Mid Cap

  • June 12, 2024

    US Trustee Fights Appgate Ch. 11 Plan's Opt-Out Releases

    The Office of the United States Trustee objected on Wednesday to the Chapter 11 plan proposed by tech firm Appgate Inc., saying it would seek to impose an "opt-out only release" on equity holders that would extinguish their potential claims against non-debtors.

  • June 12, 2024

    Pool Co. Hits Ch. 11 After 'Crippling' $16M False Ads Verdict

    The American arm of a Chinese swimming pool products manufacturer has declared bankruptcy after it was slapped with a $16 million false advertising and unfair business practices judgment in North Carolina that the company previously warned would put it out of business.

  • June 12, 2024

    Pillsbury Adds Aviation-Focused Bankruptcy Partner In NY

    Pillsbury Winthrop Shaw Pittman LLP has hired a corporate restructuring partner with aviation expertise for its insolvency and restructuring group in New York.

  • June 12, 2024

    Ambri Gets OK For Ch. 11 Loan, Sale Plans After Creditor Deal

    A Delaware bankruptcy judge on Wednesday approved $5.75 million in Chapter 11 financing for Ambri Inc. and set the battery startup on the path for a July asset sale after hearing the company had reached a deal with its unsecured creditors.

  • June 11, 2024

    Alston Steers Transport Co. Coach Through Ch. 11

    Bus company Coach USA Inc. announced Tuesday that it filed for Chapter 11 protection in Delaware bankruptcy court, saying it has struck asset purchase agreements to preserve jobs and continue offering its ground passenger transportation services.

  • June 11, 2024

    Pharmacy Co. Optio Gets Interim OK For $10M DIP Package

    Illinois-based specialty pharmacy chain Optio received interim approval at a first-day hearing Tuesday in Delaware bankruptcy court to access a $10 million in new money debtor-in-possession financing to fund its Chapter 11.

  • June 11, 2024

    Acorda Disclosures Lack Info On Releases, Say Creditors

    Drugmaker Acorda Therapeutics Inc. faced objections to its disclosure statement from its creditors committee and the U.S. Trustee's Office, which said it failed to provide enough information about releases in the plan.

  • June 11, 2024

    Meet The Attorneys Formulating Optio Rx's Ch. 11

    Specialty pharmacy chain Optio Rx has hired a legal team from boutique corporate and bankruptcy law firm Chipman Brown Cicero & Cole LLP, as it plans to swap debt for equity and cut down on some $235 million of debt through a Chapter 11 in Delaware.

  • June 11, 2024

    Willkie Farr Hires 11 Ex-Latham Bankruptcy Attys In Germany

    Willkie Farr & Gallagher LLP has snagged three bankruptcy partners and eight more attorneys from Latham & Watkins LLP in Germany as it expands its bench in the country, the firm announced Tuesday.

  • June 11, 2024

    AI Hiring Platform's Ex-CEO Charged With $27M Fraud

    The founder of hiring startup Joonko Diversity Inc. has been charged with fraud, with prosecutors saying Tuesday that she deceived investors into dumping $27 million into a platform that supposedly used artificial intelligence to help companies recruit diverse job candidates. 

  • June 11, 2024

    How Powerful Companies Profit From 'Unjust Debts' - Part 2

    Companies that use Chapter 11 bankruptcy to deal with litigation over dangerous products they produced or other misconduct rely on a broad conception of what counts as a debt to prove their eligibility for bankruptcy relief — a privilege that regular people aren't afforded, according to a new book by a University of North Carolina School of Law professor.

  • June 10, 2024

    How The Bankruptcy System Became 'Unjust' - Part 1

    Changes in bankruptcy law that have made it more difficult for individuals facing financial hardship to extinguish their debts and get a fresh start have also allowed businesses to use Chapter 11 as a "legal Swiss Army knife" to deal with issues that the system was never meant to handle, according to a book out Tuesday by a University of North Carolina School of Law professor.

  • June 10, 2024

    Bankrupt UpHealth Warned Of Criminal Charges In India

    A court in India said it has received a criminal charge sheet issued by an investigative governmental agency in Calcutta against bankrupt American healthcare company UpHealth, targeting it and executives over accusations that they conspired to defraud a local healthcare system.

