Mid Cap
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November 22, 2024
Ex-Loot Crate Owner Says Fee Cut Deal Will Pave Ch. 11 Exit
The former owner of pop-culture merchandise subscription box Loot Crate has asked a Delaware bankruptcy judge to sign off on a settlement it said is the best way to maximize creditor recoveries and wind up its administratively insolvent, five-year-old Chapter 11 case.
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November 22, 2024
UAE Defense Contractor Says Ch. 11 Case 'Fell Apart Quickly'
Abu Dhabi-based defense contractor Paramount Group Ltd. told a Delaware bankruptcy judge on Friday that its efforts to implement a Chapter 11 restructuring "fell apart" in the early days of its case, and that a motion to dismiss the proceedings filed by the U.S. Trustee's Office should be granted.
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November 22, 2024
Judge Grants Dormify Breathing Room In Ch. 11
A Delaware bankruptcy judge on Friday gave Dormify Inc., a retailer that sells college gear and decor for dorms, approval to use its existing cash management system and held off on requiring it to hire a claims agent, having learned that the debtors' counsel are working fast to get a handle on the case themselves.
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November 22, 2024
Pot Dispensary Aims To Escape Lowenstein Sandler's Fee Suit
A New Jersey cannabis dispensary has moved to dismiss a suit from Lowenstein Sandler LLP seeking nearly $800,000 in unpaid fees, telling a state court that the firm did not give the proper notice before suing over the fee dispute.
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November 22, 2024
Judge Garrity Will Leave SDNY Bankruptcy Bench In 2025
The U.S. Bankruptcy Court for the Southern District of New York, one of the nation's busiest bankruptcy venues, has announced that it will be losing one of its longest-serving judges next year.
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November 22, 2024
Latham Adds 4 Restructuring Attys From Weil And Paul Weiss
Latham & Watkins LLP announced Thursday that it has tapped four restructuring practice leaders from two rival BigLaw shops to join its New York office.
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November 22, 2024
Fed Bans Ex-CEO Of Bank Felled By Crypto Scam
The former CEO of Kansas' now-shuttered Heartland Tri-State Bank has been banned by the federal government from being a part of the banking industry after stealing $47.1 million from the bank to give to cryptocurrency scammers, leading his bank to fail.
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November 22, 2024
Avante Health Parent Cleared To Sell For $72.5M In Ch. 11
A Delaware bankruptcy judge on Friday approved the $72.5 million sale of Jordan Health, the corporate parent of medical equipment company Avante Health, to an affiliate of Staple Street Capital after the debtor reached a settlement with unsecured creditors.
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November 22, 2024
1st Circ. Backs Auction For Bankrupt Farmer's Milk Quota
The First Circuit has affirmed a Puerto Rico regulator's ability to order the sale of a dairy farmer's milk quota despite his pending bankruptcy, ruling the action wasn't blocked by a stay blocking actions that can affect a bankruptcy estate.
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November 22, 2024
Hodgson Russ Adds Bankruptcy Talent To Buffalo Team
Hodgson Russ LLP has added an attorney who focuses on complex commercial insolvency matters to its team in Buffalo to work as a partner with its bankruptcy, restructuring and commercial litigation practice.
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November 21, 2024
How COVID Put TGI Fridays On The Path To Bankruptcy
After a tough five years in which TGI Fridays saw two scuttled acquisitions, a shrinking footprint and attempts to offset COVID-19 pandemic losses, the dining chain known for its peppy atmosphere, comfort food and cocktails became one of the latest restaurant groups to hit Chapter 11.
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November 21, 2024
The Onion's Infowars Bid Rests On Whether Highest Is Best
As satirical media company The Onion prepares to defend its offer to buy Alex Jones' right-wing conspiracy show, Infowars, it is relying on the idea that sometimes, the highest offer is not the best one for creditors, experts told Law360.
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November 21, 2024
Prime Core's Ch. 11 Trust Sues To Reclaim $10M Payout
The liquidating trust for Prime Core Technologies Inc., a troubled cryptocurrency technology business, sued in Delaware bankruptcy court Thursday to claw back what it described as a fraudulent transfer of more than $10 million that was paid to a creditor while the company was insolvent.
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November 21, 2024
Canadian Power Services Co. Files For Ch. 15 In Delaware
A British Columbia-based utility services provider filed for Chapter 15 bankruptcy protection Thursday in Delaware seeking recognition of a Canadian receivership placed on the business by a court there, saying it needs to protect the company's American assets.
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November 21, 2024
Mayer Brown Practice Co-Head To Lead Linklaters Team
Following a series of high-level corporate and finance hires this year, Linklaters announced Thursday that it is hiring the former co-leader of Mayer Brown LLP's infrastructure mergers and acquisitions practice as its head of U.S. infrastructure and private capital M&A.
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November 21, 2024
UAE Bank Loses Suit Accusing Family Of Evading £19M Debt
A UAE bank has lost its claim against a businessman's family over an alleged £19 million ($24 million) debt, after a London judge ruled Thursday that the lender failed to prove that the businessman had intentionally moved assets to keep them out of the hands of his creditors.
