Bankruptcy

  • May 07, 2021

    Purdue Asks For Another Month's Hold On Opioid Suits

    Purdue Pharma is asking a New York bankruptcy judge for another 27-day extension of an injunction freezing opioid suits against the company and its owners, saying it needs more time to ensure it gets court approval for its Chapter 11 plan disclosures.

  • May 07, 2021

    Greensill Administrators Have Recovered £3.7B Of Assets

    The administrators of collapsed finance firm Greensill Capital said they have recovered only £3.7 billion ($5.1 billion) of the company's last-reported assets of £17.7 billion since the supply chain financing firm entered into insolvency proceedings in March.

  • May 06, 2021

    11th Circ. Says Use Of Biz Account Bars Ch. 7 Debt Discharge

    A man who used his company's business account to "get by financially" after being hit with a $20 million judgment and more than $300,000 in back taxes can't get those debts discharged in bankruptcy, the Eleventh Circuit has ruled.

  • May 06, 2021

    Jevic Ch. 7 Trustee Can't Pursue Ex-Committee's Claims

    The Chapter 7 trustee overseeing the bankruptcy of trucking company Jevic Holding Corp. cannot step into the shoes of the plaintiff in a suit brought by the official committee of unsecured creditors, after a Delaware judge said Wednesday that a post-petition financing order limits adversary actions to those brought by the committee only.

  • May 06, 2021

    Longtime Ch. 13 Trustee Named U.S. Trustee For Ga., Fla.

    The U.S. Department of Justice has announced it has appointed longtime Georgia standing Chapter 13 trustee Mary Ida Townson as the U.S. trustee for Georgia, Florida, Puerto Rico and the U.S. Virgin Islands.

  • May 06, 2021

    1st Circ. Hints Insys Execs' Convictions Will Stand

    Emotional patient testimony and a prosecutor's improper remark during closing arguments likely aren't enough to overturn a landmark verdict convicting five former Insys Therapeutics executives of a scheme to bribe doctors to prescribe opioids, a First Circuit panel suggested Thursday.

  • May 06, 2021

    Del. Court Awards $57.4M To Car-Hauler's Ch. 11 Estate

    A Chapter 11 trustee has won a fight in Delaware for a $57.4 million breach of contract recovery benefiting the estate of bankrupt Allied Systems Holdings Inc., with simple interest from 2009 under governing New York law nearly doubling the potential award to more than $110 million.

  • May 06, 2021

    Shiloh Industries Gets OK For Unsecured Payout Ch. 11 Plan

    Global auto parts supplier Shiloh Industries on Thursday won approval from a Delaware bankruptcy judge for a Chapter 11 plan that carves out $3 million for unsecured creditors from the proceeds of the company's $218 million asset sale.

  • May 05, 2021

    Girardi's Southern California Mansion Listed For $13M

    Bankrupt trial lawyer Thomas Girardi's 10,277-square-foot mansion near Los Angeles is on the market for $13 million, well below the $16.5 million he had told lenders it was worth, court documents say.

  • May 05, 2021

    Puerto Rico Board Reaches Deal With Highway Bondholders

    Puerto Rico's fiscal oversight board said Wednesday that it had reached a deal with the holders of more than $2 billion in highway and convention center bonds to end ongoing litigation and slash the amount owed by the island's government by 70%.

  • May 05, 2021

    Judge Revives Ch. 11 Claims Against Ex-Essar Execs

    A Delaware bankruptcy judge on Wednesday denied a motion to dismiss a new complaint alleging that former top executives of steelmaker Essar Steel Minnesota helped loot $1 billion from the company and pushed it into Chapter 11, saying it has enough details to be viable.

  • May 05, 2021

    Harvey Weinstein Accuses Jose Baez Of Legal Fee Fraud

    Harvey Weinstein on Tuesday accused prominent criminal defense attorney Jose Baez of refusing to refund him $1 million in legal fees after backing out of his case in 2019, according to a suit filed in New York state court.

  • May 05, 2021

    Hertz Says New Ch. 11 Sponsor Bid Tops Centerbridge Deal

    Bankrupt car rental giant Hertz Global announced Wednesday that a competing bid from a prospective sponsor for its Chapter 11 plan beat the existing deal the company has with a group of sponsors led by Centerbridge Partners, triggering a potential auction if Centerbridge decides to counter the offer.

  • May 05, 2021

    Baker Donelson Loses Bid To Shake Timber Scam Suit

    Baker Donelson, along with a firm partner and a Baker lobbyist, suffered another setback Wednesday in a federal case in Mississippi accusing them of aiding — and profiting from — a $100 million timber scam.

  • May 05, 2021

    Maxus Trust Slams YPF Bid To Appeal White & Case DQ Denial

    The Maxus Liquidating Trust urged the Delaware bankruptcy court Tuesday to reject Argentine energy company YPF SA's bid to directly appeal to the Third Circuit the denial of its motion to disqualify White & Case LLP from representing the trust in a $14 billion environmental liability case, saying the effort is procedurally flawed.

  • May 05, 2021

    Liberty Steel Group Announces Restructuring Committee

    British steel maker Liberty Steel Group on Wednesday announced it has appointed a committee to restructure and refinance the company in the wake of the March collapse of its principal lender, financial group Greensill Capital.

