Bankruptcy

  • May 22, 2025

    Silvergate Estate To Chip In For $37.5M Investor Settlement

    Silvergate Capital and investors suing over its collapse have reached a $37.5 million deal with a "rare" source of partial funding to resolve claims that the failed crypto-focused bank misrepresented its safeguards against onboarding customers like FTX, the fraud-ridden crypto exchange that made up roughly a sixth of the bank's deposit base.

  • May 22, 2025

    Trustee Alleges Developer Sold Gas Rights To Avoid Creditors

    A bankrupt developer sold its oil and gas rights to an affiliated company for only $100 per parcel in order to keep them from becoming part of the bankruptcy estate, the estate's trustee has claimed in an adversary complaint.

  • May 22, 2025

    US Trustee, Jackson Walker Might Mediate Fee Case

    The U.S. Trustee's Office and Jackson Walker LLP told a Texas federal judge Thursday they are open to mediating the watchdog's bid to have the law firm forfeit fees from more than 30 cases overseen by a former bankruptcy judge who was romantically involved with a onetime firm partner.

  • May 21, 2025

    'Tough Luck' Case Law Cited In Refusal To Stop Summons

    An Illinois federal judge on Tuesday grudgingly declined to issue an injunction to stop an arbitrator from dragging insurance broker Arthur J. Gallagher & Co. into arbitration stemming from the bankruptcy of Cooks Venture, a startup that specialized in the production and processing of pasture-raised, slow-growth chickens.

  • May 21, 2025

    Conn. Diocese Ch. 11 Plan Approved With $31M Abuse Fund

    A Connecticut bankruptcy judge on Wednesday approved the Chapter 11 plan of the Norwich Roman Catholic Diocese, clearing the way for survivors of childhood sexual abuse at the hands of priests and religious brothers to be compensated through a $31 million settlement fund.

  • May 21, 2025

    Chancery Orders Nominating Do-Over For Ionic Board Vote

    Citing overwhelming trial evidence, a Delaware vice chancellor on Wednesday told bankrupt Celsius Network's Ionic Digital successor to reopen a board nomination window after finding that the company wrongly eliminated one of two director seats ahead of an election in a defensive move targeting dissident candidates.

  • May 21, 2025

    Vegan Restaurant Chain Planta To Tap $1.75M In DIP Funding

    A Delaware bankruptcy judge Wednesday agreed to approve bankrupt vegan restaurant chain Planta's bid to access $1.75 million of its $3.5 million debtor-in-possession financing package, saying it needs funding to continue its efforts toward a sale.

  • May 21, 2025

    SC Justices Affirm Receivership Order In Asbestos Dispute

    The South Carolina Supreme Court on Wednesday unanimously upheld a trial court's decision to appoint a receiver over a Canadian company's insurance assets as part of discovery sanctions in an asbestos injury lawsuit, despite the company's contention it possesses no property in the state.

  • May 21, 2025

    Rite Aid Cleared To Sell Pharmacy Assets To CVS, Others

    A New Jersey bankruptcy judge Wednesday gave drugstore chain Rite Aid the go-ahead to transfer millions of prescriptions and dozens of stores to CVS, Walgreens and other pharmacy businesses in Chapter 11 transactions.

  • May 21, 2025

    Ex-Atty's Cooperation Deal OK'd In Calif. Debt Firm's Ch. 11

    A California bankruptcy judge on Wednesday approved a deal allowing a disbarred attorney accused of operating a fraudulent debt relief law firm to admit wrongdoing and provide information about the firm's collapse to a court-appointed trustee in an effort to recoup money for creditors.

  • May 21, 2025

    Sheppard Mullin Lands Alston & Bird, Dechert Attys

    Sheppard Mullin Richter & Hampton LLP has brought on a former Alston & Bird LLP partner in its Dallas office and a former Dechert LLP partner in its San Francisco office, strengthening the firm's finance and bankruptcy practice and business trial practice.

  • May 21, 2025

    50 Cent Wants Ch. 11 Reopened To Fight Woman's $20M Suit

    A Connecticut bankruptcy judge will review under seal a woman's $20 million New York injury suit against recording artist 50 Cent during an agreed-upon pause in the state court proceeding, helping her decide whether the rapper can use his Chapter 11 case to torpedo the woman's claims.

