Bankruptcy

  • February 07, 2025

    3 Firms Seek To Co-Lead Suits Over Banks' Synapse Ties

    Attorneys from three firms are seeking to represent fintech customers in consolidated class claims in Colorado federal court against several banks over $85 million in funds that went missing after the failure of fintech-to-bank middleman company Synapse Financial.

  • February 07, 2025

    Chancery Tosses $3.4B Hertz Stock Warrant Redemption Suit

    Delaware's Court of Chancery dismissed a suit Friday filed by two Hertz institutional investors accusing the company of relying on an impermissible reinterpretation of a warrant agreement to reject a redemption demand purportedly triggered by the company's post-Chapter 11 recapitalization, finding the plaintiffs' interpretation of the agreement leads to "absurd results."

  • February 07, 2025

    SPAC Market Hums Again Following Multiyear Downturn

    Special purpose acquisition companies are once again asserting their presence in the capital markets and M&A landscape, forming new vehicles at the highest pace in three years — albeit in leaner form than in the last cycle, when many deals ended in busts.

  • February 07, 2025

    For These Victims, Death Came Before Bankruptcy Resolution

    Thousands of people have died with no compensation in recent years as big institutions shield themselves in bankruptcy court from claims related to opioids, fraud, asbestos and sexual abuse, plaintiffs' lawyers say. Critics say it's an inherent part of a bankruptcy court system that helps insiders and hurts creditors.

  • February 07, 2025

    NAFTA Case Useful In Bid To DQ Quinn Emanuel, Judge Says

    A Florida federal judge has ruled that a Mexican oil company can use information on dismissed NAFTA arbitration and other documents in a bid to disqualify former counsel Quinn Emanuel, saying the evidence is relevant to underlying litigation over alleged funds transfers.

  • February 07, 2025

    4th Circ. Says LeClairRyan Founder May Duck Tax Liability

    Defunct law firm LeClairRyan PLLC's operating agreement did not bar founder Gary LeClair from jumping ship in time to potentially dodge massive tax bills tied to the firm's collapse, the Fourth Circuit ruled Friday.

  • February 06, 2025

    Judge OKs 'Unorthodox' Deal To Fund Pa. Hospitals In Ch. 11

    Bankrupt hospital operator Prospect Medical has agreed to put its four Philadelphia-area hospitals under receivership for the next 30 days while it hammers out a sale as part of a funding arrangement that a Texas bankruptcy judge on Thursday called "unorthodox."

  • February 06, 2025

    Earthlink Investors' Attys Score $28M In Merger Suit

    The attorneys who helped Earthlink investors score an $85 million settlement with the company after they said they were tricked into approving a $1.1 billion merger with a failing telecommunications company will be walking away with almost $28 million for their trouble.

  • February 06, 2025

    Zips Car Wash Hits Ch. 11 With Plan To Trim $279M Debt

    Zips Car Wash LLC and nine affiliates filed for Chapter 11 protection in Texas, citing competition, climbing interest rates and nearly $654 million in funded debt, with a restructuring plan in hand to shave off about $279 million.

  • February 06, 2025

    Yellow Corp. Scores Partial Win In $540M Pension Plan Row

    Bankrupt trucking firm Yellow Corp. has secured a partial victory on summary judgment in a $540 million fight with several union pension funds, with a Delaware bankruptcy judge saying the funds set the company's withdrawal liability too high.

  • February 06, 2025

    Girardi's Mental Evaluation At NC Prison Extended By 15 Days

    A California federal judge Thursday ordered Tom Girardi's psychiatric evaluation at a North Carolina federal prison to be extended by 15 days, and she also lectured Girardi's public defender while saying she "could not have imagined" why it took 17 days to get his client's medical records sent to the facility.

  • February 05, 2025

    Party City Reaches Interim Deal On Unpaid Rent

    Party City received court approval Wednesday to continue using cash collateral as the bankrupt retailer continues to liquidate its assets, after agreeing to a deal with its unsecured creditors committee and several landlords who had objected to the request.

