Bankruptcy

  • July 13, 2022

    Crypto Issues Grow, Mediation Over Abuse OK'd In Ch. 11

    Liquidators were cleared to take discovery from the founders of foundering Three Arrows Capital, account holders of cryptocurrency broker Voyager Digital hold out hope for recovery, and mediation of sex abuse claims in the case of a New York youth club was approved. This is the week in bankruptcy.

  • July 13, 2022

    Brooks Bros. CEO Accused Of Using Ch. 11 To Buck Liabilities

    The litigation trustee for retailer Brooks Brothers has filed suit in Delaware against ex-CEO Claudio Del Vecchio, claiming he took the company into Chapter 11 to try to avoid millions of dollars in personal liability for an investment deal.

  • July 13, 2022

    Furniture Biz Ch. 11 Is Fault Of Directors, Suit Alleges

    The liquidating trustee of bankrupt retailer Furniture Factory Outlet filed suit in Delaware bankruptcy court Wednesday alleging the company's Chapter 11 was caused by the board of directors and controlling investor Sun Capital Partners Inc. when they took on unnecessary debt to fund expansion.

  • July 13, 2022

    GenapSys Cleared For Ch. 11 Loan With Sale Milestones

    Bankrupt DNA sequencing technology company GenapSys Inc. received permission on Wednesday from a Delaware court to access $1 million in debtor-in-possession financing that comes with a set of deadlines for approval of a Chapter 11 asset sale.

  • July 13, 2022

    NY Youth Club Gets OK To Mediate Abuse Claims In Ch. 11

    A New York bankruptcy judge Wednesday approved Madison Square Boys & Girls Club's request to appoint a mediator to try to settle dozens of sexual abuse claims, but held off entering the order to give unsecured creditors the chance to weigh in.

  • July 12, 2022

    Investors' Attys Get $11.7M From $35M KPMG Settlement

    A Tennessee federal judge approved $11.7 million in attorney fees from the $35 million settlement that the accounting giant KPMG agreed to pay to end a class action from Miller Energy Resources Inc. investors who said the firm helped the now-defunct company falsify financials about its oil and gas assets.

  • July 12, 2022

    Armstrong Flooring Gets Court's OK To Sell Assets For $197M

    Armstrong Flooring Inc. won a bankruptcy court's tentative approval Tuesday to complete $197 million in sales of its North American, Australian and China-based assets after an all-night, all-day scramble to resolve objections from landlords, insurers, trade vendors, unions, and the lenders financing the building material maker's bankruptcy.

  • July 12, 2022

    Ch. 11 Cheat Sheet: GenapSys

    DNA sequencing technology developer GenapSys filed for Chapter 11 protection July 11 in the midst of costly litigation with the company's founder and former CEO and the associated operational and reputational challenges.

  • July 12, 2022

    US Trustee To Fight LeClairRyan Deal Over $3M Quinn Payout

    The Office of the U.S. Trustee will challenge a $21 million settlement recently struck over the tangled relationship between LeClairRyan and UnitedLex, continuing the fight over a $3.15 million payment for Quinn Emanuel that came with the deal's approval, according to a Monday filing in Virginia federal bankruptcy court.

  • July 12, 2022

    Ex-Toys R Us Execs Renew Call To End Ch. 11 Suit

    A group of former Toys R Us executives on Tuesday asked a Virginia district judge to overturn a bankruptcy judge's finding they will have to face claims stemming from the company's bankruptcy, saying the allegations lack the evidence needed to back them up.

  • July 12, 2022

    NY Tower Owner Reaches Ch. 11 Bid Deal With SL Green

    The bankrupt owner of a Manhattan office tower has reached a deal with one of its mezzanine lenders, an affiliate of SL Green Realty Corp., to place a stalking horse bid for the 245 Park Ave. property at a bankruptcy auction later this month.

  • July 12, 2022

    Kossoff Gets Final Warning Ahead Of Default In Escrow Suit

    Disbarred and incarcerated New York City real estate attorney Mitchell Kossoff must file an opposition by Friday or risk a default judgment on a former client's claims that he allegedly stole $4.5 million in escrow funds, a Manhattan federal judge said this week.

  • July 12, 2022

    Liquidators Get OK To Subpoena Three Arrows Founders

    A New York bankruptcy judge Tuesday told representatives of the liquidators of cryptocurrency hedge fund Three Arrows Capital they can subpoena the fund's founders, who the liquidators say are not cooperating with attempts to examine the fund's finances.

