Bankruptcy

  • March 12, 2025

    Mo. Court Finds Exclusion Bars Mallinckrodt Opioid Coverage

    A group of insurers have no coverage obligations under certain policies issued to drugmaker Mallinckrodt as a trust created from the company's first bankruptcy seeks to resolve underlying opioid claims with the help of insurance benefits, a Missouri state court ruled, finding a "your products" exclusion applicable.

  • March 12, 2025

    Pallet Biz Says District Court Can't Weigh Bankruptcy Order

    Pallet company PaLIoT Solutions Inc. told a Michigan federal judge on Wednesday that the issue of whether it violated a bankruptcy court's order regarding trade secrets purchased in a rival company's asset sale has already been decided, while the competitor said its rival is flip-flopping on its arguments.

  • March 12, 2025

    Willkie Beats Malpractice Suit Over ERISA Ch. 11 Advice

    An Ohio federal judge affirmed Tuesday a bankruptcy court's decision tossing legal malpractice claims filed by a coal company executive's estate against Willkie Farr & Gallagher LLP, rejecting the estate's arguments it sufficiently alleged Willkie was grossly negligent in failing to warn the estate about a potential $6.5 billion ERISA liability.

  • March 12, 2025

    Pa. Coal Co. Auction Gets 2-Week Pause After Value Spike

    A Pennsylvania bankruptcy judge has agreed to allow a pause in the auction of bankrupt Corsa Coal Corp.'s assets after hearing from lawyers in the Chapter 11 case that the machinery, equipment and real estate being sold has recently been appraised for more than the current bids.

  • March 12, 2025

    Northvolt's Ch. 11 Dismissal Possible After Swedish Filing

    Bankrupt electric vehicle battery maker Northvolt AB told a Texas bankruptcy judge that its Chapter 11 case is possibly headed for dismissal after its parent company filed an insolvency case in Swedish court early Wednesday.

  • March 12, 2025

    US Trustee Seeks Sanctions Against NY Lawyer

    The federal bankruptcy watchdog asked a New York judge Wednesday to sanction a lawyer who allegedly concealed her conflicts of interest while representing a debtor and a buyer in two separate Chapter 11 cases.

  • March 12, 2025

    2nd Circ. Upholds Sanctions In Chinese Billionaire's Ch. 11

    The Second Circuit Court of Appeals on Wednesday torpedoed an appeal from the daughter of bankrupt Chinese exile Miles Guo — also known as Ho Won Kwok — and her attorney seeking to overturn a nearly $83,400 discovery sanction, saying the contempt ruling was merited.

  • March 11, 2025

    Zachry Opposes Nebraska Utility's $38M Administrative Claim

    Bankrupt natural gas contractor Zachry Holdings has objected to a Nebraska public electric utility's administrative claim seeking $38 million in damages for delays in the construction of new generating stations, saying it is too early to seek the claim, and the requested fees exceed the purported damages.

  • March 11, 2025

    Judge Questions Authority To Pay Giuliani's Ch. 11 Bill

    A New York bankruptcy judge questioned Tuesday whether he could order former New York City Mayor Rudy Giuliani to sell off real estate to cover claims against his Chapter 11 estate, saying an order dismissing his bankruptcy case included assumptions that didn't come to fruition.

  • March 11, 2025

    Spirit Airlines Judge Says Opt-Out Releases Well Explained

    A New York bankruptcy judge explained his February decision to approve third-party releases in budget air carrier Spirit Airlines' Chapter 11 plan, saying an opt-out mechanism of the releases is enough to establish the consent of creditors, given how thoroughly the process was discussed and the number of people who did opt out.

  • March 11, 2025

    Fannie Mae Says Complex Filed Ch. 11 To Duck $73M Loan

    Fannie Mae told a federal court Monday that a Houston apartment complex's Chapter 11 filing was a "tactic" to avoid its obligation to repay a $73 million loan.

  • March 11, 2025

    Mitel Networks Gets OK For $60M Ch. 11 Financing

    A Texas bankruptcy judge Tuesday gave communications software company Mitel Networks preliminary permission to draw on $60 million in Chapter 11 financing as it heads for an April hearing on its prepackaged restructuring plan.

