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Bankruptcy

  • February 12, 2019

    Platinum's Huberfeld Gets 2.5 Years In Bribery Case

    A Manhattan federal judge came down hard on Platinum Partners co-founder Murray Huberfeld on Tuesday, sentencing him to 2 1/2 years in prison and $19 million in restitution despite a life of good works that prosecutors said qualified him for just a year behind bars.

  • February 12, 2019

    Ex-Goldman Sachs Exec Says Former Partner Owes $1.5M

    An ex-Goldman Sachs partner has filed suit in New York State court against another ex-partner and investment fund manager, claiming he is refusing to pay a judgment of more than $1.5 million for his failure to hold up his end of a bankruptcy settlement.

  • February 12, 2019

    Beauty Brands Ch. 11 Sale Approved As Insolvency Looms

    Cosmetics retailer Beauty Brands LLC received court approval Tuesday for a Chapter 11 sale of 23 stores, but warned the court that errors in its inventory procedures will lead to administrative insolvency next month.

  • February 12, 2019

    Ga. Atty Sentenced To 15 Years For $20M Fraud Scheme

    A Georgia court has sentenced the former managing partner at a foreclosure firm to 15 years in prison for draining over $20 million from the law firm to support his lavish spending on girlfriends, golf trips and gambling.

  • February 12, 2019

    Mesabi's Ch. 11 Fee Suit Tossed Over Jurisdiction Concern

    A Delaware bankruptcy judge on Tuesday dismissed an adversary complaint brought by the Chapter 11 estate of Mesabi Metallics Co. LLC’s predecessor against an investment banker over an unpaid fee claim, saying the suit fell outside the court’s jurisdiction.

  • February 12, 2019

    Rehab Network EBH Topco Gets Ch. 11 OK In Delaware

    A judge on Tuesday gave his nod to addiction treatment facility network EBH Topco LLC's Delaware Chapter 11 as the company continues to deal with regulatory issues in finalizing the credit sale of its facilities to its senior secured lender.

  • February 12, 2019

    Keep Power Deal Partners Out Of FERC Fight, PG&E Says

    Pacific Gas and Electric Co. on Monday said companies it has inked power purchase agreements with have no grounds to intervene in the utility's bid to block the Federal Energy Regulatory Commission from having a say over wholesale PPAs that PG&E seeks to ditch in Chapter 11.

  • February 12, 2019

    Lehman Creditors Urge Top UK Court To Overturn Tax Bill

    The administrators of Lehman Brothers' European trading arm took their fight over a potential tax bill running to the billions to the U.K.'s highest court Tuesday, clashing with HM Revenue and Customs over whether its liability for statutory interest should be considered short- or long-term.

  • February 11, 2019

    New England Motor Freight Files Ch. 11 In NJ

    A crushing period in the transportation industry has driven New England Motor Freight Co. to New Jersey bankruptcy court, where a Chapter 11 petition filed Monday showed the company’s main unit is saddled with between $50 million and $100 million in debt.

  • February 11, 2019

    $785M In Debt, Diagnostics Provider Files For Bankruptcy

    Bedside diagnostic health care provider TridentUSA filed for bankruptcy in New York Sunday with roughly $785 million in funded debt spread between a web of affiliated companies, citing a number of company-specific and industrywide difficulties and a proposed plan to swap debt for equity.

  • February 11, 2019

    NJ Medical Device Co.'s Ch. 11 OK'd In Delaware

    Medical device company Angel Medical Systems Inc. received court approval Monday for its Chapter 11 debt-for-equity reorganization, which the company said will clear the way for commercialization of the company's cardiac monitoring product.

  • February 11, 2019

    Platinum Exec Can't Halt Trial Over Jury Info Leak Claims

    A Brooklyn federal judge has denied Platinum Partners founder Mark Nordlicht’s request to put his impending fraud trial on hold while the Second Circuit reviews his claim that a prosecutor leaked grand jury information to the media.

  • February 11, 2019

    Investment Co. Says Mesabi $16M Fee Suit Outside Ch. 11

    An investment banking firm alleging it is owed more than $16 million in advisory fees from reorganized debtor Mesabi Metallics Co. LLC told a Delaware bankruptcy judge Monday that an adversary suit filed by Mesabi’s estate should be tossed because Mesabi is not involved in the fee row.

  • February 11, 2019

    After Losing Sale Fight, Sears Creditors Seek Speedy Finish

    Sears Holding Corp.'s unsecured creditors committee on Monday asked a New York bankruptcy court to turn down a request to extend the retail giant's Chapter 11 plan filing deadline, saying with the sale of the business approved there remains little to wrap up.

  • February 11, 2019

    Ditech Re-Enters Chapter 11 With Prepacked Restructuring

    Mortgage company Ditech Holding Corp. re-entered Chapter 11 in a New York bankruptcy court Monday, saying it has a prepackaged plan to cut more than $800 million in debt and escape a new liquidity crunch.

