Bankruptcy

  • February 06, 2024

    NY Judge Says Firm Can't Rep Debtor And Then Defendant

    A New York law firm cannot represent the former manager of a now-bankrupt Brooklyn hotel project in an adversary suit by the hotel's bankruptcy trustee, a federal judge determined, because the firm previously represented the hotel through its entire Chapter 11 case.

  • February 06, 2024

    Kwok Trustee's Clawback Targets Fight Extension Request

    Several targets of forthcoming clawback actions by the Chapter 11 trustee overseeing Chinese exile Ho Wan Kwok's bankruptcy asked a Connecticut bankruptcy judge to deny the trustee's request to extend the statute of limitations, arguing that Congress provided no such remedy.

  • February 06, 2024

    NY Marketing Co. Gets OK For $51M Sale To Lender

    The marketing firm Troika Media Group received final approval Tuesday of its $11 million debtor-in-possession loan from secured lender Blue Torch Finance, and for its $51 million credit sale to Blue Torch.

  • February 06, 2024

    Boy Scout Victims Can't Redo Box Check Mistake, Court Says

    A group of childhood sexual abuse survivors who say they inadvertently elected for a quicker but smaller claims pay out from the Boy Scouts of America can't reverse their selection, a Delaware bankruptcy judge ruled, saying the motions to revise their ballots is a request to modify a confirmed Chapter 11 plan.

  • February 06, 2024

    Man Used Investment Fund To Run Ponzi Scheme, Feds Say

    An Illinois man was arraigned Tuesday on charges that he used two investment companies to induce victims to invest with the promise of large returns, only to pocket the cash and fund a lavish lifestyle.

  • February 06, 2024

    McDonald's Franchisee Settles Sex Assault Lawsuit For $4.4M

    A bankrupt McDonald's franchisee will pay $4.35 million to end a lawsuit from the family of a 14-year-old worker raped by a manager who had previously been convicted of sexually assaulting a child, according to a petition to approve the deal in Pennsylvania state court.

  • February 06, 2024

    NanoString Can Tap $142.5M DIP As It Weighs Ch. 11 Sale

    Life sciences company NanoString Technologies Inc. received a Delaware bankruptcy judge's approval Tuesday to borrow a portion of $142.5 million in Chapter 11 financing that the company will use to support operations while assessing outside offers to buy its business.

  • February 06, 2024

    Ex-Bankruptcy Judge Taps McKool Smith Amid Ethics Scandal

    Former Texas bankruptcy Judge David R. Jones has hired McKool Smith to represent him in the lawsuit that revealed his longtime romantic relationship with a Jackson Walker LLP attorney and sparked a major judicial ethics scandal.

  • February 06, 2024

    SAS Gets Clearance For Ch. 11 Plan Vote

    A New York bankruptcy judge on Tuesday congratulated SAS, the Stockholm-based owner of Scandinavian Airlines, for avoiding turbulence in its Chapter 11 case and granted the debtor permission at a hearing to send its reorganization plan out for a creditor vote.

  • February 06, 2024

    Giuliani's Chapter 11 Choice Will Help Him Keep Control

    When Rudy Giuliani filed for bankruptcy the day after two Georgia poll workers got a green light to immediately start collecting their $148 million defamation judgment against him, he chose a kind of filing — Chapter 11 — more commonly used by corporations than individuals for one reason: control.

  • February 06, 2024

    Sealed BlockFi Deal With 3AC In Ch. 11 Gets Court OK

    A New Jersey bankruptcy judge on Tuesday approved a settlement between defunct cryptocurrency exchange BlockFi Inc. and hedge fund Three Arrows Capital to release dueling claims against each other for hundreds of millions of dollars, but declined to unseal it, saying it would be "counterintuitive" to make the details freely available.

  • February 06, 2024

    Deal Reached To Fund E-Bike Co.'s Ch. 11 Admin Expenses

    An e-bike rental company and creditors have struck a budget agreement for administrative expenses after the company urged a Florida federal court to give final approval for $25.1 million in debtor-in-possession financing to fund operations through its Chapter 11 bankruptcy proceedings.

  • February 06, 2024

    IMedia Asks For More Time To Get Ch. 11 Plan Confirmed

    Bankrupt home shopping business iMedia Brands asked a Delaware judge to extend the period during which it has the exclusive window to confirm a Chapter 11 plan, saying it is well on its way toward implementing a plan centered on a settlement with the buyers of its assets and its secured lenders.

