Large Cap
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August 23, 2024
Girardi Says High Court Holding Should Gut His Fraud Case
Tom Girardi has urged a California federal judge to toss the majority of the wire fraud charges he is facing ahead of closing arguments in his trial, saying a 1960 U.S. Supreme Court case demonstrates he was charged for nothing more than receiving legally required wire transfers.
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August 23, 2024
Fed. Judge Affirms $37M Escrow, Yacht Rulings In Guo Ch. 11
A Connecticut federal judge on Friday upheld bankruptcy rulings placing a $37 million escrow account and a $23 million yacht under the control of Chinese exile and convicted fraudster Miles Guo's Chapter 11 trustee, agreeing that a holding company was Guo's alter ego and approving the trustee's veil piercing maneuver.
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August 23, 2024
Sale Sought For Assets Of Alex Jones' Co.
The court-appointed trustee in Alex Jones' bankruptcy case has asked a Texas judge to authorize the liquidation and wind-down of Free Speech Systems LLC, arguing that Jones' estate wholly owns the company and that it has valuable assets to monetize.
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August 23, 2024
Electric Car Co. Fisker Promises Ch. 11 Plan In A Week's Time
A Delaware bankruptcy judge Friday gave defunct electric-vehicle maker Fisker Inc. permission to enter into a deal with its lenders that will see it file a Chapter 11 plan by the end of August and seek court approval for the plan in just over a month.
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August 23, 2024
Retailers That Sunk Into The Red And Hit Ch. 11 In 2024
Major retail companies including Express Inc., Conn's Inc., Avon Products, Sam Ash Music, and Rue21 have filed for bankruptcy this year, citing industry challenges stemming from the lasting impacts of the COVID-19 pandemic, rising interest rates and inflationary pressures.
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August 23, 2024
Yellow Corp. Hires CBRE For Truck Terminal Sales In Ch. 11
A Delaware bankruptcy judge on Friday approved trucking company Yellow Corp.'s bid to hire CBRE Inc. to help broker sales and subleases of the debtor's roughly 116 truck terminals and other industrial properties.
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August 22, 2024
Pennsylvania Hospital Gets 1 Week Reprieve In Steward Ch. 11
A Texas bankruptcy judge on Thursday approved an order setting general closing procedures for bankrupt hospital operator Steward Health Care, but gave Pennsylvania authorities a week's reprieve as they try to arrange a hospital sale.
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August 22, 2024
Jones Walker Adds Kelley Drye Bankruptcy Ace In Houston
Jones Walker LLP announced Thursday that it has bulked up its bankruptcy and restructuring team and its litigation practice group with a partner in Houston who came aboard from Kelley Drye & Warren LLP.
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August 22, 2024
Tom Girardi Takes The Stand In His Criminal Fraud Trial
Disbarred attorney Tom Girardi took the stand Thursday in his California federal fraud trial and denied stealing from any of his clients, while also showing a strong grasp of past events and people but claiming to have no memory of the trial's witnesses and key moments, or to even know his own lawyer's name.
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August 22, 2024
CORRECTED: Petersen Health Creditors Blast Exec Bonus Motion
Petersen Health Care creditors have asked a Delaware bankruptcy judge to reject the company's request to pay up to $1.3 million in bonuses to executives and other employees, saying it is too close to the end of the case for a bonus to have any business justification.
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August 22, 2024
Crypto Lobbyist Hit With FTX Campaign Finance Charges
Manhattan federal prosecutors announced Thursday that Michelle Bond, a crypto industry lobbyist and the girlfriend of convicted former FTX executive Ryan Salame, has been charged with getting the now-defunct digital asset exchange to illegally finance her unsuccessful 2022 congressional campaign.
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August 22, 2024
Chinese Developer Seeks US Recognition For $7.4B Reorg
A Chinese real estate developer is asking a New York bankruptcy judge for U.S. recognition for its efforts to restructure more than $7.4 billion in overseas debt held in Hong Kong and the Cayman Islands.
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August 21, 2024
FTX's Salame Says Feds Broke Deal Not To Probe Girlfriend
Former FTX executive Ryan Salame urged a New York federal judge Wednesday to either vacate his May conviction or stop federal prosecutors from investigating his domestic partner Michelle Bond for related political campaign-finance offenses, saying prosecutors induced his guilty plea by promising not to probe Bond.
