Bankruptcy

  • January 31, 2024

    US Bid To Seize Assets In BlockFi Case Hits Another Snag

    A New Jersey bankruptcy judge dealt another blow to the Justice Department's efforts to seize assets stemming from criminal conduct related to the BlockFi bankruptcy, saying the U.S. government cannot pause an adversary case through criminal forfeiture.

  • January 31, 2024

    Renewable Lumber Biz Can Tap $12M Of DIP For Ch. 11 Plan

    Renewable lumber producer Restoration Forest Products Group LLP received interim approval from a Delaware bankruptcy judge on Wednesday for its $93.3 million debtor-in-possession loan, keeping it on track to confirm a prepackaged Chapter 11 plan in March.

  • January 31, 2024

    FTX Intends To Pay Customers In Full Under New Ch. 11 Plan

    Attorneys for bankrupt cryptocurrency exchange FTX Trading Ltd. told a Delaware judge on Wednesday that it intends to file a new Chapter 11 plan that projects payment in full for all customers and general unsecured creditors.

  • January 31, 2024

    FTX Can Estimate Digital Claims In US Dollars, Judge Says

    Bankrupt cryptocurrency exchange FTX Trading Ltd. can estimate the value of digital asset claims of customers in U.S. dollars after a Delaware judge said Wednesday that conducting individual valuations of each claim would be costly and time-consuming.

  • January 31, 2024

    NYC Developer Gets OK To Seek Votes For Ch. 11 Plan

    The developer of a stalled construction project in New York City's West Chelsea can solicit votes on its most recent Chapter 11 plan, which includes an $87.4 million sale of the property, a Delaware bankruptcy judge said at a hearing Wednesday.

  • January 31, 2024

    Terraform Says Impending SEC Fine Proves It's In Distress

    Cryptocurrency company Terraform Labs told a Delaware bankruptcy judge on Wednesday the mere fact it could face a ruinous U.S. Securities and Exchange Commission fine in the future justifies Chapter 11 protection today, arguing a recent judgment in favor of the regulatory agency attests to its financial distress.

  • January 31, 2024

    Giuliani Seeks Ch. 11 Apartment Sale, Sets Cooperative Tone

    Lawyers for Rudy Giuliani said Wednesday they will seek permission to retain Sotheby's to help sell the former New York City mayor's $6.1 million Manhattan apartment, telling a New York judge he was cooperating with a bankruptcy watchdog even as creditors called his financial filings inadequate.

  • January 31, 2024

    Calif. Says FDIC Owes Signature Bank's Unpaid Taxes

    California's state tax collection agency asked a New York federal court to force the Federal Deposit Insurance Corp. to pay five years' worth of unpaid taxes on behalf of the shuttered Signature Bank, saying the FDIC is responsible for the debt as the bank's receiver.

  • January 31, 2024

    SVB Cayman Unit Seeks FDIC Probe On Customer Deposits

    Liquidators of the Cayman Islands branch of defunct Silicon Valley Bank and U.S. bank regulators faced harsh questions on Wednesday from a New York bankruptcy judge as the liquidators sought the ability to conduct discovery regarding the fate of $477 million in deposits.

  • January 30, 2024

    Lordstown Wants More Time To File Ch. 11 Plan

    Electric truckmaker Lordstown has asked a Delaware bankruptcy judge to give the Ohio company additional time to submit a Chapter 11 plan before anyone else is allowed to do so in its case, saying negotiations have been productive and that the extra time will allow the parties to resolve disputes over the plan.

  • January 30, 2024

    Va. Appeals Court Says Med Mal Suit Not Lost In Bankruptcy

    A Virginia appellate panel Tuesday found a trial court had wrongly dismissed the malpractice suit of a woman who entered and emerged from bankruptcy while the case was pending, saying she regained her claims when the bankruptcy ended.

  • January 30, 2024

    Kwok Trustee Can Probe Law Firm Pick & Zabicki, Car Dealers

    The Chapter 11 trustee overseeing the case of Chinese exile Ho Wan Kwok received approval from a Connecticut bankruptcy judge to probe Pick & Zabicki LLP, a law firm paid $37,500 by Kwok's son, and two luxury car dealers in connection with its asset recovery operation.

  • January 30, 2024

    Judge Nixes Cryptic Ch. 11 Disclosures For NY Diocese

    A New York bankruptcy judge shot down proposed disclosure statements in two competing Chapter 11 plans for the Diocese of Rochester on Tuesday, saying that since they were both unclear to him, they would likely be indecipherable for hundreds of sexual abuse survivors who need to vote on the reorganization plans.

  • January 30, 2024

    NRA GC Says LaPierre Sidestepped Some Legal Approvals

    The general counsel of the National Rifle Association defended former CEO Wayne LaPierre as "very open and honest" during testimony in the New York attorney general's fraud trial Tuesday, but said LaPierre at times made consequential legal decisions without consulting him or the organization's board.

