Bankruptcy

  • November 21, 2019

    Creditors Balk At Emerge Energy's Ch. 11 Extension Bid

    Unsecured creditors of Emerge Energy Services LP told the Delaware court Thursday that the bankrupt fracking sand miner should not have extended time to get its Chapter 11 plan approved or possibly seek an alternative plan, complaining they continue to be left out of the process.

  • November 21, 2019

    Insys Reaches Creditor Deal For Tiered Ch. 11 Recoveries

    Bankrupt opioid maker Insys Therapeutics Inc. told a Delaware bankruptcy judge Thursday that negotiations over the past week had resulted in a deal with its creditors on a Chapter 11 plan that will provide tiered recoveries to claimants in different classes.

  • November 21, 2019

    No Speedy Victory For Either Side In Pa. Payday Lending Suit

    Neither the Pennsylvania Attorney General’s Office nor the two parties left in its suit over illicit payday loans can resolve claims early in their favor, according to a Pennsylvania federal judge who said that too many disputed issues remained to end the litigation.

  • November 21, 2019

    Fox Rothschild Adds Litigator To Bankruptcy Group In Miami

    Fox Rothschild LLP is giving its Miami office a boost by adding a noted litigator from Genovese Joblove & Battista PA as a partner in its financial restructuring and bankruptcy department.

  • November 21, 2019

    Bumble Bee Foods Hits Ch. 11 With $925M Bid In Hand

    Canned seafood producer Bumble Bee Foods LLC hit Chapter 11 Thursday afternoon in Delaware with a deal to sell its assets for $925 million and blaming its financial troubles on the fallout from a price-fixing scheme that led to criminal fines and civil lawsuits.

  • November 21, 2019

    Investors Urge 5th Circ. To Revive Ponzi Claims Against SEI

    A group of investors in Robert Allen Stanford's massive Ponzi scheme are asking the Fifth Circuit to revive their claim that investment processor SEI Investments Co. could have provided them with the information they needed to avoid the scheme's collapse.

  • November 21, 2019

    NY Ride-Hailing Co. Secures $1M In Ch. 11 Financing

    Bankrupt ride-hailing service Juno USA LP received permission Thursday from a Delaware judge to access $1 million in post-petition financing as it pursues a wind-down of its American operations.

  • November 21, 2019

    FERC Has A Role In PG&E Bankruptcy, 9th Circ. Told

    A California bankruptcy judge had no right to rule that the Federal Energy Regulatory Commission doesn't have a say in whether Pacific Gas and Electric Co. can ditch power purchase agreements in Chapter 11, the agency told the Ninth Circuit.

  • November 20, 2019

    Murray Energy Lenders Sue To Undo Prepetition Refinancing

    Term loan lenders that provided $2 billion in loans to bankrupt coal producer Murray Energy filed an adversary complaint Wednesday in Ohio court seeking to unwind a prepetition refinancing transaction that improved the lien priority of certain lenders while leaving others behind.

  • November 20, 2019

    Avenue Stores Lender Backs Converting Case To Chapter 7

    A lender to insolvent retail chain Avenue Stores Inc. told a Delaware court Wednesday the company's bankruptcy case should be converted to a Chapter 7, saying the move would expose what it said were baseless claims against it by Avenue Stores' unsecured creditors.

  • November 20, 2019

    Woodbridge Ch. 11 Trustee OK'd For Shapiro Prison Interview

    A Delaware bankruptcy judge on Wednesday approved efforts to conduct an in-prison interview of convicted $1.3 billion Ponzi-scheme architect Robert Shapiro by a liquidating trustee pursuing assets for the estate of Shapiro's plundered Woodbridge Group of Cos.

  • November 20, 2019

    PR Law Firm Execs Can't Arbitrate Bankruptcy Claims

    A Puerto Rican federal judge has rejected an attempt by the former directors of a bankrupt law firm to move mismanagement claims against them into arbitration, saying the arbitration clause in the firm bylaws can’t stop the Chapter 7 trustee from taking her claims to court.

  • November 20, 2019

    Dropbox Can't Stop Rival's Ch. 11 Plan, 5th Circ. Says

    Dropbox can’t blow up rival Thru Inc.’s Chapter 11 plan, despite claims it was conceived in exactly the sort of blatant bad faith that led to the $2.3 million award that bankrupted Thru in the first place, the Fifth Circuit has found.

