Large Cap

  • July 10, 2024

    Feds Say Guo Ran 'Fraud Empire' As Racketeering Trial Wraps

    Manhattan federal prosecutors urged a jury on Wednesday to convict Chinese dissident Miles Guo for operating his political movement as a vast racketeering conspiracy that "brainwashed" supporters into spending more than $1 billion on scam investments.

  • July 10, 2024

    Acis Can't Intervene In Highland Capital Ch. 11 Claim Conflict

    Investment firm Acis Capital Management LP can't get involved in a $9.6 million claim dispute in reorganized hedge fund Highland Capital Management LP's Chapter 11 case, a Texas bankruptcy judge ruled Wednesday, saying there isn't enough overlap with a pending adversary action Acis filed in its own bankruptcy to give it intervenor standing.

  • July 10, 2024

    Rudy Giuliani: From America's Mayor To 'Disgraceful' Debtor

    After emerging from the ashes of the 9/11 terrorist attack as a public official the wounded nation could rally behind, former New York City Mayor Rudolph W. Giuliani is now being slammed for "disgraceful behavior" in the foundering Chapter 11 case arising from his defamation of election workers in the aftermath of the 2020 presidential election.

  • July 10, 2024

    Petersen Health Care Gets OK To Sell Nursing Homes In Ch. 11

    Petersen Health Care won a Delaware bankruptcy judge's approval on Wednesday to sell most of its nursing homes after selecting four bidders at an auction earlier this month, defeating or resolving objections to the deals from the U.S. Department of Housing and Urban Development and others.

  • July 10, 2024

    Judge Urges Deal On Puerto Rico Utility Bond Claims

    The judge overseeing the restructuring of Puerto Rico's electric utility on Wednesday asked the island's fiscal board and bondholders to prove wrong a court-appointed mediator's gloomy assessment on the prospects for compromise on disputes over bond claims.

  • July 10, 2024

    Redbox Parent To Liquidate After 'Train Wreck' Mismanagement

    Attorneys for the parent of Redbox Entertainment on Wednesday told a Delaware bankruptcy judge that "massive mismanagement" of the DVD rental company had left them with no choice but to ask for conversion of the Chapter 11 case to a Chapter 7 liquidation, with lenders unwilling to extend new financing amid doubts about the remaining value of the firm.

  • July 10, 2024

    Giuliani Urges DC Court Not To Disbar Him Over Trump Work

    Rudy Giuliani on Wednesday urged the D.C. Court of Appeals to let him keep his law license, saying he did not commit misconduct in his work on former President Donald Trump's challenge to Pennsylvania's 2020 presidential election.

  • July 10, 2024

    Cooley Adds Bankruptcy Atty From Gibson Dunn To LA Office

    Cooley LLP expanded its transactional services in its Los Angeles office this week with the addition of an attorney who moved his practice after eight years with Gibson Dunn & Crutcher LLP.

  • July 10, 2024

    $6B Yellow Corp. Pension Fund Fight Set For August Hearing

    A Delaware bankruptcy judge said Wednesday he would schedule a hearing in August to resolve competing motions for summary judgment on Yellow Corp.'s objection to several pension plans' claims for more than $6 billion in retirement-fund withdrawal liability.

  • July 10, 2024

    The Real Estate Bankruptcies Making Headlines This Year

    The real estate industry is no stranger to distress, but recent market headwinds have made it even harder for certain companies to chart the course to calmer seas. Catch up on the major real estate bankruptcy developments that have made headlines so far this year.

  • July 10, 2024

    Terraform Asks To Start Ch. 11 Wind-Down Ahead Of Plan Date

    Bankrupt cryptocurrency firm Terraform Labs has asked a Delaware bankruptcy judge to give it a head start on winding down pursuant to a $4.5 billion settlement with the U.S. Securities and Exchange Commission, including converting bitcoin holdings to fiat currency, saying that doing so will mitigate administrative costs.

  • July 09, 2024

    The Story Behind The Redbox Parent Company's Ch. 11

    Chicken Soup for the Soul Entertainment, the parent of DVD rental company Redbox Entertainment Inc., descended into bankruptcy following its acquisition by Apollo Capital Management and racking up unpaid bills to license films.

  • July 09, 2024

    Settlement Urged Before Decision In Invitae Debt Deal Row

    A New Jersey bankruptcy judge Tuesday urged Invitae and its unsecured creditors committee to continue trying to reach a settlement before he issues a preliminary ruling Friday on whether the committee has standing to pursue litigation against the genetic testing company.