  • February 05, 2024

    Kwok Trustee Makes Case For $13.5M Private Jet Proceeds

    Chinese exile and accused fraudster Ho Wan Kwok joked about being "poor" on social media while funding and using a Bombardier private jet that was transferred through shell entities and later sold for $13.5 million, lawyers for a bankruptcy trustee told a judge on Monday.

  • February 05, 2024

    NY Judge Floats Nixing Some AG Claims From NRA Trial

    A New York state judge on Monday raised the prospect of dismissing claims from the trial of the National Rifle Association and key executives, after the New York attorney general's office rested its case in chief alleging widespread corruption at the nonprofit gun rights organization.

  • February 05, 2024

    Byju's Lenders Want To Claw Back $533M Hedge Fund Pay

    The U.S. arm of Indian technology giant Byju's told a Delaware bankruptcy judge Monday the subsidiary will use its Chapter 11 case to try clawing back more than half a billion dollars transferred to a hedge fund that provided a pancake house as its address in regulatory filings.

  • February 05, 2024

    Packable's Creditors Can Pursue Breach Of Fiduciary Claims

    A Delaware bankruptcy judge granted unsecured creditors of e-commerce seller Packable Holdings derivative standing to pursue breach of fiduciary duty claims in an adversary complaint alleging that the company's mismanagement led to its failure.

  • February 05, 2024

    NY Diocese Says Court Shouldn't Resurrect Disputed Claims

    The Roman Catholic Diocese of Rockville Centre told a New York federal court that 31 sex abuse claims dismissed by a bankruptcy judge in its Chapter 11 case shouldn't be revived on appeal because they were accusations against people and institutions the diocese doesn't control.

  • February 05, 2024

    Audacy Abandons BMI Merger Suit With $25.4M Stock Deal

    Audacy Inc. has agreed to drop a potential shareholder lawsuit over performing rights company Broadcast Music Inc.'s sale to an investor group in exchange for at least $25.4 million in stock under a settlement approved by a Texas bankruptcy judge on Monday.

  • February 05, 2024

    Workers Want $500K Fee Award From Defaulting Restaurateur

    Celebrity chef Mike Isabella's refusal to admit that he stiffed his former staff on wages forced worker-side attorneys to expend thousands of unnecessary hours in pursuit of a default judgment, workers told a Maryland federal court in a bid to secure nearly $500,000 in attorney fees and expenses.

  • February 05, 2024

    US Trustee Balks At BlockFi Bid To Seal 3AC Deal

    An agreement between former cryptocurrency exchange BlockFi Inc. and defunct hedge fund Three Arrows Capital that released a tangle of claims against each other should be public, the Office of the U.S. Trustee told a New Jersey bankruptcy court Monday, adding that sealing the entire settlement keeps information from parties that might object to the deal.

  • February 05, 2024

    Biotech Co. Hits Ch. 11, Blames Drug Misfires, Criminal Case

    DMK Pharmaceuticals has applied for Chapter 11 protection in Delaware, citing recent clinical trial failures and product recalls, as well as the government's allegation that a subsidiary engaged in criminal activities, as reasons for seeking bankruptcy relief.

  • February 05, 2024

    Expedia Must Face Bankrupt Swiss Rival's Antitrust Claims

    A federal court in Washington state has refused to toss claims that Expedia drove a competing hotel booking website out of business by using its control over Trivago to change the price comparison site's auction process for the placement of listings.

  • February 05, 2024

    Zymergen Ch. 11 Plan Confirmed After Investor Objection

    Biotechnology company Zymergen received confirmation of its Chapter 11 plan Monday at a hearing in Delaware bankruptcy court after resolving an objection to the plan from a class of investors suing the company.

  • February 05, 2024

    WeWork Presses Landlords For Ch. 11 Lease Concessions

    Flexible office space provider WeWork Inc. pushed hard in court Monday against landlords that haven't engaged in lease concession negotiations in the company's Chapter 11 case, telling a New Jersey bankruptcy judge that without widespread support from its rental counterparties, the debtor's restructuring plans are dead.

Expert Analysis

  • Preparing Law Students For A New, AI-Assisted Legal World

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    As artificial intelligence rapidly transforms the legal landscape, law schools must integrate technology and curricula that address AI’s innate challenges — from ethics to data security — to help students stay ahead of the curve, say Daniel Garrie at Law & Forensics, Ryan Abbott at JAMS and Karen Silverman at Cantellus Group.

  • Sellers Seeking Best Deal Should Focus On Terms And Price

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    Rising interest rates and a decline in the automotive mergers and acquisitions market mean that a failed deal carries greater stakes, and sellers therefore should pursue not only the optimum price but also the optimum terms to safeguard their agreement, says Joseph Aboyoun at Fox Rothschild.

