Bankruptcy

  • February 21, 2024

    Former Texas Atty Gets 50 Years For 'Ponzi-Type' Client Fraud

    A Texas federal judge sentenced a former San Antonio lawyer to 50 years in prison after he pled guilty to mishandling millions in client funds to support his "extravagant lifestyle," the U.S. Attorney's Office for the Western District of Texas said in a statement Wednesday.

  • February 21, 2024

    NY Judges Question Lehman's Bid To Undo CDS Trial Loss

    A panel of New York appeals court judges on Wednesday appeared reluctant to undo a bench trial loss Lehman Bros.' bankrupt European unit suffered last year in a suit attempting to clawback nearly half a billion dollars from Assured Guaranty over alleged losses on credit default swaps tied to the 2008 financial crisis.

  • February 21, 2024

    Genesis Creditors Seek At Least $45M Out Of Ch. 11 Plan

    Two of Genesis Global's prepetition lenders have asked a New York bankruptcy court to guarantee they'll receive a minimum of $45 million for their claims should the cryptocurrency lender enact a Chapter 11 plan, saying that at present, they might not be repaid until after resolving a complex dispute over fees.

  • February 21, 2024

    Peer Street Needs To Revise Ch. 11 Disclosures, Judge Says

    A Delaware bankruptcy judge sent crowd-funded real estate investment platform Peer Street Inc.'s disclosure statement back to the drawing board on Wednesday, telling the company that it needed to add more details and understandable language amid outcry from some small investors who wanted to convert the Chapter 11 bankruptcy to a liquidation.

  • February 21, 2024

    NH Power Plant Can Reject Electric Purchase Deal In Ch. 11

    Bankrupt electricity generating station Burgess Biopower LLC received court approval Wednesday from a Delaware judge to reject a power purchase agreement with a party the debtor claims was withholding payments and creating a financial situation where the station was in danger of shutting down permanently.

  • February 21, 2024

    5th Circ. Affirms Subrogation Loss In Fieldwood Energy Sale

    The Fifth Circuit has ruled that a group of insurers that issued surety bonds to bankrupt Fieldwood Energy in a sale of its assets are not entitled to subrogation rights because the bankruptcy court's order stripping their rights could not be challenged under Section 363 of the Bankruptcy Code, a protection that limits appellate review of an approved sale.

  • February 21, 2024

    Lenders Seek To Toss NYC Condo Building's 'Bad Faith' Ch. 11

    Lenders to bankrupt New York City condominium complex Hudson 888 Owner moved on Wednesday to dismiss the Chapter 11 case, saying it was filed "in bad faith" as an attempt to duck litigation.

  • February 21, 2024

    Rite Aid Gets OK To End Former Queens Store Lease

    Rite Aid Corp. was given permission Wednesday to reject a lease and sublease for a former store in Queens, New York, after a New Jersey bankruptcy judge found that doing so would benefit the debtor's estate.

  • February 21, 2024

    Appliance Parts Maker Can Mediate Creditor Suits In Ch. 11

    A Texas bankruptcy judge on Wednesday granted an appliance components producer's request in its Chapter 11 case to engage in mediation with Invesco, a lender group and other parties to address "significant issues" tied to two lawsuits brought against the company last year.

  • February 21, 2024

    Consumer Data Co. Gets OK For $50M Ch. 11 Sale

    A Delaware bankruptcy judge Wednesday approved the $50 million sale of Near Intelligence after being told that unsecured creditors' objections to the California-based consumer data gathering platform's Chapter 11 plan had been resolved.

  • February 21, 2024

    NY Court Weighs Greenlighting Celsius Ch. 11 Suits

    A New York bankruptcy judge on Wednesday considered whether to hear two lawsuits filed in the Chapter 11 case of former cryptocurrency platform Celsius Network LLC, or if the complaints involving an account holder and a digital asset mining company should be dismissed or sent to arbitration.

  • February 21, 2024

    Bankman-Fried Gets New Attys After Waiving Crypto Conflict

    A Manhattan federal judge signed off Wednesday on Sam Bankman-Fried's choice of new counsel ahead of his fraud sentencing, despite the fact that the convicted FTX founder's new team represents an indicted ex-crypto CEO whose interests may conflict with his own.

  • February 21, 2024

    IMedia Gets OK For Ch. 11 Liquidation Plan

    A Delaware bankruptcy judge on Wednesday approved home shopping business iMedia Brands' liquidation plan after hearing objections from unsecured creditors and others had been resolved.