  • February 05, 2025

    US Trustee Objects To Releases In True Value Ch. 11 Plan

    The U.S. Trustee's Office Tuesday asked a Delaware bankruptcy judge to reject the opt-out third-party releases in True Value Co.'s proposed Chapter 11 plan.

  • February 05, 2025

    'Pay-To-Pay' Fees Are Unfair Debt Practice, 11th Circ. Rules

    The Eleventh Circuit said a mortgage servicing company illegally charged borrowers fees for online and phone payments, upholding a Florida federal court's decision that it improperly collected so-called pay-to-pay convenience fees that were not expressly allowed by underlying loan agreements.

  • February 05, 2025

    Judge Nixes Jones' Ch. 7 Deal With Sandy Hook Families

    A deal proposed by the Chapter 7 trustee in the bankruptcy case of right-wing conspiracy peddler Alex Jones that would have resolved the nearly $1.5 billion in claims held by the families of Sandy Hook school shooting victims failed to gain court approval Wednesday when a Texas judge said he couldn't grant the requested relief.

  • February 05, 2025

    Girardi Keese Trustee Sues NY Atty Who Funded Girardi

    The bankruptcy trustee for disgraced California attorney Tom Girardi's defunct law firm is suing to prevent New York attorney Joseph DiNardo from discharging $7.5 million in his own bankruptcy, claiming DiNardo received the money by helping Girardi defraud his own clients.

  • February 05, 2025

    Lowenstein Sandler Aims To Combine Dueling Dispensary Suits

    Lowenstein Sandler LLP has moved in New Jersey state court to consolidate its $800,000 legal fee case against a cannabis dispensary with a malpractice suit that the dispensary recently filed against it and handle the cases in Essex County.

  • February 04, 2025

    Liberated Brands Gets OK To Tap $25M In Ch. 11 Financing

    A Delaware bankruptcy judge on Tuesday agreed to give interim approval for outdoors and athletic clothing retailer Liberated Brands LLC to access $25 million of its $35 million debtor-in-possession financing.

  • February 04, 2025

    Discount Retail Chain Bargain Hunt Hits Ch. 11

    Discount retailer Bargain Hunt Stores, which operates almost 100 outlets, has entered bankruptcy in Tennessee with plans to shut its doors through Chapter 11.

  • February 04, 2025

    US Trustee Wants Stay For Container Store Plan Appeal

    The U.S. Trustee's Office asked a Texas bankruptcy judge to put The Container Store's Chapter 11 plan on hold while it appeals his decision that a creditor's failure to opt out of the plan's third-party releases constitutes consent to those releases.

  • February 04, 2025

    Guo Trustee Gets OK To Keep Law Firm Deal Sealed For Now

    The Chapter 11 trustee overseeing convicted Chinese fraudster Miles Guo's bankruptcy estate can keep secret for 180 days an adversary proceeding settlement with a New York law firm because similar clawback cases should proceed without being impacted by the terms of the deal, a Connecticut bankruptcy judge has ruled.

  • February 04, 2025

    Bankruptcy Group Of The Year: Paul Hastings

    Paul Hastings LLP spent 2024 representing renowned bankruptcy cases, including FTX, Core Scientific, WeWork and Diamond Sports Group's Chapter 11, helping various creditors recover billions of dollars and overcome challenging restructuring hurdles, earning the firm a spot as one of the 2024 Law360 Bankruptcy Groups of the Year.

  • February 04, 2025

    Judge Rejects Blink Fitness Ch. 11 Plan Exculpations

    A Delaware bankruptcy judge Tuesday rejected Blink Fitness' request to shield the administrator of its Chapter 11 wind-down plan from legal liability, saying she can't release claims for future acts.

  • February 03, 2025

    Trustee Objects To White & Case Pay In Terraform Ch. 11

    The U.S. Trustee's Office has asked a Delaware bankruptcy court to reject a roughly $431,000 request by White & Case LLP for work on behalf of the official committee of unsecured creditors in defunct cryptocurrency company Terraform Labs' Chapter 11, saying the firm was never formally retained by the committee and the work was ineligible.