  • June 10, 2024

    High Court On Ch. 11, New Bank Rules, Alex Jones Ch. 7 Shift

    The U.S. Supreme Court said an insurance company has "party in interest" standing to intervene in a Chapter 11 case, the U.S. Department of Justice's bankruptcy watchdog "modernized" its agreement for banks holding debtor funds, and recent motions could pivot Alex Jones and his media company's Chapter 11s to Chapter 7 liquidations.

  • June 10, 2024

    Giuliani's Ch. 11 Creditors Subpoena Sept. 11 Charity

    Creditors of Rudy Giuliani are probing whether the former New York City mayor has been getting financial support from a nonprofit called Tunnel to Towers Foundation, which says its mission is to assist families of Sept. 11 first responders, according to a subpoena the creditors said they served Monday.

  • June 10, 2024

    3 Takeaways From Cigna's Win In 9th Circ. Rehab Claim Fight

    The Ninth Circuit's recent decision finding Cigna is off the hook for $8.6 million in out-of-network mental health and substance use disorder treatment claims against employee benefit plans administered by the insurer could discourage similar litigation, benefits attorneys say. Here are three key takeaways from the decision.

  • June 10, 2024

    Fish Taco Chain Rubio's Can Tap $4.5M Ch. 11 Loan

    Rubio's Coastal Grill received a Delaware bankruptcy judge's initial approval on Monday to borrow $4.5 million in Chapter 11 financing, starting the California-based fish taco chain on a road it hopes will lead to a sale of the debtor's remaining assets by the first week of August.

  • June 10, 2024

    Amid FBI Probe, Troubled Law Firm Gets Fees Win At 5th Circ.

    An embattled Texas law firm has won another shot to secure fees for its work on hurricane-related cases in Louisiana, the Fifth Circuit ruled, one day after the FBI revealed it was investigating the firm over its client solicitation practices.

  • June 10, 2024

    Paul Hastings Restructuring Pro Rejoins Arnold & Porter

    Arnold & Porter Kaye Scholer LLP announced on Monday the hiring of a former Paul Hastings LLP of counsel as a partner in its bankruptcy and restructuring practice out of Chicago.

  • June 10, 2024

    New 'Access DOJ' Aims To Nix Barriers, Boost Accessibility

    The U.S. Department of Justice has announced the launch of an initiative to improve access to its programs and services, including an upcoming project to make it easier to report tips about crime or other violations of law.

  • June 10, 2024

    Pharmacy Biz Files Ch. 11 With More Than $235M In Debt

    Illinois-based specialty pharmacy Optio Rx has filed for Chapter 11 protection in Delaware bankruptcy court with more than $235 million in debt and an agreement with creditors for a partial debt-for-equity swap.

  • June 07, 2024

    11th Circ. Urged To Undo Exclusion Of $80M Asset Valuation

    A trustee for creditors of ATIF Inc. told the Eleventh Circuit on Friday that a trial judge erred in excluding an expert's $80 million valuation of the bankrupt title insurance underwriter's 2015 transfer of assets to Old Republic National Title Insurance Co.

  • June 07, 2024

    Brewery Wants Extra Damages For Co-Owner's 'Brazen' Theft

    A Colorado brewery accusing a former manager of embezzling hundreds of thousands of dollars has asked a state court for permission to seek exemplary damages, saying there's plenty of evidence the former manager willfully stole the money for himself and competing businesses he had a stake in.

  • June 07, 2024

    Allegiance Can Pay Professional Fees Over Creditor Objection

    A Delaware bankruptcy judge said Friday that bankrupt mining operation Allegiance Coal USA can begin to pay approximately $5.7 million in professional fees using cash left in its estate after its Chapter 11 reorganization bid flopped. 

  • June 07, 2024

    'Deceit On Deceit': 7th Circ. OKs Atty's Asset-Hiding Sentence

    The Seventh Circuit Court of Appeals upheld a Chicago-area lawyer's three-year sentence for hiding over $350,000 in her brother's bankruptcy, finding two sentence enhancements were properly applied since she "layered deceit upon deceit" to try to conceal assets and cover her tracks.

Expert Analysis

  • Cannabis Ruling Lights Path For Bankruptcy Protection

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    A recent Massachusetts bankruptcy appellate court ruling in Blumsack v. Harrington leaves the door open for those employed in the cannabis industry to seek bankruptcy relief where certain conditions are met, but rescheduling marijuana as a Schedule III drug may complicate matters, say Jane Haviland and Kathryn Droumbakis at Mintz.

