Bankruptcy

  • April 29, 2022

    Sanitizer Co. Ch. 11 Loan Called Attempt To Dodge Liability

    A creditor of a Mexican Kimberly-Clark subsidiary that shut down after distributing contaminated hand sanitizer is calling a $2.5 million Chapter 11 financing proposal from the subsidiary's parent company an attempt to dodge liability for the contamination.

  • April 29, 2022

    Tennis Ace Gets 2½ Years For Dodging Bankruptcy Debts

    Multiple Grand Slam tennis champion Boris Becker was sentenced to two years and six months in prison at a London court on Friday for hiding hundreds of thousands of euros of assets from bankruptcy trustees pursuing him for millions in unpaid debts.

  • April 28, 2022

    NY Sheriffs Blocked From Enforcing Slashed Debt Rate Law

    A New York federal judge on Thursday blocked Empire State sheriffs from enforcing a new state law that retroactively reduces the statutory interest rate on judgments in consumer debt cases from 9% to 2%, ruling that credit unions challenging the measure have "clearly established irreparable harm."

  • April 28, 2022

    Hess Unit Hits Ch. 11 Over St. Croix Refinery Asbestos Claims

    A wholly owned subsidiary of Hess Corp. filed for Chapter 11 protection Thursday in Texas, listing asbestos litigation claims from employees of a St. Croix refinery it formerly owned as its largest debts.

  • April 28, 2022

    Gulf Coast Says Its Ch. 11 Plan Is Best Deal For All Claimants

    Nursing home chain Gulf Coast Health Care asked a Delaware bankruptcy judge Thursday to approve its Chapter 11 plan, saying it will provide the best possible result for unsecured creditors, including the tort claimants who have opposed it.

  • April 28, 2022

    Judge Slashes Suit Claiming MabVax Execs Duped Investors

    A New York federal judge has dismissed the majority of the claims in a suit alleging former top executives at biotech company MabVax Therapeutics hid information to dupe investors out of millions as the company headed for bankruptcy.

  • April 28, 2022

    Fee Examiner Ruling On Tap In Corp. Group Banking Ch. 11

    A Delaware bankruptcy judge said Thursday she wouldn't consider any professional fee applications stemming from the Chapter 11 case of a Chilean bank holding company until she decides on a motion to appoint an examiner to investigate the nearly $20 million in fees already incurred.

  • April 28, 2022

    Bankruptcy Doldrums Persist Despite Economic Pressures

    A historic, sustained lull in the rate of bankruptcy filings is continuing after the initial stages of the COVID-19 pandemic swept through the restructuring space in mid-2020, and the downturn will likely persist for several more months despite rampant inflation and rising interest rates, experts say.

  • April 28, 2022

    Pa. Debtors Granted Class Cert. In Debt-Threat Letter Suit

    A Pennsylvania federal judge granted class certification for those who received a debt collector's letters urging them to take advantage of discounted repayment offers before court judgments were entered against them, even though there were no pending court cases where judgments could be entered.

  • April 27, 2022

    Riled Insurers Win Time To Probe Diocese's New Ch. 11 Plan

    A New Jersey bankruptcy judge said Wednesday he would delay the confirmation of a Roman Catholic diocese's Chapter 11 plan at the behest of insurers blindsided by the debtor's abandonment of a deal that would have capped their payouts for clergy sex abuse survivors at $30 million.

  • April 27, 2022

    Bankrupt Lear Capital's Wronged Investors Piling Up In Ch. 11

    A trustee in the bankruptcy of metal and coin investment firm Lear Capital Inc. told a Delaware bankruptcy judge Wednesday that "dozens and dozens" of consumers have inquired about the case, filed in the wake of fraud claims and now facing dismissal calls from regulators in 24 jurisdictions.

  • April 27, 2022

    Gulf Coast Adds $1.5M To Tort Pot In Ch. 11 Plan

    The confirmation hearing for Gulf Coast Health Care's Chapter 11 plan restarted Wednesday with the announcement of another $1.5 million in cash for tort claimants and arguments that the plan is the best deal for unsecured creditors of the nursing home chain.

  • April 27, 2022

    Purdue Ch. 11 Injunction Extended Pending 2nd Circ. Decision

    A preliminary injunction barring the pursuit of claims against bankrupt drugmaker Purdue Pharma LP and the Sackler family will be extended for at least another month as the parties await a Second Circuit ruling on an appeal of releases included in the company's confirmed Chapter 11 plan.

  • April 27, 2022

    Teligent Gets Ch. 11 Disclosure, Voting Plans OK'd In Del.

