Bankruptcy

  • May 12, 2022

    Nonprofit Advice To Debtors Is Protected Speech, Court Told

    A legal tech nonprofit told a New York federal judge on Thursday that its plan to offer guidance to low-income debtors in debt collection proceedings must be allowed to go forward, arguing the advice is protected by First Amendment rights and does not run afoul of state laws limiting who can practice law.

  • May 12, 2022

    'Judge Travis' Chides Kennedys Over Dissolution Case Filings

    A Delaware vice chancellor on Thursday took attorneys from Kennedys to task for a lack of detail in filings for a manufacturer they are representing in a corporate dissolution proceeding under Delaware's General Corporation Law.

  • May 12, 2022

    LATAM Inks Deal With Unsecured Creditors On Ch. 11 Plan

    LATAM Airlines has filed a revised Chapter 11 plan in a New York bankruptcy court incorporating a settlement providing $212 million or more in cash for the Chilean carrier's unsecured creditors and giving bondholders the opportunity to backstop its equity offering.

  • May 12, 2022

    No Cover For $1B Ponzi Scheme Audits, Insurers Say

    Zurich Insurance PLC said it does not have to pay out to a corporate services company for negligence lawsuits over its auditing of a business involved in a $1 billion Ponzi scheme because its lawyer knew that it was likely to be sued before it entered into the policy.

  • May 11, 2022

    Coinbase CEO Blames SEC Memo For Bankruptcy Risk Alarm

    Coinbase has updated its risk disclosures to reflect new U.S. Securities and Exchange Commission guidance about holding cryptocurrencies, CEO Brian Armstrong said as he sought to calm customers' nerves about what would happen to their holdings in the event of a bankruptcy.

  • May 11, 2022

    Judge Approves 3rd-Party Releases In Stoneway Ch. 11 Plan

    A New York bankruptcy judge on Wednesday approved Argentine power plant owner Stoneway Capital Corp.'s Chapter 11 plan, finding that creditors had more than sufficient notice to allow them to opt out of the plan's third-party releases.

  • May 11, 2022

    J&J Ch. 11 Talc Claimants Get Nod For 3rd Circ. Appeal

    Claimants of Johnson & Johnson's bankruptcy talc unit received approval Wednesday from the Third Circuit Court of Appeals to skip an intervening appellate level and bring their appeal of a bankruptcy court order denying their motions to dismiss the debtor's Chapter 11 case directly to the circuit court.

  • May 11, 2022

    Ex-Platinum Execs Can't Get New Trial In Fraud Case

    A Brooklyn federal judge refused to acquit or retry two former executives of defunct hedge fund Platinum Partners who were convicted of defrauding bondholders of an oil and gas company, saying the pair have not demonstrated "the jury's verdict presents a manifest injustice."

  • May 11, 2022

    Surfside Victims Reach $997M In Settlements

    Attorneys representing the victims of the Champlain Towers South condominium collapse in Surfside, Florida, announced Wednesday that they had secured $997 million in proposed settlements, ending the consolidated claims against all but one defendant.

  • May 11, 2022

    'Nefarious' Doctrine Cut Puerto Rico Pensions, 1st Circ. Told

    The full First Circuit should re-examine a proposed overhaul to Puerto Rico pensions to avoid broadening the "nefarious" line of cases that leave territorial inhabitants lacking the same rights as their U.S. brethren, a group of teachers' associations argued Tuesday.

  • May 11, 2022

    Armstrong Flooring Gets OK For Temporary Cash Use

    A Delaware bankruptcy judge Wednesday granted flooring supplier Armstrong Industries temporary access to cash collateral to allow it to pay employees and vendors while it tries to resolve lender objections to its proposed $30 million bankruptcy financing package.

  • May 11, 2022

    Cypress Environmental Adds Cash Pool To Ch. 11 Plan

    Energy sector inspection service Cypress Environmental Partner LP told a Texas bankruptcy judge Wednesday that it has made changes to its prepackaged Chapter 11 plan to address concerns raised earlier this week by the court over the lack of compensation going to creditors being asked to grant third-party releases.

  • May 11, 2022

    3rd Circ. Rules ACA Payment A Tax In Bankruptcy Cases

    The Third Circuit held Wednesday that a "shared responsibility payment" for individuals who do not maintain a minimum amount of health insurance coverage under the Affordable Care Act counts as a tax for bankruptcy purposes, the newest ruling on an issue with varying precedent nationwide.

  • May 10, 2022

    Harney Westwood Advises On Luckin Coffee's Cayman Reorg

    Global offshore law firm Harney Westwood & Riegels announced its role in achieving a $460 million restructuring of Chinese company Luckin Coffee Inc. in Cayman Islands court, saying it acted as local counsel for the company as it addressed its note debt and class action claims from investors alleging financial fraud.

