Bankruptcy

  • May 18, 2020

    JC Penney Mulls 242 Store Closings In Texas Ch. 11 Plan

    Bankrupt J.C. Penney Co. is considering shutting down nearly a third of its stores by next year in a streamlining that will expand the retail chain's e-commerce business and focus on sites with lower competitive pressures and greater income, according to a disclosure filed Monday.

  • May 18, 2020

    Macau Casino Fund Gets OK For $856M Debt Swap

    A New York bankruptcy judge on Monday approved a deal between bondholders and a Silver Point Capital-owned company formed to invest in a Chinese casino project to resolve its contentious Chapter 11 case with an $856 million debt-for-equity swap.

  • May 18, 2020

    Judge Says Airline 'Exit Fee' Class Should Be Decertified

    A Florida magistrate judge has recommended decertifying a class of consumers accusing Dutch Caribbean airline Insel Air of charging passengers illegal exit fees before boarding flights from Miami International Airport, saying the airline's bankruptcy has made finding class members impossible.

  • May 18, 2020

    Centric Brands Hits Ch. 11 With $700M Debt Swap Plan

    Licensing business Centric Brands — whose portfolio includes Calvin Klein, Timberland and Disney — on Monday filed for Chapter 11 protection in a New York bankruptcy court, saying it has struck a deal to cut $700 million in debt as it wrestles with the impact of COVID-19.

  • May 18, 2020

    Shale Firm Gavilan Falls Into Ch. 11 Beset By Virus, Oil Slump

    Shale oil and gas company Gavilan Resources LLC hit Chapter 11 in Texas bankruptcy court with $552 million in secured debt and citing plummeting oil prices amid the COVID-19 pandemic and other market conditions as reasons for its trip into bankruptcy.

  • May 18, 2020

    Trucking Giant Comcar Hits Ch. 11 With $85M Debt

    Comcar Industries, one of the United States' largest privately owned trucking companies, said Monday it filed for Chapter 11 protection in the Delaware bankruptcy court, with a need to sell essentially all of its assets to escape more than $85 million in liabilities.

  • May 16, 2020

    JC Penney's Unveils Ch. 11 Strategy In Rare Weekend Hearing

    Illustrating the urgency of iconic retailer J.C. Penney's $5 billion Chapter 11 case in the midst of the COVID-19 pandemic, a Texas judge convened a rare weekend first-day hearing on Saturday as the company pursues restructuring efforts to either sell or reorganize the business by late summer.

  • May 15, 2020

    PG&E Judge Won't Disturb Fire Survivors' Ch. 11 Votes

    The federal judge overseeing Pacific Gas and Electric Co.'s bankruptcy rejected Friday an effort to throw out some fire survivors' votes on the utility's Chapter 11 reorganization plan, ruling that a wildfire attorney accused of concealing a conflict of interest from his clients did not violate bankruptcy laws.

  • May 15, 2020

    Talc Supplier Imerys Sets Ch. 11 Plan To Resolve Injury Claims

    Talc supplier Imerys Talc America Inc. told a Delaware bankruptcy court Friday that it has reached an agreement on a Chapter 11 plan calling for a going-concern asset sale to fund payouts for thousands of personal injury claims for talc exposure.

  • May 15, 2020

    What To Watch As COVID-19 Cash Crunch Fuels Hospital M&A

    Hospitals desperate to steady themselves after being buffeted by COVID-19's financial shockwave are likely in coming months to seriously consider mergers and acquisitions, but lawmakers are already pushing back and antitrust enforcers will probably be skeptical. Here are key issues to keep an eye on.

  • May 15, 2020

    Retail Giant JC Penney Retreats Into Ch. 11 Amid Pandemic

    Legendary department store chain J.C. Penney Co. filed for Chapter 11 protection late Friday in Texas following weeks of rumors about the retailer's finances after the COVID-19 pandemic forced it to close down all 850 of its stores, eliminating most of its revenue.

  • May 15, 2020

    Judge Won't Recuse Self From 21st Century Oncology Suit

    A New York bankruptcy judge refused Friday to recuse himself for allegedly insulting remarks against a lawyer suing officers of Florida cancer center 21st Century Oncology, saying the cited statements were based on the record in the case.

  • May 15, 2020

    Russia Asks Dutch Supreme Court To Nix $50B Yukos Awards

    Russia has asked the Supreme Court of the Netherlands to overturn the record-breaking $50 billion in arbitral awards issued to former shareholders of Yukos Oil Co. following Moscow's dismantling of the oil giant, the country's justice ministry announced on Friday.