  • February 03, 2025

    Jackson Walker Ethics Case Shelved Over Lack Of Authority

    A Houston federal judge on Monday recommended closing an ethics case against Jackson Walker LLP over its supposed knowledge of a firm attorney's relationship with a judge, finding the court lacked the authority to pursue sanctions against a law firm.

Expert Analysis

  • How To Grow Marketing, Biz Dev Teams In A Tight Market

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    Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.

  • Series

    Rock Climbing Makes Me A Better Lawyer

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    Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.

  • Ch. 11 Ruling Clarifies Cross-Border 'Alternative A' Scope

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    A New York bankruptcy court’s recent ruling in airline holding company SAS’s Chapter 11 case — addressing the applicability of Alternative A, which is similar to Section 1110 of the U.S. Bankruptcy Code — is a cautionary tale for contracting European Union member states that have adopted Alternative A domestically but have not made a formal declaration, say attorneys at Pillsbury.

  • Think Like A Lawyer: Dance The Legal Standard Two-Step

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    From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.

  • Series

    Being A Luthier Makes Me A Better Lawyer

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    When I’m not working as an appellate lawyer, I spend my spare time building guitars — a craft known as luthiery — which has helped to enhance the discipline, patience and resilience needed to write better briefs, says Rob Carty at Nichols Brar.

  • Lead Like 'Ted Lasso' By Embracing Cognitive Diversity

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    The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.

  • Ambiguity Ruling Highlights Deference To Arbitral Process

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    A New York federal court’s recent ruling in Eletson v. Levona, which remanded an arbitral award for clarification, reflects that the ambiguity exception’s analysis is not static and may be applied even in cases where the award, when issued, was unambiguous, says arbitrator Myrna Barakat Friedman.

  • Justices' Ch. 11 Ruling Is A Big Moment For Debtors' Insurers

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    The U.S. Supreme Court’s recent Truck Insurance v. Kaiser Gypsum ruling upends decades of Chapter 11 bankruptcy jurisprudence that relegated a debtor’s insurer to the sidelines, giving insurers a new footing to try and avoid significant liability, say Stuart Gordon and Benjamin Wisher at Rivkin Radler.

  • SVB Ch. 11 Shows Importance Of Filing Proof Of Claim Early

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    After a New York bankruptcy court’s recent ruling in SVB’s Chapter 11 case denied late claims filing requests related to post-bar date events, parties with potential claims against a debtor may need to seriously consider filing protective proofs of claim, says Kyle Arendsen at Squire Patton.

  • Opinion

    Now More Than Ever, Lawyers Must Exhibit Professionalism

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    As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.

  • Opinion

    High Court Made Profound Mistake In Tossing Purdue Deal

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    The U.S. Supreme Court's recent decision to throw out Purdue Pharma's Chapter 11 plan jeopardizes a multistate agreement that would provide approximately $7 billion in much-needed relief to help fight the opioid epidemic, with states now likely doomed to spend years chasing individual defendants across the globe, says Swain Wood at Morningstar.

  • What FTX Case Taught Us About Digital Asset Recoverability

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    FTX's Chapter 11 plan has drawn lots of attention, but the focus should be on the anticipated outcome for investors, which counters several myths about digital currencies, innovation and recoverability, says Kyla Curley at StoneTurn.

  • Series

    Serving In The National Guard Makes Me A Better Lawyer

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    My ongoing military experience as a judge advocate general in the National Guard has shaped me as a person and a lawyer, teaching me the importance of embracing confidence, balance and teamwork in both my Army and civilian roles, says Danielle Aymond at Baker Donelson.

  • A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates

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    Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.

  • Synapse Bankruptcy Has Ripple Effects For Fintech Industry

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    Synapse Financial Technologies’ recent bankruptcy filing marks a significant moment in the fintech industry's evolution, highlighting that stringent compliance and risk management in fintech partnerships are essential to mitigate risk and protect consumers, say Joann Needleman and Ryan Blumberg at Clark Hill.

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