  • May 10, 2022

    Sanitizer Co. Gets OK For Ch. 11 Loan To Destroy Products

    A Texas bankruptcy judge Tuesday gave hand sanitizer distributor 4E Brands approval to accept $2.5 million in bankruptcy financing from its parent company to pay for the destruction of tainted products, saying an objecting creditor failed to make its case.

  • May 10, 2022

    Goldman Sachs Unit Cleared In $54M Ruby Tuesday Suit

    A Tennessee district court judge ruled Tuesday that a Goldman Sachs unit did not interfere with a real estate developer's lease deal with Ruby Tuesday nor did the investment platform violate trade secret statutes, clearing the unit of a $54 million lawsuit brought by the developer.

  • May 10, 2022

    Week In Bankruptcy: Mass Torts Stumble, New Ch. 11 Crop

    The past week has seen a trio of large Chapter 11 cases hit the dockets as debt holders become less permissive, the Diocese of Camden meet a wall of opposition from its insurers who aren't on board with a new $90 million plan to deal with sex abuse claims, and entities related to conspiracy theorist Alex Jones face challenges from families of Sandy Hook victims to their bankruptcy filings. This is the week in bankruptcy.

  • May 10, 2022

    Ch. 11 Cheat Sheet: Talen Energy Supply

    Texas-based electricity producer Talen Energy Supply entered Chapter 11 in Texas, saying increasing hedging collateral requirements caused by rising natural gas prices put it in a liquidity squeeze, leading it to reach a restructuring agreement with bondholders to try to trim $3.2 billion in debt.

  • May 10, 2022

    Talen Energy Hits Ch. 11 With Deal To Cut $3.2B In Debt

    Power generator Talen Energy Supply filed for Chapter 11 in a Texas bankruptcy court Tuesday, saying rising natural gas prices led it to seek an agreement with its creditors for a recapitalization aimed at cutting $3.2 billion of its $4.4 billion in funded debt.

  • May 09, 2022

    Ch. 11 Cheat Sheet: Cypress Environmental Partners LP

    Oklahoma-based Cypress Environmental Partners LP blames a pair of downturns in energy in 2015 and 2020 for a drop in revenue that left if unable to meet its debt obligations. It reached a deal with its secured lenders to support a prepackaged debt swap of $58.8 million in outstanding loans.

  • May 09, 2022

    ION Geophysical Gets OK For Ch. 11 Plan Vote

    A Texas bankruptcy judge Monday gave offshore drilling support company ION Geophysical Corp. permission to send its Chapter 11 plan out for a vote and to tap into $2.5 million in bankruptcy financing after hearing it had resolved objections raised by unsecured creditors.

  • May 09, 2022

    CBD Co. Doubles Down On Bid For Sanctions Against Cooley

    Pure Hemp Collective Inc. has reasserted its bid for the Federal Circuit to sanction Cooley LLP over its work representing rival company United Cannabis Corp., stating that United Cannabis' recent demand for sanctions on Pure Hemp is "further evidence of the vexatious litigation tactics" the law firm used.

  • May 09, 2022

    Ch. 11 Cheat Sheet: Armstrong Flooring

    Following losses due to inflation, supply chain problems and tough credit terms, Pennsylvania flooring supplier Armstrong Industries hit Chapter 11 in Delaware in the wake of a failed attempt to find a buyer, saying it will seek to sell some or all of its assets in Chapter 11.

  • May 09, 2022

    1st Circ. Says Tribes Lack Immunity Under Bankruptcy Code

    A divided First Circuit panel has ruled that Native American tribes aren't exempt from federal law barring suits against debtors once they file for bankruptcy, saying the U.S. Bankruptcy Code "unequivocally strips tribes" of their sovereign immunity to suit.

  • May 09, 2022

    Calif. Bar, Girardi Trustee Reach Deal On Records Handover

    The California bar and the trustee for the bankrupt Girardi Keese firm asked a federal judge on Monday to approve a deal in which the trustee will share records with the bar for an ongoing probe of its handling of past complaints against Thomas V. Girardi.

Expert Analysis

  • How Boards Can Address Insurance-Based Caremark Risk

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    Recent bankruptcy proceedings, such as Purdue Pharma's, highlight that insurance is critical to ensuring an organization's solvency and ability to pay claimants, making it important for boards to prioritize adequate insurance and risk-management as core Caremark responsibilities, say attorneys at Cooley.

