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Bankruptcy
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January 07, 2025
NYC Condo Owner Hits Ch. 11 With More Than $70M Debt
The owner of 105 unsold New York City waterfront condominium units has filed for Chapter 11 protection with more than $70 million in liabilities.
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January 07, 2025
CFPB Adopts Rule To Take Medical Debt Off Credit Reports
The Consumer Financial Protection Bureau moved ahead Tuesday with plans to restrict the use of medical debt information in credit scoring and lending, finalizing a rule that it said will take an estimated $49 billion in unpaid medical bills off consumers' credit reports.
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January 06, 2025
Dentons Adds Ex-Skadden Bankruptcy Pro In Calif.
Global law firm Dentons is beefing up its restructuring, insolvency and bankruptcy practice with a new Los Angeles partner who spent more than two decades at Skadden, most recently as Skadden's head for corporate restructuring practice in the western United States.
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January 06, 2025
Mich. Residents Say Solar Investors Can't Arbitrate Fraud Suit
Michigan residents who allege Florida investment firms funded a company that duped them into buying defective solar panels have urged a federal judge to deny the firms' bid to arbitrate or dismiss the claims, saying the court has already rejected the investors' arguments.
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January 06, 2025
Terraform Victims May Exceed 1M, Feds Say In Notice Request
The U.S. Department of Justice on Monday asked a Manhattan federal judge for permission to issue a public notice to notify potential victims of defunct cryptocurrency firm Terraform Labs' creator Do Kwon's alleged $40 billion fraud, saying there are too many victims — potentially more than one million — to do individual outreach.
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January 06, 2025
Giuliani Held In Contempt In $148M Defamation Row
A New York federal judge on Monday found Rudy Giuliani in contempt of court for failing to turn over evidence to two former Georgia election workers seeking to collect on a $148 million defamation judgment they secured against the former attorney to President-elect Donald Trump.
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January 06, 2025
Akoustis Says Ch. 11 Plan Handles IP Injunction Concerns
Radio frequency filter venture Akoustis Technologies Inc. has accused judgment creditor Qorvo Inc. of seeking to scuttle Akoustis' Chapter 11 stalking-horse sale in Delaware for competitive reasons beyond Qorvo's $38 million patent infringement judgment.
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January 06, 2025
Press Release Distributor News Direct Hits Ch. 11 In Conn.
A corporate press release distributor filed for Chapter 11 bankruptcy protection in Connecticut with less than $50,000 in assets and over $5 million in liabilities.
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January 06, 2025
Girard Sharp Launches Into New Year With New Leadership
San Francisco-based Girard Sharp has kicked off the new year with a major leadership change, announcing Monday that Daniel C. Girard had stepped down as managing partner of the prominent plaintiffs complex litigation boutique he founded in 1995 and that longtime partner Dena C. Sharp was taking the reins.
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January 06, 2025
Chinese Billionaire's Deputy Gets 10 Years For $1.4B Fraud
A Manhattan federal judge sentenced a Chinese business manager to 10 years in prison Monday for her role assisting convicted billionaire Miles Guo's $1.4 billion fraud, saying the lawbreaking was egregious because it leveraged talk of bringing democracy to authoritarian China.
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January 06, 2025
Pa. Coal Co. Hits Ch. 11 With Up To $50M In Debt, Sale Plans
Corsa Coal Corp., which operates coal mines in Pennsylvania and Maryland, filed for bankruptcy Monday saying it planned to sell itself in Chapter 11 after it wasn't able to secure a U.S. Department of Agriculture-backed loan fast enough to refinance some $16.3 million of debt.
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January 06, 2025
Satellite Co. Ligado Hits Ch. 11 With $8.6B Of Debt
Satellite business Ligado Networks filed for Chapter 11 protection in Delaware bankruptcy court with about $8.6 billion of debt and a plan to hand control of the company to creditors after suffering what its chief executive called "catastrophic" losses allegedly caused in part by the U.S. Department of Defense.
