Bankruptcy

  • August 05, 2020

    J. Crew Creditors Erupt Into Full-Scale Lien Fight

    The official committee of unsecured creditors in the Chapter 11 case of fashion retailer J. Crew is challenging the liens of secured lenders, saying up to $32 million of the debtor's assets are not encumbered by the liens.

  • August 05, 2020

    Unsecured Creditors Blast Permian Tank's 'One-Sided' Ch. 11

    Unsecured creditors of Texas-based oil and gas storage tank maker Permian Tank & Manufacturing Inc. blasted the company's Chapter 11 on Wednesday, saying it is set up for the "exclusive" benefit of a creditor that has maneuvered itself into a position of controlling the bankruptcy.

  • August 05, 2020

    Crane Biz TNT Seeks Debt-Equity Swap To Stave Off Ch. 11

    Crane services company TNT said it's negotiating an out-of-court deal to slash debt and infuse another $225 million in cash into the company, but that it faces a Chapter 11 filing if it's unable to get enough creditors on board.

  • August 04, 2020

    Bankrupt Whistleblower Can Sue Medical Co. In Kickback Row

    A whistleblower who filed for bankruptcy has legal standing to sue an eye products supplier over an alleged kickback scheme, as a trustee for his bankruptcy estate released its right to the claims, a Minnesota federal judge held Tuesday.

  • August 04, 2020

    Creditor Can Seek Claims Ch. 7 Trustee Didn't, 3rd Circ. Says

    The Third Circuit ruled in a published decision Tuesday that a creditor to a defunct Pennsylvania business retained the right to pursue legal claims for money it says it's owed even after a Chapter 7 bankruptcy trustee refused to pursue the matter himself.

  • August 04, 2020

    5th Circ. Lets Westmoreland End Retirees' Health Benefits

    The Fifth Circuit ruled Tuesday that the bankrupt Westmoreland Coal Co. can modify or revoke its retirees' health benefits, holding that a 1988 amendment to the U.S. Bankruptcy Code overrides a 1992 law designed to protect retired miners from losing these benefits.

  • August 04, 2020

    Florida Sawmill Secures $26M Stalking Horse Bid In Ch. 11

    A Florida sawmill told the Delaware bankruptcy court Monday that it has a $26 million stalking horse offer from pulp mill operator Mercer International Inc. to set a floor bid for the Chapter 11 sale of its assets.

  • August 04, 2020

    McClatchy Cleared To Sell 30 News Organizations In Ch. 11

    The McClatchy Co. announced Tuesday that a New York bankruptcy judge gave his approval to a $312 million sale of the debtor's 30 news organizations, including the Miami Herald, Kansas City Star and Sacramento Bee, to a bondholder that credit bid its debt in the deal.

  • August 04, 2020

    XFL Creditors Say Buyers Shouldn't Take On McMahon Claims

    The XFL's unsecured creditors has asked a Delaware bankruptcy judge to reject signing over potential legal claims against league founder Vince McMahon and others as part of its proposed sale to investors led by actor and former professional wrestler Dwayne "The Rock" Johnson.

  • August 04, 2020

    Ex-Uber Exec Levandowski Gets 1.5 Years For Google IP Theft

    U.S. District Judge William Alsup sentenced bankrupt former Uber Technologies Inc. executive Anthony Levandowski to 18 months in prison Tuesday after he pled guilty to one count in a criminal case alleging he stole self-driving car trade secrets from his former employer Google, a crime the judge called "massive in scale."

  • August 04, 2020

    Aceto Shareholders Lose Last Shot At Lawsuit

    A Brooklyn federal judge has permanently tossed out a shareholders' lawsuit against former directors and officers of pharmaceutical company Aceto Corp., finding the company had fulfilled its obligations to warn investors about the risks a supply issue would pose to the company in advance of problems with a key supplier.

  • August 04, 2020

    Platinum's Huberfeld Sees 2.5-Year Prison Sentence Vacated

    The Second Circuit on Tuesday erased a federal judge's move to sentence Platinum Partners co-founder Murray Huberfeld to 2½ years for bribing a union, holding that the former hedge fund high-flyer only admitted to a fraud count and should have been sentenced in that context.

  • August 04, 2020

    Reed Smith Nabs Bankruptcy Atty From Baker Botts In Dallas

    Reed Smith LLP has nabbed a Baker Botts LLP bankruptcy attorney who specializes in corporate restructuring, representing individuals and companies in complex Chapter 11 cases.