  • July 12, 2022

    GenapSys Opens Ch. 11 After Chancery Shakes Up Board

    After years of feuding over control of the company and a recent Delaware Chancery Court order disqualifying or invalidating most current or proposed directors, gene sequencing venture GenapSys Inc. retreated into Chapter 11 in Delaware late Monday, aiming for a quick sale.

  • July 11, 2022

    Cred Can Keep Trying To Claw Back Bitcoin From Investor

    A Delaware bankruptcy judge on Monday allowed the liquidating trust for bankrupt cryptocurrency venture Cred Inc. to continue its attempt to claw back hundreds of bitcoins from a so-called whale investor, but dismissed claims he engaged in actual fraud.

  • July 11, 2022

    Catching Up With Delaware's Chancery Court

    Images of the Delaware Chancery Court filled many a Twitter thread last week after the company said it would bring Elon Musk to justice for walking away from a $44 billion promise. Other post-holiday fireworks included several multimillion-dollar settlements, the breakup of a company board and an irritated slap-down from the court's top chancellor. 

  • July 11, 2022

    Alex Jones Seeks Again To Delay Defamation Sanctions

    Conspiracy theorist Alex Jones has appealed a Texas state judge's order denying his bid to delay payment of $1 million in sanctions in a defamation suit brought by families of victims of the 2012 Sandy Hook Elementary School shooting, arguing that the judge ignored key evidence.

  • July 11, 2022

    Armstrong Flooring Picks $107M Gordon Bros. Bid In Ch. 11

    Building material maker Armstrong Flooring Inc. announced the selection of a Gordon Brothers venture as the winning bidder for its North American assets Sunday, canceling a Chapter 11 auction in favor of the $107 million offer.

  • July 11, 2022

    Greenspoon Marder Adds Bankruptcy Firm SulmeyerKupetz

    Greenspoon Marder LLP has added all nine attorneys from Los Angeles bankruptcy boutique SulmeyerKupetz, the firm announced Monday.

  • July 11, 2022

    Latam Claimholders Lose Bid To Stay Ch. 11 Plan For Appeal

    A New York bankruptcy judge has denied a request by bondholders of a Latam Airlines affiliate to stay his order approving the Chilean air carrier's Chapter 11 plan while they appeal his decision, saying the facts aren't on the bondholders' side.

  • July 08, 2022

    Chancery Prunes GenapSys Board, Orders Annual Meeting

    Gene sequencing venture GenapSys Inc. had most of its current board disqualified and its replacement board invalidated on Friday in Delaware Court of Chancery rulings that also directed the company to hold an annual meeting.

  • July 08, 2022

    Crypto Risks Call For Stronger Rules, Fed Vice Chair Warns

    Digital assets are vulnerable to many of the same risks as traditional finance and need comparable regulatory guardrails to protect investors and the financial system at large, Federal Reserve Vice Chair Lael Brainard said Friday.

  • July 08, 2022

    Voyager Says Hope Is Not Lost For Ch. 11 Creditor Recovery

    Cryptocurrency broker Voyager Digital Holdings Inc. told a New York bankruptcy judge on Friday that its customers should not give up hope of seeing a return on the billions of dollars' worth of cryptocurrency they've deposited with the company.

  • July 08, 2022

    FirstEnergy Corp. Investor Attys Seek $48M In Fees

    Attorneys for FirstEnergy Corp. shareholders have asked an Ohio federal judge to approve their requested $48.6 million in attorney fees and give final approval to a $180 million settlement to end litigation over the company's billion-dollar nuclear energy bailout bribery scandal.

  • July 08, 2022

    Law Groups Push 3rd Circ. To Toss J&J Bankruptcy Filing

    A group of law professors and nonprofits urged the Third Circuit to toss pharmaceutical company Johnson & Johnson's Chapter 11 case, arguing that the bankruptcy is a bad-faith move to steer talc-related asbestos injury claims away from trial.

Expert Analysis

  • Opinion

    Prospectively Appointing Jackson To High Court Is Unlawful

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    President Joe Biden should rescind his prospective appointment of Judge Ketanji Brown Jackson to the U.S. Supreme Court as the decision contradicts the court's reasoning in Marbury v. Madison, raises gravely troubling issues regarding presidential discretion and brings a serious question about her legitimacy as a justice, says attorney John Reeves.

