Bankruptcy

  • June 02, 2020

    PG&E Resolves Fire Victims' Ch. 11 Plan Objections

    PG&E Corp. and a committee representing victims of wildfires blamed on the utility told a California bankruptcy court Tuesday that they had resolved the committee's objections to PG&E's Chapter 11 plan, including a stock valuation question.

  • June 02, 2020

    Pot Co. Green Growth Gets OK To Start Insolvency Sale

    Beleaguered cannabis company Green Growth Brands will hit the auction block after a Canadian court on Tuesday cleared its asset sale plan and approved a stalking horse bid that would see creditors buy the company for an estimated $105 million.

  • June 02, 2020

    Libbey Glass Cleared To Tap Into $30M In New Ch. 11 Funds

    A Delaware judge on Tuesday gave glass tableware maker Libbey Glass Inc. the go-ahead to tap into $30 million in new post-petition financing in its Chapter 11 so the company can continue negotiating with creditors to restructure its roughly $500 million in debt.

  • June 02, 2020

    LASIK Vision Institute Owner Can Tap $5.7M In Ch. 11 Funds

    LASIK Vision Institute owner LVI Intermediate Holdings Inc. secured interim approval in Delaware for $5.7 million of a proposed $27.5 million in Chapter 11 debtor-in-possession financing during an initial hearing Tuesday on plans for a company restructuring and sale effort.

  • June 02, 2020

    Templar Energy Starts Ch. 11 With Interested Bidders

    Bankrupt oil and gas exploration company Templar Energy kicked off its Chapter 11 case Tuesday in Delaware with as many as nine indications of interest from potential buyers as it seeks to liquidate its assets.

  • June 02, 2020

    Cannabis Fund Buys Insolvent Canadian Grower For $10M

    A Canadian court on Tuesday approved the nearly $10 million sale of debt-ridden marijuana grower James E. Wagner Cultivation Corp. to a cannabis lender, in a deal the company said will prevent a bankruptcy.

  • June 02, 2020

    LSC Communications OK'd For DIP Loan, Executive Bonuses

    Commercial printing company LSC Communications got the nod from a New York bankruptcy judge Monday to accept $100 million in Chapter 11 financing and to pay up to $14 million in executive bonuses.

  • June 02, 2020

    6th Circ. Says 401(k) Funds Won't Go To Bankruptcy Debts

    An Ohio woman doesn't have to pay off her unsecured debts using her monthly tax-advantaged retirement plan contributions that she began withholding from her income before filing for Chapter 13 bankruptcy, the Sixth Circuit said in a split decision.

  • June 01, 2020

    Surety Firms Lose Bid To Block Fees In Cloud Peak Ch. 11

    A Delaware bankruptcy judge on Monday approved a request by coal mining company Cloud Peak Energy to pay $26 million in fees to its Chapter 11 professionals over objections by insurers insisting $280 million in surety bond claims should get equal priority.

  • June 01, 2020

    Discount Retailer Fred's Sees Ch. 11 Liquidation Plan OK'd

    A Delaware judge on Monday signed off on discount retailer Fred's Inc. Chapter 11 plan, clearing the way for distributions to be made to creditors using proceeds from asset sales, with unsecured creditors expected to see minimal recovery.

  • June 01, 2020

    Avenatti's Calif. Trial Pushed To December Over COVID-19

    A California federal judge on Monday delayed attorney Michael Avenatti's embezzlement trial by three months, setting a Dec. 8 criminal jury trial while acknowledging the ongoing COVID-19 health crisis makes it difficult to predict with any certainty if that date will stick.

  • June 01, 2020

    Supreme Court Allows $3B Madoff Clawback Ruling To Stand

    The U.S. Supreme Court on Monday declined to hear an appeal of a Second Circuit ruling that the trustee for Bernie Madoff's fraudulent investment firm can claw back billions in Ponzi scheme proceeds transferred from foreign Madoff feeder funds to other foreign parties.

  • June 01, 2020

    COVID-19 Sends Glassware Maker Libbey Into Bankruptcy

    Glass tableware maker Libbey Glass Inc. filed for Chapter 11 protection in Delaware on Monday with plans to restructure its roughly $500 million in debt, citing the COVID-19 outbreak's impact on the company's already existing liquidity strain.

