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Bankruptcy
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November 29, 2023
FTX Gets Approval To Put $744M In Crypto On The Market
A Delaware bankruptcy judge on Wednesday gave bankrupt cryptocurrency exchange FTX permission to put $744 million in cryptocurrency up for sale, finding that converting the crypto to cash was in the best interests of creditors.
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November 29, 2023
Delaware Judge OKs Food Recycler's Chapter 7 Conversion
Food waste recycler KDC Agribusiness LLC can turn its bankruptcy case into a Chapter 7 liquidation, a Delaware bankruptcy judge ruled Wednesday, trumping objections from a contractor that argued it should be paid before the case could convert.
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November 28, 2023
Kwok Trustee IDs $2.6B In Cash Moves As Cutoff Date Looms
The Chapter 11 trustee overseeing the estate of Ho Wan Kwok told a bankruptcy judge on Tuesday to brace for more than 100 individual clawback actions that seek to recoup some of the $2.6 billion that flowed through more than 275 accounts connected to the Chinese exile.
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November 28, 2023
NY Parishes Protected While Ch. 11 Mediation Proceeds
A New York bankruptcy judge vowed Tuesday to preserve legal protections for the nondebtor parishes of the bankrupt Diocese of Buffalo, New York, saying sexual abuse claimants would be barred from pursuing legal action against them while mediation continues this week.
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November 28, 2023
Genesis Nears Deals With Parent Co., Creditors
A New York bankruptcy judge on Tuesday gave Genesis Global Holdco permission to send its Chapter 11 plan out for a vote, as the cryptocurrency lending platform reported impending agreements with its parent company and creditors that could render its "no deal" bankruptcy plan a misnomer.
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November 28, 2023
Va. Judge OKs $2M Fees For Foley In LeClairRyan Ch. 11
A Virginia bankruptcy judge has approved just under $2.1 million in fees for Foley & Lardner LLP for its work on defunct law firm LeClairRyan's bankruptcy after Foley agreed to drop its fee dispute with Quinn Emanuel Urquhart & Sullivan LLP, which succeeded it as counsel to the Chapter 7 trustee in the case.
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November 28, 2023
Barretts Minerals Wants To Keep Its Ch. 11 Case In Texas
Barretts Minerals Inc. told a Texas bankruptcy judge that its case should remain in Texas rather than be transferred to Montana because it is more convenient for major witnesses and the company's ties to Texas are significant and legitimate.
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November 28, 2023
UK Trustees File Ch. 15 Petition For Duet Group Founder
Joint trustees in England for the bankruptcy estate of Henry Gabay, a co-founder of the defunct global asset manager Duet Group, filed a Chapter 15 bankruptcy petition on Monday in New York seeking recognition of Gabay's personal insolvency in the United Kingdom.
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November 28, 2023
2nd Circ. Won't Rehear $16.9M Madoff Investor Clawback Case
The Second Circuit on Tuesday said it wouldn't rehear an appeal from an investor who lost a clawback suit and was ordered to pay $16.9 million to the bankruptcy estate of Bernie Madoff's Ponzi investment company.
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November 28, 2023
Orbital OK'd For Ch. 11 Liquidation After Creditors Accept Plan
A Texas bankruptcy judge on Tuesday approved energy services company Orbital Infrastructure Group's bid to liquidate its business in Chapter 11 after unsecured creditors overwhelmingly voted to accept the plan.
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November 28, 2023
Debtor Can't Also Be Creditor In Ch. 13, 7th Circ Rules
The Seventh Circuit ruled that an Illinois-based business owner cannot seek a more than $300,000 state court judgment against his former business partners in their Chapter 13 bankruptcy petition, holding that the owner and his alter ego company cannot become both the creditor and debtor.
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November 28, 2023
Feds Fight Girardi Keese Trustee's Professional Fee Requests
The federal government has objected to the Girardi Keese bankruptcy trustee's bid to pay more than $3 million in fees to herself and several other professionals, telling a Los Angeles bankruptcy judge the trustee has failed for nearly three years to analyze hundreds of millions of dollars worth of unsecured claims against the defunct law firm.
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November 28, 2023
Proterra Gets OK For $210M Battery Biz Sale To Volvo
A Delaware bankruptcy judge Tuesday gave electric-bus maker Proterra Inc. the go-ahead to sell its battery business to Volvo for $210 million after being told the bid was the best offer on the table.
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November 28, 2023
Bannon Ally Says He Won't Flee If Released In $1B Fraud Case
Accused fraudster Ho Wan Kwok, who faces charges over an alleged $1 billion fraud, said his status as a political refugee means he is not a flight risk and that he needs to be let out of a Brooklyn federal prison for the sake of his health.