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August 21, 2024
Girardi Faked Dementia Symptoms, Neurologist Testifies
A neurologist with Vanderbilt University testified Wednesday in Tom Girardi's criminal fraud trial in California federal court that the disbarred attorney was likely exaggerating his cognitive problems in late 2020 just as his law firm imploded into bankruptcy and his legal problems mounted because he believed it would be "beneficial."
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August 21, 2024
Ex-LNG Contractor Seeks Share Of Funds, Insurance In Ch. 11
Zachry Holdings Inc., the former contractor for a Texas natural gas plant, asked a bankruptcy judge in the state to decide it is due a bit under $2 million from an account shared with its onetime partners and over 70% of insurance recoveries until it is compensated for repair work it carried out.
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August 21, 2024
5 Takeaways From Closed-Door Hearing On Judge Romance
A hearing transcript unsealed Wednesday unpacks a secret meeting between Jackson Walker LLP and former U.S. Bankruptcy Judge David R. Jones, covering Jones being criminally investigated for concealing his romance with an ex-firm partner, him accusing the U.S. trustee of leaking news of that probe and that Jones likely has failed to avoid a deposition.
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August 21, 2024
Alleged WeWork Fraudster Fires Dickinson Wright Before Trial
Lawyers from Dickinson Wright PLLC told a New York federal judge on Wednesday that they have been discharged by the former CEO of real estate investment firm ArciTerra ahead of his October trial for issuing a bogus $77 million offer for WeWork shares.
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August 21, 2024
Calif. AG Secures Rite Aid Deal Ensuring Pharmacy Access
California Attorney General Rob Bonta has announced a settlement with Rite Aid Corp. that will allow his office to oversee any changes in ownership of the company's retail pharmacy outlets across the state.
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August 21, 2024
Eversheds Adds Another Kilpatrick Bankruptcy Atty In Atlanta
Eversheds Sutherland's growing U.S. finance practice group picked up another new addition Wednesday, an Atlanta counsel who was previously with Kilpatrick Townsend & Stockton LLP.
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August 20, 2024
Girardi Jury Hears Of Ex-CFO's Alleged Bahama Hideout Plan
The former fiancee of ex-Girardi Keese executive Chris Kamon told a California federal jury in Tom Girardi's criminal trial Tuesday about a dramatic call she received from Kamon, during which he told her he was about to be "pinned" for the firm's crimes and wanted her to flee to the Bahamas with him.
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August 20, 2024
Midyear Check-In: Boy Scouts Bankruptcy
Hundreds more men who were sexually assaulted when they were Boy Scouts have received distributions from the settlement trust that is determining their claims as the pace of payments picks up, the most recent report from the Chapter 11 settlement trust showed.
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August 20, 2024
Steward Health, Landlord Spar Over Ch. 11 Hospital Sales
Bankrupt hospital operator Steward Health Care has filed an adversary suit against the landlord for 30 of its hospitals, Medical Properties Trust, saying the landlord is throwing a wrench in the sale process for the facilities and trying to hoover up all the proceeds.
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August 20, 2024
Byju's US Units Face Lenders' Bid For Discovery Sanctions
Creditors of the insolvent U.S.-based financing arm of Indian education technology giant Byju's have asked a Delaware bankruptcy judge to bar other Byju's subsidiaries from disputing issues of fact tied to an involuntary Chapter 11 petition filed against those units, alleging they did not comply with discovery requests.
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August 20, 2024
Texas Franchisee Accuses Party City Of Monopolizing Market
An operator of Party City franchise stores accused the party supply retailer's parent company of monopolizing the party goods market, saying the company seeks to drive its competitors, including franchisees, out of business through its use of unfair competition, illegal price-fixing and bad faith business practices.
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August 20, 2024
Retailer Conn's Gets OK For September Asset Auction
A Texas bankruptcy judge Tuesday gave furniture and appliance retailer Conn's the go-ahead to put its assets, including its portfolio of consumer loans, on the auction block in September, with counsel for the company saying it already has dozens of interested parties.
