Bankruptcy

  • June 11, 2021

    Ill. Atty Created Sham Creditor To Hide Client Assets, Jury Told

    A former Freeborn & Peters partner engaged in a scheme to create a sham secured creditor with a senior lien on a client's struggling Chicago company in order to hide its assets from legitimate creditors, prosecutors told an Illinois federal jury Friday.

  • June 11, 2021

    Mallinckrodt Creditors Question Ch. 11 Drug Sale Process

    The official committee of unsecured creditors in the Chapter 11 case of drugmaker Mallinckrodt PLC objected on Friday to the company's proposed sale of a development-stage pharmaceutical, saying the company didn't run an adequate marketing process and is seeking to sell the asset at too low of a price.

  • June 11, 2021

    Law Grad Says Debt Firm Illegally Went After Discharged Loan

    Debt collection law firm Weltman Weinberg & Reis has been hit with a proposed class action by a law school graduate who claims the firm helped a creditor try to collect on a loan she took out for bar exam preparation materials even though the debt was discharged in her Chapter 7 case.

  • June 11, 2021

    US Trustee Balks At Alex And Ani's Bid To Seal Ch. 11 Details

    The Office of the U.S. Trustee balked Friday at a case-opening proposal by bankrupt jewelry retailer Alex and Ani LLC to bar public access to some terms of a creditor settlement woven into the debtor's Chapter 11 restructuring support agreement in Delaware.

  • June 11, 2021

    Insys Seeks Ch. 11 Clawback Of $10M In Ex-CEO's Legal Fees

    Drugmaker Insys Therapeutics filed suit in Delaware bankruptcy court seeking to recover more than $10 million in legal fees the company paid out to its former CEO to defend him in a criminal kickback case for which he is now serving prison time.

  • June 11, 2021

    UK Litigation Roundup: Here's What You Missed In London

    The past week in London has seen Ukraine's bank deposit protection scheme sue a bank in Liechtenstein, streaming platform Twitch take aim at a viewing bot, and law firm Kennedys files for an injunction against Hiscox.

  • June 10, 2021

    Fall Bench Trial Set For Lehman Bros' CDS Insurer Fight

    A New York state judge on Thursday set an October bench trial date for a lawsuit by Lehman Brothers' bankrupt European unit that accuses an Assured Guaranty Ltd. affiliate of failing to make good on hundreds of millions of dollars worth of credit default swap trades after the 2008 financial crisis.

  • June 10, 2021

    Minn. Attys Say Pro-Trump Views Were Behind Firm's Firings

    A trio of former Kain & Scott PA attorneys have accused the Minnesota bankruptcy firm of firing their colleagues for publicly supporting former President Donald Trump and the police on social media, telling a Minnesota state court that they were then terminated for speaking out. 

  • June 10, 2021

    Trenk DiPasquale Cost Ex-Client Chance At $300K, Court Told

    A onetime client of then-Trenk DiPasquale Della Fera & Sodono PC has slapped the law firm and two of its ex-partners with a New Jersey state lawsuit alleging their shoddy representation cost him chances to recoup more than $300,000 from his real estate dealings and to pursue claims against a bank. 

  • June 10, 2021

    Former Houston Controller Joins Jones Walker

    Jones Walker LLP got its Texas public finance practice up and running by adding a project finance pro with a quarter-century of experience to its ranks in Houston, the firm announced Thursday.

  • June 10, 2021

    Willkie Adds Ex-DLA Piper Restructuring Partner In Chicago

    Willkie Farr & Gallagher LLP announced it has hired an attorney from DLA Piper who has significant experience helping clients with investments and debt reorganizations and will be the first finance and restructuring partner based in the firm's year-old Chicago office.

  • June 10, 2021

    Kossoff Loses Bid To Tailor Discovery Order

    A New York federal bankruptcy judge rejected a bid to qualify discovery into real estate attorney Mitchell Kossoff and his shuttered law firm in consideration of criminal investigations, but assured his counsel that all rights will be preserved going forward.

  • June 10, 2021

    Hertz Gets OK For Ch. 11 Plan Providing $1B To Stockholders

    Car rental giant Hertz Global on Thursday gained approval for a Chapter 11 plan of reorganization returning $1 billion of value to shareholders, which a Delaware bankruptcy judge called "a remarkable result" about a year after the company had been staring down the edge of a liquidation cliff.

