Bankruptcy

  • June 03, 2021

    CarbonLite Cleared For $220M In Ch. 11 Sale Transactions

    Plastic recycler CarbonLite Holdings LLC received conditional approval Thursday from a Delaware judge for a series of Chapter 11 sale transactions that will bring into the estate $220 million in proceeds to benefit creditors.

  • June 03, 2021

    Wardman Hotel Unions Say Ch. 11 Sale Plans Ignore Contracts

    Two labor unions representing workers at Washington's bankrupt Wardman Park Hotel objected late Wednesday to the debtor's proposed Chapter 11 sale plans, saying the procedures don't inform potential bidders of their obligations under collective bargaining agreements.

  • June 03, 2021

    Castex Energy Inks Deal With W&T To Offload Ch. 11 Costs

    Bankrupt oil and gas driller Castex Energy has agreed to sell its interests in an onshore drilling well to W&T Offshore in exchange for the absorption of the well's plugging and abandonment obligations, according to a motion for approval filed in Texas Bankruptcy Court.

  • June 03, 2021

    Purdue Asks To Extend Opioid Suit Shield To End Of Summer

    Purdue Pharma has asked a New York bankruptcy judge for a 75-day extension on an injunction pausing suits over opioid sales against it and its owners, the Sackler family, saying they need protection as they "sprint" to the confirmation of Purdue's Chapter 11 plan.

  • June 02, 2021

    Auto Parts Mogul Must Pay Chase Agent $127M

    A federal judge in Detroit has ruled that an auto parts manufacturer accused of failing to make good on a credit agreement must pay more than $127 million and sign over a pair of promissory notes worth $150 million to an administrative agent for JPMorgan Chase Bank, in connection with a complex dispute that spans more than a decade.

  • June 02, 2021

    Paragon Balks At Paying US Trustee Fees On $90M Deal

    Former debtor Paragon Offshore PLC told a Delaware bankruptcy judge Wednesday that a $90 million settlement between its former parent company and a Chapter 11 litigation trust shouldn't trigger an obligation for Paragon to pay fees to the U.S. Trustee's Office.

  • June 02, 2021

    Insurers Push Back On Cyprus Mines' Pick For Claims Rep

    Cyprus Mines and its insurers sparred before a Delaware bankruptcy judge Wednesday over the appointment of a future claims representative in the talc miner's Chapter 11 case, with the insurers arguing a candidate endorsed by the company and current tort claimants would lack independence.

  • June 02, 2021

    Del. Judge Sets Jail-Risk Deadline For Crypto Firm Ex-CFO

    The former chief financial officer of bankrupt cryptocurrency venture Cred Inc. has one more chance to disclose the amounts and whereabouts of cash and virtual currency under his control before facing possible arrest, a federal judge in Delaware warned Wednesday.

  • June 02, 2021

    Oilfield Services Co. Cleared For $16.5M Bankruptcy Loan

    Bankrupt oilfield service firm OFS International LLC received permission Wednesday from a Texas court to tap into a portion of a $16.5 million post-petition loan, telling the court that it intended to use the initial draw of funds to purchase pipe stock needed to maintain its operations.

  • June 03, 2021

    CORRECTED: Nine Point Hit With $157M Ch. 11 Lien Suit

    Oil and gas company Nine Point Energy's pipeline provider has asked a Delaware bankruptcy court to grant its $157.1 million claim for unpaid bills priority status in the company's Chapter 11.

  • June 01, 2021

    DOL Says Bankrupt Co. Stole $100K From Retirement Funds

    The U.S. Department of Labor slapped a bankrupt Buffalo, New York-area oncology firm with an Employee Retirement Income Security Act suit Tuesday, accusing it of stealing roughly $100,000 worth of employees' retirement money to pay its debts.

  • June 01, 2021

    Eagle Hospitality Foreign Units Can Stay In Ch. 11

    A Delaware bankruptcy judge on Tuesday denied Bank of America's bid to dismiss the Chapter 11 cases of Eagle Hospitality's Singapore real estate investment trust, finding it was eligible to file for bankruptcy under Singapore law.

  • June 01, 2021

    Fintech Execs To Pay $460K Over Securities Fraud Scheme

    Two former executives of fintech company Digiliti Money Group Inc. consented to a judgment Tuesday in Minnesota federal court that will see them pay fines and disgorgement of nearly $500,000 for their roles in a securities fraud scheme.

