Mid Cap
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February 27, 2025
Housing Project To Drop Receiver After US Trustee Concern
New York City affordable housing complex Valdesia Gardens is transferring control of the property from a receiver back to the debtor after the U.S. Trustee's Office objected to the receiver's involvement and sought instead to appoint a Chapter 11 trustee.
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February 26, 2025
For Large Firms, A Day In Ch. 11 Can Be Costlier Than Ever
Large companies are paying more to restructure debt both during bankruptcy and in the months leading up to a Chapter 11 filing, with the typical cost of a day in court ballooning in recent years, according to a new paper by Harvard Law School Professor Jared A. Ellias.
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February 26, 2025
Fuel Co. Trustee Accuses Ex-Owners Of $100M Buyout Fraud
The founders and former majority owners of the bankrupt fuel distributor Mountain Express Oil Co. were hit with a lawsuit by the company's trustee Monday alleging that they took nearly $100 million out of the business through a bogus stock buyout that pushed it to the brink of insolvency.
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February 26, 2025
Investor Says Lowenstein Sandler Violated Dispensary Deal
An investment group involved in a complex dispute between Lowenstein Sandler LLP and a cannabis dispensary has asked a New Jersey state judge to enforce a settlement order and sale order, alleging the firm has violated previous legal rulings while pursuing its claim for purportedly unpaid legal fees.
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February 26, 2025
Celsius Can Continue Arbitration Against Crypto Miner
The litigation administrator for former cryptocurrency platform Celsius Network LLC can continue its arbitration with cryptocurrency mining operation Mawson Infrastructure that was pushed into Chapter 11 in December, a Delaware bankruptcy judge said Wednesday.
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February 26, 2025
Meet The Attys Helping TreeSap In Ch. 11's Sticky Situation
Landscaping plants grower TreeSap Farms LLC has assembled attorneys from the firms McKool Smith and Hunton Andrews Kurth LLP to help it through a Chapter 11 aimed at fortifying its business and enabling a sale of its assets.
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February 26, 2025
Boeing, Lockheed Supplier Hits Ch. 11 With Over $50M In Debt
Dynamic Aerostructures LLC, a Los Angeles aerospace parts supplier for Lockheed Martin and Boeing, filed for bankruptcy Wednesday, citing more than $50 million in debt, after the company suffered from "manufacturing practice inconsistencies" that resulted in quality control issues.
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February 25, 2025
Drinks Co. Ex-CEO Files $732M Sanctions Motion Against Firm
The former CEO of an energy drinks company on Tuesday urged a Florida state court to impose $732 million in sanctions against a law firm in a legal fees dispute, saying its attorneys' litigation misconduct caused serious financial harm while representing him in a separate federal bankruptcy case.
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February 25, 2025
Alex Jones Asks To Maintain Stay On Sandy Hook Payment
Infowars founder Alex Jones told the Connecticut Appellate Court that he shouldn't be forced to pay the judgment that Sandy Hook families won in their long-running defamation case as he awaits a review by the state's Supreme Court, saying the plaintiffs are wrong that he discarded underlying constitutional arguments.
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February 25, 2025
Biora Therapeutics Gets OK To Take $30M Ch. 11 Asset Bid
A Delaware bankruptcy judge on Tuesday gave biotech company Biora Therapeutics Inc. the go-ahead to accept a $30 million credit bid for its assets after secured and unsecured creditors agreed to revise a related settlement that raised objections from the U.S. trustee's office.
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February 25, 2025
NY AG Probe Latest Headache For Crumbling Property Empire
Following New York's passage of a tenant-friendly rent law in 2019, a spate of distressed Emerald Equity Group LLC properties are facing foreclosure or bankruptcy. Now, scrutiny by the state Attorney General's Office has added a new layer to the landlord's ongoing struggles.
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February 25, 2025
Meet The Attorneys Winding Down Stoever Glass In Ch. 7
The 61-year-old Wall Street municipal bond investment firm Stoever Glass & Co. Inc. has called upon two attorneys from Reitler Kailas & Rosenblatt LLP to help it tackle a Chapter 7 liquidation to be administered under the trusteeship of a Togut Segal & Segal LLP partner.
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February 25, 2025
Dental Co. Biolase Drills Down On Unopposed Ch. 11 Plan
A Delaware bankruptcy judge on Tuesday OK'd the Chapter 11 plan of dental technology maker Biolase Inc., which was fully consensual following changes to gain the approval of the U.S. Trustee and the official committee of unsecured creditors.
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February 25, 2025
Landscaping Plant Farmer TreeSap Hits Ch. 11 With Sale Plans
A Texas bankruptcy judge on Tuesday agreed to give interim approval for landscaping plants grower TreeSap Farms LLC to access $14 million of its debtor-in-possession financing, which it hopes to use to turn its business around ahead of a sale.
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February 24, 2025
Ex-Judge Hopes To Avoid Testimony In Atty Romance Probe
Former Texas bankruptcy judge David R. Jones said Monday that he's been talking with the U.S. Trustee with the aim of avoiding "live trial testimony" in the probe of his undisclosed romantic relationship with a former Jackson Walker LLP partner, arguing that he's already given a deposition.
