Bankruptcy

  • March 14, 2024

    72-Year Weil Alum, 'True Visionary' Corporate Atty Dies At 97

    Ira M. Millstein, the legendary Weil Gotshal & Manges LLP senior partner who helped save New York City from bankruptcy in the 1970s and used his bipartisan connections to help smooth Ruth Bader Ginsburg's path to the federal judiciary, has died, the firm said Thursday.

  • March 14, 2024

    PE Firm Riverspan Agrees To Pay $32M For Barretts' Assets

    Barretts Minerals Inc. told a Texas bankruptcy court Thursday that a unit of private equity firm Riverspan Partners had won an auction for its assets with a $32 million cash offer, money that the talc-mining company intends to use to fund a settlement trust for alleged victims of asbestos exposure. 

  • March 14, 2024

    Near Intelligence's Ch. 11 Plan Gets Court's Approval

    A Delaware bankruptcy judge on Thursday confirmed consumer data platform Near Intelligence's Chapter 11 plan, which went through without objection after negotiations resolved outstanding concerns.

  • March 14, 2024

    Ex-Real Estate Exec Accused Of $77M WeWork Stock Fraud

    Manhattan federal prosecutors announced Thursday that the former CEO of real estate investment firm ArciTerra was indicted, alleging he issued a bogus $77 million offer for WeWork shares in an ultimately failed attempt to cash in on call options after juicing the stock price.

  • March 14, 2024

    US Trustee Knocks Plan To Shield Swiss Firm In Kwok Ch. 11

    The Office of the U.S. Trustee has criticized the planned terms of appointment for Prager Dreifuss AG as Swiss counsel to the Chapter 11 trustee overseeing the bankruptcy of Chinese exile Ho Wan Kwok, saying the proposed limitations on the firm's liability and expense reimbursement process are not up to snuff.

  • March 14, 2024

    Wash. Real Estate Co.'s Ch 11 Plan OK'd After Judgment Slashed

    Washington state-based commercial and residential real estate company High Valley Investments LLC 's Chapter 11 plan received a Delaware bankruptcy judge's blessing Thursday after a settlement agreement slashed a $47.4 million judgment against it to an $18 million claim.

  • March 14, 2024

    Camshaft Facing Daily Fine, Manager's Arrest In Byju's Ch. 11

    A Delaware bankruptcy judge hit hedge fund Camshaft Capital Fund with $10,000 in daily fines Thursday until it discloses information about the whereabouts of $533 million transferred out of bankrupt tech company Byju's, and ordered the arrest of Camshaft's sole officer for not appearing in court as directed.

  • March 14, 2024

    Podcast Network Hits Ch. 11 With Millions In Creator Claims

    Podcast network Kast Media has filed for Chapter 11 protection in California bankruptcy court with nearly $6.4 million in debt and more than $3 million in claims from its podcasters.

  • March 14, 2024

    Court Urged To Give Sullivan & Cromwell $31M For FTX Work

    A Delaware bankruptcy judge should give Sullivan & Cromwell LLP about $31 million in fees for its work in FTX Trading Ltd.'s case from August through October 2023, the Chapter 11 fee examiner said.

  • March 13, 2024

    Genesis, Gemini Can't Ax SEC Suit Over Crypto Loan Program

    A New York federal judge refused Wednesday to toss the U.S. Securities and Exchange Commission's allegations that crypto exchange Gemini Trust Co. and bankrupt crypto lender Genesis Global Capital LLC violated securities laws by running the now-defunct investment program Gemini Earn that sold alleged unregistered securities.

  • March 13, 2024

    Hospital Operator Defends Releases In Ch. 11 Plan

    California-based hospital operator Alecto Healthcare Services LLC asked a Delaware bankruptcy judge Wednesday to approve its small business Chapter 11 reorganization, saying it is not leaving money on the table by releasing potential clawback claims.

  • March 13, 2024

    Judge Says Air Purifier Co. Risks $13M Claim Without Counsel

    A Florida bankruptcy judge on Wednesday told an Israel-based maker of air purification systems that it has three weeks to hire a new attorney and comply with discovery demands or its $12.8 million claim against the bankrupt Molekule Inc. will be stricken.

  • March 13, 2024

    NYC Condo Developer's Ch. 11 Liquidation Plan Gets OK

    A Delaware bankruptcy judge on Wednesday approved the Chapter 11 liquidation plan of 540 West 21st St. Holdings LLC, the developer of a scrapped luxury condo project in New York City's West Chelsea neighborhood, overruling an objection from the managers of a neighboring building.