  • Rethinking E-Discovery Readiness Amid Rise Of Collab Tools

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    Online collaboration platforms and instant messaging tools are quickly becoming the primary mode of internal business communications, leading to disputes around discoverability of data on these platforms and underscoring the need for new preservation processes to ensure compliance with discovery obligations, say Jay Carle and Ryan Tilot at Seyfarth.

  • Series

    Embracing ESG: Uber Counsel Talks Safety Standards

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    Katie Waitzman at Uber discusses how in-house counsel can use environmental, social and corporate governance principles to bridge risk and innovation, as exemplified by the company’s recent women’s safety initiatives.

  • Opinion

    Prospectively Appointing Jackson To High Court Is Unlawful

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    President Joe Biden should rescind his prospective appointment of Judge Ketanji Brown Jackson to the U.S. Supreme Court as the decision contradicts the court's reasoning in Marbury v. Madison, raises gravely troubling issues regarding presidential discretion and brings a serious question about her legitimacy as a justice, says attorney John Reeves.

  • Bankruptcy Rulings Highlight Split On Excusable Neglect

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    The Fifth Circuit's recent decision in CJ Holding, and a New York federal bankruptcy court's recent decision in Westinghouse, contribute to a growing split on the weight assigned to various factors when courts decide what may constitute excusable neglect in bankruptcy filing, say attorneys at Cullen Dykman.

  • Perspectives

    Time To Fix Legal Industry's Environmental Pro Bono Problem

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    As we observe Earth Month, it's sobering to note that pro bono environmental law work lags behind other practice areas — but the good news is that there are numerous organizations that can help lawyers get connected with environment-related pro bono projects, says Matthew Karmel at Riker Danzig.

  • Ruling Highlights Nexus Of Water Rights, Bankruptcy Law

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    A Utah bankruptcy court's recent Sugarloaf Holdings decision analyzes water rights in the context of bankruptcy — a little-explored intersection of law that will grow more important as dwindling water resources lead to an increase in disputes — and provides a road map for future litigants tackling similar issues, says Lisa Tancredi at Womble Bond.

  • Remembering An Underappreciated Legal Skill — Listening

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    Education around listening skills is often neglected amid the dominance of visual media and written communication, and failed lawyering often comes down to an inability to listen accurately, so educators and law firms must prioritize the skill in their training programs, says James Flynn at Epstein Becker.

  • Attorneys Can Promote Trade, Security Amid Global Conflict

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    As nations take sovereign action to fight Russia’s aggression against Ukraine and the international rule of law, attorneys can combine their legal and business tools to help the global systems of trade and security in these troubled times, say Thomas Grant at Cambridge University and Scott Kieff at George Washington University.

  • Series

    The Future Of Legal Ops: Reining In Outside Counsel Costs

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    In-house legal departments are under increasing pressure to control spending on outside counsel, but traditional cost-cutting methods — law firm panels, alternative fee arrangements and alternative legal service providers — are limited, making it necessary to establish a more competitive law firm engagement process, say John Burke and Vincenzo Purificato at UBS.

  • When Congress Seeks Cos.' Nonpublic Info From Regulators

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    Increasingly, congressional investigators seek out private parties' confidential documents from the federal agencies that regulate them — and because Congress is uniquely empowered to override nondisclosure protections surrounding nonpublic information, companies must understand the rules and risks involved, say attorneys at Covington.

  • In Early Mediation, Negotiate With Empathy, Not Threats

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    With courts encouraging early settlement conferences to tackle the COVID-19 backlog, parties should consider that authenticity, honesty and the ability to see beyond one's own talking points are far more persuasive tools than threats of a distant possible determination by a court or arbitrator, says Sidney Kanazawa at ARC.

  • Addressing Problematic Drinking In The Legal Profession

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    To curb problematic drinking, on the rise during the pandemic, legal employers should implement comprehensive responsible drinking policies that are taken seriously by firm leadership, and provide alternatives for creating a healthy workplace culture, says Anne Brafford at the Institute for Well-Being in Law.

  • Transforming Law Firms' Diversity Intent Into Real Progress

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    In order for law firms to convert their diversity and inclusion activity into lasting advancements, they must prioritize accountability and transparency when crafting policies, and take steps to engage with attorneys and staff at all levels, say Jacqueline Simonovich at Weintraub Tobin and Lindsey Mignano at Smith Shapourian.

  • 2 Years Of Small Biz Bankruptcy Law: Winners And Losers

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    In light of the second anniversary of the Small Business Reorganization Act's passage, Brian Shaw at Cozen O'Connor categorizes the beneficial and detrimental effects of the law meant to provide a less burdensome path to small business restructuring, and describes the data needed before the law can be deemed a success.

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