Bankruptcy

  • September 13, 2019

    O'Melveny Seeks To Duck Malpractice Suit After Arbitration

    O'Melveny & Myers LLP has urged a California federal court to affirm an arbitrator’s finding that it did not engage in malpractice when it represented both a defunct money management firm and its CEO in a contract dispute brought by a shareholder.

  • September 13, 2019

    Bankrupt Philadelphia Refinery Gets $50M Insurance Advance

    The bankrupt owner of a Philadelphia-area refinery told the Delaware bankruptcy court Thursday that a group of insurers are set to make a $50 million advance in business interruption insurance funds in its Chapter 11 following a June blaze that forced the plant’s closure.

  • September 13, 2019

    PG&E Pledge Won't End FERC-Bankruptcy Court Tug Of War

    Pacific Gas and Electric Co.'s pledge to honor its power purchase agreements as it moves through Chapter 11 may ease the minds of the utility's contracted electricity suppliers, but it won't douse the simmering legal fight over whether bankruptcy courts or the Federal Energy Regulatory Commission get to determine the fate of such contracts.

  • September 13, 2019

    Trustee Seeks Ch. 7 Conversion For LeClairRyan Bankruptcy

    The Office of the U.S. Trustee on Thursday asked a Virginia bankruptcy court to convert the Chapter 11 case of defunct law firm LeClairRyan PLLC to a Chapter 7 liquidation, saying the firm has not been collecting on its accounts as quickly as anticipated.

  • September 13, 2019

    Bankrupt Steakhouse Investors Can't Pursue $118M Judgment

    A Florida bankruptcy judge on Friday refused to grant permission for minority shareholders of the corporate owner of The Palm steakhouse brand to pursue collection of a $118 million judgment against its two majority shareholders, finding they failed to justify a need for such a step.

  • September 13, 2019

    Avenue Stores Bags $12M DIP As Creditors Ready Probe

    Bankrupt retailer Avenue Stores Inc. secured final approval in Delaware on Friday for its $12 million Chapter 11 debtor-in-possession loan during a hearing that saw unsecured creditors appeal for more time and money to investigate the case.

  • September 13, 2019

    PG&E, Insurers Cut $11B Deal Over Calif. Wildfires

    A group of insurance companies with claims against Pacific Gas and Electric for payouts they made to victims of California's 2017 and 2018 wildfires announced Friday that it has agreed to settle with the bankrupt utility for $11 billion.

  • September 13, 2019

    Purdue's Sacklers Shifted $1B Amid Opioid Fight, NY AG Says

    The New York Attorney General's Office said Friday it has uncovered roughly $1 billion in wire transfers by the Sackler family, owners of Purdue Pharma, that appear to be an attempt by the family to shield part of its fortune as it defended itself against a myriad of lawsuits alleging it fueled the opioid crisis.

  • September 13, 2019

    Ropes & Gray Boosts Restructuring Group With Kirkland Atty

    Ropes & Gray LLP has snagged a Kirkland & Ellis LLP veteran representing a wide array of public and privately held companies for its business restructuring group in New York, the firm announced Thursday.

  • September 13, 2019

    Weatherford's Revised Ch. 11 Plan To Cut $5.8B In Debt OK'd

    A Texas bankruptcy judge has confirmed oil field services company Weatherford International LLC's revised Chapter 11 plan to slash $5.8 billion of the company's debt.

  • September 13, 2019

    USA Gymnastics Asks For 60 More Days To File Ch. 11 Plan

    USA Gymnastics has asked the Indiana bankruptcy court overseeing its restructuring for more time to file a Chapter 11 plan, saying it’s making progress in dealing with its insurers and the hundreds of sexual abuse claims that felled it.

  • September 13, 2019

    UK Litigation Roundup: Here's What You Missed In London

    The last week has seen a Russian state-owned bank drag the chairman of a former FIFA World Cup contractor to court, property developers sue Barclays over a swaps dispute and Kuwait's public pension hit its former director with a commercial fraud suit. Here, Law360 looks at those and other new claims in the U.K.

  • September 12, 2019

    Sears Escapes $88M In Deductions From Sale Deal

    A New York bankruptcy judge has shot down attempts by Sears buyer ESL Holdings to collect more than $88 million from the bankrupt company for alleged violations of their $5.2 billion sale deal.

  • September 12, 2019

    Purdue Bankruptcy May Leave State AGs Out In The Cold

    Purdue Pharma LP's landmark deal to end thousands of opioid suits notably excludes dozens of states that may now have no other recourse than to sue the company's owners, the Sackler family. But if Purdue goes through with a planned bankruptcy filing, these states will find it difficult to recoup anything more than the Sacklers have already agreed to pay.

