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Bankruptcy

  • January 17, 2019

    Court Fight Over Puerto Rico Sales Tax Deal Wraps Up

    The fate of a closely-watched deal designed to restructure nearly $18 billion in debt carried by the Puerto Rico Sales Tax Corp., or COFINA, hangs in the balance as a two-day hearing on the matter came to a close Thursday with opponents complaining it amounts to an unjust taking.

  • January 17, 2019

    Deal With Rajaratnam, Ex-Galleon Execs Signals End To Ch. 7

    The trustee tasked with winding down convicted insider trader Raj Rajaratnam’s defunct Galleon Group hedge fund told a New York bankruptcy court on Thursday he’d reached a nearly $450,000 settlement with Rajaratnam and two former executives being sued for fraud, and that money should be enough to pay off the fund’s remaining creditors.

  • January 17, 2019

    2nd Circ. Won't Resurrect Union Suit Over Platinum Fraud

    The Second Circuit on Thursday refused to revive a derivative suit brought by New York correctional union members against the top brass of the Correction Officers' Benevolent Association over the alleged Platinum Partners bribery scheme, calling it inadequately pled.

  • January 17, 2019

    Weinstein, Lawyer Officially ‘Part Ways’ After Split Rumors

    Less than a week after rumors of a split emerged, Harvey Weinstein and his criminal defense lawyer Benjamin Brafman formally announced Thursday that Brafman will be withdrawing as counsel for the disgraced movie mogul in the sexual assault case playing out in New York state court.

  • January 17, 2019

    Beauty Brands Del. Ch. 11 Sale Plan Draws Creditor Fire

    Unsecured creditors of bankrupt cosmetics retailer Beauty Brands LLC called Thursday for rejection of the retailer's Delaware Chapter 11 sale plan, arguing for an open auction in lieu of a stalking horse sale led by a liquidation company.

  • January 17, 2019

    Catalina Marketing Reaches Deal On $275M DIP Loan

    Coupon and customer data firm Catalina Marketing Corp. received final approval of its $275 million debtor-in-possession financing Thursday in Delaware after resolving the objection of joint venture partner The Nielsen Company.

  • January 17, 2019

    Appeal In $80M Brazil Oil Co. Suit Was Premature: 11th Circ.

    The Eleventh Circuit on Wednesday agreed to send an $80 million fraud and racketeering case against Banco Itaú International and EFG Capital International Corp. back to Florida federal court, finding the appeal in an oil investments dispute had been filed too soon.

  • January 17, 2019

    Gymboree Hits 2nd Ch. 11, Will Liquidate Most Stores

    Less than a year and a half after leaving Chapter 11, children’s clothing retailer Gymboree Group Inc. reentered bankruptcy Thursday with $212 million in debt, saying this time it will not be coming out the other side.

  • January 16, 2019

    Puerto Rico Creditors Press For Sales Tax Plan Approval

    Major stakeholders engulfed in Puerto Rico's bankruptcy-like proceedings urged a federal judge on Wednesday to approve a watershed settlement designed to restructure nearly $18 billion in debt carried by the Puerto Rico Sales Tax Corp., or COFINA, saying it is the best way to avert years of protracted litigation.

  • January 16, 2019

    Westmoreland Says It Will Seek To End Union Contract

    Saying it was unable to get the benefits concessions it needs under its postpetition financing arrangement, Westmoreland Coal told a Texas bankruptcy judge Wednesday it plans to ask permission to reject its contracts with the United Mine Workers of America.

  • January 16, 2019

    Republic Metals Lenders Fight Ch. 11 Examiner Appointment

    The senior lenders for Republic Metals Refining Corp. on Wednesday told a New York bankruptcy judge that a U.S. Trustee request for an independent examiner to check on the ownership of the company’s inventory would be a waste of time and money.

  • January 16, 2019

    LBI Media’s Ch. 11 Disclosures Get Nod In Delaware

    A Delaware bankruptcy judge gave his nod to the Chapter 11 plan disclosure statement of bankrupt LBI Media Inc. after objections from junior noteholders pressing for further details were worked out prior to the hearing.

  • January 16, 2019

    Beauty Brands Bidder Says 23-Store Offer Is Best Available

    The founders of bankrupt cosmetics retailer Beauty Brands told a Delaware Bankruptcy Court judge Wednesday they presented the debtor with an offer to acquire 23 of its stores and continue operating them as a going concern, calling the bid superior to the stalking horse bid in a chain-wide liquidation plan.

  • January 16, 2019

    PG&E's Ch. 11 Is Climate Change Wake-Up Call For Utilities

    Pacific Gas & Electric Co.'s plan to seek bankruptcy protection to address crippling liabilities for California wildfires should ring alarm bells for utilities, regulators and lawmakers in other states and force them to examine whether the current utility business model can accommodate climate change-related risks to energy infrastructure, policy experts say.

  • January 16, 2019

    Calif. County Sues PG&E Over Deadly Nov. Wildfire

    Butte County in Northern California has sued Pacific Gas & Electric Co. in state court over the deadly wildfire that ravaged the county and killed 86 people last year, alleging the utility disregarded safety to increase its own profits.