  • June 10, 2021

    US Trustee Says It's Owed Fees On $90M Paragon Deal

    The U.S. Trustee's Office told a Delaware bankruptcy judge on Thursday that it's owed a fee on the planned distribution of $90 million in settlement proceeds by a trust set up by bankrupt Paragon Offshore, arguing it's effectively a payment under Paragon's Chapter 11 plan.

  • June 10, 2021

    Rising Star: Latham & Watkins' Ted Dillman

    Ted Dillman of Latham & Watkins has represented parties in some of the standout bankruptcy cases of the past year, including the $1 billion Global Eagle Entertainment Chapter 11 and retail chain Belk Inc.'s record-setting one-day bankruptcy, earning him a spot among the bankruptcy law practitioners under age 40 honored by Law360 as Rising Stars.

  • June 10, 2021

    Jeweler Alex And Ani Opens Ch. 11 For Sale Or Shake-Up

    Jewelry retailer Alex and Ani Inc. has filed for Chapter 11 protection in Delaware bankruptcy court, saying it has the full support of its secured lenders and shareholders to pursue either an equity swap or a quick sale to deal with more than $156 million in debt.

  • June 09, 2021

    Tom Girardi's Conservatorship Made Permanent

    A Los Angeles judge on Wednesday placed disgraced trial attorney Thomas V. Girardi permanently under the care of his brother in conservatorship, despite claims the 81-year-old attorney is faking having Alzheimer's in order to insulate himself from allegations that he stole tens of millions of dollars from his own clients.

  • June 09, 2021

    REIT Investor Sues After Bad Financial News Tanked Stock

    An investor in real estate investment trust Washington Prime Group Inc. filed a proposed class action in Ohio federal court Wednesday, accusing the company, its CEO and its chief financial officer of making intentionally false statements that, when revealed, caused the company's stock to drop significantly.

  • June 09, 2021

    Wardman Hotel OK'd For Ch. 11 Auction Over Union Objection

    A Delaware bankruptcy judge Wednesday approved plans to put Washington's Wardman Park Hotel up for auction in July, overriding concerns by the hotel's unions that bidders won't have enough information on the contract obligations they may be taking on.

  • June 09, 2021

    ESW-Backed Trading Software Firm's Ch. 11 OK'd In Del.

    Bankrupt asset management and trading software business Adara Enterprises Corp. secured confirmation of its Chapter 11 plan in Delaware on Wednesday, under which it will restructure $13 million in debt and give top creditor ESW Holdings control of the company.

  • June 09, 2021

    Hertz Noteholders Reach Deal On Ch. 11 Plan Objections

    Hertz Co.'s second-lien noteholders told a Delaware bankruptcy judge they've reached a preliminary deal to drop their claim that the auto rental giant's Chapter 11 plan fails to give them the payments and rights their $350 million in notes entitle them to.

  • June 09, 2021

    Creditor Opposes More Reed Smith Duties In Recycler's Ch. 11

    A creditor of plastics recycler CarbonLite Holdings LLC told the Delaware bankruptcy court Tuesday that it should reject a request to expand the Chapter 11 duties of special corporate counsel Reed Smith, asserting "an insurmountable conflict of interest" involving the firm.

  • June 09, 2021

    Rising Star: Weil's Candace M. Arthur

    Whether she is arranging an out-of-court restructuring for movie theater colossus AMC or wading through the onslaught of retail bankruptcy cases triggered by the COVID-19 pandemic, Candace M. Arthur of Weil Gotshal & Manges LLP has been deploying creative business solutions to address her clients' needs, earning her a spot among the bankruptcy practitioners under age 40 honored by Law360 as Rising Stars.

  • June 08, 2021

    Highland Capital's Ch. 11 Contempt Motion To Be Granted

    A Texas bankruptcy judge said Tuesday she would be granting a motion from bankrupt investment firm Highland Capital Management seeking sanctions against parties who pursued litigation claims against the debtor's CEO despite a court order barring them, but said she needed time to determine the amount of the sanctions.

  • June 08, 2021

    Delaware Drug, Mental Health Provider OK'd For $12.5M Sale

    A Delaware bankruptcy judge Tuesday approved drug and mental health provider Connections Community Support Programs Inc.'s $12.5 million asset sale to its stalking horse bidder, which the organization says will preserve its programs.

Expert Analysis

  • A Biz Strategy Model To Improve Lateral Atty Hiring Diversity

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    Quantitative comparison tools commonly used by companies in evaluating merger targets will allow law firms to assess lateral hire candidates in a demographically neutral manner, help remove bias from the hiring process and bring real diversity to the legal profession, says Thomas Latino at Florida State University.

