Bankruptcy

  • March 05, 2021

    Garrett Motion Strikes Deal With Shareholders On Ch. 11 Plan

    Bankrupt car parts maker Garrett Motion Inc. told a New York bankruptcy judge Friday that it has reached a deal with a shareholder group to increase their share of the reorganized company in exchange for their support for the Chapter 11 plan.

  • March 05, 2021

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

    The past week in London has seen Scotland's ferry services sue its insurer, Britain's new high-speed rail service face another contract challenge and an ex-Qatari prime minister's company hit with a new suit. Here, Law360 looks at those and other new claims in the U.K.

  • March 04, 2021

    US Trustee Says Alpha Media Ch. 11 Plan Too Rushed

    The Office of the U.S. Trustee objected Thursday to the proposed Chapter 11 disclosure statement of radio station owner Alpha Media Holdings, telling a Virginia bankruptcy court that the plan doesn't provide enough time for parties to file objections.

  • March 04, 2021

    Insurer Can Resume Stock Overvaluation Suit Coverage Row

    A Michigan federal judge ruled on Thursday that Great American Fidelity Insurance Co. can restart its bid to dodge coverage of a lawsuit accusing advisory firm Stout Risius Ross of faulty stock valuations, reasoning that the stock suit has been reduced to just one claim that's ineligible for coverage.

  • March 04, 2021

    Alamo Drafthouse Gets OK To Tap $7M In DIP Funds

    Bankrupt movie theater chain Alamo Drafthouse Cinemas on Thursday got permission from a Delaware bankruptcy court judge to tap into the first $7 million of its Chapter 11 financing as it starts on the road to an asset sale it plans to close in May.

  • March 04, 2021

    Fieldwood Accused Of Trying To Duck Well Cleanup Cost

    Another former owner of bankrupt oil exploration company Fieldwood Energy LLC oil and gas leases has asked a Texas bankruptcy judge to reject the company's Chapter 11 plan disclosure, saying it is trying to foist off the expense of cleaning up abandoned wells.

  • March 04, 2021

    Bankruptcy Court's $1.2M Defective Tattoo Removal Suit Axed

    A California federal judge has reversed a bankruptcy court's decision to let an Australian woman sue U.S.-based cosmetics developer Rejuvi Laboratory in an Australian court over a defective tattoo removal product, ruling that the Australian court doesn't have jurisdiction.

  • March 04, 2021

    Virgin Sues US Train Operator For $250M For Dropping Name

    Virgin Enterprises is suing a U.S. train operator in London for more than $250 million in damages, accusing Brightline of using the COVID-19 pandemic to get out of trademark licensing deal early. 

  • March 03, 2021

    NY Jeweler Says Insurance Covers Mayor Donor's $6.3M Theft

    A New York jeweler said an AXA insurance affiliate has wrongfully refused to cover its loss after Jona Rechnitz, a disgraced former donor to New York Mayor Bill de Blasio, stole over $6.3 million worth of jewelry to pay off his "crippling" debt.

  • March 03, 2021

    Valaris Gets OK To Wipe $7B Debt With Stock Swap

    Offshore drilling contractor Valaris PLC got the go-ahead from a Texas bankruptcy judge Wednesday to equitize $7 billion in debt with a Chapter 11 plan the company's counsel described as a "total victory."

  • March 03, 2021

    Nursing Home Biz Cleared To Tap Into $5M Loan In Ch. 11

    Affiliates of nursing home business Consulate Health Care were cleared on Wednesday to tap into a $5 million post-petition loan as they move forward with plans to sell assets after being plunged into Chapter 11 in Delaware by a roughly $258 million False Claims Act judgment.

  • March 03, 2021

    J&J Blasts 'Tainted Process' In Imerys Ch. 11 Case

    Johnson & Johnson has told a Delaware bankruptcy court that talc supplier Imerys Talc America is engaging in unfair Chapter 11 maneuvers aimed at shielding its parent company from liability for talcum powder cancer claims and saddling the pharmaceutical giant with the bill.

  • March 03, 2021

    NY Gyms Settle AG Suit Over Pandemic Cancellations

    The New York attorney general announced Wednesday that she's reached a deal that could be worth $250,000 to end a suit accusing the former parent company of New York Sports Clubs and Lucille Roberts gyms of ripping off customers during the COVID-19 pandemic.

