American Blue Ribbon Holdings LLC, the parent company of restaurant chain Village Inn, received court approval Tuesday from a Delaware bankruptcy judge for a pair of Chapter 11 asset sales that will see existing franchisees of the chain acquire 34 restaurants.
Educational travel organizer WorldStrides filed for Chapter 11 in a New York bankruptcy court Tuesday with a prepackaged plan to cut $248 million in debt and raise the liquidity it says it needs to weather the COVID-19 pandemic's impact on global travel.
Holders of stock in bankrupt tobacco supplier Pyxus International won a rare fight for the establishment of an equity committee on Monday, after a Delaware bankruptcy judge noted that the "debtors' own balance sheet raises questions."
The Sixth Circuit has found that a Kentucky-based mental health services provider couldn't dodge its obligations to the state's public pension plan while its bankruptcy was pending, finding the nonprofit had a state law duty to contribute.
The Second Circuit on Monday upheld a bankruptcy court finding that an ex-lobbyist for 21st Century Oncology Holdings Inc. is not owed $7 million in bonus pay, saying the letter of the law allows the bankrupt cancer chain to cap his bonus.
The Hertz Corp. on Friday sued 27 alleged victims of wrongful car-theft and false-arrest prosecutions by the company, seeking a Delaware bankruptcy court order staying their state lawsuits and mass tort damage claims and warning of risks to the company's $24 billion Chapter 11 restructuring effort.
After reaching a deal Monday, a secured lender of bankrupt menswear retail chain John Varvatos Enterprises Inc. will be allowed to credit bid a portion of its debt when the retailer holds a Chapter 11 auction to sell its assets.
Michael Avenatti is out of money and can't afford the legal fees for his upcoming embezzlement trial, his counsel told a California federal judge over the weekend, asking to continue representing the embattled attorney on a publicly funded basis.
Kansas-based laminates and foil label producer API Americas Inc. received court approval Monday from a Delaware bankruptcy judge for its Chapter 11 plan of liquidation centered on an earlier global settlement with creditors.
Oil and gas storage tank business Permian Tank & Manufacturing Inc. hit Chapter 11 in Delaware, citing the decline in oil and gas prices connected to the COVID-19 pandemic as a primary reason for its trip into bankruptcy as it seeks to sell its assets.
Fracking company BJ Services filed for Chapter 11 protection in Texas bankruptcy court on Monday with over $500 million in assets and liabilities, citing volatility in energy markets and COVID-19's effect on demand.
Gasoline engine maker Briggs & Stratton filed for Chapter 11 in a Missouri bankruptcy court Monday, hobbled by the COVID-19 pandemic and carrying over a billion dollars in debt with a $550 million stalking horse bid from private equity firm KPS Capital Partners.
A fight over the control of hemp company GenCanna is heading before a Sixth Circuit's bankruptcy appellate panel right as the company is looking to wrap up its Chapter 11 case.
Attorneys for bankrupt global tobacco supplier Pyxus International and its creditors urged a Delaware bankruptcy judge late Friday to reject stockholder calls for an equity committee voice in the $1 billion case, arguing that higher-priority claims and secured debt will leave nothing for last-in-line shares.
Holders of unsecured notes in the Chapter 11 case of vitamin and supplement retailer GNC Holdings Inc. objected Friday to the proposed bidding procedures submitted by the debtor, arguing that the procedures rush the sale process to the detriment of unsecured creditors.
Trucking company Comcar Industries Inc. terminated a proposed Chapter 11 sale of its concrete transportation business unit Friday, telling a Delaware bankruptcy judge that questions about liens on the unit's trucks were now in doubt.
As 90-day forbearance periods on mortgage payments are ending amid the continued COVID-19 pandemic, more commercial mortgage-backed securities borrowers are defaulting on their loans, and experts say keeping a few points in mind can go a long way as borrowers and servicers try to find the best way forward.
A Bank of America NA consumer has filed a proposed class action over claims the bank inaccurately listed him as having filed for bankruptcy and refused to correct his credit report.
A 26% increase in Chapter 11 filings so far in 2020 as compared to last year can largely be blamed on the effects of COVID-19, and restructuring professionals say the spike is mirroring trends seen at the beginning of the 2008 financial crisis.
Bruin E&P Partners LLC on Friday became the latest oil and gas driller to seek Chapter 11 refuge from swings in the energy market, filing a prepackaged plan to swap $840 million in debt for equity with a Texas bankruptcy judge.