  • November 20, 2019

    FTD Seeks Court Approval For Pension Plan Settlement

    Flower and gift retailer FTD Cos. Inc. is asking a Delaware bankruptcy court to approve a settlement with the federal Pension Benefit Guaranty Corp. to resolve nearly $1.8 million in alleged retirement benefits liability.

  • November 19, 2019

    PG&E Says Private Ownership Saves It From Wildfire Liability

    Facing billions of dollars in wildfire liability, Pacific Gas & Electric Corp. urged a U.S. bankruptcy judge in San Francisco on Tuesday to find that it's not on the hook under the state's inverse condemnation doctrine because it's investor-owned rather than a public entity.

  • November 19, 2019

    Disney Fights To Keep $62.4M Jury Verdict Against VidAngel

    Disney is urging a California federal court to leave in place a $62.4 million jury verdict it won in a copyright lawsuit against VidAngel, saying the now-bankrupt streaming service's bid for a new trial is "meritless" and should be denied.

  • November 19, 2019

    NY Ride-Hailing Co. Files For Ch. 11, Shuts Down Operations

    New York-based ride-hailing company Juno USA LP filed for Chapter 11 protection Tuesday, less than 24 hours after it shut down its operations and blamed new, burdensome regulations imposed by New York City for its financial troubles.

  • November 19, 2019

    Pilot Can Sue Bankrupt OneJet Over Nauseating Jet Exhaust

    The federal bankruptcy court overseeing the dissolution of defunct airline OneJet gave the go-ahead Monday for an ex-pilot to sue the company over alleged maintenance issues that he said caused two jets' cabins to fill with sickening exhaust and carbon monoxide.

  • November 19, 2019

    Purdue Gets OK To Pay States' Costs In Opioid-Related Ch. 11

    A New York bankruptcy judge on Tuesday gave Purdue Pharma permission to pay the expenses of state governments participating in a settlement of claims related to Purdue’s role in the opioid epidemic.

  • November 19, 2019

    Central Grocers Ch. 7 Trustee Hits Directors With $80M Suit

    A bankruptcy trustee for Central Grocers Inc. sued its former directors in Illinois federal court Tuesday, accusing them of breaching their fiduciary duty in a "fundamental misalignment of interests" to benefit their own stores and seeking at least $80 million in damages.

  • November 19, 2019

    True Health Ch. 11 Plan Draws Feds' Fire Over CMS Claims

    The Justice Department objected late Monday to True Health Group LLC's Chapter 11 plan, claiming it's missing details about how to handle reimbursing the Centers for Medicare & Medicaid Services if the debtor loses its Chapter 11 suit challenging federal reimbursement holdbacks in a fraudulent billing suit.

  • November 19, 2019

    Texas Gas Driller Gets OK To Tap Into $41M Ch. 11 Loan

    West Texas oil and gas driller Approach Resources Inc. received permission from a Houston bankruptcy judge Tuesday to tap into a portion of its $41.25 million in post-petition financing as its pursues an asset sale process.

  • November 19, 2019

    No Punitive Damages For GM For Faulty Switches: 2nd Circ.

    The Second Circuit on Tuesday ruled that General Motors LLC is not liable for punitive damages stemming from its pre-bankruptcy predecessor's conduct, ending claims by customers who say they were harmed by faulty ignition switches in incidents that occurred after GM's reorganization.

  • November 19, 2019

    LeClairRyan Partner Can Sue Insurers For Gender Bias Claims

    A former LeClairRyan partner who sued the defunct firm for gender discrimination years ago can now attempt to collect on an $885,000 arbitration award by pursuing its insurers, a Virginia bankruptcy judge has ruled.

  • November 18, 2019

    PG&E's Delays Over 'Mystery' Atty-Client Privilege Irk Judge

    A California federal judge slammed Pacific Gas and Electric Co.'s attorneys Monday for taking too long to produce documents to Northern California wildfire victims, saying PG&E is holding up production unnecessarily to “triple check” documents for confidentiality and “mystery attorney-client privilege.”

Expert Analysis

  • Secured Creditor Duties Ripe For High Court Consideration

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    If certiorari is granted in the Seventh Circuit's Chicago v. Fulton case, the U.S. Supreme Court will have the opportunity to resolve the growing circuit split over the Bankruptcy Code’s automatic stay on creditors concerning turnover of a debtor’s impounded vehicle, say Alexandra Dugan and Elizabeth Brusa of Bradley Arant.

