Bankruptcy

  • September 19, 2017

    Ressler & Ressler Must Face Dumped Atty's Defamation Suit

    New York law firm Ressler & Ressler must face a trimmed-down defamation lawsuit from an outside attorney claiming the firm convinced Tradewinds Airlines Inc. to dump her as its special litigation counsel, according to a federal judge’s ruling Tuesday.

  • September 19, 2017

    Primary Insurers Must Cover Investor Claims, 9th Circ. Told

    Lloyd's of London Friday asked the Ninth Circuit not to revive a suit seeking to force it to pay $5 million on an excess policy into a shareholder settlement with a bankrupt subprime lender, saying the actual amount paid in the settlement does not exceed the policy limits.

  • September 19, 2017

    'Whoomp! (There It Is)': A Deal To End Song Rights Row

    The Chapter 7 trustee for a music publisher that went bankrupt after a $2.2 million judgment over the rights to the song “Whoomp! (There It Is)” gained approval Tuesday from a Florida federal judge for a deal to settle the case and several related disputes.

  • September 19, 2017

    EFH Judge Rethinks $275M Breakup Fee In Nixed NextEra Deal

    The Delaware bankruptcy judge presiding over the Energy Future Holdings Corp. case said Tuesday he would reconsider his decision to allow a $275 million breakup fee in the now-failed $18 billion NextEra Inc. sale deal, ruling he made a mistake when approving the fee a year ago.

  • September 19, 2017

    KIT Fraud Suspect's Trial Delayed To Review Late Laptop Docs

    A New York federal judge Tuesday pushed back the looming fraud trial of now-defunct video technology firm KIT Digital Inc.'s ex-CEO, blaming both sides for the confusion over documents stored on a laptop that was glancingly disclosed to the defense, which in turn never responded to an offer to examine it.

  • September 19, 2017

    NJ Water Agency Asks To Probe Trenk DiPasquale Computers

    A defunct Newark, New Jersey, water agency on Monday asked a bankruptcy judge for permission to search electronic devices used by Trenk DiPasquale Della Fera & Sodono PC attorneys in order to fill a “giant email hole” of discovery in its lawsuit alleging the firm and others enabled unlawful and wasteful conduct at the agency.

  • September 19, 2017

    Toys R Us Heads Into Bankruptcy Ahead Of Holiday Season

    Weighed down by more than $5 billion in funded debt and increasingly tougher online competition, iconic toy retailer Toys R Us Inc. filed for bankruptcy late Monday with plans to restructure its balance sheet and inject more than $1 billion in new investments into its global businesses.

  • September 19, 2017

    Air Berlin Granted Bankruptcy Protections In US

    Air Berlin’s foreign insolvency proceedings were formally recognized by a New York bankruptcy court on Monday, protecting the German airline’s U.S. assets from seizure by creditors as it attempts to restructure itself in its home country.

  • September 18, 2017

    Madoff Trustee Blasts Merkin's 'Double Recovery' Claims

    The trustee for Bernie Madoff's defunct investment firm on Friday slammed efforts to prevent him from both seeking $280 million from disgraced financier J. Ezra Merkin and subordinating Merkin's claims against the estate at an upcoming trial over Ponzi scheme proceeds, saying this “double recovery” concern is off-base and premature.

  • September 18, 2017

    Well Owners Want Maxus To Close $15M Ch. 11 Sale

    BHP Billiton on Friday urged a Delaware bankruptcy judge to force Maxus Energy to complete the $15.3 million sale of its stake in a large oil and gas well asset operated by BHP, noting that the deal has not closed despite gaining court approval months ago.

  • September 18, 2017

    Deadspin Story Not Protected By Gawker Sale, Bettor Says

    A famous Las Vegas sports bettor alleging that sports commentary website Deadspin.com defamed him and his company told a New York bankruptcy court on Friday that the sale of Deadspin's bankrupt former parent, Gawker Media, does not protect the site’s now-owner from claims over continued publication.

  • September 18, 2017

    Ex-Dewey CFO Says It's Only Fair He Doesn't Serve Time

    Former Dewey & LeBoeuf LLP Chief Financial Officer Joel Sanders urged a New York judge on Monday to impose a no-jail sentence, arguing the prosecution's request for a four-year sentence is turning "a blind eye to reality" in comparing Sanders with major Ponzi schemers.

  • September 18, 2017

    ChinaCast Bankruptcy Can't Stop Insurance Payout: Creditors

    ChinaCast Education Corp. creditors asked a New York bankruptcy judge on Monday to find that their $66 million securities class action judgment against the company the day before its bankruptcy filing must be paid out by insurers despite a bankruptcy litigation stay.

  • September 18, 2017

    Perfumania Shareholder Wants Ch. 11 Confirmation Delayed

    A Perfumania shareholder pushed the Delaware bankruptcy court late Friday to postpone the fragrance company’s Chapter 11 confirmation hearing, scheduled for Oct. 6, because its bid to have an official equity committee formed has yet to gain traction with the U.S. trustee’s office.

  • September 18, 2017

    Norwegian Cruise Says Fuel Row Not Subject To Arbitration

    Norwegian Cruise Line on Friday blasted a bid by marine fuel supplier and trader O.W. Bunker USA Inc. to force it to arbitrate its suit looking to recoup money it paid to a local fuel supplier to cover a debt allegedly owed by the bankrupt O.W., telling a Connecticut federal court there's no applicable arbitration agreement.

