Bankruptcy

  • July 16, 2020

    Bankrupt Insurer Dispute Stays May Reach Across EU Borders

    An adviser to the European Union's top court proposed a test Thursday under the bloc's prudential regime for insurers that would allow bankruptcy litigation stays required in one country to be applied in other jurisdictions under certain conditions.

  • July 16, 2020

    Energy Biz California Resources Hits Ch. 11 With $6B In Debt

    California-based energy company California Resources Corp. filed for Chapter 11 protection in Texas bankruptcy court with over $6 billion in debt, saying current market pressures from the COVID-19 pandemic have forced it into restructuring.

  • July 15, 2020

    LATAM Pushes For 'Modest' $9.8M Breakup Fee On DIP Loan

    LATAM Airlines Group clashed with creditors Wednesday as it told a New York bankruptcy judge that a "modest" $9.75 million breakup fee is needed to secure a $1.3 billion debtor-in-possession financing package.

  • July 15, 2020

    JC Penney Cuts 1,000 Jobs, Amends Business Plan Deadline

    Bankrupt retailer J.C. Penney announced a 1,000-employee reduction in its workforce Wednesday, the latest development in a nearly 850-store restructuring strategy launched with the company's retreat into Chapter 11 on May 15 in Texas bankruptcy court.

  • July 15, 2020

    Sushi Chain Gets Court OK For $2M Ch. 11 Sale Plan

    A Delaware bankruptcy judge on Wednesday approved West Coast sushi chain Sustainable Restaurant Holdings' $2 million asset sale bankruptcy plan, over the objections of the company's recently fired CEO.

  • July 15, 2020

    Bluestem Ch. 11 Plan Docs Approved With Liability Changes

    Retailer Bluestem Brands Inc. on Wednesday received a Delaware bankruptcy judge's approval for documents describing its proposed Chapter 11 plan, but the judge ruled that the plan's exculpation provisions were too broad and should be amended.  

  • July 15, 2020

    New York & Co. Parent Gets OK To Start Liquidation This Week

    A New Jersey bankruptcy judge on Wednesday gave the parent company of New York & Co. and other apparel brands the green light to commence going-out-of-business sales this week after company counsel predicted an "orderly liquidation" as the retailer's Chapter 11 case proceeds.

  • July 15, 2020

    COVID-19 Drives Retailer The Paper Store Into Ch. 11

    Specialty gift and stationery store The Paper Store filed for Chapter 11 protection in Massachusetts, saying the COVID-19 pandemic had pushed its promising business into bankruptcy.

  • July 14, 2020

    Insys Shareholders Ink Deal With Ex-CEO Over Fraud Claims

    A proposed shareholder class announced a settlement with Insys Therapeutics' former CEO in Arizona federal court Tuesday, which would resolve securities fraud claims over the company's alleged kickbacks to doctors who prescribed an addictive opioid spray.

  • July 14, 2020

    Oilfield Co. Calfrac Files For Ch. 15 After Canadian Insolvency

    Oilfield services provider Calfrac Well Services Corp. filed a Chapter 15 petition in Texas bankruptcy court Tuesday, a day after it commenced a Canadian insolvency proceeding as a way to deleverage its balance sheet amid the COVID-19 pandemic and what it characterized as a global energy price war.

  • July 14, 2020

    Flooring Co. Already Has $28M Ch. 11 Bid From Creditors

    Flooring manufacturer Congoleum Corp. told a New Jersey bankruptcy judge that it has a $28 million stalking horse credit bid from a noteholder group in hand as it enters Chapter 11.

  • July 14, 2020

    In Their Words: Why Diversity At The Bar Is Still A Problem

    Three prominent U.S. Supreme Court litigators speak on why the court’s bar continues to have a diversity problem – and how it might be fixed.

  • July 14, 2020

    The Year's Top High Court Moments From Law360's The Term

    Remote arguments. Gorsuch siding with liberals on LGBTQ rights. A mysterious flush. It's been a surprising year at the high court, and Law360's The Term podcast team shares four big takeaways.