Purdue Pharma asked a New York bankruptcy judge Thursday to reject requests to allow five claims by classes of alleged opioid victims in its Chapter 11 case, saying adding new classes would be an unnecessary, last-minute complication.
Oil and gas driller Templar Energy LLC received court approval Thursday from a Delaware bankruptcy judge for its prepackaged Chapter 11 plan that is centered around an asset sale that brought in $91 million.
A New York bankruptcy judge on Thursday approved another $25 million in bonuses for Frontier Communications Corp. executives two months after approving $38 million in payments for a different group of executives at the cable provider.
An oil and gas financing company says a Houston-area exploration and production business fraudulently convinced it to hand over $4.4 million for an oil venture but instead siphoned off the funds into a subsidiary that then filed for bankruptcy to avoid blame.
Milk producer Borden Dairy Co. received approval Thursday from a Delaware bankruptcy judge for a global settlement that will resolve two outstanding issues and allow its $300 million asset sale to close by a Monday deadline.
A significant challenge in practicing law remotely is the use and handling of documents without paper, because common digital tools such as email or even secure file transfer applications are problematic, say attorneys at Baker McKenzie.
The sudden and substantial loss of revenues due to the pandemic should cause companies in financial distress to thoroughly explore the possibility of out-of-court restructuring in an effort to find a quicker and less expensive alternative to Chapter 11, say Kurt Mayr and David Lawton at Morgan Lewis.
The legal industry is uniquely positioned, and indeed obligated, to respond to the racial disparities made clear by the recent killings of George Floyd and Breonna Taylor, but lawyers must be willing to be uncomfortable, says Tiffani Lee at Holland & Knight.
After the dramatic recent decline in oil and gas prices, industry participants and investors must look to history for strategies to address higher costs of capital, valuation challenges, increasing financial distress, potential bankruptcies and the prospect of contract disputes, say consultants at Cornerstone Research.
A New York bankruptcy judge's recent opinion in Firestone Diamond represents a comprehensive treatment of the Bankruptcy Code Section 502(d) disallowance taint and decisively rejects, for the first time in the Southern District of New York, the long-standing and widely criticized Enron holding, say attorneys at Cadwalader.
The current decrease in formality and increase in common ground due to the work-from-home environment can make it easier to have a networking conversation, says Megan Burke Roudebush at Keepwith.
One mistake that attorneys commonly make when presenting a case to a third-party funder is focusing almost exclusively on liability and giving short shrift to the damages analysis — resulting in an aspirational damages estimate that falls apart under scrutiny, say Cindy Ahn and Justin Maleson at Longford Capital and Casey Grabenstein at Saul Ewing.
The Ohio Supreme Court's recent decision in Delphi Automotive v. Ohio Department of Job and Family Services sets an acquirer-friendly precedent for unemployment tax rates in mergers, acquisitions and reorganizations, which could be especially important in the wake of pandemic-related layoffs, say Jeremy Hayden and Christopher Tassone of Frost Brown.
Attorneys at WilmerHale highlight recent developments in privilege law, the significant challenges raised by nontraditional working arrangements popularized during the pandemic, and ways to avoid waiving attorney-client privilege when using electronic communications.
As potential buyers look to purchase assets of energy companies driven into bankruptcy by the coronavirus pandemic, there are a number of precautionary steps they should take to reduce the risk of liability for the seller's environmental obligations, say Jacob Hollinger and Darren Azman of McDermott.
While pulling off an effective summer associate program this year will be no easy feat, law firms' investments in their future attorneys should be considered necessary even during this difficult time, says Summer Eberhard at Major Lindsey.
As white collar attorneys are increasingly asked to assist with bankruptcy-related investigations by unsecured creditors due to the current economic environment, they should follow best practices concerning discovery, appointment of independent board members, and malpractice claims, say attorneys at Lowenstein Sandler.
History suggests that legal malpractice claims will rise following the current economic downturn, and while a certain percentage of the claims will be unavoidable, there are prophylactic steps that law firms can take, says John Johnson at Cozen O'Connor.
Many lenders accommodated commercial real estate investors and borrowers with short, multimonth payment deferrals amid the COVID-19 crisis, but these grace periods will end well before the fallout of the pandemic will, and the bank will come knocking, says Katherine Amador at Berger Singerman.
With an increasingly litigious tort environment for corporate defendants, companies holding legacy liabilities would do well to investigate a capital markets solution for transferring their risks, say Mark Hemmann at FARA LLC and Peter Kelso at Roux Associates.