Bankruptcy

  • January 26, 2023

    Celsius Can Return Institutional Loan Collateral In Ch. 11

    A New York judge ruled Thursday that bankrupt cryptocurrency platform Celsius Network LLC can handle $115 million in institutional loans in the ordinary course of business, including returning loan collateral.

  • January 26, 2023

    Gisele Bündchen, Tom Brady Tap Latham On FTX Promo Case

    Supermodel Gisele Bündchen and her ex-husband, football player Tom Brady, are among the former celebrity promoters of failed crypto firm FTX who are calling in BigLaw firms to defend them against accusations that they bear some responsibility for the billions lost by FTX customers.

  • January 26, 2023

    3M Earplug Unit's Bankruptcy Contrived, 7th Circ. Told

    A group of multidistrict litigation plaintiffs has urged the Seventh Circuit not to pause the sprawling litigation over injuries allegedly caused by faulty 3M Co. earplugs while a subsidiary's bankruptcy case proceeds, saying the companies tried to misuse bankruptcy law.

  • January 26, 2023

    Brazilian Retail Chain Seeks U.S. Recognition Of Bankruptcy

    Brazilian retail chain Americanas has asked a New York bankruptcy court to recognize its Brazilian restructuring proceeding, saying $1 billion in notes it issued under New York state law gives it the required U.S. connection.

  • January 26, 2023

    Tricida Gets OK To Seek Stalking Horse For Ch. 11 Auction

    A Delaware bankruptcy judge Thursday gave San Francisco biotech company Tricida Inc. the go-ahead to look for a stalking horse bidder before it puts its assets on the block next month.

  • January 26, 2023

    FTX Wants Ch. 11 Subpoenas For SBF, His Family And Execs

    Bankrupt cryptocurrency exchange FTX Trading Ltd. asked a Delaware court Thursday for permission to issue subpoenas to the company's indicted co-founder and ex-CEO, Sam Bankman-Fried, and his family members, seeking information about their personal assets and any transactions they made with the company prior to its Chapter 11 filing.

  • January 26, 2023

    Girardi Victims' $6.3M Suit Against NY Firm Tossed, For Now

    A California federal judge on Thursday dismissed a suit against a New York lawyer and his firm alleging they illegally received $6.3 million of a burn victim's settlement from Girardi Keese founder Tom Girardi, finding the complaint contains allegations of fraud that must be pled with more particularity.

  • January 26, 2023

    'Zombie' Retailers Like Bed Bath & Beyond Face A Reckoning

    Retailers like Bed Bath & Beyond that rode a wave of low-cost capital to survive the COVID-19 pandemic have now become "zombie companies" that can only make enough revenue to service their debt, setting the stage for current economic conditions to drive them into bankruptcy, experts say.

  • January 26, 2023

    Deals Rumor Mill: Twitter, Juul, Elliott Management

    Twitter is considering selling up to $3 billion in shares to reduce debt, e-cigarette maker Juul is in talks with three tobacco giants regarding a potential sale, and activist hedge fund Elliott Management has acquired stakes in Japanese conglomerate Dai Nippon and U.S. software giant Salesforce. Here, Law360 breaks down these and other deal rumors from the past week that you need to be aware of.

  • January 25, 2023

    FTX Says Examiner Would Be Unnecessary In Its Ch. 11

    Bankrupt cryptocurrency exchange FTX Trading Ltd. and its unsecured creditors committee filed objections to a request by the U.S. Trustee's Office for the Delaware bankruptcy court to appoint an examiner to look at FTX's finances, arguing Wednesday their own investigations will be sufficient.

  • January 25, 2023

    US Trustee Objects To Proposed Revlon Ch. 11 Plan Releases

    The U.S. Trustee's Office is asking a New York bankruptcy judge to reject Revlon Inc.'s Chapter 11 plan disclosures, saying the proposed plan would fail to give creditors an informed choice about releasing potential claims against non-debtor third parties.

  • January 25, 2023

    Ex-CEO Of Email Security Co. Gets 5 Years For Lender Fraud

    A Manhattan federal judge on Tuesday sentenced the founder of a Virginia-based email security company to five years in prison after he pled guilty to lying to investors and banks and forging documents to obtain a $25 million loan and other funding.

  • January 25, 2023

    Kossoff Trustee Sues To Recoup $2.1M From Real Estate CEO

    The Chapter 7 trustee for real estate law firm Kossoff PLLC sued a real estate executive and the son of convicted real estate lawyer Mitchell H. Kossoff in New York bankruptcy court to recoup $2.1 million, alleging that Kossoff had wrongfully used the law firm's funds in several ways, such as paying his son's rent for an apartment owned by one of the executive's companies.

