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Bankruptcy
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September 10, 2024
Blink Fitness Lands $105M Bid From PureGym
Bankrupt gym chain Blink Fitness landed a stalking horse bid from a unit of U.K.-based global gym operator PureGym Ltd. that sets a $105 million floor price for a Chapter 11 auction set to be held later this month, the companies said Tuesday.
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September 10, 2024
King & Spalding Expands In Texas With V&E, Skadden Attys
King & Spalding LLP has strengthened two of its Lone Star State offices with the addition of a veteran litigator from Vinson & Elkins LLP and a Skadden Arps Slate Meagher & Flom LLP attorney who specializes in energy transactions, the firm announced Tuesday.
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September 10, 2024
Ex-McElroy Deutsch CFO's Ch. 11 Case Nixed As 'Bad Faith'
McElroy Deutsch Mulvaney & Carpenter LLP convinced a New Jersey bankruptcy judge to throw out the Chapter 11 filing of its former chief financial officer, who is behind bars for stealing over $1 million from the firm, with the judge finding Tuesday that the petition was brought in "bad faith" to stall related state litigation.
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September 10, 2024
Will Tom Girardi's Age Impact His Sentence?
Disbarred attorney Tom Girardi's age and mental decline did not help him avoid conviction last month on charges that he stole millions in client funds, but it's an open question how much these factors will affect his sentencing, set for December.
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September 10, 2024
Fulcrum BioEnergy Files For Ch. 11 In Delaware
Fulcrum BioEnergy Inc., a company that endeavors to make sustainable aviation fuel, filed for Chapter 11 protection late Monday in Delaware, listing up to $500 million in debt.
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September 09, 2024
Cybersecurity Co. Founders To Pay $1.6M In SEC Fraud Suit
The co-founders of a now-bankrupt cybersecurity firm have agreed to pay nearly $1.6 million to end the U.S. Securities and Exchange Commission's claims that they used doctored financial records to convince investors to fund their company to the tune of $100 million.
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September 09, 2024
Purdue Sees Another OxyContin Patent Axed
A Delaware federal court decided on Monday that yet another patent issued to bankrupt OxyContin maker Purdue Pharma is invalid, a year and a half after a similar ruling was issued in another case about the company's efforts to assert different patents to stop the same prospective Indian manufacturer of generic painkillers.
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September 09, 2024
FTX To Pay $14M To Access $600M Robinhood Share Cashout
Defunct cryptocurrency exchange FTX Trading Ltd. has struck a $14 million deal that will let it access more than $600 million of cash and liquidated shares in Robinhood Markets Inc., in a settlement agreement with Sam Bankman-Fried-founded Emergent Fidelity Technologies Ltd.
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September 09, 2024
Conn. Diocese Proposes $30M Plan For Abuse Claimants
The Roman Catholic Diocese of Norwich, Connecticut, has proposed a Chapter 11 reorganization plan, claiming it would provide better and quicker compensation to sex abuse claimants than the plan proposed by the unsecured creditors committee.
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September 10, 2024
Most Young Lawyers Say Debt Alters Their Career Plans
A recent student debt study by the American Bar Association Young Lawyers Division has found that student debt affects young attorneys in many ways — including changing their career plans.
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September 09, 2024
Apartment Cooperative Hits Chapter 11 Amid Takeover Fight
The management of Success Village Apartments Inc. has filed for Chapter 11 bankruptcy protection in the District of Connecticut, citing between $1 million and $10 million in debt, amid court battles with local communities and utility companies that sought to force the 900-unit housing cooperative into receivership.
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September 09, 2024
Pa. Nursing Home Chain Gets OK For October Facility Auction
A federal bankruptcy court has approved the sale of eight nursing homes in Western Pennsylvania and West Virginia as part of their owners' Chapter 11 reorganization, according to court orders issued Friday and Monday.
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September 09, 2024
Apollo-Backed Software Company Edgio Hits Ch. 11
Digital content delivery platform Edgio Inc. filed for Chapter 11 protection Monday, listing $379 million in assets and $369 million in liabilities and with a plan to sell its assets to a major lender.
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September 09, 2024
Automotive Co. Wheel Pros Hits Ch. 11 With Over $1B In Debt
Clearlake Capital-backed automotive wheel company Wheel Pros LLC has filed for Chapter 11 protection in Delaware bankruptcy court with $1.746 billion in debt and a reorganization plan to hand control of the company to senior lenders.