  • August 04, 2020

    NY&Co. Parent Lands $20M Stalking Horse Bid For Online Biz

    The parent company of New York & Co. said Tuesday that it reached a stalking horse agreement that would see Sunrise Brands put in a floor bid of $20 million for its online business, saying the move would keep the e-commerce line alive as the bankrupt retailer plans to close its brick-and-mortar stores.

  • August 04, 2020

    Pittsburgh Mall's Ch. 11 Plan Cleared With JC Penney Deal

    A federal bankruptcy judge in Pittsburgh on Tuesday cleared a Chapter 11 reorganization and redevelopment plan for the former Century III Mall, despite some qualms about a proposed sealed settlement between the mall and cleanup contractor ServPro.

  • August 04, 2020

    Offshore Driller Fieldwood Hits Ch. 11 With $1B Of Debt

    Gulf of Mexico oil and gas exploration company Fieldwood Energy LLC filed for Chapter 11 protection in Texas along with more than a dozen affiliates, marking its second bankruptcy case since 2018 as global energy prices continue to stagnate due to slackening demand driven by the COVID-19 pandemic.

  • August 04, 2020

    Virgin Atlantic Gets OK To Take COVID-19 Refinancing To Vote

    A London judge gave Virgin Atlantic the go-ahead on Tuesday to take its planned £1.2 billion ($1.5 billion) recapitalization to creditors for approval, after the airline said it is facing a severe liquidity crisis because of the coronavirus pandemic.

  • August 03, 2020

    Hertz Says $56M Clawback Suit Is Up To Snuff

    Hertz urged a New Jersey federal judge not to toss a lawsuit attempting to claw back $56 million from a former general counsel and an ex-CEO, arguing that it had fixed defects the court pointed out when it trimmed the case in March.

  • August 03, 2020

    Pyxus Stockholders See Bid For Longer Ch. 11 Probe Snuffed

    A newly empanelled committee of bankrupt global tobacco supplier Pyxus International stockholders saw its request for more time to investigate the Chapter 11 plan go up in smoke Monday, as company officials warned that an earlier extension already caused serious financial strains.

  • August 03, 2020

    Brooks Bros. Stalking Horse OK'd Despite Competing Offer

    Saying he lacked factual justification, a Delaware bankruptcy judge declined Monday to delay a $305 million stalking horse bidder assignment for Brooks Brothers' Chapter 11 sale, despite warnings that a bidder offering an additional $29 million could drop out otherwise.

  • August 03, 2020

    Creditors Say Ultra Petroleum Plan Undervalues Company

    The unsecured creditors of natural gas producer Ultra Petroleum Corp. have asked a Texas bankruptcy judge to reject the company's Chapter 11 plan, saying it undervalues the company and therefore cuts the money available to creditors by at least $475 million.

  • August 03, 2020

    Pandemic Pushes Dental Group Benevis Into Ch. 11

    Dental practice management company LT Smile and its Benevis subsidiaries filed for Chapter 11 protection in Texas on Sunday, citing the COVID-19 pandemic that caused them to close clinics across the country.

  • August 03, 2020

    Mood Media Enters And Exits Bankruptcy Within 2 Days

    A Texas bankruptcy judge approved Mood Media's prepackaged reorganization plan the day after the company's Chapter 11 filing, a quick turnaround for the in-store media and marketing company's plan to slash about $404 million in debt.

  • August 03, 2020

    5th Circ. Backs $21.6M Jury Verdict Against Total E&P

    The Fifth Circuit on Friday affirmed a $21.6 million jury verdict against Total E&P USA Inc. stemming from an offshore oil and gas well decommissioning fight with a former business partner, saying the company failed to show it wasn't responsible for decommissioning costs.

  • August 03, 2020

    The Rock, Dany Garcia To Buy XFL Out Of Ch. 11

    Actor and former professional wrestler Dwayne "The Rock" Johnson along with his ex-wife, media entrepreneur Dany Garcia, and an investor group are expected to pay $15 million cash for the XFL after winning a Chapter 11 auction for the professional sports league.

Expert Analysis

  • Virtual Courts Amplify Lawyers' Corporate Spokesperson Role

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    Greater access to virtual court proceedings during the pandemic means an increased likelihood that legal arguments will jump from the courtroom to the court of public opinion, so counsel must tailor statements with the client's reputation in mind, says Mike Dolan at Finsbury.