  • February 8, 2019

    One Woman's Attempt To Rebuild After Hurricane Maria

    Carmen Milagros Chévere Ortiz couldn't get disaster aid after Hurricane Maria because she didn't have flood insurance. But to get insurance, she needed something even more elusive — a deed to her property.

  • February 8, 2019

    ‘Now Is The Real Crisis’: Puerto Ricans Struggle For Disaster Aid

    In order to receive federal funding, residents whose homes were damaged by Hurricane Maria must show they hold title to their properties. But in Puerto Rico, that’s easier said than done.

  • February 8, 2019

    Looking To Start Over, Storm-Tossed Lawyers Land In Fla.

    Lawyers forced to flee Puerto Rico after Hurricane Maria found that despite their education and experience, picking up careers on the mainland was no simple task.

  • February 8, 2019

    DOJ Fights To Overturn Rep In Duro Dyne Asbestos Trust

    U.S. government attorneys urged a New Jersey federal judge on Friday to overturn the appointment of a trustee picked to represent future asbestos exposure victims in the Chapter 11 case for Duro Dyne National Corp., saying statutory standards were not met to ensure the representative's independence.

  • February 8, 2019

    Madoff Investors Lose $41M Clawback Fight At District Court

    A group of investors that profited from Bernie Madoff’s defunct investment firm must turn over to the firm's liquidating estate $41 million in Ponzi scheme proceeds, a New York federal judge ruled Thursday, affirming bankruptcy court recommendations that the funds should be clawed back.

Expert Analysis

  • Lenders, Law Firms Brace For Foreclosure High Court Ruling

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    The U.S. Supreme Court heard oral argument in the case Obduskey v. McCarthy & Holthus LLP on Jan. 7. The court’s ruling in this case could have major implications for all organizations — including law firms — that utilize the nonjudicial foreclosure process, says John Baxter of Nelson Mullins Riley & Scarborough LLP.

  • A Look At The Expansion Of Nonrecourse Carveouts

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    The lessons garnered from the 2008 financial crisis, together with portfolio and securitized lenders competing for sponsors, have spurred a progression of nonrecourse carveout provisions as lenders expand nonrecourse financing into both mezzanine and other loan spaces, say Cyril Derzie and Gina Garcia of Seyfarth Shaw LLP.

  • Opinion

    Law Schools Should Be More Like Medical Centers

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    Medical centers and their faculty matter to the practice of medicine. Law schools and their faculty do not matter to the practice of law, says J.B. Heaton of J.B. Heaton PC.

  • Will Bankruptcy Stay Criminal Proceedings For PG&E?

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    Karol Denniston and Stephen Lerner of Squire Patton Boggs LLP discuss the potential impact of Pacific Gas and Electric's impending bankruptcy filing, expected on Jan. 29, on the order to show cause hearing scheduled in its criminal matter for Jan. 30.

  • How To Comply With Qualified Financial Contract Rules

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    Last year, the International Swaps and Derivatives Association published a protocol enabling covered entities to comply with qualified financial contract rules. Attorneys at Arnold & Porter discuss key provisions of the rules and protocol, compliance methods and deadlines, and next steps for affected counterparties.

  • Opinion

    Courts Are Getting It Right On Litigation Funding Discovery

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    Earlier this month, a California federal court denied discovery into the identification of third-party funders with a financial interest in the outcome of an underlying patent infringement action. This decision in MLC v. Micron follows a long line of well-reasoned precedent across U.S. federal courts, say Matthew Harrison and Sarah Jacobson of Bentham IMF.

  • Being Strategic About Chapter 11 Communications

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    In Chapter 11 cases, such as the pending Sears bankruptcy and the soon-to-be filed Pacific Gas and Electric bankruptcy, it’s critical to ensure that the communications strategy is aligned with the legal strategy, says Eden Gillott of Gillott Communications.

  • Diversity's Next Step: Developing Minority Partners

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    The lack of minority partners comes at a high cost to firms, say attorneys at Lightfoot Franklin & White LLC, as they suggest several practical ways to tackle this problem.

  • Sears’ Biggest Sale (Itself) Offers Valuable Lessons For Retail

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    Although a deal announced Wednesday could keep open more than half the department stores that retail dinosaur Sears Roebuck and Company had when it filed for bankruptcy protection last October, Sears remains a cautionary tale for the retail industry, say Robert Marticello and Philip Strok of Smiley Wang-Ekvall LLP.

  • Arbitrators And Mediators Should Reflect Society's Diversity

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    Alternative dispute resolution providers have made great strides toward diversity, but recent statistics show there is still work to be done. There are certain steps ADR providers can take to actively recruit more women and minority candidates to serve as arbitrators and mediators, says James Jenkins of the American Arbitration Association.