  • September 12, 2019

    Battle Over $160M Claim Could Stall Elk Petroleum’s Ch. 11

    A battle between creditors posturing for position in Elk Petroleum Inc.’s Chapter 11 continues, as an equityholder committee on Thursday asked a Delaware bankruptcy judge to disallow an estimated $160 million claim by Elk’s largest secured creditor.

  • September 12, 2019

    NJ Construction Co. Hits Ch. 11 With More Than $100M In Debt

    Taking on more clients and underestimating project costs led construction management firm Hollister Construction Services LLC to seek Chapter 11 protection Wednesday in New Jersey bankruptcy court, where the company will request approval Monday for steps aimed at keeping its lights on while it navigates more than $100 million in debt.

  • September 12, 2019

    State Law Can't Stop Voiding Of NJ Tax Sale, 3rd Circ. Says

    The Third Circuit upheld on Thursday a bankruptcy court finding that a tax lien holder's prepetition foreclosure on a New Jersey couple's property was an avoidable transfer in their Chapter 13 case, justifying returning the property to a bankruptcy trustee.

  • September 12, 2019

    Real Estate Firm's Bid For Ex-Honcho's Private Jet Grounded

    A real estate firm will not be able to prevent a bank from taking a private jet it says was fraudulently acquired by a former firm executive, a Massachusetts judge ruled Thursday, because the alleged fraud does not prevent the executive, an attorney, from selling the plane to someone else.

  • September 12, 2019

    Alta Mesa Files For Bankruptcy Amid SEC Probe

    Oil and gas company Alta Mesa Resources Inc. has filed for bankruptcy roughly two years after it was created in a $3.8 billion private-equity-backed deal, as shareholders and the U.S. Securities and Exchange Commission continue to investigate its subsequent stock price plunge.

  • September 11, 2019

    Lien Dispute Delays Theater Chain's Ch. 11 Loan Approval

    A dispute over the extension of liens to previously unencumbered assets of iPic Entertainment delayed court approval of the bankrupt luxury theater chain's post-petition loan facility Wednesday in Delaware, with a judge saying she needed more time to consider the loan terms.

  • September 11, 2019

    Ch. 11 Auction Suit Against Chopper Co. Dismissed

    A New York bankruptcy judge has dismissed asset manager Macquarie Group's claim that a helicopter leasing company violated a nondisclosure agreement when it bought choppers that Macquarie had unsuccessfully bid on at auction from bankrupt Waypoint Leasing's fleet.

  • September 11, 2019

    United Sporting OK'd For $8.4M Ch. 11 Sale Of Ohio Property

    Bankrupt sporting goods and firearms distributor United Sporting Cos. received court approval Wednesday in Delaware for an $8.4 million sale of an Ohio distribution facility as it continues to liquidate it property as part of a proposed Chapter 11 plan.

  • September 11, 2019

    Creditors Flag Avenue Stores Ch. 11 Funds, Bid Procedures

    Unsecured creditors in women's plus-size clothing retailer Avenue Stores LLC's Chapter 11 told the Delaware bankruptcy court Wednesday that proposed post-petition financing in the case is set up to benefit prepetition lenders at the expense of other creditors.

  • September 11, 2019

    Del. Justices Probe D&O Policy Scope In Verizon Spinoff Fight

    Verizon and GTE faced skeptical Delaware justices Wednesday who wondered whether the communications companies' directors and officers insurance policies extended to battling a fraud case over an ill-fated $14 billion spinoff, as a lower court ruled when it granted the companies nearly $50 million in defense fees.

  • September 11, 2019

    FDIC, OCC Take Swipe At 'Unfathomable' Madden Decision

    Federal banking regulators waded into a Colorado bankruptcy appeal over a high-interest business loan that was originated by a bank and later assigned to a nonbank, standing up for a legal doctrine on loan validity and knocking the Second Circuit's controversial Madden decision for "unfathomable" gaps in its legal analysis.

Expert Analysis

  • The Factors Courts Consider In Deposition Location Disputes

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    In the absence of a federal rule governing deposition location, federal courts are frequently called on to resolve objections to out-of-state deposition notices. Recent decisions reveal what information is crucial to courts in making the determination, says Kevin O’Brien at Porter Wright.

  • What To Consider Before Filing For A Rule 57 Speedy Hearing

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    Federal Rule of Civil Procedure 57 and its state counterparts provide a method for expediting claims for declaratory judgment that warrants closer attention than it has historically received from litigants and courts, say attorneys at Gibson Dunn.

