Bankruptcy

  • July 20, 2017

    GOP Bill Would Change Bank Risk Designation Process

    A Republican bill introduced Wednesday in the U.S. House of Representatives would allow regulators to put banks under heightened supervision and capital rules based on the risks the banks pose to the financial system, rather on than their size as is done now.

  • July 20, 2017

    NJOY Bankruptcy Converted To Ch. 7

    A Delaware bankruptcy judge agreed Wednesday to convert the Chapter 11 bankruptcy of e-cigarette maker NJOY Inc. to a Chapter 7, following a $30 million asset sale and the departure of its last remaining executive.

  • July 20, 2017

    Rising Star: Morrison & Foerster's Jennifer Marines

    Morrison & Foerster LLP’s Jennifer Marines has had a year of high-profile Chapter 11 cases, including helping Maxus Energy Corp. overcome $12 billion in liabilities and preserving 400 jobs with a quick sale in the Sungevity bankruptcy, that have won her a second year as one of the bankruptcy law practitioners under age 40 honored by Law360 as Rising Stars.

  • July 20, 2017

    Failed ACA Insurer's Suit Belongs In Claims Court, Feds Say

    The liquidator for a failed South Carolina co-op insurer formed under the Affordable Care Act should file his suit challenging a federal loan repayment demand in the U.S. Court of Federal Claims, as the suit is a request for money disguised as a call for injunctive relief, the government said Wednesday.

  • July 19, 2017

    Constellation Avoids Ch. 7 Conversion With Funding Deal

    Bankrupt metal fabricator Constellation Enterprises LLC staved off a conversion of its case to a Chapter 7 liquidation Wednesday when it told a judge in Delaware that it had reached a deal with an asset purchaser to fund its case while it pursues a settlement with its jilted employees.

  • July 19, 2017

    Unilife Receives Court OK For Sales To Credit Bidders

    Bankrupt medical device maker Unilife Corp. received court approval Wednesday in Delaware for three sale transactions following an auction Monday that will wipe more than $40 million in debt from the company's balance sheet.

  • July 19, 2017

    3rd Circ. Upholds Toss Of Oil Producer Claims To Sold Oil

    In a decision with broad implications for the nation’s oil and gas industry, the Third Circuit on Wednesday upheld a 2015 district court ruling that rejected unsecured oil producer claims against companies that purchased their oil from a bankrupt intermediary.

  • July 19, 2017

    Madoff Trustee Gets 2nd Crack At 2nd Circ. RBS Case Appeal

    A New York bankruptcy judge unwound his own decision refusing to let the Bernie Madoff bankruptcy trustee take an RBS clawback case dismissal to the Second Circuit, finding Wednesday that because the judge issued his decision too late, he hadn’t had the jurisdiction to make it.

  • July 19, 2017

    Bid To Block Ch. 15 Recognition Scrutinized In Russian Case

    A U.S. company pursuing a $750 million suit over the alleged corporate raiding of a major Russian granite producer is looking at an uphill battle after a New York bankruptcy judge explained Wednesday that blocking Chapter 15 recognition of a foreign bankruptcy, which had paused the suit, would require second-guessing a Russian court.

  • July 19, 2017

    Greenberg Traurig Blasts Malpractice Claim In Clawback Row

    Greenberg Traurig LLP has asked a New York state court to dismiss NextEra Energy Inc.'s malpractice suit claiming the firm failed to assert a specific safe harbor defense to a clawback claim in a bankruptcy case, arguing the firm would have had no reason to believe the defense would work.

  • July 19, 2017

    MF Global Insurer Loses Appeal Bid Over Bermuda Suit

    A New York federal judge has denied a bid from defunct brokerage MF Global’s excess insurer Allied World to challenge bankruptcy court orders issued after the insurer failed to obtain permission before seeking to arbitrate a coverage dispute in Bermuda, finding the orders unripe for appeal.

  • July 19, 2017

    Rising Star: Fried Frank's Matthew M. Roose

    Fried Frank Harris Shriver & Jacobson LLP partner Matthew M. Roose has made a name for himself among corporate restructuring practitioners through his representation of creditors in the bankruptcies of Energy Future Holdings Corp., Forbes Energy Services and Washington Mutual Inc., securing him a spot as one of five bankruptcy law attorneys under 40 honored by Law360 as Rising Stars.

  • July 19, 2017

    NJ High Court Tosses Ethics Charges Against Bankruptcy Atty

    The New Jersey Supreme Court on Wednesday threw out ethics charges against attorney Nelson Gonzalez over his representation of a longtime client in a bankruptcy matter, finding that a written fee agreement was not required and his decision to not file a Chapter 7 petition until being paid in full was not improper.

  • July 19, 2017

    Renco Loses Challenge To Trustee's Sale Of $26.2M Stake

    The trustee of defunct Magnesium Corp. of America was free to sell a slice of its $213 million judgment against billionaire industrialist Ira Rennert and his Renco Group Inc. for driving MagCorp into bankruptcy, a New York federal court said Tuesday, rejecting claims the sale had been unfair.

  • July 19, 2017

    US Expo 2015 Group, $28M In Red, Opens Ch. 7 In Delaware

    The cash-starved official organizers of America’s food-themed exhibit for World Expo 2015 in Milan filed for Chapter 7 liquidation in Delaware bankruptcy court on Tuesday, listing more than $28 million in liabilities and less than $500,000 in assets.

