Bankruptcy

  • February 14, 2024

    Bed Bath & Beyond Execs Given Access To $10M In Insurance

    An insurer for bankrupt housewares retailer Bed Bath & Beyond will cover up to $10 million in legal costs incurred by company executives who were subpoenaed or named as defendants in litigation connected to the store, a New Jersey bankruptcy court said.

  • February 14, 2024

    Breast Implant Co. Wants Ch. 11 Sale Closed In 60 Days

    A Delaware bankruptcy judge granted breast implant manufacturer Sientra preliminary approval Wednesday to tap $22.5 million in Chapter 11 financing and start the process of selling its business within a two-month timetable.

  • February 14, 2024

    NY Objects To Rite Aid Bid To Close More Stores

    The state of New York asked a New Jersey bankruptcy judge Wednesday to keep two Rite Aid stores in Buffalo and Poughkeepsie, New York, out of the list of stores slated for closure in the pharmacy chain's Chapter 11 case, saying the closures would reduce pharmacy access for people in those communities.

  • February 14, 2024

    SmileDirectClub Trustee Wants To Cut Leases To Stop Losses

    The Chapter 7 trustee for dental care company SmileDirectClub Inc. submitted an emergency motion in a Texas court to end more than 100 active leases and discard related assets, aiming to slow the depletion of limited resources during the company's liquidation process.

  • February 14, 2024

    Perkins Coie Keeps Malpractice Win Over Trustee's Standing

    Perkins Coie LLP this week secured a Texas state appellate decision that upheld the dismissal of a malpractice lawsuit brought by a bankruptcy trustee for one of the firm's former clients, with the appellate panel concurring with a trial judge that the trustee lacked standing to pursue the claims.

  • February 14, 2024

    Genesis Gets Nod To Sell $1.6B In Grayscale Shares In Ch. 11

    Cryptocurrency lender Genesis Global won a New York bankruptcy judge's approval Wednesday to start selling more than $1.6 billion of shares in Grayscale Investments trusts to fund payouts to creditors, defeating an objection by Digital Currency Group over sale timing and the parent company's plea to consult on transactions.

  • February 14, 2024

    Genetic Testing Co. Invitae Files For Ch. 11 With $1.5B Debt

    California-based genetic testing company Invitae Corp. has filed for Chapter 11 protection in New Jersey with nearly $1.5 billion in debt and what it said is an agreement with senior noteholders to seek a buyer.

  • February 13, 2024

    ABA Asks Agency To End Use Of 'Master,' Citing Slavery Tones

    Calling someone a "court-appointed master" carries negative connotations due to the term's use during slavery, the American Bar Association's president wrote in a letter urging the Administrative Office of the U.S. Courts to adopt the term "court-appointed neutral" instead.

  • February 13, 2024

    NH Power Plant Says Electricity Deal Is Leaving It Broke

    The operator of a biofuel power plant in New Hampshire received the go-ahead from a Delaware bankruptcy judge Tuesday to keep the lights on for another week while it negotiates over a contract the debtor insists is forcing it to produce electricity for free.

  • February 13, 2024

    SAS Ex-Cabin Crew Defends Bid For Pension Pay In Ch. 11

    More than 40 pensioners of bankrupt Scandinavian airline SAS have told a New York bankruptcy court that their claims should not be thrown out, saying SAS cannot brush off its obligations by pointing the finger at the pension fund when the fund acts as its proxy.

  • February 13, 2024

    Voyager Investors Suing Mark Cuban Reach Deal With Gronk

    Investors suing billionaire Mark Cuban over his role in promoting now-bankrupt Voyager Digital Ltd. said Tuesday they had reached a tentative agreement with former NFL star Rob Gronkowski to stay claims tied to his social media posts and appearances boosting the cryptocurrency firm.

  • February 13, 2024

    Creditors Want Ch. 11 Trustee For NJ Defense Contractor

    Creditors of bankrupt defense contractor Marine Electric Systems Inc. asked a New Jersey court to appoint a Chapter 11 trustee, saying that one is needed to counter the "gross mismanagement" by the company's CEO and to save the company "from falling further into chaos and debt."

  • February 13, 2024

    US Asks Court To OK $1.4B Tax Claim Against SVB

    A D.C. federal court should step in and approve a $1.4 billion IRS tax claim against the shuttered Silicon Valley Bank, the U.S. government said Tuesday, saying the court has the authority to circumvent a rejection by the Federal Deposit Insurance Corp., the bank's receiver.

  • February 13, 2024

    Fruit Co. Seeks $122M Private Sale To Avoid Ch. 11 Auction

    California stone fruit producer Prima Wawona has asked a Delaware bankruptcy court to approve a streamlined credit bid sale rather than force it to face the uncertainties of a Chapter 11 auction, given the company's urgent need to address its financial situation.

  • February 13, 2024

    Kidde-Fenwal Row Not For Bankruptcy Court, Insurers Say

    A group of insurers have asked that a Delaware federal court, rather than a bankruptcy court, handle their dispute with Kidde-Fenwal Inc. over whether they owe a defense in thousands of suits the fire-suppression company is facing over so-called forever chemicals.

  • February 13, 2024

    FDA, Creditors Oppose Drugmaker Humanigen's Ch. 11 Sale

    Biopharmaceutical company Humanigen faced fire on multiple fronts Tuesday after it asked the Delaware bankruptcy court to approve a $2 million stalking horse credit bid from its debtor-in-possession lender, an entity founded by the debtor's chief executive, that is opposed by the FDA and certain creditors.

