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Bankruptcy
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November 28, 2023
Kwok Trustee IDs $2.6B In Cash Moves As Cutoff Date Looms
The Chapter 11 trustee overseeing the estate of Ho Wan Kwok told a bankruptcy judge on Tuesday to brace for more than 100 individual clawback actions that seek to recoup some of the $2.6 billion that flowed through more than 275 accounts connected to the Chinese exile.
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November 28, 2023
NY Parishes Protected While Ch. 11 Mediation Proceeds
A New York bankruptcy judge vowed Tuesday to preserve legal protections for the nondebtor parishes of the bankrupt Diocese of Buffalo, New York, saying sexual abuse claimants would be barred from pursuing legal action against them while mediation continues this week.
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November 28, 2023
Genesis Nears Deals With Parent Co., Creditors
A New York bankruptcy judge on Tuesday gave Genesis Global Holdco permission to send its Chapter 11 plan out for a vote, as the cryptocurrency lending platform reported impending agreements with its parent company and creditors that could render its "no deal" bankruptcy plan a misnomer.
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November 28, 2023
Va. Judge OKs $2M Fees For Foley In LeClairRyan Ch. 11
A Virginia bankruptcy judge has approved just under $2.1 million in fees for Foley & Lardner LLP for its work on defunct law firm LeClairRyan's bankruptcy after Foley agreed to drop its fee dispute with Quinn Emanuel Urquhart & Sullivan LLP, which succeeded it as counsel to the Chapter 7 trustee in the case.
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November 28, 2023
Barretts Minerals Wants To Keep Its Ch. 11 Case In Texas
Barretts Minerals Inc. told a Texas bankruptcy judge that its case should remain in Texas rather than be transferred to Montana because it is more convenient for major witnesses and the company's ties to Texas are significant and legitimate.
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November 28, 2023
UK Trustees File Ch. 15 Petition For Duet Group Founder
Joint trustees in England for the bankruptcy estate of Henry Gabay, a co-founder of the defunct global asset manager Duet Group, filed a Chapter 15 bankruptcy petition on Monday in New York seeking recognition of Gabay's personal insolvency in the United Kingdom.
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November 28, 2023
2nd Circ. Won't Rehear $16.9M Madoff Investor Clawback Case
The Second Circuit on Tuesday said it wouldn't rehear an appeal from an investor who lost a clawback suit and was ordered to pay $16.9 million to the bankruptcy estate of Bernie Madoff's Ponzi investment company.
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November 28, 2023
Orbital OK'd For Ch. 11 Liquidation After Creditors Accept Plan
A Texas bankruptcy judge on Tuesday approved energy services company Orbital Infrastructure Group's bid to liquidate its business in Chapter 11 after unsecured creditors overwhelmingly voted to accept the plan.
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November 28, 2023
Debtor Can't Also Be Creditor In Ch. 13, 7th Circ Rules
The Seventh Circuit ruled that an Illinois-based business owner cannot seek a more than $300,000 state court judgment against his former business partners in their Chapter 13 bankruptcy petition, holding that the owner and his alter ego company cannot become both the creditor and debtor.
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November 28, 2023
Feds Fight Girardi Keese Trustee's Professional Fee Requests
The federal government has objected to the Girardi Keese bankruptcy trustee's bid to pay more than $3 million in fees to herself and several other professionals, telling a Los Angeles bankruptcy judge the trustee has failed for nearly three years to analyze hundreds of millions of dollars worth of unsecured claims against the defunct law firm.
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November 28, 2023
Proterra Gets OK For $210M Battery Biz Sale To Volvo
A Delaware bankruptcy judge Tuesday gave electric-bus maker Proterra Inc. the go-ahead to sell its battery business to Volvo for $210 million after being told the bid was the best offer on the table.
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November 28, 2023
Bannon Ally Says He Won't Flee If Released In $1B Fraud Case
Accused fraudster Ho Wan Kwok, who faces charges over an alleged $1 billion fraud, said his status as a political refugee means he is not a flight risk and that he needs to be let out of a Brooklyn federal prison for the sake of his health.
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November 28, 2023
Law Firm Leaders Cautiously Optimistic Heading Into 2024
Major U.S. law firms are steadfast in their commitment to the pursuit of further growth despite ongoing economic uncertainty. Here’s what the leaders of four Leaderboard firms have to say about how the legal industry is preparing for next year.
