Bankruptcy

  • June 20, 2022

    LATAM Airlines Lands Its Ch. 11 Plan Over Objections

    The Chapter 11 plan of Chilean air carrier LATAM Airlines has received bankruptcy court approval, with a New York judge overruling a series of objections from creditors over their treatment in the plan.

  • June 17, 2022

    Ch. 11 Cheat Sheet: LaForta-Gestao E Investimentos

    Gulf of Mexico oil rig operator LaForta-Gestao e Investimentos filed for Chapter 11 protection in a Texas court Thursday, saying it had no cash or income and needed bankruptcy financing to keep the oil rig that is its sole asset afloat until it can arrange a sale.

  • June 17, 2022

    1st Circ. Reverses Bank's Foreclosure Win On Judge's Error

    A Massachusetts couple fighting a bank's foreclosure bid in federal court were wronged when a judge slammed the door on their discovery requests and granted the financial institution a pretrial win, the First Circuit said Friday.

  • June 17, 2022

    Teligent's Post-Sale Drug Recall Puts Its Ch. 11 Plan In Doubt

    The Chapter 11 plan for the generic-drug maker once known as Teligent Inc. was thrown into doubt Friday after a bankruptcy court ruled that the company owes a refund for drugs it sold after bankruptcy and then later recalled as part of an asset sale.  

  • June 17, 2022

    Revlon Gets Interim Nod On $575M Ch. 11 Loan

    Cosmetics giant Revlon Inc. received interim approval on Friday to tap into a $575 million debtor-in-possession loan in its Chapter 11 case, with a New York judge allowing a roll-up of certain prepetition loans.

  • June 17, 2022

    Ch. 11 Cheat Sheet: Revlon Inc.

    Cosmetics maker Revlon Inc. hit Chapter 11 along with 50 affiliates on Wednesday, saying supply chain issues have left it unable to meet customer demand and critically constrained its liquidity.

  • June 17, 2022

    Puerto Rico Highway Debt Reorg Heading For Creditor Vote

    A New York federal judge Friday sent the plan to restructure the Puerto Rico Highways and Transportation Authority's $6.7 billion debt out for a creditor vote, overriding a group of highway engineers who said their wage litigation claims were wrongly classified.

  • June 17, 2022

    MD Helicopters Gets $210M Ch. 11 Sale Liftoff In Del. Court

    Former Lynn Tilton-led MD Helicopters Inc. secured a Delaware bankruptcy judge's approval Friday for a $210 million debt-for-equity sale to a creditor group, overcoming the Dutch government's objection that the deal wrongly excluded a $16.1 million judgment lien it won in an Arizona court.

  • June 17, 2022

    Gulf Oil Rig Co. Gets Quick Loan To Stay Afloat In Ch. 11

    A Texas bankruptcy judge Friday gave the bankrupt owners of a Gulf of Mexico oil rig permission to tap into $23.5 million in Chapter 11 financing after hearing that the cash is needed immediately to keep its currently anchorless and uninsured rig fit for sale.

  • June 16, 2022

    Avenatti Cops To Stealing From Clients, Without A Plea Deal

    Michael Avenatti, who's already serving five years for trying to extort $25 million from Nike and for defrauding his former client Stormy Daniels, pled guilty Thursday in California federal court to four counts of wire fraud and one count of tax fraud, without a plea agreement with prosecutors.

  • June 16, 2022

    Stimwave Gets OK To Tap $12M In Bankruptcy Financing

    A Delaware bankruptcy court judge approved $12 million in interim financing for medical device company Stimwave Technologies at a first-day hearing Thursday, overruling objections from equity holders that the company was shutting them out.

  • June 16, 2022

    7th Circ. Says Debt Owner Missed Chance For Eatery's Deed

    The Seventh Circuit determined on Thursday that a property tax lien purchaser has no claim to the deed of a bankrupt restaurant, saying it missed the opportunity to contest the cash payment promised in the owners' bankruptcy plan.

  • June 16, 2022

    Chinese Billionaire Denied Ch. 11 Exit With Yacht On The Way

    A Connecticut bankruptcy judge received a report saying the yacht at the center of exiled Chinese billionaire Ho Wan Kwok's Chapter 11 case should be back in U.S. waters by the end of the month, while denying a motion to end the bankruptcy case at the same time.

  • June 16, 2022

    Debt Collector Accused Of Pressuring Payments In NC Suit

    A North Carolina woman says she felt pressured to pay off a debt after receiving an allegedly cryptic text message from a collection agency with scant details that suggested she had one shot at settling, according to a proposed class action filed Wednesday in federal court.