  • May 20, 2025

    Crypto Co. Genesis Sues Parent Co. Over $1.2B In Transfers

    Genesis Global Capital, a crypto lender that filed for bankruptcy in 2023, is now suing its parent company in bankruptcy court, seeking to recover more than $1.2 billion that the lender says was transferred to insiders while the company was insolvent and headed for Chapter 11.

  • May 20, 2025

    Creditors Win Fight Against Insider Releases In Azzur Ch. 11

    A Delaware bankruptcy judge on Tuesday sustained an objection to insider releases in the Chapter 11 liquidation plan of Azzur Group, finding the pharmaceutical services company had not justified the releases for prepetition conduct of current and former officers, directors, and equity holders.

  • May 20, 2025

    Franchise Group Says Ch. 11 Plan Cuts $1.5B In Debt

    Bankrupt retail franchise owner and operator Franchise Group Inc. told a Delaware judge on Tuesday that its proposed Chapter 11 plan would slash $1.5 billion from its balance sheet while positioning the business to emerge with 1,700 retail locations intact.

  • May 20, 2025

    Jailed Investor Puts Portfolio In Ch. 11 Ahead Of NY Auction

    A group of companies owned by a real estate investor jailed last month for his role in a scheme defrauding Fannie Mae has filed for bankruptcy protection in New Jersey on a portfolio carrying at least $100 million in both assets and debt, ahead of a sheriff's sale in New York set for Tuesday.

  • May 20, 2025

    Nursing Homes Facing 'Corporate Death Penalty' Owe $15.4M

    The companies behind two Pittsburgh-area nursing homes convicted of falsifying staffing records were ordered Tuesday to pay a total of $15.35 million in restitution to the federal government, though the corporations' attorney told the judge that they had already received a "corporate death penalty" for their conviction.

  • May 19, 2025

    Carrier's Kidde-Fenwal Ch. 11 Deal Barred By Purdue, AGs Say

    Connecticut and other states Monday objected to Carrier Global Corp.'s proposed $540 million deal releasing it from "forever chemicals" litigation liability through its ownership of bankrupt firefighting foam manufacturer Kidde-Fenwal Inc., saying the U.S. Supreme Court shot down a similar deal in drugmaker Purdue Pharma LP's bankruptcy case.

  • May 19, 2025

    Binance Calls FTX Ch. 11 Clawback Suit 'Legally Deficient'

    Binance has asked a Delaware bankruptcy judge to dismiss FTX's lawsuit seeking to recover $1.76 billion that was transferred to Binance, accusing the estate of FTX of trying to "shift the blame" for that company's November 2022 collapse.

  • May 19, 2025

    Irish Developer Inks $1.9M Deal With Ex Amid Conn. Ch. 7

    The Chapter 7 trustee for Irish real estate developer Sean Dunne has agreed to settle for $1.9 million prepetition bankruptcy claims by Jennifer Coyle, a woman who said she was Dunne's first wife, capping what was originally a €3.6 million ($4.1 million) series of claims.

  • May 19, 2025

    Biotech Services Company Files Ch. 11 With $60M In Debt

    Contracted biotechnology research company AmplifyBio filed for Chapter 11 protection late Friday in Ohio bankruptcy court listing about $60 million in debt, saying it intends to sell its assets after failing to realize sufficient revenue to support its capital-intensive operations.

  • May 19, 2025

    '50 Cent' Liquor Biz Eyes Ex-Boss's Conn. Home For $7M Debt

    Famed rapper Curtis '50 Cent' Jackson's liquor company asked a Connecticut bankruptcy court to let the business enforce its lien on its former brand manager Mitchell Green's $1 million home in Westport to help satisfy a $7 million fraud judgment, arguing that the lien will not disrupt Green's Chapter 7 proceedings.

  • May 19, 2025

    Wachtell-Led Regeneron To Buy 23andMe, Gaining User Data

    Regeneron Pharmaceuticals said Monday it emerged as the winning bidder for 23andMe, agreeing to pay $256 million to scoop the once high-flying consumer genomics firm out of bankruptcy while pledging to uphold strict privacy standards.

  • May 19, 2025

    Proskauer Adds Another M&A Atty In NYC From Ropes & Gray

    Proskauer Rose LLP announced Monday that it has brought another Ropes & Gray LLP attorney specializing in distressed mergers and acquisitions to its New York office.

  • May 19, 2025

    Manhattan Private School Files Ch. 11 On Verge Of Closure

    Not-for-profit New York City private school Manhattan Country School has filed for Chapter 11 protection in a New York bankruptcy court with more than $27.4 million in debt, saying it's insolvent and on the verge of closing its doors.