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November 28, 2023
The 2023 Law360 Pulse Leaderboard
Check out the Law360 Pulse Leaderboard to see which first-in-class firms made the list this year.
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November 27, 2023
NY Judge OKs $1.65B Voyager Settlement With FTC
A New York federal judge has approved a settlement ordering bankrupt cryptocurrency lender Voyager Digital and its ex-CEO to pay $1.65 billion for misleading investors about the safety of their money prior to the firm's collapse.
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November 27, 2023
Alex Jones Can Earn $650K Salary While Working On Ch. 11
A Texas bankruptcy judge approved a cash collateral order Monday in the Chapter 11 case of bankrupt InfoWars purveyor Free Speech Systems that includes a bump in pay for right-wing conspiracy theorist Alex Jones, saying he didn't have enough evidence to grant the company's $1.5 million salary request as the company and its main moneymaker pursue Chapter 11 plans.
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November 27, 2023
Celsius Creditors Balk At $281K In Bidder's Ch. 11 Fees
The official committee of unsecured creditors in the Chapter 11 case of cryptocurrency lending platform Celsius Network opposed the payment of $281,000 in fees requested by a bidder that lost an auction for the reorganized debtor's assets, saying the code doesn't cover such expenses from a debtor's estate.
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November 27, 2023
FTX Settles BlockFi Dispute Over $744M Crypto Sale
Bankrupt cryptocurrency exchange FTX said it has settled lender BlockFi's objection to its proposed sale of $744 million in cryptocurrency held in Grayscale Investments trust funds, agreeing to explicitly reference liens the lender is asserting on the funds.
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November 27, 2023
Barretts Minerals Pressured To Move Ch. 11 Case To Montana
The Texas bankruptcy case of Barretts Minerals Inc. should be moved to Montana because the company's ties to Texas are tenuous, the Future Claimants Representative for asbestos victims told the court Monday.
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November 27, 2023
Colombia Oil Co. Wants To Challenge McDermott Restructure
A Colombian state-owned oil company says it has a $1 billion arbitration award on the line and needs permission from a New York federal judge to subpoena a hedge fund manager so it can protect its interests while the company that owes the money restructures in the Netherlands and England.
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November 27, 2023
Crypto Game Co. Neon Says Investor Is 'Raiding' Its Coffers
Six founders of blockchain gaming studio Neon Machine Inc. filed a derivative lawsuit on the company's behalf in Delaware's Court of Chancery on Monday, seeking to stop its controlling stockholder and new self-appointed CEO from destroying the company and "raiding or attempting to raid Neon's coffers."
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November 27, 2023
Bankruptcy Court OKs Camden Diocese $4.6M Insurance Loan
A New Jersey bankruptcy court on Monday gave its blessing to a $4.6 million financing agreement that will allow the Roman Catholic Diocese of Camden, New Jersey, to renew insurance policies as it continues its Chapter 11 bankruptcy.
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November 27, 2023
Proterra Pauses Bus Biz Sale After Customer Objections
Electric bus company Proterra told a Delaware bankruptcy court it is delaying a hearing on the sale of its bus-building business in the wake of complaints that its chosen buyer doesn't have the ability to fulfill its customer contracts.
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November 27, 2023
US Trustee Balks At MedStaff Firm's Bass Berry Retention
The Office of the U.S. Trustee objected to the proposed retention of Bass Berry & Sims PLC by debtor American Physician Partners, saying the request to hire the firm as special counsel would call for duties beyond that of special counsel retention.
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November 27, 2023
Former Texas Bankruptcy Judge Claims Suit Wrongly Served
Former Texas bankruptcy Judge David R. Jones wants more time to see whether the federal government will defend him against allegations he hid his romantic relationship with a Jackson Walker LLP attorney while her firm had major cases before him.
Expert Analysis
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Asserting 'Presence-Of-Counsel' Defense In Securities Trials
As illustrated by the fraud trial of FTX founder Sam Bankman-Fried, defense attorneys in securities trials might consider arguing that counsel had some involvement in the conduct at issue — if the more formal advice-of-counsel defense is unavailable and circumstances allow for a privilege waiver, say Joseph Dever and Matthew Elkin at Cozen O'Connor.
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Crypto Has Democratized Trading In Bankruptcy Claims
Following the pandemic, there has been a wave of cryptocurrency bankruptcies and a related increase in access to information, allowing nontraditional bankruptcy investors to purchase claims and democratizing a once closed segment of alternative investing, says Joseph Sarachek at Strategic Liquidity.