  • March 11, 2025

    Dykema Doubles Houston Roster With 7 New Atty Hires

    Dykema Gossett PLLC has expanded in Houston with the addition of seven attorneys, five of whom joined from Kane Russell Coleman Logan PC and two who came aboard from Hirsch & Westheimer PC.

  • March 10, 2025

    Warren Says Defense Nominee Has 'Clear Conflict Of Interest'

    Democratic Sen. Elizabeth Warren called out deputy defense secretary nominee Stephen Feinberg on Sunday for a "clear conflict of interest" due to his ties to Ligado Networks, which is suing the federal government for $40 billion, and urged him to agree to recuse himself from any decisions about the company.

  • March 10, 2025

    Insurer Says CarePoint's Ch. 11 Plan 'Fatally Flawed'

    An insurer has asked a Delaware bankruptcy judge to reject CarePoint Health Systems' Chapter 11 plan, saying it is designed to unfairly benefit the debtor's landlord with liability releases.

  • March 10, 2025

    Feds Sue FDIC For $1.9M For First Republic Tax Bill

    The U.S. government sued the Federal Deposit Insurance Corp. in D.C. federal court as receiver for the failed First Republic Bank, alleging the bank understated its withholding tax for U.S.-sourced income of foreigners and now owes almost $2 million to the federal government.

  • March 10, 2025

    PierFerd Hires 2 Ex-CM Law Bankruptcy Partners

    Manhattan-based Pierson Ferdinand LLP announced Monday the hiring of two former partners at CM Law PLLC for its bankruptcy, financial restructuring and reorganization practice.

  • March 10, 2025

    Judge Alters Terraform Crypto Claims Order To Avoid Bullying

    A Delaware bankruptcy judge on Monday asked the Chapter 11 plan administrator of defunct cryptocurrency software developer Terraform Labs to slightly modify instructions for creditors filing claims for its collapsed stablecoin after concerns were raised about language that could be intimidating to claimants.

  • March 10, 2025

    Pot Shop Receiver Says Brand Licensor Diverted Product

    A receiver overseeing the possible sale or liquidation of a Massachusetts cannabis retailer asked a judge to order the return of more than 900 packages of product taken from its cultivation facility days before the receivership began.

  • March 10, 2025

    Business Telecom Co. Mitel Files $1.1B Prepack Ch. 11

    Communications software company Mitel Networks filed for Chapter 11 protection Monday in a Texas bankruptcy court with a prepackaged equity-swap plan it says will cut $1.15 billion from its more than $1.3 billion in secured debt.

  • March 07, 2025

    Trucking Co. Liquidation Hearing Delayed Amid Sale Debate

    A hearing for bankrupt trucking company KAL Freight to determine whether to convert the case to a Chapter 7 liquidation was pushed back to next week as the debtor tried to finalize a Chapter 11 asset sale.

  • March 07, 2025

    No Ch. 11 Plan Stay For Ex-Eletson Owners

    A New York bankruptcy judge has declined to pause Greek shipping group Eletson Holdings' Chapter 11 plan while its former owners appeal the plan's confirmation, handing the company's current management a win as they seek to compel the ex-leadership to enforce the plan.

  • March 07, 2025

    Steward Health Gets OK For Deal On Transition Contracts

    A Texas bankruptcy judge Friday gave Steward Health Care the go-ahead to turn over responsibility for transition services for the dozens of hospitals it has sold during its Chapter 11 case to another hospital chain.

  • March 07, 2025

    Nikola's Ch. 11 Sale Timeline Gets Court Approval

    Bankrupt electric vehicle and hydrogen fueling technology maker Nikola Corporation received approval Friday in Delaware for its proposed bidding procedures, which seek to conduct an auction for its asset in a month's time.

  • March 07, 2025

    Tupperware Can Seek Votes For Post-Sale Liquidation Plan

    The estate of food storage company Tupperware Brands can solicit votes on its Chapter 11 liquidation plan, even as its creditors accused the debtor's latest plan of deviating from a prior agreement.

Expert Analysis

  • E-Discovery Quarterly: Recent Rulings On Metadata

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    Several recent rulings reflect the competing considerations that arise when parties dispute the form of production for electronically stored information, underscoring that counsel must carefully consider how to produce and request reasonably usable data, say attorneys at Sidley.