  • NextEra Ruling Could Support Initial-Bidder Expense Claims

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    The Third Circuit’s recent broad decision that NextEra's unsuccessful merger bid for Energy Future Holdings could nevertheless benefit EFH's bankruptcy estate provides future stalking horse bidders substantial leverage and may establish an alternative way for them to recover transactional expenses, says Ronit Berkovich at Weil.

  • Expedited Bankruptcies Are Cause For Concern

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    The Office of the U.S. Trustee's recent concerns over the increase in so-called shotgun bankruptcies are legitimate: These expedited processes limit oversight by the bankruptcy court to the detriment of smaller stakeholders, say Brian Shaw and David Doyle at Cozen O'Connor.

  • Smaller Firms Need Employee Wellness Programs, Too

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    As we emerge from the pandemic, small and midsize firms — which offer an ideal setting for companywide connection — should follow in the footsteps of larger organizations and heed the American Bar Association’s recommendations by adopting well-being initiatives and appointing a chief wellness officer, says Janine Pollack at Calcaterra Pollack.

  • Stop Networking, Start Relationship Marketing

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    USA 500 Clubs' Joe Chatham offers four tips for lawyers to get started with relationship marketing — an approach to business development that prioritizes authentic connections — and explains why it may be more helpful than traditional networking post-pandemic.

  • Mortgage Servicers Should Prepare To Be In CFPB Crosshairs

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    In light of recent indications that the Consumer Financial Protection Bureau will make housing security a top priority, residential mortgage servicers should prepare for increased enforcement scrutiny as foreclosures and evictions rise post-pandemic, say attorneys at Manatt.

  • What Attorneys Should Know About Fee Deferral

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    Milestone Consulting’s John Bair explores contingency-fee structuring considerations for attorneys, laying out the advantages — such as tax benefits and income control — as well as caveats and investment options.

  • Predictions On Pandemic's Lasting Impact On Legal Education

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    The pandemic accelerated the pace of technological change for legal education, and some of the changes to how law school courses are taught and on-campus interviews are conducted may be here to stay, says Leonard Baynes at the University of Houston.

  • Lawyer Perfectionism Is A Disease We Can Control

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    The pursuit of perfection that is prevalent among lawyers can lead to depression, anxiety and other mental health impacts, but new attorneys and industry leaders alike can take four steps to treat this malady, says Liam Montgomery at Williams & Connolly.

  • 5 Tips To Help Your 2021 Summer Associates Succeed

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    Despite pandemic-related challenges this year, law firms can effectively train summer associates on writing and communicating — without investing more time than they ordinarily would, says Julie Schrager at Schiff Hardin.

  • Weighing Ability To Pay Criminal Fines Amid FCPA Crackdown

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    As Foreign Corrupt Practices Act enforcement is expected to increase under the Biden administration, companies facing scrutiny should assess the reasonableness of fines in the context of their capacity to continue operations, and the potential impacts of filing an inability-to-pay claim, say analysts at Charles River Associates.

  • Pa. Tax Talk: Takeaways From 2 Commonwealth Court Rulings

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    A Pennsylvania appellate court's recent decision in Good Shepherd Rehabilitation v. Allentown sets a positive precedent for other nonprofits subject to Allentown's aggressive tax position, and its recent decision in Mandler v. Commonwealth offers a reminder that some taxes, including payroll withholding taxes, are never dischargeable in bankruptcy, says Jennifer Karpchuk at Chamberlain Hrdlicka.

  • Firms Should Use Surveys To Make Smart Legal Tech Choices

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    The utility of legal technology innovations may be limited without clear data and objectives from the outset, but targeted surveys can provide specific insights that enable law firms to adopt the most appropriate and efficient tech solutions, says Tim Scott at Frogslayer.

  • Don't Forget Due Diligence In Race For Lateral Associate Hires

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    Amid high demand for associates and aggressive competition to attract talent, law firms should take three key steps to conduct meaningful prehire due diligence and safeguard against lateral hiring mistakes that can hurt their revenue and reputation, says Michael Ellenhorn at Decipher.

  • Jevic Ch. 7 Ruling Highlights DIP Agreement Consequences

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    The Delaware bankruptcy court’s recent Jevic Holding ruling — that a Chapter 11 debtor-in-possession agreement can bind a subsequent Chapter 7 trustee — provides protection against clawback claims for lenders and guidance on DIP agreement negotiations for creditors’ committees, say attorneys at Kleinberg Kaplan.

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