Bankruptcy

  • July 08, 2020

    Top Bankruptcy Cases Of 2020: Midyear Report

    So far in 2020, the number of corporate bankruptcy filings has spiked significantly compared to the same period last year, as unprecedented economic headwinds have generated a liquidity crisis for many struggling companies in a trend that may continue for the rest of the year and into 2021, according to bankruptcy professionals.

  • July 08, 2020

    Food Lion Defends Suit Over Dairy Co-Op's Dean Foods Deal

    Food Lion LLC has urged a North Carolina federal court not to toss its suit targeting the acquisition of three processing facilities by Dairy Farmers of America from bankrupt milk producer Dean Foods, arguing that the antitrust laws are supposed to be forward-looking.

  • July 08, 2020

    McDermott Adds 5-Atty Team To Restructuring Group In Dallas

    McDermott Will & Emery has added a five-attorney team, four of whom are from Katten Muchin Rosenman LLP, to its restructuring and insolvency practice group in Dallas.

  • July 08, 2020

    Wholesaler Dropped As Lead In ADHD Drug Antitrust Suit

    A Massachusetts federal judge disqualified wholesaler Rochester Drug Co-Operative from leading a class of direct purchasers accusing pharmaceutical companies Actavis and Shire of conspiring to delay sales of a generic version of the ADHD medication Intuniv.

  • July 08, 2020

    PR Utility Asks For $136M To Pay Electrical Grid Manager

    The Puerto Rico Electric Power Authority has asked the Puerto Rico bankruptcy court to sign off on a $136.3 million payment to a private contractor slated to take over management of the island's power grid.

  • July 08, 2020

    Brooks Brothers Latest Retailer To Fall Into Pandemic Ch. 11

    Men's suit retailer Brooks Brothers filed for Chapter 11 protection Wednesday in Delaware, saying liquidity and supply chain problems worsened by the COVID-19 pandemic drove it into insolvency.

  • July 08, 2020

    Wirecard Sell-Off Looms As 100+ Potential Buyers Line Up

    The insolvency administrator for Wirecard has said it will soon begin the due diligence process for selling assets of the scandal-hit payments company as more than 100 prospective buyers have registered their interest.

  • July 07, 2020

    Wirecard Faces Stock Drop Suit Over Missing $2.1B Scandal

    A Wirecard AG investor hit the German online payments company with a putative stock drop class action in Pennsylvania federal court Tuesday, alleging that an accounting scandal that centers on a missing €1.9 billion ($2.1 billion) and the subsequent arrest of its former CEO caused shares to tank.

  • July 07, 2020

    Pharma Co. Files Ch. 11 Plan Proposing Icahn Acquisition

    VIVUS Inc. and its subsidiaries voluntarily filed a prepackaged Chapter 11 reorganization plan in Delaware bankruptcy court Tuesday under which the California-based biopharmaceutical company would become a wholly owned subsidiary of Carl Icahn's investment firm Icahn Enterprise Holdings LP.

  • July 07, 2020

    Atty Lien Allowed In GM Ignition MDL Despite 'Serious' Lapses

    A New York federal judge has reopened a General Motors ignition switch case to allow a lien for attorney fees despite what he called "serious" professional lapses by the plaintiff's former and current counsel.

  • July 07, 2020

    Lenders Take Over Bluestem With $250M Ch. 11 Credit Bid

    E-commerce-focused Bluestem Brands Inc. secured a Delaware bankruptcy judge's approval Tuesday to sell itself to a lender and creditor syndicate in exchange for a $250 million credit bid and liability assumptions, after finding no other buyers for its multifaceted business.

  • July 07, 2020

    Judge Finds No Fraud In Vote For Melinta's Ch. 11 Plan

    Emphasizing that she found no fraud in vote-handling or counts prior to confirmation of antibiotic developer Melinta Therapeutics' Chapter 11 reorganization in April, a bankruptcy judge in Delaware declined Tuesday to reconsider a recent denial of stockholder requests to revoke the plan.

  • July 07, 2020

    Wildfire Victims Can't Get New Look At PG&E Ch. 11 Vote

    A California bankruptcy judge has denied a request by wildfire victims to have an examiner look into the vote to approve PG&E's Chapter 11 plan, saying the fire victims' committee has already investigated and found the vote valid.