  • June 16, 2022

    Revlon Sees Creditor Conflicts On The Horizon In Ch. 11

    Bankrupt cosmetics giant Revlon Inc. previewed some intercreditor disputes that need to be addressed in the early stages of its Chapter 11 case, saying at an initial court appearance in New York on Thursday these issues could impact its efforts to reorganize its nearly $3.7 billion of debt.

  • June 15, 2022

    Pareteum Gets Preliminary OK For $6M DIP As Sale Nears

    A New York bankruptcy judge gave telecom software maker Pareteum Corp. preliminary approval on Wednesday to tap $6 million in Chapter 11 financing after hearing that it needs the funds to reach a sale to its stalking horse bidders next week.

  • June 15, 2022

    Corp Group Banking Gets Nod On Ch. 11 Plan With Releases

    Corp Group Banking, a bankrupt Chilean holding company, overcame objections from the U.S. bankruptcy watchdog Wednesday to receive a Delaware judge's blessing for its Chapter 11 plan of liquidation along with the third-party releases that drew the opposition to the plan.

  • June 15, 2022

    Del. Justices Reverse Stockholder Snub In 3D-TV Co. Row

    The Delaware Supreme Court vacated on Wednesday a Chancery Court ruling that a common law "insolvency exception" to state corporation law eliminates a requirement for a stockholder vote before directors can hand a broke and debt-ridden company to secured creditors.

  • June 15, 2022

    Fla. Medical Device Co. Hits Ch. 11 Amid Ex-CEO Litigation

    Stimwave Technologies Inc. filed for Chapter 11 protection in Delaware on Wednesday in the midst of Chancery Court litigation with its ex-CEO over allegations of financial and operational mismanagement by the former leadership team.

  • June 15, 2022

    Judge Trims CEO's Bonus Pay At His Last Purdue Hearing

    A New York bankruptcy judge on Wednesday wound down more than two and a half years presiding over Purdue Pharma LP's contentious Chapter 11 with a ruling approving a trimmed-down incentive payment package for the opioid maker's CEO.

  • June 15, 2022

    MD Helicopters To Pay $31.5M In DOJ Fraud Settlement

    Former Lynn Tilton-piloted MD Helicopters Inc. has landed a mediated $31.5 million federal False Claims Act settlement with the U.S. Department of Justice and whistleblowers, saying in a Delaware bankruptcy court filing that the deal heads off nearly $110 million in triple damages liability in Alabama.

  • June 14, 2022

    LATAM Airlines Seeks OK For $2.75B In New Ch. 11 Financing

    Chilean air carrier LATAM Airlines will be seeking approval next week from a New York bankruptcy judge for $2.75 billion in new loans it says are necessary to complete its restructuring plans and exit Chapter 11.

  • June 14, 2022

    AG Sticks Up For NY Rate Cut Law In Credit Unions' Suit

    New York's attorney general told a Manhattan federal judge Monday that a new state law slashing the statutory interest rate on money judgments for consumer debt isn't unconstitutional, firing back at a legal challenge that alleges the law will unjustly strip judgment creditors of millions owed to them.

  • June 14, 2022

    Small Biz Debt Limit Raised, Crypto Exec Can't Ditch Case

    Congress took action to permanently raise the debt limit for small business Chapter 11 cases, a former cryptocurrency investment firm executive can't ditch his own bankruptcy case, and a bankrupt hotel company asked to deny a $6 million fee request from its own attorneys. This is the week in bankruptcy.

  • June 14, 2022

    Tilton, Zohar Squabble Over Appointing Stila Styles Manager

    A bankrupt fund battling with distressed debt maven Lynn Tilton over cosmetics company Stila Styles LLC is now asking the Delaware Chancery Court to clarify a May 31 ruling over who has the right to appoint Stila's manager — a request Tilton denounced Tuesday as a disguised motion for reargument.

Expert Analysis

  • Why Contempt May Be Apt Punishment For High Court Leaker

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    Contempt of court is an overlooked but potentially effective tool to punish whoever leaked the draft opinion overruling Roe v. Wade and protect the integrity of the U.S. Supreme Court, says Michael Zuckerman at Zuckerman Dispute Resolution.

  • Opinion

    Clients' Diversity Mandates For Law Firms Are Necessary

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    Coca-Cola recently scrapped its proposed diversity staffing requirements for outside counsel, and other companies may be reassessing their mandates due to external pressures, but it is important to remember the myriad factors supporting these policies and why they are more important now than ever before, says David Hopkins at Benesch Friedlander.

