A plant nursery, enmeshed in a bankruptcy case, has urged the U.S. Supreme Court to consider their argument concerning a challenged refund awarded to them. The nursery alleges that they had been overcharged by approximately $375,000 during the process; funds used to sustain the U.S. Trustee Program. The Office of the U.S. Trustee has raised…
Legal professionals have been closely following the developments following the U.S. Supreme Court’s decision in Siegel v. Fitzgerald, 142 S. Ct. 1770 (2022). The court ruled that increased U.S. Trustee quarterly fees for large Chapter 11 debtors between 2018 and 2020 under the Bankruptcy Judgeship Act of 2017 (the “2017 Act”) were unconstitutional. The Court…
In an interesting development in the US law scene, the New York Bankruptcy Court has made a decision that could considerably impact those with substantial funded debt. The court has ruled that in the reinstatement of accelerated debt, the debtor must pay the default interest rate. Measures such as this could potentially create new challenges…
The strike by the United Auto Workers against the Detroit 3 automakers presents an unparalleled challenge for the over 5,600 automotive suppliers nationwide. Many of these companies are still reestablishing their footing after the upheaval caused by COVID-19 production slowdowns. Ann Marie Uetz, a partner at Foley & Lardner, stated, “The automotive supply chain is…
In a complex bankruptcy case involving the defunct Litigation Practice Group (LPG), a recently appointed attorney argued that her clients, former LPG employees, are unjustly targeted by the bankruptcy trustee. In her statement, the attorney described her clients as “collateral damage” who should be considered victims rather than defendants. This assertion, however, was met with…
In an ongoing dispute over content regulation on social media platforms, the Biden administration last Thursday made an appeal to the Supreme Court. The administration is seeking a temporary block of a lower court’s order which, they claim, limits its ability to converse with social media companies regarding their moderation policies. The appeal was first…
In recent legal news, some Columbia Law grads seem to have trouble grasping the concept of email chains. The story revolves around generational gaps in the utilization of digital communication tools — a seemingly never-ending cycle of reply-alls that turned into an email pandemonium. This story demonstrates the importance of effective communication strategies within law…
In a significant development in the legal profession, John Roesser, a former partner at multiple Biglaw firms, recently pleaded guilty to the charge of making false statements and submitting faked records during his bankruptcy proceedings. Roesser was a partner at five major firms between 2010 and 2018, making stops at Seyfarth Shaw, Winston & Strawn,…
The bankruptcy case of Celsius Network LLC is generating significant attention among legal circles, especially with the commencement of creditor voting on the proposed Plan of Reorganization by the Debtors (“the Plan”). This voting period marks a crucial juncture in the trajectory of the case, becoming an important milestone in the case’s proceedings, as discussed…
As legal professionals, we frequently engage in the practice of reflection, often contemplating choices made in our early careers. It can be a fruitful process, enabling us to identify areas of improvement and perhaps even guiding the advice we give to those setting out on their legal journey. A partner of the full-services New York…
In a key decision made by the U.S. Judicial Conference on Tuesday, audio broadcasting of certain proceedings will be allowed to continue, even post the COVID-19 pandemic. This provision will extend to hearings pertaining to civil and bankruptcy matters and will not include streams for nontrial proceedings involving witness testimonies. The policy will come into…
As the world continues to adjust to a post-pandemic reality, federal courts in the United States have made the decision to reduce the accessibility to live audio for certain proceedings in civil and bankruptcy cases compared to what was available during court closures. Announced earlier this week, this new approach will still permit federal judges…
As we continue on our series discussing alternatives to bankruptcy for cannabis companies, it’s important to note the challenges that these entities face due to current regulations. Given that bankruptcy in the U.S. is an exclusively federal procedure, cannabis companies are left at a disadvantage due to the plant’s illegal status under federal law, as…
In an ongoing story on one of the latest bankruptcy law issues, the US Supreme Court will address the contentious subject of non-consensual third-party releases in bankruptcy cases, according to the information from JD Supra. Earlier this year, the Southern District of New York, referred to as the District Court, nullified the confirmation given by…
The city of Rockford, Illinois, is exerting pressure on two prominent law firms, Latham & Watkins and Quinn Emanuel Urquhart & Sullivan. Both firms represent the pharmacy benefits manager, Express Scripts, and drug manufacturer, Mallinckrodt PLC. Their representation is in the context of antitrust litigation and a linked bankruptcy proceeding. The city of Rockford is…
For legal professionals navigating the convoluted landscape of receivership and awards cases, one question that often arises is whether a receiver is entitled to interest on the receiver’s awarded, but unpaid, fees. This issue recently came under scrutiny in a case overseen by the law firm Ervin Cohen & Jessup LLP. Here’s a glimpse into…
News has emerged about Ohio-based Lordstown Motors’ proposed course of action after successfully filing their Chapter 11 plan. The bankruptcy issue brings forth an array of strategic maneuvers and legal implications that may ripple through the industry. The company, prominently known for its ventures in the electric vehicle sector, has proposed a potentially contentious approach:…
Financial stress can manifest in any corporation regardless of its size or industry, resulting from either internal or external factors. The key to mitigating severe financial distress—insolvency or an abrupt bankruptcy—is to be proactive and address financial challenges early on, during their gradual progression. As stated in a report by Ankura, in Ernest Hemingway’s words,…
In a recent development, The Department of Labor (DOL) has lodged a rule proposal aiming to simplify the process of winding down abandoned retirement plans by employers. The impending regulation is also crafted to provide beneficiaries with easier access to their benefits. Employers abandoned retirement plans, also known as orphan plans, are often plagued with…
The rescheduling of cannabis from a Schedule I Controlled Substance to a Schedule III Controlled Substance is unlikely to give cannabis businesses access to federal bankruptcy protection, despite providing other potential advantages such as the ability to claim tax deductions. This is according to the attorneys of Foley Hoag’s Cannabis practice. These potential benefits would…
In a significant development, biochemical company Amyris Inc. received judicial approval to reimburse attorney fees, up to an amount of $750,000, for an ad hoc group of creditors. This group holds close to $450 million of Amyris’ unsecured debt. The approval came from a Delaware bankruptcy judge on Thursday. Not much more information is currently…
On August 30, the bankruptcy court for the District of Delaware has confirmed Boxed Inc.’s second amended plan of liquidation accepted on a completely consensual basis, in an attempt to absolve its financial woes. Notably, this plan originated from a global agreement between the debtors, the official committee of unsecured creditors, and the prepetition first…
Interest rates in bankruptcy cases continue to be an interesting topic of discussion, particularly when planning for potential outcomes under Chapter 11. A recent ruling by the Eighth Circuit has sparked fresh debates among legal professionals. The court was faced with the challenge of determining the correct method to calculate the appropriate interest rate for…
In a case before the California Supreme Court, PG&E Corp faces potential damages exceeding $2.5 billion for alleged negligent power shutoffs. Hailing from St. Helena, California, Anthony Gantner brought forth the negligence class action as an adversary proceeding during PG&E’s bankruptcy. This case presents the California Supreme Court with significant questions regarding the appropriateness and…
In the ongoing FTX Chapter 11 case, the court-appointed fee examiner has put forth a recommendation that urges the presiding Delaware bankruptcy judge to provide interim endorsement for professional fees and costs surpassing $111 million. This sum corresponds to the total expenditures incurred in the second trimester of the proceedings. This substantial amount underscores the…