Bankruptcy

  • July 02, 2020

    NPC International Fields Creditor Questions At Hearing

    The largest Pizza Hut and Wendy's franchisee in the U.S. appeared in a Texas bankruptcy court Thursday alongside its second-lien lenders, who complained about being left out of the talks that produced a restructuring agreement with first-lien lenders.

  • July 02, 2020

    NextEra Fights For $60M Fee From EFH Ch. 11 At 3rd Circ.

    NextEra Energy Inc. urged the Third Circuit on Thursday to revive its bid for $60 million in administrative expenses in connection with a scrapped deal to purchase assets from bankrupt Energy Future Holdings Corp., arguing that it spent the money in reliance on a sale termination fee that was later taken off the table.

  • July 02, 2020

    Faraday Future Tycoon Exits Ch. 11 After $3.5B Reorg

    A Chinese tycoon and founder of electric car startup Faraday Future reported a successful emergence Thursday from a personal Chapter 11 in California that briefly detoured through Delaware bankruptcy court, following confirmation of a more than $3.5 billion reorganization.

  • July 02, 2020

    Platinum Receiver Settles With Insurers For $14M

    The receiver for defunct hedge fund Platinum Partners agreed to pay around $14 million to settle with insurers that say Platinum owed them more than $44 million, a move the receiver said eliminated one of the biggest obstacles to investors finally recouping some of their losses.

  • July 02, 2020

    Libbey's Ch. 11 Financing OK'd Despite Trustee Opposition

    A Delaware bankruptcy judge on Thursday approved Libbey Glass Inc.'s post-petition financing package despite U.S. trustee opposition to financing terms related to possible litigation that could be pursued over $2.35 million in prepetition bonuses paid to five executives.

  • July 02, 2020

    Top New Jersey Cases Of 2020: A Midyear Report

    New Jersey attorneys made possible a host of significant achievements in the first half of 2020 as the state maintained its place as the second-hardest-hit by COVID-19 and shuttered courtrooms forced most proceedings to be held via telephone or Zoom. 

  • July 01, 2020

    Akorn Gets Del. Ch. 11 Disclosure OK As Plan Fight Looms

    Bankrupt pharmaceutical company Akorn Inc. secured Delaware court approval Wednesday for its Chapter 11 disclosure, while also receiving a preview of coming dissents over its more than $1 billion case and sale ambitions.

  • July 01, 2020

    24 Hour Fitness Rent Deferral OK'd Over Landlord Outcry

    A Delaware judge on Wednesday gave her nod for gym chain 24 Hour Fitness Worldwide Inc. to defer an estimated roughly $65 million in rent payments, despite strong objection from multiple landlords, as it moves forward with Chapter 11 plans to restructure its $1.4 billion in debt.

  • July 01, 2020

    Judge May Allow Suit Over 'Troubling' McClatchy Debt Rework

    The New York bankruptcy judge overseeing newspaper chain McClatchy Co.'s bankruptcy said he would decide by the end of the week whether to give unsecured creditors permission to sue over what he called "troubling" aspects of a 2018 debt restructuring.

  • July 01, 2020

    Most JC Penney Stores Reopened As Ch. 11 Case Proceeds

    Attorneys representing J.C. Penney told a Texas bankruptcy judge Wednesday that its Chapter 11 case is progressing on schedule, and that the retail icon has been able to reopen 831 of its nearly 850 stores as COVID-19 restrictions have been lifted in different parts of the country.

  • July 01, 2020

    5th Circ. Told To Reject Client's Bid For Piece Of Fee Award

    A doctor who blew the whistle on Medicaid fraud is brazenly overreaching by arguing that he is entitled to a share of the attorney fees his lawyer was awarded by a bankruptcy court after a $4 million settlement, the attorney argued to the Fifth Circuit Wednesday.

  • July 01, 2020

    Ex-Performance Sports Brass Beat Ch. 11 Duty Breach Suit

    Former officers and directors of bankrupt Performance Sports Group Ltd. won a Delaware court dismissal Tuesday of an estate litigation trustee's claims that insider fiduciary duty failures and corporate waste led the company into a more than $500 million Chapter 11 and "distressed" sale.

  • July 01, 2020

    COVID-19 Sends Top Pizza Hut, Wendy's Franchisee To Ch. 11

    The largest franchisee of Wendy's and Pizza Hut restaurants in the U.S. filed for Chapter 11 protection Wednesday in a Texas bankruptcy court with more than $1 billion in debt, citing the economic uncertainties around the COVID-19 pandemic.

