Large Cap
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October 25, 2024
Incora To Exit Ch. 11 With Uptier Fight Headed To Appeal
Aircraft parts supplier Incora has told a Texas bankruptcy judge that it expects to exit Chapter 11 under a consensual plan in the coming weeks, but a battle over the company's 2022 debt restructuring that helped trigger the case will continue.
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October 24, 2024
American Tire Gets Interim OK For $250M Ch. 11 Loan
Tire and wheel seller American Tire Distributors Inc. received interim approval Thursday from a Delaware bankruptcy judge to tap a $250 million new-money debtor-in-possession loan provided by its prepetition lenders.
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October 24, 2024
FTX Can Go Forward With $240M Acquisition Clawback
A Delaware bankruptcy judge has ruled defunct cryptocurrency exchange FTX Trading can continue to try and claw back $240 million it paid for a stock trading platform just before its Chapter 11 filing, while saying a $55 million bonus payment to the platform's ex-CEO is off limits.
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October 24, 2024
Alex Jones Atty Laments Sharing Sandy Hook Families' Info
The lead attorney in conspiracy theorist Alex Jones' Sandy Hook Elementary School defamation trial in Connecticut acknowledged Thursday that he "erred" when he allowed a hard drive containing the plaintiffs' confidential records to be transmitted to other attorneys, an act that led to ongoing disciplinary proceedings that threaten his law license.
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October 24, 2024
Morris Nichols' Bankruptcy Pro Being Promoted To Partner
Morris Nichols Arsht & Tunnell LLP announced Thursday that a bankruptcy attorney at the Delaware law firm will become the latest member of its partnership Jan. 1.
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October 24, 2024
ConvergeOne Can't Ax Snubbed Creditors' Ch. 11 Plan Appeal
A Texas federal judge said he wouldn't toss an appeal by a group of secured creditors who say they were improperly iced out of a new equity offering pool for ConvergeOne, writing that the group's challenge wouldn't unravel the reorganized information technology services company's confirmed Chapter 11 plan or harm third parties.
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October 24, 2024
Feds Want Leniency For Key Witness At Bankman-Fried Trial
Prosecutors asked a Manhattan federal judge for leniency when sentencing a former FTX executive who they said provided "substantial" assistance and testimony in the successful prosecution of the bankrupt cryptocurrency exchange's founder Sam Bankman-Fried.
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October 24, 2024
Meet The Attys Behind American Tire's Ch. 11
Tire and wheel seller American Tire Distributors Inc. has enlisted attorneys from Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP to see it through Chapter 11 as the debtor seeks to sell its business and remedy nearly $2 billion in debt.
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October 23, 2024
Redbox Parent's Ex-CEO Can Be Deposed In Del. Ch. 7
A Delaware bankruptcy judge on Wednesday sided with the Chapter 7 trustee for the parent of DVD rental company Redbox in a dispute over the trustee's choice of counsel from Pachulski Stang Ziehl & Jones LLP, and also found that a request to depose the debtor's former chief executive was not inappropriate.
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October 23, 2024
Purdue Seeks Another Extension Of Mediation On New Plan
OxyContin maker Purdue Pharma is asking a New York bankruptcy judge for another month to try to work out a replacement for its Chapter 11 plan and opioid settlement that were shot down by the U.S. Supreme Court in June.
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October 23, 2024
Deal With Feds In FTX Bankruptcy Remains Undone
When crypto giant FTX finally won court approval for its hard-fought bankruptcy plan earlier this month, it left one big piece of the puzzle unsolved: a dispute with federal prosecutors over $1 billion seized as part of the prosecution of founder Sam Bankman-Fried.
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October 23, 2024
Judge Says Ex-Steward Hospital Nurse Row Out Of His Hands
A Texas bankruptcy judge Wednesday declined to order the new owner of former Steward Health Care hospitals in Massachusetts to take back changes to nurses' union contracts it assumed under his sale order, saying it wasn't up to him to make the call.
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October 23, 2024
Leech Tishman Adds East Coast Restructuring Chair
Leech Tishman announced Tuesday that it is adding another chair to its business restructuring and insolvency practice, giving the team leadership on both coasts.
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October 23, 2024
American Tire Hits Ch. 11 Again With $1.9B Of Debt, Sale Plan
Tire and wheel seller American Tire Distributors Inc. has filed for Chapter 11 protection in Delaware bankruptcy court with $1.9 billion of debt and plans to sell the company through a court-supervised process.
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October 22, 2024
Judge Tells Firm To Tighten Up Testimony In Nassar Fee Trial
A Michigan federal judge cautioned a local personal injury firm Tuesday to reel in the head of the firm on the witness stand, warning he was losing the jury in a long "inside baseball" legal discussion in his efforts to get a greater cut of fees from a Colorado firm for work on a Larry Nassar abuse settlement.
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October 22, 2024
Hertz Board Panel Takes Control Of Shareholder Buyback Suit
Delaware's chancellor has granted a Hertz Global Holdings Inc. board special committee's request to investigate stockholder-filed derivative claims challenging the fairness of $4 billion in stock buybacks in 2022 that vaulted a private equity-based shareholder into a controlling position, in a ruling that also sidelined related direct damage claims.