  • May 04, 2021

    Defunct Wholesaler Fights Renewed DQ Bid In Suboxone Case

    Rochester Drug Co-Operative Inc. has urged a Pennsylvania federal judge to once again reject arguments that the company's ongoing bankruptcy meant that it could not continue serving as class representative in a massive antitrust suit accusing drugmaker Indivior PLC of scheming to maintain its monopoly on the opioid addiction treatment Suboxone.

  • May 04, 2021

    Stoneway Noteholders Kick Off Restructuring Venue Dispute

    Secured creditors of Canadian holding company Stoneway Capital Ltd. have told a New York bankruptcy court they wanted to resume a restructuring proceeding that was pending in Ontario before Stoneway filed for Chapter 11 protection in the Empire State.

  • May 04, 2021

    Orchid Paper Trustee Says CEO Drove Company Into Ch. 11

    The liquidating trustee of the bankrupt Orchid Paper Products Co. filed a suit in Delaware bankruptcy court Tuesday accusing the company's leadership of recklessly sending the business into Chapter 11 with an "overly-ambitious and ill-conceived" expansion plan.

  • May 04, 2021

    Girardi's 'Real Housewife' Targeted By Lawyers, Critics

    Beneath a black-and-white Instagram filter, "Real Housewives of Beverly Hills" star Erika Jayne strikes another sultry pose, clad in lingerie and a sparkling necklace for her 2.2 million followers.

  • May 04, 2021

    YogaWorks Gets OK For Plan To Pay Unsecured Creditors

    A Delaware bankruptcy judge Tuesday approved a Chapter 11 plan for yoga instruction company YogaWorks that includes $340,000 for unsecured creditors thanks to good results from the company's asset auction in December.

  • May 04, 2021

    Hertz Confirms New Sponsor Offer In Seesaw Del. Ch. 11

    Hertz Global confirmed early Tuesday receipt of a sweetened sponsorship offer from the original plan backers for the bankrupt rental giant's Chapter 11, potentially setting up a final three-day deadline for a topping offer by the current leader and a potential auction on May 10.

  • May 03, 2021

    NRA Has No Debt, NYAG Says In Final Plea To Toss Its Ch. 11

    The New York Attorney General's Office made its closing argument Monday in its bid to have the National Rifle Association's Chapter 11 case tossed from a Texas bankruptcy court, saying the organization doesn't have any financial issues to justify its insolvency proceeding.

  • May 03, 2021

    Aeromexico Gets Court OK For Slimmed-Down Boeing Deal

    A New York bankruptcy judge has given Mexican airline Grupo Aeromexico SAB de CV the go-ahead to amend a prebankruptcy deal to acquire two dozen planes from Boeing after cutting a deal to shave $800 million and unneeded aircraft from the contract.

  • May 03, 2021

    Blank Rome Seeks Arbitration In Platinum Malpractice Case

    As it faces a potential malpractice complaint in Pennsylvania state court, Blank Rome LLP has said representatives for defunct billion-dollar hedge fund Platinum Partners, a one-time client, are trying to dodge language in the client engagement letter requiring arbitration of any disputes about the firm's work.

Expert Analysis

  • 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.

  • Law Firms Should Note GCs' Growing Focus On Biz Strategies

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    Amid the challenges of the pandemic, a shifting digital landscape, and increasing calls for diversity and inclusion, general counsel responsibilities are expanding into six new areas, highlighting the need for both in-house and outside counsel to serve as strategic and empathetic business leaders, say Wendy King at FTI Consulting and David Horrigan at Relativity.

  • Liquidation Lessons From 11th Circ. Pension Plan Ruling

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    The Eleventh Circuit's recent decision in Pension Benefit Guaranty Corp. v. 50509 Marine, upholding a company's defined plan termination liability under the Employee Retirement Income Security Act 20 years after that business liquidated, highlights issues that owners need to consider upon company dissolution, say attorneys at Winston & Strawn.

  • 6 Changes The Legal Industry Should Prepare For

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    As clients increasingly demand better efficiency, predictability and cost-effectiveness from their legal partners, especially during the pandemic, law firms and other legal service providers may need to explore new ways to bundle and deliver services — and move away from billing by time, says Joey Seeber at Level Legal.

  • Arizona May Have Nudged US Law Firms Toward Future IPOs

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    No U.S. law firm has its shares listed on a public stock exchange unlike some lucrative overseas counterparts, but by allowing nonattorneys to become stakeholders in law firms, Arizona may have paved the way for this to change should other U.S. states — particularly New York — follow suit, says Marc Lieberman at Kutak Rock.

  • 4 Legal Industry Trends Litigation Financiers Are Watching

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    Some recent litigation developments demonstrate efforts by law firms and their clients to search for opportunities in the COVID-19 economic fallout, while others — such as the rise of contingency fee arrangements — reflect acceleration of tendencies that were already underway, says William Weisman at Therium Capital.

  • 2 Cases Highlight Superpriority Lien Risks For Lenders

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    Two recent decisions from a New York state court and a Nevada federal court reaffirm the importance of lenders paying off superpriority liens, which may extinguish their mortgages or deeds of trust if not swiftly addressed, say Michael O'Donnell and Michael Crowley at Riker Danzig.

  • A Lawyer's Guide To Setting Well-Being Goals In 2021

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    In the face of rising client demands due to the pandemic and the changing regulatory environment, and with remote work continuing for the foreseeable future, lawyers should invest in their well-being by establishing inspiring yet realistic goals for 2021 — one month at a time, says Krista Larson at Morgan Lewis.

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