  • May 15, 2020

    Miami Boutique AXS Law Adds Expert In Cross-Border Deals

    Miami-based boutique AXS Law Group has added a partner well versed in cross-border transactional work, a move the firm said it expects will help bolster its Brazil and greater Latin America practice.

  • May 15, 2020

    Ultra Petroleum Plans $2B Debt Swap In Return To Ch. 11

    Wyoming-based natural gas producer Ultra Petroleum Corp. can tap into a $25 million post-petition loan after a Texas bankruptcy judge authorized the financing as the company pursues a prepackaged plan of reorganization that envisions a reduction of its debt by $2 billion by mid-June.

  • May 14, 2020

    NY Court Upends Coverage Win For Former RCAP Execs

    A New York appeals court on Thursday reversed a lower court's ruling that two excess insurers for RCAP Holdings LLC breached their duty to cover legal costs incurred by five former RCAP executives, including onetime executive chairman Nicholas Schorsch, who are facing a sprawling suit brought by the firm's bankruptcy trust.

  • May 14, 2020

    Florida Sawmill Can Tap Ch. 11 Loan Over Priming Worries

    A Florida sawmill received interim approval Thursday from a Delaware bankruptcy court to obtain post-petition financing from an affiliate despite concerns raised by investors of the company's prepetition lender that its debt was being lowered in priority against its will.

  • May 14, 2020

    UCann's CBD Health Claims Must End Ch. 11, Creditor Says

    One of United Cannabis Corp.'s creditors pushed a Colorado judge to toss the company's Chapter 11 filing Wednesday, arguing even if the company is only marketing hemp products it is still violating the Food, Drug, and Cosmetic Act by making unapproved health claims.

  • May 14, 2020

    Liability Management Transactions Accelerate Amid Pandemic

    As coronavirus-related economic turmoil stresses corporate balance sheets, more companies are conducting what are called liability management transactions, a less glamorous but critical part of capital markets legal work that can help businesses ease financial pressures during a crisis.

  • May 14, 2020

    Fusion Connect Says Feds Have No Right To $2.1M Fraud Fine

    Defunct phone and internet provider Fusion Connect Inc. asked a New York bankruptcy judge Thursday to reject an attempt at collecting $2.1 million in unpaid federal civil penalties for telemarketing fraud, saying the government was not the victim.

  • May 14, 2020

    NGL Energy Loses Bid For $27M In Philly Refinery Ch. 11

    A Delaware judge on Thursday rejected NGL Energy Partners LP's bid to compel PES Holdings LLC to pay it $26.7 million in cash to settle a claim, saying doing so would "ignore" creditor distribution provisions in the Philadelphia refinery operator's already-approved Chapter 11 plan.

  • May 14, 2020

    Fox Rothschild Lands Polsinelli Bankruptcy Partner In Texas

    Fox Rothschild LLP has hired a Polsinelli PC shareholder experienced in advising mid-market energy and retail companies in bankruptcy and restructuring issues for the firm's financial restructuring and bankruptcy department in Texas.

  • May 14, 2020

    3rd Circ. Orders Resentencing For Convicted Pa. Fraudster

    The Third Circuit has ordered a Pennsylvania federal court to redo the sentencing of a former businessman convicted of bilking investors out of more than $1 million, ruling Wednesday the lower court judge never explained how she came up with the 12-year term she imposed.

  • May 14, 2020

    Intelsat Launches Ch. 11 With $14.8B Debt Rework Plan

    Intelsat SA and 34 affiliates sought Chapter 11 protection in the Eastern District of Virginia early Thursday, reporting a $14.8 billion secured debt burden, deep revenue losses to the COVID-19 pandemic and a need to restructure in order take part in an ongoing 5G wireless buildout.

  • May 13, 2020

    Vince McMahon Fights Ex-XFL Commish's Suit Over Firing

    XFL founder and World Wrestling Entertainment Inc. CEO Vince McMahon on Tuesday fired back in a breach of contract suit brought by the league's ousted commissioner, arguing that McMahon fired him because he "effectively abandoned his responsibilities" during the COVID-19 pandemic.

