Bankruptcy

  • March 12, 2024

    Judge OKs Ch. 7 Liquidation For Reverse Mortgage Co.

    A Delaware bankruptcy judge Tuesday converted Reverse Mortgage Investment Trust Inc.'s Chapter 11 case to a Chapter 7 liquidation, saying the debtor's plan administrator's request for conversion has "good and sufficient cause" under the Bankruptcy Code.

  • March 12, 2024

    Detroit Retirees Appeal Pension Gap Funding Pause

    Detroit's retired police and firefighters are appealing a ruling that allowed the city to continue pausing its pension gap funding payments, asking a Michigan federal court to reverse a bankruptcy judge's decision that extended a decade-long funding reprieve to 30 years.

  • March 12, 2024

    Ex-Boy Scout Can Seek $120M Award From Insurers

    A Delaware bankruptcy judge has ruled that a former Boy Scout can keep suing the organization's insurers to collect a $120 million abuse judgment against his ex-Scoutmaster, even though the court entered an injunction barring similar lawsuits.

  • March 12, 2024

    Trustee Claims MV Realty Used Ch. 11 To Dodge State Actions

    The U.S. trustee in the Chapter 11 bankruptcy of MV Realty argued on Tuesday that a Florida federal judge should dismiss or convert the case, alleging that the real estate company is simply using the action to stall state prosecutors and rack up fees against homeowners instead of reorganizing.

  • March 12, 2024

    Ex-Bankruptcy Judge Cites Judicial Immunity To Escape Suit

    Former Texas bankruptcy judge David R. Jones — whose failure to disclose a romantic relationship with an ex-Jackson Walker LLP attorney ignited a major judicial ethics scandal — has moved to dismiss a disgruntled investor's suit that claims Jones gave a Jackson Walker client preferential treatment during its Chapter 11 case, citing judicial immunity.

  • March 11, 2024

    Judge OKs Eye Care Tech Co.'s $8M DIP Request

    A Texas bankruptcy judge on Monday approved optometry software company Eye Care Leaders Portfolio Holdings LLC's request to draw on the remainder of its $8 million in debtor-in-possession funds for its Chapter 11 case, saying the company had given good reason to believe it was poised for a rewarding auction.

  • March 11, 2024

    Teamsters Can't Pause Discovery In $137M Fight With Yellow

    A Kansas federal judge shot down the Teamsters' request to pause the discovery process in a $137 million lawsuit accusing the union of holding up a necessary corporate restructuring at the now-bankrupt trucking company Yellow Corp., ordering the union to keep producing documents.

  • March 11, 2024

    Atty For Alex Jones' Infowars Gets OK To Bow Out Of Case

    A Texas bankruptcy judge on Monday approved a request by the lead attorney for Alex Jones' media company to step away from work on its Chapter 11 case following disputes with the debtor's chief restructuring officer, who the lawyer said withheld pay in retaliation for the conflict.

  • March 11, 2024

    NYC Youth Services Group Hits Ch. 11, Folds After 200 Years

    A 200-year-old nonprofit that provides foster care and youth education services in New York City filed for Chapter 11 protection, saying decreased demand for its programs at the onset of the COVID-19 pandemic ultimately led it to financial ruin.

  • March 11, 2024

    Canadian Oil Driller Seeks US Recognition Of Reorg Filings

    A Canadian operator of Wyoming oil and gas wells Monday asked a Delaware court to recognize its Canadian insolvency proceedings, saying it is out of cash, $92 million in debt and seeking a buyer after years of production problems.

  • March 11, 2024

    Hertz Tells Chancery To Reject $4B Buyback 'Hindsight' Suit

    Hertz directors weren't certain when they authorized $4 billion in stock buybacks that it would transfer control of the company to a private equity-backed shareholder, an attorney for Hertz told Delaware's Court of Chancery on Monday, urging the court to toss a shareholder's lawsuit over the buybacks.

  • March 11, 2024

    MoFo's NY Office Gains A Restructuring Atty From Dechert

    Morrison Foerster LLP announced Monday another addition to its business restructuring and insolvency group in New York, this time from Dechert LLP.

  • March 11, 2024

    Retailer The Body Shop Files For US Liquidation

    Buth-Na-Bodhaige Inc., better known as soap and lotion seller The Body Shop, filed for Chapter 7 liquidation in New York after its international parent filed for insolvency in the United Kingdom.

  • March 08, 2024

    Allegiance Coal Spars With Ch. 11 Lender Over $1.8M Fees

    A Delaware bankruptcy judge on Friday declined to rule on a petition from mining company Allegiance Coal USA to toss its debtor-in-possession lender's adversary proceeding demanding $1.8 million in fees, allowing more time to determine whether the fees have priority over the rest of the debtor's obligations.

