Bankruptcy

  • July 23, 2020

    Ohio Corruption Case Muddles Power Co.'s Bankruptcy Exit

    An alleged $60 million bribery scheme connected to Ohio's decision to bail out coal and nuclear power plants raises a thicket of potential trouble for the successor to FirstEnergy Solutions, which owns the bailed out plants and recently emerged from bankruptcy.

  • July 23, 2020

    Judge To Wait On Claim Talks Result For Purdue Class Call

    A New York bankruptcy judge Thursday agreed to adjourn a request to allow five new classes of alleged opioid victims to file claims in Purdue Pharma's Chapter 11 until after claim mediation ends, saying an agreement there would mean he wouldn't have to rule.

  • July 23, 2020

    Travel Entertainment Biz Can Tap Into $30M Of Ch. 11 Loan

    A Delaware judge on Thursday gave Global Eagle Entertainment Inc. the go-ahead to access $30 million of its Chapter 11 post-petition financing package as the company seeks a buyer after being pushed into bankruptcy by the impact of the COVID-19 pandemic.

  • July 23, 2020

    Carlton Fields Nabs Baker Donelson Trial Vet In Atlanta

    Carlton Fields PA has nabbed a high-stakes corporate defense trial attorney from Baker Donelson Bearman Caldwell & Berkowitz PC in Atlanta who plans to expand a team of lawyers typically called at the last minute before trial.

  • July 23, 2020

    Pier 1 OK'd For $18M Asset Sale After Stalking Horse Outbid

    Home decor retailer Pier 1 Imports Inc. received a Virginia bankruptcy judge's approval Thursday to sell a Texas distribution center for about $18 million in a deal that significantly improved on a baseline offer from a stalking horse bidder.

  • July 23, 2020

    Real Estate Firm IMH Hits Ch. 11 To Become JP Morgan Unit

    Real estate holding company IMH Financial Corp. sought Chapter 11 protection in Delaware Thursday, after weeks of talks on a proposed restructuring of its nearly $129 million debt that will leave the company a private holding of JPMorgan Chase.

  • July 23, 2020

    Declining Coal Demand Sends Rhino Resource Into Ch. 11

    Kentucky coal mining operation Rhino Resource Partners hit Chapter 11 in Ohio, saying a decline in demand for its metallurgical coal over the past 18 months has led to staggering operating losses.

  • July 23, 2020

    Ann Taylor Parent Files Ch. 11 With $1B Debt Swap Plan

    The parent of clothing chain Ann Taylor filed for Chapter 11 on Thursday in a Virginia bankruptcy court with a debt-for-equity plan it says will cut $1 billion in debt and allow the company to bounce back from months of COVID-19 store closures.

  • July 22, 2020

    Calif. Municipalities Say PG&E Illegally Diverts Taxes

    The city and county of Sacramento and 14 other California cities sued Pacific Gas and Electric Co. in state court Tuesday, claiming the utility is illegally diverting millions of local government taxes annually and using the scheme to reward its largest customers and subsidize the price of its service.

  • July 22, 2020

    LATAM Airlines Gets OK For $9.8M Breakup Fee On $1.3B DIP

    A New York bankruptcy judge on Wednesday approved a $9.75 million breakup fee for a prospective LATAM Airlines Group debtor-in-possession lender on a $1.3 billion loan, saying the airline should be allowed to honor the bargain it had struck with the lender.

  • July 22, 2020

    Pyxus Gets Go-Ahead For $75M Ch. 11 Exit Financing

    A Delaware bankruptcy judge on Wednesday gave tobacco supplier Pyxus International Inc. the go-ahead with plans to secure $75 million in secured loan financing the company said will be needed to exit its prepackaged Chapter 11.

  • July 22, 2020

    GNC's Bidding Procedures OK'd After Extending Sale Timeline

    Bankrupt vitamin and supplement retailer GNC Holdings Inc. received court approval for its proposed Chapter 11 bidding procedures Wednesday after telling a Delaware judge that it has pushed back a deadline to seek approval of a stalking horse bid, extending the proposed sale process by one week.

  • July 22, 2020

    Avenatti Sentencing Moved To Fall As COVID-19 Levels Rise

    A Manhattan federal judge on Tuesday agreed to delay until fall the sentencing of Michael Avenatti following his conviction for extorting Nike Inc., after the embattled celebrity lawyer raised logistical concerns about traveling from COVID-19 hot spots amid the pandemic.

  • July 22, 2020

    Real Estate Cos. Accused Of Property-Poaching Scheme

    A pair of real estate companies schemed to enter properties they didn't own, including by pretending to have court authorization, and tried to usurp the true property owners' contractual rights, a group of real estate trusts told a Florida federal court.

  • July 22, 2020

    Oil Well Services Co. Patriot Eyeing Quick Ch. 11 Sale Process

    Oil well services company Patriot Well Solutions told a Texas bankruptcy court Wednesday that it hopes to have its going concern asset sale over and done within 60 days to ensure a speedy exit from Chapter 11.

  • July 22, 2020

    Celadon Floats $3.25M Deal In Ch. 11 Receivables Fight

    Trucking firm Celadon Group proposed a settlement late Tuesday in Delaware bankruptcy court under which it would make $3.25 million in payments to resolve an ongoing dispute in its Chapter 11 case involving more than $6 million of receivables held by the debtor. 

