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

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

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    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

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    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

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    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

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    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.

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    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

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    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

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    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.

  • Justices Could Use Purdue To Resolve Related Circuit Split

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    The U.S. Supreme Court will soon hear Harrington v. Purdue Pharma to determine the validity of nonconsensual third-party releases in bankruptcy, but justices should also take the opportunity to resolve a related circuit split over the constitutional authority of bankruptcy judges to issue final rulings on such releases, says Benjamin Feder at Kelley Drye.

  • Feds' Long-Term Debt Proposal Could Be Costly For US Banks

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    Federal banking regulators recently released a proposal for long-term debt requirements for certain U.S. banking organizations, which would significantly increase the cost of capital for most covered organizations, and the burden would be exacerbated by other factors in the current lending environment, say Matthew Bisanz and Anna Pinedo at Mayer Brown.

  • Maximizing Law Firm Profitability In Uncertain Times

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    As threats of an economic downturn loom, firms can boost profits by embracing the power of bottom-line management and creating an ecosystem where strategic financial oversight and robust timekeeping practices meet evolved client relations, says Shireen Hilal at Maior Strategic Consulting.

  • USW Ruling Highlights Successor Liability In Bankruptcy Sale

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    A Delaware federal court's recent decision in United Steelworkers v. Braeburn is important for potential asset purchasers in Section 363 bankruptcy sales as it found the purchaser was subject to obligations under the National Labor Relations Act notwithstanding language in the sale approval order transferring the debtor's assets free and clear of successor liability, say attorneys at Arnold & Porter.

  • 5th Circ. Ruling Reminds Attys That CBP Can Search Devices

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    The Fifth Circuit’s recent Malik v. Department of Homeland Security decision adds to the chorus of federal courts holding that border agents don’t need a warrant to search travelers’ electronic devices, so attorneys should consider certain special precautions to secure privileged information when reentering the U.S., says Jennifer Freel at Jackson Walker.

  • Avoiding The Ethical Pitfalls Of Crowdfunded Legal Fees

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    The crowdfunding of legal fees has become increasingly common, providing a new way for people to afford legal services, but attorneys who accept crowdsourced funds must remember several key ethical obligations to mitigate their risks, say Hilary Gerzhoy and Julienne Pasichow at HWG.

  • Ch. 12 Ruling Is A Helpful Addition To Interest Rate Case Law

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    In its recent In re: Topp ruling, the Eighth Circuit addressed the question of which rate of interest debtors should pay under a bankruptcy plan, showing that the choice of interest rate plan is a factual issue subject to appellate review for clear error, and not a legal issue subject to de novo review, says Donald Swanson at Koley Jessen.

  • Section 363 Ruling Lines Up With Avoidance Action Precedent

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    While it is safe to say that avoidance actions in bankruptcy cases are the exception, not the rule, when selling assets in a Section 363 sale, the Eighth Circuit’s recent ruling in Simply Essentials’ Chapter 5 case reveals uniformity among courts that have considered the issue, says Daniel Lowenthal at Patterson Belknap.

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