  • January 25, 2023

    Clawback Issue Should Delay BlockFi Return, Committee Says

    The committee of unsecured creditors in the Chapter 11 case of cryptocurrency platform BlockFi Inc. told a New Jersey bankruptcy judge that it supports the debtor's proposal to release digital assets to customers, but said issues about the validity of transfers to customer wallets need to be resolved first.

  • January 25, 2023

    Girardi Trustee Drops Special Counsel Accused Of Conflicts

    Tom Girardi's bankruptcy trustee has replaced Abir Cohen Treyzon Salo LLP as special counsel amid claims that the Los Angeles plaintiffs firm had concealed serious conflicts of interest from its clients and the court.

  • January 25, 2023

    Power Plant Operator Heritage Hits Ch. 11 With $686M Debt

    Power plant operator Heritage Power has filed for Chapter 11 protection in a Texas bankruptcy court, saying it is seeking to shed burdensome contracts and enact a debt-for-equity restructuring agreement to deal with $686 million in debt.

  • January 24, 2023

    Cred Trustees Ask Del. Court To Back Up Calif. Lockton Suit

    Liquidation trustees of collapsed crypto lender Cred Inc. have asked a Delaware bankruptcy judge to clarify their Chapter 11 authority to acquire third-party creditor claims, in a bid to support a California suit to recover at least $66 million from insurance giant Lockton Companies LLC.

  • January 24, 2023

    Chinese Billionaire Hit With Contempt Ruling In Ch. 11 Case

    A U.S. bankruptcy judge on Tuesday found exiled Chinese billionaire Ho Wan Kwok in civil contempt for ignoring a corporate governance order and making "bad faith" moves that stymied the transfer of two companies to a Chapter 11 trustee.

  • January 24, 2023

    Celsius Proposes Novel Ch. 11 Plans For Creditor Recovery

    Bankrupt cryptocurrency platform Celsius Network told a New York judge Tuesday that it is moving toward a Chapter 11 plan that would create a new entity to manage its digital assets for the benefit of its customer creditors.

  • January 24, 2023

    Crypto Co. CEO Accused Of 'Sham' Deal To Hide $1.1B Loss

    The CEO of a bankrupt cryptocurrency company cooked up a "misleading sham transaction" to conceal an impending $1.1 billion implosion, a group of lenders alleged in a proposed securities class action case against Barry Silbert and Digital Currency Group Inc.

  • January 24, 2023

    Court Lets Bankrupt Pa. City Finance Its Insurance Premiums

    A federal bankruptcy court cleared the city of Chester, Pennsylvania, on Tuesday to finance its insurance premiums and keep several of its policies active into the new year Tuesday, adding FIRST Insurance Funding to the Philadelphia suburb's creditors with secured claims if it misses its payments.

  • January 24, 2023

    Purdue Warns Tribe's NY Lawsuit Could 'Blow Up' Ch. 11 Plan

    Purdue Pharma LP urged a New York bankruptcy court on Tuesday to reject a demand from an Indigenous tribe in Canada to lift a freeze on litigation against the bankrupt drugmaker and its Sackler family owners so the tribe can pursue its claims against the Sacklers in state court.

  • January 24, 2023

    Celsius Denied Permission For Late Claim In Voyager Ch. 11

    A New York bankruptcy judge Tuesday denied bankrupt cryptocurrency lender Celsius Network permission to file a claim in the Chapter 11 case of cryptocurrency platform Voyager Digital Holdings, saying Celsius' excuses for missing the claims deadline didn't pass muster.

  • January 24, 2023

    Medley Seeks Ch. 11 Block On Final Eversheds Fee Bill

    A liquidation trustee for bankrupt asset manager Medley LLC asked a Delaware bankruptcy judge on Monday to vacate the final fee application by special counsel Eversheds Sutherland LLP for allegedly misrepresenting how much it was paid by Medley for prepetition services.

  • January 24, 2023

    Kramer Levin Hires Ex-Paul Weiss Bankruptcy Atty

    Kramer Levin Naftalis & Frankel LLP said it has hired a bankruptcy and restructuring attorney from Paul Weiss Rifkind Wharton & Garrison LLP as a partner in its New York office.

Expert Analysis

  • 5 Keys To A Productive Mediation

    Excerpt from Practical Guidance
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    Cortney Young at ADR Partners discusses factors that can help to foster success in mediation, including scheduling, preparation, managing client expectations and more.

  • Crypto Coverage After FTX Fall: D&O Liability

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    The fallout surrounding the recent implosion of cryptocurrency firm FTX highlights potential crypto coverage exposure — including in the area of directors and officers liability — for insurance carriers in the evolving and largely misunderstood world of digital assets, says Anjali Das at Wilson Elser.

