Large Cap
-
August 01, 2024
FTX's Ch. 11 Plan Sweetens Crypto Creditor Claim Market
A byproduct of the collapse of large cryptocurrency businesses — their bankruptcy claim market — has developed as an unlikely source of security and a rare positive outcome in the fallout from the so-called crypto winter, partly reflected in BlockFi's sale of roughly $875 million in allowed claims against FTX.
-
July 31, 2024
Guo Judge Wants To Know If $26.5M Mansion Will Be Safe
A Connecticut bankruptcy judge has ordered an alleged shell company to explain whether it will stop funding a security detail at an uninsured $26.5 million New Jersey mansion that federal prosecutors and a Chapter 11 trustee are eyeing as an asset that could reimburse a Chinese exile's creditors and fraud victims.
-
July 31, 2024
Steward Health Care Gets OK To Close 2 Mass. Hospitals
A Texas bankruptcy judge Wednesday approved the closure of two Massachusetts hospitals owned by Steward Health Care after the debtor said that it was unable to find buyers for them.
-
July 31, 2024
Ex-Byju's Exec Faces $10K Daily Contempt Fine
A Delaware bankruptcy judge on Wednesday ordered a former executive of the troubled U.S.-based affiliate of Indian educational technology giant Byju's to pay $10,000 a day in contempt sanctions for failing to provide court-ordered discovery, while his attorneys asked for the court's permission to exit the case.
-
July 31, 2024
Judge Urges Narrowing Of LaVie Creditors' Ch. 11 Discovery
A Georgia bankruptcy judge signaled his approval Wednesday of a set of discovery demands made by unsecured creditors of nursing facility owner LaVie Care Centers, but gave the parties time to continue discussions in hopes of narrowing the scope of the discovery.
-
July 31, 2024
Conn's Bankruptcy Shows Retail Stressors Converging
While retailers have been under pressure for years, Conn's bankruptcy last week illustrates the convergence of two acute and growing problems that have taken hold this year: lower-income consumers who are cutting spending and difficulty selling the same kinds of home goods that flew off the shelves earlier in the COVID-19 pandemic.
-
July 31, 2024
Meet The Attys Working To Confirm Robertshaw's Ch. 11 Plan
Appliance-parts maker Robertshaw on Friday will ask a Texas bankruptcy judge to approve its Chapter 11 liquidation and wind-down as it hopes to close out a bankruptcy fraught with lender power struggles. Guiding Robertshaw toward its exit is a team of Latham & Watkins LLP and Hunton Andrews Kurth LLP attorneys with experience in bankruptcy, litigation and private equity deals.
-
July 30, 2024
FTX Users Say Sullivan & Cromwell Must Face Abetting Claims
FTX customers told a Florida federal judge on Tuesday that Sullivan & Cromwell LLP can't dismiss customer claims it aided and abetted the defunct cryptocurrency exchange's fraud as "speculative allegations" when the customers' complaint "paints a much more detailed and nefarious picture."
-
July 30, 2024
FTX Exec Gets Prison Report Date Delayed After Dog Attack
A New York federal judge on Tuesday allowed ex-FTX executive Ryan Salame to delay his surrender date to begin his prison term from August to October, as he was forced to undergo medical treatment and surgery after being mauled by a German shepherd while visiting a friend's house last month.
-
July 30, 2024
Ebix Ch. 11 Plan Ruling Held Up By Liability Release Dispute
A Texas bankruptcy judge declined to rule Tuesday on Ebix Inc.'s request for Chapter 11 plan confirmation, telling the parties he needed more time to sort out a dispute over third-party releases contained in the reorganization deal.
-
July 30, 2024
Ebix Ch. 11 Exit Hinges On Judge's Third-Party Release Ruling
Ebix Inc. is on track to turn over its business to its chief executive as the insurance software company prepares to exit bankruptcy, but the debtor first needs to win a Texas bankruptcy judge's approval of contested third-party releases contained in its Chapter 11 plan.
-
July 30, 2024
Mass. Says $30M Funding For Steward Will Fund Quick Sales
The Commonwealth of Massachusetts has told a Texas bankruptcy judge that its agreement to pay $30 million to debtor Steward Health Care is designed to help fund operations at the debtor's struggling hospitals while sales are pursued.
-
July 30, 2024
SEC Sues NC Investment Adviser Over Bogus Guarantees
A North Carolina investment adviser lied to clients about the safety of their investments when he sold them on risky corporate bonds issued by a financial services company that went bankrupt, the U.S. Securities and Exchange Commission said in a newly filed complaint.
-
July 29, 2024
Comcast Reaches Deal To Bring Bally Sports Back To Xfinity
Comcast has reached an agreement with the bankrupt owner of Bally Sports to again distribute its regional sports networks to Xfinity TV customers, according to an announcement made Monday.
-
July 29, 2024
Celsius Blasted For Undisclosed Crypto Distribution Limits
A New York bankruptcy judge Monday chided the administrators of the remaining assets of defunct cryptocurrency investment platform Celsius Network for what he said were undisclosed limits on crypto distribution to hundreds of the exchange's former customers.