  • January 15, 2019

    Aly Raisman's Nassar Suit Paused Pending USAG Ch. 11

    Olympic gold medal-winning gymnast Aly Raisman’s request to pause her suit over disgraced sports medicine doctor Larry Nassar’s sexual abuse was granted on Monday, after a California federal court agreed that a stay would help the parties assess the impact of the recent bankruptcy filing by USA Gymnastics, the sport's governing body.

  • January 15, 2019

    US Trustee Rips Bankrupt Makeup Co.'s $1.4M Exec Bonus Bid

    The U.S. Trustee’s Office on Tuesday asked a New York bankruptcy court to deny cosmetics maker Glansaol Holdings Inc.’s request to pay up to $1.4 million in executive bonuses, saying there was no proof the goals are a stretch or that bonuses won’t be going to insiders.

  • January 15, 2019

    Puerto Rico Fed Board Looks To Invalidate $6B In Bond Debt

    A federally-appointed board tasked with overseeing Puerto Rico’s monumental debt restructuring joined with the island’s unsecured creditors Monday to demand that $6 billion in general obligation bond debt be wiped out, arguing the bonds violated provisions in the Puerto Rican Constitution when they were issued a few years ago.

  • January 15, 2019

    FirstEnergy Customer Violated Ch. 11 Stay, Judge Rules

    An Ohio federal judge agreed Tuesday that a Pennsylvania-based auto parts manufacturer’s move to cancel its deal to buy power from a bankrupt FirstEnergy Corp. subsidiary violated the company’s right to maintain its contractual relationships throughout Chapter 11 proceedings.

  • January 15, 2019

    LBI Noteholders Say Co. Cheated Them Out Of $129M

    A group of second-lien noteholders of Spanish language broadcaster LBI Media Inc. accused the company in Delaware bankruptcy court Tuesday of costing them $129.5 million by cutting a bad restructuring deal with a first-lien noteholder.

Expert Analysis

  • Diversity's Next Step: Developing Minority Partners

    Chris King.jpg

    The lack of minority partners comes at a high cost to firms, say attorneys at Lightfoot Franklin & White LLC, as they suggest several practical ways to tackle this problem.

  • Sears’ Biggest Sale (Itself) Offers Valuable Lessons For Retail

    Robert Marticello

    Although a deal announced Wednesday could keep open more than half the department stores that retail dinosaur Sears Roebuck and Company had when it filed for bankruptcy protection last October, Sears remains a cautionary tale for the retail industry, say Robert Marticello and Philip Strok of Smiley Wang-Ekvall LLP.

  • Arbitrators And Mediators Should Reflect Society's Diversity

    James Jenkins

    Alternative dispute resolution providers have made great strides toward diversity, but recent statistics show there is still work to be done. There are certain steps ADR providers can take to actively recruit more women and minority candidates to serve as arbitrators and mediators, says James Jenkins of the American Arbitration Association.

  • Why AFAs Are Key To The Future Of Legal Practice

    Kelly Eisenlohr-Moul

    Alternative fee agreements can help align law firm and client interests, increase efficiency and eliminate corporate extortion, among other benefits. They are the best thing to happen to the practice of law in decades, says Kelly Eisenlohr-Moul at Dinsmore & Shohl LLP.

  • Series

    Judging A Book: Barron Reviews 'The Clamor Of Lawyers'

    Judge David Barron

    Can lawyers lead a revolution? According to "The Clamor of Lawyers: The American Revolution and Crisis in the Legal Profession" — a slim but elegant volume by Peter Charles Hoffer and Williamjames Hull Hoffer — they can and they did, says First Circuit Judge David Barron.

  • Opinion

    The Case For Lawyer-Directed Litigation Funding In NY: Part 2

    Peter Jarvis

    Lawyer-directed nonrecourse litigation funding is more likely to protect a lawyer's exercise of independent professional judgment than traditional means of litigation finance, and furthermore enables worthwhile cases that otherwise could not be funded, say Peter Jarvis and Trisha Thompson of Holland & Knight LLP.

  • Opinion

    The Case For Lawyer-Directed Litigation Funding In NY: Part 1

    Peter Jarvis

    Contrary to what the New York City Bar Association concluded in an ethics opinion last year, lawyer-directed nonrecourse commercial litigation funding does not violate New York rules on sharing fees with nonlawyers, say Peter Jarvis and Trisha Thompson of Holland & Knight LLP.

  • 7 Questions To Add To Your Lateral Partner Questionnaire

    Howard Rosenberg

    Law firms should redesign the vetting process for lateral candidates so it directly addresses sexual harassment and assault issues, says Howard Rosenberg of Decipher.

  • Q&A

    A Chat With Reed Smith Chief Marketing Officer Sadie Baron

    Sadie Baron

    In this monthly series, Amanda Brady of Major Lindsey & Africa interviews management from top law firms about the increasingly competitive business environment. Here we feature Sadie Baron, chief marketing officer at Reed Smith LLP.

  • The Changing Role Of The Chief Restructuring Officer

    Sheon Karol

    The dramatic recent changes in bankruptcy practice have shifted the chief restructuring officer's primary purpose from restructuring a business to shepherding an asset efficiently though a sale process, says Sheon Karol of The DAK Group.