The recent fee application by Genesis Credit Partners LLC, serving as financial advisers to an unsecured creditors’ committee in the Terraform Labs Pte. Ltd. bankruptcy case, has sparked a significant pushback from both the United States Trustee and the plan administrator. The firm is seeking a total of $4 million in fees for its services…
The legal landscape sees a pivotal moment as U.S. Bankruptcy Judge Christopher Lopez presides over the trial concerning Johnson & Johnson’s third attempt to settle its talcum powder bankruptcy. This Texas trial, set to continue for two weeks, aims to determine the legitimacy of the Chapter 11 bankruptcy filing by Johnson & Johnson’s subsidiary, Red…
A Houston-based plaintiffs attorney has initiated a personal Chapter 11 bankruptcy process, citing over $202 million in liabilities related to litigation funding. This financial predicament has been officially documented in a petition filed in the Southern District of Texas. The attorney’s move comes amidst concerns regarding the management and financial obligations tied to large-scale legal…
The U.S. Department of Justice, through its bankruptcy watchdog, the U.S. Trustee, has raised an objection to Johnson & Johnson’s subsidiary, Red River Talc LLC, hiring Jones Day as its bankruptcy counsel. The objection, filed in the U.S. Bankruptcy Court for the Southern District of Texas, centers on an alleged conflict of interest involving Jones…
“`html In a recent development in the Kidde-Fenwal Inc. Chapter 11 bankruptcy proceedings, Sullivan & Cromwell LLP has found itself at odds with the Attorney General of California over interim fees. The legal firm, representing the debtor chemical company, has been accused by the state of over-billing. In response, Sullivan & Cromwell has alleged that…
The luxury hotel operator SC SJ Holdings LLC, known for managing the Fairmont San Jose, has entered Chapter 11 bankruptcy for the second time. This follows an unsuccessful attempt to litigate against its legal advisors, whom it blamed for its previous bankruptcy filed in 2021. SC SJ Holdings disclosed the filing in the US Bankruptcy…
The issue of non-consensual third-party releases in Chapter 11 bankruptcy cases is poised to take the spotlight, as the Third Circuit prepares to deliberate on opt-out releases. A contentious matter, these releases have drawn criticism and legal challenges, particularly concerning their inclusion in settlements involving major corporate bankruptcies. In a prominent case involving the Boy…
Johnson & Johnson’s third attempt to address the extensive number of talcum powder lawsuits through filing for Chapter 11 bankruptcy will remain in Texas. The decision was made by a bankruptcy judge, according to a report by Texas Lawyer. This litigation effort is part of a broader strategy by the company to manage and resolve…
In the current post-pandemic landscape, automotive suppliers are increasingly seeking alternatives to traditional Chapter 11 bankruptcy filings to navigate financial distress and operational restructuring. This strategic shift is driven by a host of challenges facing the industry, such as persistent supply chain disruptions, raw material shortages, and the financial demands of transitioning to electrification. One…
The U.S. Trustee’s Office is urging a New York bankruptcy judge to recover fees and expenses from Reed Smith LLP, alleging that the firm failed to disclose its connections with directors of Eletson Holdings while representing the shipping company in its Chapter 11 bankruptcy. This development raises significant compliance and ethical considerations for legal practitioners…
The Chapter 11 bankruptcy filing of the former chief financial officer of McElroy Deutsch Mulvaney & Carpenter LLP has been dismissed. The New Jersey bankruptcy judge ruled that the filing was made in “bad faith” in an attempt to delay ongoing state litigation. The ex-CFO, currently incarcerated for embezzling over $1 million from the firm,…
Discount retailer Big Lots Inc. has filed for Chapter 11 bankruptcy protection and has agreed to a sale to Nexus Capital. The company plans to sell its assets and ongoing business in a court-supervised process, which highlights the financial distress and strategic shift for the retailer. According to a report by Bloomberg Law, the filing…
In a substantial uptick, commercial Chapter 11 bankruptcy filings saw a 21% increase in August compared to the previous month, according to recent data from Epiq. Projections indicate that corporate bankruptcy filings might surpass the 6,500 mark for 2023, a considerable rise from the fewer than 4,000 seen in both 2022 and 2021. This surge…