  • September 18, 2017

    Aerosoles' Parent Co. Takes First Steps In Brisk Ch. 11 Case

    Footwear producer and retailer Aerogroup International Inc. on Monday secured initial approvals needed to meet a Nov. 29 asset sale deadline in a Chapter 11 case to be financed from available cash that senior creditors agreed to release despite its designation as debt collateral.

  • September 18, 2017

    Worker Must Have Meant To Deceive For Bias Suit To Be Nixed

    The Eleventh Circuit ruled Monday that a court cannot just dismiss an employee's discrimination suit against U.S. Steel Corp. because she did not disclose the claims in her bankruptcy petition without first analyzing whether she intentionally meant to mislead the courts with the omission.

  • September 18, 2017

    Real Estate Rumors: Bridge Investment, RWN, Exeter

    Bridge Investment Group is said to have picked up a Florida assisted-living property for $77.2 million, RWN Real Estate Partners has reportedly won a bankruptcy auction for a New York Harlem development site and Exeter Property Group is said to have picked up a Florida manufacturing property for $14.9 million.

  • September 18, 2017

    Takata Injury Claimants Get More Time To Probe Financing

    A Delaware bankruptcy judge on Monday gave Takata Corp. personal injury claimants more time to challenge the unusual funding arrangement that the debtor has with its automaker customers, over the objections of both parties, ruling that to do otherwise would improperly curb their due process rights.

  • September 18, 2017

    Benefits To Ex-Avaya Worker's Widow Deemed Unsecured

    The widow of a former Avaya Inc. employee on Monday failed in her bid to have her survivorship benefits treated as an administrative expense rather than any other unsecured claim in the company’s ongoing restructuring in New York bankruptcy court.

Expert Analysis

  • Finding The Unicorn In Lender Liability Litigation

    Jerry Blanchard

    Investors frequently talk about trying to find the next unicorn, that small startup company that is going to turn into a billion-dollar valuation. The New Jersey district court's recent decision in PNC Bank v. Star Group offers debtors counsel hope that a unicorn has finally arrived in the lender liability context, says Jerry Blanchard of Bryan Cave LLP.

  • Why A Hanjin Fleet Came To Hong Kong

    Dean Young

    The demise of Korea’s Hanjin Shipping Co. Ltd. was the largest bankruptcy of a container line in history, and recently resulted in the biggest ever court sale of ships in Hong Kong, totaling over $600 million. Hong Kong’s legal system makes it an ideal venue for ship mortgage enforcement, say attorneys with Mayer Brown JSM.

  • A Guide To The Executive Branch Official Nomination Process

    Adam Raviv

    Although the Trump administration has completed the vetting and confirmation of a cabinet and White House staff, thousands of senior positions remain unfilled throughout the executive branch. More than ever, people selected for those posts find themselves under close scrutiny, say Adam Raviv and Reginald Brown of WilmerHale.

  • Cautionary Tales For Landlords Of Bankrupt Tenants

    Marshall Hogan

    If the past year is any indication, landlords of bankrupt retail tenants may want to be especially mindful of Section 502(b)(6) of the Bankruptcy Code, which may limit their ability to recover certain damages, says Marshall Hogan of Foley & Lardner LLP.

  • How Collaboration Is Changing Inside Some Law Firms

    Chris Cartrett

    In our recent survey of business of law professionals, nearly half of respondents said that who they collaborate with, inside their law firm, is different from five years ago, says Chris Cartrett of legal software provider Aderant.

  • Uses And Possible Misuses Of 3rd-Party Releases In Ch. 11

    Richard Epling

    The benefits of third-party releases to proponents of debt restructuring are obvious, but the release process also is subject to abuse or overreaching, and there are no clear boundaries beyond which plan proponents may not go, says Richard Epling, a retired partner at Pillsbury Winthrop Shaw Pittman LLP.

  • Opinion

    Dealing With Difficult Lawyers

    Alan Hoffman

    Some lawyers tend to be overly aggressive, regarding law practice as a zero-sum game in which there are only winners and losers. The best response is to act professionally — separating the matter at hand from the personalities. But it is also important to show resolve and not be vulnerable to intimidation, says Alan Hoffman of Husch Blackwell LLP.

  • The Psychology Of Hourly Fee Arrangements

    J.B. Heaton

    The range of possible and better fee agreements is wide. But such alternatives will become popular only if litigants confront the psychological tendencies shaping their existing fee arrangements, says J.B. Heaton, a partner at Bartlit Beck Herman Palenchar & Scott LLP.

  • Lessees Left In Limbo

    Kate Thomas

    The Ninth Circuit’s recent decision in Spanish Peaks casts doubt on the scope of protection that lessees may have when their leased real property is sold under Section 363 of the Bankruptcy Code, says Kate Thomas of Squire Patton Boggs LLP.

  • Self-Collection In E-Discovery — Risks Vs. Rewards

    Alex Khoury

    As judges become better educated about the complexities of collecting electronically stored information, in particular the inefficacy of keyword searching, they are increasingly skeptical of self-collection. And yet, for many good reasons (and a few bad ones), custodian self-collection is still prevalent in cases of all sizes and in all jurisdictions, says Alex Khoury of Balch & Bingham LLP.