  • Why A Bankruptcy Court OK'd Rare Subpoena Via Twitter

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    Identifying and taking possession of estate assets can be disrupted when a debtor's previous owners are obstructionist and live outside the U.S., but a liquidator may be able to creatively serve a subpoena via email or even social media in such a situation, as authorized by a New York bankruptcy court in the recent Three Arrows Capital case, says Kyle Arendsen at Squire Patton.

  • Bankruptcy Ruling May Mean Harsh Results For Beneficiaries

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    Surety bond decisions that use subjective analyses to aid a sympathetic claimant, such as a Tennessee bankruptcy court’s recent decision in Pinnacle Constructors, create uncertainty that could ultimately lead to severe results for future beneficiaries, says Lisa Tancredi at Womble Bond.

  • Evaluating The Legal Ethics Of A ChatGPT-Authored Motion

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    Aimee Furness and Sam Mallick at Haynes Boone asked ChatGPT to draft a motion to dismiss, and then scrutinized the resulting work product in light of attorneys' ethical and professional responsibility obligations.

  • Litigation, Compliance And Enforcement In The 'Crypto Winter'

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    In 2022, cryptocurrency valuations plummeted, litigation proliferated and the "crypto winter" led to several high-profile bankruptcies, resulting in novel factual and legal questions being raised in areas like general commercial litigation, intellectual property, securities, bankruptcy, cybersecurity and compliance, say attorneys at Arnold & Porter.

  • Prepetition Lease Termination Ruling Creates Uncertainty

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    The Third Circuit’s recent ruling in Pazzo Pazzo, which held that prepetition option termination did not give rise to a transfer, feels somewhat unsatisfactory, as it does not analyze whether the termination of the lease constituted a transfer and follows similar cases that lack uniformity, say Shmuel Vasser and James Moser at Dechert.

  • 7 Tips To Increase Your Law Firm's DEI Efforts In 2023

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    Law firms looking to advance their diversity, equity and inclusion efforts should consider implementing new practices and initiatives this year, including some that require nominal additional effort or expense, say Janet Falk at Falk Communications and Gina Rubel at Furia Rubel.

  • Series

    Keys To A 9-0 High Court Win: Get Back To Home Base

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    When I argued for the petitioner in Morgan v. Sundance before the U.S. Supreme Court last year, I made the idea of consistency the cornerstone of my case and built a road map for my argument to ensure I could always return to that home-base theme, says Karla Gilbride at Public Justice.

  • What's At Stake In High Court's Tribal Bankruptcy Ruling

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    By accepting Lac du Flambeau v. Coughlin, the U.S. Supreme Court has an opportunity to revisit tribal sovereign immunity by way of interpreting the U.S. Bankruptcy Code, with significant repercussions when tribes are eligible to file as debtors, says Wilda Wahpepah at Sheppard Mullin.

  • Accommodation Deals Could Aid Distressed Auto Suppliers

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    As the automotive industry faces inflation and rising raw materials costs, struggling auto suppliers should consider utilizing accommodation agreements, a key industry tool for facilitating a successful resolution of distressed situations both before and during a Chapter 11 case, say Jane VanLare and Thomas Lynch at Cleary.

  • The 7th Circ.'s Top 10 Civil Opinions Of 2022

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    Attorneys at Jenner & Block examine the most significant decisions issued by the Seventh Circuit in 2022, and explain how they may affect issues related to antitrust, the False Claims Act,​ ​federal jurisdiction and more.

  • Hertz Ruling Could Help Debtors Avoid Make-Whole Premiums

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    A Delaware bankruptcy court’s recent ruling in Hertz, disallowing claims for make-whole premiums and post-petition interest at the contract rate, could be relied upon by debtors to sidestep those provisions, and potentially provide higher recoveries for equity holders, say Theresa Foudy and Alexander Severance at MoFo.

  • Atty-Client Privilege Arguments Give Justices A Moving Target

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    Recent oral arguments before the U.S. Supreme Court in a case regarding the scope of the attorney-client privilege appeared to raise more questions about multipurpose counsel communications than they answered, as the parties presented shifting iterations of a predictable, easily applied test for evaluating the communications' purpose, say Trey Bourn and Thomas DiStanislao at Butler Snow.

  • 5 Gen X Characteristics That Can Boost Legal Leadership

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    As Generation X attorneys rise to fill top roles in law firms and corporations left by retiring baby boomers, they should embrace generational characteristics that will allow them to become better legal leaders, says Meredith Kahan at Whiteford Taylor.

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