Bankruptcy

  • April 20, 2021

    Canadian Pot Co. CannTrust Secures $17.8M DIP Financing

    Embattled Canadian cannabis company CannTrust Holdings Inc. said Tuesday that it has secured a 22.5 million Canadian dollar ($17.8 million) credit facility that, if approved by an Ontario court, will enable the company to operate as a debtor in possession as it works to restructure and wrap up shareholder litigation.

  • April 20, 2021

    NRA Board Member Calls Leadership A 'Trainwreck'

    Two board members of the National Rifle Association testified Tuesday in Texas bankruptcy court that a Chapter 11 examiner is needed to look into the organization's compliance with nonprofit laws, with one calling current leadership a "trainwreck."

  • April 20, 2021

    Court Won't Trim Claims BofA Botched Bankruptcy Report

    A California federal judge Tuesday rejected Bank of America's bid to dismiss claims it violated state law when it incorrectly reported that a customer had declared bankruptcy, saying a failure to do a reasonable cross-check of his information would have violated California law.

  • April 20, 2021

    Del. Drug, Mental Health Provider Opens Ch. 11 For Sale

    Facing triple-damage False Claims Act suits, inmate and patient damage claims and defaults on some of its more-than $50 million debt, Delaware's largest outpatient drug and mental health care provider sought Chapter 11 protection late Monday, aiming for a bankruptcy-shielded sale of the businesses.

  • April 20, 2021

    BHP, Vale-Owned Mineral Co. Files Ch. 15 For $9B Debt Reorg

    A Brazilian mining joint venture between Vale SA and the BHP Group involved in a 2015 dam disaster asked a New York bankruptcy court for Chapter 15 bankruptcy recognition as it attempts to reorganize $8.8 billion in debt in the Brazilian courts.

  • April 19, 2021

    NRA Can Argue LaPierre Paid Back Extra Benefits

    The National Rifle Association Monday turned back arguments from the New York Attorney General that it has not offered enough proof to be allowed to claim that CEO Wayne LaPierre has paid back all the excess benefits the organization has paid him.

  • April 19, 2021

    Ponzi Investors Want Class Cert. In Suit Against Comerica

    A group of investors in the Woodbridge Group Ponzi scheme are asking a California federal judge to certify them as a class in a suit against Comerica Bank, which they say aided Woodbridge's fraud by ignoring "hundreds" of red flags of criminal activity.

  • April 19, 2021

    Texas Questions Griddy's Need For PR Firm In Ch. 11 Case

    The state of Texas objected Monday to bankrupt electricity provider Griddy Energy LLC's proposal to retain a public relations outfit, saying that since the debtor has no customers and is liquidating it would be a waste of estate resources to hire the firm.

  • April 19, 2021

    Investors Sue Credit Suisse Over Greensill, Archegos Fiascos

    Credit Suisse Group AG investors accused the bank in New York federal court of misleading the public about its oversight of "high-risk clients" Greensill Capital and Archegos Capital Management, whose recent implosions have cost the bank billions of dollars.

  • April 19, 2021

    Sundance Cleared For Ch. 11 Debt Swap With Term Lenders

    Bankrupt oil and gas driller Sundance Energy received court approval from a Texas judge Monday to turn over ownership of the company to its secured term loan lenders through a debt-for-equity swap plan.

  • April 19, 2021

    Justices Won't Review Tribune Media Ch. 11 Clawback Case

    The U.S. Supreme Court on Monday declined to hear the appeal of a Second Circuit decision that the Bankruptcy Code bars Tribune Co. creditors from clawing back $8.3 billion stockholders received in a 2007 leveraged buyout ahead of the media company's bankruptcy filing about a year later.

  • April 19, 2021

    Norwegian Air Sister Firms Want In On Boeing Battle

    Six of Norwegian Air Shuttle ASA's sister firms have asked an Illinois federal judge to let them intervene in the airline's $1 billion suit over Boeing's 737 Max 8 jets, saying they have been assigned Norwegian's rights to the 14 aircrafts that were grounded after regulators pulled the plug on the planes over safety concerns.

  • April 16, 2021

    NRA Ad Agency Says It Handled Executives' Expenses

    Executives for the National Rifle Association's longtime media consultants took the stand Friday in a Texas bankruptcy court, describing how it handled the personal expenses of the group's leaders and blaming CEO Wayne LaPierre for its current state.

  • April 16, 2021

    Frontier Clears Final Hurdle, Prepares To Exit Bankruptcy

    Frontier Communications' corporate restructuring plan nabbed unanimous final approval from the California Public Utilities Commission on Thursday, prompting the cable provider to announce that roughly one year after filing for Chapter 11 it expects to emerge from bankruptcy in "the coming weeks."

