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Bankruptcy
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March 10, 2025
Insurer Says CarePoint's Ch. 11 Plan 'Fatally Flawed'
An insurer has asked a Delaware bankruptcy judge to reject CarePoint Health Systems' Chapter 11 plan, saying it is designed to unfairly benefit the debtor's landlord with liability releases.
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March 10, 2025
Feds Sue FDIC For $1.9M For First Republic Tax Bill
The U.S. government sued the Federal Deposit Insurance Corp. in D.C. federal court as receiver for the failed First Republic Bank, alleging the bank understated its withholding tax for U.S.-sourced income of foreigners and now owes almost $2 million to the federal government.
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March 10, 2025
PierFerd Hires 2 Ex-CM Law Bankruptcy Partners
Manhattan-based Pierson Ferdinand LLP announced Monday the hiring of two former partners at CM Law PLLC for its bankruptcy, financial restructuring and reorganization practice.
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March 10, 2025
Judge Alters Terraform Crypto Claims Order To Avoid Bullying
A Delaware bankruptcy judge on Monday asked the Chapter 11 plan administrator of defunct cryptocurrency software developer Terraform Labs to slightly modify instructions for creditors filing claims for its collapsed stablecoin after concerns were raised about language that could be intimidating to claimants.
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March 10, 2025
Pot Shop Receiver Says Brand Licensor Diverted Product
A receiver overseeing the possible sale or liquidation of a Massachusetts cannabis retailer asked a judge to order the return of more than 900 packages of product taken from its cultivation facility days before the receivership began.
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March 10, 2025
Business Telecom Co. Mitel Files $1.1B Prepack Ch. 11
Communications software company Mitel Networks filed for Chapter 11 protection Monday in a Texas bankruptcy court with a prepackaged equity-swap plan it says will cut $1.15 billion from its more than $1.3 billion in secured debt.
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March 07, 2025
Trucking Co. Liquidation Hearing Delayed Amid Sale Debate
A hearing for bankrupt trucking company KAL Freight to determine whether to convert the case to a Chapter 7 liquidation was pushed back to next week as the debtor tried to finalize a Chapter 11 asset sale.
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March 07, 2025
No Ch. 11 Plan Stay For Ex-Eletson Owners
A New York bankruptcy judge has declined to pause Greek shipping group Eletson Holdings' Chapter 11 plan while its former owners appeal the plan's confirmation, handing the company's current management a win as they seek to compel the ex-leadership to enforce the plan.
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March 07, 2025
Steward Health Gets OK For Deal On Transition Contracts
A Texas bankruptcy judge Friday gave Steward Health Care the go-ahead to turn over responsibility for transition services for the dozens of hospitals it has sold during its Chapter 11 case to another hospital chain.
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March 07, 2025
Nikola's Ch. 11 Sale Timeline Gets Court Approval
Bankrupt electric vehicle and hydrogen fueling technology maker Nikola Corporation received approval Friday in Delaware for its proposed bidding procedures, which seek to conduct an auction for its asset in a month's time.
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March 07, 2025
Tupperware Can Seek Votes For Post-Sale Liquidation Plan
The estate of food storage company Tupperware Brands can solicit votes on its Chapter 11 liquidation plan, even as its creditors accused the debtor's latest plan of deviating from a prior agreement.
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March 07, 2025
Bed Bath & Beyond Investors Can't Move Judge On Class Cert.
Bed Bath & Beyond shares did not trade on an efficient market during the class period, a Washington, D.C., federal judge confirmed again, refusing to reconsider his class certification denial in a suit from the now-bankrupt retailer's investors who alleged they were misled by company executives and a billionaire investor.
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March 07, 2025
Dispensary Fights Lowenstein Sandler's Bid To Merge Suits
A cannabis dispensary has urged a New Jersey state court to reject Lowenstein Sandler LLP's bid to consolidate its malpractice suit against the firm and the firm's unpaid legal fee suit against the business, saying combining the cases would "reward Lowenstein's blatant litigation tactics."