    Bankrupt pharmaceutical venture Teligent Inc. secured bankruptcy court approval in Delaware Wednesday for its Chapter 11 disclosure statement and confirmation schedule, after a judge stressed a need for greater clarity in identifying liability releases and notifying those giving or getting them.

  • April 27, 2022

    Nursing Home Biz Wins Court Approval Of Bankruptcy Plan

    American Eagle Delaware Holding Co. LLC won court approval Wednesday of a Chapter 11 plan to eliminate $40 million of debt and allow the bankrupt nursing home chain to keep operating, overcoming the dissent of one class of bondholders that voted to reject the plan.

  • April 27, 2022

    Express Scripts Wants Departing Attys To Aid Acthar Dispute

    Local counsel for Rockford, Illinois, shouldn't be allowed to exit the city's antitrust suit over Mallinckrodt's anti-seizure drug Acthar because they're the only ones who can address some outlying discovery disputes in the case, Express Scripts argued Tuesday.

  • April 26, 2022

    US Trustee Contests Releases In Stoneway Capital Ch. 11 Plan

    The Office of the U.S. Trustee has urged a New York bankruptcy judge to reject Argentine power plant owner Stoneway Capital Corp.'s Chapter 11 plan unless it obtains consent to third-party liability releases and more stringently determines who is ineligible for such releases.

  • April 26, 2022

    Jurisdiction Concerns Require Ch. 11 Complaint In Dam Case

    A Delaware bankruptcy judge said Tuesday she could not entertain a motion from bankrupt Chilean hydroelectric dam developer Alto Maipo to assume a power purchase agreement with a customer because she did not have jurisdiction to force a ruling on the customer.

  • April 26, 2022

    Week In Bankruptcy: InfoWars' Shaky Start, Releases Still Roil

    Alex Jones moved three holding companies into bankruptcy last week to shield his intellectual property from defamation suits, immediately drawing the ire of the Sandy Hook families that sued him for defamation, the Office of the U.S. Trustee and the judge overseeing the cases; the U.S. trustee continued its national crusade against non-consensual third-party releases; and mass tort cases chugged along. This is the week in bankruptcy.

  • April 26, 2022

    InfoWars Defends Legitimacy Of Small Business Ch. 11 Filing

    Three companies affiliated with conspiracy promoter Alex Jones are defending the legitimacy of their Texas Chapter 11 bankruptcy filings, saying they are commercial small businesses that play a "critical role" in his overall enterprise.

  • April 26, 2022

    1st Circ. Approves Puerto Rico Teacher Pension Changes

    The First Circuit on Tuesday upheld an overhaul to teacher pensions in Puerto Rico, finding that Congress gave the commonwealth's restructuring board broad latitude in figuring out the best ways to set the island on a more sound fiscal path.

  • April 26, 2022

    Architectural Firm Gets OK To Unveil Ch. 11 Sale Plans Early

    A Delaware bankruptcy judge on Tuesday gave New York-based architectural and design firm EYP Group Holdings permission to start on an accelerated schedule toward a credit bid sale to a secured lender and to tap into $5 million in bankruptcy financing.

  • April 25, 2022

    Fed. Judge Who Fired Unvaxxed Worker Cleared Of Bias Claim

    A U.S. bankruptcy judge who fired a worker after she declined to get the COVID-19 vaccination has been cleared of allegations of religious discrimination and abuse of power, according to a ruling from a Third Circuit judge.

  • April 25, 2022

    US Trustee Calls Teligent Ch. 11 Plan Releases 'Baffling'

    The U.S. Trustee's Office on Monday urged a Delaware bankruptcy judge to reject generic pharmaceutical maker Teligent Inc.'s Chapter 11 plan disclosures, saying the statement provides a "baffling" explanation of impermissible, involuntary third-party liability releases.

  • April 25, 2022

    Catching Up With Delaware's Chancery Court

    A Delaware vice chancellor released what could become a landmark ruling on liquidating or rehabilitating struggling insurance companies, yet another call surfaced for greater clarity on the detail required for the increasingly common books and records suits, and three law firms got a rare hat tip from the bench for going the extra mile. Here's your weekly roundup from Delaware Chancery Court.

Expert Analysis

  • The Flaws In The Traditional Approach To Hiring A Law Firm

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    Trevor Faure at Smarter Law Solutions and Gregory Richter at Major Lindsey offer an inside look at Teva Pharmaceuticals' recent overhaul of its law firm relationships through anonymous grading, and discuss how the company’s surprising findings on the correlation between quality and cost reveal shortcomings in traditional business development.

  • Bankruptcy Blocking: What Wind Power Cos. Must Know

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    Winter brings the risk of severe weather events that could force some wind energy companies to seek restructuring, but this can be difficult when key parties are able to block bankruptcy filings — so companies, lenders and other industry players should monitor courts' rulings on this issue and proactively address any conflicts, say attorneys at DLA Piper.