  • March 03, 2021

    Texas Power Co. Opens Ch. 11 Aiming To Seek Legislative Fix

    Texas power cooperative Brazos Electric told a bankruptcy judge Wednesday that it has retained one of the state's top lobbyists to pursue a legislative resolution to the billions of dollars in liabilities owed by Texas power companies in the aftermath of February's devastating winter storm.

  • March 03, 2021

    Faegre Drinker Hit With NJ Malpractice Suit Over A&P Deal

    Faegre Drinker Biddle & Reath LLP was hit with a legal malpractice suit by a developer alleging the firm didn't warn him about the risks of investing $2.2 million in an A&P supermarket property, only to have the grocery chain become insolvent and stop paying rent.

  • March 03, 2021

    Stationery Retailer Paper Source Blames COVID-19 For Ch. 11

    Artisanal stationery retailer Paper Source Inc. filed for Chapter 11 protection in Virginia, blaming the COVID-19 pandemic for a reversal of fortune that stalled its aggressive expansion strategy.

  • March 03, 2021

    Alamo Drafthouse Cinemas Hits Ch. 11 With Plans For Sale

    Movie theater chain Alamo Drafthouse Cinemas filed for Chapter 11 protection in Delaware bankruptcy court Wednesday with nearly $123 million in debt and a plan for a sale to a pair of investment firms, saying the strain of COVID-19 closures had become too great.

  • March 02, 2021

    ClubCorp Must Face Suit Over Fees Charged During Pandemic

    A California federal judge on Tuesday refused to toss or send to arbitration a suit claiming that ClubCorp USA Inc. wrongly forced thousands of private club members to continue paying membership fees during the pandemic, saying there was a factual dispute over whether the members were notified about any arbitration agreements.

  • March 02, 2021

    A One-Day Ch. 11 Turnaround? Belk Shows It Can Be Done

    In what the Texas judge presiding over the case called a "remarkable" achievement, southern department store chain Belk Inc. pulled off a rare one-day Chapter 11 restructuring following months of prepetition negotiations with stakeholders to avoid the costly disruptions common to retail bankruptcies.

  • March 02, 2021

    Renovate America Pushes Back Sale To Review Creditor Deal

    Bankrupt home improvement lender Renovate America Inc. got a Delaware judge's permission Tuesday to delay its sale hearing by a week so it can review a last-minute deal between the buyer and unsecured creditors over executive bonus clawbacks.

  • March 02, 2021

    Boy Scouts Propose $300M Sex Abuse Settlement Fund

    The Boy Scouts of America have submitted a Chapter 11 plan to the U.S. Bankruptcy Court in Delaware that would create a trust fund to pay sexual abuse claims against the organization with $300 million from its local branches.

  • March 02, 2021

    Hertz Ch. 11 Plan Puts Knighthead, Certares In Control

    Hertz Corp. submitted a plan Tuesday to exit Chapter 11 with a sale of up to $4.2 billion in equity to investment firms Knighthead Capital Management and Certares Opportunities LLC, which would together take control of the newly reorganized car rental company.

  • March 02, 2021

    Nursing Home Chain Opens Ch. 11 After $258M FCA Order

    Six nursing home business affiliates of Consulate Health Care sought Chapter 11 protection in Delaware late Monday, less than a month after a federal district court in Florida entered a nearly $258 million, treble damages False Claims Act judgment against the subsidiaries for issues dating to 2011.

  • March 01, 2021

    Former Directors Sued Over Failed Real Estate Investment Site

    Four former directors of bankrupt crowdfunded real estate investment platform RealtyShares were hit with a proposed securities class action in Massachusetts federal court that contends investors were misled about the robustness of due diligence conducted on a key developer. 

  • March 01, 2021

    2nd Circ. Told To Revive $620M Montgomery McCracken Suit

    The Second Circuit has been urged to revive a suit seeking $620 million from Montgomery McCracken Walker & Rhoads LLP for allegedly botched efforts to collect toxic tort damages, which a proposed class said belongs in state court.

Expert Analysis

  • Ethics Tips For Attorneys Telecommuting Across State Lines

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    Attorneys working remotely from jurisdictions in which they are not admitted should take precautionary steps to avoid engaging in unauthorized practice of law, say John Schmidt and Michael Seaman at Phillips Lytle.

  • 6 Ways Legal Employers Can Help Pandemic-Weary Parents

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    Parenting during the pandemic has introduced a series of competing personal and professional obligations for attorneys and professional staff, and even organizations that are supportive of their parent employees can take steps to do better, says Meredith Kahan at Saul Ewing.