Expert Analysis

  • Texas Oil & Gas Operators Face Partner Co-Tenancy Risk

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    As they face the current downturn, it is important for oil and gas operators in Texas to understand the practical and strategic implications of a nonoperating partner declaring bankruptcy, then rejecting a joint operating agreement and becoming a co-tenant, say attorneys at Baker McKenzie.

  • Consider Legal Ramifications Before Recording Video Calls

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    Given the ease with which videoconference participants can unwittingly risk civil and criminal liability by unlawfully recording calls, attorneys should be mindful of — and clients may appreciate prospective advice on — state consent laws and the various meeting platforms' consent features, say Daniel Rozansky and Crystal Jonelis at Stubbs Alderton.

  • Key Tax Implications Of Debt Restructuring During COVID-19

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    Even modest adjustments to the terms of a debt instrument due to the COVID-19 pandemic can introduce significant federal income tax complexity — such as cancellation of indebtedness income for the debtor and original issue discount for the lender, say attorneys at Mayer Brown.

  • Perspectives

    COVID-19 Highlights Access Injustice In Personal Bankruptcy

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    In the age of enforced social distancing, the limits on access to electronic filing means bankruptcy is paradoxically only available to those individuals who can afford it, says Rohan Pavuluri at Upsolve.

  • 3 Tips For Deposing Difficult Witnesses Remotely

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    Taking a deposition of an uncooperative witness is one task made immeasurably more difficult during the current pandemic, and certain deposition styles that may be extremely forceful in person may have limited effectiveness over videoconference, says Qian Julie Wang at Robins Kaplan.

  • Opinion

    We Need To Fast-Track Chapter 11

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    While the Bankruptcy Code is normally a powerful tool for companies in financial distress, Congress should amend it to address the current level of rapid triage needed by businesses affected by the coronavirus pandemic, says Frank Eaton at Linda Leali.

  • Debt Buyback And Liability Management During The Pandemic

    Excerpt from Lexis Practice Advisor
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    Attorneys at Shearman & Sterling highlight key debt buyback and liability management considerations for companies as the trading prices of many corporate loans and bonds fall in response to the COVID-19 crisis.

  • Illinois Courts May Increasingly Embrace Equity Receiverships

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    While equity receivers are historically rare in Illinois, courts might be persuaded to see them as an integral part of the solution in loan enforcement lawsuits stemming from the COVID-19 crisis, say attorneys at Dykema.

  • How 'Mothballed' Ch. 11 Cases Will Affect Vendors, Landlords

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    Rather than rushing to shorten their time in bankruptcy, some businesses filing for Chapter 11 protection due to the effects of COVID-19 have sought to pause their cases, resulting in unprecedented freezes of standard administrative payments to landlords and vendors, say attorneys at WilmerHale.

  • Tenn. Hospital Bankruptcy May Be The First Of Many

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    As the already-embattled health care industry struggles to confront the coronavirus pandemic, Tennessee hospital chain Quorum Health's recent bankruptcy could indicate that significant structural change is coming to the industry as a whole, say attorneys at Rivkin Radler.

  • Opinion

    New Jersey's Plan For 2020 Law Grads Is Brilliant

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    The New Jersey Supreme Court's much-needed order allowing this year's law school graduates to practice prior to being admitted should be adopted in New York — and developed further even after the pandemic ceases, says attorney Dmitriy Shakhnevich.

  • Managing E-Discovery Providers In Times Of Crisis

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    Retention of e-discovery providers usually involves considerable time and several layers of approval, but practicalities during the current emergency have proven that law firms must have the acuity to make smart but quick game-time decisions, says Shannon Capone Kirk at Ropes & Gray.

  • Witness Preparation Tips For Your Next Video Deposition

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    Just like in a normal deposition, remind your witness that testimony provided via videoconference may be used in a courtroom, so they must be mindful of everything they say or don’t say, the space they are in, and their attire, say Adam Bloomberg and Merrie Jo Pitera at Litigation Insights.

  • How To Mollify Auditor Doubts Over A Co.'s Viability

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    Proactive liability management and strategy considerations can help convince auditors that an entity can continue as a going concern amid the COVID-19 pandemic, as companies battle resulting economic and liquidity issues, says Adele Hogan at Nelson Mullins.

  • Rebuttal

    In Defense Of Virtual Mediation

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    A recent Law360 guest article highlighted reluctance among some in the legal community to embrace video mediation, but when assessing the concerns, it quickly becomes clear that the disinclination is not rooted in any firm rationale, says Michael Willemin at Wigdor.

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