-
July 29, 2024
Fisker Reaches Deal To Put Brakes On Ch. 7 Conversion
Defunct electric-vehicle maker Fisker Inc. told a Delaware bankruptcy judge on Monday it had reached an agreement with secured creditors to postpone conversion of its insolvency case to a Chapter 7 liquidation, giving the business three weeks to negotiate a potential plan.
-
July 29, 2024
Amex Inks $3M Deal To Settle Girardi Bankruptcy Suit Claims
American Express reached a $3 million deal to settle claims brought by the Girardi Keese bankruptcy trustee accusing the credit giant's banking unit and another subsidiary of enabling $50.25 million in fraudulent transfers as part of the now-defunct law firm's scheme to defraud creditors.
-
July 29, 2024
J&J Ch. 11 Tossed, Steward Gets Subpoena, Zachry Settles
The Third Circuit threw out Johnson & Johnson's second attempt to use bankruptcy to deal with mass talc litigation, Red Lobster won court approval to solicit votes on its Chapter 11 plan, and a Senate committee voted to approve an investigation into bankrupt Steward Health Care and subpoena its chief executive officer. This is the week in bankruptcy.
-
July 29, 2024
Co. Denies Bid At 99 Cents Only Sale, Wants $1.5M Deposit
A California real estate entity urged a Delaware bankruptcy judge to let it reclaim all of a $1.5 million deposit it made in connection to the estate of 99 Cents Only, saying the money was required to attend an auction but the discount retailer is pretending the company won a bid for some of its property.
-
July 29, 2024
NRA Avoids Compliance Monitor In NY AG Case
A Manhattan judge on Monday rejected the New York attorney general's request for a compliance monitor to oversee the National Rifle Association, saying such relief would "result in a long, awkward and potentially speech-chilling government involvement in a political organization."
-
July 29, 2024
Meet The Attorneys In 2U's Bankruptcy Case
Remote learning and accreditation group 2U Inc. has retained a team of experienced debtors' counsel from Latham & Watkins LLP to represent it in its Chapter 11 case.
-
July 26, 2024
FTX's Ryan Salame Asks To Delay Prison After Dog Attack
Former FTX executive Ryan Salame on Friday asked a New York federal judge to delay his prison surrender date because he was recently mauled by a German shepherd and must undergo "urgent and necessary medical treatment and surgery."
-
July 26, 2024
Puerto Rico Fiscal Board Sues To Stop Solar Panel Bill
The Financial Oversight and Management Board for Puerto Rico on Friday sued Gov. Pedro R. Pierluisi to nullify a law extending a program which reduces the cost of solar panels for Puerto Rican households, calling it legislative interference with the island's energy regulator.
-
July 26, 2024
US Trustee Tries To Sink Robertshaw Plan Over Releases
The U.S. Trustee's Office has asked a Texas bankruptcy judge to deny confirmation of Robertshaw's Chapter 11 plan, arguing the appliance parts maker's reorganization scheme contains nonconsensual third-party releases in violation of the U.S. Supreme Court's recent Purdue Pharma decision.
-
July 26, 2024
Online Education Group 2U Gets Interim OK For Ch. 11 Loan
Remote learning and accreditation group 2U Inc. received interim approval on Friday to access $60 million of a $64 million debtor-in-possession financing package to fund its Chapter 11 case.
Expert Analysis
-
Understanding Discovery Obligations In Era Of Generative AI
Excerpt from Practical Guidance
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
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
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
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.
-
5 Key Tips For Attorneys In The Subchapter V Arena
Subchapter V cases present unique challenges for the nondebtor parties-in-interest, and habits developed by attorneys in typical Chapter 11 cases do not necessarily translate, meaning creditors and their counsel should quickly take a proactive role in their cases to protect their interests, which can be done by attending the 341 meeting, analyzing the plan, and more, says Kelly Singer at Squire Patton.
-
Attorneys Have An Ethical Duty To Protect The Judiciary
The tenor of public disagreement and debate has become increasingly hostile against judges, and though the legislative branch is trying to ameliorate this safety gap, lawyers have a moral imperative and professional requirement to stand with judges in defusing attacks against them and their rulings, says Deborah Winokur at Cozen O'Connor.
-
Why The Debt Maturity Wall Is Still A Figment, For Now
While the phenomenon of the debt maturity wall — a growing wall of staggered corporate debt maturities — has been considered a looming problem since the aftermath of the 2008 global financial crisis, it’s unlikely to have significant consequences before 2025 due to factors such as quantitative easing and evolved lending practices, says Michael Eisenband at FTI Consulting.
-
AI Can Help Lawyers Overcome The Programming Barrier
Legal professionals without programming expertise can use generative artificial intelligence to harness the power of automation and other technology solutions to streamline their work, without the steep learning curve traditionally associated with coding, says George Zalepa at Greenberg Traurig.
-
10 Essential Bankruptcy Litigation Tips For In-House Counsel
Bankruptcy litigation is a complex and multifaceted area of law that poses unique challenges for in-house counsel, and there are several tools at legal professionals' disposal, like appraisals and understanding jurisdictions, to stay well-informed and protect their companies' interests, says Alison Ashmore at Dykema.
-
Preparing Law Students For A New, AI-Assisted Legal World
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
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
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
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.