  • July 07, 2020

    Lynn Tilton Faces $41.8M Loss After Ch. 7 Trial

    A New York federal bankruptcy judge on Monday recommended a judgment of $41.8 million against distressed-debt maverick Lynn Tilton after a bench trial in a Chapter 7 trustee's adversary case over the collapse of ambulance company TransCare Corp.

  • July 06, 2020

    NY Judge Leaves McKinsey Critic Stuck In Dismissal 'Trap'

    Turnaround pro Jay Alix remains stuck in a "finality trap" that may prevent him from appealing a New York federal judge's dismissal of RICO claims against McKinsey & Co., as the judge said Monday that Alix didn't deserve a way out of a trap he himself laid.

  • July 06, 2020

    McClatchy Creditors Must Wait On Auction To Roll Out Suit

    A New York bankruptcy judge said Monday that the unsecured creditors of news chain McClatchy Co. have valid claims stemming from a 2018 refinancing, but that he would wait on the company's auction results before giving them the go-ahead to sue.

  • July 06, 2020

    Oil & Gas Bankruptcies May Hit Snags Amid FERC Turf War

    The Federal Energy Regulatory Commission recently expanded its turf war with bankruptcy courts when it determined that Chesapeake Energy Corp. must get its blessing to ditch pipeline contracts in Chapter 11, and attorneys say the growing oil and gas bankruptcy wave sets the stage for more jurisdictional fights.

  • July 06, 2020

    Avenatti's Freedom Extended Ahead Of Calif. Embezzling Trial

    The California federal judge overseeing Michael Avenatti's December embezzlement trial extended his temporary release from a Manhattan prison following his conviction for extorting Nike, giving him 60 more days of freedom Monday despite federal prosecutors' concerns that the embattled attorney violated bail conditions.

  • July 06, 2020

    8th Circ. Finds Debtor Properly Objected To IRS' Tax Claim

    A debtor correctly mailed an objection to the IRS on the agency's claim for $93,000 in unpaid taxes and didn't need to also notify a U.S. attorney, the Eighth Circuit said Monday in a published opinion that reversed lower-court orders.

  • July 06, 2020

    Sale-Bound Lucky Brand Gets OK Of $15.6M DIP In Del. Ch. 11

    Newly bankrupt apparel retail chain Lucky Brand Dungarees LLC secured approval Monday for a $15.6 million debtor-in-possession loan, after pandemic-driven store shutdowns pushed the company into Chapter 11 in Delaware on Friday with $182 million in secured debt.

  • July 02, 2020

    Law360 Names Top Attorneys Under 40

    We're pleased to announce Law360's Rising Stars for 2020, our list of 176 attorneys under 40 whose legal accomplishments transcend their age.

  • July 02, 2020

    NPC International Fields Creditor Questions At Hearing

    The largest Pizza Hut and Wendy's franchisee in the U.S. appeared in a Texas bankruptcy court Thursday alongside its second-lien lenders, who complained about being left out of the talks that produced a restructuring agreement with first-lien lenders.

  • July 02, 2020

    NextEra Fights For $60M Fee From EFH Ch. 11 At 3rd Circ.

    NextEra Energy Inc. urged the Third Circuit on Thursday to revive its bid for $60 million in administrative expenses in connection with a scrapped deal to purchase assets from bankrupt Energy Future Holdings Corp., arguing that it spent the money in reliance on a sale termination fee that was later taken off the table.

  • July 02, 2020

    Faraday Future Tycoon Exits Ch. 11 After $3.5B Reorg

    A Chinese tycoon and founder of electric car startup Faraday Future reported a successful emergence Thursday from a personal Chapter 11 in California that briefly detoured through Delaware bankruptcy court, following confirmation of a more than $3.5 billion reorganization.

  • July 02, 2020

    Platinum Receiver Settles With Insurers For $14M

    The receiver for defunct hedge fund Platinum Partners agreed to pay around $14 million to settle with insurers that say Platinum owed them more than $44 million, a move the receiver said eliminated one of the biggest obstacles to investors finally recouping some of their losses.

Expert Analysis

  • 5 Pointers For Landlords Facing Tenant Bankruptcies

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    A commercial tenant entering bankruptcy amid the pandemic is cause for concern — but not despair — for a landlord, as the Bankruptcy Code provides landlords with some significant protections and a reasonable shot at keeping their leases intact, says William Geller at Adam Leitman.