  • February 13, 2024

    LaPierre Defends TV Spots, Celeb Ties As NRA Trial Nears End

    Former National Rifle Association CEO Wayne LaPierre told jurors in New York state court in the final week of trial Tuesday that he went on television and rubbed elbows with celebrities not out of a desire for the spotlight but to anchor the gun group in "mainstream American culture."

  • February 13, 2024

    Troika Strikes Ch. 11 Deal To Release $29M In Escrow

    The bankrupt marketing firm Troika Media Group told a New York court on Tuesday that it had settled a key dispute over its 2022 acquisition of another marketing agency, Converge Direct LLC, agreeing that $29 million being held in escrow should be released and paving the way for the Chapter 11 case to move forward.

  • February 13, 2024

    Santander Blasts Brazilian Airline's $950M DIP Request

    Spanish banking giant Santander, a creditor of GOL Linhas Aereas Inteligentes SA, has asked a New York bankruptcy judge to reject the low-cost Brazilian airline's bid for $950 million in debtor-in-possession financing, alleging it would place new liens on funds on which the bank already has a claim.

  • February 13, 2024

    Troutman Pepper Faces One Of Kwok Trustee's Clawbacks

    The trustee overseeing Chinese exile Ho Wan Kwok's Chapter 11 case has filed an adversary complaint against Troutman Pepper Hamilton Sanders LLP in a Connecticut bankruptcy court, saying Kwok transferred almost $2 million in prepetition funds and more than $80,000 in post-petition funds to the firm through his shell companies.

  • February 13, 2024

    McCarter & English Grows In Miami With Levine Kellogg Atty

    A former Levine Kellogg Lehman Schneider + Grossman LLP litigation and alternative dispute resolution attorney has joined McCarter & English LLP as a partner in Miami, the firm announced Tuesday.

  • February 13, 2024

    Breast Implant Maker Sientra Hits Ch. 11 With $82M In Debt

    Breast implant maker Sientra Inc. has filed for Chapter 11 protection in Delaware bankruptcy court with $82 million in debt, saying it is seeking a buyer for the business in the face of declining sales.

  • February 12, 2024

    WeWork Lenders Blast SoftBank, Ask For Ch. 11 Examiner

    An ad hoc group of WeWork noteholders have urged the bankruptcy court in New Jersey to appoint an examiner in the coworking space company's Chapter 11 proceedings, asserting that "things are not going as planned" due to "fundamental flaws" in the debtor's case and its ties to SoftBank.

  • February 12, 2024

    Aerospace Supplier Can Kick Gulfstream Supply Deal

    A Texas bankruptcy court has said bankrupt supply-chain management company Incora can ditch its contract to buy aerospace parts on behalf of Gulfstream Aerospace Corp., which would repurchase them for fixed prices.

  • February 12, 2024

    Rite Aid Seeks To Extend Ch. 11 Exclusivity To Late April

    Drugstore chain Rite Aid has urged a New Jersey bankruptcy judge to extend its Chapter 11 exclusivity period "out of an abundance of caution," explaining that although the company already filed its plan and disclosure statement, an extension would allow constructive mediation between parties.

Expert Analysis

  • 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.

  • Series

    Writing Thriller Novels Makes Me A Better Lawyer

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    Authoring several thriller novels has enriched my work by providing a fresh perspective on my privacy practice, expanding my knowledge, and keeping me alert to the next wave of issues in an increasingly complex space — a reminder to all lawyers that extracurricular activities can help sharpen professional instincts, says Reece Hirsch at Morgan Lewis.

  • What Lawyers Must Know About Calif. State Bar's AI Guidance

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    Initial recommendations from the State Bar of California regarding use of generative artificial intelligence by lawyers have the potential to become a useful set of guidelines in the industry, covering confidentiality, supervision and training, communications, discrimination and more, say attorneys at Debevoise.

  • Industry Must Elevate Native American Women Attys' Stories

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    The American Bar Association's recent research study into Native American women attorneys' experiences in the legal industry reveals the glacial pace of progress, and should inform efforts to amplify Native voices in the field, says Mary Smith, president of the ABA.

  • Pa. Ruling Shows Why Term Sheet Can Be Worth The Wait

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    A Pennsylvania bankruptcy court’s recent In re: Legarde ruling, holding that a settlement term sheet was enforceable, reminds litigants that it’s crucial to draft a written agreement before leaving mediation in order to resolve potential evidentiary issues and protect against buyer’s remorse, says Brian Shaw at Cozen O'Connor.

  • Understanding Discovery Obligations In Era Of Generative AI

    Excerpt from Practical Guidance
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    Attorneys and businesses must adapt to the unique discovery challenges presented by generative artificial intelligence, such as chatbot content and prompts, while upholding the principles of fairness, transparency and compliance with legal obligations in federal civil litigation, say attorneys at King & Spalding.

  • Asserting 'Presence-Of-Counsel' Defense In Securities Trials

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    As illustrated by the fraud trial of FTX founder Sam Bankman-Fried, defense attorneys in securities trials might consider arguing that counsel had some involvement in the conduct at issue — if the more formal advice-of-counsel defense is unavailable and circumstances allow for a privilege waiver, say Joseph Dever and Matthew Elkin at Cozen O'Connor.

  • Crypto Has Democratized Trading In Bankruptcy Claims

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    Following the pandemic, there has been a wave of cryptocurrency bankruptcies and a related increase in access to information, allowing nontraditional bankruptcy investors to purchase claims and democratizing a once closed segment of alternative investing, says Joseph Sarachek at Strategic Liquidity.

  • The Case For Post-Bar Clerk Training Programs At Law Firms

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    In today's competitive legal hiring market, an intentionally designed training program for law school graduates awaiting bar admission can be an effective way of creating a pipeline of qualified candidates, says Brent Daub at Gilson Daub.

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