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September 09, 2024
Bargain Retailer Big Lots Hits Ch. 11 With Sale In Sights
Discount retail chain Big Lots filed for Chapter 11 protection Monday in Delaware with $556 million of secured debt and plans to shutter more than 300 stores while it works to complete a $620 million deal to sell the rest of its business as a going concern.
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September 06, 2024
Real Estate Recap: Pol Funding, Investor Angst, Climate Risk
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including which presidential candidates BigLaw real estate pros have backed, where one attorney sees investor confidence despite tough conditions, and how extreme weather events are reshaping the property insurance market.
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September 06, 2024
Earthlink Investors Accept $85M Deal To End Merger Suit
Earthlink investors who say they were duped into approving a $1.1 billion merger with failing telecommunications company Windstream Holdings Inc. told an Arkansas federal judge Friday that they've reached an $85 million deal to end the lawsuit two months before the case was scheduled to go to trial.
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September 06, 2024
Investment Co. Appeals Sanction In Highland Ch. 11
An alternative investment company has asked a Texas federal court to overturn a sanctions order it received in defunct hedge fund Highland Capital's Chapter 11 case after the bankruptcy court concluded that it filed a claim in bad faith.
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September 06, 2024
Cleveland-Cliffs Faces Trial Over Mining Co.'s Antitrust Claims
A Delaware bankruptcy court has partially allowed claims accusing steelmaking giant Cleveland-Cliffs of engaging in anticompetitive behavior that harmed a mining venture's efforts to complete an iron mine and ore plant in northern Minnesota to go to trial by a jury in federal court.
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September 06, 2024
Trustee Backs Tossing Ex-McElroy Deutsch CFO's Ch. 11 Case
The U.S. Trustee's Office has urged a New Jersey bankruptcy court to dismiss a Chapter 11 petition from McElroy Deutsch Mulvaney & Carpenter LLP's former CFO, who is currently incarcerated for embezzling millions from the firm, because he has stonewalled the trustee's requests for information about his finances.
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September 06, 2024
Steptoe Adds Co-Leader To Restructuring & Insolvency Group
Steptoe LLP has expanded its transactions and tax practice by hiring a New York-based partner as a co-leader of the firm's insolvency and restructuring team.
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September 06, 2024
Judge Says He'll OK 2U's $527M Debt-Cutting Plan
A New York bankruptcy judge Friday said he would approve remote learning company 2U Inc.'s prepackaged plan to cut $527 million in debt in Chapter 11, rejecting arguments that it failed to get proper consent for the plan's third-party liability releases.
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September 06, 2024
Red Lobster Landlord Sues Zurich Over $1.2M Fire Payment
The owner of a property leased to Red Lobster said a Zurich unit negligently failed to name the owner on settlement checks issued to the eatery after a fire, telling a New Jersey federal court the failure allowed Red Lobster to avoid using the $1.2 million to make repairs.
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September 05, 2024
SQRL Store Chain Landlords Want Out Of Ch. 11 Stay
The landlords of 30 SQRL fuel station and convenience store locations are urging a Texas federal bankruptcy court to allow them to avoid an automatic stay that they allege is blocking them from taking ownership of the SQRL locations for themselves.
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September 05, 2024
Real Estate Co. EasyKnock Settles Battle With Ch. 7 Trustee
New York-based real estate investor EasyKnock Inc. would fork over the full alleged value of a debtor's home to her bankruptcy estate as part of a proposed deal to settle the Chapter 7 trustee's fraud claims and the company's own suit alleging collusion.
Expert Analysis
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5 Litigation Funding Trends To Note In 2024
Over the next year and beyond, litigation funding will continue to evolve in ways that affect attorneys and the larger litigation landscape, from the growth of a secondary market for funded claims, to rising interest rates restricting the availability of capital, says Jeffery Lula at GLS Capital.
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Key Issues When Navigating A Tenant's Bankruptcy
In light of recent Chapter 11 filings by Rite Aid and WeWork — companies with thousands of commercial leases — practitioners should review issues that can arise when bankruptcy is used to exit a lease, including the consequences of lease rejection and the statutory cap on landlord damage claims for a rejected lease, say attorneys at Proskauer.