  • July 22, 2020

    Corruption Case Fuels Push To Undo Ohio Coal, Nuke Bailout

    Ohio lawmakers on Wednesday said they will introduce legislation to repeal a controversial $1 billion coal and nuclear power plant bailout that's central to an alleged $60 million bribery scheme that brought racketeering charges down on the speaker of the state House of Representatives.

  • July 22, 2020

    Pandemic Slump Sends Travel Entertainment Biz Into Ch. 11

    Pointing to the COVID-19 pandemic's flattening of the world's travel industry, California-based Global Eagle Entertainment Inc. sought Chapter 11 protection in Delaware early Wednesday for its on-the-road diversions business, lugging $856 million in secured debt and with a $675 million stalking horse bid for its assets in hand.

  • July 21, 2020

    Permian Tank Seeks Fast Track For Ch. 11 Sale Process

    Texas-based oil and gas storage tank maker Permian Tank & Manufacturing Inc. asked a Delaware bankruptcy judge Tuesday to fast track a first step in its Chapter 11 sale process, citing milestones in a related bankruptcy loan agreement.

  • July 21, 2020

    Ohio House Speaker Charged In $60M Energy Corruption Case

    The speaker of the Ohio House of Representatives was released on bail Tuesday after his arrest on allegations he and others took $60 million in corrupt payments from a utility in exchange for passing a $1 billion nuclear energy bailout.

  • July 21, 2020

    Actresses Want Weinstein Co. Liquidated, Rip 'Deathtrap' Deal

    Two actresses who say they were sexually assaulted by Harvey Weinstein asked a Delaware bankruptcy judge Tuesday to liquidate his entertainment company's estate, after a New York federal judge rejected a global settlement that the women slammed as a "deathtrap."

  • July 21, 2020

    NJ Supreme Court Answers 3rd Circ. State Law Query

    New Jersey's highest court on Tuesday determined that a provision of New Jersey law doesn't stop someone from filing a lawsuit if they successfully moved earlier for the end of a different suit over the same issues for failure to state a claim.

  • July 21, 2020

    Oil Well Services Co. Blames Price War And Virus For Ch. 11

    Oil well services company Patriot Well Solutions filed for Chapter 11 protection in Texas bankruptcy court on Tuesday, saying it is seeking a going concern sale as it deals with the fallout of an oil price war and the coronavirus pandemic.

  • July 21, 2020

    Hertz Agrees To Sell Cars, Pay $650M To Vehicle Lenders

    Bankrupt car rental agency Hertz agreed late Monday to sell hundreds of thousands of vehicles by the end of 2020 and pay $650 million to its fleet financing lender to avoid a fight over a master lease agreement.

  • July 21, 2020

    Hinshaw Swings Into New Orleans With Ex-McGlinchey Team

    With an uptick in regulatory and bankruptcy work caused by the coronavirus pandemic, Hinshaw & Culbertson LLP says that it's opening a new office in New Orleans led by five partners the firm scooped up, yet again, from McGlinchey Stafford PLLC.

Expert Analysis

  • Confronting Mental Distress In The Legal Profession

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    Even before the pandemic, troubling data about mental distress among lawyers pointed to a profession in crisis, but addressing the challenge requires a better understanding of the causes, says Jonathan Prokup at Cigna Corp.

  • Opinion

    Litigation Finance Investments Are Not Risk-Free Loans

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    The Ninth Circuit's certification order last week in Fast Trak v. Sax presents an important opportunity for the New York high court to affirm the consensus among courts — litigation finance transactions are not loans subject to usury laws, say Wendie Childress and William Marra at Validity Finance.

  • Opinion

    How White Privilege Helped Me Succeed In BigLaw

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    The white, male power structure has eased the path for lawyers like me for far too long, and we should now be responsible for dismantling this systemic bias within the legal industry, says Scott McLaughlin at Eversheds Sutherland.

  • Steps For Commercial Real Estate Lenders As Biz Resumes

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    Despite the country's gradual reopening, commercial real estate lenders should not be surprised if borrowers cannot resume making regular payments anytime soon, and should consider their financial lifelines and opportunities for cooperation, says Katherine Amador at Berger Singerman.

  • Keys To A Thriving Biz Development Culture At Your Law Firm

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    As law firms continue to experience the economic impact of the COVID-19 crisis, it is more important than ever that they reduce reliance on just a few rainmakers and foster a culture that makes business development a way of life for everyone — from junior associates to senior partners, says Elise Holtzman at The Lawyer's Edge.

  • How Video Mediation Can Help Us Serve Clients Better

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    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.

  • Avoid Claims Of Bankruptcy Fraud Amid Creditor Scrutiny

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    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.

  • Mental Health Efforts Will Support Diversity In Legal Industry

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    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.

  • Valuing Firms In A World Of Pandemic-Induced Bankruptcies

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    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.

  • New Ruling May Aid Syndicated Loan Market Amid Pandemic

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    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.

  • Civility Could Be Litigators' New Normal Even Post-Pandemic

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    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 Must Beware Risks In Nontraditional Financing

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    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.

  • A Creative Strategy For Repaying PPP Loans

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    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.

  • 2 Tested Alternatives To Unavoidable Court Delays

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    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.

  • Opinion

    Minn. Ruling Represents Sensible Stance On Legal Finance

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    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.

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