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November 28, 2023
Law Firm Leaders Cautiously Optimistic Heading Into 2024
Major U.S. law firms are steadfast in their commitment to the pursuit of further growth despite ongoing economic uncertainty. Here’s what the leaders of four Leaderboard firms have to say about how the legal industry is preparing for next year.
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November 28, 2023
The 2023 Law360 Pulse Leaderboard
Check out the Law360 Pulse Leaderboard to see which first-in-class firms made the list this year.
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November 27, 2023
NY Judge OKs $1.65B Voyager Settlement With FTC
A New York federal judge has approved a settlement ordering bankrupt cryptocurrency lender Voyager Digital and its ex-CEO to pay $1.65 billion for misleading investors about the safety of their money prior to the firm's collapse.
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November 27, 2023
Alex Jones Can Earn $650K Salary While Working On Ch. 11
A Texas bankruptcy judge approved a cash collateral order Monday in the Chapter 11 case of bankrupt InfoWars purveyor Free Speech Systems that includes a bump in pay for right-wing conspiracy theorist Alex Jones, saying he didn't have enough evidence to grant the company's $1.5 million salary request as the company and its main moneymaker pursue Chapter 11 plans.
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November 27, 2023
Celsius Creditors Balk At $281K In Bidder's Ch. 11 Fees
The official committee of unsecured creditors in the Chapter 11 case of cryptocurrency lending platform Celsius Network opposed the payment of $281,000 in fees requested by a bidder that lost an auction for the reorganized debtor's assets, saying the code doesn't cover such expenses from a debtor's estate.
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November 27, 2023
FTX Settles BlockFi Dispute Over $744M Crypto Sale
Bankrupt cryptocurrency exchange FTX said it has settled lender BlockFi's objection to its proposed sale of $744 million in cryptocurrency held in Grayscale Investments trust funds, agreeing to explicitly reference liens the lender is asserting on the funds.
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November 27, 2023
Barretts Minerals Pressured To Move Ch. 11 Case To Montana
The Texas bankruptcy case of Barretts Minerals Inc. should be moved to Montana because the company's ties to Texas are tenuous, the Future Claimants Representative for asbestos victims told the court Monday.
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November 27, 2023
Colombia Oil Co. Wants To Challenge McDermott Restructure
A Colombian state-owned oil company says it has a $1 billion arbitration award on the line and needs permission from a New York federal judge to subpoena a hedge fund manager so it can protect its interests while the company that owes the money restructures in the Netherlands and England.
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November 27, 2023
Crypto Game Co. Neon Says Investor Is 'Raiding' Its Coffers
Six founders of blockchain gaming studio Neon Machine Inc. filed a derivative lawsuit on the company's behalf in Delaware's Court of Chancery on Monday, seeking to stop its controlling stockholder and new self-appointed CEO from destroying the company and "raiding or attempting to raid Neon's coffers."
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November 27, 2023
Bankruptcy Court OKs Camden Diocese $4.6M Insurance Loan
A New Jersey bankruptcy court on Monday gave its blessing to a $4.6 million financing agreement that will allow the Roman Catholic Diocese of Camden, New Jersey, to renew insurance policies as it continues its Chapter 11 bankruptcy.
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November 27, 2023
Proterra Pauses Bus Biz Sale After Customer Objections
Electric bus company Proterra told a Delaware bankruptcy court it is delaying a hearing on the sale of its bus-building business in the wake of complaints that its chosen buyer doesn't have the ability to fulfill its customer contracts.
Expert Analysis
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Tips For Litigating Against Pro Se Parties In Complex Disputes
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.
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3 Cases Show Tensions Between Arbitration And Insolvency
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.
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Opinion
Air Ambulance Ch. 11s Show Dispute Program Must Resume
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.
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Pro Bono Work Is Powerful Self-Help For Attorneys
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.
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Why Delaware ABCs Are No Longer As Easy As 1-2-3
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.
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Diamond Sports Cases Shed Light On Executory Contracts
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.
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Series
Playing In A Rock Cover Band Makes Me A Better Lawyer
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.
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Series
The Pop Culture Docket: Judge Espinosa On 'Lincoln Lawyer'
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.
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Balancing Justice And Accountability In Opioid Bankruptcies
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.
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Proactive Measures While NY Foreclosure Law Is In Limbo
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.
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Unearthing The Lesser-Known 'Buried Facts' Doctrine
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.
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Opinion
Newman Suspension Shows Need For Judicial Reform
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.
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9th Circ. Ruling Expands The Horizons Of Debt Discharge
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.
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How And Why Your Firm Should Implement Fixed-Fee Billing
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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Opinion
Judicial Independence Needs Defense Amid Political Threats
Amid recent and historic challenges to the judiciary from political forces, safeguarding judicial independence and maintaining the integrity of the legal system is increasingly urgent, says Robert Peck at the Center for Constitutional Litigation.