As the pace of oil and gas bankruptcies accelerates, companies won't be able to broker restructuring deals outside of a courtroom as easily as they did during the prior bankruptcy wave a few years ago. Here, Law360 breaks down what boxes oil and gas companies must check for a prepackaged deal in 2020 and how to move forward when that option isn't on the table.
Fairway Markets has told a New York bankruptcy court that the difficulty of running a grocery chain in Chapter 11 and in the face of the COVID-19 pandemic justifies its proposal to pay $2.3 million in executive bonuses.
Quorum Health Care Services LLC tentatively secured a 35-day post-disclosure path to confirmation for its more than $1.3 billion Delaware Chapter 11 reorganization Thursday, after a debtor attorney accused an equity investor of raising an "irresponsible" objection to the hospital chain's timetable.
A Waterbridge Capital venture is reportedly looking for $251 million of financing for a downtown Los Angeles mixed-use property, billionaire Patrick Soon-Shiong may personally buy a former Los Angeles hospital and Weiss Group of Cos. has reportedly scored $21.3 million in financing for a Miami mixed-use project.
A Delaware federal judge Thursday told the parent company of Paragon Offshore PLC it is too soon for it to appeal a bankruptcy judge’s finding that he can make final decisions on fraudulent transfer claims against the company, saying it won’t advance the case.
The Singapore Court of Appeal concluded Tuesday that a debtor need only prove a disputed debt is subject to an arbitration agreement in order to escape a winding-up application initiated by a creditor, reversing an opposing conclusion reached by a lower court in a $170 million dispute.
Pacific Gas & Electric is drumming up support for its reorganization plan, trumpeting Thursday an endorsement from consumer advocate Erin Brockovich, who led a legal battle against the utility over contaminated California drinking water in the mid-1990s and said wildfire victims’ “best way forward” is confirming the plan.
A London judge on Thursday paused “extraordinary” bankruptcy proceedings against an Indian magnate facing extradition from the U.K. on fraud charges, saying he has to be given a chance to settle his £1.05 billion ($1.3 billion) debt with several banks in India.
The past week in London has seen a major Portuguese bank join the queue of lenders suing Mozambique in the wake of a $2 billion fraud scandal, Russia's sovereign wealth fund target another news outlet over coverage, and BP add to the legal woes for its rival Glencore. Here, Law360 looks at those and other new claims in the U.K.
California-based amusement park chain Apex Parks Group LLC entered Chapter 11 in Delaware with more than $100 million in liabilities, saying it would pursue a reorganization and sale of its 12-site, three-state business, with secured lenders serving as a bidder-to-beat stalking horse.
Tennessee-based Quorum Health Corp. has told a Delaware bankruptcy court it is hoping to have a Chapter 11 plan approved in a little over a month, saying its rural hospitals need to stay open for the sake of their communities.
The tort claimants committee in the PG&E Chapter 11 case is asking a California bankruptcy judge to reject the utility's proposal to route $4 million in fines through their settlement trust, saying the move would create a bad precedent.
Bankrupt discount retailer Fred's Inc. said Tuesday it has reached an agreement with its pharmaceutical wholesaler Cardinal Health Inc. over claims in its Chapter 11, with Cardinal set to recover a secured claim of $15 million.
The New York attorney general on Tuesday asked a bankruptcy court to resume discovery into the finances of the Sackler family, who owns Purdue Pharma LP, saying that her office has already unearthed important information about money transfers the family has made.
The London-based Jewish Chronicle — the world's oldest Jewish newspaper — announced Wednesday it is folding in the face of the COVID-19 crisis and beginning liquidation proceedings.
Cahill Gordon & Reindel LLP has decided to suspend its summer associate program for 2020 in response to the COVID-19 pandemic, the firm announced Tuesday though it says it will pay the associates who had been selected and will offer them full-time positions after graduation.
The Chapter 11 case of regional airline Ravn Air Group Inc. got off to a turbulent start Tuesday when lenders providing post-petition financing said their commitment to the loans was in doubt after a local Alaskan leader threatened to commandeer the debtor's air fleet.
A California judge overseeing Pacific Gas and Electric Co.'s bankruptcy declined Tuesday to approve a letter informing Northern California wildfire survivors that COVID-19 has hammered PG&E shares and reduced a $13.5 billion victims settlement fund, after a PG&E attorney slammed opposing counsel's "silly letter" as an effort to kill the deal.
International law firm Hogan Lovells announced Tuesday that it would offer its attorneys in other practice areas the opportunity to receive restructuring cross-training to assist the firm’s existing practice ahead of an anticipated rush of bankruptcy filings in the aftermath of the COVID-19 pandemic.
Puerto Rico's financial oversight board is saying the island's government broke the law guiding the territory’s restructuring when it made now-canceled deals for 1 million COVID-19 test kits without board permission.