  • July 14, 2020

    24 Hour Fitness Says Virus Closures Threaten Ch. 11 Case

    Already facing a revolt from landlords who haven't been paid for months, bankrupt 24 Hour Fitness Worldwide Inc. confronted court questions about new risks of insolvency Tuesday after the return of COVID-19 business shutdowns in California jeopardized the debtor's Delaware Chapter 11 budget and delayed action on a $250 million case loan.

  • July 14, 2020

    Surprising Alliances Shape The Supreme Court Term

    The U.S. Supreme Court saw a drop in narrowly divided rulings and more than a few unusual alliances among the justices in a term packed with contentious cases on abortion, immigration, LGBTQ rights and agency authority.

  • July 14, 2020

    Retailer Muji USA Gets OK To Tap Into $22M Ch. 11 Financing

    A Delaware judge on Tuesday gave the American unit of Japanese home goods retailer Muji the go-ahead to tap into a $22 million post-petition loan in its Chapter 11 as the company moves forward with plans to restructure nearly $73 million in debt.

  • July 14, 2020

    Ore. Farm Again Hits Back At Hemp Producer In Seed Row

    An Oregon farm has once again filed counterclaims in a dispute with a now-bankrupt Kentucky CBD producer over $44 million in allegedly worthless hemp seeds, after the producer amended its complaint to include the farm's owner.

  • July 14, 2020

    Bracewell Lands Ex-Baker Botts Transactional Tax Partner

    Bracewell LLP has brought on a former Baker Botts LLP partner experienced in advising companies on transactional tax matters to the firm's tax practice in Washington, D.C.

  • July 14, 2020

    LATAM Creditors Take Aim At $900M DIP From Shareholders

    The unsecured creditors of LATAM Airlines Group are asking a New York bankruptcy judge to reject a request by the airline to accept $900 million in debtor-in-possession financing from a group of shareholders, calling it a giveaway to an insider group.

  • July 14, 2020

    Dentons, Dykema Steer Gold's Gym $100M Bankruptcy Sale

    European fitness company RSG Group, led by Dentons, said Tuesday it is buying Dykema-steered Gold's Gym out of pandemic-induced bankruptcy for roughly $100 million, a move that RSG Group expects will expand its footprint in the U.S. and overseas.

  • July 14, 2020

    Why Can't Female Lawyers Make Headway At The High Court?

    The number of female lawyers arguing before the U.S. Supreme Court hit a new low this year. Can the pipeline to these coveted oral argument slots be fixed?

  • July 14, 2020

    Judge Rejects 'Phony' $19M Weinstein Class Settlement

    A Manhattan federal judge on Tuesday abruptly rejected a proposed settlement and class certification bid in a sex abuse lawsuit against disgraced Hollywood producer and convicted rapist Harvey Weinstein, deriding the deal as "phony" and the class as nonexistent.

  • July 14, 2020

    Law360's Supreme Court Pop Quiz

    Test how closely you were paying attention to the explosive 2019-2020 Supreme Court term.

  • July 13, 2020

    Boies Schiller Adds Bankruptcy Attys In NY, London

    Boies Schiller Flexner LLP has added the former head of derivatives bankruptcy strategy at Lehman Brothers Holdings and the former executive director of distressed special situations at Nomura International PLC to its New York and London offices, respectively, the firm announced Monday.

  • July 13, 2020

    Greka Owes Another $54M In Loan Default Suit, UBS Says

    UBS told a New York federal judge that energy holding company Greka Integrated Inc. owes it an additional $54 million in interest, fees and costs after the bank's early victory in its suit over Greka's failure to repay $100 million in loans.

Expert Analysis

  • Top 10 Employment And Benefit Issues In Bankruptcy Cases

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    Companies seeking bankruptcy relief in the wake of the coronavirus pandemic should be aware of crucial aspects of the employee and debtor-employer relationship that are critical to a smooth transition into Chapter 11 and a chance at successful reorganization, say attorneys at Squire Patton.

  • Del. Order Offers Derivative Claim Solution In LLC Bankruptcy

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    The recent debtor-in-possession order in the Rudy's Barbershop case pending in Delaware Bankruptcy Court eliminated defenses to creditor challenge rights and amended the limited liability company agreements, providing one novel solution to the issue of early derivative claims in alternative entity bankruptcies, says Robert Weber of Chipman Brown.

