri talc verdict was tainted by public statements from the plaintiffs' counsel, says Matthew Giardina of Manning Gross & Massenburg LLP.

  • Clarifying The Scope Of Bankruptcy Code 3rd-Party Injunction

    Craig Goldblatt

    The Third Circuit’s decision last month in W.R. Grace contains valuable lessons for insurers on the benefits that can be obtained by a third-party injunction issued under Section 524(g)(4) of the Bankruptcy Code, say Craig Goldblatt and Nancy Manzer of WilmerHale.

  • In Calif., Questions Remain On Law Firm Conflict Waivers

    Richard Rosensweig

    In Sheppard Mullin v. J-M Manufacturing Co., the California Supreme Court ruled last month that a law firm's failure to disclose a known conflict with another current client did not categorically disentitle the firm from recovering fees. But the court didn’t provide hoped-for guidance on how to write an enforceable advance conflict waiver, says Richard Rosensweig of Goulston & Storrs PC.

  • Q&A

    A Chat With Faegre Client Development Chief Melanie Green

    Melanie Green

    In this monthly series, Amanda Brady of Major Lindsey & Africa interviews management from top law firms about the increasingly competitive business environment. Here we feature Melanie Green, chief client development officer at Faegre Baker Daniels LLP.

  • Equitable Mootness Is Alive And Well In Chapter 9

    Richard Cooper

    Last month's opinion in Bennett v. Jefferson County brings the Eleventh Circuit in line with other courts that have found that the equitable mootness doctrine should apply in Chapter 9. The decision may be particularly relevant in Puerto Rico's ongoing restructuring proceedings, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Q&A

    Back To School: Widener's Rod Smolla Talks Free Speech

    Rodney Smolla

    In this new series featuring law school luminaries, Widener University Delaware Law School dean Rodney Smolla discusses teaching philosophies, his interest in First Amendment law, and arguing before the U.S. Supreme Court in Virginia v. Black.