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Bankruptcy

  • June 6, 2019

    Settlement Moves Helicopter Co. Closer To End Of Ch. 11

    Helicopter services operator PHI Inc. announced Thursday that it reached a settlement in its Texas Chapter 11 case with its unsecured creditors and Thirty Two LLC, resolving objections and motions made by the creditors and paving the way toward reorganization.

  • June 6, 2019

    Profit Was Reverse Engineered At Fallen Fund, Jury Hears

    Former Premium Point Investments analyst Ashish Dole testified Thursday that CEO Anilesh "Neil" Ahuja led a plot to "reverse engineer" profits in what prosecutors call a $100 million scheme to game the value of mortgage-debt bundles at the now-bankrupt hedge fund.

  • June 6, 2019

    J&J Asbestos Suit Sent Back To Mass. State Court

    A federal judge remanded a woman's asbestos-related lawsuit against Johnson & Johnson to Massachusetts state court on Wednesday, rejecting the company's argument that the case belongs in federal court because it's connected to a bankruptcy proceeding involving J&J's talc supplier, Imerys.

  • June 6, 2019

    NJ Construction Co. Head Cops To Tax Evasion, Ch. 7 Fraud

    The head of several New Jersey construction companies admitted in federal court Thursday to hiding more than $2 million in income from the government to avoid paying taxes and paying off debts when he filed for Chapter 7.

  • June 6, 2019

    Robinson & Cole Adds Bankruptcy Partner To New Del. Office

    Robinson & Cole LLP is continuing to expand its new office in Wilmington, Delaware, with the addition of a new bankruptcy and reorganization partner coming from Venable LLP.

  • June 5, 2019

    Sidley Austin Picks Up Gibson Dunn Restructuring Atty In LA

    Sidley Austin LLP has added a Gibson Dunn & Crutcher LLP attorney who specializes in restructuring matters as the newest partner in its Los Angeles office, the firm announced this week.

  • June 5, 2019

    Deal To End $367M White Eagle Lender Fight Gets Court Nod

    A Delaware bankruptcy judge approved a settlement Wednesday between life insurance investment firm White Eagle Asset Portfolio LP and its secured lender that will end a fight over $367 million in prepetition debt and allow the Chapter 11 case to move toward confirmation.

  • June 5, 2019

    Longtime Boston Lawyer To Fill Bankruptcy Court Vacancy

    A bankruptcy lawyer who has practiced in Boston for 37 years has been selected to sit on the U.S. Bankruptcy Court for the District of Massachusetts following the retirement of Judge Joan N. Feeney, according to a Wednesday announcement.

  • June 5, 2019

    'Honest' Fund Boss Tells Jury Ex-Employees Out To Get Him

    Premium Point Investments boss Anilesh "Neil" Ahuja is an honest leader who is being framed by his former underlings, the wealthy investment pro's lawyer told a Manhattan jury Wednesday, rejecting charges that he led a $100 million criminal fraud at his now-bankrupt hedge fund.

  • June 5, 2019

    Fuse Ch. 11 Plan Hearing Delayed After Creditor Deal Cracks

    A Delaware bankruptcy judge delayed a confirmation hearing on the Chapter 11 plan of multicultural media company Fuse LLC on Wednesday after the debtor said a resolution with unsecured creditors over the allocation of unencumbered assets had fallen apart earlier this week.

  • June 5, 2019

    Jury Orders €18M Clawback From Real Estate Tycoon's Wife

    A Connecticut federal jury has ordered the wife of an Irish real estate developer to repay more than €18 million ($20.2 million) in assets and cash that her husband fraudulently transferred to her around the time of his bankruptcy, including a €14 million property that changed hands on the same day the bankruptcy papers were filed.

  • June 5, 2019

    Vale Can't Enforce $1.2B Award In Mining Row, BSGR Says

    Brazil’s Vale SA can’t enforce an over $1.2 billion arbitration award in the U.S. that’s suspended in the country it came from, billionaire Beny Steinmetz’s mining company has told a New York federal court, one day after seeking bankruptcy protection in the Empire State.

  • June 5, 2019

    CEO Of Defunct IT Firm Gets 5 Years For $2.8M Fraud Scheme

    The former CEO of a now-bankrupt Illinois information technology firm was sentenced Wednesday to five years in prison for his role in a scheme to steal more than $2.8 million from the company.

  • June 5, 2019

    EXCO Noteholders Say Ch. 11 Plan Favors Insiders

    Oil and natural gas driller EXCO Resources Inc. is facing opposition to its Chapter 11 plan from noteholders that are claiming the plan dilutes or eliminates their claims for the benefit of insider creditors.