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March 06, 2025
High Court Urged To Toss $22M SEC Disgorgement Order
An investment advisory firm has asked the U.S. Supreme Court to review a First Circuit ruling that upheld an order for the firm to pay $22 million in disgorgement to the U.S. Securities and Exchange Commission, arguing that courts cannot impose disgorgement when investors have not suffered any financial harm.
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March 06, 2025
Adams Accuser's Bankruptcy Unlikely To End Sex Assault Suit
A state judge on Thursday heaped skepticism on New York City's bid to dismiss a sexual harassment lawsuit against Mayor Eric Adams based on the accuser filing for bankruptcy, noting a federal judge has now directed a trustee to pursue the claims.
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March 06, 2025
Energy Engineering Firm ENGlobal Files Ch. 11 With $9M Debt
Engineering firm ENGlobal Corp., which focuses on assisting the energy sector, filed for Chapter 11 protection with a group of subsidiaries in Texas and carrying nearly $9 million in debt.
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March 06, 2025
Bankruptcy Court's Input Sought In Judge Romance Row
A federal judge asked a Texas bankruptcy court to determine if the CEO of a now-bankrupt barge company has standing to sue over a former judge's secret romance with a Jackson Walker partner.
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March 06, 2025
UK Authorities Clear Amex GBT's $570M CWT Buy
United Kingdom antitrust authorities gave the formal all-clear Thursday to American Express Global Business Travel Inc.'s planned $570 million purchase of CWT Holdings LLC, leaving a Justice Department lawsuit the only hurdle remaining for the corporate travel management services merger.
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March 06, 2025
Retiring Mich. Chief Judge Helped Mediate Detroit Bankruptcy
U.S. District Judge Sean F. Cox, the Eastern District of Michigan's chief judge, has informed President Donald Trump he will retire on July 27, according to an update posted on the federal judiciary's website on Thursday.
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March 06, 2025
New York Real Estate Cos. Seek Ch. 11 Protection
Two real estate companies facing foreclosure litigation sought bankruptcy protection in New York each listing at least $10 million in debt.
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March 05, 2025
Amazon, Others Must Face Guo Ch. 11 Clawback Claims
A Chapter 11 trustee can chase cash payments Chinese exile Miles Guo passed through nondebtor alter ego shell companies when buying goods and services from a long list of companies and law firms, a Connecticut bankruptcy judge has ruled.
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March 05, 2025
US Development Agency Opposes Credito Real Ch. 15
The U.S. International Development Finance Corp. has challenged Mexico-based payday lender Credito Real's petition for Chapter 15 recognition in Delaware, alleging its bankruptcy plan, which a Mexican court has approved, contains releases impermissible under U.S. bankruptcy law.
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March 05, 2025
Alex Jones Escapes Immediate Sandy Hook Payment Bid
Bankrupt Infowars host Alex Jones has escaped a request to immediately pay more than $1 billion to the families of Sandy Hook Elementary School victims who sued him for defamation, the Connecticut Appellate Court has ruled.
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March 05, 2025
Bradley Arant Adds Parker Hudson Bankruptcy Ace In Atlanta
Bradley Arant Boult Cummings LLP has brought on a Parker Hudson Rainer & Dobbs LLP partner, who is based in Atlanta, to strengthen its bankruptcy and creditors' rights practice.
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March 05, 2025
Skin Care Tech Co. Files Ch. 11 With $400M Prepackaged Plan
Skin care and beauty technology company Cutera Inc. filed for Chapter 11 protection in a Texas bankruptcy court Wednesday with over $429 million in debt and a prepackaged debt-swap plan to cut that number by nearly $400 million.
Expert Analysis
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Series
Documentary Filmmaking Makes Me A Better Lawyer
Becoming a documentary filmmaker has allowed me to merge my legal expertise with my passion for storytelling, and has helped me to hone negotiation, critical thinking and problem-solving skills that are important to both endeavors, says Robert Darwell at Sheppard Mullin.
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Litigation Funding Disclosure Debate: Strategy Considerations
In the ongoing debate over whether courts should require disclosure of litigation funding, funders and plaintiffs tend to argue against such mandates, but voluntarily disclosing limited details about a funding arrangement can actually confer certain benefits to plaintiffs in some scenarios, say Andrew Stulce and Marc Cavan at Longford Capital.