  • The 3rd-Party Bankruptcy Release Landscape After Purdue

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    In its Purdue Pharma ruling prohibiting nonconsensual third-party releases, the U.S. Supreme Court did not comment on criteria to render a third-party release consensual, opening a debate in the bankruptcy courts on the permissibility of opt-out versus opt-in releases, say attorneys at Morgan Lewis.

  • Striking A Balance Between AI Use And Attorney Well-Being

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    As the legal industry increasingly adopts generative artificial intelligence tools to boost efficiency, leaders must note the hidden costs of increased productivity, and work to protect attorneys’ well-being while unlocking AI’s full potential, says Ed Sohn at Factor.

  • Empathy In Mediation Offers A Soft Landing For Disputes

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    Experiencing a crash-landing on a recent flight underscored to me how much difference empathy makes in times of crisis or stress, including during mediation, says Eydith Kaufman at Alternative Resolution Centers.

  • Series

    Being An Artist Makes Me A Better Lawyer

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    My work as an artist has highlighted how using creativity and precision together — qualities that are equally essential in both art and law — not only improves outcomes, but also leads to more innovative and thoughtful work, says Sarah La Pearl at Segal McCambridge.

  • How Judiciary Can Minimize AI Risks In Secondary Sources

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    Because courts’ standing orders on generative artificial intelligence and other safeguards do not address the risk of hallucinations in secondary source materials, the judiciary should consider enlisting legal publishers and database hosts to protect against AI-generated inaccuracies, say attorneys at Lankler Siffert & Wohl.

  • How Attorneys Can Break Free From Career Enmeshment

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    Ambitious attorneys can sometimes experience career enmeshment — when your sense of self-worth becomes unhealthily tangled up in your legal vocation — but taking the time to discover and realign with your core personal values can help you recover your identity, says Janna Koretz at Azimuth Psychological.

  • Bankruptcy Decision Exemplifies Venue Issue For Franchisees

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    A California bankruptcy court's decision earlier this month in Pinnacle Foods and a lingering circuit split on assumption of executory franchise contracts highlights the issue of whether franchisee debtors can qualify for case venue in friendlier circuits, says David Gamble at Parkins Rubio.

  • Lawyers With Disabilities Are Seeking Equity, Not Pity

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    Attorneys living with disabilities face extra challenges — including the need for special accommodations, the fear of stigmatization and the risk of being tokenized — but if given equitable opportunities, they can still rise to the top of their field, says Kate Reder Sheikh, a former attorney and legal recruiter at Major Lindsey & Africa.

  • Opinion

    Judicial Committee Best Venue For Litigation Funding Rules

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    The Advisory Committee on Civil Rules' recent decision to consider developing a rule for litigation funding disclosure is a welcome development, ensuring that the result will be the product of a thorough, inclusive and deliberative process that appropriately balances all interests, says Stewart Ackerly at Statera Capital.

  • The Strategic Advantages Of Appointing A Law Firm CEO

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    The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.

  • Series

    Beekeeping Makes Me A Better Lawyer

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    The practice of patent law and beekeeping are not typically associated, but taking care of honeybees has enriched my legal practice by highlighting the importance of hands-on experience, continuous learning, mentorship and more, says David Longo at Oblon McClelland.

  • Unpacking State AG Approaches To Digital Asset Enforcement

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    Attorneys at Cozen O'Connor survey recent digital asset enforcement by attorneys general nationwide driven by concerns over regulatory gaps where technological developments and market changes have outpaced legislation.

  • Opinion

    Legal Institutions Must Warn Against Phony Election Suits

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    With two weeks until the election, bar associations and courts have an urgent responsibility to warn lawyers about the consequences of filing unsubstantiated lawsuits claiming election fraud, says Elise Bean at the Carl Levin Center for Oversight and Democracy.

  • What Being An 'Insider' Means In Ch. 11, And Why It Matters

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    As borrowers grapple with approaching near-term maturities on corporate debt, lenders should be proactive in mitigating the risks of being classified as an insider in potential bankruptcies, including heightened scrutiny, preference risk, plan voting and more, say David Hillman and Steve Ma at Proskauer.

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