  • February 21, 2024

    Cruise Line Hornblower Hits Ch. 11 With Over $1B Debt

    Cruise line and ferry service Hornblower Group Inc. and affiliates on Wednesday filed for Chapter 11 bankruptcy protection in Texas with a plan to cut $720 million from its more than $1 billion of debt through a deal that will hand majority control to private equity firm Strategic Value Partners.

  • February 20, 2024

    Giuliani Can Contest $148M Fine But Not With His Own Money

    A New York bankruptcy judge on Tuesday allowed Rudy Giuliani to seek a new trial for $148 million in damages he was ordered to pay for defaming two Georgia poll workers, but said the former mayor can't use money from his bankruptcy estate to pay his legal bills.

  • February 20, 2024

    Bankrupt Co. Stole $100M In Special Needs Trusts, Suit Says

    The parents of a disabled child claim the founders and financial entities behind a now-bankrupt corporate trustee orchestrated a decadelong predatory scheme to misappropriate more than $100 million of special needs trust assets, according to a proposed class action filed Monday in Florida federal court.

  • February 20, 2024

    Justices Won't Hear JPMorgan Syndicated Loan Dispute

    The U.S. Supreme Court decided on Tuesdsay that it will not hear a dispute accusing JPMorgan Chase and other banks of failing to warn noteholders about the risks of lending money to a soon-to-be bankrupt company, keeping the case's dismissal intact after the Second Circuit ruled that the syndicated loan at the center of the case was not subject to securities laws.

  • February 20, 2024

    Judge Spikes Ebix Investors' Bid For Ch. 11 Equity Committee

    A Texas bankruptcy judge declined Tuesday to take the rare step of ordering the appointment of an equity committee to act on behalf of a group of shareholders in Ebix Inc.'s Chapter 11 case, ruling that the investors will be adequately represented without one. 

  • February 20, 2024

    US Trustee Wants Sorrento Ch. 11 Tossed Or Relocated

    The U.S. Trustee's Office has moved to have Sorrento Therapeutics' Chapter 11 case dismissed, alleging the biopharmaceutical company manufactured a venue in Texas bankruptcy court, even as the debtor asked for court approval to sell off its assets to its CEO under a revised reorganization plan.

  • February 20, 2024

    Ex-BigLaw Atty Avoids Prison For Ch. 11 Lies

    A former BigLaw partner on Tuesday was spared any prison time for lying to a New York bankruptcy court in his 2022 personal Chapter 11 case, in an attempt to shield his assets from creditors.

  • February 20, 2024

    Audacy Ch. 11 Plan Reducing Debt By $1.6B Confirmed

    Radio station operator Audacy Inc. received approval on Tuesday for its prepackaged Chapter 11 bankruptcy plan, allowing it to convert about $1.6 billion of debt to equity and emerge from bankruptcy following approval from the Federal Communications Commission.

  • February 20, 2024

    Almond Farmer Hits Ch. 11 With $188M Debt, Sale Plans

    An almond ranch operator in California and 18 of its affiliates have petitioned for Chapter 11 protection, laying out plans to use $30 million in debtor-in-possession financing to maintain operations while looking to shed some or all of its properties to pay off $188 million in debt.

  • February 20, 2024

    US Trustee Says Coffee Co. Can't Redact Execs' Names

    The U.S. Trustee's Office asked a New York bankruptcy judge to reject a request by Mercon Coffee Group to expunge the names of its senior managers, directors and owners from its Chapter 11 filings, saying this is basic information the public has the right to know.

  • February 20, 2024

    Hess Corp. Oil Refinery Unit Gets OK For Ch. 11 Plan

    Oil and gas company Hess Corp.'s bankrupt oil refinery unit HONX Inc. received confirmation of its Chapter 11 reorganization plan that would allow it to pay $105 million to injury claimants who they say were affected by the company's asbestos exposure.

  • February 20, 2024

    Insurer Says BlockFi Premium Suit Violates Ch. 11 Plan

    A directors and officers insurance carrier for bankrupt cryptocurrency lender BlockFi is seeking to remove a lawsuit attempting to claw back $22.5 million in premiums from New Jersey state court to bankruptcy court, saying the debtor is violating the order confirming its Chapter 11 plan.

Expert Analysis

  • A Post-Mortem Analysis Of Stroock's Demise

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    After the dissolution of 147-year-old firm Stroock late last year shook up the legal world, a post-mortem analysis of the data reveals a long list of warning signs preceding the firm’s collapse — and provides some insight into how other firms might avoid the same disastrous fate, says Craig Savitzky at Leopard Solutions.

  • Don't Sit On Bankruptcy Sidelines, 5th Circ. Ruling Reminds

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    The Fifth Circuit’s recent In re: Louisiana Pellets decision, holding that a creditor couldn’t assert indemnification defenses in a suit brought by the trustee of a liquidation trust, highlights the risks faced by creditors and other contract parties that choose not to participate in a bankruptcy, say Gregory Hesse and Kaleb Bailey at Hunton.