  • April 16, 2021

    4 Things Your Client Needs To Qualify For Small Biz Ch. 11

    Nearly 14 months since the newest facet of Chapter 11 was enacted, a growing body of case law has brought into focus the standards that restructuring counsel must meet in order to steer their clients through the streamlined process tailor-made for small businesses called Subchapter V.

  • April 16, 2021

    Hartford Cuts $650M Deal To End Boy Scouts Abuse Claims

    Hartford Financial Services Group announced Friday that the insurance company has agreed to pay $650 million to resolve sexual abuse claims in Delaware bankruptcy court related to the Boy Scouts of America scandal.

  • April 16, 2021

    Kossoff PLLC Attys Resign Amid Firm's Mounting Legal Woes

    Multiple attorneys have resigned from Manhattan real estate firm Kossoff PLLC and are missing paychecks, their counsel said Friday, as numerous clients come forward alleging that millions of dollars placed in the firm's escrow accounts have been misappropriated.

  • April 16, 2021

    Nursing Home Biz Gets OK For Ch. 11 Loan, Asset Auction

    A Delaware bankruptcy judge Friday gave affiliates of nursing home chain Consulate Health Care permission to tap into $5 million in Chapter 11 financing and to solicit bids for their assets, but with a longer auction and more conditions on the loan than they asked for.

  • April 16, 2021

    Late Bid For New Suboxone Antitrust Complaint Falls Flat

    A Pennsylvania federal judge on Thursday shot down a bid by direct purchasers in an antitrust case against Indivior Inc. to amend their complaint to target several company affiliates they accuse of siphoning money from Indivior to help the drugmaker avoid a potential judgment over its alleged monopolization.

  • April 16, 2021

    NJ Panel Won't Revive Suit Against Legal Funding Co.

    The New Jersey state appeals court ruled on Friday that a limited liability corporation can't assert contract claims that it was assigned against RD Legal Funding following an RD affiliate's bankruptcy, reasoning that the lawsuit was barred by an anti-assignment clause between the litigation funding company and the affiliate. 

  • April 16, 2021

    Hertz Ch. 11 Bidding War Reignites On Eve Of Disclosure OK

    The original equity sponsor for the Chapter 11 plan of car rental giant Hertz Global reemerged as a bidder to underwrite a multibillion-dollar financial restructuring of the company, leading a Delaware bankruptcy judge Friday to delay a hearing on the debtor's plan disclosure statement.

  • April 15, 2021

    Magistrate Judge Says Taser Rivals Can't Escape $7.9M IP Suit

    A Florida federal magistrate judge on Thursday recommended not tossing Taser's lawsuit against the alleged "true owner" of electrical weapons rival Phazzer and others, finding that Taser was not blocked from alleging that Phazzer was created to hide assets from an ex-wife.

  • April 15, 2021

    Nursing Home Biz Says It Needs Ch. 11 Loan To Survive

    Bankrupt affiliates of nursing home chain Consulate Health Care asked a Delaware bankruptcy judge on Tuesday to approve $5 million in Chapter 11 financing and a $3 million asset bid that unsecured creditors had decried as unnecessary and too small, respectively.

  • April 15, 2021

    Hertz Defends Ch. 11 Plan, Says Exit Needed By Summer

    Warning that it needs to hit the gas soon on its Chapter 11 plan to get the benefit of "hot" debt and equity markets and the approaching summer travel season, The Hertz Corp. urged a Delaware bankruptcy judge Thursday to reject current disclosure and financing objections.

  • April 15, 2021

    LeClairRyan Trustee Strikes Ch. 7 Deal With Ex-GC

    The court-appointed trustee overseeing the Chapter 7 case of shuttered law firm LeClairRyan told a Virginia judge Wednesday that she had reached a settlement with the firm's former general counsel, who has admitted to embezzling $2.5 million from a LeClairRyan trust account.

Expert Analysis

  • Tips For Protecting Privilege When Working With Outside PR

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    As lawsuits stemming from companies' COVID-19 responses grow and businesses hire public relations firms to manage the fallout, companies and their counsel should consider strategies to best protect themselves in court — and in the court of public opinion — without stepping on a privilege land mine, say Daniella Main and Mia Falzarano at Alston & Bird.

  • How To Mitigate Risk In Buying A Distressed Gov't Contractor

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    Buying a government contractor in financial or legal distress can be lucrative if appropriate due diligence is conducted and the buyer proceeds with a clear understanding of the target company's liabilities and potential exposure, say Todd Canni and Marques Peterson at Pillsbury.

