Bankruptcy

  • October 15, 2021

    Teligent's Distributors Balk At Customer Risks In Ch. 11

    An unexpected lawsuit that emerged earlier this year from Insys Therapeutics Inc.'s bankruptcy case in Delaware raised concerns on Friday among Teligent Inc.'s largest pharmaceutical distributors that the bankrupt generic-drug manufacturer could put their customer programs at risk.

  • October 15, 2021

    Nursing Home Chain Gets OK For $25M In Ch. 11 Financing

    A Delaware bankruptcy judge said she will sign off on a nursing home chain's $25 million Chapter 11 financing package from its primary landlord as buyers are sought for the company's 28 facilities in three states.

  • October 15, 2021

    Eagle Hospitality To Float $380M Cash Payout In Ch. 11 Plan

    Eagle Hospitality Group has rolled out a plan and disclosure statement for its Delaware Chapter 11 liquidation, aiming to complete voting by Dec. 9 and secure a confirmation on Dec. 16 or 20 for a liquidation that will pay about $379.5 million to top creditors in the 15-hotel bankruptcy.

  • October 15, 2021

    Resistance To J&J's Bankruptcy Gambit May Be Futile

    Attorneys for talc plaintiffs with claims against Johnson & Johnson are determined to challenge the company's legally gray strategy of saddling a bankrupt subsidiary with its billions in talc liability, but experts say that battle will likely be an uphill one.

  • October 15, 2021

    Atty Asks Del. Justices To Eye Claim Over Racism Accusation

    A former Bayard PA attorney is urging Delaware's Supreme Court to reverse a lower court's decision tossing a defamation suit he filed against another attorney he claims falsely branded him a racist and religious bigot.

  • October 15, 2021

    Boutique Bankruptcy Firm Hires New Partner in Texas

    Fort Worth, Texas-based bankruptcy firm Forshey Prostok LLP recently announced the hiring of a new partner with over 20 years of law firm experience and a recent bankruptcy court clerkship under her belt.

  • October 15, 2021

    Mallinckrodt Ch.11 Plan Under Fire From Multiple Angles

    The drugmaker Mallinckrodt is facing more than a dozen objections to its proposed reorganization plan as it heads for a confirmation hearing in a Delaware bankruptcy court in just over two weeks, on grounds ranging from liability releases to insurance claims to bond terms.

  • October 14, 2021

    Del. Justices Uphold Mixed $6M Ruling On Solar Co. Breaches

    Delaware's Supreme Court upheld on Thursday a partial, $6.1 million Chancery Court win for investors who sued the manager of a solar power venture for fiduciary breaches and fraud after a disastrous performance, only to see some claims fall to litigation missteps and the solar company's bankruptcy.

  • October 14, 2021

    Johnson & Johnson Puts Talc Spinoff Into Ch. 11

    Johnson & Johnson said Thursday that it has sought Chapter 11 protection in North Carolina bankruptcy court for LTL Management, the subsidiary it has newly spun off to hold its cosmetic talc liability.

  • October 14, 2021

    Orrick, Cleary Hit With $310M Malpractice Suit

    Renewable energy company TerraForm Power slapped Orrick Herrington & Sutcliffe LLP and Cleary Gottlieb Steen & Hamilton LLP with a legal malpractice suit Wednesday, alleging the firms botched an M&A deal resulting in damages worth more than $300 million.

  • October 14, 2021

    Purdue Ch. 11 Plan Challenges Won't Hit 2nd Circ. Right Away

    A New York bankruptcy judge on Thursday denied a motion from parties appealing the confirmation of Purdue Pharma's Chapter 11 plan to bypass the normal appellate channels and bring their arguments directly to the Second Circuit.

  • October 14, 2021

    Pharma Co. Teligent Opens Ch. 11 In Del. With $130M Debt

    Generic pharmaceutical company Teligent Inc. sought Chapter 11 protection in Delaware on Thursday with nearly $130 million in debt and plans for a sale, saying it has been dealing with "regulatory headwinds" and the impact of the COVID-19 pandemic.

  • October 14, 2021

    Nursing Home Chain Gulf Coast Health Care Hits Ch. 11

    Three-state nursing home chain Gulf Coast Health Care LLC and 64 affiliates sought Chapter 11 protection in Delaware on Thursday, citing pandemic-driven operating costs, "crippling" staff woes and plans for a management turnover triggered by a $217 million rent acceleration.

  • October 13, 2021

    Jessica Simpson Can Bid For Control Of Her Fashion Line

    A Delaware federal bankruptcy judge has given pop star Jessica Simpson the green light to put in a bid in the hopes of controlling the clothing line that bears her name from bankrupt Sequential Brands Group Inc., according to an order issued Wednesday.