  • July 09, 2024

    5th Circ. Presses SEC On Whistleblower Award Calculation

    The Fifth Circuit heard oral arguments Tuesday in a case accusing the U.S. Securities and Exchange Commission of shortchanging two whistleblowers who uncovered the largest fraud in Texas history, with one judge pressing the agency's attorney over how much money it was able to collect after the fraudster declared bankruptcy.

  • July 09, 2024

    Purdue Plans 'High-Speed' Bid For New Ch. 11 Plan

    Purdue Pharma told a New York bankruptcy judge Tuesday that it plans a two-month "high-speed, high-stakes" attempt to replace the Chapter 11 plan shot down by the U.S. Supreme Court last month before unleashing litigation on its former owning family.

  • July 09, 2024

    FTX Bahamas Says Celsius Can't Ask US Court To OK Suit

    The foreign representatives of FTX Digital Markets Ltd. asked a Delaware bankruptcy judge to block the litigation administrator of Celsius Network LLC from suing the company in New York, saying the purpose of the Chapter 15 case is to avoid precisely this kind of assault.

  • July 09, 2024

    3 States Ask High Court To Freeze Biden's Debt Relief Plan

    Three state attorneys general applied to the U.S. Supreme Court seeking to vacate the stay of a nationwide injunction in an effort to pause implementation of a $475 billion student loan debt forgiveness program, saying they are likely to succeed in their attempts to have the program invalidated by the high court.

  • July 09, 2024

    2 Cooperators In Bankman-Fried Case To Be Sentenced In Fall

    Two former FTX executives who pled guilty and testified for the government at the trial of Sam Bankman-Fried, the collapsed cryptocurrency exchange's founder, will be sentenced this fall, a New York federal judge said Tuesday.

  • July 09, 2024

    EV Co. Fisker To Get OK For Week's Worth Of Cash In Ch. 11

    A Delaware bankruptcy judge on Tuesday said he would give electric-vehicle maker Fisker Group Inc. approval to use cash collateral for another week in its Chapter 11 case after the debtor reassured unsecured creditors regarding limits on committee fee reimbursements.

  • July 09, 2024

    Ex-DOJ Atty Tells Guo Jury Of Illicit Extradition Campaign

    Prominent Chinese Communist Party critic Miles Guo capped off his defense to $1 billion fraud charges Tuesday with testimony from a former U.S. Department of Justice attorney, who admitted to participating in a plot to lobby the U.S. government for Guo's extradition to China.

  • July 09, 2024

    Ex-NRA Finance Chief Agrees To 10-Year NY Nonprofit Ban

    A former chief financial officer of the National Rifle Association has agreed not to serve as a fiduciary of a New York nonprofit for 10 years as part of a settlement in the state attorney general's suit in state court alleging he and other executives misused donor money, according to deal terms disclosed Tuesday.

  • July 08, 2024

    Purdue Creditors Look To Sue Sacklers After Justices' Ruling

    The official committee of unsecured creditors in the Chapter 11 case of drugmaker Purdue Pharma asked a New York bankruptcy judge on Monday for standing to bring actions against members of the Sackler family that own the company after the U.S. Supreme Court torpedoed a precarious settlement among the parties.

  • July 08, 2024

    Judge Jones To Be Deposed, Giuliani Seeks Ch. 7 Conversion

    The ex-Texas bankruptcy judge whose undisclosed romance with a former Jackson Walker LLP partner sparked an ethics scandal and efforts by the Office of the U.S. Trustee to recoup some $13 million in fees will be deposed; Rudy Giuliani can no longer practice law in New York and asked to convert his personal Chapter 11 bankruptcy to a Chapter 7; and the U.S. Supreme Court's monumental ruling in Purdue has opened questions about other high profile Chapter 11 plans and the authority of bankruptcy courts.

  • July 08, 2024

    Nevada Copper Floats Up To $5.2M In Ch. 11 Worker Bonuses

    Bankrupt mining operation Nevada Copper Inc. has proposed a pair of bonus plans that would allow for up to $5.2 million in retention and incentive payments for its workforce for staying with the company during its Chapter 11 case and maximizing the purchase price in a forthcoming asset sale transaction.

  • July 08, 2024

    Rite Aid Says Elixir Buyer In Contempt Over Liability Dispute

    Bankrupt pharmacy chain Rite Aid has asked a New Jersey bankruptcy judge to find the purchaser of its prescription benefits subsidiary in contempt, saying the buyer is defying his orders by refusing to assume $200 million of the subsidiary's liabilities.