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February 24, 2025
Seyfarth Hires Veteran Bankruptcy Atty For Chicago Office
Seyfarth Shaw LLP hired a veteran bankruptcy and commercial litigation attorney as a partner for the restructuring and insolvency team in its Chicago office, the firm has announced.
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February 24, 2025
Battery Startup iM3NY Strikes Deal With Creditors In Ch. 11
Lithium-ion battery maker iM3NY has reached a settlement with its unsecured creditors' committee, avoiding a fight over converting the case to a Chapter 7 liquidation after the creditors objected to the debtor's Chapter 11 financing and auction plans.
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February 24, 2025
Purdue's New Ch. 11 Plan Sidesteps Nonconsensual Releases
Mediators helping to craft a new settlement in the case of bankrupt OxyContin maker Purdue Pharma LP said in their latest update in New York bankruptcy court that the company's revised deal does not contain nonconsensual third-party waivers.
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February 24, 2025
Spirit's Ch. 11 Marks Shift To Debt Reduction Over Cost Cuts
With fresh court approval of its Chapter 11 plan in hand, Spirit Airlines is set to emerge from bankruptcy carrying $795 million less in debt, marking a new generation of air carriers to file for bankruptcy in order to shave debt rather than cut operating costs, according to a Fitch Ratings report.
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February 24, 2025
Spirit Gets Ch. 11 Plan OK; J&J Unit Brings Ch. 11 Plan To Trial
A bankruptcy judge gave Spirit Airlines the all-clear to eliminate nearly $800 million in debt while giving creditors control over the business; Johnson & Johnson's talc spinoff went to trial over a proposed Chapter 11 plan; and the U.S. Trustee's Office took issue with the final $52 million fee application from lawyers for a New York Catholic diocese.
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February 24, 2025
High Court Won't Hear Bankruptcy 'Safe Harbor' Dispute
The U.S. Supreme Court declined Monday to hear a dispute over what transactions are protected from clawback by a trustee, leaving in place a Second Circuit decision finding that the U.S. Bankruptcy Code's safe harbor provisions trump the trustee's state-law based fraudulent transfer claims.
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February 21, 2025
Real Estate Recap: 'Park Ave' Effect, Federal Leases, Atty Hires
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including a fourth-quarter "Park Avenue Phenomenon" seen by top brokerages, industry reaction to the potential federal lease slimdown, and a senior analyst's projection for family office investment in commercial real estate.
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February 21, 2025
Under The Radar: Bankruptcy News You May Have Missed
Sticky's Chicken asked a New York bankruptcy judge to flip its Chapter 11 case to a Chapter 7 after cold and congestion pricing undercut its plans to reemerge from bankruptcy a healthier company, a former Silicon Valley Bank employee asked a bankruptcy judge to approve her late submission of a claim in the bankruptcy case of SVB's defunct parent and FTX defended adversary cases it brought over alleged fraud in the debtor's prebankruptcy acquisition of a stock trading platform.
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February 21, 2025
Prime Core Crypto 'Hopelessly Commingled,' Plan Admin Says
Counsel for the administrator of cryptocurrency custodian Prime Core's Chapter 11 wind-down plan on Friday defended its decision to treat the debtor's cryptocurrency as property of the estate, even when it came from customers.
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February 21, 2025
First Horizon Says Ex-CEO Is Dropping Claims To Avoid Loss
First Horizon Bank told a Florida federal judge that a former bank CEO cannot drop claims against individual bank directors to shield himself from an inevitable adverse judgment in the suit, which accused the bank and its directors of setting up the CEO as a scapegoat in the legal fallout of attorney Scott Rothstein's $1.2 billion Ponzi scheme.
Expert Analysis
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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.
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Diamond Sports Cases Shed Light On Executory Contracts
Recent Texas bankruptcy cases involving telecast fees payable by Diamond Sports to certain Major League Baseball teams provide a window into the dynamic relationship that can develop between debtors and counterparties under some executory contracts, say Joseph Badtke-Berkow and Robin Spigel at Allen & Overy.
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Playing In A Rock Cover Band Makes Me A Better Lawyer
Performing in a classic rock cover band has driven me to hone several skills — including focus, organization and networking — that have benefited my professional development, demonstrating that taking time to follow your muse outside of work can be a boon to your career, says Michael Gambro at Cadwalader.
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The Pop Culture Docket: Judge Espinosa On 'Lincoln Lawyer'
The murder trials in Netflix’s “The Lincoln Lawyer” illustrate the stark contrast between the ethical high ground that fosters and maintains the criminal justice system's integrity, and the ethical abyss that can undermine it, with an important reminder for all legal practitioners, say Judge Adam Espinosa and Andrew Howard at the Colorado 2nd Judicial District Court.
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Balancing Justice And Accountability In Opioid Bankruptcies
As Rite Aid joins other pharmaceutical companies in pursuing bankruptcy following the onslaught of state and federal litigation related to the opioid epidemic, courts and the country will have to reconcile the ideals of economic justice and accountability against the U.S. Constitution’s promise of a fresh start through bankruptcy, says Monique Hayes at DGIM Law.