Bankruptcy

  • February 22, 2024

    Carnegie Must Pay Fees For 'Unreasonable' Diamond IP Suit

    A New York federal judge ruled Wednesday that Carnegie Institute of Washington and its bankrupt former patent licensee M7D Corp. are jointly and severally liable for paying Fenix Diamond LLC's attorney fees and nontaxable expenses for pursuing their "objectively unreasonable" infringement suit for years.

  • February 22, 2024

    Almond Grower's Early Ch. 11 Motions Get Wary OK

    A California bankruptcy judge gave cautious approval to a series of first day motions in the Chapter 11 case of almond grower Trinitas Farming LLC Thursday, saying he was wary of green lighting an interim debtor-in-possession order before a final credit agreement or a committee of unsecured creditors is in place.

  • February 22, 2024

    US Can't Appeal Order To Give Avenatti's Tax Info To Trustee

    A California federal judge declined Wednesday to allow the U.S. to appeal a bankruptcy court's decision ordering Michael Avenatti's tax returns to be released to the trustee overseeing the estate of Eagan Avenatti LLP's bankruptcy, finding the decision to be unappealable, and Avenatti himself hasn't objected to the disclosure.

  • February 22, 2024

    Vesttoo Liquidation Delayed For Closer Look At Creditor Deals

    A Delaware bankruptcy judge on Thursday postponed deciding the fate of Israeli financial technology firm Vesttoo Ltd.'s liquidation plan until early next week to give the remaining objector to the proposal time to review settlements the debtor reached with prior challengers.

  • February 22, 2024

    Kwok Owed Records About CCP Targeting, Judge Says

    A New York federal judge ordered the Justice Department to hand over evidence it possessed of the Chinese Communist Party's targeting of bankrupt and jailed Chinese exile Ho Wan Kwok, but didn't require the government to hand over other evidence sought by Kwok about Chinese government targeting of his alleged victims.

  • February 22, 2024

    Sorrento Says US Trustee's Protest Of Texas Venue Off Base

    Sorrento Therapeutics Inc. told a Texas bankruptcy court the company's choice to bring a Chapter 11 in the Lone Star State was sound, so the court should ignore a call from the U.S. Trustee's Office to trash or relocate the case.

  • February 22, 2024

    FTX Can Cash Out $500M Investment In AI Biz To Fund Ch. 11

    Insolvent cryptocurrency exchange FTX Trading Ltd. received a Delaware bankruptcy judge's approval Thursday to sell off its equity stake in an artificial intelligence technology company launched by former members of OpenAI that FTX purchased for $500 million in 2021.

  • February 22, 2024

    Longshore Union To Exit Bankruptcy With $20M Settlement

    A California bankruptcy judge Thursday approved the International Longshore and Warehouse Union's request to dismiss its own bankruptcy after okaying the union's settlement of a long-running legal dispute with a shipping company that had driven it into insolvency

  • February 22, 2024

    Yellow Corp. Landlord Says Time's Up For Ch. 11 Lease Sales

    A landlord of Yellow Corp. has asked a Delaware bankruptcy judge to reject the insolvent trucking company's request for two more years to find buyers for its remaining truck terminal leases, arguing it already had sufficient time to solicit bidders and must decide now whether to accept or reject the rental agreements.

  • February 22, 2024

    Instant Brands Ch. 11 Plan Gets OK After Win In Supplier Row

    A Texas bankruptcy judge on Thursday gave tentative approval to home-appliance maker Instant Brands' reorganization plan after finding that recent briefings from the company and a supplier supported his preliminary decision last week to preserve the debtor's indemnification rights.

  • February 22, 2024

    Full Supreme Court Won't Halt Boy Scouts' Ch. 11 Plan

    The full U.S. Supreme Court on Thursday shot down an appeal that had prompted Justice Samuel Alito to briefly halt the Boy Scouts of America's bankruptcy and had thrown its Chapter 11 plan into temporary disarray.

  • February 21, 2024

    Former Texas Atty Gets 50 Years For 'Ponzi-Type' Client Fraud

    A Texas federal judge sentenced a former San Antonio lawyer to 50 years in prison after he pled guilty to mishandling millions in client funds to support his "extravagant lifestyle," the U.S. Attorney's Office for the Western District of Texas said in a statement Wednesday.