  • Law Firms Must Note Pandemic's Outsize Impact On Women

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    In the wake of the COVID-19 pandemic, gender roles in many families have reverted to scenes from the 1960s, and law firms have a huge opportunity — indeed a business imperative — to avoid the mistakes of the past, say Roberta Liebenberg at Fine Kaplan and Stephanie Scharf at Scharf Banks.

  • The 'Rocket Docket' Show Goes On Despite Setbacks

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    After 11 years as the fastest civil trial court in the land, the Eastern District of Virginia rocket docket is now tied for second place among the nation's 94 district courts, but the court has moved swiftly to adapt to the COVID-19 crisis and continues to dispense justice safely and efficiently, says Robert Tata at Hunton.

  • Opinion

    Pandemic Lays Bare The Inequities Inherent In The Bar Exam

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    The outrage over the life-altering consequences of decisions being made around state bar exams during the COVID-19 pandemic has highlighted the classism built into the exam, and the legal profession should take this moment to reevaluate how new attorneys are licensed, say Naomi Shatz and Katherine Dullea at Zalkind Duncan.

  • Understanding The 5 Stages Of Mediation In A Virtual World

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    Mediation is a process with defined stages, but the rise of virtual mediation may inject changes into each stage that may soon spread to in-person mediations and influence the expectations of participants, says Wynne Carvill at JAMS.

  • Fending Off Bankruptcy Preference Claims During Pandemic

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    Amid the pandemic, vendor companies should reassess standard business practices, including delinquency protocols, to minimize preference claim exposure should a customer file for bankruptcy, say Joel Cohen at Stout and Howard Magaliff at Rich Michaelson.

  • How Tolling Orders May Complicate NY Mortgage Collections

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    Allison Schoenthal and Robin Muir at Hogan Lovells discuss how New York Gov. Andrew Cuomo’s recent orders tolling the statute of limitations on mortgage collections may influence claims, including foreclosures, and further muddy the legal waters in this area.

  • Pandemic May Change The Way We Design Our Courthouses

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    With access to courthouses currently curtailed, it is worthwhile to reflect on the design considerations that go into making these buildings work for the legal profession, and how the COVID-19 crisis might leave its imprint on these public spaces, says Elisabeth Ross at Cozen O'Connor.

  • Mediator Confidentiality Promises Carry Serious Risks

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    A mediation agreement that promises to keep evidence confidential could result in a legal malpractice case for the mediator, and the risk has increased in the COVID-19 era of online sessions, says mediator Jeff Kichaven.

  • Opinion

    Dreamers Bring Important Perspective To Legal Industry

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    The U.S. Supreme Court recently ruled to preserve the Deferred Action for Childhood Arrivals program for the time being, and at this critical time in our nation's history, there are several actions that every law firm can take to increase the visibility of Dreamers, say Regina Calcaterra, Isidora Echeverria and Montserrat Lopez at Calcaterra Pollack.

  • Helping Clients Overcome Financial Hurdles Mid-Litigation

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    In perilous economic times like these, abandoning litigation in progress could be a tempting cost-cutting measure for companies, but lawyers can help clients evaluate two alternative financial arrangements to stanch the bleeding from expenditures while preserving valuable litigation assets, say Charles Agee at Westfleet Advisors and Collin Cox at Yetter Coleman.

  • 5th Circ. PPP Ruling Doesn't Doom Debtors Seeking Loans

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    Despite the Fifth Circuit’s recent ruling in Hidalgo County Emergency Service Foundation v. Carranza barring debtors from receiving Paycheck Protection Program loans, this financial assistance is still available by filing in other circuits and through further workarounds, say Shane Ramsey and John Baxter at Nelson Mullins.

  • Inclusivity Considerations For Law Firms Reopening Offices

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    While most law firms will focus on ensuring physical office spaces are as safe as possible for attorneys and staff members, it's equally important to consider the impact office reopening decisions will have on a firm's culture of diversity and inclusion, says Manar Morales at the Diversity & Flexibility Alliance.

  • NY High Court Case Could Upend Litigation Finance Industry

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    A ruling in favor of the defendant in Fast Trak Investment v. Sax, a case recently accepted by the New York Court of Appeals, could enable borrowers to avoid repaying litigation funders by claiming state usury law violations, say attorneys at MoloLamken.

  • Associates Can Prioritize Biz Development Despite Pandemic

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    Although many traditional business development activities are on hold due to the COVID-19 pandemic, associates should seize the unique opportunities of this time to cultivate business by strengthening their personal and professional relationships, and developing new ones, says Jeremy Schneider at Jackson Lewis.

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