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The Case For Post-Bar Clerk Training Programs At Law Firms
In today's competitive legal hiring market, an intentionally designed training program for law school graduates awaiting bar admission can be an effective way of creating a pipeline of qualified candidates, says Brent Daub at Gilson Daub.
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5 Key Tips For Attorneys In The Subchapter V Arena
Subchapter V cases present unique challenges for the nondebtor parties-in-interest, and habits developed by attorneys in typical Chapter 11 cases do not necessarily translate, meaning creditors and their counsel should quickly take a proactive role in their cases to protect their interests, which can be done by attending the 341 meeting, analyzing the plan, and more, says Kelly Singer at Squire Patton.
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Attorneys Have An Ethical Duty To Protect The Judiciary
The tenor of public disagreement and debate has become increasingly hostile against judges, and though the legislative branch is trying to ameliorate this safety gap, lawyers have a moral imperative and professional requirement to stand with judges in defusing attacks against them and their rulings, says Deborah Winokur at Cozen O'Connor.
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Why The Debt Maturity Wall Is Still A Figment, For Now
While the phenomenon of the debt maturity wall — a growing wall of staggered corporate debt maturities — has been considered a looming problem since the aftermath of the 2008 global financial crisis, it’s unlikely to have significant consequences before 2025 due to factors such as quantitative easing and evolved lending practices, says Michael Eisenband at FTI Consulting.
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AI Can Help Lawyers Overcome The Programming Barrier
Legal professionals without programming expertise can use generative artificial intelligence to harness the power of automation and other technology solutions to streamline their work, without the steep learning curve traditionally associated with coding, says George Zalepa at Greenberg Traurig.
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10 Essential Bankruptcy Litigation Tips For In-House Counsel
Bankruptcy litigation is a complex and multifaceted area of law that poses unique challenges for in-house counsel, and there are several tools at legal professionals' disposal, like appraisals and understanding jurisdictions, to stay well-informed and protect their companies' interests, says Alison Ashmore at Dykema.
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Preparing Law Students For A New, AI-Assisted Legal World
As artificial intelligence rapidly transforms the legal landscape, law schools must integrate technology and curricula that address AI’s innate challenges — from ethics to data security — to help students stay ahead of the curve, say Daniel Garrie at Law & Forensics, Ryan Abbott at JAMS and Karen Silverman at Cantellus Group.
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Sellers Seeking Best Deal Should Focus On Terms And Price
Rising interest rates and a decline in the automotive mergers and acquisitions market mean that a failed deal carries greater stakes, and sellers therefore should pursue not only the optimum price but also the optimum terms to safeguard their agreement, says Joseph Aboyoun at Fox Rothschild.
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General Counsel Need Data Literacy To Keep Up With AI
With the rise of accessible and powerful generative artificial intelligence solutions, it is imperative for general counsel to understand the use and application of data for myriad important activities, from evaluating the e-discovery process to monitoring compliance analytics and more, says Colin Levy at Malbek.
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Rite Aid's Reasons For Ch. 11 Go Beyond Opioid Suits
Despite opioid-related lawsuits being the perceived reason that pushed Rite Aid into bankruptcy, the company's recent Chapter 11 filing reveals its tenuous position in the pharmaceutical retail market, and only time will tell whether bankruptcy will right-size the company, says Daniel Gielchinsky at DGIM Law.
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Navigating Discovery Of Generative AI Information
As generative artificial intelligence tools become increasingly ubiquitous, companies must make sure to preserve generative AI data when there is reasonable expectation of litigation, and to include transcripts in litigation hold notices, as they may be relevant to discovery requests, say Nick Peterson and Corey Hauser at Wiley.
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Finding Focus: Strategies For Attorneys With ADHD
Given the prevalence of ADHD among attorneys, it is imperative that the legal community gain a better understanding of how ADHD affects well-being, and that resources and strategies exist for attorneys with this disability to manage their symptoms and achieve success, say Casey Dixon at Dixon Life Coaching and Krista Larson at Stinson.
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A Look At DOJ's New Nationwide Investment Fraud Approach
Investment fraud charges are increasingly being brought in unlikely venues across the country, and the rationale behind the U.S. Department of Justice's approach could well be the heightened legal standards in connection with prosecuting investment fraud, says Jonathan Porter at Husch Blackwell.