An eleventh-hour, $1 million compromise averted a Chapter 11 court battle in Delaware on Thursday over a bankrupt Philadelphia refinery's post-confirmation agreement to an 11% cut in its original $252 million deal to sell the fire-damaged complex.
Berlin-based law firm Schirp & Partner said Thursday it is rounding up Wirecard AG investors for further group action against auditor Ernst & Young after the payments company filed for insolvency court protection, eliminating it as a target for legal proceedings.
The parent company of children's entertainment destination Chuck E. Cheese filed for Chapter 11 protection in Texas after closing its hundreds of locations in response to COVID-19 business restrictions.
Payments company Wirecard said Thursday that it has filed for insolvency in a German court as prosecutors investigate a €1.9 billion ($2.1 billion) hole in its accounts, prompting calls for an investigation into how the case slipped past the financial regulator.
Windstream Holdings Inc. on Wednesday defended its Chapter 11 plan in New York bankruptcy court from claims by unsecured noteholders that the plan grants first-lien creditors unjustified claims on the cable company's assets.
Foresight Energy LP, an affiliate of bankrupt coal mining giant Murray Energy, won confirmation in Missouri bankruptcy court Wednesday of its Chapter 11 reorganization plan, which includes a reduction of its more than $1 billion in debt.
Industrial metal brush and seating manufacturer Jason Industries Inc. hit Chapter 11 Wednesday with a plan in hand to deleverage its balance sheet by $250 million through a debt-for-equity swap.
Oklahoma-based Tapstone Energy LLC emerged late Tuesday as a $65 million stalking horse bidder for bankrupt Templar Energy LLC's Chapter 11 case in Delaware, just two months after Tapstone itself completed a major out-of-court restructuring.
A Colorado state judge has denied a bid to put a Denver dispensary in receivership from an investor who claimed that he was never repaid his capital, saying the dispensary's full repayment now makes the fight moot.
The owner of an idled Philadelphia oil refinery told a Delaware bankruptcy judge on Wednesday that objections to a proposed $27.5 million reduction to the $252 million court-approved sale price would force the owner to restart the sale process — a "terrible decision" that would likely lead to expensive litigation over a $30 million deposit and other costs to the estate.
The head of several New Jersey construction companies received an 18-month prison sentence Wednesday after admitting to hiding more than $2 million in income from the government to dodge taxes and avoid paying off debts when he filed for Chapter 7 bankruptcy.
President Donald Trump notched his 200th confirmation to the federal courts faster than any predecessor in the last 40 years, cementing a conservative imprint that will last for decades and redefining the judicial selection process in ways likely to outlast his administration.
Weakened by the COVID-19 pandemic, global health and nutrition product retailer GNC Holdings Inc. sought Chapter 11 protection in Delaware with more than $1 billion in debt, seeking to restructure or sell the company through a possible auction led by an affiliate of China's state-controlled Harbin Pharmaceuticals.
French video production and telecommunications company Technicolor SA filed a Chapter 15 petition late Monday in Texas bankruptcy court seeking to complete a financial restructuring that will cut down its €1.4 billion ($1.58 billion) of debt through an equity swap.
The coronavirus-fueled crash in energy demand has only exacerbated the financial reckoning that's hitting the oil and gas industry in 2020, and the path out of bankruptcy is proving to be quite bumpy for many companies. Here, attorneys explain five significant oil and gas bankruptcy trends that emerged in the first half of the year.
EdgeMarc Energy Holdings LLC finally quieted echoes of a 2018 landslide and gas pipeline explosion that drove the business into Chapter 11 on Tuesday, with a Delaware bankruptcy judge confirming its liquidating plan following an asset sale, mediation and settlement.
The Fifth Circuit has told a Texas bankruptcy court it exceeded its authority when it ordered the U.S. Small Business Administration to review a coronavirus small-business relief loan application filed by an emergency services company despite its Chapter 11 status.
A Texas bankruptcy judge on Tuesday approved up to $14.5 million in bonuses for top executives at Diamond Offshore Drilling Inc. after hearing that the company had reached an agreement with creditors to move the performance goals for the payments up.
American Addiction Centers opened its Delaware Chapter 11 case with a partial setback Tuesday, when the assigned judge rejected part of what the substance abuse treatment chain acknowledged as an "expensive" bankruptcy financing loan.
The Office of the U.S. Trustee has told the Delaware bankruptcy court that Exide Technologies LLC's Chapter 11 proposal to award at least roughly $1 million in bonuses to three executives includes benchmark triggers that are too easy to achieve.