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October 22, 2024
How Online Creditor Groups Are Shaping Major Bankruptcies
Internet-based creditor groups are as powerful as ever in big bankruptcy cases, with judges awarding fees to social media influencers and debtors deploying online strategies to corral support for their reorganization plans.
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October 22, 2024
Tupperware Reaches Deal To Sell To Creditors In Ch. 11
Bankrupt food storage product company Tupperware Inc. said Tuesday it had reached a deal with a group of secured creditors for an $87.3 million sale transaction that would resolve an ongoing issue wherein creditors were seeking conversion or dismissal of the Chapter 11 case.
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October 22, 2024
Behind The Ch. 11 Filing Of Wheel-Maker Accuride
Wheel manufacturer Accuride Corp. became the latest private equity-backed company to hit bankruptcy due to the strain of inflation and supply chain problems when it followed fellow wheel company Wheel Pros. into Chapter 11 earlier this month.
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October 22, 2024
Amazon, Meta Say Ch. 11 Trustee Can't Take Guo Co. Cash
Amazon.com, Meta, Fox News and dozens of other corporate powerhouses, along with several law firms, have asked a Connecticut bankruptcy judge to block a Chapter 11 trustee from recouping cash payments for services that flowed through shell companies connected to convicted Chinese exile Miles Guo.
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October 22, 2024
How Law Firms Get And Keep Elite Status
For decades, a handful of New York-based law firms thoroughly dominated the national consciousness when it came to power, profitability and prestige. But in today's legal market, increased movement of partners and clients from one firm to the next has begun to shake things up and create opportunities for go-getters to ascend the ranks.
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October 22, 2024
The 2024 Prestige Leaders
Check out our Prestige Leaders ranking, analysis and interactive graphics to see which firms stand out for their financial performance, attractiveness to attorneys and law students, ability to secure accolades and positive legal news media representation.
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October 22, 2024
Real Estate Exec Guilty Of $77M WeWork Stock Fraud
A Manhattan federal jury on Tuesday convicted the former CEO of real estate investment firm Arciterra for trying to manipulate the price of WeWork stock via a $77 million tender offer on the cusp of the office-sharing company's bankruptcy filing in late 2023.
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October 21, 2024
$77M WeWork Bid Was Fraud 'From Beginning To End,' Jury Told
New York federal prosecutors made their final pitch on Monday to jurors weighing the fate of the former CEO of real estate investment firm Arciterra accused of manipulating the market through a bogus $77 million tender offer to take control of WeWork, saying it was a sophisticated fraud and not a real play for control of the company.
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October 21, 2024
US Trustee, Insurers Pan New Syracuse Diocese Ch. 11 Plan
The U.S. Trustee's Office and several insurers objected to the opt-out mechanism for third party releases in the latest Chapter 11 plan from the Roman Catholic Diocese of Syracuse, New York, arguing that such releases are barred by the U.S. Supreme Court's recent decision in Purdue Pharma.
Expert Analysis
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Ch. 11 Ruling Shows Early Attempt To Tackle Purdue Fallout
A Delaware bankruptcy court’s recent ruling in Parlement Technologies’ Chapter 11 case, which denied a bid by Parler’s former owner to extend its bankruptcy stay to nondebtors, illustrates early efforts to grapple with the U.S. Supreme Court's decision in Purdue Pharma for a recurring bankruptcy issue, say Daniel Lowenthal and Jonah Wacholder at Patterson Belknap.
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9 Liability Management Tips As Debt Maturity Cliff Looms
As the debt maturity cliff swiftly approaches in this challenging environment, attorneys at Winston & Strawn highlight the top considerations for boards of directors and finance professionals to think about when structuring and executing liability management transactions, including reviewing capital structure, evaluating debt covenants, and more.
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Firms Must Offer A Trifecta Of Services In Post-Chevron World
After the U.S. Supreme Court’s Loper Bright Enterprises v. Raimondo decision overturning Chevron deference, law firms will need to integrate litigation, lobbying and communications functions to keep up with the ramifications of the ruling and provide adequate counsel quickly, says Neil Hare at Dentons.
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How Cos. Can Leverage IP In Corporate Bankruptcy
In light of an increase in year-to-date Chapter 11 filings, businesses must understand the importance and value of intellectual property in corporate bankruptcy and restructuring, from contributing to enterprise value, to providing leverage in negotiations and facilitating recovery, says Gregory Campanella at Ocean Tomo.
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Avoiding Retail Bankruptcy As Economic Uncertainty Persists
Amid record retail bankruptcies and continued economic uncertainty in 2024, retailers can take specific steps like building stronger cash-flow models, managing inventory wisely and reassessing cost structures to avoid financial distress, say consultants at BRG.
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Banking Compliance Takeaways From Joint Agency Statement
Federal bank regulatory agencies’ recent joint statement warning of risks associated with third-party fintech deposit services spotlights a fundamental problem that may arise with bank deposit products that are made through increasingly complex customer relationships, says Tom Witherspoon at Stinson.
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Litigation Funding Disclosure Key To Open, Impartial Process
Blanket investor and funding agreement disclosures should be required in all civil cases where the investor has a financial interest in the outcome in order to address issues ranging from potential conflicts of interest to national security concerns, says Bob Goodlatte, former U.S. House Representative for Virginia.
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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.