Bankruptcy

  • March 06, 2024

    Sewer Deal Kept On Ice During Appeal In Philly Suburb's Ch. 9

    A Philadelphia bankruptcy judge Wednesday rejected a utility's latest effort to lift the automatic stay triggered by the City of Chester's Chapter 9 bankruptcy, which has delayed a $276.5 million sewer sale, saying it would require her to answer questions that are on appeal from a similar motion she nixed last year.

  • March 06, 2024

    Otterbourg Formalizes Bankruptcy, Mass Torts Practice Group

    As many BigLaw firms continue chasing bankruptcy talent, Otterbourg PC announced the formalization of a cross-departmental mass tort bankruptcy practice group under the leadership of a recently hired restructuring attorney and a longtime Otterbourg litigator.

  • March 06, 2024

    Gemini Scores Arbitration Bid In 'Earn' Crypto Investment Suit

    Gemini Trust Co. LLC investors must arbitrate their claims that the cryptocurrency exchange misled them about the firm's interest-bearing accounts and were hurt after the program for the accounts was halted, with a New York federal judge finding that Gemini and its founders have shown that a valid arbitration agreement exists.

  • March 06, 2024

    Rite Aid Aims To Divest Most Of Its Health Dialog Business

    Bankrupt drugstore chain Rite Aid Corp. said Wednesday that it will sell most of its Health Dialog business, which provides personalized health services, to Carenet Health for an undisclosed amount.

  • March 06, 2024

    Bankruptcy Group Of The Year: Sullivan & Cromwell

    Sullivan & Cromwell LLP's bankruptcy practice handled the sprawling bankruptcy of cryptocurrency exchange FTX and the Chapter 11 proceedings of Kidde-Fenwal, the first bankruptcy resulting from PFAS-related product liability, earning it a spot among Law360's Bankruptcy Groups of the Year.

  • March 06, 2024

    Ex-Stimwave CEO Found Guilty Of Healthcare Fraud

    A New York federal jury on Wednesday convicted the former CEO of Stimwave over allegations that the medical device maker sold an implant for chronic pain sufferers with a bogus component in order to drive up billings.

  • March 06, 2024

    BowFlex Gets OK For $25M DIP, Plans On April Sale

    A New Jersey bankruptcy judge on Wednesday gave BowFlex permission to draw on $25 million in Chapter 11 financing as the exercise equipment company heads for what it said will be an April asset sale.

  • March 05, 2024

    Lordstown Ch. 11 Plan Confirmed After Settlements Reached

    A Delaware bankruptcy judge confirmed the Chapter 11 plan of electric vehicle maker Lordstown Motors Corp. over the objection of the Office of the U.S. Trustee after finding that the debtor is eligible for a discharge of its liabilities.

  • March 05, 2024

    Terraform Says Creditors Sabotaging Dentons Retention

    A Delaware bankruptcy judge on Tuesday allowed Terraform Labs unsecured creditors time to catch up on a dispute over the debtor's Denton's retention, a request Terraform dubbed "sabotage" of its defense in an upcoming $40 billion securities fraud trial.

  • March 05, 2024

    IPwe Seeks Ch. 7 Liquidation After Ch. 11 Financing Loss

    Patent trading platform operator IPwe asked a Delaware bankruptcy judge Tuesday to convert its Chapter 11 reorganization to a Chapter 7 liquidation, saying it has lost its source of bankruptcy funding and has no way to continue with its planned going-concern sale.

  • March 05, 2024

    Robertshaw's Ch. 11 Sale Plan Panned As 'Blatant Favoritism'

    Asset manager Invesco asked a Texas bankruptcy judge to block appliance parts maker Robertshaw US Holding Corp.'s proposed bidding procedures for a Chapter 11 sale, calling the debtors' agreement with a lender group and its equity sponsor "blatant favoritism."

  • March 05, 2024

    EV Maker Proterra's Ch. 11 Plan Gets Thumbs-Up In Del.

    A Delaware bankruptcy judge on Tuesday approved the reorganization plan of commercial electric vehicle technology company Proterra, which entered Chapter 11 to overhaul nearly $200 million in funded debt, overruling a handful of remaining objections.

  • March 05, 2024

    WeWork Seeks 4 More Months Of Ch. 11 Exclusivity

    WeWork asked a New Jersey bankruptcy judge to extend the window during which only the coworking space company can propose a Chapter 11 reorganization plan by 120 days, saying the extra time would avoid disruptions to its progress.