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Series
Adventure Photography Makes Me A Better Lawyer
Photographing nature everywhere from Siberia to Cuba and Iceland to Rwanda provides me with a constant reminder to refresh, refocus and rethink the legal issues that my clients face, says Richard Birmingham at Davis Wright.
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How Ch. 11 Can Alleviate Merchant Cash Advance Concerns
Merchant cash advance funding is one of the biggest challenges for small businesses today because funders are so prevalent, aggressive and expensive, but bankruptcy can provide several tools for dealing with MCA agreements that may allow the debtor business to restructure and survive, says Patricia Fugée at FisherBroyles.
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5 Ways To Create Effective Mock Assignments For Associates
In order to effectively develop associates’ critical thinking skills, firms should design mock assignments that contain a few key ingredients, from messy fact patterns to actionable feedback, says Abdi Shayesteh at AltaClaro.
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8 Lessons Yellow Corp. Layoffs Can Teach Distressed Cos.
A Delaware bankruptcy court’s recent decision, examining trucking company Yellow Corp.’s abrupt termination of roughly 25,500 employees, offers financially distressed businesses a road map for navigating layoffs under the Worker Adjustment and Retraining Notification Act, say attorneys at King & Spalding.
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Mentorship Resolutions For The New Year
Attorneys tend to focus on personal achievements or career milestones when they set yearly goals, but one important area often gets overlooked in this process — mentoring relationships, which are some of the most effective tools for professional growth, say Kelly Galligan at Rutan & Tucker and Andra Greene at Phillips ADR.
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Series
Coaching Little League Makes Me A Better Lawyer
While coaching poorly played Little League Baseball early in the morning doesn't sound like a good time, I love it — and the experience has taught me valuable lessons about imperfection, compassion and acceptance that have helped me grow as a person and as a lawyer, says Alex Barnett at DiCello Levitt.
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5 Litigation Funding Trends To Note In 2025
Lawyers and their clients must be prepared to navigate an evolving litigation funding market in 2025, made more complicated by a new administration and the increasing overall cost of litigation, says Jeffery Lula at GLS Capital.
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Rethinking Litigation Risk And What It Really Means To Win
Attorneys have a tendency to overestimate litigation risk before summary judgment and underestimate risk after it, but an eight-stage litigation framework can clarify risk at different points and help litigators reassess what true success looks like in any particular case, says Joshua Libling at Arcadia Finance.
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Lessons From Two New Year's Eve Uptier Exchange Decisions
On the last day of 2024, two different courts issued important decisions relating to non-pro rata uptier exchanges — and while they differ, both rulings highlight that transactions effected in reliance on undefined terms in debt agreements come with increased risk, say attorneys at Simpson Thacher.
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Series
Playing Rugby Makes Me A Better Lawyer
My experience playing rugby, including a near-fatal accident, has influenced my legal practice on a professional, organizational and personal level by showing me the importance of maintaining empathy, fostering team empowerment and embracing the art of preparation, says James Gillenwater at Greenberg Traurig.
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Opinion
No, Litigation Funders Are Not 'Fleeing' The District Of Del.
A recent study claimed that litigation funders have “fled” Delaware federal court due to a standing order requiring disclosure of third-party financing, but responsible funders have no problem litigating in this jurisdiction, and many other factors could explain the decline in filings, say Will Freeman and Sarah Tsou at Omni Bridgeway.
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5 E-Discovery Predictions For 2025 And Beyond
In the year to come, e-discovery will be shaped by new and emerging trends, from the adoption of artificial intelligence provisions in protective orders, to the proliferation of emojis as a source of evidence in contemporary litigation, say attorneys at Littler.
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7 Ways 2nd Trump Administration May Affect Partner Hiring
President-elect Donald Trump's return to the White House will likely have a number of downstream effects on partner hiring in the legal industry, from accelerated hiring timelines to increased vetting of prospective employees, say recruiters at Macrae.