  • June 5, 2019

    AusTex Oil Hits Ch. 11 Amid $32M Shareholder Suit

    Oil and gas company AusTex Oil has filed for Chapter 11 in Oklahoma bankruptcy court in a bid to evenly distribute the $16 million it received from selling off its assets to creditors demanding twice that amount.

  • June 5, 2019

    Greenspoon Marder Adds NY Corporate And Business Partner

    Greenspoon Marder LLP announced Wednesday that it has expanded its corporate and business practice group in New York, bringing in a long-time transaction attorney from Blank Rome LLP.

  • June 5, 2019

    Skadden Conflicted In $856M Bankruptcy Case, Trustee Says

    A New York bankruptcy trustee has objected to an attempt by a Silver Point Capital LP-owned holding company facing a $856 million debt to hire Skadden Arps Slate Meagher & Flom LLP, saying the firm has frequently represented Silver Point, which allegedly caused the holding company’s current financial difficulty.

  • June 5, 2019

    Ex-Health Co. Execs Want Out Of Roche Test Strip Fraud Suit

    Former leaders of a bankrupt health care services company want to escape a suit by two Roche units claiming the executives fraudulently caused Roche to pay out $87 million in rebates for not-for-retail glucose testing strips that were sold through pharmacies.

  • June 4, 2019

    Platinum Oil Co. Exec Tells Jury Of Downward Spiral

    The founder of Northstar Offshore Group LLC on Tuesday told a New York federal jury of how the Texas oil and gas company took a downward turn after being taken over by Platinum Partners, and of his dim view of the value of certain assets in the hedge fund manager's energy portfolio.

  • June 4, 2019

    A&P's Ch. 11 Doesn't Change Job Clause In Benefits Package

    A Pennsylvania federal judge Thursday found a union pension plan had the right to deny retirement benefits to a former manager of an A&P supermarket chain subsidiary for taking a new job in the grocery industry despite A&P’s bankruptcy.

  • June 4, 2019

    Biofuel Co. Founders Push To Kill Ex-Partner's Ch. 11 Fee Bid

    Former partners in a defunct biofuel company urged a Florida federal court Monday not to award attorney fees to another partner who claims they wrongly forced the business into involuntary bankruptcy and asked the court to allow a pending appeal they brought to run its course.

  • June 4, 2019

    Flower Co. Pulls Ch. 11 Motion Over Last Minute Stock Sale

    FTD Companies Inc. abruptly withdrew an interim motion to restrict sales and trading of its stock late Tuesday, after a Delaware bankruptcy judge said she was troubled by last minute reports of a huge FTD stock sale involving company insiders days before the Chapter 11 began.

  • June 4, 2019

    Subsidiary Bank Should Get $4M Tax Refund, Justices Told

    A defunct Colorado bank should get a $4.1 million tax refund instead of its bankrupt parent company because it incurred the underlying losses that generated the refund, the FDIC told the U.S. Supreme Court on Monday.

  • June 4, 2019

    Homeowner Claims Ditech Collected Discharged Fees

    Bankrupt mortgage servicer Ditech Holding Corp. is facing a proposed class action accusing it of mishandling the accounts of bankrupt mortgage holdings and hitting them with bills for discharged debts after they emerge from Chapter 13.

  • June 4, 2019

    Jevic Lenders Sue In Del. To Recover $2M From Busted Deal

    The private equity backer behind defunct trucking company Jevic has sued the company's bankruptcy estate and a handful of law firms, creditors and other stakeholders in Delaware seeking to claw back $2 million paid to fund a settlement that fell apart after the U.S. Supreme Court repudiated the deal.

Expert Analysis

  • Q&A

    A Chat With McDermott COO John Yoshimura

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    In this monthly series, Amanda Brady of Major Lindsey & Africa interviews management from top law firms about the increasingly competitive business environment. Here we feature John Yoshimura, chief operating officer at McDermott Will & Emery LLP.

  • Opinion

    The Problem With 'Optimal' Diversity

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    Organizations should seek to avoid discrimination, but they should also be wary of the idea that diverse teams function better than nondiverse teams, because this reasoning lacks evidence and can lead to a slippery slope, says J.B. Heaton of J.B. Heaton Research LLC.