  • COVID-19, Contango And Energy's New Economic Reality

    Excerpt from Lexis Practice Advisor
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    During the current pandemic, counsel for energy companies must be prepared for the market condition known as contango — where short-term and long-term energy prices operate differently — and with pressure from banks providing reserve-based lending facilities, says Cameron Kinvig at Lexis Practice Advisor.

  • Opinion

    Credibility Concerns About Virtual Arbitration Are Unfounded

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    Concerns that videoconferenced arbitration hearings compromise an arbitrator's ability to reliably resolve credibility contests are based on mistaken perceptions of how many cases actually turn on credibility, what credibility means in the legal world, and how arbitrators make credibility determinations, says Wayne Brazil at JAMS.

  • A Lawyer's Guide To Client Service Continuity Planning

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    Ensuring uninterrupted client service and compliance with ethical obligations in a time when attorneys are more likely to fall ill means taking six basic — yet often ignored — steps to build some redundancy and internal communication into legal practice, say attorneys at Axinn.

  • Virtual Meetings Could Be Fertile Ground For Legal Discovery

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    Many remote meeting technologies include recording features as default settings, raising three primary concerns from a legal discovery and data retention perspective, and possibly bringing unintended consequences for companies in future litigation, says Courtney Murphy at Clark Hill.

  • Bankruptcy's 'Deep Freeze' May Be Struggling Cos.' Best Hope

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    A tsunami of bankruptcy filings due to the economic effects of the coronavirus may not be a bad thing, as it could provide the only way for some struggling companies to stay alive — a minimalist, deep hibernation mode where they can await rescue, says Joseph Moldovan at Morrison Cohen.

  • The Role Of Remote Mediation After The Crisis Is Over

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    When the dark cloud of COVID-19 has passed and resolution centers are once again peopled with warring parties and aspiring peacemakers, remote mediations will likely still be common, but they are not going to be a panacea for all that ails the dispute resolution industry, says Mitch Orpett at Tribler Orpett.

  • 7 Steps To Romancing The Virtual Classroom

    Excerpt from Lexis Practice Advisor
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    For professors, trainers, lawyers, students and businesses grappling with the unexpected challenges of distance learning, trial attorney and teacher James Wagstaffe offers best practices for real-time online instruction.

  • Great Recession Holds Mortgage Crisis Lessons For Today

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    Mortgage defaults and losses resulting from COVID-19 should be more limited than during the Great Recession, but nonetheless litigation may arise over mortgage servicing and origination practices, say members of Analysis Group.

  • Bankruptcy Fraud Prosecutions May Increase Post-Pandemic

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    While prosecutors have rarely pursued criminal bankruptcy fraud allegations against companies and executives, investigations invariably follow the money in pursuit of alleged fraud and thus bankruptcy is a natural area of focus in a financial crisis, say attorneys at Gibson Dunn.

  • Key Return-To-Work Considerations For Law Firms

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    There may be precious little notice before the legal community ramps up, so it's important to have return-to-work plans that address the unique challenges law firms will face in bringing employees back to offices, say attorneys Daniel Gerber, Barbara O'Connell and Richard Tucker.

  • 3 Approaches To IP Valuation For Pandemic Recovery

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    Determining an intellectual property asset's value in light of the pandemic using a market, income or cost approach can help companies faced with a restructuring, sale or licensing situation, say Ryan Herrington and Jeffrey Kersey at FTI Consulting.

  • Considerations For Gov't Contractors In Bankruptcy: Part 2

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    Companies holding even one government contract may be able to use the unique rules of government contracting to their advantage when seeking bankruptcy protections, but should proceed cautiously if they plan to seek relief under the Contracts Disputes Act, say Steven Diamond and Thomas Pettit at Arnold & Porter.

  • A Creative Solution For Teaching Local Practice In Law School

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    To help prepare my students to navigate local practice, I wrote a set of rules for the classroom that mimics those they might encounter from a local judge or court, says Michael Zuckerman at Northwestern Pritzker School of Law.

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