  • July 01, 2020

    Wirecard Offices Raided Again As Fraud Probe Widens

    Police and prosecutors raided Wirecard's head office in Germany and four other properties on Wednesday in a widening investigation into alleged fraud linked to €1.9 billion ($2.1 billion) missing from the company's accounts.

  • June 30, 2020

    Weinstein To Pay $19M To End Accusers' Class Action

    Hollywood producer and convicted rapist Harvey Weinstein, along with some of his companies and associates, has agreed to pay nearly $19 million to end a putative class action alleging that he sexually harassed and abused dozens of women, the women said Tuesday in New York federal court.

  • June 30, 2020

    Aeromexico Announces Ch. 11 Restructuring Amid Pandemic

    Mexican airline Aeromexico announced Tuesday that it has filed a voluntary Chapter 11 petition in New York bankruptcy court, joining the list of airlines to acknowledge that the COVID-19 pandemic has negatively impacted their business.

  • June 30, 2020

    Imerys Ch. 11 Sale Process OK'd Despite Insurer Concerns

    A Delaware judge on Tuesday approved Chapter 11 sale procedures for Johnson & Johnson talc supplier Imerys Talc America Inc., despite opposition from a group of insurers who contended they may not be left with enough time to mount a challenge if certain insurance policies are included in the sale.

  • June 30, 2020

    Advantage Gets OK On $17M In Ch. 11 Airport Contract Sales

    The parent company of Advantage Rent A Car received permission from a Delaware bankruptcy judge Tuesday for the sale of its airport rental agency agreements in two transactions worth more than $17 million.

  • June 30, 2020

    Sea Tow Says Ex-Franchise Used Ch. 11 For Fraud Scheme

    Marine salvager Sea Tow Services on Tuesday told a New York federal judge that a pair of former franchisees and their son engaged in a fraudulent scheme to try to reclaim their terminated franchise agreement through an "orchestrated bankruptcy."

  • June 30, 2020

    2nd Circ. OKs $20M Award For Madoff Investor Class Attys

    The Second Circuit on Tuesday rejected the last objection to a nearly $20 million fee award for counsel of an investor class that received a $1 billion settlement for money lost through Bernard Madoff's Ponzi scheme.

  • June 30, 2020

    Mexican Retailer Grupo Famsa Seeks To Exit Ch. 11 In August

    Mexican retail chain Grupo Famsa told a New York bankruptcy judge Tuesday it already has a nearly 99% vote in favor of its prepackaged plan to swap out $59 million in notes for longer-term ones, and that it hopes to emerge from Chapter 11 by the middle of August.

  • June 30, 2020

    Sedgwick Trustee Files Suit Over Unpaid Legal Fees

    Defunct law firm Sedgwick LLP has accused the Los Angeles Unified School District, two California companies, and a private individual of failing to pay up a combined $675,000 for legal services the firm provided, plus interest.

  • June 30, 2020

    Pandemic, Energy Prices Send Minerals Biz Covia To Ch. 11

    Minerals company Covia filed for Chapter 11 protection in a Texas bankruptcy court to cut debt and fixed costs by more than $1 billion, citing the effects of the COVID-19 pandemic and recent energy price shocks on its business.

  • June 29, 2020

    Miller Energy Investors Win Cert. In Suit Over KPMG Audit

    A Tennessee federal magistrate judge on Monday recommended certifying two proposed investor classes accusing accounting giant KPMG of helping the now-defunct Miller Energy Resources Inc. falsify financials about oil and gas assets, finding the shareholders proved they fulfill all federal requirements.

  • June 29, 2020

    Bankrupt Movie Theater Pushes Bid For Rent Relief In Fla.

    Movie theater operator Cinemex Holdings USA Inc. pushed back Monday in Florida bankruptcy court on some of its landlords' objections to its bid for rent relief as it navigates the COVID-19 pandemic, saying there are factors beyond whether government authorities allow it to reopen.

Expert Analysis

  • COVID-19 Relief Efforts Heighten Fair Credit Reporting Risks

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    Financial services companies should shore up documentation of credit reporting practices in anticipation of increased enforcement actions and civil litigation related to the Fair Credit Reporting Act and CARES Act compliance amid the COVID-19 crisis, say Allison Schoenthal and Ashley Hutto-Schultz at Hogan Lovells.