  • October 13, 2021

    Ontario Court Grants Extension Of Pot Co. IAnthus Takeover

    A judge on the Ontario Superior Court of Justice has affirmed an extension of the planned takeover of cannabis giant iAnthus by cannabis-focused private equity firm Gotham Green Partners LLC, despite iAnthus' arguments that the restructuring plan approved by courts and shareholders didn't give the lenders the authority to extend the deadline.

  • October 13, 2021

    Task Force Suggests Sweeping Changes To Fla. Condo Law

    A Florida Bar task force assembled to review the state's condominium law following the deadly Champlain Towers collapse has proposed sweeping changes that include making it harder for condominium associations to waive reserves, making financing more accessible to associations and increasing liability against developers and municipalities that conduct inspections.

  • October 13, 2021

    Judge Tosses 16K Talc Claimant Votes In Imerys Ch. 11

    A Delaware bankruptcy judge on Wednesday issued an order tossing out nearly 16,000 votes cast by talc injury claimants on Imerys Talc America's Chapter 11 plan, saying the law firm that submitted them had done nothing to check if the claimants had a right to vote.

  • October 13, 2021

    Girardi Keese Trustee Wants To Investigate Legal Lenders

    Girardi Keese's bankruptcy trustee wants to investigate several litigation lenders who poured tens of millions of dollars into the firm in recent years, even as it appeared that founder Thomas V. Girardi was spending the money improperly, according to a document filed Wednesday in Los Angeles bankruptcy court.

  • October 13, 2021

    Rhode Island Balks At Mallinckrodt Ch. 11's CEO Release

    The state of Rhode Island objected Wednesday to the proposed Chapter 11 plan of drugmaker Mallinckrodt PLC, telling a Delaware bankruptcy court that the plan seeks to provide impermissible releases of the state's claims against the debtor's CEO in Rhode Island court.

  • October 13, 2021

    Judge OKs Civil Settlement In $30M Treasury Bond Fraud Suit

    An Illinois federal judge Wednesday signed off on a civil enforcement agreement for a former fixed income securities trader accused of a $30 million fraud scheme that bankrupted his Atlanta-based employer, then paused the case while related criminal proceedings play out.

  • October 13, 2021

    Chilean Holdco Asks To Sell Bank Share Rights In Ch. 11

    Financial holding companies owned by Chilean billionaire Álvaro Saieh asked a Delaware bankruptcy judge for permission to sell subscription rights for new shares in Itau Corpbanca, saying it doesn't have the cash to exercise those rights itself.

  • October 13, 2021

    Sex Abuse Victims Target NJ Diocese's Trust, Parish Funds

    The committee representing individuals with clergy sexual abuse claims against a New Jersey Catholic diocese is asking a bankruptcy judge for permission to go after what it says is nearly $250 million held in a trust and a parish loan fund it claims the diocese controls.

  • October 12, 2021

    Zinc Biz Wants Out Of $25M Cleanup Fight

    A zinc producer told an Oklahoma federal court Tuesday it can't be held liable for what an aerospace parts maker did with raw materials purchased from the chemical company's predecessor, so it doesn't owe any portion of a $25 million contamination cleanup bill.

  • October 12, 2021

    Supreme Court Won't Revisit Equitable Mootness Doctrine

    The U.S. Supreme Court on Tuesday denied a petition for a writ of certiorari in a case seeking to test the viability of the equitable mootness doctrine, which allows bankruptcy appeals to be dismissed once a reorganization plan has been consummated.

  • October 12, 2021

    Avenatti Seeks Retrial Delay, Citing Need To Review Evidence

    Embattled high-profile attorney Michael Avenatti asked a California federal court on Tuesday to delay his wire fraud retrial, saying he needs time to review mountains of digital forensic evidence the government turned over in recent weeks while questioning how prosecutors can insist certain evidence isn't relevant when it was never examined to begin with.

Expert Analysis

  • Girardi Scandal Provides Important Ethics Lessons

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    The litigation and media maelstrom following allegations that famed plaintiffs attorney Thomas Girardi and his law firm misappropriated clients' funds provides myriad ethics and professional responsibility lessons for practitioners, especially with regard to misconduct reporting and liability insurance, says Elizabeth Tuttle Newman at Frankfurt Kurnit.

  • Series

    Embracing ESG: Jabil GC Talks Compliance Preparation

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    Tried-and-true compliance lessons from recent decades can be applied to companies’ environmental, social and governance efforts, especially with regard to employee training and consistent application of policies — two factors that can create a foundation for ESG criteria to flourish, says Robert Katz at Jabil.