  • March 08, 2024

    Experian Biased Jury In Credit Reporting Suit, 11th Circ. Told

    An attorney for a Florida resident who sued Experian alleging it inaccurately reported a discharged mortgage in his credit history told the Eleventh Circuit on Friday that a lower court judge allowed the company to introduce improper evidence at trial, arguing it caused jurors to deliver an unfavorable verdict against her client.

  • March 08, 2024

    Sorrento Gets OK For $2M Ch. 11 Funding Infusion, Asset Sale

    A Texas bankruptcy judge on Friday approved drug developer Sorrento Therapeutics Inc.'s bid for an asset sale and $2 million in funds to fuel its Chapter 11 case, saying they represented the only option outside of a transition to Chapter 7.

  • March 08, 2024

    Aircraft Parts Co. AeroCision Begins Ch. 11 Liquidation

    AeroCision, a troubled supplier of airplane components, has informed Delaware's bankruptcy court its Chapter 11 liquidation plan has gone into effect, distributing remaining assets of the business after it went on the auction block late last year.

  • March 08, 2024

    UBS Luxembourg Must Face $50M Madoff Clawback Suit

    UBS Luxembourg can't escape a lawsuit seeking to claw back nearly $50 million the bank allegedly redeemed from Bernard L. Madoff feeder fund Fairfield Sentry Limited at highly inflated values, a New York bankruptcy judge ruled on Friday. 

  • March 08, 2024

    Kwok Judge Lets Gov't Keep $302M In Crypto For Restitution

    A New York federal judge has denied a request to return more than $300 million in assets to holders of cryptocurrrency issued by bankrupt Chinese exile Ho Wan Kwok's Himalaya Exchange, finding that the federal government has a continued interest in the property it seized.

  • March 08, 2024

    Giuliani Creditors Ask To Investigate His Finances

    Former New York City Mayor Rudy Giuliani's creditors want to probe his finances, his businesses, his advisers and even defense funds paying some of his legal bills, telling a bankruptcy court in a filing late Thursday that his history of shirking discovery requests in other cases and concerns that he could be hiding assets warrant a formal investigation.

  • March 08, 2024

    BowFlex OK'd For April Auction, $37.5M Stalking Horse Bid

    Fitness equipment maker BowFlex Inc. received a New Jersey bankruptcy judge's approval Friday to sell its U.S. and Canada businesses at an auction next month, setting it up to repay its debtor-in-possession loan and draw up a Chapter 11 liquidation plan.

  • March 08, 2024

    Clifford Chance Adds Arnold & Porter Restructuring Duo

    Clifford Chance LLP is no exception to the wave of firms seeking restructuring talent in recent months, announcing Thursday that it's brought on two former Arnold & Porter Kaye Scholer LLP attorneys with a history of working on high-stakes reorganizations.

  • March 08, 2024

    Catholic Group Gets $2M Fee Award In Boy Scouts' Ch. 11

    A Delaware bankruptcy judge on Friday awarded an ad hoc group of Roman Catholic organizations just over $2 million in legal fees and expenses in the Boy Scouts of America's Chapter 11 case, saying it had made a substantial contribution to the group's bankruptcy plan.

  • March 07, 2024

    No Pretrial Win For Anyone In $1.3M Dish Network Print Fight

    A Colorado federal judge on Thursday rejected dueling summary judgment motions in a $1.3 million contract fight between a Dish Network unit and defunct printing company, finding the companies' "vehement disagreement" about simple facts of the case makes clear it can't be decided at this stage.

  • March 07, 2024

    Asbestos Claimants Refuel Bid To Chuck Bestwall Ch. 11

    Mesothelioma victims seeking recompense for asbestos exposure are taking another stab at throwing out the bankruptcy case of Georgia-Pacific unit Bestwall LLC, telling a North Carolina federal judge that the papermaker has abused the bankruptcy process to shield itself from liability.

Expert Analysis

  • Why 7th Circ. Libel Ruling Is Crucial For The Media

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    As more defamation plaintiffs attorneys argue that allowing a published statement to remain online after additional evidence of falsity emerges equates to actual malice, the Seventh Circuit's recent National Police Association v. Gannett opinion should be lauded by the media and online publishers as a favorable decision, say attorneys at Vedder Price.

  • Tips For Litigating Against Pro Se Parties In Complex Disputes

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    Litigating against self-represented parties in complex cases can pose unique challenges for attorneys, but for the most part, it requires the same skills that are useful in other cases — from documenting everything to understanding one’s ethical duties, says Bryan Ketroser at Alto Litigation.