  • June 01, 2020

    Lasik Vision Institute Hits Ch. 11 After COVID-19 Cash Crunch

    The Florida-based company that runs The Lasik Vision Institute and TLC Laser Eye Centers filed for Chapter 11 protection in Delaware, saying the coronavirus pandemic shutdown on nonessential medical services exacerbated an already-existing liquidity crunch and forced the company into bankruptcy.

  • June 01, 2020

    Templar Energy Hits Ch. 11 Over COVID-19 Impact On Oil Price

    Oklahoma-based oil and gas driller Templar Energy filed for Chapter 11 protection in Delaware Monday with a plan to liquidate its assets after reeling from oil and gas price disruptions prompted by the COVID-19 pandemic.

  • June 01, 2020

    High Court Upholds Puerto Rico Financial Oversight Board

    The U.S. Supreme Court on Monday unanimously ruled that members of Puerto Rico's Financial Oversight and Management Board do not require U.S. Senate approval because the board's handling of the island's $125 billion bankruptcy is limited to Puerto Rico's fiscal issues and it only exercises local, territorial authority.

  • May 29, 2020

    Neiman Marcus Ch. 11 Examiner Bid Dropped After Criticism

    A Neiman Marcus noteholder withdrew its request Friday for a probe of a pre-Chapter 11 transfer of $1 billion to the retailer's private equity owners, after a Texas bankruptcy judge criticized both the motion and the performance of a Neiman director on the stand.

  • May 29, 2020

    Calif. Judge Probes Avenatti Atty Efficacy Over Virus Worries

    A California federal judge questioned whether counsel for Michael Avenatti was able to handle his criminal defense amid the COVID-19 pandemic, zeroing in on the attorney's remarks in a recent status report that his ability to prepare for trial has been "deeply impacted."

  • May 29, 2020

    PG&E Objector Suggests Weil Atty's Son Raises Conflict

    A bench trial over whether to confirm Pacific Gas and Electric Co.'s $58 billion bankruptcy reorganization plan entered its third day Friday, with an objector questioning whether a conflict exists because a Weil LLP attorney representing PG&E is the father of a director of the company running its confirmation process.

  • May 29, 2020

    Bankruptcies Pile Up As COVID-19 Pandemic Squeezes Cash

    In the 2½ months since COVID-19 created a national emergency in the United States, dozens of companies have tilted into bankruptcy in the retail, travel and energy sectors, and a former bankruptcy judge predicts the turmoil will spread further through the economy in the coming months.

  • May 29, 2020

    Patriot National Trustee Wants $3M Deal OK'd In Ch. 11 Case

    The litigation trustee for bankrupt insurance services firm Patriot National Inc. is urging the Delaware bankruptcy court to approve a $3 million settlement in his suit against the firm's former directors in Chancery Court.

  • May 29, 2020

    Sidley Can Continue As Boy Scouts' Ch. 11 Counsel

    A Delaware judge on Friday ruled that Sidley Austin LLP can continue as counsel in the Boy Scouts of America's Chapter 11 despite a challenge from an insurer who asserted the firm was conflicted due to its previous representation of the insurer in other matters.

  • May 29, 2020

    Advantage Rent A Car Seeks 'Last-Ditch' Ch. 11 Sale Process

    The parent of Florida-based Advantage Rent A Car told a bankruptcy judge Friday that it hopes for a "last-ditch sale effort" on a tight timeline that would see a Chapter 11 transaction approved by June 26 after its business crumbled due to the COVID-19 pandemic.

  • May 29, 2020

    UK Litigation Roundup: Here's What You Missed In London

    The past week in London has seen German financier Lars Windhorst dragged into court by a hospitality company, an Emirati lender sue former executives of a scandal-hit health company, and a bank representing the estate of musical artist Prince file IP claims against a unit of a major record label.

  • May 29, 2020

    Abu Dhabi's NMC Health Seeks Ch. 15 To Shield US Assets

    Already facing international probes of some $4.5 billion in undisclosed debt, "aggressive" global creditor litigation and insolvency action in the United Kingdom, Abu Dhabi-based private health care provider NMC Health PLC sought protection for its U.S. affiliates in Delaware's bankruptcy court late Thursday.

Expert Analysis

  • Steps Borrowers In Commercial Real Estate Must Take Now

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    Many lenders accommodated commercial real estate investors and borrowers with short, multimonth payment deferrals amid the COVID-19 crisis, but these grace periods will end well before the fallout of the pandemic will, and the bank will come knocking, says Katherine Amador at Berger Singerman.