Expert Analysis

  • Law Firms Should Move From Reactive To Proactive Marketing

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    Most law firm marketing and business development teams operate in silos, leading to an ad hoc, reactive approach, but shifting to a culture of proactive planning — beginning with comprehensive campaigns — can help firms effectively execute their broader business strategy, says Paul Manuele at PR Manuele Consulting.

  • Opinion

    The Big Issues A BigLaw Associates' Union Could Address

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    A BigLaw associates’ union could address a number of issues that have the potential to meaningfully improve working conditions, diversity and attorney well-being — from restructured billable hour requirements to origination credit allocation, return-to-office mandates and more, says Tara Rhoades at The Sanity Plea.

  • Opinion

    It's Time For A BigLaw Associates' Union

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    As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.

  • Bankruptcy Courts May Be Budding Open To Cannabis Cases

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    Two recent California bankruptcy court rulings, denying motions to dismiss the respective debtors' bankruptcies, provide persuasive authority to allow cannabis debtors the protections of federal bankruptcy law, say Noah Weingarten and Bethany Simmons at Loeb & Loeb.

  • How Justices Upended The Administrative Procedure Act

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    In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.

  • Chapter 11 Ruling Signals Emphasis On Lockup Provisions

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    A New York bankruptcy court's recent ruling in GOL Linhas Aéreas Inteligentes’ Chapter 11 case provides creditors with a strong basis for resisting requests to lock up or otherwise limit their voting rights, say Dania Slim and Andrew Alfano at Pillsbury.

  • Vendor Rights Lessons From 2 Chapter 11 Cases

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    A Texas federal court’s recent critical vendor order in the Zachry Holdings Chapter 11 filing, as well as a settlement between Rite Aid and McKesson in New Jersey federal court last year, shows why suppliers must object to critical vendor motions that do not recognize creditors' legal rights, says David Conaway at Shumaker.

  • Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?

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    A Pennsylvania federal court’s recent dismissal of the defendants’ counterclaims in Morgan v. Noss should remind attorneys to avoid the temptation to repackage a claim’s facts and law into a mirror-image counterclaim, as this approach will often result in a waste of time and resources, says Matthew Selmasska at Kaufman Dolowich.

  • Can Chapter 15 Bankruptcy Help Cannabis Businesses?

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    Attorneys at Fox Rothschild consider whether Chapter 15 may be used as a tool to liquidate U.S. assets of cannabis companies in foreign bankruptcy proceedings, and look at the statutory provisions that may have a bearing on the successful liquidation of assets under the Bankruptcy Code.

  • Series

    Playing Dungeons & Dragons Makes Me A Better Lawyer

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    Playing Dungeons & Dragons – a tabletop role-playing game – helped pave the way for my legal career by providing me with foundational skills such as persuasion and team building, says Derrick Carman at Robins Kaplan.

  • Mercon Coffee Ch. 11 Ruling Shows Insider Releases' Limits

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    A New York bankruptcy court’s recent ruling in Mercon Coffee’s Chapter 11 case highlights the stringent requirements for retention-related transfers to insiders, even in cases where no creditor has objected, say Robert Klyman and Scott Shelley at DLA Piper.

  • 5 Insights Into FDIC's Final Rule On Big-Bank Resolution Plans

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    Although the Federal Deposit Insurance Corp.'s recently finalized rule expanding resolution planning requirements for large banks was generally adopted as proposed, it includes key changes related to filing deadlines, review and feedback, and incorporates lessons learned — particularly from last year's bank failures, say attorneys at Cleary.

  • Bankruptcy Trustees Need More FinCEN Guidance

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    Recent FinCEN consent orders in two North Carolina bankruptcy cases show that additional guidance is necessary for most types of fiduciaries overseeing bankruptcy estates or other insolvency vehicles, say Brian Shaw and David Doyle at Cozen O’Connor.

  • 3 Leadership Practices For A More Supportive Firm Culture

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    Traditional leadership styles frequently amplify the inherent pressures of legal work, but a few simple, time-neutral strategies can strengthen the skills and confidence of employees and foster a more collaborative culture, while supporting individual growth and contribution to organizational goals, says Benjamin Grimes at BKG Leadership.

  • E-Discovery Quarterly: Rulings On Hyperlinked Documents

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    Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.

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