![A Yellow Corp. truck is seen reflected in a mirror at a terminal in Orlando, Florida. The trucking company filed for Chapter 11 bankruptcy protection on August 6, 2023, three years after Yellow received $700 million in pandemic-era loans from the federal government. The firm's subsequent closure will cost 30,000 jobs. (Photo by Paul Hennessy / SOPA Images/Sipa USA)(Sipa via AP Images)](https://assets.law360news.com/1872000/1872924/fdb9123fa6dd9d53e11467224bce232eb32efb45-yellow_trucking_company_filed_for_bankruptcy_and_is_closing_the_business_in_orlando,_florida,_us_-_07_aug_2023_23809.jpg)
Chapter 11 Check-In: Yellow Corp.'s $1.5B Bankruptcy
It's been more than a year since national trucking giant Yellow Corp. landed in Delaware's bankruptcy court following contentious union negotiations. Despite pulling in over $2 billion from asset sales and paying off $1.5 billion in debt, Yellow's road out of Chapter 11 has been stalled by high-stakes litigation and claims disputes.
![An exterior view of a Rite Aid drugstore. Rite Aid is a chain of drugstores based in Philadelphia, Pennsylvania. (Photo by Paul Weaver / SOPA Images/Sipa USA)(Sipa via AP Images)](https://assets.law360news.com/1872000/1872720/4916eaa41198b7a7c9a499a07bb9ea28926bca56-businesses_and_logos_in_williamsport,_us_-_10_aug_2024_90158.jpg)
Midyear Check-In 2024: Rite Aid Bankruptcy
Pharmacy chain Rite Aid Inc. entered bankruptcy last year facing billions of dollars in bank debt and staggering liabilities in connection with the national opioid crisis, but its trip through Chapter 11 resulted in a confirmed plan that addresses these obligations.
![U.S. Bankruptcy Court for the Southern District of New York, August 20, 2016.](https://assets.law360news.com/1872000/1872300/50c4309e398a09a9d0761b3f6b552dbdd7abbdc9-20160820_143504.jpg)
Top Bankruptcy Cases Of 2024: Midyear Report
Famous debtors, major U.S. Supreme Court rulings and "shocking" turnarounds have headlined an already busy 2024 in bankruptcy, and elevated interest rates are expected to continue pushing more companies to the brink this year, experts told Law360.
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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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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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.
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3rd Circ. Ruling Shows Benefits Of IP Licenses In Bankruptcy
The Third Circuit’s recent ruling in Mallinckrodt’s Chapter 11 filing, which held that Mallinckrodt could sever its obligations to pay Sanofi royalties on sales of an autoimmune disease drug, highlights the advantages of structuring transactions as nonexclusive licenses for developers of intellectual property, say Gregory Hesse and Kaleb Bailey at Hunton.
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Congress Must Increase Small Biz Ch. 11 Debt Cap
Congress must act to reinstate Subchapter V, which recently sunsetted when the debt threshold to qualify reverted from $7.5 million to just over $3 million, meaning thousands of small businesses will no longer be able to use the means of reorganization, says Daniel Gielchinsky at DGIM Law.
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How To Grow Marketing, Biz Dev Teams In A Tight Market
Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.
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Justices' Ch. 11 Ruling Is A Big Moment For Debtors' Insurers
The U.S. Supreme Court’s recent Truck Insurance v. Kaiser Gypsum ruling upends decades of Chapter 11 bankruptcy jurisprudence that relegated a debtor’s insurer to the sidelines, giving insurers a new footing to try and avoid significant liability, say Stuart Gordon and Benjamin Wisher at Rivkin Radler.
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SVB Ch. 11 Shows Importance Of Filing Proof Of Claim Early
After a New York bankruptcy court’s recent ruling in SVB’s Chapter 11 case denied late claims filing requests related to post-bar date events, parties with potential claims against a debtor may need to seriously consider filing protective proofs of claim, says Kyle Arendsen at Squire Patton.
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High Court Made Profound Mistake In Tossing Purdue Deal
The U.S. Supreme Court's recent decision to throw out Purdue Pharma's Chapter 11 plan jeopardizes a multistate agreement that would provide approximately $7 billion in much-needed relief to help fight the opioid epidemic, with states now likely doomed to spend years chasing individual defendants across the globe, says Swain Wood at Morningstar.
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What FTX Case Taught Us About Digital Asset Recoverability
FTX's Chapter 11 plan has drawn lots of attention, but the focus should be on the anticipated outcome for investors, which counters several myths about digital currencies, innovation and recoverability, says Kyla Curley at StoneTurn.
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A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates
Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.