Bankruptcy

  • July 31, 2020

    Opening PPP Loans To Bankrupt Ventures A Welcome Change

    Bankruptcy experts are applauding a proposed change to the Paycheck Protection Program that will allow small business debtors to access loans under federal COVID-19 relief packages, correcting what they say was a mistake in early versions of the aid program that left bankrupt companies without a valuable tool for surviving the pandemic.

  • July 31, 2020

    Thai Budget Airline To Restructure In Face Of COVID-19

    A Thai budget airline has become the latest carrier to fall victim to COVID-19, announcing it had filed for restructuring in bankruptcy court due to the "adverse operating environment" caused by the pandemic.

  • July 31, 2020

    Noble Corp. Hits Ch. 11 With Deal To Cut $3.4B In Debt

    The COVID-19 pandemic claimed another energy sector victim Friday as offshore oil drilling contractor Noble Corp. filed for Chapter 11 bankruptcy in a Texas court with an equity swap agreement to cut $3.4 billion in debt.

  • July 31, 2020

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

    The past week in London has seen the Solicitors Regulation Authority file a claim against HSBC, insurers AXA and Allianz sue Swiss insurance giant Zurich, and Cantor Fitzgerald appeal a case involving a rival broker not long after a judge said their poaching dispute belongs in the U.K. Here, Law360 looks at those and other new claims in the U.K.

  • July 30, 2020

    PG&E Names Old Legal Hand To Take Over As GC

    Pacific Gas and Electric Co. has appointed a former interim CEO as its new top lawyer as part of its latest management shakeup, which came about a month after the utility emerged from Chapter 11 bankruptcy and pled guilty to starting a wildfire in California that killed 84 people.

  • July 30, 2020

    Lucky Brand's Quick-Fire Ch. 11 Sale Plan Can Move Forward

    Apparel retailer Lucky Brand Dungarees LLC received court approval Thursday in Delaware for a plan to sell its assets on a shortened timeline, clearing the way for an expedited process that will close by mid-August.

  • July 30, 2020

    GenCanna Bankruptcy Halts Ex-CFO's Labor Complaint

    A former executive at bankrupt hemp company GenCanna can't bypass the creditor claims process to pursue his former employer for severance he claims he is owed after he was forced out for uncovering fraud, a judge said Thursday.

  • July 30, 2020

    Greenbaum Nabs Business Litigator From McCarter & English

    Greenbaum Rowe Smith & Davis LLP has bolstered its commercial litigation practice with the addition of a former litigator from McCarter & English LLP who focuses on business disputes.

  • July 30, 2020

    Brooks Brothers Can Defer $7M Of Store Rent In Ch. 11 Case

    Men's suit retailer Brooks Brothers Group Inc. successfully lobbied a Delaware bankruptcy judge Thursday for a deferral of $7.2 million in rent and lease obligations until early September, saying the immediate payment of the rent would scuttle its ability to complete a Chapter 11 asset sale.

  • July 30, 2020

    NJ Hospital Scoops Up $11.8M Building In Ch. 11 Sale

    A New Jersey bankruptcy judge on Thursday gave his nod of approval to an $11.8 million stalking horse offer by St. Joseph's Health to purchase a Wayne medical office from a commercial building portfolio that hit Chapter 11 in February.

  • July 30, 2020

    Longfin Investors Secure $223M Judgment In NY Fraud Case

    A Manhattan federal judge on Wednesday handed a win to investors in shuttered cryptocurrency company Longfin Corp., determining that the company should have to pay more than $223 million in connection with alleged securities fraud.

  • July 30, 2020

    Ex-Ohio Speaker, Lobbyists Indicted In Energy Corruption Suit

    Former Ohio Speaker Larry Householder and four others were indicted on charges of taking more than $59 million in bribes from an energy company, prosecutors revealed Wednesday, the same day the House of Representatives stripped Householder of his title.

  • July 30, 2020

    Owner Of Troubled $1B Solar Project Hits Ch. 11 In Del.

    The owner of a federally funded, nonoperational $1 billion solar energy project in Nevada that has been beset with operational problems hit Chapter 11 in Delaware on Thursday, saying roughly $430 million in secured debt is owed to the federal government.

  • July 30, 2020

    California Pizza Kitchen Hits Ch. 11 To Cut Debt, Explore Sale

    California Pizza Kitchen entered Chapter 11 in the Southern District of Texas with a deal to slash about $230 million in debt and explore a possible sale, saying the pandemic had made its finances unsustainable.