  • January 30, 2024

    US Trustee Opposes 'Backdoor' Releases In Genesis Ch. 11

    The U.S. Trustee's Office is challenging cryptocurrency company Genesis Global's Chapter 11 plan, arguing it would improperly pay certain legal fees without court approval, include overbroad releases and allow for an "impermissible backdoor third-party release."

  • January 30, 2024

    Trustee Sues Big Investors In Failed Calif. Debt Firm

    A court-appointed bankruptcy trustee has asked a judge to help prioritize more than $100 million in claims from investors in a defunct California debt relief law firm that has been accused of orchestrating a "Ponzi scheme" to repeatedly sell stakes in the same set of client files.

  • January 30, 2024

    US Trustee Takes Aim At Syracuse Diocese Ch. 11 Releases

    The U.S. Trustee's Office objected Tuesday to the Chapter 11 plan disclosure statement of the Roman Catholic Diocese of Syracuse, New York, arguing the plan includes impermissible nonconsensual third-party releases that are too broad and that the document omits key information needed for creditors to cast their ballots.

  • January 30, 2024

    Fennemore Craig Growing In Calif. With Sullivan Hill Merger

    In its latest West Coast expansion, Fennemore Craig PC announced Tuesday it is widening its footprint in San Diego through a merger with Sullivan Hill, with the latter's experts in insurance, construction, commercial bankruptcy and employment law joining Fennemore's existing four-attorney team in the city.

  • January 30, 2024

    Watchdog Wants Ch. 11 Fee Nixed Over Attorney-Judge Ties

    The U.S. Trustee's Office told a Texas bankruptcy court Tuesday that a $257,000 fee application submitted by a former Jackson Walker attorney working for IEH Auto Parts Holding LLC should be denied in its entirety because the lawyer did not disclose a personal relationship with a since-resigned judge serving as a mediator in the proceedings.

  • January 30, 2024

    Terraform Will Use Ch. 11 To Craft Appeal Of SEC Crypto Case

    An executive for crypto company Terraform Labs told the Delaware bankruptcy court Tuesday it has sought Chapter 11 protection mainly to delay a potentially existential U.S. Securities and Exchange Commission penalty tied to the implosion of its algorithmic stablecoin, the collapse of which in 2022 provoked a widespread crash in cryptocurrency markets.

  • January 30, 2024

    Coffee Co. Says Ch. 11 Sale May Sort Nicaraguan Seizure Row

    Counsel for coffee supplier Mercon Coffee Group told a New York bankruptcy judge Tuesday the company hopes the progress it has made toward a sale of its assets will help resolve the seizure of its Nicaraguan subsidiary in a tax dispute.

  • January 30, 2024

    Sustainable Logging Co. Hits Ch. 11 With $367M Debt

    Logging operation Restoration Forest Products Group has filed for Chapter 11 protection in Delaware with $367 million in funded debt obligations and a prepackaged plan of reorganization through a debt-equity swap.

  • January 29, 2024

    Split Pa. Justices Let Bankrupt City's Receiver Keep Power

    Pennsylvania's Supreme Court on Monday split over a state-appointed receiver's ability to restrict the administrative powers of elected city officials, affirming an order that let the receiver take control of the troubled town of Chester's finances and day-to-day operations.

  • January 29, 2024

    Fruit Co.'s Ex-CEO Calls Ch. 11 Deal A 'Manipulation' Tactic

    The former CEO of stone fruit producer Prima Wawona objected Monday to the company's recent proposal for a settlement fast-tracking its insolvency case, telling Delaware's bankruptcy court it violates protocols and is an attempted "manipulation" of the Chapter 11 process.

  • January 29, 2024

    US Trustee, Rite Aid Negotiate Revised Mediation Order

    A New Jersey bankruptcy judge said Monday he would approve a revised mediation order in the bankruptcy of Rite Aid Corp. after the U.S. Trustee's Office suggested changes to an earlier order.

Expert Analysis

  • Why Delaware ABCs Are No Longer As Easy As 1-2-3

    Author Photo

    In light of the Court of Chancery's recent focus on additional disclosures, the assignment for the benefit of creditors process in Delaware may no longer be as efficient as it once was, and companies should be prepared to provide significantly more information leading up to an ABC, say attorneys at Goodwin.

  • Diamond Sports Cases Shed Light On Executory Contracts

    Author Photo

    Recent Texas bankruptcy cases involving telecast fees payable by Diamond Sports to certain Major League Baseball teams provide a window into the dynamic relationship that can develop between debtors and counterparties under some executory contracts, say Joseph Badtke-Berkow and Robin Spigel at Allen & Overy.

  • Series

    Playing In A Rock Cover Band Makes Me A Better Lawyer

    Author Photo

    Performing in a classic rock cover band has driven me to hone several skills — including focus, organization and networking — that have benefited my professional development, demonstrating that taking time to follow your muse outside of work can be a boon to your career, says Michael Gambro at Cadwalader.