  • July 19, 2017

    The 2017 Rising Stars, By Firm

    Law360's Rising Stars recognizes attorneys under 40 who have demonstrated outstanding career accomplishments. This year, Gibson Dunn & Crutcher LLP and Kirkland & Ellis LLP led the pack with eight Rising Stars each, followed by Latham & Watkins LLP, Mayer Brown LLP and Quinn Emanuel Urquhart & Sullivan LLP, which had six apiece. Weil Gotshal & Manges LLP rounded out the group with five Rising Stars.

  • July 18, 2017

    SEC Seeks To Lift Stay On Suit Against Ex-Dewey CFO

    The U.S. Securities and Exchange Commission told a New York federal judge Tuesday it wants to forge ahead with its civil fraud case against ex-Dewey & LeBoeuf LLP chief financial officer Joel Sanders after a jury convicted him of criminal charges earlier this year.

  • July 18, 2017

    Ticket Reseller In Ponzi Case Can Sell Remaining Inventory

    A New York bankruptcy court gave defunct ticket reseller and suspected Ponzi scheme vehicle National Events Holdings LLC the green light on Tuesday to sell off roughly $5.2 million in sports and concert tickets, bringing the tangled case one step closer to completion.

  • July 18, 2017

    BCBG Founder Says Clothier's Ch. 11 Plan Is In Tatters

    The founder of BCBG Max Azria and other creditors filed court papers on Monday saying that the bankrupt fashion company's proposed restructuring plan should be rejected for undervaluing costs to keep up existing contracts and claims, and for including nonconsensual litigation releases for nondebtor entities.

  • July 18, 2017

    'Idol' Lenders' Suit Against Apollo, Fox Going Back To Calif.

    A suit that accuses Apollo Global Management and 21st Century Fox of ripping off the lenders of bankrupt Core Media, the company that produced “American Idol,” in a buyout deal was sent back to California state court on Monday, after a whirlwind trip through several other courts’ dockets.

Expert Analysis

  • Health Republic’s Curious Liquidation: Part 12

    James Veach

    Health Republic's liquidator has stated that claimants will not be paid until Health Republic's disputed claims against and from the federal government are resolved. Policyholders and other creditors should not be told to wait through a claims adjudication process only to find that potentially barely any money may remain to pay even a small portion of approved claims, says James Veach of Mound Cotton Wollan & Greengrass LLP.

  • Turning Bust To Boom: P3 Initiatives Under PROMESA

    Richard Cooper

    Normally, investors and lenders to public-private partnerships avoid pursuing projects where the government’s ability to provide financial, operational and logistical support is subject to considerable uncertainty. But the tools provided by the Puerto Rican Oversight, Management and Economic Stability Act can help mitigate some of these risks and even facilitate future projects in Puerto Rico, say attorneys with Cleary Gottlieb Ste... (continued)

  • Weekly Column

    Innovating For Wise Juries: Matching Experts

    Stephen Susman

    In the penultimate installment of this series, Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project answer a question on many legal analysts’ minds: What if both sides’ expert witnesses sat in a hot tub discussing the case while a jury watched?

  • The Role Of Public Relations In Municipal Restructuring

    Dan Zacchei

    Debtors and creditors in municipal restructuring situations need to accept that engaging with policymakers, shaping the public narrative and mitigating misleading headlines all have a significant impact on the outcome, says Dan Zacchei of Sloane & Co.

  • Rebuttal

    The Rise Of Midsize Firms

    Ronald Shechtman

    Recently, this publication featured an op-ed in which one law firm partner contended that midsize firms will be the next casualty of the legal market, due to a supposed inability to compete with BigLaw or boutique firms for business. Though we can expect to see Am Law firms continue to lead the market in megadeals and life-or-death litigations, by all indications midsize is on the rise, says Ronald Shechtman of Pryor Cashman LLP.

  • 5 Questions To Ask Yourself Before Submitting Litigation AFA

    Gregory Lantier

    Outside counsel should be able to articulate why she is proposing an alternative fee arrangement for this matter. If the client has not requested an AFA or the case is unusually difficult to budget with accuracy, this might not be the case to propose an AFA, say attorneys with WilmerHale.

  • How Mobile Apps Can Benefit Your Practice

    Sean Cleary.jpg

    Despite the boom in mobile application development, many lawyers are still reluctant when it comes to using apps in their daily work. Attorney Sean Cleary explores the benefits and shares some recommendations for apps geared toward attorneys.

  • Rebuttal

    The Future Of Litigation Finance Is Analytics

    Eva Shang

    In a recent Law360 guest article, Christopher Bogart of Burford Capital LLC claimed that "while theoretically well designed to find the proverbial needle in a haystack, big data and AI currently lack the ability to do so usefully in a commercial litigation financing context." But AI can manage many of the tasks that litigation financiers would otherwise perform, says Eva Shang, co-founder of Legalist Inc.

  • Series

    My Strangest Day(s) In Court: The Life Partners Bankruptcy

    Joseph Wielebinski

    The bankruptcy courtroom was filled with interested investors. They hung on every argument and every word of testimony. When Life Partners management argued that the allegedly fraudulent business model worked just fine, they cheered, recalls Joseph Wielebinski of Munsch Hardt Kopf & Harr PC.

  • Where AI Meets Cybersecurity And The Legal Profession

    Randy Sabett

    Artificial intelligence and machine learning will continue to be a major focus for the legal community, whether as an isolated topic, as it intersects with cybersecurity, or within the legal profession itself. Each of these raises unique concerns for attorneys, says Randy Sabett, vice chair of Cooley LLP's privacy and data protection practice group.