  • July 29, 2020

    JC Penney Says Sale Still On Despite Report Of Front-Runner

    J.C. Penney Corp. denied reports that Sycamore Partners is a front-runner to buy the department store chain while telling a Texas bankruptcy judge Wednesday that it has received multiple bids for its business as it moves toward a going-concern sale.

  • July 29, 2020

    LATAM Airlines Defends $900M Shareholder DIP As Best Deal

    LATAM Airlines Group defended its proposed $900 million investor-provided debtor-in-possession loan before a New York bankruptcy judge on Wednesday from claims by creditors that it's a scheme by shareholders to make sure their equity survives the Chapter 11.

  • July 29, 2020

    24 Hour Fitness Worried About Rush Of Landlord Litigation

    A Delaware judge on Wednesday denied a landlord's bid to have bankrupt 24 Hour Fitness release its lease so it can bring in a new tenant, but said she will soon consider related relief for the landlord despite concerns it could open a flood of requests from other landlords.

  • July 29, 2020

    Boutique Texas Bankruptcy Firm Launches Houston Office

    Boutique bankruptcy firm Forshey Prostok LLP has picked up a former head of Hoover Slovacek LLP's bankruptcy practice with 20 years of experience to launch a new office in Houston. 

  • July 29, 2020

    Weinstein Debtors Try Deal Again After District Judge Pans It

    Harvey Weinstein's former studio pressed a Delaware bankruptcy judge Tuesday for more time to pursue a "revised" payout deal for the producer's accusers after two women branded the settlement a "deathtrap" and a Manhattan federal judge rejected it as "phony."

  • July 29, 2020

    Rising Star: Willkie's Daniel Forman

    Willkie Farr & Gallagher LLP partner Daniel Forman has represented participants in massive bankruptcy cases like Pacific Gas and Electric Co.'s $59 billion reorganization and the largest-ever U.S. municipal bankruptcy in Puerto Rico, earning him a spot on this year's list of bankruptcy law practitioners under age 40 honored by Law360 as Rising Stars.

  • July 29, 2020

    Feds Want Ex-Uber Exec To Get Over 2 Years For IP Theft

    Federal prosecutors asked U.S. District Judge William Alsup on Tuesday to sentence bankrupt former Uber Technologies Inc. executive Anthony Levandowski to 27 months in prison for one count of stealing Google's trade secrets, while Levandowski argued he deserves at most a year of home confinement.

  • July 29, 2020

    Energy Biz Denbury To Seek Ch. 11 To Slash $2.1B In Debt

    Oil and gas company Denbury Resources said Wednesday it will seek Chapter 11 protection with an agreement with creditors in hand to slash $2.1 billion in debt, citing long-term debt and the pandemic's impact on energy demand.

  • July 28, 2020

    Southland Ch. 11 Bid To Void Williams Co. Claims Advances

    A Delaware bankruptcy judge kept alive late Tuesday much of a multicount suit aimed at restructuring or nullifying a Williams Cos. affiliate's gas-handling agreements with bankrupt oil and gas producer Southland Royalty Co. LLC, including some counts the affiliate said would "confiscate" assets worth hundreds of millions of dollars.

  • July 28, 2020

    FirstEnergy Hit With Stock-Drop Suit For $60M Bribery Reveal

    A shareholder hit FirstEnergy Corp. with a proposed class action in an Ohio federal court Tuesday over allegations that the utility paid Ohio lawmakers $60 million to arrange a $1 billion bailout, saying news of the charges sent the company's stock price plunging 45%.

  • July 28, 2020

    Brown Rudnick Can't Duck $300M Malpractice Suit

    Brown Rudnick LLP must face a trimmed suit accusing the law firm of bungling an attempt to claw back $300 million in credit line repayments from a private equity mogul on behalf of the trustee of bankrupt Lyondell Chemical Co., a New York federal court ruled Tuesday.

Expert Analysis

  • Law Firm Strategies For Publicizing Laterals Amid Lockdowns

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    With business development dinners and social events no longer viable for new lateral hires, law firms need a refreshed game plan — one that fully exploits the digital landscape, say Andrew Longstreth and Jesse Dungan at Infinite Global and Michael Coston at Coston Consulting.

  • Are Your Slack Communications Primed For E-Discovery?