  • Remote Working Tips For Lawyer Trainees And Their Firms

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    The prospect of joining a law firm during the pandemic can cause added pressure, but with a few good practices — and a little help from their firms and supervising attorneys — lawyer trainees can get ahead of the curve while working remotely, say William Morris and Ted Landray at King & Spalding.

  • Series

    Fixing Ch. 11 For Small Biz: SBRA's Puzzling Preference Edit

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    The Small Business Reorganization Act's seemingly straightforward amendment to the Bankruptcy Code, attempting to streamline preference litigation by requiring the trustee to consider parties' reasonably known defenses, actually raises a host of questions regarding due diligence and implications for other bankruptcy provisions, say Joel Cohen at Stout, and Robert Michaelson and Howard Magaliff at Rich Michaelson.

  • What Biden's Ethics Pledge Means For Gov't Revolving Door

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    Attorneys at Nossaman look at how President Joe Biden’s ethics pledge goes beyond those of his predecessors by imposing post-employment shadow lobbying and golden parachute restrictions on his administration’s appointees — and how a House bill proposing expansion of federal ethics law could affect enforcement.

  • Opinion

    Punishing Bar Exam Policies On Menstrual Products Must Go

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    Law graduates across the states are sitting for the grueling two-day bar exam this week despite menstruation-related barriers, such as inadequate menstrual product and bathroom access, which could be eradicated with simple policy tweaks, say law professors Elizabeth Cooper, Margaret Johnson and Marcy Karin.

  • It's Time For Law Firms To Start Loving And Leveraging Data

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    The volume and diversity of data managed by law firms today — from client files to internal financial records — may seem daunting, but when properly organized, good data can help practitioners stay competitive by providing sharper insight into firm resources and cost of work, say Jaron Luttich and Barry Wiggins at Element Standard.

  • Keys To Protecting Clients During Law Firm Dissolution

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    Whether a law firm dissolution is amicable or adversarial, departing attorneys should take steps to maintain their legal and ethical responsibilities toward clients, and beware client confidentiality pitfalls when joining new firms, say John Schmidt and Colin Fitzgerald at Phillips Lytle.

  • How Case Management Orders Can Support New Attorneys

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    Courts are leading the way in ensuring oral argument opportunities for newer attorneys by incorporating innovative language in a variety of orders, and private parties can and should follow suit by incorporating similar language into case management orders, say Megan Jones and Halli Spraggins at Hausfeld.

  • Lenders Must Watch Nursing Home COVID-19 Litigation

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    As long-term care facilities face increasing COVID-19 liability claims, lenders must monitor litigation against current and future borrowers, understand how to mitigate risk, and consider strategic restructuring and relief options, say Paige Tinkham and Kenneth Ottaviano at Blank Rome.

  • Opinion

    Fixing Ch. 11 For Small Biz: The SBRA Is Working As Intended

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    The Small Business Reorganization Act appears to be fulfilling its promise: Bankruptcy cases under the act are cheaper, more efficient and leading to more consensual reorganizations of eligible small businesses, say Robert Keach and Adam Prescott at Bernstein Shur.

  • An In-House Counsel's Guide To Better Work Management

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    Amid economic uncertainty and increasing pressure on corporate legal departments to do more with less, work management processes should be aimed at tracking legal teams' every contribution, including routine matters that can be reallocated to nonlegal staff, says Aaron Pierce at LexisNexis CounselLink.

  • Avoiding Materially Adverse Conflicts After New ABA Opinion

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    The American Bar Association's recent guidance on what constitutes materially adverse interests between clients makes clear that lawyers should not take comfort in a current representation just because a former client is not on the opposite side of the v., and those hoping to avoid disqualification should consider five steps, says Hilary Gerzhoy at Harris Wiltshire.

  • Potential Barriers To Health Care Provider Bankruptcies

    Excerpt from Practical Guidance
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    Medicare and Medicaid claims by government authorities can impede health care provider bankruptcies, as exemplified by the Ninth Circuit's Gardens Regional Hospital decision addressing whether amounts owed under Medicare and Medicaid provider agreements are subject to setoff or recoupment in bankruptcy, say Mark Cody and Mark Douglas at Jones Day.

  • Rebuttal

    US Legal System Can Benefit From Nonlawyer Ownership

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    Contrary to claims made in a recent Law360 guest article, nonlawyer ownership has incrementally improved the England and Wales legal system — with more innovation and more opportunities for lawyers — and there is no reason why those outcomes cannot also be achieved in the U.S., say Crispin Passmore at Passmore Consulting and Zachariah DeMeola at the University of Denver.

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