  • Leaving The Tort System Behind Via Corporate Risk Transfer

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    With an increasingly litigious tort environment for corporate defendants, companies holding legacy liabilities would do well to investigate a capital markets solution for transferring their risks, say Mark Hemmann at FARA LLC and Peter Kelso at Roux Associates.

  • Top 10 Employment And Benefit Issues In Bankruptcy Cases

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    Companies seeking bankruptcy relief in the wake of the coronavirus pandemic should be aware of crucial aspects of the employee and debtor-employer relationship that are critical to a smooth transition into Chapter 11 and a chance at successful reorganization, say attorneys at Squire Patton.

  • Del. Order Offers Derivative Claim Solution In LLC Bankruptcy

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    The recent debtor-in-possession order in the Rudy's Barbershop case pending in Delaware Bankruptcy Court eliminated defenses to creditor challenge rights and amended the limited liability company agreements, providing one novel solution to the issue of early derivative claims in alternative entity bankruptcies, says Robert Weber of Chipman Brown.

  • COVID-19, Contango And Energy's New Economic Reality

    Excerpt from Lexis Practice Advisor
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    During the current pandemic, counsel for energy companies must be prepared for the market condition known as contango — where short-term and long-term energy prices operate differently — and with pressure from banks providing reserve-based lending facilities, says Cameron Kinvig at Lexis Practice Advisor.

  • Opinion

    Credibility Concerns About Virtual Arbitration Are Unfounded

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    Concerns that videoconferenced arbitration hearings compromise an arbitrator's ability to reliably resolve credibility contests are based on mistaken perceptions of how many cases actually turn on credibility, what credibility means in the legal world, and how arbitrators make credibility determinations, says Wayne Brazil at JAMS.

  • A Lawyer's Guide To Client Service Continuity Planning

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    Ensuring uninterrupted client service and compliance with ethical obligations in a time when attorneys are more likely to fall ill means taking six basic — yet often ignored — steps to build some redundancy and internal communication into legal practice, say attorneys at Axinn.

  • Virtual Meetings Could Be Fertile Ground For Legal Discovery

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    Many remote meeting technologies include recording features as default settings, raising three primary concerns from a legal discovery and data retention perspective, and possibly bringing unintended consequences for companies in future litigation, says Courtney Murphy at Clark Hill.

  • Bankruptcy's 'Deep Freeze' May Be Struggling Cos.' Best Hope

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    A tsunami of bankruptcy filings due to the economic effects of the coronavirus may not be a bad thing, as it could provide the only way for some struggling companies to stay alive — a minimalist, deep hibernation mode where they can await rescue, says Joseph Moldovan at Morrison Cohen.

  • The Role Of Remote Mediation After The Crisis Is Over

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    When the dark cloud of COVID-19 has passed and resolution centers are once again peopled with warring parties and aspiring peacemakers, remote mediations will likely still be common, but they are not going to be a panacea for all that ails the dispute resolution industry, says Mitch Orpett at Tribler Orpett.

  • 7 Steps To Romancing The Virtual Classroom

    Excerpt from Lexis Practice Advisor
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    For professors, trainers, lawyers, students and businesses grappling with the unexpected challenges of distance learning, trial attorney and teacher James Wagstaffe offers best practices for real-time online instruction.

  • Great Recession Holds Mortgage Crisis Lessons For Today

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    Mortgage defaults and losses resulting from COVID-19 should be more limited than during the Great Recession, but nonetheless litigation may arise over mortgage servicing and origination practices, say members of Analysis Group.

  • Bankruptcy Fraud Prosecutions May Increase Post-Pandemic

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    While prosecutors have rarely pursued criminal bankruptcy fraud allegations against companies and executives, investigations invariably follow the money in pursuit of alleged fraud and thus bankruptcy is a natural area of focus in a financial crisis, say attorneys at Gibson Dunn.

  • Key Return-To-Work Considerations For Law Firms

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    There may be precious little notice before the legal community ramps up, so it's important to have return-to-work plans that address the unique challenges law firms will face in bringing employees back to offices, say attorneys Daniel Gerber, Barbara O'Connell and Richard Tucker.

  • 3 Approaches To IP Valuation For Pandemic Recovery

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    Determining an intellectual property asset's value in light of the pandemic using a market, income or cost approach can help companies faced with a restructuring, sale or licensing situation, say Ryan Herrington and Jeffrey Kersey at FTI Consulting.

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