  • June 01, 2021

    Centerra Puts Gold Mine Into Ch. 11 To Dodge Kyrgyz Seizures

    The operator of a Kyrgyz Republic gold mine seized by authorities has been placed in Chapter 11 in a New York bankruptcy court by its Canadian parent company, who said it was attempting to keep more of its assets from being stripped by the Central Asian country.

  • June 01, 2021

    AMC Plans To Expand After Raising $230M From Mudrick

    Movie theater giant AMC Entertainment has raised $230.5 million in new equity after selling more than 8 million shares to Mudrick Capital.

  • June 01, 2021

    Gas Drilling Service Co. Opens Ch. 11 With $10M Transfer Suit

    Natural gas drilling service company OFS International filed an adversary suit seeking the recovery of $10 million paid out by its parent company in 2019, opening its Chapter 11 case in Texas on Monday with claims for an allegedly fraudulent transfer of its assets.

  • June 01, 2021

    Avadim Health Hits Ch. 11 After Years Without Turning A Profit

    North Carolina-based health products company Avadim Health has filed for Chapter 11 protection in Delaware bankruptcy court with $114.8 million in debt and plans for an asset sale, saying the company has been unable to turn a profit since it was founded in 2007.

  • May 28, 2021

    Law360 Names 2021's Top Attorneys Under 40

    We're pleased to announce Law360's Rising Stars for 2021, our list of 180 attorneys under 40 whose legal accomplishments transcend their age.

  • May 28, 2021

    Key Opioid Trials To Watch As Cases Heat Up Nationwide

    With the coronavirus crisis cooling down, a pressure cooker of opioid litigation is heating up with long-awaited trials across the country. Here, Law360 maps out the hottest cases and spotlights must-know details in trials that are underway or imminent.

  • May 28, 2021

    Eagle Hospitality Gets OK For $482M Hotel Sale In Ch. 11

    A Delaware bankruptcy judge on Friday approved Eagle Hospitality's $481.9 million Chapter 11 sale of 14 of its hotels, rejecting calls by a failed bidder for more time to solidify a new last-minute offer.

  • May 28, 2021

    Windy City Shuffle: Lewis Brisbois, Greenberg Traurig

    In Law360's occasional roundup of Chicago lawyers' latest moves, Lewis Brisbois Bisgaard & Smith LLP has hired a data privacy and security partner, and Greenberg Traurig LLP pulled a new real estate shareholder from Katten Muchin Rosenman LLP.

  • May 28, 2021

    US Bars Chinese Fishing Co. Over Forced Labor At Sea

    U.S. Secretary of Homeland Security Alejandro Mayorkas and U.S. Customs and Border Protection acting Commissioner Troy Miller announced the blacklisting of Dalian Ocean Fishing Co. Ltd. on Friday, based on evidence that the company has used forced labor in its fishing operations.

  • May 28, 2021

    CBL Creditors Oppose Equity Holder Committee In Ch. 11

    Unsecured creditors of mall owner CBL & Associates told a Texas bankruptcy judge that they oppose the creation of an official committee of preferred equity holders in CBL's Chapter 11 case because it would drain the limited resources of the company's estate.

  • May 28, 2021

    Receiver's Rare Step Gives Investors New Hope After FBI Raid

    Facing a situation unlike any he had ever encountered, a Florida attorney appointed to protect the assets of a software developer that had been raided by the FBI turned to an arcane tool to transform its defrauded investors into shareholders of a new $11 million company.

  • May 27, 2021

    JPML Weighs New Opioid MDL As McKinsey Suits Surge

    New multidistrict litigation probably won't streamline dozens of cases accusing McKinsey & Co. of helping drugmakers aggressively market prescription opioids, but squeezing the cases into a long-running opioid MDL might be unfair, judges said Thursday.

Expert Analysis

  • What Kan. Bankruptcy Ruling Means For Junior Lenders

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    Following a Kansas bankruptcy court's recent decision in Fencepost, junior lenders should be aware that voting provisions in subordination agreements may not be enforceable, say Laura Appleby and Elizabeth Little at Faegre Drinker.

  • The Pandemic's Bright Spots For Lawyers Who Are Parents

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    The COVID-19 crisis has allowed lawyers to hone remote advocacy strategies and effectively represent clients with minimal travel — abilities that have benefited working parents and should be utilized long after the pandemic is over, says Chelsea Loughran at Wolf Greenfield.