  • March 13, 2024

    Patriots Owner Flags $2M Lien On 'Useless' Skydiving Facility

    The real estate business of New England Patriots owner Bob Kraft asked a Massachusetts judge to discharge a $2 million mechanic's lien on a defunct indoor wind tunnel and skydiving attraction at a shopping center next to the football team's stadium.

  • March 13, 2024

    Wood Pellet Maker Enviva Hits Ch. 11 With Over $1B Debt

    Enviva, the world's largest producer of industrial wood pellets, has filed for Chapter 11 protection in Virginia bankruptcy court with a plan to cut its debt load by $1 billion, months after it reported hundreds of millions in losses after a faulty bet on future prices of the energy source.

  • March 12, 2024

    Terraform Can Retain Dentons In Ch. 11, Firm Will Return $48M

    Terraform Labs can hire Dentons US LLP as its special counsel in its Chapter 11 case, a Delaware federal bankruptcy judge ruled Tuesday, with the firm agreeing to return $48 million of a $70 million retainer that was hit with objections.

  • March 12, 2024

    Retired Judge, 2 Trustees To Handle Conn. Clergy Abuse Claims

    A Connecticut bankruptcy judge has appointed Salvatore C. Agati, a retired Connecticut Superior Court judge and current partner at Carmody Torrance Sandak & Hennessey LLP, one of the Constitution State's largest law firms, to review abuse claims against the bankrupt Norwich Roman Catholic Diocesan Corp. of eastern Connecticut.

  • March 12, 2024

    Breast Implant Co.'s $90M DIP OK'd With Creditor Protections

    Bankrupt breast implant maker Sientra Inc. received final court approval in Delaware bankruptcy court for its $90 million debtor-in-possession financing after adding in lien challenge protections for unsecured creditors.

  • March 12, 2024

    Sorrento Ch. 11 Will Stay In Texas

    A Texas bankruptcy judge Tuesday denied requests to transfer the Chapter 11 case of drug developer Sorrento Therapeutics Inc. out of the Lone Star State for having insufficient ties to the venue.

  • March 12, 2024

    Judge OKs Ch. 7 Liquidation For Reverse Mortgage Co.

    A Delaware bankruptcy judge Tuesday converted Reverse Mortgage Investment Trust Inc.'s Chapter 11 case to a Chapter 7 liquidation, saying the debtor's plan administrator's request for conversion has "good and sufficient cause" under the Bankruptcy Code.

  • March 12, 2024

    Detroit Retirees Appeal Pension Gap Funding Pause

    Detroit's retired police and firefighters are appealing a ruling that allowed the city to continue pausing its pension gap funding payments, asking a Michigan federal court to reverse a bankruptcy judge's decision that extended a decade-long funding reprieve to 30 years.

  • March 12, 2024

    Ex-Boy Scout Can Seek $120M Award From Insurers

    A Delaware bankruptcy judge has ruled that a former Boy Scout can keep suing the organization's insurers to collect a $120 million abuse judgment against his ex-Scoutmaster, even though the court entered an injunction barring similar lawsuits.

  • March 12, 2024

    Trustee Claims MV Realty Used Ch. 11 To Dodge State Actions

    The U.S. trustee in the Chapter 11 bankruptcy of MV Realty argued on Tuesday that a Florida federal judge should dismiss or convert the case, alleging that the real estate company is simply using the action to stall state prosecutors and rack up fees against homeowners instead of reorganizing.

  • March 12, 2024

    Ex-Bankruptcy Judge Cites Judicial Immunity To Escape Suit

    Former Texas bankruptcy judge David R. Jones — whose failure to disclose a romantic relationship with an ex-Jackson Walker LLP attorney ignited a major judicial ethics scandal — has moved to dismiss a disgruntled investor's suit that claims Jones gave a Jackson Walker client preferential treatment during its Chapter 11 case, citing judicial immunity.

  • March 11, 2024

    Judge OKs Eye Care Tech Co.'s $8M DIP Request

    A Texas bankruptcy judge on Monday approved optometry software company Eye Care Leaders Portfolio Holdings LLC's request to draw on the remainder of its $8 million in debtor-in-possession funds for its Chapter 11 case, saying the company had given good reason to believe it was poised for a rewarding auction.

Expert Analysis

  • How Lease Obligations Can Affect Subchapter V Debt Cap

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    Two recent bankruptcy rulings in the Eastern District of Virginia and the Southern District of New York take opposite positions on whether unmatured lease obligations are considered noncontingent debt for the purposes of calculating debtors' Subchapter V eligibility, say Joseph Orbach and Henry Thomas at Thompson Coburn.