  • Series

    Why I Became A Lawyer: Expanding The Meaning Of Diversity

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    My conservative, Catholic parents never skipped a beat when accepting that I was gay, and encouraged me to follow my dreams wherever they might lead. But I did not expect they would lead to the law, until I met an inspiring college professor, says James Holmes of Clyde & Co.

  • How The Wayback Machine Can Strengthen Your Case

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    The Wayback Machine, which archives screenshots of websites at particular points in time, can be an invaluable tool in litigation, but attorneys need to follow a few simple steps early in the discovery process to increase the odds of being able to use materials obtained from the archive, says Timothy Freeman of Tanenbaum Keale.

  • Opinion

    Draft Civil Procedure Jurisdictional Rule Needs A Tweak

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    The Judicial Conference Advisory Committee’s proposed addition to Federal Rule of Civil Procedure 7.1 needs to be amended slightly to prevent late-stage jurisdictional confusion in cases where the parties do not have attributed citizenship, says GianCarlo Canaparo at The Heritage Foundation.

  • New Best Practices Under E-Discovery Spoliation Rule

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    The amended Federal Rule of Civil Procedure 37(e) provides explicit criteria for imposing sanctions when electronically stored information has been lost during discovery, but courts are still not consistently applying the new rule, with some simply ignoring it in favor of inherent authority, say Matthew Hamilton and Donna Fisher at Pepper Hamilton.

  • How Law Firms Can Create Content Decision Makers Will Read

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    According to our recent survey, the one simple attribute that attracts both in-house counsel and C-suite executives to content is utility, but it’s also clear that both groups define utility differently and prefer different content types, says John Corey of Greentarget.

  • Bankruptcy Courts' Turf War With FERC Escalates

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    Recent Chapter 11 filings by Pacific Gas & Electric and FirstEnergy Solutions have reignited debate over whether U.S. bankruptcy courts can reject contracts regulated by the Federal Energy Regulatory Commission. The crux of the problem lies in conflicting jurisdiction conferred by the Bankruptcy Code and the Federal Power Act, say Paul Green and Mark Douglas of Jones Day.

  • 7th Circ. Misinterprets 'Active Resistance' In Ch. 13 Stays

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    When Section 362 of the Bankruptcy Code is evaluated under accepted principles of statutory interpretation, there is good reason to doubt the Seventh Circuit’s rationale in Fulton, the latest case in a circuit split on an aspect of the bankruptcy automatic stay provision, say Frank DiCastri and Lindsey Greenawald of Husch Blackwell.

  • Investment Company Act Circuit Split Exposes Mutual Funds

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    The Second Circuit's opinion in Oxford University Bank v. Lansuppe Feeder that mutual fund investors can bring private actions to rescind contracts they allege violate the Investment Company Act creates an unconventional circuit split, and poses litigation risk for mutual funds, say attorneys at Goodwin.

  • Post-Taggart, Debtors May Face Higher Pleading Standard

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    As interpreted by an Alabama federal court in Moore v. Automotive Finance last month, the U.S. Supreme Court's June ruling in Taggart v. Lorenzen has heightened the pleading standard for debtors in cases of discharge injunction violations and provided creditors with a new defense to these claims, say Shane Ramsey and John Baxter of Nelson Mullins.

  • Opinion

    Litigation Finance Can And Should Protect Its Reputation

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    This month’s controversy surrounding alleged financial misrepresentations by Burford Capital underlines the need for litigation financiers to unite in educating the public about the value of litigation finance, lest opportunists use cases like this to disparage the industry as a whole, says Charles Agee at Westfleet Advisors.

  • Crisis Messaging To Protect Law Firm Brand And Bottom Line

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    When crises occur, such as data security incidents or gender bias suits, a well-prepared law firm has a thoroughly tested communications plan at the ready, which ensures the firm is the most proactive news source, prevents the crisis from escalating and notifies stakeholders about mitigation efforts, says Zach Olsen at Infinite Global.

  • Calif. Justices Set Low Bar For Website Bias Claims

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    The California Supreme Court’s recent opinion in White v. Square — that plaintiffs need only show they intended to use an online business’ services in order to sue for alleged discrimination — could have far-reaching consequences for e-commerce, initially in California and potentially nationwide, say Katherine Catlos and Aaron Cargain of Kaufman Dolowich.

  • Perspectives

    What You Should Know About Courtroom Closures

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    At attorney Greg Craig’s trial in D.C. federal court this week, the courtroom was cleared so prospective jurors could answer sensitive questions. Even seasoned litigators were left wondering about the nature of this subtle, yet significant, issue involving Sixth Amendment public trial rights, says Luke Cass at Quarles & Brady.