  • Bankruptcy Rulings Highlight Split On Excusable Neglect

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    The Fifth Circuit's recent decision in CJ Holding, and a New York federal bankruptcy court's recent decision in Westinghouse, contribute to a growing split on the weight assigned to various factors when courts decide what may constitute excusable neglect in bankruptcy filing, say attorneys at Cullen Dykman.

  • Perspectives

    Time To Fix Legal Industry's Environmental Pro Bono Problem

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    As we observe Earth Month, it's sobering to note that pro bono environmental law work lags behind other practice areas — but the good news is that there are numerous organizations that can help lawyers get connected with environment-related pro bono projects, says Matthew Karmel at Riker Danzig.

  • Ruling Highlights Nexus Of Water Rights, Bankruptcy Law

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    A Utah bankruptcy court's recent Sugarloaf Holdings decision analyzes water rights in the context of bankruptcy — a little-explored intersection of law that will grow more important as dwindling water resources lead to an increase in disputes — and provides a road map for future litigants tackling similar issues, says Lisa Tancredi at Womble Bond.

  • Remembering An Underappreciated Legal Skill — Listening

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    Education around listening skills is often neglected amid the dominance of visual media and written communication, and failed lawyering often comes down to an inability to listen accurately, so educators and law firms must prioritize the skill in their training programs, says James Flynn at Epstein Becker.

  • Attorneys Can Promote Trade, Security Amid Global Conflict

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    As nations take sovereign action to fight Russia’s aggression against Ukraine and the international rule of law, attorneys can combine their legal and business tools to help the global systems of trade and security in these troubled times, say Thomas Grant at Cambridge University and Scott Kieff at George Washington University.

  • Series

    The Future Of Legal Ops: Reining In Outside Counsel Costs

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    In-house legal departments are under increasing pressure to control spending on outside counsel, but traditional cost-cutting methods — law firm panels, alternative fee arrangements and alternative legal service providers — are limited, making it necessary to establish a more competitive law firm engagement process, say John Burke and Vincenzo Purificato at UBS.

  • When Congress Seeks Cos.' Nonpublic Info From Regulators

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    Increasingly, congressional investigators seek out private parties' confidential documents from the federal agencies that regulate them — and because Congress is uniquely empowered to override nondisclosure protections surrounding nonpublic information, companies must understand the rules and risks involved, say attorneys at Covington.

  • In Early Mediation, Negotiate With Empathy, Not Threats

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    With courts encouraging early settlement conferences to tackle the COVID-19 backlog, parties should consider that authenticity, honesty and the ability to see beyond one's own talking points are far more persuasive tools than threats of a distant possible determination by a court or arbitrator, says Sidney Kanazawa at ARC.

  • Addressing Problematic Drinking In The Legal Profession

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    To curb problematic drinking, on the rise during the pandemic, legal employers should implement comprehensive responsible drinking policies that are taken seriously by firm leadership, and provide alternatives for creating a healthy workplace culture, says Anne Brafford at the Institute for Well-Being in Law.

  • Transforming Law Firms' Diversity Intent Into Real Progress

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    In order for law firms to convert their diversity and inclusion activity into lasting advancements, they must prioritize accountability and transparency when crafting policies, and take steps to engage with attorneys and staff at all levels, say Jacqueline Simonovich at Weintraub Tobin and Lindsey Mignano at Smith Shapourian.

  • 2 Years Of Small Biz Bankruptcy Law: Winners And Losers

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    In light of the second anniversary of the Small Business Reorganization Act's passage, Brian Shaw at Cozen O'Connor categorizes the beneficial and detrimental effects of the law meant to provide a less burdensome path to small business restructuring, and describes the data needed before the law can be deemed a success.

  • Opinion

    Justices Must Apply Law Evenly In Shadow Docket Rulings

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    In recent shadow docket decisions, the U.S. Supreme Court has inconsistently applied the requirement that parties demonstrate irreparable harm to obtain injunctive relief, which is problematic for two separate but related reasons, says David Hopkins at Benesch.

  • Tips For Negotiating Litigation Funding Agreements

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    Allen Fagin and Ralph Sutton at Validity Finance break down the key components of litigation funding term sheets — from return calculations to funder involvement — and explain what law firm leaders should keep in mind when negotiating these provisions.

  • 5 Mediation Mistakes That Create Obstacles To Settlement

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    Overly litigious behavior ranks high among common mistakes attorneys make during mediation, as do premature ultimatums, failure to account for compounding risks, and more, say Lynn O'Malley Taylor and Rachel Gupta at JAMS.

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