  • What Bankruptcy Deadline Appeal May Mean For Claimants

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    If the Third Circuit reverses a recent appeal made in In re: Promise Healthcare, litigation claimants within the circuit will not be able to rely on the proof of claim process to preserve the claim — but if the court affirms, the U.S. Supreme Court may need to step in to resolve the circuit split on this issue, say attorneys at DLA Piper.

  • Conn. Bankruptcy Ruling Furthers Limitation Extension Split

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    A recent Connecticut bankruptcy court decision further solidifies a split of authority on whether Bankruptcy Rule 9006(b) may be used to extend the limitations period, meaning practitioners seeking to extend should serve the motion on all applicable parties and, where possible, rely on the doctrine of equitable tolling, says Shane Ramsey at Nelson Mullins.

  • A 5th Circ. Lesson On Preserving Indemnification Rights

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    The Fifth Circuit's recent decision in Raymond James & Associates v. Jalbert offers an important lesson for creditors and parties to indemnification agreements: If a debtor has indemnified a creditor, the creditor should consider participating in the bankruptcy case to avoid being deemed to have forfeited its indemnification rights, say Dania Slim and Alana Lyman at Pillsbury.

  • Spartan Arbitration Tactics Against Well-Funded Opponents

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    Like the ancient Spartans who held off a numerically superior Persian army at the Battle of Thermopylae, trial attorneys and clients faced with arbitration against an opponent with a bigger war chest can take a strategic approach to create a pass to victory, say Kostas Katsiris and Benjamin Argyle at Venable.

  • Del. Ruling Shows Tension Between 363 Sale And Labor Law

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    The Delaware federal court's ruling in the Braeburn Alloy Steel case highlights the often overlooked collision between an unstayed order authorizing an asset sale free and clear of successor liability under Section 363 of the Bankruptcy Code and federal labor law imposing successor liability on the buyer, say attorneys at Proskauer.

  • How Clients May Use AI To Monitor Attorneys

    Excerpt from Practical Guidance
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    Artificial intelligence tools will increasingly enable clients to monitor and evaluate their counsel’s activities, so attorneys must clearly define the terms of engagement and likewise take advantage of the efficiencies offered by AI, says Ronald Levine at Herrick Feinstein.

  • Del. Insurance Co. Liquidation Reveals Recovery Strategies

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    Arrowood's recent liquidation in the Delaware Chancery Court offers a positive development for policyholders and claimants, providing access to guaranty association protections amid the company's demise, say Timothy Law and Ann Kramer at Reed Smith.

  • The Pop Culture Docket: Judge D'Emic On Moby Grape

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    The 1968 Moby Grape song "Murder in My Heart for the Judge" tells the tale of a fictional defendant treated with scorn by the judge, illustrating how much the legal system has evolved in the past 50 years, largely due to problem-solving courts and the principles of procedural justice, says Kings County Supreme Court Administrative Judge Matthew D'Emic.

  • Navigating Asset Tracing Challenges In Bankruptcy

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    A Virginia court’s recent ruling in Health Diagnostic Laboratory Inc.'s bankruptcy highlights the heightened demand for asset tracing and the strategic use of the lowest intermediate balance rule in recovering funds from commingled accounts, says Daniel Lowenthal at Patterson Belknap.

  • Lender Agreements And Unitranche Facilities: A Fresh Look

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    Unitranche facilities — which offer blended interest rates in a single loan document — are gaining prevalence, and lenders and borrowers should understand their advantages, as well as concerns over the enforceability of a unitranche-style agreement among lenders in bankruptcy, say attorneys at Mayer Brown.

  • What Banks Should Know About FDIC Assessment Rule

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    Max Bonici at Venable answers questions banking organizations may have about the Federal Deposit Insurance Corp.'s recent approval of a rule implementing a special assessment on banks to recoup costs associated with protecting uninsured depositors after the bank failures earlier this year, and highlights other considerations for uninsured deposits.

  • Performing Music Makes Me A Better Lawyer

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    The discipline of performing live music has directly and positively influenced my effectiveness as a litigator — serving as a reminder that practice, intuition and team building are all important elements of a successful law practice, says Jeff Wakolbinger at Bryan Cave.

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