  • 3 Procurement Priorities For Law Firms In Uncertain Times

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    As the pandemic and its associated economic disruption linger, law firm procurement teams should expand their objectives beyond purchasing and getting the best price for goods and services, to help firms become more nimble and achieve overarching strategic goals, says Lee Garbowitz at HBR Consulting.

  • Bankruptcy Ruling Highlights Longer Lookback Trend

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    The U.S. Bankruptcy Court's recent decision in Zagaroli underscores a trend among bankruptcy courts to allow longer lookback periods in certain types of fraudulent transfer cases, which could be a significant source of estate recovery for creditors, say attorneys at Lowenstein Sandler.

  • How Debtor-In-Possession Loans Guide On Libor's Exit

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    Benchmark replacement lessons from debtor-in-possession loans, which many companies turned to amid bankruptcy reorganization during the pandemic, are instructive for Libor transition processes in the broader corporate loan market, says Jeffrey Armstrong at Berkeley Research.

  • Opinion

    UK Is Proof Nonlawyer Ownership Threatens Legal Profession

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    Advocates claim that nonlawyer ownership of law firms — now allowed in Arizona — will increase low-income Americans' access to legal services, but the reality in the U.K. demonstrates that nonlawyer owners are drawn to profitable areas like personal injury and create serious conflicts of interest, say Austin Bersinger and Nicola Rossi at Bersinger Law.

  • Remote Bar Exams Pose New Learning Disability Challenges

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    New bar exam formats necessitated by the COVID-19 crisis — going from paper to computer, in-person to remote, human to artificial intelligence proctoring — may exacerbate shortcomings in disability assessments for learning-disabled test takers seeking accommodations, says Rebecca Mannis at Ivy Prep.

  • New Ariz. Law Practice Rules May Jump-Start National Reform

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    Arizona's far-reaching new rules opening its legal sector up to nonlawyer participation may encourage other states to follow suit, with both positive and negative consequences for clients, the justice system, legal education and lawyers' careers, say Maya Steinitz at the University of Iowa and Victoria Sahani at Arizona State University.

  • Pandemic Bankruptcy Avoidance Efforts Create New Hurdles

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    Steps that many businesses took to survive the COVID-19 crisis will result in major challenges this year, especially for the hardest hit industries, including retail, travel, oil and gas, and entertainment, say attorneys at Reed Smith.

  • 10 Tips For Your Next Virtual Court Appearance

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    Many federal and state courts will likely embrace virtual proceedings even after pandemic-related restrictions are lifted, so attorneys should get comfortable with the virtual platforms commonly used by courts, and follow a few audio and video best practices, says Justin Heminger, a senior litigation counsel at the U.S. Department of Justice.

  • Don't Let Lies Infiltrate The Mediation Process

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    The pandemic-era rise in mediation brings about the increased risk that participants will engage in dishonest behavior with the expectation that settlement negotiations will be kept confidential, but lawyers should beware that state confidentiality protections differ, and that courts have applied ethical rules in the mediation context, say Jennifer Gibbs and Amanda Rodriguez at Zelle.

  • Perspectives

    Judges On Race: Lack Of Data Deters Criminal Justice Reform

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    Many state courts' failure to gather basic data on sentencing and other important criminal justice metrics frustrates efforts to keep checks on judges’ implicit biases and reduce racial disparities, say Justice Michael Donnelly at the Ohio Supreme Court and Judge Pierre Bergeron at the Ohio First District Court of Appeals.

  • The Far-Reaching Implications Of High Court Ch. 13 Ruling

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    The U.S. Supreme Court's recent Chicago v. Fulton decision — that the Bankruptcy Code's automatic stay provision does not require immediate return of debtor property upon the filing of a bankruptcy case — may give lenders and creditors an edge in cases beyond those filed under Chapter 13, say attorneys at Dykema.

  • How Rebooted Paycheck Protection Program Works: Part 2

    Excerpt from Practical Guidance
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    Attorneys at Cozen O'Connor analyze key provisions of the U.S. Small Business Administration's two new interim final rules regulating first-draw and second-draw loans under the reinstituted Paycheck Protection Program.

  • How Rebooted Paycheck Protection Program Works: Part 1

    Excerpt from Practical Guidance
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    Attorneys at Cozen O'Connor provide an overview of the recently reinstituted Paycheck Protection Program's provisions for new borrowers to receive loans and existing borrowers to receive additional funding, and the U.S. Small Business Administration's startup of the program.

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