  • February 21, 2024

    NY Judges Question Lehman's Bid To Undo CDS Trial Loss

    A panel of New York appeals court judges on Wednesday appeared reluctant to undo a bench trial loss Lehman Bros.' bankrupt European unit suffered last year in a suit attempting to clawback nearly half a billion dollars from Assured Guaranty over alleged losses on credit default swaps tied to the 2008 financial crisis.

  • February 21, 2024

    Genesis Creditors Seek At Least $45M Out Of Ch. 11 Plan

    Two of Genesis Global's prepetition lenders have asked a New York bankruptcy court to guarantee they'll receive a minimum of $45 million for their claims should the cryptocurrency lender enact a Chapter 11 plan, saying that at present, they might not be repaid until after resolving a complex dispute over fees.

  • February 21, 2024

    Peer Street Needs To Revise Ch. 11 Disclosures, Judge Says

    A Delaware bankruptcy judge sent crowd-funded real estate investment platform Peer Street Inc.'s disclosure statement back to the drawing board on Wednesday, telling the company that it needed to add more details and understandable language amid outcry from some small investors who wanted to convert the Chapter 11 bankruptcy to a liquidation.

  • February 21, 2024

    NH Power Plant Can Reject Electric Purchase Deal In Ch. 11

    Bankrupt electricity generating station Burgess Biopower LLC received court approval Wednesday from a Delaware judge to reject a power purchase agreement with a party the debtor claims was withholding payments and creating a financial situation where the station was in danger of shutting down permanently.

  • February 21, 2024

    5th Circ. Affirms Subrogation Loss In Fieldwood Energy Sale

    The Fifth Circuit has ruled that a group of insurers that issued surety bonds to bankrupt Fieldwood Energy in a sale of its assets are not entitled to subrogation rights because the bankruptcy court's order stripping their rights could not be challenged under Section 363 of the Bankruptcy Code, a protection that limits appellate review of an approved sale.

  • February 21, 2024

    Lenders Seek To Toss NYC Condo Building's 'Bad Faith' Ch. 11

    Lenders to bankrupt New York City condominium complex Hudson 888 Owner moved on Wednesday to dismiss the Chapter 11 case, saying it was filed "in bad faith" as an attempt to duck litigation.

  • February 21, 2024

    Rite Aid Gets OK To End Former Queens Store Lease

    Rite Aid Corp. was given permission Wednesday to reject a lease and sublease for a former store in Queens, New York, after a New Jersey bankruptcy judge found that doing so would benefit the debtor's estate.

  • February 21, 2024

    Appliance Parts Maker Can Mediate Creditor Suits In Ch. 11

    A Texas bankruptcy judge on Wednesday granted an appliance components producer's request in its Chapter 11 case to engage in mediation with Invesco, a lender group and other parties to address "significant issues" tied to two lawsuits brought against the company last year.

  • February 21, 2024

    Consumer Data Co. Gets OK For $50M Ch. 11 Sale

    A Delaware bankruptcy judge Wednesday approved the $50 million sale of Near Intelligence after being told that unsecured creditors' objections to the California-based consumer data gathering platform's Chapter 11 plan had been resolved.

  • February 21, 2024

    NY Court Weighs Greenlighting Celsius Ch. 11 Suits

    A New York bankruptcy judge on Wednesday considered whether to hear two lawsuits filed in the Chapter 11 case of former cryptocurrency platform Celsius Network LLC, or if the complaints involving an account holder and a digital asset mining company should be dismissed or sent to arbitration.

  • February 21, 2024

    Bankman-Fried Gets New Attys After Waiving Crypto Conflict

    A Manhattan federal judge signed off Wednesday on Sam Bankman-Fried's choice of new counsel ahead of his fraud sentencing, despite the fact that the convicted FTX founder's new team represents an indicted ex-crypto CEO whose interests may conflict with his own.

  • February 21, 2024

    IMedia Gets OK For Ch. 11 Liquidation Plan

    A Delaware bankruptcy judge on Wednesday approved home shopping business iMedia Brands' liquidation plan after hearing objections from unsecured creditors and others had been resolved.

  • February 21, 2024

    Cruise Line Hornblower Hits Ch. 11 With Over $1B Debt

    Cruise line and ferry service Hornblower Group Inc. and affiliates on Wednesday filed for Chapter 11 bankruptcy protection in Texas with a plan to cut $720 million from its more than $1 billion of debt through a deal that will hand majority control to private equity firm Strategic Value Partners.