  • Fresh Takes On Seeking Costs And Fees Under Rule 45

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    Recent case law reveals that courts vary widely in their approaches to shifting the costs and fees incurred in responding to a Federal Rule of Civil Procedure 45 subpoena. Nonparties responding to such requests should consider certain district court trends, say attorneys at Pepper Hamilton LLP.

  • Bankruptcy Ruling Reminds Corp. Counsel To Mind Rule 1.13

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    Cruickshank v. Dixon, a recent Bankruptcy Court decision in Massachusetts, is the latest case highlighting the need for attorneys to examine conflicts of interests between a controlling equity holder and corporate interest as laid out in the Model Rules of Professional Conduct, say Christopher Blazejewski and Jessica Gray Kelly of Sherin and Lodgen LLP.

  • Series

    Judging A Book: Smith Camp Reviews 'Echo Of Its Time'

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    "Echo of Its Time" is the story of Nebraska’s federal district court from statehood in 1867 to the demise of Prohibition in 1933. Professors John Wunder and Mark Scherer have written an objective, unsentimental and insightful history, layered with context and rich in character study, says U.S. District Judge Laurie Smith Camp of the District of Nebraska.

  • No Premium Recovery Guarantees For 5th Circ. Lenders

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    While the U.S. Court of Appeals for the Fifth Circuit’s opinion last month directly addressed the allowability of make-whole and prepayment premiums for unsecured creditors in solvent debtor cases, its reasoning also cast doubt on the allowability of such premiums even for oversecured creditors, say attorneys at Latham & Watkins LLP.

  • Momentive Disrupts Intercreditor Agreements And Reorgs

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    The Momentive decision in the Southern District of New York, which warned against allowing senior secured creditors to “completely disable debtors from restructuring” and “scavenge on all assets in bird’s-eye view,” may have the unintended consequence of doing just that, say Adam Shiff and Shai Schmidt of Kasowitz Benson Torres LLP.

  • Opinion

    Sanders And Schumer (Mostly) Right On Share Repurchases

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    One need not agree with all of the proposal by Sens. Chuck Schumer and Bernie Sanders to limit share repurchases and dividends by amending the tax code. Society at large will surely benefit if corporations are required to pay their creditors before paying shareholders, says J.B Heaton of J.B. Heaton PC.

  • Guest Feature

    'The Mooch' Talks Mayhem, Con Law, Lessons From Harvard

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    Anthony Scaramucci is probably best known for the 11 days he spent as White House director of communications in 2017. But when White and Williams LLP attorney Randy Maniloff sat down to chat with "the Mooch," he was interested in hearing a different story.

  • What Happens When Crypto Meets Insolvency

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    Shaya Rochester and Lindsay Lersner of Katten Muchin Rosenman LLP address four issues likely to be found at the intersection of cryptocurrency and insolvency — ownership, classification, volatility, and treatment under the Uniform Commercial Code.

  • Why NY's Sutton 58 Decision Won't Rattle Real Estate Finance

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    Though some have claimed the New York Appellate Division, First Department's ruling in Sutton 58 v. Pilevsky will have earth-shattering consequences, the deceptively narrow decision does not undermine the contract-based foundation upon which recourse carveout guarantees are built, say attorneys at Fried Frank Harris Shriver & Jacobson LLP.

  • Why Proper Document Redaction May Be An Ethical Duty

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    Paul Manafort's attorneys recently filed a court document containing incompletely redacted information, highlighting the need for attorneys to become competent at redaction — or at least at verifying that redaction has been performed correctly. Failure to do either could be construed as legal malpractice, says Byeongsook Seo of Snell & Wilmer LLP.

  • Why High Court's Schein Decision Is Dangerous For Debtors

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    In a Jan. 8 decision, the U.S. Supreme Court further defined the allocation of power between arbitral tribunals and bankruptcy courts by striking down an exception that had allowed courts to decide whether a claim belongs in arbitration, says Shane Ramsey of Nelson Mullins Riley & Scarborough LLP. 

  • Series

    Why I Became A Lawyer: A Refugee's Journey Of Firsts

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    Even as a child in war-torn Iran, I began to develop a sense of justice and a desire for equality and the rule of law. These instincts ultimately guided me to become a federal prosecutor, and now a partner in private practice, says Raymond Aghaian of Kilpatrick Townsend & Stockton LLP.

  • Keeping PR Strategy Communications Privileged: Part 2

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    Determining whether and to what extent your legal team should invite a PR agent into privileged communications requires weighing many factors — including the unsettled and evolving case law on whether such involvement destroys privilege protection and creates discoverable, usable evidence, says Jeffrey Schomig of WilmerHale.

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