  • Opinion

    Time To Consider Percentage Rental Agreements For Lawyers

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    It has long been the law that attorneys cannot use percentage rental agreements because doing so would constitute an impermissible sharing of fees with nonlawyers, but such arrangements can help lawyers match expenses with revenues in lean times like now, say Peter Jarvis and Trisha Thompson at Holland & Knight.

  • What COVID-19 Means For The Future Of Health Mergers

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    Health industry sectors, including hospitals and physician organizations, are likely to see growth in consolidation activity as a result of COVID-19, but remote deal-making and other challenges will increase the difficulty of finalizing deals, says Larry Gage at Alston & Bird.

  • 'Settle And Sue' Malpractice Cases Have New Clarity In Calif.

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    A California state appellate court's recent decision in Masellis v. Law Office of Leslie F. Jensen provides a road map for proving causation and damages in settle-and-sue legal malpractice cases — an important issue of long-standing confusion, says Steven Berenson at Klinedinst.

  • What You Say In Online Mediation May Be Discoverable

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    Mediation conducted online with participants in different states makes it harder to determine where communications were made, increasing the risk that courts will apply laws of a state that does not protect mediation confidentiality, say mediators Jeff Kichaven and Teresa Frisbie and law student Tyler Codina.

  • 10 Tips For A Successful Remote Arbitration Hearing

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    As I learned after completing a recent international arbitration remotely, with advance planning a video hearing can replicate the in-person experience surprisingly well, and may actually be superior in certain respects, says Kate Shih at Quinn Emanuel.

  • Opinion

    To Achieve Diversity, Law Firms Must Reinvent Hiring Process

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    If law firms are truly serious about making meaningful change in terms of diversity, they must adopt a demographically neutral, unbiased hiring equation that looks at personality traits with greater import than grades and class rank, says Thomas Latino at Florida State University College of Law.

  • Cybersecurity Steps For Law Firms Amid Heightened Risks

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    With large swaths of the population indoors and primarily online, cybercriminals will be able to exploit law firms more easily now than ever before, but some basic precautions can help, says Joel Wallenstrom at Wickr.

  • Madoff Recovery's Next Steps After Justices' Petition Pass

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    The U.S. Supreme Court’s recent refusal to review a Second Circuit decision allowing recovery of funds Bernie Madoff transferred outside the U.S. leaves open the question of whether the clawback initiative’s claims will survive given the strict pleading and proof standards that have evolved over the last 12 years of litigation, say attorneys at Quarles & Brady.

  • Ill. Force Majeure Ruling Could Be Problematic For Landlords

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    Businesses considered nonessential during the pandemic may be able to look to an Illinois bankruptcy court's recent ruling in Hitz Restaurant Group to invoke a force majeure defense and get excused for rental obligations during the time they were unable to operate, say attorneys at Saul Ewing.

  • Opinion

    It's Time For Law Firms To Support Work-From-Home Culture

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    Now that law firms are on board with fully remote work environments, they must develop policies that match in-office culture and align partner and associate expectations, says Summer Eberhard at Major Lindsey.

  • Strategies For Purchasing IP Assets From Distressed Owners

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    In the current economy, third parties have an opportunity to strategically acquire intellectual property assets from distressed companies in or preparing for bankruptcy, and coordinating with an involved investment banker or owner prebankruptcy may afford tactical advantages, say attorneys at Faegre Drinker.

  • Opinion

    Republicans Keep Confirming Unqualified Judicial Nominees

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    What emerges from the group of 200 federal judges confirmed by the Senate under President Donald Trump is a judiciary stacked with young conservative ideologues, many of whom lack basic judicial qualifications, says Sen. Dianne Feinstein, D-Calif., ranking member of the Senate Judiciary Committee.

  • Commercial Mortgage Loan Modifications Amid COVID-19

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    As commercial real estate lenders and borrowers increasingly rely on loan modifications to address challenges posed by COVID-19, they must adapt their strategies to the specific type of loan involved, says Fernando Landa at Crosbie Gliner.

  • Tips For Crafting The Perfect Law Firm Alert

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    As lawyers have had more time to write in recent weeks, the number of law firm alerts has increased massively, but a lot of them fail to capture readers and deliver new business, says Richard Torrenzano at The Torrenzano Group.

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