Expert Analysis

  • Justices Could Use Purdue To Resolve Related Circuit Split

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    The U.S. Supreme Court will soon hear Harrington v. Purdue Pharma to determine the validity of nonconsensual third-party releases in bankruptcy, but justices should also take the opportunity to resolve a related circuit split over the constitutional authority of bankruptcy judges to issue final rulings on such releases, says Benjamin Feder at Kelley Drye.

  • Feds' Long-Term Debt Proposal Could Be Costly For US Banks

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    Federal banking regulators recently released a proposal for long-term debt requirements for certain U.S. banking organizations, which would significantly increase the cost of capital for most covered organizations, and the burden would be exacerbated by other factors in the current lending environment, say Matthew Bisanz and Anna Pinedo at Mayer Brown.

  • Maximizing Law Firm Profitability In Uncertain Times

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    As threats of an economic downturn loom, firms can boost profits by embracing the power of bottom-line management and creating an ecosystem where strategic financial oversight and robust timekeeping practices meet evolved client relations, says Shireen Hilal at Maior Strategic Consulting.

  • USW Ruling Highlights Successor Liability In Bankruptcy Sale

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    A Delaware federal court's recent decision in United Steelworkers v. Braeburn is important for potential asset purchasers in Section 363 bankruptcy sales as it found the purchaser was subject to obligations under the National Labor Relations Act notwithstanding language in the sale approval order transferring the debtor's assets free and clear of successor liability, say attorneys at Arnold & Porter.

  • 5th Circ. Ruling Reminds Attys That CBP Can Search Devices

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    The Fifth Circuit’s recent Malik v. Department of Homeland Security decision adds to the chorus of federal courts holding that border agents don’t need a warrant to search travelers’ electronic devices, so attorneys should consider certain special precautions to secure privileged information when reentering the U.S., says Jennifer Freel at Jackson Walker.

  • Avoiding The Ethical Pitfalls Of Crowdfunded Legal Fees

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    The crowdfunding of legal fees has become increasingly common, providing a new way for people to afford legal services, but attorneys who accept crowdsourced funds must remember several key ethical obligations to mitigate their risks, say Hilary Gerzhoy and Julienne Pasichow at HWG.

  • Ch. 12 Ruling Is A Helpful Addition To Interest Rate Case Law

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    In its recent In re: Topp ruling, the Eighth Circuit addressed the question of which rate of interest debtors should pay under a bankruptcy plan, showing that the choice of interest rate plan is a factual issue subject to appellate review for clear error, and not a legal issue subject to de novo review, says Donald Swanson at Koley Jessen.

  • Section 363 Ruling Lines Up With Avoidance Action Precedent

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    While it is safe to say that avoidance actions in bankruptcy cases are the exception, not the rule, when selling assets in a Section 363 sale, the Eighth Circuit’s recent ruling in Simply Essentials’ Chapter 5 case reveals uniformity among courts that have considered the issue, says Daniel Lowenthal at Patterson Belknap.

  • What Large Language Models Mean For Document Review

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    Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.

  • Series

    Participating In Living History Makes Me A Better Lawyer

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    My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.

  • How Attys Can Weather The Next Disaster Litigation Crisis

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    On the heels of a number of damage catastrophes and ensuing litigation this summer alone, attorneys must recognize that it’s a matter of when, not if, the next disaster — whether natural or artificial — will strike, and formulate plans to minimize risks, including consolidating significant claims and taking remedial measures, says Mark Goldberg at Cosmich Simmons.

  • Opinion

    Private Equity Owners Can Remedy Law Firms' Agency Issues

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    Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.

  • Opinion

    Proving Causation Is Key To Fairness And Justice

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    Ongoing litigation over talc and acetaminophen highlights the important legal distinction between correlation and causation — and is a reminder that, while individuals should be compensated for injuries, blameless parties should be protected from unjust claims, say Drew Kershen at the University of Oklahoma College of Law, and Henry Miller at the American Council on Science and Health.

  • Potential WeWork Bankruptcy May Disrupt Coworking Spaces

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    If WeWork files for bankruptcy, as hinted at in its recent quarterly earnings report, landlords may struggle to take over management of WeWork's coworking spaces, but the coworking industry as a whole is showing some promise in adapting to the market's evolving post-pandemic office needs, says Ann Chandler at Hall Estill.

  • How To Protect Atty-Client Privilege While Using Generative AI

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    When using generative artificial intelligence tools, attorneys should consider several safeguards to avoid breaches or complications in attorney-client privilege, say Antonious Sadek and Christopher Campbell at DLA Piper.

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