An airplane leasing company with no airplanes that socked away $190 million it was supposed to return to its lenders was called out Friday by a New York federal judge who said the business had no right to hoard the cash based on an “imagined” Brazilian legal risk and other “vague and conclusory” obligations.
A Florida-based investment firm that raised more than $64 million from 400 investors in an allegedly fraudulent securities offering sued Thursday to claw back over $3 million from one of the firm's originators who lured investors into the scam.
Consumer and commercial debt collector SquareTwo Financial Services Corp. made its case Friday to have its proposed Chapter 11 reorganization plan approved by a New York bankruptcy court, saying all creditors entitled to a distribution support its restructuring scheme.
Defunct China Fishery Group Ltd. was granted a six-month extension of exclusive control over its Chapter 11 case on Friday despite strong pushback from creditors, with a New York federal bankruptcy court giving the debtor until November to file a plan.
The U.S. Trustee has filed an objection in New York bankruptcy court to BCBG Max Azria Group Inc.’s disclosures on its Chapter 11 plan, saying it unjustifiably excludes creditors from the approval process and has overbroad liability releases.
A fabulously wealthy former Barclays Capital Inc. trader invited the Second Circuit on Friday to order the Lehman Brothers Inc. estate to make him richer by $83 million, but a three-judge panel seemed hard-pressed to ignore once-secret recordings the trader made that prompted lower courts to deny him the extra haul.
A group of Breitburn Energy equity holders and secured lenders told a New York bankruptcy judge on Thursday that the company has abandoned assurances to actively involve them in restructuring negotiations and should not enjoy unconditional extensions to its Chapter 11 plan exclusivity period.
Under fire from California city and state agencies for its handling of now-idle oil and gas wells on a site in Beverly Hills, Venoco LLC told a Delaware bankruptcy judge Thursday the dispute should be settled with Chapter 11 claims and not a court order to fund a permanent shutdown of the site.
Payless ShoeSource Inc. is investigating possible legal claims against venture capital backers Golden Gate Capital and Blum Capital, the company said Wednesday, while also separately asking a Missouri bankruptcy court for permission to double store closures from 400 to 800.
Facing a bloated balance sheet and difficulties attributed to lower reimbursement rates and health care regulation penalties, global cancer treatment center operator 21st Century Oncology sought Chapter 11 protection on Thursday in New York bankruptcy court to implement a prearranged plan that would chop its $1.1 billion debt in half.
A Delaware bankruptcy judge gave Optima Specialty Steel Inc. clearance Thursday on the disclosure statement for its Chapter 11 plan, which purports to ensure all creditors are unimpaired, but warned that a fight may be looming at confirmation over post-petition interest on notes held by DDJ Capital Management LLC.
A New York federal judge on Thursday refused to preliminarily approve a $3.9 million settlement that would resolve a proposed investor class action against helicopter services giant CHC Group Ltd., citing concerns that absent class members could think “the deck is stacked against them” before they can object to the deal.
Avaya Inc. on Thursday was given a 60-day extension to file a Chapter 11 plan without competing proposals after attorneys for the bankrupt telecom giant told a New York bankruptcy judge that they are negotiating with secured lenders that were unsatisfied with an initial plan.
A health company co-founder embroiled in a bitter dispute with his former partner has told a California federal appeals court that a $27 million jury verdict against him is illegitimate after a federal judge entertained state claims simultaneously being heard by a state judge.
Defunct Katy Industries Inc. shouldn’t lock itself into an agreement to pay its stalking horse bidder $2.1 million in breakup fees if a higher bidder comes along, the federal bankruptcy watchdog told the Delaware bankruptcy court Wednesday, calling the fee excessive.
The New Jersey Supreme Court has ordered the state's Appellate Division to revisit its decision that a property owner may pursue litigation against insurers over environmental cleanup coverage under policies issued to a bankrupt former owner, saying that finding should be re-evaluated based on a Supreme Court opinion on post-loss claim assignments.