The Delaware bankruptcy judge overseeing the Chapter 11 case of an Owens-Illinois spinoff on Tuesday moved a hearing on the appointment of an examiner and a representative for asbestos claimants back a month to buy time to work around COVID-19 lockdowns.
Tennessee-based Quorum Health Corp. filed for Chapter 11 protection Tuesday in Delaware with a plan in hand to continue operating in the midst of the COVID-19 pandemic, while slashing $500 million of debt from its balance sheet and injecting $200 million of new capital.
Most general counsel aren't yet scared about potential disruptions to their outside counsel services, even as law firms cut staff and pay to reduce the financial impact of COVID-19. But some say their feelings could change if their key lawyers become unavailable.
The government has pushed back on attorney Michael Avenatti’s request for temporary release from custody, saying despite the statements in his proposal regarding worsening conditions related to the coronavirus at his New York holding facility, he has ignored the minimum terms under which a California federal court would grant his bid.
The U.S. Supreme Court won't get to decide if it will hear a case brought by a litigation trustee seeking to claw back $177 million transferred from a tribe-owned casino in Detroit before it went bankrupt, with the parties telling the justices that they have agreed to end the dispute.
Out-of-court restructuring can be favorable to both distressed companies and creditors, and the Eighth Circuit bankruptcy appellate panel's recent decision in the case of Gas-Mart reassures parties that such workouts would be protected from 20/20 hindsight litigation, says attorney Richard Corbi.
While law firms suddenly pivoting to remote work due to coronavirus restrictions are busy dealing with logistical challenges, an equally pressing and perhaps more difficult task may be adjusting a long-standing brick-and-mortar culture to working remotely for the first time, say Heather Clauson Haughian and Grant Walsh at Culhane Meadows.
In response to COVID-19's impact on the automotive market and supply chain, suppliers should quickly develop and implement risk management strategies focusing on business continuity, but may also need to rethink the entire supply chain model, from sourcing of raw materials to production of finished products, say attorneys at Squire Patton.
Due to the disruption COVID-19 is causing in real estate markets, lenders face the risk of borrowers filing for commercial real estate reorganization despite the objections of a dissenting class, but lenders have opportunities to block such actions, say Steve Lichtenfeld and Jeff Marwil at Proskauer.
As the major market indexes free-fall because of pandemic fears, practitioners should be on alert for Ponzi schemes and up to speed on how to manage their fallout in coordination with various federal agencies, say attorneys Dennis Cohen and Marianne Recher.
As growth in health care spending creates lucrative opportunities, lenders can mitigate unique financing issues by considering traditional collateral during the underwriting process, maximizing security over government receivables, understanding their borrower's regulatory framework, and including transaction-specific representations and warranties in credit agreements, says David Wilhelmsen at Snell & Wilmer.
There is only one foolproof way to prevent the proxy abuses that have emerged in the appointment of Chapter 11 creditors committee members — conducting organizational meetings telephonically, as has been common during the COVID-19 crisis, says Edward Neiger at Ask LLP.
With many U.S. oil and gas producers, midstream companies and oil field service businesses struggling to survive the economic shocks from COVID-19 and the Saudi Arabia/Russia standoff, players in this space should be ready for counterparties to seek bankruptcy protection, say attorneys at Reed Smith.
As more courts begin to explore remote hearings during the COVID-19 crisis, attorneys and courts should be aware of some of the common concerns accompanying video- and teleconferencing technology and make allowances to avoid these issues, say Attison Barnes III and Krystal Swendsboe at Wiley Rein.
Mediator Jeff Kichaven has heard from several first-chair trial lawyers and senior claims executives that they are reluctant to adopt online video mediation even during the COVID-19 crisis, and says this reluctance is grounded in reality.
The formula for making decisions at BigLaw firms has historically been rooted in IQ-based factors, but with the ongoing pandemic, lawyers and firm leaders are increasingly dealing with issues that require emotional intelligence — from establishing effective virtual offices to retaining firm morale and client confidence, say Jolie Balido and Tina van der Ven at NewStar Media.
Judges have recently rebuked attorneys for wasting judicial resources to resolve minor issues during the COVID-19 crisis, including in a trademark lawsuit over unicorn drawings. But it is unfair to publicly flog lawyers for doing what they are trained to do, says Ronald Minkoff, chairman of Frankfurt Kurnit's professional responsibility group.
While we need to be physically apart at this time, lawyers and firms should be leaning into social media to reinforce and build relationships, and help guide clients through the coronavirus crisis, says marketing consultant Stefanie Marrone.
Recent Texas state court orders indicate judges are increasingly requiring parties and nonparties to submit to remote depositions amid the pandemic. However, there are inherent drawbacks to such depositions, including limitations on attorneys’ ability to assess witness credibility, says Edward Duffy at Reed Smith.
In this global health and economic crisis, it is essential that lawyers recommit to inclusion, and fight for colleagues, clients, community members and friends who are most at risk, says Dru Levasseur, head of the National LGBT Bar Association's inclusion coaching and consulting program.