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Bankruptcy
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March 12, 2025
Mo. Court Finds Exclusion Bars Mallinckrodt Opioid Coverage
A group of insurers have no coverage obligations under certain policies issued to drugmaker Mallinckrodt as a trust created from the company's first bankruptcy seeks to resolve underlying opioid claims with the help of insurance benefits, a Missouri state court ruled, finding a "your products" exclusion applicable.
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March 12, 2025
Pallet Biz Says District Court Can't Weigh Bankruptcy Order
Pallet company PaLIoT Solutions Inc. told a Michigan federal judge on Wednesday that the issue of whether it violated a bankruptcy court's order regarding trade secrets purchased in a rival company's asset sale has already been decided, while the competitor said its rival is flip-flopping on its arguments.
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March 12, 2025
Willkie Beats Malpractice Suit Over ERISA Ch. 11 Advice
An Ohio federal judge affirmed Tuesday a bankruptcy court's decision tossing legal malpractice claims filed by a coal company executive's estate against Willkie Farr & Gallagher LLP, rejecting the estate's arguments it sufficiently alleged Willkie was grossly negligent in failing to warn the estate about a potential $6.5 billion ERISA liability.
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March 12, 2025
Pa. Coal Co. Auction Gets 2-Week Pause After Value Spike
A Pennsylvania bankruptcy judge has agreed to allow a pause in the auction of bankrupt Corsa Coal Corp.'s assets after hearing from lawyers in the Chapter 11 case that the machinery, equipment and real estate being sold has recently been appraised for more than the current bids.
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March 12, 2025
Northvolt's Ch. 11 Dismissal Possible After Swedish Filing
Bankrupt electric vehicle battery maker Northvolt AB told a Texas bankruptcy judge that its Chapter 11 case is possibly headed for dismissal after its parent company filed an insolvency case in Swedish court early Wednesday.
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March 12, 2025
US Trustee Seeks Sanctions Against NY Lawyer
The federal bankruptcy watchdog asked a New York judge Wednesday to sanction a lawyer who allegedly concealed her conflicts of interest while representing a debtor and a buyer in two separate Chapter 11 cases.
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March 12, 2025
2nd Circ. Upholds Sanctions In Chinese Billionaire's Ch. 11
The Second Circuit Court of Appeals on Wednesday torpedoed an appeal from the daughter of bankrupt Chinese exile Miles Guo — also known as Ho Won Kwok — and her attorney seeking to overturn a nearly $83,400 discovery sanction, saying the contempt ruling was merited.
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March 11, 2025
Zachry Opposes Nebraska Utility's $38M Administrative Claim
Bankrupt natural gas contractor Zachry Holdings has objected to a Nebraska public electric utility's administrative claim seeking $38 million in damages for delays in the construction of new generating stations, saying it is too early to seek the claim, and the requested fees exceed the purported damages.
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March 11, 2025
Judge Questions Authority To Pay Giuliani's Ch. 11 Bill
A New York bankruptcy judge questioned Tuesday whether he could order former New York City Mayor Rudy Giuliani to sell off real estate to cover claims against his Chapter 11 estate, saying an order dismissing his bankruptcy case included assumptions that didn't come to fruition.
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March 11, 2025
Spirit Airlines Judge Says Opt-Out Releases Well Explained
A New York bankruptcy judge explained his February decision to approve third-party releases in budget air carrier Spirit Airlines' Chapter 11 plan, saying an opt-out mechanism of the releases is enough to establish the consent of creditors, given how thoroughly the process was discussed and the number of people who did opt out.
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March 11, 2025
Fannie Mae Says Complex Filed Ch. 11 To Duck $73M Loan
Fannie Mae told a federal court Monday that a Houston apartment complex's Chapter 11 filing was a "tactic" to avoid its obligation to repay a $73 million loan.
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March 11, 2025
Mitel Networks Gets OK For $60M Ch. 11 Financing
A Texas bankruptcy judge Tuesday gave communications software company Mitel Networks preliminary permission to draw on $60 million in Chapter 11 financing as it heads for an April hearing on its prepackaged restructuring plan.