The official committee of unsecured creditors in the Marsh Supermarkets Holding LLC bankruptcy took aim late Tuesday at what the committee called the debtor’s “extremely expedited” sale plans for more than 40 of its best locations, arguing the crunched schedule could doom Marsh to failure.
A Nuverra Environmental Solutions Inc. noteholder trustee accused the bankrupt oil field services company on Wednesday of fielding an “impermissible and unconfirmable” Chapter 11 plan that fully pays general unsecured creditors without providing any cash to holders of $41 million in notes.
Warning that bankruptcy expenses could drain its case, saltwater battery developer Aquion Energy Inc. won an accelerated review for its Delaware Chapter 11 bid procedures Wednesday, and said that its only current bidder needs to close on a sale before June 30.
A Delaware bankruptcy judge gave Adams Resources Exploration Corp. the green light Wednesday for an auction plan both he and the U.S. trustee’s office say they’ve never seen before that will allow the oil and gas driller’s nondebtor parent and post-petition lender to bid five days after the deadline.
In the second installment of this two-part series on disruptive innovation among mid-size law firms, Jill Dessalines, founder of Strategic Advice for Successful Lawyers and former senior vice president at McKesson Corp., explores a number of ideas for keeping clients and maintaining market position.
When does a modification “substantially impair” a junior lender’s priority? While not adopting a bright-line rule to answer this question, an Illinois state appeals court in Bowling Green Sports Center v. GAG LLC offered examples of where it would find “substantial impairment,” resulting in a senior lender losing its priority status, say Jason Hirsh and Erin Mayer Isaacson of Levenfeld Pearlstein LLC.
As I sat there listening, incredulous to learn that "Milkshake" was not only a real song but also a chart-topper, it reminded me of Harvard Business School Professor Clayton Christensen’s work on disruptive innovation — and how it pertains to mid-size law firms, says Jill Dessalines, founder of Strategic Advice for Successful Lawyers and former assistant general counsel of McKesson Corp.
Although used often in deal negotiations, the term “silent second” has different meanings for different institutions and different meanings in the United States and Europe. Capital structures that include silent second-lien debt can therefore be complicated, particularly in cross-border transactions involving different insolvency or contract laws, say attorneys with Mayer Brown LLP.
Every lawyer who’s handled a civil case in federal court knows about Rule 30(b)(6), governing deposition procedures. But for many real-world deposition dilemmas, the rule offers little guidance. Last year, an Advisory Committee on Civil Rules subcommittee began considering whether the rule should be amended. Now attorneys must advise the subcommittee how to proceed, says Frank Silvestri Jr. of Verrill Dana LLP.
A Delaware federal judge's recent opinion in Millennium Lab Holdings demonstrates the extent to which the constitutional questions raised by the U.S. Supreme Court six years ago in Stern v. Marshall continue to cast a shadow over the adjudication of bankruptcy cases, says Benjamin Feder of Kelley Drye & Warren LLP.
Despite an increase in engagement with client feedback programs over the last 15 years, law firms — and their clients — have a way to go before realizing the maximum benefits such programs can deliver, says Elizabeth Duffy of Acritas US Inc.
Litigation over the Section 546(e) safe harbor has been on the rise in the last several years and the defenses against these suits have been furious. This makes the U.S. Supreme Court’s decision to review FTI Consulting v. Merit Management even more important, say Brian Koosed and Robert Honeywell of K&L Gates LLP.
As in many municipal bankruptcies, the Puerto Rico case is likely to devolve into a battle between bondholders on the one hand and the holders of pension obligations on the other, says John Hansen of John Hansen Law.
Most law firms today aren't using common security and data protection measures that other industries employ to protect sensitive data. Options like continuous data replication and backups have various pros and cons, but most importantly, law practices must understand the need for a two-tiered approach to data protection, says Jeff Ton of Bluelock LLC.