The currently-incarcerated former chief financial officer for McElroy Deutsch Mulvaney & Carpenter LLP has denied allegations that his Chapter 11 filing was a bad faith maneuver designed to stall ongoing civil litigation. Instead, he claims the bankruptcy will facilitate the liquidation of property in a way that benefits creditors. For more details, please refer to…
A hearing in a Chapter 11 bankruptcy case turned contentious on Thursday when a California bankruptcy judge criticized an attorney for her “obnoxious” conduct in court. The lawyer was advocating against a proposed liquidation plan for a defunct law firm, arguing that the plan could disproportionately benefit the professionals managing the case while offering minimal…
Earlier this week, a new lawsuit filed against Fenwick & West posits that the Biglaw firm’s role as attorney for a cryptocurrency client induced the plaintiff to invest. The plaintiff, Seven Peaks Ventures, invested in Prime Core Technologies, the parent company of crypto company Prime Trust, purchasing 700,000 shares in the Series A funding round,…
Rite Aid Corp. has once again shifted its legal leadership as it moves closer to exiting bankruptcy. Thomas Sabatino Jr., who was brought on roughly a year ago to steer the company through its restructuring process, has departed. In an August 19th securities filing, the company revealed that Christin Bassett has been appointed as the…
McElroy, Deutsch, Mulvaney & Carpenter has petitioned a U.S. Bankruptcy Court judge to dismiss a Chapter 11 bankruptcy filing submitted by the firm’s former chief financial officer, John Dunlea. Dunlea, who has pleaded guilty to embezzling over $1.5 million from the firm, has been sentenced to five years in prison. The firm contends that Dunlea’s…
A growing wave of financial tinkering by distressed companies to raise new money is leaving a lasting mark on corporate restructuring practices. Lawyers are now engineering and navigating evolving forms of liability management transactions that often pit creditors against one another in a battle for collateral and repayment priority. Since the Covid-19 pandemic, these controversies…
Rudolph Giuliani has entered into an agreement to pay $100,000 in cash upfront, along with proceeds from the future sales of his multi-million dollar properties, in order to settle administrative bankruptcy fees and officially conclude his Chapter 11 bankruptcy case. This arrangement follows an agreement reached with his largest creditors, which outlines the terms for…
In a recent development, U.S. Bankruptcy Judge Sean Lane indicated he might “reconsider” the dismissal of Rudy Giuliani’s Chapter 11 proceeding. Despite having initially ordered the dismissal earlier this month, Judge Lane has not been able to officially enter a judgment due to Giuliani’s claims of being unable to pay the administrative fees associated with…
In a notable decision, a federal bankruptcy court in West Palm Beach has dismissed the Gateway Pundits’ Chapter 11 bankruptcy case. U.S. Bankruptcy Judge Mindy Mora of the Southern District of Florida found that the publication failed to demonstrate a good faith intent in filing and pursuing the case. This ruling highlights the essential requirement…
Rudolph Giuliani faces a potential evidentiary hearing scrutinizing his financial dealings after his failure to establish satisfactory terms to dismiss his personal bankruptcy case. Giuliani, who owes approximately $400,000 in fees related to his Chapter 11 case, must comply with administrative expenses before Judge Sean Lane of the US Bankruptcy Court for the Southern District…
Rudy Giuliani’s financial and legal turmoil continues to unfold as his bankruptcy case takes a dizzying turn. Just days after a jury awarded $148 million to Ruby Freeman and Shaye Moss—Atlanta poll workers he defamed—Giuliani filed for Chapter 11 bankruptcy in December. His move aimed at staying the collection of the judgment pending appeal without…
The United States Bankruptcy Court on Friday dismissed the Chapter 11 bankruptcy case of former New York City mayor and Trump lawyer Rudolph Giuliani, citing his ongoing failure to comply with financial disclosure obligations, according to JURIST. Giuliani filed for Chapter 11 bankruptcy in December 2023, citing financial strain from a $148 million defamation judgment….