The Chapter 11 sale of assets of Borden Dairy Co. — valued at more than $300 million — stalled out during a hearing Tuesday when a Delaware bankruptcy judge said he couldn't rule on a dispute among the proposed buyer and five Teamsters unions.
A New York bankruptcy judge gave Purdue Pharma permission Tuesday to invest $6.5 million in a company working on an over-the-counter opioid-overdose drug, saying that keeping the development effort going was an appropriate use of the opioid-maker's money.
Purdue Pharma LP is asking a New York federal judge not to overturn an order keeping creditors from going after its former president, saying the judge overseeing its Chapter 11 case was right to rule that the claims would disrupt its reorganization.
A top equity holder to rural hospital chain Quorum Health Care Services LLC urged a Delaware bankruptcy judge late Monday to reject the company's Chapter 11 plan, claiming that a lack of good faith and low-balled company valuations propped up a scheme to wipe out stockholders.
A financial news service that provides investment news to Chinese language speakers announced its Chapter 11 filing Monday, saying it intends to conduct a debt-for-equity swap to deleverage its balance sheet and continue its operations.
Mediation in recent years has largely devolved into a kind of arbitration without due process — where a mediator reads briefs, decides where the case should settle, and drives parties toward that single-minded result — but online mediation can be steered in a different direction, says mediator Jeff Kichaven.
As pandemic-induced bankruptcy filings continue to grow, debtors must be aware of the elements of bankruptcy fraud — especially since certain types of civil fraud do not require intent — as creditors are highly incentivized to analyze every official company action, say attorneys at Lowenstein Sandler.
The stigma of discussing mental health struggles during these tough times is especially profound for attorneys of racial and ethnic minorities, but law firms and in-house departments can change the narrative, says Patricia Silva at Lathrop.
A firm's ability to negotiate a quick restructuring depends critically on its estimated value, so it is crucial to identify the valuation questions that will loom large in a COVID-19 world and examine how they will vary based on a company's preexisting weaknesses, say consultants at Analysis Group.
A New York federal court’s recent holding that syndicated loans are not securities in Kirschner v. J.P. Morgan Chase may head off unnecessary securities litigation concerning the performance of syndicated loans impacted by the COVID-19 crisis at a time when borrowers have a heightened need for liquidity, say attorneys at Cleary.
The past few months of lockdown have given rise to some profound patterns — litigators are more cooperative and less adversarial — and as the activities of courts and tribunals resume, lawyers should consider continuing to devote more time and resources to resolving disputes instead of fighting them out, says Matthew Vafidis at Holland & Knight.
Law firms in today's financial crisis may be looking at nontraditional arrangements such as portfolio funding or factoring to provide liquidity and cash support, but firms must first consider lawsuits brought against Pierce Bainbridge and other recent developments, says Katherine Toomey at Lewis Baach.
Although most small businesses cannot meet the Payroll Protection Program's loan forgiveness requirements, using this CARES Act program in conjunction with the Small Business Debtor Reorganization Act could be the solution for companies trying to survive the current pandemic era, says Thomas Lehman at Levine Kellogg.
Those seeking resolution in commercial disputes that are stuck in an unavoidable but lengthy court backlog due to the pandemic must consider the advantages of arbitration and mediation over court proceedings, says former U.S. District Judge Shira Scheindlin now at Stroock.
The Minnesota Supreme Court's Maslowski v. Prospect Funding Partners decision this week reaffirms that the doctrine of champerty is archaic, impedes important litigation finance activity, and should be abolished in the handful of states where it remains alive, says Andrew Cohen at Burford Capital.
A significant challenge in practicing law remotely is the use and handling of documents without paper, because common digital tools such as email or even secure file transfer applications are problematic, say attorneys at Baker McKenzie.
The sudden and substantial loss of revenues due to the pandemic should cause companies in financial distress to thoroughly explore the possibility of out-of-court restructuring in an effort to find a quicker and less expensive alternative to Chapter 11, say Kurt Mayr and David Lawton at Morgan Lewis.
The legal industry is uniquely positioned, and indeed obligated, to respond to the racial disparities made clear by the recent killings of George Floyd and Breonna Taylor, but lawyers must be willing to be uncomfortable, says Tiffani Lee at Holland & Knight.
After the dramatic recent decline in oil and gas prices, industry participants and investors must look to history for strategies to address higher costs of capital, valuation challenges, increasing financial distress, potential bankruptcies and the prospect of contract disputes, say consultants at Cornerstone Research.
A New York bankruptcy judge's recent opinion in Firestone Diamond represents a comprehensive treatment of the Bankruptcy Code Section 502(d) disallowance taint and decisively rejects, for the first time in the Southern District of New York, the long-standing and widely criticized Enron holding, say attorneys at Cadwalader.