  • March 05, 2024

    Rite Aid Process To Break Leases, Close Stores In Ch. 11 OK'd

    A New Jersey bankruptcy judge on Tuesday signed off on procedures for bankrupt retail pharmacy chain Rite Aid Corp. to potentially shutter 210 rented stores with fast-approaching lease rejection deadlines, overruling objections from two landlords.

  • March 05, 2024

    NC Panel Says Co. Can't Intervene In Insurer Liquidation

    A holding company owned by insurance mogul Greg Lindberg shouldn't have been allowed to intervene in the North Carolina insurance commissioner's liquidation of two insolvent insurers, a state appeals court held Tuesday, saying only a company's directors are permitted to do so under state law.

  • March 05, 2024

    Voyager Creditors Have Left $19M Of Checks Uncashed

    The wind-down administrator for defunct cryptocurrency brokerage Voyager Digital Holdings Inc. has told a New York bankruptcy judge that $19 million worth of checks sent to creditors were still unclaimed, setting an April 20 deadline to cash the checks or lose out on recovery for good.

  • March 05, 2024

    Bankruptcy Group Of The Year: Ropes & Gray

    The bankruptcy practice at Ropes & Gray is a versatile unit capable of winning high-profile cases and pioneering solutions to clients' financing needs, securing a unanimous high court decision in April for Mall of America's owner and devising a unique transaction for Trinseo PLC months later that kept the manufacturer afloat, earning it a spot among Law360's Bankruptcy Groups of the Year.

  • March 05, 2024

    BowFlex Maker Files For Bankruptcy With $67M Debt

    The makers of the BowFlex exercise machine filed for Chapter 11 protection in New Jersey bankruptcy court late Monday with more than $67 million in debt and a $37.5 million purchase offer.

  • March 04, 2024

    Puerto Rico Fiscal Board Argues For Utility Reorg Plan

    Puerto Rico's fiscal oversight board told a federal judge on Monday that it had the only plan to save the island's troubled electric utility, while bondholders claimed the board had created the plan specifically to shortchange them.

  • March 04, 2024

    Atty For Alex Jones' Infowars Asks Court's Permission To Quit

    The head lawyer for conspiracy theorist Alex Jones' Infowars radio show production company has urged a Texas bankruptcy judge to let him quit his work on the Chapter 11 case, saying Free Speech Systems' chief restructuring officer has withheld his pay in retaliation for disputes between the two professionals.

  • March 04, 2024

    Teamsters Request Discovery Stay In $137M Fight With Yellow

    A Kansas federal judge should decide whether Yellow Corp.'s $137 million lawsuit against the Teamsters can survive the union's dismissal bid before making the union produce more documents, the Teamsters said, looking to pause the discovery process in litigation accusing the union of holding up a corporate restructuring.

  • March 04, 2024

    Trial Of Ex-Stimwave CEO Over Medical Device Nears End

    Prosecutors on Monday urged a Manhattan federal jury to convict the former CEO of Stimwave Technologies for hawking a medical device for chronic pain sufferers with a bogus component designed to drive up billings, while defense counsel derided a lack of evidence to support the government's claims.

  • March 04, 2024

    Hospital Operator Pushes For Ch. 11 Plan Confirmation

    California-based hospital operator Alecto Healthcare Services LLC defended its Chapter 11 plan proposal Monday in Delaware bankruptcy court, saying opposition from creditors is based on a faulty belief that there are valuable claims that can be asserted for the benefit of creditors.

  • March 04, 2024

    NerdWallet, Syracuse Hit With 'Fraudulent' Bankruptcy Cases

    Personal finance platform NerdWallet, the city of Syracuse, New York, a Taco Bell franchisee and a financial tech company were targets of apparently phony bankruptcy cases opened in Delaware over the weekend by a frequent pro se litigant.

  • March 04, 2024

    Barretts' Mediation Docs Not Open To Pfizer, Judge Says

    A Texas bankruptcy judge declined Monday to open the mediation in Barretts Minerals Inc.'s bankruptcy case to former owner Pfizer Inc., saying that he didn't want mediation participants to worry about every conversation they have.

Expert Analysis

  • How Clients May Use AI To Monitor Attorneys

    Excerpt from Practical Guidance
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    Artificial intelligence tools will increasingly enable clients to monitor and evaluate their counsel’s activities, so attorneys must clearly define the terms of engagement and likewise take advantage of the efficiencies offered by AI, says Ronald Levine at Herrick Feinstein.

  • Del. Insurance Co. Liquidation Reveals Recovery Strategies

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    Arrowood's recent liquidation in the Delaware Chancery Court offers a positive development for policyholders and claimants, providing access to guaranty association protections amid the company's demise, say Timothy Law and Ann Kramer at Reed Smith.