  • 5 Questions That Can Help Law Firms Win RFPs

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    As the volume of matter-specific requests for proposals continues to increase in the legal market, law firms can take some new steps to fine-tune their RFP response-drafting process and strategy, says Matthew Prinn at RFP Advisory Group.

  • How Law Firms Can Employ More Veterans

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    Hiring attorneys who are veterans is often overlooked in law firm diversity, equity and inclusion plans, even though it generates substantial benefits, but partnering with like-minded organizations and having a robust and active veterans group will go a long way in boosting a firm's ability to recruit and retain veterans, say Daniel Sylvester and Nicholas Hasenfus at Holland & Knight.

  • Associates, Look Beyond Money In Assessing Lateral Offers

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    In the face of high demand for corporate legal work and persistent staffing constraints, many law firms continue to offer sizable signing bonuses to new associates, but lateral candidates should remember that money is just one component of what should be a much broader assessment, says Stephanie Ruiter at Lateral Link.

  • Preventing Impermissible Client Solicitation After ABA Opinion

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    Following the American Bar Association's recent opinion on the limitations on client solicitation, attorneys at Harris Wiltshire examine the principal rules that govern a lawyer's ethical duties with respect to solicitation, explain how those rules vary by jurisdiction, and provide some practical tips for ensuring compliance.

  • Lessons On Avoiding E-Discovery Violations And Sanctions

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    Michael Fox and David Cohen at Reed Smith discuss how counsel can assist their clients in meeting preservation obligations for electronically stored information in light of recent federal rulings on spoliation sanctions motions for possible violations of this duty.

  • Collaborative Tech Will Dictate Future Law Firm Success

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    Law firms need to shift their focus from solving the needs of their lawyers with siloed solutions to implementing collaboration technology, thereby enabling more seamless workflows and team experiences amid widespread embrace of hybrid and remote work models, says Kate Jasaitis at HBR Consulting.

  • How To Effectively Prepare A Witness For Remote Testimony

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    Many of the lessons taught in an introductory theater performance class can provide foundational guidelines for virtual witness preparation, including the importance of props, proper lighting and wardrobe decisions, and of acknowledging that the star of your show is not a Zoom expert, say Hailey Drescher at Trask Consulting and Michael Thomas at Foley & Lardner.

  • As Cyber Risks Surge, Remember Attorneys' Ethical Duties

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    The prevalence of remote work and a greater threat of Russian cyberattacks should serve as a stark reminder of a lawyer's professional obligations to guard against unauthorized disclosure of client information and to protect client interests in the event of a cyberattack, says Alvin Mathews at Ulmer & Berne.

  • How Boards Can Address Insurance-Based Caremark Risk

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    Recent bankruptcy proceedings, such as Purdue Pharma's, highlight that insurance is critical to ensuring an organization's solvency and ability to pay claimants, making it important for boards to prioritize adequate insurance and risk-management as core Caremark responsibilities, say attorneys at Cooley.

  • Rethinking E-Discovery Readiness Amid Rise Of Collab Tools

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    Online collaboration platforms and instant messaging tools are quickly becoming the primary mode of internal business communications, leading to disputes around discoverability of data on these platforms and underscoring the need for new preservation processes to ensure compliance with discovery obligations, say Jay Carle and Ryan Tilot at Seyfarth.

  • Series

    Embracing ESG: Uber Counsel Talks Safety Standards

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    Katie Waitzman at Uber discusses how in-house counsel can use environmental, social and corporate governance principles to bridge risk and innovation, as exemplified by the company’s recent women’s safety initiatives.

  • Opinion

    Prospectively Appointing Jackson To High Court Is Unlawful

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    President Joe Biden should rescind his prospective appointment of Judge Ketanji Brown Jackson to the U.S. Supreme Court as the decision contradicts the court's reasoning in Marbury v. Madison, raises gravely troubling issues regarding presidential discretion and brings a serious question about her legitimacy as a justice, says attorney John Reeves.

  • Bankruptcy Rulings Highlight Split On Excusable Neglect

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    The Fifth Circuit's recent decision in CJ Holding, and a New York federal bankruptcy court's recent decision in Westinghouse, contribute to a growing split on the weight assigned to various factors when courts decide what may constitute excusable neglect in bankruptcy filing, say attorneys at Cullen Dykman.

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