  • Opinion

    Bankruptcy Venue Reform Bill Needs Amending

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    The Bankruptcy Venue Reform Act, currently pending in Congress, goes too far in limiting Chapter 11 filings to jurisdictions where a debtor's principal assets or headquarters are located; we propose a more targeted solution that considers the current reality of complex corporate structures, say Kenneth Rosen and Philip Gross at Lowenstein Sandler.

  • 3 Ways CLOs Can Drive ESG Efforts

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    Chief legal officers are specially trained to see the legal industry's flaws, and they can leverage that perspective to push their companies toward effective environmental, social and governance engagement, says Mark Chandler at Stanford Law School.

  • How Law Firms Can Rethink Offices In A Post-Pandemic World

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    Based on their own firm's experiences, Kami Quinn and Adam Farra at Gilbert discuss strategies and unique legal industry considerations for law firms planning hybrid models of remote and in-office work in a post-COVID marketplace.

  • Structured Ch. 11 Dismissals Aren't Dead, Despite Jevic

    Excerpt from Practical Guidance
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    A New York bankruptcy court's recent approval of structured Chapter 11 dismissals in KG Winddown demonstrates that the rumored demise of such distributions hasn't come to pass, in part due to the U.S. Supreme Court's failure to address their legality in its 2017 opinion in Jevic, say Dan Prieto and Mark Douglas at Jones Day.

  • Series

    Embracing ESG: Baker Hughes CLO Talks Sustainability Team

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    For businesses focused on addressing environmental, social and governance considerations, a legal team that can coordinate sustainability efforts across the company can help to manage risk and compliance issues, anticipate and prepare for change, and identify new opportunities, says Regina Jones at Baker Hughes.

  • What Mainstreaming Of Litigation Finance Means For Industry

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    The rush of new capital and investors into the litigation funding space is expected to bring heightened competition on price and other key deal terms, but litigants will need to be more in tune with individual financiers' proclivities, says William Weisman at Therium Capital Management.

  • What 9th Circ. Privilege Test Means For Dual-Purpose Advice

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    While the Ninth Circuit's recent ruling in In re: Grand Jury confirms that courts should use the primary-purpose test to determine whether communications with both legal and business purposes are shielded by the attorney-client privilege, questions on the application of the test remain, says Scott Tenley at Michelman & Robinson.

  • Opinion

    The DOJ Should Ramp Up FCA Focus In PPP Enforcement

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    The U.S. Department of Justice should utilize qui tam actions more in its Paycheck Projection Program enforcement efforts, both to maintain credibility with whistleblowers and to leverage the False Claims Act's lower burden of proof, which makes settlements easier to reach than criminal convictions, say R. Scott Oswald and Lydia Pappas at the Employment Law Group.

  • Lifting The Veil On The Supreme Court's Shadow Docket

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    Following headline-making U.S. Supreme Court emergency orders on Texas’ new abortion law, COVID-19 restrictions and more, Vetan Kapoor, counsel to Senate Judiciary Committee ranking member Chuck Grassley, R-Iowa, examines the court's so-called shadow docket and its decision-making procedures, including questions around transparency, timing and precedential effect.

  • Series

    Embracing ESG: United Natural Foods GC Talks Bottom Line

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    In prioritizing environmental, social and governance initiatives as strategic value drivers, corporate general counsel can leverage meaningful ESG progress to benefit both the business's bottom line and the wider world, says Jill Sutton at United Natural Foods.

  • What Plaintiffs Can Do If J&J Succeeds In Bankruptcy Strategy

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    If Johnson & Johnson is successful in its proposed divisive merger — a company split where all liabilities are shifted to a new company that files for bankruptcy — J&J tort plaintiffs will need to stick together to use the Bankruptcy Code's tools, including its voting mechanisms, to exert leverage on the debtor company, says Edward Neiger at Ask.

  • 3 Attorney Ethics Considerations For Litigation Funding

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    The growth of the litigation finance industry has generated questions on the obligations of counsel when their clients are seeking outside capital to fund litigation, which litigators must understand when providing information to a third-party funder and discussing legal strategy with a client, says Matthew Oxman at LexShares.

  • NY Debt Enforcement Alternatives For Cannabis Lenders

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    As the cannabis regulatory landscape continues to develop in New York, lenders contemplating extending credit to state-legal cannabis businesses must be acutely aware of procedures under state debt enforcement alternatives, set realistic expectations, and draft their agreements to maximize potential recoveries, say attorneys at Davis & Gilbert.

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