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Fed. Circ. Ruling Seemingly Offers PTAB Deadline Immunity
The Federal Circuit's recent Purdue Pharma v. Collegium Pharmaceutical Inc. decision that the Patent Trial and Appeal Board had authority to issue a final written decision in a post grant review after the prescribed statutory deadline underscores how courts should consider the overall objective of the statutory scheme when balancing the classic conflict between bright-line rules and flexible standards, says Matthew Dowd at Dowd Sheffel.
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Securing Financial Transparency In Chapter 11 Reporting
As we enter the new year, restructuring professionals would be wise to review Chapter 11 public reporting requirements to navigate what debtors may do to try to minimize public reporting, and what creditors can do to get the public reporting they deserve by striking a balance between financial transparency requirements and tactical moves, say Thomas Moers Mayer and Nancy Bello at Kramer Levin.
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4 Legal Ethics Considerations For The New Year
As attorneys and clients reset for a new year, now is a good time to take a step back and review some core ethical issues that attorneys should keep front of mind in 2024, including approaching generative artificial intelligence with caution and care, and avoiding pitfalls in outside counsel guidelines, say attorneys at HWG.
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Securities Question Stands After Contradicting Crypto Rulings
The debate about the regulation of crypto-assets came to a head in 2023 when two New York federal judges came to opposite conclusions about whether crypto-assets were securities by using the Howey test, highlighting the uncertainty facing the crypto industry as it seeks to resolve definitional questions, say attorneys at Ballard Spahr.
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What The Law Firm Of The Future Will Look Like
As the legal landscape shifts, it’s become increasingly clear that the BigLaw business model must adapt in four key ways to remain viable, from fostering workplace flexibility to embracing technology, say Kevin Henderson and Eric Pacifici at SMB Law Group.
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4 PR Pointers When Your Case Is In The News
Media coverage of new lawsuits exploded last year, demonstrating why defense attorneys should devise a public relations plan that complements their legal strategy, incorporating several objectives to balance ethical obligations and advocacy, say Nathan Burchfiel at Pinkston and Ryan June at Castañeda + Heidelman.
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3 Pointers From Tilton Case To Help Win Advancement Suits
The Delaware Superior Court’s refusal to let Lynn Tilton sue her advancers for legal fees, ruling she had not yet attempted to negotiate in good faith, suggests that policyholders may fare better if they attempt proactive strategies to narrow disputes over advancement agreements before taking their insurers to court, says Evan Bolla at Harris St. Laurent.
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Charting The Course For Digital Assets In 2024
Although 2023 was a tough year for the digital asset industry, upcoming court decisions, legislation and regulatory action will bring clarity, allowing the industry to expand and evolve, and the government will decide what innovation it will allow without challenge, says Joshua Smeltzer at Gray Reed.
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Law Firm Strategies For Successfully Navigating 2024 Trends
Though law firms face the dual challenge of external and internal pressures as they enter 2024, firms willing to pivot will be able to stand out by adapting to stakeholder needs and reimagining their infrastructure, says Shireen Hilal at Maior Consultants.
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What 2023 Bankruptcy Statistics May Mean For 2024
Bankruptcy data from 2023 shows that we are in an unprecedented time in our economic history because of unique, unpredictable and distressed conditions, and bankruptcy professionals should be prepared for the continued rise in Chapter 11 filings in 2024, says Deirdre O'Connor at Epiq.
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The Most-Read Legal Industry Law360 Guest Articles Of 2023
A range of legal industry topics drew readers' attention in Law360's Expert Analysis section this year, from associate retention strategies to ethical billing practices.
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What The 2023 Bank Failures Taught Us, And What's To Come
As 2023 draws to a close, it's apparent that the bank failures this past spring sparked a seismic shift in the regulatory and supervisory landscape for banking organizations, and the consequences are still continuing to be felt throughout the financial sector as we head into 2024, say attorneys at Morgan Lewis.
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Attorneys' Busiest Times Can Be Business Opportunities
Attorneys who resolve to grow their revenue and client base in 2024 should be careful not to abandon their goals when they get too busy with client work, because these periods of zero bandwidth can actually be a catalyst for future growth, says Amy Drysdale at Alchemy Consulting.