Bankruptcy

  • 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.

  • April 25, 2022

    8th Circ. Revives Fraud Claims Against Bankrupt Co.'s Owners

    The Eighth Circuit has rejected a Nebraska bankruptcy court ruling that allowed the owners of an electrical subcontractor to escape a $600,000 fraud claim in a Chapter 7 proceeding, saying the judge failed to address whether the claim was allowed under state law.

  • April 25, 2022

    Mallinckrodt Creditors Can't Get Ch. 11 Plan Halted

    Unsecured creditors of drugmaker Mallinckrodt PLC have lost their bid to delay the effective date of the company's Chapter 11 plan in Delaware federal court, with a Third Circuit judge saying the creditors had not shown they would be irreparably harmed if the plan is consummated.

  • April 25, 2022

    NY Architectural Firm EYP Opens Ch. 11 In Del., Eyeing Sale

    New York-based architectural and design firm EYP Group Holdings and its affiliates have opened a sale-focused Chapter 11 case in Delaware, carrying $149 million in secured debt and aiming for a $67.7 million bidder-to-beat "stalking horse" transaction led by private equity Ault Alliance Inc.

  • April 22, 2022

    Alto Maipo Invokes Ch. 11's Global Reach In Contract Fight

    A bankrupt Chilean hydropower project told a bankruptcy judge in Delaware Friday that a jurisdictional challenge by its largest customer would upend the Bankruptcy Code's global reach in disputes over a Chapter 11 debtor's property.

  • April 22, 2022

    Cleary, Orrick Can't Kill Malpractice Suit Over $2B Energy Buy

    A New York state judge on Friday rejected a bid by Orrick Herrington & Sutcliffe LLP and Cleary Gottlieb Steen & Hamilton LLP to escape a $310 million malpractice lawsuit over an alleged typo in a deal to buy $2.4 billion worth of wind and solar energy facilities.

  • April 22, 2022

    Bankruptcy Omission Doesn't Bar Medical Malpractice Suit

    A Kentucky appellate panel on Friday revived a suit accusing health care providers of negligently performing a medical procedure which caused a woman's brain injury, saying the woman's failure to declare the potential claim in bankruptcy court did not automatically bar the suit under a legal doctrine.

  • April 22, 2022

    Boy Scouts Can Sell $13.5M Warehouse To Pad Survivor Fund

    The Boy Scouts of America on Friday won a Delaware bankruptcy court's blessing of a warehouse sale and leaseback plan that will place $13.5 million into the compensation fund for the child sex abuse claims underpinning the organization's Chapter 11 case.

  • April 22, 2022

    Alex Jones' InfoWars Ch. 11 Branded 'Illegitimate' On Day One

    A bankruptcy case filed by interests of conspiracy promoter Alex Jones stalled on the launchpad in the Southern District of Texas on Friday amid multiple objections to the legitimacy of the filing and to the trust that would pay claims arising from the 2012 Sandy Hook Elementary School massacre.

  • April 22, 2022

    Fla. Firms Launch 3rd Circ. Fight Over Ch. 11 DQ, Sanctions

    Two Florida law firms asked the Third Circuit on Friday to overturn a Delaware bankruptcy court's orders sanctioning and disqualifying them from a case over alleged disclosure failures, arguing the lower courts had improperly barred the firms from collecting fees for millions of dollars' worth of work.

  • April 22, 2022

    Boy Scouts Want $15M In Fees For Girl Scouts TM Suit Win

    The Boy Scouts of America asked a New York federal judge Thursday to approve $15.4 million in legal fees for beating the Girl Scouts' trademark infringement lawsuit challenging the Boy Scouts' use of genderless scouting terms, arguing the case was launched as a "competitive ploy" and warrants fees.

  • April 22, 2022

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

    This past week in London has seen corporate investigators hired to spy on a former Dechert LLP attorney sue him for harassment, another wave of lawsuits accusing major automakers of cheating emissions standards, and Barclays Bank attempting to enforce a judgment against the scandal-hit executive of a failed hospital operator.

  • April 21, 2022

    GWG Gets OK To Slim Down Initial Ch. 11 Financing

    Life insurance-backed bond seller GWG Holdings emerged from its first-day Chapter 11 hearing with a slimmed-down $10 million financing package after a Texas bankruptcy judge questioned how much the company had originally planned to borrow.

  • April 21, 2022

    Ex-Paralegal Ran $600K Embezzlement Scheme, Feds Say

    A former paralegal at a Chicago law firm orchestrated a $600,000 embezzlement scheme from bankruptcy estate accounts, the U.S. Department of Justice alleged a six-count indictment announced Thursday.

  • April 21, 2022

    8th Circ. Revives $6.9M Fight Against Petters Ponzi Investor

    The Eighth Circuit has partially revived one of multiple suits seeking to recover payments made to early investors in convicted ex-CEO Thomas Petters' $3.7 billion Ponzi scheme, finding on Thursday that the trial court erred in handing an early investor a summary-judgment win in a dispute over a $6.9 million transfer.

  • April 21, 2022

    Toys R Us Creditors' Trust Can't Claw Back $12M From UPS

    The trust representing creditors for the Toys R Us bankruptcy estate can't claw back $12 million that the retailer had paid UPS, after a Virginia bankruptcy judge ruled that the 2018 settlement wrapping up the chain's operations had released avoidance claims against other creditors.

  • April 21, 2022

    Customers Lift Airline Bankruptcy Merger Row To 2nd Circ.

    A group of airline customers signaled Thursday their intention to appeal a New York federal judge's ruling upholding a 2013 merger between American Airlines and US Airways up to the Second Circuit Court of Appeals, extending the long-running antitrust battle that arose from American's bankruptcy.

Expert Analysis

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

    Author Photo

    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

    Author Photo

    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

    Author Photo

    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

    Author Photo

    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

    Author Photo

    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

    Author Photo

    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

    Author Photo

    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

    Author Photo

    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

    Author Photo

    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

    Author Photo

    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

    Author Photo

    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

    Author Photo

    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

    Author Photo

    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

    Author Photo

    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

    Author Photo

    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.

Want to publish in Law360?


Submit an idea
Can't find the article you're looking for? Click here to search the Bankruptcy archive.
Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!