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November 20, 2024
Bankruptcy Panel Lets Paid Creditor Join Involuntary Ch. 7 Bid
Creditors who were repaid after a bankruptcy is filed are eligible to later join an involuntary insolvency petition, a bankruptcy appellate panel for the Ninth Circuit has found, overturning a lower court's decision and reviving a California man's involuntary Chapter 7.
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November 20, 2024
CFPB Subpoenas Trustee In Debt Relief Firm Bankruptcy Case
The U.S. Consumer Financial Protection Bureau has served a subpoena on the Chapter 11 trustee in charge of collapsed California debt relief law firm Litigation Practice Group's bankruptcy estate, the trustee's law firm said in a recent court filing.
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November 20, 2024
Girardi Pushes For New Trial Over Competency Claims
Counsel for Tom Girardi told a federal judge the disbarred attorney is plainly mentally incompetent and deserves a new trial over charges he defrauded clients of $15 million worth of settlement money.
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November 20, 2024
Meet The Attys Driving Car Financing Co. Vroom's Ch. 11
Vroom Inc., a financing company and former online used car seller, filed for bankruptcy in Texas earlier this month with plans to exchange nearly all of its $290 million in debt for equity under a Chapter 11 road map approved by most creditors. Behind the wheel of its bankruptcy are a team of Porter Hedges LLP attorneys who have worked on a number of recent high-profile cases.
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November 20, 2024
TGI Fridays Gets OK On Bid Process As It Seeks Out Buyers
A Texas bankruptcy judge on Wednesday approved TGI Fridays' procedures for contacting and selecting prospective buyers for its assets after the struggling restaurant chain said it was in discussions with at least 21 potential bidders.
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November 19, 2024
AI School Tech Founder Stole $10M From Investors, DOJ Says
The founder of AllHere Education Inc., a startup venture that sold artificial intelligence-powered chatbots to schools, is charged with fleecing investors out of nearly $10 million by lying about the company's revenue and using some of the money to pay for her wedding and a house, New York federal prosecutors announced Tuesday.
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November 19, 2024
Calif. Hotel Wants To Stay Open Through Another Ch. 11
A California judge on Tuesday asked bankrupt San Jose hotel owner SC SJ Holdings for more information about who owns the cash management account that the debtor wants to use to keep operating during its second run through Chapter 11.
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November 19, 2024
Catching Up With New Bankruptcy Case Action
Spirit Airlines filed for Chapter 11 bankruptcy, citing $3.6 billion in funded debt and unveiling a preapproved restructuring plan to convert $795 million of debt into equity. Dormify, Cosmed Group and PetroQuest Energy also sought bankruptcy protection, largely due to litigation-related challenges. Meanwhile, companies like Swedish debt collector Intrum and heat sealing equipment manufacturer SWC Industries blamed their financial struggles on rising interest rates, inflation, and broader macroeconomic pressures.
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November 19, 2024
Poll Workers Fight Giuliani Attys' Bid To Exit Collection Cases
Two of Rudy Giuliani's attorneys doubled down Tuesday on their attempt to withdraw as counsel in the $148 million defamation case against him, saying in a redacted letter that the two Georgia poll workers hoping to stop their withdrawal are unaware of the facts that led up to the request.
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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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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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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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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Playing Diplomacy Makes Us Better Lawyers
Similar to the practice of law, the rules of Diplomacy — a strategic board game set in pre-World War I Europe — are neither concise nor without ambiguity, and weekly gameplay with our colleagues has revealed the game's practical applications to our work as attorneys, say Jason Osborn and Ben Bevilacqua at Winston & Strawn.
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Mental Health First Aid: A Brief Primer For Attorneys
Amid a growing body of research finding that attorneys face higher rates of mental illness than the general population, firms should consider setting up mental health first aid training programs to help lawyers assess mental health challenges in their colleagues and intervene with compassion, say psychologists Shawn Healy and Tracey Meyers.
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AI May Limit Key Learning Opportunities For Young Attorneys
The thing that’s so powerful about artificial intelligence is also what’s most scary about it — its ability to detect patterns may curtail young attorneys’ chance to practice the lower-level work of managing cases, preventing them from ever honing the pattern recognition skills that undergird creative lawyering, says Sarah Murray at Trialcraft.
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Considering Possible PR Risks Of Certain Legal Tactics
Disney and American Airlines recently abandoned certain litigation tactics in two lawsuits after fierce public backlash, illustrating why corporate counsel should consider the reputational implications of any legal strategy and partner with their communications teams to preempt public relations concerns, says Chris Gidez at G7 Reputation Advisory.
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It's No Longer Enough For Firms To Be Trusted Advisers
Amid fierce competition for business, the transactional “trusted adviser” paradigm from which most firms operate is no longer sufficient — they should instead aim to become trusted partners with their most valuable clients, says Stuart Maister at Strategic Narrative.