In the realm of bankruptcy law, the Subchapter V of Chapter 11 of the Bankruptcy Code, having celebrated its third anniversary earlier this year, lightens the burden for struggling small business debtors. It offers a more efficient and cost-friendly Chapter 11 reorganization route with an added attraction of a newly introduced position – the Subchapter…
Any legal professional who has advised a client in litigation proceedings understands that winning a court case doesn’t necessarily correlate to a tangible cash recovery. Collection of judgment often presents its own unique challenges, even after all avenues of appeal have been exhausted. The enthusiasm a client harbors in pursuing what they view as a…
Trade creditors and landlords working with Rite Aid, the third-largest U.S. drugstore chain, are bracing for a potential Chapter 11 bankruptcy filing. Both NBC News and The Wall Street Journal have reported on the impending decision, which would significantly impact Rite Aid’s nationwide presence. As it stands, the filing could result in the shuttering of…
In a recent development, Democrats have called on Clarence Thomas to recuse himself from a case being handled by Koch attorneys, highlighting their belief in the Justice’s possible bias. A closer inspection of the situation can be found here. Separately, adjustments are taking place with regard to trial practice methods due to the need to…
The economic aftermath of the 2007-2008 financial crisis gave rise to cryptocurrency, a new form of digital asset that significantly revolutionized the financial landscape. Almost one and a half decades since the publication of Satoshi Nakamoto’s Bitcoin whitepaper, cryptocurrencies, despite being just data bytes on a blockchain backed by no physical entity or institution, have…
A recent development in the ongoing case of In re The Hacienda Company, LLC suggests bankruptcy courts may be an available means for non-operating cannabis companies to liquidate assets. This legal issue has its roots within the United States Bankruptcy Court for the Central District of California, presided over by Judge Neil Bason. The focus…
A former recruiter for Major, Lindsey & Africa (MLA), Sharon Mahn, who was previously dismissed in 2009 on allegations of stealing trade secrets, intends to bring charges of sexual harassment, assault, and abuse of process against her ex-employer in court. This information comes to light from recent bankruptcy filings tied to Mahn’s financial estate. A…
In considerable relief to the attorneys and staff at Stroock & Stroock & Lavan, the recent news of the firm’s impending merger with Pillsbury Winthrop Shaw Pittman indicates that dissolution or bankruptcy proceedings are unlikely for the organization. This information comes from a former Stroock employee, contributing their hopeful perspective to a legal community keenly…
While the phrase “Highest and Best” deal is a common term in the bankruptcy field, it’s often misunderstood. In the context of a bankruptcy auction of assets such as a business or real property, judges, trustees and creditors understand that the better deal isn’t necessarily the one that offers the highest price. Oftentimes, the ‘best’…
In a recent development according to JD Supra, Sunac, a leading Chinese property developer, has followed in the footsteps of Evergrande by filing for bankruptcy protection in the U.S. This marks it out as the second major Chinese developer to take such a step in a matter of weeks. The circumstances surrounding Sunac’s filing are…
On September 19, the Consumer Financial Protection Bureau (CFPB) published a recent decision and order denying the petition of one of the largest private student loan servicers in the United States. The petition was aiming to set aside the Bureau’s civil investigative demand (CID) as part of their investigation into potential violations of the Consumer…
In an unfolding story, Justice Clarence Thomas has once again been thrust into the spotlight. The latest accusation involves the allegation that he accepted money from donors who hold interests before the Court. This is not the first time such conflicts of interest have been leveled against the justice. To delve deeper into these allegations…
In recent years, Special Purpose Acquisition Companies (SPACs) have become an increasingly popular vehicle for bringing private companies public. However, with this rise in popularity, there has been a corresponding surge in SPAC-related bankruptcies. According to a recent poll conducted among the SPAC Notebook audience, SPAC-related bankruptcies topped the list as the most pressing concern…
In the wake of allegations concerning fraudulent activities at an offshore company, the use of Letters of Credit (LOCs) in relation to securing reinsurance obligations under the microscope. The questioned offshore company, which now is dealing with bankruptcy, had specialized in harmonizing reinsurance capacity with insurance cedents in the capital market. This was achieved through…
Understanding when an alter ego suit alleging a debtor and non-debtor are essentially the same ventures into violating the discharge injunction can sometimes be tricky. This question has recently been addressed by The Ninth Circuit Bankruptcy Appellate Panel. They maintain that a discharge injunction does not bar an alter ego claim against a non-debtor, where…
Asset repledging, colloquially known as “rehypothecation”, embodies the maxim of ‘borrowing from Peter to pay Paul’ – a practice that savvy legal professionals are increasingly scrutinizing in an era of financial uncertainty. Often employed within the realms of loan, swap, and brokerage transactions, it’s an operational mainstay that is not without its consequences. Pledged assets,…
The insured v. insured exclusion clause is a prominent feature in Directors and Officers (D&O) insurance policies. Recently, this exclusion has been put to the test in the United States Bankruptcy Court for the Northern District of Illinois. The court evaluated its application in the case concerning a bankrupt insured condominium association’s former officers and…
The United States legal landscape, specifically the scope of Bankruptcy Court jurisdiction, continues to be molded through numerous impactful decisions over the years, with several made by the U.S Supreme Court. Since their creation by the Bankruptcy Reform Act of 1978, Bankruptcy Courts have endured significant legal examinations and modifications. In the early days after…
Amid financial difficulties, Foxo Technologies, a $500 million AI startup that focuses on underwriting life insurance through artificial intelligence and genetic innovations, has discharged its general counsel, Michael Will. As a consequence of the firm’s current financial constraints and imperative personnel reductions, Michael Will’s employment was terminated only a year after the company went public….
In the evolving world of Cannabis Mergers and Acquisitions (M&A), industry professionals face unique challenges. One such challenge lies in handling valuation disputes and post-closing adjustments, a commonly occurring issue during cannabis M&A. A CLE-accredited live webinar hosted by the International Cannabis Bar Association is set to address these issues on October 24th, from 12:00…
Bankruptcy statistics in 2023 offer significant insights that could aid legal professionals in realigning their practice focus for the remaining part of the year. According to a detailed article on JD Supra, it has been an eventful year in bankruptcy so far. Filings have increased in several chapters, offering an opportunity to assess the commercial…
In a recent judgment that is sending noteworthy ripples through the legal community, the Second Circuit has affirmed that bankruptcy courts possess the inherent authority to impose non-nominal civil contempt sanctions. This decision comes as a response to an attorney’s failure to abide by the bankruptcy court’s discovery orders. The ramifications of the ruling are…
In the high-stakes game of bankruptcy, it appears that Diamond Sports Group (DSG) has not been successfully swinging for the fences. This observation arises from a U.S. bankruptcy case, which scrutinizes whether a debtor can pay something less than the full contract rate while still requiring the counterparty to fully perform its obligations pending assumption…
Johnson & Johnson’s VP of Litigation recently testified before the U.S. Senate Judiciary Committee, emphasizing on the so-called ‘Texas Two-Step’ as the optimal resolution approach to claims for talc-related payouts. The controversial strategy involves a complicated combination of legal and corporate maneuvers, which have been criticized for potential misuse of bankruptcy protections. The ‘Texas Two-Step’,…
In a significant development in the financial world, cryptocurrency exchange FTX Trading Ltd. and quantitative cryptocurrency trading firm Alameda Research LLC have instigated legal action against the parents of their joint-founder, Sam Bankman-Fried. The lawsuit alleges that the couple fraudulently gained multiple million dollars worth of assets from their son. This litigation eventuates as part…