  • General Counsel Need Data Literacy To Keep Up With AI

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    With the rise of accessible and powerful generative artificial intelligence solutions, it is imperative for general counsel to understand the use and application of data for myriad important activities, from evaluating the e-discovery process to monitoring compliance analytics and more, says Colin Levy at Malbek.

  • Rite Aid's Reasons For Ch. 11 Go Beyond Opioid Suits

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    Despite opioid-related lawsuits being the perceived reason that pushed Rite Aid into bankruptcy, the company's recent Chapter 11 filing reveals its tenuous position in the pharmaceutical retail market, and only time will tell whether bankruptcy will right-size the company, says Daniel Gielchinsky at DGIM Law.

  • Navigating Discovery Of Generative AI Information

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    As generative artificial intelligence tools become increasingly ubiquitous, companies must make sure to preserve generative AI data when there is reasonable expectation of litigation, and to include transcripts in litigation hold notices, as they may be relevant to discovery requests, say Nick Peterson and Corey Hauser at Wiley.

  • Finding Focus: Strategies For Attorneys With ADHD

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    Given the prevalence of ADHD among attorneys, it is imperative that the legal community gain a better understanding of how ADHD affects well-being, and that resources and strategies exist for attorneys with this disability to manage their symptoms and achieve success, say Casey Dixon at Dixon Life Coaching and Krista Larson at Stinson.

  • A Look At DOJ's New Nationwide Investment Fraud Approach

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    Investment fraud charges are increasingly being brought in unlikely venues across the country, and the rationale behind the U.S. Department of Justice's approach could well be the heightened legal standards in connection with prosecuting investment fraud, says Jonathan Porter at Husch Blackwell.

  • Decoding The Digital Asset Landscape In Bankruptcy

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    Recent cases show the explosion of cryptocurrency as an asset class has created new challenges for debtors-in-possession, bankruptcy trustees, and federal and state receivers, and fiduciaries will have to consider a number of legal and practical considerations when determining how to manage these assets in insolvency, say David Castleman at Otterbourg and Anthony Facciano at Stretto.

  • How Fla. Bankruptcy Ruling May Affect Equity Owners

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    A Florida bankruptcy court’s recent ruling in Vital Pharmaceuticals — which rejected the Third Circuit’s Majestic Star decision that determined a bankrupt corporation’s flow-through status was not protected by the automatic stay — may significantly affect how equity owners can mitigate the impact of flow-through structures in bankruptcy, say Eric Behl-Remijan and Natasha Hwangpo at Ropes & Gray.

  • Calif. Ruling May Open Bankruptcy Trustees To Tort Liability

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    In Martin v. Gladstone, a recent California appellate court decision, the application of tort concepts to bankruptcy trustees could pose a new concern for trustees and federal receivers when controlling and maintaining commercial property, says Jarrett Osborne-Revis at Buchalter.

  • Co. Directors Must Beware Dangers Of Reverse Factoring

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    New accounting requirements governing the disclosure of so-called reverse-factoring programs have revealed billions of dollars worth of hidden liabilities on companies’ ledgers, and directors of corporate boards should review their companies’ books for this hidden danger, say Garland Kelley at Looper Goodwine, Amin Al-Sarraf at Locke Lord and Jill Basinger at Discovery Land.

  • Attorneys, Law Schools Must Adapt To New Era Of Evidence

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    Technological advancements mean more direct evidence is being created than ever before, and attorneys as well as law schools must modify their methods to account for new challenges in how this evidence is collected and used to try cases, says Reuben Guttman at Guttman Buschner.

  • Why 7th Circ. Libel Ruling Is Crucial For The Media

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    As more defamation plaintiffs attorneys argue that allowing a published statement to remain online after additional evidence of falsity emerges equates to actual malice, the Seventh Circuit's recent National Police Association v. Gannett opinion should be lauded by the media and online publishers as a favorable decision, say attorneys at Vedder Price.

  • Tips For Litigating Against Pro Se Parties In Complex Disputes

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    Litigating against self-represented parties in complex cases can pose unique challenges for attorneys, but for the most part, it requires the same skills that are useful in other cases — from documenting everything to understanding one’s ethical duties, says Bryan Ketroser at Alto Litigation.

  • 3 Cases Show Tensions Between Arbitration And Insolvency

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    The intersection of international arbitration and insolvency may influence the formulation of litigation strategy on a global scale, and several recent cases illustrate the need for counsel to understand how courts are varying in their approaches, say attorneys at Skadden.

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