  • Warren Bill Presents Powerful Headwinds For Private Equity

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    If passed, Sen. Elizabeth Warren's private equity reform bill would protect companies being purchased by private equity, but impose significant restrictions on funds by eliminating the liability shield and favorable tax treatment they currently enjoy, say Jon Brose and Kevin Neubauer at Seward & Kissel.

  • How To Hire Lateral Partners More Effectively

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    Although lateral partner hiring is the preferred method of inorganic growth among law firms, the traditional approach to vetting does not employ sufficient due diligence by the hiring firm, says Michael Ellenhorn at executive search firm Decipher Competitive Intelligence.

  • Highland Filing Shows Benefits Of Ch. 11 For Hedge Funds

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    Highland Capital Management's Chapter 11 filing last month illustrates how a bankruptcy filing can provide additional advantages when investors are not a hedge fund’s only creditors, as in the aftermath of fraud allegations or market dislocations, say attorneys at Cleary. 

  • Texas Could Take Page From Mass.'s Judicial Selection Book

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    As Texas and other states review their judicial election processes, they would be well served by taking guidance from Massachusetts' Governor’s Council system, which protects the judiciary from the hazards of campaigning, says Richard Baker of New England Intellectual Property.

  • Series

    Judging A Book: McKeown Reviews 'Conversations With RBG'

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    Reading Jeffrey Rosen’s "Conversations With RBG: Ruth Bader Ginsburg on Life, Love, Liberty, and Law" is like eavesdropping on the author and his subject while they discuss how the restrained judicial minimalist became the fiery leader of the opposition, says Ninth Circuit Judge M. Margaret McKeown.

  • Opinion

    Flat-Fee Legal Billing Can Liberate Attorneys

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    Replacing hourly billing with flat-fee arrangements, especially for appellate work, will leave attorneys feeling free to spend as much time as necessary to produce their highest quality work, says Lawrence Ebner of Capital Appellate Advocacy.

  • Spoliation Rule Remains Ambiguous Despite Amendments

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    Although the Federal Rules of Civil Procedure were amended to provide a uniform standard of culpability for spoliation, cases with similar facts are still reaching differing results because the rule does not specify how a court should evaluate a party's intent, say attorneys at Pepper Hamilton.

  • 5 Trends Influencing RFPs For Law Firms

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    Requests for proposals, the standard tool of companies evaluating law firms, are becoming better suited to the legal industry, says Matthew Prinn of RFP Advisory Group.

  • Private Equity Wants To Buy Your Asbestos Liabilities

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    BorgWarner's deal to sell off its asbestos liabilities this week confirms that such sales are a viable corporate strategy that can be less expensive than, and offer disclosure advantages over, prepackaged bankruptcy and loss portfolio insurance. But they still come with a cost, and can raise trust and security issues, says Stephen Hoke of Hoke LLC.

  • Series

    Why I Became A Lawyer: Being There For Families In Trouble

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    My parents' contentious, drawn-out divorce was one of the worst experiences of my life. But it taught me how to be resilient — and ultimately led me to leave corporate litigation for a career in family law, helping other families during their own difficult times, says Sheryl Seiden of Seiden Family Law.

  • A Hard Choice Ahead For Sears Ch. 11 Creditors

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    After last week's written order confirming the Sears bankruptcy joint plan, the company's creditors should expect to receive preference complaints and may want to review their defenses ahead of the Nov. 18 opt-in deadline to avoid an unfavorable settlement due to lack of time, say Ronald Spinner and Marc Swanson of Miller Canfield.

  • Where Law Firm Partners Go When Changing Jobs

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    We reviewed 177 law firm partners' job changes from the last seven years and discovered some migration patterns and gender dynamics, say James Bailey of the George Washington University School of Business and Jane Azzinaro of Cognizant.

  • Consumer Protection Issues For Single-Family Rental Market

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    As institutional appetite for single-family rental properties surges, investor landlords need to understand the applicable consumer protection laws — including a new series of fair housing bills — to manage their legal risk amid increasing scrutiny, say attorneys with King & Spalding.

  • 3 Ways To Leverage Vulnerability For Lawyer Well-Being

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    Admitting to imperfection is an elusive construct in the legal industry, but addressing this roadblock by capitalizing on vulnerabilities can increase personal and professional power, says life coach and attorney Julie Krolczyk.