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Thursday, Aug 28, 2008
With $3.2 billion of debt threatening to force Jefferson County, Ala., into Chapter 9, the county's governing body has allowed Gov. Bob Riley, Bradley Arant Rose & White LLP and an attorney for the county to assume control of talks with the county's creditors, according to a source close to the Jefferson County Commission.
Wednesday, Aug 27, 2008
A bankruptcy judge has approved a $465 million debtor-in-possession financing package for department store chain Mervyn's LLC, ruling that the financing is necessary for the company to continue operating as it restructures.
Wednesday, Aug 27, 2008
Dot Hill Systems Corp., a developer of computer storage hardware and software, is negotiating to buy intellectual property assets from Ciprico Inc., the storage software provider that filed for Chapter 11 bankruptcy protection in July.
Wednesday, Aug 27, 2008
In a bid to regain control of its subsidiary Asarco LLC, Grupo Mexico SAB has filed a rival bankruptcy reorganization plan for the copper mining company as well as an objection to Asarco's distribution plans for environmental and asbestos claims.
Wednesday, Aug 27, 2008
A federal judge in New York on Tuesday dismissed a lawsuit against bankrupt IndyMac Bancorp Inc. and the Federal Deposit Insurance Corp., claiming IndyMac Bank hired appraisers that intentionally inflated home values so the bank could charge higher interest rates on home equity loans.
Wednesday, Aug 27, 2008
Vertis Communications and American Color Graphics Inc. are on the verge of completing their merger after the federal judge overseeing the prepackaged bankruptcy cases approved the companies’ disclosure statements and reorganization plans.
Wednesday, Aug 27, 2008
As new associates try to make sense of their law firm's vaguely worded dress policy – if they are handed a policy at all – they should keep two simple concepts in mind: Get noticed for your work, not your dress, and dress for the job you want, not the one you have.
Wednesday, Aug 27, 2008
Samsung Electronics Co. Ltd. has agreed to dismiss its appeal of the amended settlement in the Silicon Graphics Inc. bankruptcy. The appeal concerned claims in dynamic random access memory litigation in California.
Wednesday, Aug 27, 2008
Still in its infancy, the legal funding industry has been gaining more acceptance, but doubts persist over whether the practice of advancing plaintiffs and businesses part of an expected settlement could lead to exploitation and fraud.
Wednesday, Aug 27, 2008
The U.S. trustee in the Levitz Furniture Inc. bankruptcy case on Tuesday filed a memorandum in support of her motion to convert the case from Chapter 11 reorganization to Chapter 7 liquidation.
Wednesday, Aug 27, 2008
The American Bar Association has postponed voting on Recommendation 114, the controversial measure that would ease conflict-of-interest rules for attorneys moving between private firms.
Tuesday, Aug 26, 2008
A federal bankruptcy judge has approved an amended disclosure statement filed by Goody's Family Clothing Inc. in its Chapter 11 bankruptcy proceedings, moving the apparel retail chain one step closer to reorganization.
Tuesday, Aug 26, 2008
Indiana Attorney General Steve Carter has filed a lawsuit against Countrywide Financial Corp. for allegedly misleading homeowners into purchasing risky mortgages they could not afford, making Indiana the sixth state since June to sue the country's largest mortgage lender.
Tuesday, Aug 26, 2008
A bankruptcy court judge has approved a $16.5 million settlement between auto parts maker Delphi Corp. and Furukawa Electric Co. Ltd., an electronic component manufacturer.
Tuesday, Aug 26, 2008
Orrick Herrington & Sutcliffe LLP has added Raniero D'Aversa Jr., formerly of Mayer Brown LLP, as a partner and head of its New York creditors' rights and bankruptcy practice in an effort to expand its global practice.
Tuesday, Aug 26, 2008
Fox Rothschild LLP is facing the loss of its expert chief marketing officer as Jim Staples prepares to depart for the same position at Cozen O'Connor LLP the week after Labor Day.
Tuesday, Aug 26, 2008
Automotive supply company Cadence Innovation LLC filed for Chapter 11 on Tuesday, citing the economy and rising fuel prices for its financial troubles.
Monday, Aug 25, 2008
The judge presiding over the bankruptcy proceedings for clothing retailer Steve & Barry's LLC has signed off on the company's plan to sell its assets to an affiliate of investment firm Bay Harbour Management for $168 million.
Monday, Aug 25, 2008
Bankrupt U.S. Energy Systems Inc. and U.S. Energy Overseas Investments have filed a joint liquidating plan of reorganization, one month after winning an extension due to dramatic increases in the price of electricity in the United Kingdom.
Monday, Aug 25, 2008
Claiming law firm Greenberg Traurig LLC has “jumped to the other side of the negotiating table,” two creditors in the Mortgages Ltd. bankruptcy said Friday a judge should revisit a proposed order allowing the law firm to act as special counsel to the bankrupt mortgage lender.
Cooper Commons demonstrates that courts will strictly enforce any carve-out/waiver agreement negotiated at arm's length, even if it means that administrative claims cannot be paid in full and confirmation of a Chapter 11 plan for the debtor is impossible, say Nathan Lebioda and Mark G. Douglas of Jones Day.
Investors in the distressed residential mortgage loan space should closely analyze the legal and practical concerns with investing in this area in order to navigate the challenges while seeking to maximize the rewards, says Salvatore O. Franco of Thacher Proffitt & Wood LLP.
The affirmance of the holdings of the bankruptcy court in the Bear Stearns case in the Southern District of New York sends a strong signal to those engaged in transactions involving offshore funds: it may be impossible for liquidators of such funds to obtain U.S. recognition of local insolvency proceedings, says Richard Graham of White & Case LLP.
The Wooley v. Faulkner decision should constitute good news to directors or controlling shareholders of a financially troubled company who are willing to lend money to the company only on terms providing reasonable assurance of repayment, says Philip John Nichols of White & Case LLP.
In the fast-paced world of mortgage-backed securitization, recent court decisions such as In re Nosek appear to put the legal community on notice that the status quo in the world of mortgage foreclosure may no longer be enough to shield those representing mortgage-holders from liability, say David Walker, Jeffrey A. Leonard and John Carroll of Cozen O'Connor LLP.
The Supreme Court in Piccadilly has eliminated an important advantage of section 363 sales previously available in several jurisdictions, say Alan W. Kornberg, Stephen J. Shimshak and Margaret A. Phillips of Paul Weiss Rifkind Wharton & Garrison LLP.
The Supreme Court's holding in Piccadilly Cafeterias affects both secured and unsecured creditors, injects a timing issue into the decision-making process underlying sales, and may alter the course of future Chapter 11 cases, says Mark A. Fink of Sonnenschein, Nath & Rosenthal LLP.
As more and more companies default on their obligations, creditors of such companies should be aware of their rights and remedies in the face of continued default; and one of the most powerful tools in their collective arsenal may be the court-appointed receiver, says Monique Jewett-Brewster of Buchalter Nemer.