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January 03, 2025
Pool Co. Denied New Trial On TM Claims After Winning $16M
A North Carolina pool parts supplier can't retry trademark infringement claims after securing a $16 million false advertising and unfair business practices judgment against a rival Chinese company accused of misleading customers, a federal judge ruled this week.
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January 03, 2025
Opt-Out Releases In Lumio's Ch. 11 Plan Rejected
A Delaware bankruptcy judge Friday rejected the opt-out mechanism for obtaining releases for third parties in Solar panel provider Lumio Holdings LLC's Chapter 11 plan, but said she would allow it to solicit votes on the plan.
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January 03, 2025
NY Nursing Home Blames AG's 'Crusade' For Ch. 11
The owner of a 588-bed nursing facility on Long Island has filed for Chapter 11 protection in a New York bankruptcy court with more than $58 million in debt, saying it was the victim of a "crusade" and "smear campaign" launched by the state attorney general's office.
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January 03, 2025
Hertz Off The Hook For $337M Bond In Claim Recalculation Tiff
A Delaware bankruptcy judge said Hertz Corp. doesn't need to post a $337.4 million bond while she uses an appeals court decision on underpaid interest to recalculate a group of unsecured noteholders' claims, writing the request would alter Hertz's more than 3-year-old Chapter 11 plan and give the noteholders better treatment than other creditors.
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January 03, 2025
Giuliani Says Memory Faulty In Meandering NY Contempt Row
A Manhattan federal judge mulled a bid to hold Rudy Giuliani in contempt of a $148 million defamation judgment Friday, during a day of sparring in which the former New York City mayor repeatedly told counsel for two defamed Georgia poll workers that he doesn't remember case details.
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January 03, 2025
Silver Airways Hits Ch. 11 With Over $100M In Debt
Regional airline Silver Airways LLC is headed to bankruptcy court for a first-day hearing Monday, after recently launching a Chapter 11 case in Florida with at least $100 million in debt.
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January 03, 2025
Diamond Sports Exits Ch. 11, Rebrands As Main Street Sports
Diamond Sports Group has emerged from Chapter 11 with a balance sheet that is nearly $9 billion lighter in debt and with a new name, the sports broadcasting company has announced.
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January 02, 2025
Celsius To Challenge $445M Claim Denial In FTX Bankruptcy
Celsius Network's post-Chapter 11 plan counsel filed an appeal on Thursday of a Delaware bankruptcy judge's denial of the cryptocurrency network's amended $444.6 million claim against fellow bankrupt crypto platform FTX.
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January 02, 2025
Bankrupt Pa. City Must Remit Casino Revenue, County Argues
Pennsylvania's Delaware County has asked the Third Circuit to undo a bankruptcy court's ruling that the financially ailing city of Chester is excused from paying the county revenue from gambling taxes because of the city's Chapter 9 proceedings, despite an ordinance mandating that the county get a cut of the money.
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January 02, 2025
'Crush-Resistant' OxyContin Patents Fail At Fed. Circ.
In one of its last major moves in 2024, the Federal Circuit decided to reject an appeal from the bankrupt maker of OxyContin, which is trying to use patent laws to block the release of a competing "crush-resistant" generic painkiller.
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January 02, 2025
Beasley Allen Aims To Toss Suit From Ex-Ally Firm
Beasley Allen has called on a Mississippi federal court to dismiss or transfer a defamation and breach of contract lawsuit from The Smith Law Firm PLLC over their joint venture agreement for talc litigation against Johnson & Johnson, arguing the case should be tossed in favor of its own suit filed earlier in Alabama.
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January 02, 2025
Terraform Founder Arraigned In NY, Denies $40B Crypto Fraud
Terraform Labs creator Do Kwon appeared Thursday before a Manhattan federal judge to deny charges that he orchestrated a $40 billion fraud on customers and investors who backed the cryptocurrency platform based on promises that it had real-world viability.
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January 01, 2025
Bankruptcy Issues To Watch In 2025
Bankruptcy professionals are seeing uncertainty in 2025, with a mix of opinions on whether filings will trend up or down, but certainty that there won't be a final word on the claims release questions bankruptcy plans faced in 2024.