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March 11, 2025
Dykema Doubles Houston Roster With 7 New Atty Hires
Dykema Gossett PLLC has expanded in Houston with the addition of seven attorneys, five of whom joined from Kane Russell Coleman Logan PC and two who came aboard from Hirsch & Westheimer PC.
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March 10, 2025
Warren Says Defense Nominee Has 'Clear Conflict Of Interest'
Democratic Sen. Elizabeth Warren called out deputy defense secretary nominee Stephen Feinberg on Sunday for a "clear conflict of interest" due to his ties to Ligado Networks, which is suing the federal government for $40 billion, and urged him to agree to recuse himself from any decisions about the company.
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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.
Expert Analysis
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The Strategic Advantages Of Appointing A Law Firm CEO
The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.
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Series
Beekeeping Makes Me A Better Lawyer
The practice of patent law and beekeeping are not typically associated, but taking care of honeybees has enriched my legal practice by highlighting the importance of hands-on experience, continuous learning, mentorship and more, says David Longo at Oblon McClelland.
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Unpacking State AG Approaches To Digital Asset Enforcement
Attorneys at Cozen O'Connor survey recent digital asset enforcement by attorneys general nationwide driven by concerns over regulatory gaps where technological developments and market changes have outpaced legislation.
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Opinion
Legal Institutions Must Warn Against Phony Election Suits
With two weeks until the election, bar associations and courts have an urgent responsibility to warn lawyers about the consequences of filing unsubstantiated lawsuits claiming election fraud, says Elise Bean at the Carl Levin Center for Oversight and Democracy.
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What Being An 'Insider' Means In Ch. 11, And Why It Matters
As borrowers grapple with approaching near-term maturities on corporate debt, lenders should be proactive in mitigating the risks of being classified as an insider in potential bankruptcies, including heightened scrutiny, preference risk, plan voting and more, say David Hillman and Steve Ma at Proskauer.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.
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Series
Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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Navigating The Bankruptcy Terrain After Purdue Pharma
The U.S. Supreme Court’s June ruling in Harrington v. Purdue Pharma is having a significant impact on bankruptcies, with recent cases addressing nonconsensual third-party releases and opt-out mechanisms, and highlighting strategies practitioners can employ to avoid running afoul of the decision, say Brett Axelrod and Agostino Zammiello at Fox Rothschild.
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.
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Opinion
Congress Can And Must Enact A Supreme Court Ethics Code
As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.
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Series
The Pop Culture Docket: Justice Lebovits On Gilbert And Sullivan
Characters in the 19th century comic operas of Gilbert and Sullivan break the rules of good lawyering by shamelessly throwing responsible critical thought to the wind, providing hilarious lessons for lawyers and judges on how to avoid a surfeit of traps and tribulations, say acting New York Supreme Court Justice Gerald Lebovits and law student Tara Scown.
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How 9th Circ. Ruling Expands Bankruptcy Trustees' Powers
The Ninth Circuit recently held in The Lovering Tubbs Trust v. Hoffman that a trustee can avoid intentionally fraudulent transfers, even if no creditor suffered harm as a result, materially strengthening bankruptcy trustees' powers, say Robert Klyman and Rod Kazempour at DLA Piper.
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State Of The States' AI Legal Ethics Landscape
Over the past year, several state bar associations, as well as the American Bar Association, have released guidance on the ethical use of artificial intelligence in legal practice, all of which share overarching themes and some nuanced differences, say Eric Pacifici and Kevin Henderson at SMB Law Group.
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8 Childhood Lessons That Can Help You Be A Better Attorney
A new school year is underway, marking a fitting time for attorneys to reflect on some fundamental life lessons from early childhood that offer a framework for problems that no legal textbook can solve, say Chris Gismondi and Chris Campbell at DLA Piper.
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3rd Circ. Hertz Ruling Highlights Flawed Bankruptcy Theory
The Third Circuit, in its recent Hertz bankruptcy decision, became the latest appeals court to hold that noteholders were entitled to interest before shareholders under the absolute priority rule, but risked going astray by invoking the flawed theory of code impairment, say Matthew McGill and David Casazza at Gibson Dunn.