  • Fight Real Estate Defaults With Proactive Bankruptcy Filings

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    Borrower-debtors facing default should consider wielding tactical filings under the Bankruptcy Code as a sword to fight off overzealous lenders seeking accelerated payments, cure their defaults and move forward without risk in the wake of COVID-19 disruptions, say Joseph Pack and Jessey Krehl at Pack Law.

  • Keys To Keeping Law Firm Talent Amid The Great Resignation

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    With employees leaving their jobs at an unprecedented pace during the "Great Resignation," law firm leaders looking to retain associates and professional staff need to operate with emotional intelligence, talk about failures openly and take the time to offer frequent feedback, says Dorianna Phillips at Lane Powell.

  • Ch. 11 Ruling Highlights When Reasonableness Backfires

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    A Hawaii bankruptcy court’s recent ruling in the Minesen case, holding up an assignment of a contract despite federal law to the contrary, is reason to rethink the advisability of agreeing, in writing, to be reasonable, says Lisa Tancredi at Womble Bond.

  • Strategies For Coping With Stress In The Legal Profession

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    Attorneys should explore certain fast, accessible strategies for stress management, as unexpected stressors from work obligations increase at the beginning of the year and are only heightened by improvements in technology and an accelerated flow of communication, says David Kouba at Arnold & Porter.

  • How AI Can Transform Crisis Management In Litigation

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    Attorneys should understand how to use rapidly advancing artificial intelligence technology to help clients prepare for potential catastrophic events and the inevitable litigation arising from them, from predicting crises before they occur to testing legal theories once they arise, say Stratton Horres at Wilson Elser and David Steiger.

  • Takeaways From 6th Circ.'s RE Tax Foreclosure Ruling

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    The Sixth Circuit's recent decision in Lowry v. Southfield sheds light on when exactly real estate tax foreclosures can be avoided as fraudulent transfers, and could potentially impede municipalities' ability to collect unpaid property taxes through tax sales, says Scott Bernstein at Skolnick Legal Group.

  • Supervisor Relationships Are Key To Beating Atty Burnout

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    In order to combat record attorney turnover and high levels of burnout, law firm partners and leaders must build engaging relationships with supervisees, fostering autonomy and control, enabling expression of values, and building a sense of community and belonging, says Anne Brafford at the Institute for Well-Being in Law.

  • Make-Whole Claim Lessons From Hertz Bankruptcy Ruling

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    After the Delaware bankruptcy court's recent decision in Wells Fargo v. Hertz, courts may continue to hear the assertion that early payoff premiums constitute unmatured interest, which could shape best practices in formulating make-whole clauses to avoid such arguments, say attorneys at Mayer Brown.

  • The Rising Demand For Commercial Litigators In 2022

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    Amid broken supply chains, pandemic-induced bankruptcies and a rise in regulation by litigation, strong commercial litigators — strategists who are adept in trying a range of tortious and contractual disputes — are becoming a must-have for many law firms, making this year an opportune moment to make the career switch, say Michael Ascher and Kimberly Donlon at Major Lindsey.

  • Evaluating Director Protections After Del. Bankruptcy Ruling

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    The Delaware Bankruptcy Court's recent decision in Friedman v. Wellspring Capital, outlining the conditions under which an alleged duty of loyalty breach can survive a motion to dismiss, may undermine corporate decision makers' ability to negotiate for what are customary and necessary protections as they manage distressed entity transactions, say attorneys at Ropes & Gray.

  • Exculpation Ruling Shows Danger Of Overbroad Clauses

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    A New Jersey bankruptcy court’s recent decision in BAK Advisors v. Sax, holding that an accounting firm’s exculpation clause was too broad and contrary to public policy, should urge accountants and advisers to narrow and specify liability limitation language in agreements, and to carefully consider the timing of dismissal motions, says Kenneth Rosen at Lowenstein Sandler.

  • How In-House Counsel Can Make The Case For Settling Early

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    Following the recent settlement in McDonald's v. Easterbrook, in-house counsel should consider decision-tree analyses and values-driven communications plans to secure effective, early resolutions in litigation, saving time and money and moving the company mission forward, say Ronald Levine at Herrick Feinstein and Richard Torrenzano at The Torrenzano Group.

  • To Retain Talent, GCs Should Prioritize Mission Statements

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    With greater legal demands and an increasing number of workers resigning during the pandemic, general counsel should take steps to articulate their teams' values in departmental mission statements, which will help them better prioritize corporate values and attract and retain talent, says Catherine Kemnitz at Axiom.

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