Expert Analysis

  • Insurers Have A Ch. 11 Voice Following High Court Ruling

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    The U.S. Supreme Court's recent ruling in Truck Insurance Exchange v. Kaiser Gypsum — which reaffirmed a broad definition of "party in interest" — will give insurers, particularly in mass tort Chapter 11 bankruptcies, more opportunity to protect their interests and identify problems with reorganization plans, says George Singer at Holland & Hart.

  • Considerations For Cooperation Contracts In Loan Trades

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    Significant challenges to settling trades can arise when lenders of syndicated bank loans enter into defense-oriented cooperation agreements, which are growing in popularity, but working through these issues on the front end of a trade can save hours down the road, says Robert Waldner at Crowell & Moring.

  • Firms Must Rethink How They Train New Lawyers In AI Age

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    As law firms begin to use generative artificial intelligence to complete lower-level legal tasks, they’ll need to consider new ways to train summer associates and early-career attorneys, keeping in mind the five stages of skill acquisition, says Liisa Thomas at Sheppard Mullin.

  • Think Like A Lawyer: Always Be Closing

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    When a lawyer presents their case with the right propulsive structure throughout trial, there is little need for further argument after the close of evidence — and in fact, rehashing it all may test jurors’ patience — so attorneys should consider other strategies for closing arguments, says Luke Andrews at Poole Huffman.

  • NY Combined Hearing Guidelines Can Shorten Ch. 11 Timeline

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    The Southern District of New York’s recently adopted guidelines on combining the processes for Chapter 11 plan confirmation and disclosure statement approval may shorten the Chapter 11 timeline for companies and reduce associated costs, say Robert Drain and Moshe Jacob at Skadden.

  • Bankruptcy Judges Can Justly Resolve Mass Tort Cases

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    Johnson & Johnson’s recent announcement of a prepackaged reorganization plan for its talc unit highlights that Chapter 11 is a continually evolving living statute that can address new types of problems with reorganization, value and job preservation, and just treatment for creditors, says Kenneth Rosen at Ken Rosen Advisors PC.

  • A Healthier Legal Industry Starts With Emotional Intelligence

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    The legal profession has long been plagued by high rates of mental health issues, in part due to attorneys’ early training and broader societal stereotypes — but developing one’s emotional intelligence is one way to foster positive change, collectively and individually, says attorney Esperanza Franco.

  • 11th Circ. Ruling May Foreshadow Ch. 15 Clashes

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    The Eleventh Circuit's recent decision in In re: Talal Qais Abdulmunem Al Zawawi has introduced a split from the Second Circuit regarding whether debtors in foreign proceedings must have a domicile, calling attention to the understudied nature of Chapter 15 of the Bankruptcy Code, say attorneys at Cleary.

  • Bankruptcy Courts Have Contempt Power, Del. Case Reminds

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    A Delaware bankruptcy court recently held Camshaft Capital and its principal in contempt, serving as a reminder to bankruptcy practitioners and anyone else that appears before a bankruptcy judge that there are serious consequences for failing to comply with court orders, say Daniel Lowenthal and Kimberly Black at Patterson Belknap.

  • What Lies Behind Diverging US And UK Insolvency Trends

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    Contrasting U.K. and U.S. insolvency trends highlight the importance of policy interventions in shaping consumer financial outcomes and economic recovery, and while the U.K.'s approach seems to have mitigated issues, the U.S. faces challenges exacerbated by economic conditions and policy transitions, says Thomas Curran at Thomas H. Curran Associates.

  • E-Discovery Quarterly: Recent Rulings On Text Message Data

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    Electronically stored information on cellphones, and in particular text messages, can present unique litigation challenges, and recent court decisions demonstrate that counsel must carefully balance what data should be preserved, collected, reviewed and produced, say attorneys at Sidley.

  • How Banks Can Preserve Value Amid Corporate Default Surge

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    Amid a busy time for corporate bankruptcies, banks need a nuanced understanding of contractual rights, regulatory frameworks and evolving legal developments to protect and preserve their rights and interests, say attorneys at Phelps Dunbar.

  • Key Priorities In FDIC Report On Resolving Big Bank Failures

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    The Federal Deposit Insurance Corp.'s report last month on the resolvability of large financial institutions contains little new information, but it does reiterate key policy priorities, including the agency's desire to enhance loss-absorbing capacity through long-term debt requirements and preference for single-point-of-entry resolution strategies, say attorneys at Freshfields.

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