  • 2nd Circ. Ruling Will Guide Social Media Account Ownership

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    The Second Circuit’s recent decision in JLM Couture v. Gutman — which held that ownership of social media accounts must be resolved using traditional property law analysis — will guide employers and employees alike in future cases, and underscores the importance of express agreements in establishing ownership of social media accounts, says Joshua Glasgow at Phillips Lytle.

  • Texas Ruling Clarifies That Bankruptcy Shields LLC Rights

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    A Texas bankruptcy court’s recent ruling in In re: Envision makes it clear that the Bankruptcy Code preempts a section of Delaware state law that terminates a member’s interest in an LLC upon a bankruptcy filing, clarifying conflicting case law, say Larry Halperin and Joon Hong at Chapman and Cutler.

  • Series

    Coaching High School Wrestling Makes Me A Better Lawyer

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    Coaching my son’s high school wrestling team has been great fun, but it’s also demonstrated how a legal career can benefit from certain experiences, such as embracing the unknown, studying the rules and engaging with new people, says Richard Davis at Maynard Nexsen.

  • Debt Collector Compliance Takeaways From An FDCPA Appeal

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    A Consumer Financial Protection Bureau amicus brief last month in an ongoing First Circuit appeal focusing on an interpretation of the Fair Debt Collection Practices Act can serve as a reminder for debt collectors to understand how their technologies, like bankruptcy scrubs and letter logic, can prevent litigation, says Justin Bradley at Womble Bond.

  • SG's Office Is Case Study To Help Close Legal Gender Gap

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    As women continue to be underrepresented in the upper echelons of the legal profession, law firms could learn from the example set by the Office of the Solicitor General, where culture and workplace policies have helped foster greater gender equality, say attorneys at Ocean Tomo.

  • Crypto Issues To Watch Amid Evolving Legal Landscape

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    This year will likely be a momentous one for crypto in the U.S., but whether it is successful or disastrous will depend on the outcome of high-profile court decisions and key regulatory actions, say attorneys at Venable.

  • Opinion

    3rd-Party Financiers Have Power To Drive Mass Tort Cases

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    The abnormal recovery premium presented by modern mass tort cases coupled with their deemphasized role for attorneys creates an opportunity for third-party financiers to both create and control these cases, says Samir Parikh at Lewis & Clark Law School.

  • Del. Dispatch: Clarification On Fiduciary Duties Of Controllers

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    The Delaware Chancery Court’s January opinion in a Sears Hometown and Outlet Stores' stockholder dispute — holding that a controlling stockholder owes the company and minority shareholders some fiduciary duties when selling shares or voting to change the status quo — suggests instances where investors opposing board decisions should tread carefully, say attorneys at Fried Frank.

  • Stay Ruling Challenges Sovereign Debt Dynamics

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    The Southern District of New York’s recent ruling in Hamilton Reserve Bank v. Sri Lanka, which provides sovereigns with a de facto bankruptcy stay in restructuring scenarios, may create uncertain consequences for sovereign creditors and borrowers alike, says Jeff Newton at Omni Bridgeway.

  • Reimagining Law Firm Culture To Break The Cycle Of Burnout

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    While attorney burnout remains a perennial issue in the legal profession, shifting post-pandemic expectations mean that law firms must adapt their office cultures to retain talent, say Kevin Henderson and Eric Pacifici at SMB Law Group.

  • What Are The Pros And Cons Of Selling A Bankruptcy Claim?

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    As companies navigate financial uncertainties and market challenges, they should understand the advantages and disadvantages of selling a bankruptcy claim, so that they can monetize it with confidence and minimize the risk that amounts received in connection with a sale will be subject to potential disgorgement, says Evelyn Meltzer at Troutman Pepper.

  • Series

    Competing In Dressage Makes Me A Better Lawyer

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    My lifelong participation in the sport of dressage — often called ballet on horses — has proven that several skills developed through training and competition are transferable to legal work, especially the ability to harness focus, persistence and versatility when negotiating a deal, says Stephanie Coco at V&E.

  • Ch. 11 Ruling Highlights 'Two-Step' Challenges In 4th Circ.

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    A North Carolina bankruptcy court’s recent ruling in Bestwall’s Chapter 11 case, and the decision's interpretation of Fourth Circuit law, suggests that, compared to other circuits, it may be more difficult to dismiss so-called Texas Two-Step bankruptcy cases within the Fourth Circuit, say Brittany Falabella and Kollin Bender at Hirschler Fleischer.

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