  • How The NY AG Leads Investigations In Civil Securities Fraud

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    Although investigating white collar fraud can put significant strain on state and local resources, the New York Attorney General's Office has continued to use its expansive statutory authority to take a leading role in bringing civil enforcement actions in highly complex financial matters, say Carrie Cohen and Nathan Reilly at MoFo.

  • Series

    The Pop Culture Docket: Judge D'Emic On Moby Grape

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    The 1968 Moby Grape song "Murder in My Heart for the Judge" tells the tale of a fictional defendant treated with scorn by the judge, illustrating how much the legal system has evolved in the past 50 years, largely due to problem-solving courts and the principles of procedural justice, says Kings County Supreme Court Administrative Judge Matthew D'Emic.

  • Navigating Asset Tracing Challenges In Bankruptcy

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    A Virginia court’s recent ruling in Health Diagnostic Laboratory Inc.'s bankruptcy highlights the heightened demand for asset tracing and the strategic use of the lowest intermediate balance rule in recovering funds from commingled accounts, says Daniel Lowenthal at Patterson Belknap.

  • Lender Agreements And Unitranche Facilities: A Fresh Look

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    Unitranche facilities — which offer blended interest rates in a single loan document — are gaining prevalence, and lenders and borrowers should understand their advantages, as well as concerns over the enforceability of a unitranche-style agreement among lenders in bankruptcy, say attorneys at Mayer Brown.

  • What Banks Should Know About FDIC Assessment Rule

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    Max Bonici at Venable answers questions banking organizations may have about the Federal Deposit Insurance Corp.'s recent approval of a rule implementing a special assessment on banks to recoup costs associated with protecting uninsured depositors after the bank failures earlier this year, and highlights other considerations for uninsured deposits.

  • Series

    Performing Music Makes Me A Better Lawyer

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    The discipline of performing live music has directly and positively influenced my effectiveness as a litigator — serving as a reminder that practice, intuition and team building are all important elements of a successful law practice, says Jeff Wakolbinger at Bryan Cave.

  • Opinion

    Bankruptcy Must Be On The Table As A Student Loan Solution

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    Amid the ongoing discourse on student loan forgiveness, borrowers must have a deeper understanding of U.S. Departments of Justice and Education guidance regarding how the government will agree to discharge loans in bankruptcy, or miss a life-changing opportunity currently available to regain control over their financial condition, say Jonathan Carson and Eric Kurtzman at Stretto.

  • Breaking Down High Court's New Code Of Conduct

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    The U.S. Supreme Court recently adopted its first-ever code of conduct, and counsel will need to work closely with clients in navigating its provisions, from gift-giving to recusal bids, say Phillip Gordon and Mateo Forero at Holtzman Vogel.

  • Rockport Ch. 11 Highlights Global Settlement Considerations

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    A Delaware bankruptcy court’s recent rejection of Rockport’s proposed settlement serves as a reminder that there is a risk that a global settlement executed outside of a plan may be rejected as a sub rosa plan, but shouldn’t dissuade parties from seeking relief when applicable case law supports approval, says Kyle Arendsen at Squire Patton.

  • How Purdue High Court Case Will Shape Ch. 11 Mass Injury

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    The U.S. Supreme Court's recent arguments in Harrington v. Purdue Pharma, addressing the authority of bankruptcy courts to approve nonconsensual third-party releases in Chapter 11 settlement plans, highlight the case's wide-ranging implications for how mass injury cases get resolved in bankruptcy proceedings, says George Singer at Holland & Hart.

  • Opinion

    Legal Profession Gender Parity Requires Equal Parental Leave

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    To truly foster equity in the legal profession and to promote attorney retention, workplaces need to better support all parents, regardless of gender — starting by offering equal and robust parental leave to both birthing and non-birthing parents, says Ali Spindler at Irwin Fritchie.

  • How Cannabis Cos. Are Adapting In Shifting Bankruptcy Arena

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    Recent bankruptcy cases show that federal courts have begun to demonstrate more openness to downstream businesses in the cannabis industry, and that even though receivership can be a viable option for those denied access to the bankruptcy system, it is not without its own risks and complexities, say attorneys at Troutman Pepper.

  • Pa. City Ch. 9 Ruling Raises Municipal Financing Concerns

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    A Pennsylvania district court’s recent ruling in a Chapter 9 case filed by the city of Chester, Pennsylvania, strengthens the foundations of the municipal bond market, but also demonstrates that bankruptcy courts continue to struggle with some of the features of municipal revenue bonds and issue rulings that contradict market expectations, say attorneys at Cadwalader.

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