Expert Analysis
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Law Firms Should Move From Reactive To Proactive Marketing
Most law firm marketing and business development teams operate in silos, leading to an ad hoc, reactive approach, but shifting to a culture of proactive planning — beginning with comprehensive campaigns — can help firms effectively execute their broader business strategy, says Paul Manuele at PR Manuele Consulting.
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Opinion
The Big Issues A BigLaw Associates' Union Could Address
A BigLaw associates’ union could address a number of issues that have the potential to meaningfully improve working conditions, diversity and attorney well-being — from restructured billable hour requirements to origination credit allocation, return-to-office mandates and more, says Tara Rhoades at The Sanity Plea.
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Opinion
It's Time For A BigLaw Associates' Union
As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.
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Bankruptcy Courts May Be Budding Open To Cannabis Cases
Two recent California bankruptcy court rulings, denying motions to dismiss the respective debtors' bankruptcies, provide persuasive authority to allow cannabis debtors the protections of federal bankruptcy law, say Noah Weingarten and Bethany Simmons at Loeb & Loeb.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.
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Chapter 11 Ruling Signals Emphasis On Lockup Provisions
A New York bankruptcy court's recent ruling in GOL Linhas Aéreas Inteligentes’ Chapter 11 case provides creditors with a strong basis for resisting requests to lock up or otherwise limit their voting rights, say Dania Slim and Andrew Alfano at Pillsbury.
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Vendor Rights Lessons From 2 Chapter 11 Cases
A Texas federal court’s recent critical vendor order in the Zachry Holdings Chapter 11 filing, as well as a settlement between Rite Aid and McKesson in New Jersey federal court last year, shows why suppliers must object to critical vendor motions that do not recognize creditors' legal rights, says David Conaway at Shumaker.
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Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?
A Pennsylvania federal court’s recent dismissal of the defendants’ counterclaims in Morgan v. Noss should remind attorneys to avoid the temptation to repackage a claim’s facts and law into a mirror-image counterclaim, as this approach will often result in a waste of time and resources, says Matthew Selmasska at Kaufman Dolowich.
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Can Chapter 15 Bankruptcy Help Cannabis Businesses?
Attorneys at Fox Rothschild consider whether Chapter 15 may be used as a tool to liquidate U.S. assets of cannabis companies in foreign bankruptcy proceedings, and look at the statutory provisions that may have a bearing on the successful liquidation of assets under the Bankruptcy Code.
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Series
Playing Dungeons & Dragons Makes Me A Better Lawyer
Playing Dungeons & Dragons – a tabletop role-playing game – helped pave the way for my legal career by providing me with foundational skills such as persuasion and team building, says Derrick Carman at Robins Kaplan.
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Mercon Coffee Ch. 11 Ruling Shows Insider Releases' Limits
A New York bankruptcy court’s recent ruling in Mercon Coffee’s Chapter 11 case highlights the stringent requirements for retention-related transfers to insiders, even in cases where no creditor has objected, say Robert Klyman and Scott Shelley at DLA Piper.
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5 Insights Into FDIC's Final Rule On Big-Bank Resolution Plans
Although the Federal Deposit Insurance Corp.'s recently finalized rule expanding resolution planning requirements for large banks was generally adopted as proposed, it includes key changes related to filing deadlines, review and feedback, and incorporates lessons learned — particularly from last year's bank failures, say attorneys at Cleary.
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Bankruptcy Trustees Need More FinCEN Guidance
Recent FinCEN consent orders in two North Carolina bankruptcy cases show that additional guidance is necessary for most types of fiduciaries overseeing bankruptcy estates or other insolvency vehicles, say Brian Shaw and David Doyle at Cozen O’Connor.
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3 Leadership Practices For A More Supportive Firm Culture
Traditional leadership styles frequently amplify the inherent pressures of legal work, but a few simple, time-neutral strategies can strengthen the skills and confidence of employees and foster a more collaborative culture, while supporting individual growth and contribution to organizational goals, says Benjamin Grimes at BKG Leadership.
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E-Discovery Quarterly: Rulings On Hyperlinked Documents
Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.