Large Cap
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February 10, 2025
FTX Having Trouble Serving Binance With Ch. 11 Lawsuit
The estate of fallen cryptocurrency exchange FTX told a Delaware bankruptcy judge late Friday that its attorneys haven't yet been able to serve Binance and its former CEO Changpeng Zhao a lawsuit seeking to recover nearly $1.8 billion that FTX is accused of illegally transferring prior to its collapse two years ago.
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February 10, 2025
Morgan Stanley, Tops Trustee Duel Over Dividends Clawback
Morgan Stanley and the Chapter 11 litigation trustee for the estate of Tops Supermarket filed dueling motions on whether dividends paid to Morgan Stanley before Tops' bankruptcy are shielded from clawback.
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February 10, 2025
Sandy Hook Families Accuse Alex Jones Of 'Ambush' Appeal
Connecticut's highest court should swat down Infowars host Alex Jones' attempt to appeal a record-smashing Sandy Hook defamation verdict because he abandoned the very defenses he now seeks to present under a special type of review for unpreserved constitutional arguments, the victims of the 2012 mass shooting have said.
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February 10, 2025
Spyglass Says Weinstein Has No Rights To 'Scream 4' Profits
Film and television production company Spyglass, which bought the assets of The Weinstein Co. during its bankruptcy several years ago, is trying to fend off an attempt by Harvey Weinstein to collect money generated by the film "Scream 4."
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February 10, 2025
Mexican Payday Lender Details $2B Reorg Plan In Del. Ch. 15
Credito Real, a payday lender based in Mexico, has launched a Chapter 15 case in Delaware bankruptcy court to effectuate a prepackaged reorganization plan pending in its home country that calls for the company's assets to be sold off, by a new entity, for the benefit of creditors.
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February 10, 2025
Jones' Ch. 7 Deal Sunk, Yellow Scores Partial Pension Win
A Texas bankruptcy judge has rejected a Chapter 7 trustee's proposal to settle $1.5 billion in Sandy Hook claims against Alex Jones, Yellow Corp. won a partial victory in a $540 million pension dispute after a Delaware judge ruled liabilities were overstated, and the Eleventh Circuit barred a mortgage servicer from charging unauthorized "pay to pay" fees. This is the week in bankruptcy.
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February 10, 2025
American Tire Gets OK For Going-Concern Sale To Lenders
A Delaware bankruptcy judge on Monday said he was "very happy" to approve American Tire Distributors Inc.'s roughly $835 million sale of its business to a lender group in Chapter 11, a deal that will enable the company to preserve jobs and continue selling tires and wheels.
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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.
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February 07, 2025
Zips Car Wash On Track For April Ch. 11 Plan Hearing
A Texas bankruptcy judge Friday gave Zips Car Wash permission to draw on $20 million in Chapter 11 financing under terms that will see the vehicle-cleaning chain seeking court approval for its equity-swap restructuring plan by mid-April.
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February 07, 2025
Under The Radar: Bankruptcy News You May Have Missed
A onetime financial adviser to UpHealth is opposing the debtor's Chapter 11 plan, Hearthside Food Solutions' official committee of unsecured creditors has balked at the company's executive bonus proposal in bankruptcy, and one-time investors in defunct real estate investment firm RealtyShares willingly dismissed a suit against the firm's former directors, litigation that had outlived the firm's Chapter 7 by more than a year.
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February 07, 2025
Syracuse Diocese Wants Rep For Unknown Abuse Claimants
The Roman Catholic Diocese of Syracuse asked a New York bankruptcy judge to appoint a representative for currently unknown sexual abuse claimants and to extend the deadline for the representative to vote on the diocese's Chapter 11 plan until the end of March.
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February 07, 2025
Mexican Lender Gets Cautious OK For UK Reorg Of US Debt
The England and Wales-based subsidiary of a Mexican industrial equipment leasing and financing group on Friday received Chapter 15 recognition of its U.K. restructuring from a New York bankruptcy judge, who expressed concern about the structure but said no creditors were harmed by it.
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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.
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February 07, 2025
Franchise Group Ch. 11 Plan Not 'Fully Baked,' Judge Says
A Delaware bankruptcy judge has declined to approve the disclosure statement for Franchise Group Inc.'s Chapter 11 plan, calling it not "fully baked" and saying the debtor should wait until after the date it is scheduled to sell company assets to solicit votes on its plan.
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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."
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February 06, 2025
Lessons From The 'Must-Read' Yellow Corp. WARN Decision
A Delaware bankruptcy judge's finding that defunct trucking giant Yellow Corp. violated the Worker Adjustment and Retraining Notification Act is a "must-read" for bankruptcy attorneys that has broad lessons for other cases and highlights the importance of paying attention to the details of the statute, experts told Law360.
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February 06, 2025
Wheel-Maker Accuride Upsizes Ch. 11 Loan By Another $20M
Wheel manufacturer Accuride Corp. received a Delaware bankruptcy judge's approval Thursday to tack on another $20 million to its Chapter 11 financing, funds that the company said it will use to support operations ahead of a hearing next week on confirmation of its reorganization plan.
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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.
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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.
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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.