  • Series

    The Pop Culture Docket: Judge Espinosa On 'Lincoln Lawyer'

    Author Photo

    The murder trials in Netflix’s “The Lincoln Lawyer” illustrate the stark contrast between the ethical high ground that fosters and maintains the criminal justice system's integrity, and the ethical abyss that can undermine it, with an important reminder for all legal practitioners, say Judge Adam Espinosa and Andrew Howard at the Colorado 2nd Judicial District Court.

  • Balancing Justice And Accountability In Opioid Bankruptcies

    Author Photo

    As Rite Aid joins other pharmaceutical companies in pursuing bankruptcy following the onslaught of state and federal litigation related to the opioid epidemic, courts and the country will have to reconcile the ideals of economic justice and accountability against the U.S. Constitution’s promise of a fresh start through bankruptcy, says Monique Hayes at DGIM Law.

  • Proactive Measures While NY Foreclosure Law Is In Limbo

    Author Photo

    While questions about the scope and constitutionality of New York's Foreclosure Abuse Prevention Act might not be resolved by courts for years, lenders, borrowers and other interested parties can take action to protect their rights and potentially expedite appellate review, say Allison Schoenthal and Andrew Kim at Goodwin.

  • Unearthing The Lesser-Known 'Buried Facts' Doctrine

    Author Photo

    A New York federal judge’s recent suggestion that the “buried facts” doctrine may be applicable in the fraud trial of FTX cofounder Sam Bankman-Fried should serve as a reminder to attorneys in all kinds of cases involving corporate disclosures that this lesser-known rule could torpedo their defense, say Corban Rhodes and Li Yu at DiCello Levitt.

  • Opinion

    Newman Suspension Shows Need For Judicial Reform

    Author Photo

    The recent suspension of U.S. Circuit Judge Pauline Newman following her alleged refusal to participate in a disability inquiry reveals the need for judicial misconduct reforms to ensure that judges step down when they can no longer serve effectively, says Aliza Shatzman at The Legal Accountability Project.

  • 9th Circ. Ruling Expands The Horizons Of Debt Discharge

    Author Photo

    The Ninth Circuit Bankruptcy Appellate Panel’s recent ruling in RS Air v. NetJets demonstrates that creditors should not be quick to conclude that their recoveries are limited if a debtor commences bankruptcy and receives a discharge, and should instead consider other potential paths for recovery, like alter ego claims, say Dania Slim and Claire Wu at Pillsbury.

  • How And Why Your Firm Should Implement Fixed-Fee Billing

    Author Photo

    Amid rising burnout in the legal industry and client efforts to curtail spending, pivoting to a fixed-fee billing model may improve client-attorney relationships and offer lawyers financial, logistical and stress relief — while still maintaining profit margins, say Kevin Henderson and Eric Pacifici at SMB Law Group.

  • Opinion

    Judicial Independence Needs Defense Amid Political Threats

    Author Photo

    Amid recent and historic challenges to the judiciary from political forces, safeguarding judicial independence and maintaining the integrity of the legal system is increasingly urgent, says Robert Peck at the Center for Constitutional Litigation.

  • How Law Firms Can Use Account-Based Marketing Strategies

    Author Photo

    Amid several evolving legal industry trends, account-based marketing can help law firms uncover additional revenue-generating opportunities with existing clients, with key considerations ranging from data analytics to relationship building, say Jennifer Ramsey at stage LLC and consultant Gina Sponzilli.

  • Why Bankruptcy Is A Budding Alternative For Cannabis Cos.

    Author Photo

    A set of recent decisions from a California bankruptcy court regarding The Hacienda Co. signal a retreat from a zero-tolerance policy requiring dismissal of any bankruptcy case involving a cannabis-related business, and show why cannabis companies could benefit from having full access to the bankruptcy system, say George Singer and Rachel Gillette at Holland & Hart.

  • Leveraging Municipal Bonds For Green Energy Finance

    Author Photo

    The U.S.'s transition to renewable energy will require collaboration between public and private capital sources — and that means that lawyers used to working in corporate finance must understand how the municipal bond market functions differently, due to its grounding in the U.S. Constitution, says Ann Fillingham at Dykema.

  • Strategic Succession Planning At Law Firms Is Crucial

    Author Photo

    Senior partners' reluctance to retire, the rise of the nonequity partner tier and generational differences in expectations are all contributing to an increasing number of departures from BigLaw, making it imperative for firms to encourage retirement among senior ranks and provide clearer leadership pathways to junior attorneys, says Laura Leopard at Leopard Solutions.

Want to publish in Law360?


Submit an idea

Have a news tip?


Contact us here
Can't find the article you're looking for? Click here to search the Bankruptcy archive.
Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!