  • Opinion

    Revise Mansfield Diversity Mandates To Also Benefit Veterans

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    The well-intentioned efforts and salutary purposes of the legal industry's Mansfield Rule diversity metric are tainted by the Diversity Lab initiative's omission of veterans, who are underrepresented at large law firms and entitled to advantageous treatment based on more than 200 years of public policy, says Robert Redmond at McGuireWoods.

  • 2nd Circ. Ruling May Stifle Student Loan Discharge Flexibility

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    In its recent decision in Tingling, the Second Circuit affirmed its rigorous Brunner test for discharging student loan debt in bankruptcy, which could have a chilling effect on bankruptcy courts that had been considering a more malleable approach, says Michael Herz at Fox Rothschild.

  • Bankruptcy Litigation Could See More Third-Party Funding

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    The next few years could be an opportune time for bankruptcy litigants to capitalize on the advantages of third-party financing as the obstacles to its use — including attorney ethics issues and prohibitions against champerty — seem to be clearing at a slow but steady pace, say Daniel Simon and Natalie Rowles at McDermott.

  • Lessons From Federal Fraud Charges Against UBiome

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    The U.S. Department of Justice's and U.S. Securities and Exchange Commission's recent fraud allegations against uBiome executives illustrate the challenges of navigating interactions between clinical testing companies, health insurers and government oversight efforts, say attorneys at Debevoise.

  • Why The Future Law Firm Model Is Industry-Based Offerings

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    Multidisciplinary, industry-based groups at law firms allow for more holistic legal advice, lead to sustainable client relationships, and are likely to replace practice group monoliths at many firms, say Jennifer Simpson Carr at Furia Rubel, Timothy Corcoran at Corcoran Consulting and Mike Mellor at Pryor Cashman.

  • Opinion

    Mass Tort Defendants Exploit Bankruptcy Rules To Avoid MDL

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    The cases of Purdue Pharma, Boy Scouts of America, USA Gymnastics and Takata are just four recent examples of mass tort defendants using bankruptcy preemption to escape multidistrict litigation and exploiting Bankruptcy Code loopholes to reach settlement, leaving future mass tort victims with no recourse, says Samir Parikh at the Lewis & Clark Law School.

  • Thought Leadership's Critical Role In Law Firm Diversity

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    Minority attorneys are often underrepresented in conferences, media interviews and other law firm thought leadership campaigns, which affects their visibility with potential clients and their ability to advance at their firms, says John Hellerman at Hellerman Communications.

  • Del. Rulings Guide On D&O Insurance For Corporate Fraud

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    Two recent Delaware decisions chart a helpful path for policyholders seeking directors and officers coverage for incidents involving fraudulent conduct, and also demonstrate the flexibility afforded by choice-of-law clauses, say Brian Scarbrough and Eric Fleddermann at Jenner & Block.

  • What Associates Should Consider Before Switching Practices

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    The current high demand for midlevel associates provides them a rare opportunity to potentially explore new practice areas, but associates should first ask themselves six questions to begin figuring out why a change sounds appealing, says Stephanie Biderman at Major Lindsey.

  • 4 Effective Ways To Prioritize Client Advocacy

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    To truly support a client going through a complicated lawsuit or a painful experience, lawyers must think beyond interpreting legal guidelines and navigating court proceedings, says attorney Scott Corwin.

  • A Call For Greater Clarity Around SEC Cooperation Credit

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    The U.S. Securities and Exchange Commission’s decision not to fine Gulfport Energy in a recent enforcement action over disclosure failures highlights the need for SEC guidance on the benefits a company will receive for cooperating with agency investigations, say Robert Cohen and Brook Jackling at Davis Polk.

  • Remote Law Firm Culture Should Prioritize Associate Training

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    Due to the pandemic, the gap between law school and the first day on the job has never been wider, but law firms can leverage training to bridge that intimidating gap and convey the unique value of their culture in a virtual environment, say Melissa Schwind at Ward and Smith, and William Kenney and Jaron Luttich at Element Standard.

  • A Bumpy Road To Normality After UK Pandemic Support Ends

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    As U.K. government relief measures that have shored up businesses amid the pandemic taper off, parties that cannot resolve restructuring or insolvency issues through commercial bargaining will influence the types of matters appearing before courts for years, say attorneys at Freshfields.

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