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February 06, 2025
Ligado Gets Final OK For $115M In Ch. 11 Financing
A Delaware bankruptcy judge has given satellite communications company Ligado Networks LLC permission to take out up to $115 million in new money Chapter 11 financing.
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February 06, 2025
Big Lots Seeks Approval To Sell Corporate HQ For $36M
Bankrupt discount retail chain Big Lots is asking a Delaware bankruptcy judge for permission to sell its Ohio headquarters to hospital operator OhioHealth Corp. for $36 million a month after closing a deal to sell off nearly all of its other assets.
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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.
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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.
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February 05, 2025
Wave Of Defaults Looms For Fed's Main Street Loans
Some businesses that took out big loans backed by American taxpayers during the COVID-19 pandemic have gone bankrupt, and the stage is set for a wall of similar debt to start crashing later this year when large payments come due.
Expert Analysis
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Finding Focus: Strategies For Attorneys With ADHD
Given the prevalence of ADHD among attorneys, it is imperative that the legal community gain a better understanding of how ADHD affects well-being, and that resources and strategies exist for attorneys with this disability to manage their symptoms and achieve success, say Casey Dixon at Dixon Life Coaching and Krista Larson at Stinson.
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A Look At DOJ's New Nationwide Investment Fraud Approach
Investment fraud charges are increasingly being brought in unlikely venues across the country, and the rationale behind the U.S. Department of Justice's approach could well be the heightened legal standards in connection with prosecuting investment fraud, says Jonathan Porter at Husch Blackwell.
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Decoding The Digital Asset Landscape In Bankruptcy
Recent cases show the explosion of cryptocurrency as an asset class has created new challenges for debtors-in-possession, bankruptcy trustees, and federal and state receivers, and fiduciaries will have to consider a number of legal and practical considerations when determining how to manage these assets in insolvency, say David Castleman at Otterbourg and Anthony Facciano at Stretto.
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How Fla. Bankruptcy Ruling May Affect Equity Owners
A Florida bankruptcy court’s recent ruling in Vital Pharmaceuticals — which rejected the Third Circuit’s Majestic Star decision that determined a bankrupt corporation’s flow-through status was not protected by the automatic stay — may significantly affect how equity owners can mitigate the impact of flow-through structures in bankruptcy, say Eric Behl-Remijan and Natasha Hwangpo at Ropes & Gray.
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Calif. Ruling May Open Bankruptcy Trustees To Tort Liability
In Martin v. Gladstone, a recent California appellate court decision, the application of tort concepts to bankruptcy trustees could pose a new concern for trustees and federal receivers when controlling and maintaining commercial property, says Jarrett Osborne-Revis at Buchalter.
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Co. Directors Must Beware Dangers Of Reverse Factoring
New accounting requirements governing the disclosure of so-called reverse-factoring programs have revealed billions of dollars worth of hidden liabilities on companies’ ledgers, and directors of corporate boards should review their companies’ books for this hidden danger, say Garland Kelley at Looper Goodwine, Amin Al-Sarraf at Locke Lord and Jill Basinger at Discovery Land.
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Attorneys, Law Schools Must Adapt To New Era Of Evidence
Technological advancements mean more direct evidence is being created than ever before, and attorneys as well as law schools must modify their methods to account for new challenges in how this evidence is collected and used to try cases, says Reuben Guttman at Guttman Buschner.
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Why 7th Circ. Libel Ruling Is Crucial For The Media
As more defamation plaintiffs attorneys argue that allowing a published statement to remain online after additional evidence of falsity emerges equates to actual malice, the Seventh Circuit's recent National Police Association v. Gannett opinion should be lauded by the media and online publishers as a favorable decision, say attorneys at Vedder Price.
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Tips For Litigating Against Pro Se Parties In Complex Disputes
Litigating against self-represented parties in complex cases can pose unique challenges for attorneys, but for the most part, it requires the same skills that are useful in other cases — from documenting everything to understanding one’s ethical duties, says Bryan Ketroser at Alto Litigation.
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3 Cases Show Tensions Between Arbitration And Insolvency
The intersection of international arbitration and insolvency may influence the formulation of litigation strategy on a global scale, and several recent cases illustrate the need for counsel to understand how courts are varying in their approaches, say attorneys at Skadden.
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Air Ambulance Ch. 11s Show Dispute Program Must Resume
Air Methods’ recent bankruptcy filing highlights the urgent need to reopen the No Surprises Act’s independent dispute resolution program for air ambulances, whose shutdown benefits insurance companies and hurts providers, says Adam Schramek at Norton Rose.
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Pro Bono Work Is Powerful Self-Help For Attorneys
Oct. 22-28 is Pro Bono Week, serving as a useful reminder that offering free legal help to the public can help attorneys expand their legal toolbox, forge community relationships and create human connections, despite the challenges of this kind of work, says Orlando Lopez at Culhane Meadows.
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Why Delaware ABCs Are No Longer As Easy As 1-2-3
In light of the Court of Chancery's recent focus on additional disclosures, the assignment for the benefit of creditors process in Delaware may no longer be as efficient as it once was, and companies should be prepared to provide significantly more information leading up to an ABC, say attorneys at Goodwin.