  • 3 Cases Show Tensions Between Arbitration And Insolvency

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    The intersection of international arbitration and insolvency may influence the formulation of litigation strategy on a global scale, and several recent cases illustrate the need for counsel to understand how courts are varying in their approaches, say attorneys at Skadden.

  • Opinion

    Air Ambulance Ch. 11s Show Dispute Program Must Resume

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    Air Methods’ recent bankruptcy filing highlights the urgent need to reopen the No Surprises Act’s independent dispute resolution program for air ambulances, whose shutdown benefits insurance companies and hurts providers, says Adam Schramek at Norton Rose.

  • Pro Bono Work Is Powerful Self-Help For Attorneys

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    Oct. 22-28 is Pro Bono Week, serving as a useful reminder that offering free legal help to the public can help attorneys expand their legal toolbox, forge community relationships and create human connections, despite the challenges of this kind of work, says Orlando Lopez at Culhane Meadows.

  • Why Delaware ABCs Are No Longer As Easy As 1-2-3

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    In light of the Court of Chancery's recent focus on additional disclosures, the assignment for the benefit of creditors process in Delaware may no longer be as efficient as it once was, and companies should be prepared to provide significantly more information leading up to an ABC, say attorneys at Goodwin.

  • Diamond Sports Cases Shed Light On Executory Contracts

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    Recent Texas bankruptcy cases involving telecast fees payable by Diamond Sports to certain Major League Baseball teams provide a window into the dynamic relationship that can develop between debtors and counterparties under some executory contracts, say Joseph Badtke-Berkow and Robin Spigel at Allen & Overy.

  • Series

    Playing In A Rock Cover Band Makes Me A Better Lawyer

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    Performing in a classic rock cover band has driven me to hone several skills — including focus, organization and networking — that have benefited my professional development, demonstrating that taking time to follow your muse outside of work can be a boon to your career, says Michael Gambro at Cadwalader.

  • Series

    The Pop Culture Docket: Judge Espinosa On 'Lincoln Lawyer'

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    The murder trials in Netflix’s “The Lincoln Lawyer” illustrate the stark contrast between the ethical high ground that fosters and maintains the criminal justice system's integrity, and the ethical abyss that can undermine it, with an important reminder for all legal practitioners, say Judge Adam Espinosa and Andrew Howard at the Colorado 2nd Judicial District Court.

  • Balancing Justice And Accountability In Opioid Bankruptcies

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    As Rite Aid joins other pharmaceutical companies in pursuing bankruptcy following the onslaught of state and federal litigation related to the opioid epidemic, courts and the country will have to reconcile the ideals of economic justice and accountability against the U.S. Constitution’s promise of a fresh start through bankruptcy, says Monique Hayes at DGIM Law.

  • Proactive Measures While NY Foreclosure Law Is In Limbo

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    While questions about the scope and constitutionality of New York's Foreclosure Abuse Prevention Act might not be resolved by courts for years, lenders, borrowers and other interested parties can take action to protect their rights and potentially expedite appellate review, say Allison Schoenthal and Andrew Kim at Goodwin.

  • Unearthing The Lesser-Known 'Buried Facts' Doctrine

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    A New York federal judge’s recent suggestion that the “buried facts” doctrine may be applicable in the fraud trial of FTX cofounder Sam Bankman-Fried should serve as a reminder to attorneys in all kinds of cases involving corporate disclosures that this lesser-known rule could torpedo their defense, say Corban Rhodes and Li Yu at DiCello Levitt.

  • Opinion

    Newman Suspension Shows Need For Judicial Reform

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    The recent suspension of U.S. Circuit Judge Pauline Newman following her alleged refusal to participate in a disability inquiry reveals the need for judicial misconduct reforms to ensure that judges step down when they can no longer serve effectively, says Aliza Shatzman at The Legal Accountability Project.

  • 9th Circ. Ruling Expands The Horizons Of Debt Discharge

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    The Ninth Circuit Bankruptcy Appellate Panel’s recent ruling in RS Air v. NetJets demonstrates that creditors should not be quick to conclude that their recoveries are limited if a debtor commences bankruptcy and receives a discharge, and should instead consider other potential paths for recovery, like alter ego claims, say Dania Slim and Claire Wu at Pillsbury.

  • How And Why Your Firm Should Implement Fixed-Fee Billing

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    Amid rising burnout in the legal industry and client efforts to curtail spending, pivoting to a fixed-fee billing model may improve client-attorney relationships and offer lawyers financial, logistical and stress relief — while still maintaining profit margins, say Kevin Henderson and Eric Pacifici at SMB Law Group.

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