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    With the increasing use of channel-based platforms such as Slack, Messenger and Teams in the work-from-home era, companies should assume they may be compelled to produce channel-based data in litigation and take proactive steps to protect sensitive information, say Jessica Brown and Collin James Vierra at Gibson Dunn.

  • Key Antitrust Considerations For Upcoming Bankruptcy Sales

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    There is likely to be a pandemic-related increase in acquisitions of companies or assets out of bankruptcy, and it is important to recognize that it is not atypical for the antitrust authorities to investigate and even challenge these transactions, say attorneys at Arnold & Porter.

  • 5 Biz Tax Reforms To Aid Long-Term Pandemic Recovery

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    As Congress negotiates another COVID-19 relief package, it should consider business tax measures that provide liquidity and encourage economic recovery by focusing budgetary resources on activities and circumstances connected to the pandemic and associated economic slowdown, says George Callas at Steptoe & Johnson.

  • 6 Dispute Prevention Steps As Lawsuits Rise Amid Pandemic

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    With the inundation of lawsuits resulting from the pandemic, now is an opportune time for companies and their advisers to implement prevention measures explicitly designed to break the dispute cycle early and to de-escalate possible legal actions as they form, says arbitrator and mediator Janice Sperow.

  • COVID-19 Relief Efforts Heighten Fair Credit Reporting Risks

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    Financial services companies should shore up documentation of credit reporting practices in anticipation of increased enforcement actions and civil litigation related to the Fair Credit Reporting Act and CARES Act compliance amid the COVID-19 crisis, say Allison Schoenthal and Ashley Hutto-Schultz at Hogan Lovells.

  • Opinion

    Time To Consider Percentage Rental Agreements For Lawyers

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    It has long been the law that attorneys cannot use percentage rental agreements because doing so would constitute an impermissible sharing of fees with nonlawyers, but such arrangements can help lawyers match expenses with revenues in lean times like now, say Peter Jarvis and Trisha Thompson at Holland & Knight.

  • What COVID-19 Means For The Future Of Health Mergers

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    Health industry sectors, including hospitals and physician organizations, are likely to see growth in consolidation activity as a result of COVID-19, but remote deal-making and other challenges will increase the difficulty of finalizing deals, says Larry Gage at Alston & Bird.

  • 'Settle And Sue' Malpractice Cases Have New Clarity In Calif.

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    A California state appellate court's recent decision in Masellis v. Law Office of Leslie F. Jensen provides a road map for proving causation and damages in settle-and-sue legal malpractice cases — an important issue of long-standing confusion, says Steven Berenson at Klinedinst.

  • What You Say In Online Mediation May Be Discoverable

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    Mediation conducted online with participants in different states makes it harder to determine where communications were made, increasing the risk that courts will apply laws of a state that does not protect mediation confidentiality, say mediators Jeff Kichaven and Teresa Frisbie and law student Tyler Codina.

  • 10 Tips For A Successful Remote Arbitration Hearing

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    As I learned after completing a recent international arbitration remotely, with advance planning a video hearing can replicate the in-person experience surprisingly well, and may actually be superior in certain respects, says Kate Shih at Quinn Emanuel.

  • Opinion

    To Achieve Diversity, Law Firms Must Reinvent Hiring Process

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    If law firms are truly serious about making meaningful change in terms of diversity, they must adopt a demographically neutral, unbiased hiring equation that looks at personality traits with greater import than grades and class rank, says Thomas Latino at Florida State University College of Law.

  • Cybersecurity Steps For Law Firms Amid Heightened Risks

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    With large swaths of the population indoors and primarily online, cybercriminals will be able to exploit law firms more easily now than ever before, but some basic precautions can help, says Joel Wallenstrom at Wickr.

  • Madoff Recovery's Next Steps After Justices' Petition Pass

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    The U.S. Supreme Court’s recent refusal to review a Second Circuit decision allowing recovery of funds Bernie Madoff transferred outside the U.S. leaves open the question of whether the clawback initiative’s claims will survive given the strict pleading and proof standards that have evolved over the last 12 years of litigation, say attorneys at Quarles & Brady.

  • Ill. Force Majeure Ruling Could Be Problematic For Landlords

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    Businesses considered nonessential during the pandemic may be able to look to an Illinois bankruptcy court's recent ruling in Hitz Restaurant Group to invoke a force majeure defense and get excused for rental obligations during the time they were unable to operate, say attorneys at Saul Ewing.

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