  • NY CRE Lenders Need Clarity On Foreclosure Standing

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    Recent contradictory New York case law regarding issues of standing in commercial real estate litigation creates confusion for borrowers and lenders alike, and should be addressed by courts in advance of the anticipated onslaught of commercial mortgage-backed securities foreclosures, say Christopher Gorman and John Muldoon at Rosenberg & Estis.

  • Series

    Baking Bread Makes Me A Better Lawyer

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    After many years practicing law, and a few years baking bread, I have learned that there are a few keys to success in both endeavors, including the assembly of a nourishing and resilient culture, and the ability to learn from failure and exercise patience, says Rick Robinson at Reed Smith.

  • Federal Courts And AI Standing Orders: Safety Or Overkill?

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    Several district court judges have issued standing orders regulating the use of artificial intelligence in their courts, but courts should consider following ordinary notice and comment procedures before implementing sweeping mandates that could be unnecessarily burdensome and counterproductive, say attorneys at Curtis.

  • Bill Could Pave Path To 'Safer' Banking For Cannabis Industry

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    The Secure and Fair Enforcement Regulation, or SAFER, Banking Act, which was recently passed by a U.S. Senate committee, creates potential for financial inclusion of legally operating cannabis businesses and could promote recognition of the disconnect between federal laws and services unavailable to the industry, says Mark Bell at Stinson.

  • 7 E-Discovery Predictions For 2024 And Beyond

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    The legal and technical issues of e-discovery now affect virtually every lawsuit, and in the year to come, practitioners can expect practices and policies to evolve in a number of ways, from the expanded use of relevancy redactions to mandated information security provisions in protective orders, say attorneys at Littler.

  • 5 Litigation Funding Trends To Note In 2024

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    Over the next year and beyond, litigation funding will continue to evolve in ways that affect attorneys and the larger litigation landscape, from the growth of a secondary market for funded claims, to rising interest rates restricting the availability of capital, says Jeffery Lula at GLS Capital.

  • Key Issues When Navigating A Tenant's Bankruptcy

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    In light of recent Chapter 11 filings by Rite Aid and WeWork — companies with thousands of commercial leases — practitioners should review issues that can arise when bankruptcy is used to exit a lease, including the consequences of lease rejection and the statutory cap on landlord damage claims for a rejected lease, say attorneys at Proskauer.

  • Fed. Circ. Ruling Seemingly Offers PTAB Deadline Immunity

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    The Federal Circuit's recent Purdue Pharma v. Collegium Pharmaceutical Inc. decision that the Patent Trial and Appeal Board had authority to issue a final written decision in a post grant review after the prescribed statutory deadline underscores how courts should consider the overall objective of the statutory scheme when balancing the classic conflict between bright-line rules and flexible standards, says Matthew Dowd at Dowd Sheffel.

  • Securing Financial Transparency In Chapter 11 Reporting

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    As we enter the new year, restructuring professionals would be wise to review Chapter 11 public reporting requirements to navigate what debtors may do to try to minimize public reporting, and what creditors can do to get the public reporting they deserve by striking a balance between financial transparency requirements and tactical moves, say Thomas Moers Mayer and Nancy Bello at Kramer Levin.

  • 4 Legal Ethics Considerations For The New Year

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    As attorneys and clients reset for a new year, now is a good time to take a step back and review some core ethical issues that attorneys should keep front of mind in 2024, including approaching generative artificial intelligence with caution and care, and avoiding pitfalls in outside counsel guidelines, say attorneys at HWG.

  • Securities Question Stands After Contradicting Crypto Rulings

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    The debate about the regulation of crypto-assets came to a head in 2023 when two New York federal judges came to opposite conclusions about whether crypto-assets were securities by using the Howey test, highlighting the uncertainty facing the crypto industry as it seeks to resolve definitional questions, say attorneys at Ballard Spahr.

  • What The Law Firm Of The Future Will Look Like

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    As the legal landscape shifts, it’s become increasingly clear that the BigLaw business model must adapt in four key ways to remain viable, from fostering workplace flexibility to embracing technology, say Kevin Henderson and Eric Pacifici at SMB Law Group.

  • 4 PR Pointers When Your Case Is In The News

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    Media coverage of new lawsuits exploded last year, demonstrating why defense attorneys should devise a public relations plan that complements their legal strategy, incorporating several objectives to balance ethical obligations and advocacy, say Nathan Burchfiel at Pinkston and Ryan June at Castañeda + Heidelman.

  • 3 Pointers From Tilton Case To Help Win Advancement Suits

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    The Delaware Superior Court’s refusal to let Lynn Tilton sue her advancers for legal fees, ruling she had not yet attempted to negotiate in good faith, suggests that policyholders may fare better if they attempt proactive strategies to narrow disputes over advancement agreements before taking their insurers to court, says Evan Bolla at Harris St. Laurent.

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