  • How An M&A Tool Can Benefit Bankruptcy Sales

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    As bankruptcy filings grow in the wake of the pandemic, debtors and insurers are about to discover that representations and warranties insurance — long used in mergers and acquisitions — can also be beneficial for all parties involved in distressed asset sales, say attorneys at Seyfarth.

  • Promoting Lawyer Well-Being Is More Essential Than Ever

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    As the COVID-19 pandemic profoundly tests the overall well-being of lawyers, firms with behavioral health programs can leverage or adapt many existing resources to respond to the crisis, while firms without formal programs can find little ways to make a big difference, says Krista Larson, director of employee well-being at Morgan Lewis.

  • Adapting 2020 Tax Expectations To COVID-19 Developments

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    Attorneys at Steptoe & Johnson consider unexpected international, federal and state tax developments that have occurred in response to the global pandemic, how they may impact individuals and corporations, and what measures may follow.

  • Remote Depositions Bring Ethics Considerations For Lawyers

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    Utilizing virtual litigation technologies and participating in remote depositions require attorneys to beware of inadvertently violating their ethical obligations, including the principal duty to provide competent representation, say attorneys at Troutman Sanders.

  • Early Pandemic-Related Shifts We're Seeing In Legal Finance

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    As law firms chart their paths forward during these unsettled times, litigation funders are already observing changes in the types of products firms are seeking, such as an increase in one-off case funding requests, says Eric Blinderman at Therium.

  • Litigation Risks For Energy Executives During Bankruptcy

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    With oil prices at historical lows and a deluge of bankruptcies in the sector inevitable, it is vital that directors and officers understand the legal framework that governs their conduct, the types of transactions that will face enhanced scrutiny, and what to do now to minimize bankruptcy litigation risks, say attorneys at King & Spalding.

  • Opinion

    The Death Of The LSAT

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    Over the last year, the LSAT has been anything but unflappable — it has not been the objective, standardized law school entrance exam it's supposed to be, say soon-to-be law student Elliot Fuchs and attorney Saul Bienenfeld.

  • COVID-19 And Force Majeure: Lessons From Early Cases

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    Five contract disputes stemming from the COVID-19 crisis spotlight the key phrases, and outright gaps, in force majeure and related provisions that will be pivotal in resolving emerging disputes and preempting future ones, say attorneys at Mintz.

  • Relief For Ginnie Mae Servicers Comes With Strings Attached

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    While Ginnie Mae's recently announced liquidity relief for its mortgage-backed securities platform should help mortgage servicers withstand the impending tidal wave of delinquencies, several of the program's compliance requirements present significant obstacles for issuers, say attorneys at Dentons.

  • Pandemic May Prompt Legislative Action On Court Deadlines

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    The COVID-19 crisis shines light on the fact that the federal government and most states do not have the power to toll statutes of limitations, and could lead to a full-scale reconsideration of the Federal Judiciary Emergency Powers Tolling Act or other legislative efforts, say Reed Brodsky and Michael Nadler at Gibson Dunn.

  • Keys To Defending A Bankrupt Insured In A Civil Case

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    Due to COVID-19, claims and litigation involving bankrupt and liquidated insureds stand to become more frequent, and thus defense counsel should prepare for the novel bankruptcy stay, evidence preservation, witness and settlement issues that arise in such situations, say Gregory Brown at Kaufman Dolowich and Robert Norton at Lexington Insurance Company.

  • 11 Good Ideas For Retail Bankruptcy Reform During Pandemic

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    If Congress is open to any good idea that would stabilize the economy, it should consider Bankruptcy Code changes that would help companies — particularly retailers — survive a Chapter 11 filing during the COVID-19 economic downturn, says Norman Kinel at Squire Patton.

  • Series

    Judging A Book: Richardson Reviews 'Criminal Dissent'

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    In his important new book, "Criminal Dissent," Wendell Bird endeavors to catalog every single actual, or even threatened, prosecution under the Sedition Act and removal under the Alien Friends Act — a monumental undertaking — and the results are striking, says U.S. District Judge Eli Richardson of the Middle District of Tennessee.

  • Tips For Minimizing Law Firm Liability During COVID-19

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    Lawyers may be advising clients on COVID-19 matters without the benefit of considered analysis or interpretive guidance, which could lead to legal malpractice suits down the road, but law firm management can mitigate the risks through certain protocols, says Nicole Hyland at Frankfurt Kurnit.

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