Bankruptcy Law

Pension Funds, Tort Plaintiffs Ask Supreme Court to Delay Chrysler Sale

A group of Indiana pension funds and consumer protection groups have asked the U.S. Supreme Court to grant a stay that would block the sale of Chrysler assets to Fiat. The request submitted to Justice Ruth Bader Ginsburg, who oversees the New York City-based 2nd U.S. Circuit Court of Appeals,…

Jun 8, 2009 11:24 AM CDT

Greenberg Traurig Faces Malpractice Questions in Heller Representation

Greenberg Traurig is reportedly facing malpractice questions over its representation of Heller Ehrman before that firm filed for bankrputcy. At issue is Greenberg’s apparent failure to discover that Heller’s biggest lender had mistakenly terminated its security interest in the law firm before it dissolved, the Recorder reports. Michael St. James,…

Jun 3, 2009 12:07 PM CDT

‘All Business’ GM Bankruptcy Judge Snaps at Joking Lawyer

The “all business” bankruptcy judge overseeing the reorganization of General Motors had little patience for a lawyer who offered a joke during a hearing yesterday. The testy moment came as Judge Robert Gerber of Manhattan was hearing a motion to approve certain GM lawyer expenses that included a restriction on…

Jun 2, 2009 1:09 PM CDT

GM Files for Bankruptcy; Judge Approves Chrysler Sale

General Motors filed for bankruptcy this morning under a restructuring plan that calls for the United States to own 60 percent of GM stock. The filing says GM has $82.3 billion in assets and $172.8 billion in debts, the New York Times reports. In a briefing Sunday night, administration officials…

Jun 1, 2009 12:37 PM CDT

Seven Bankruptcy Lawyers Jump from Kirkland to Jones Day

Seven bankruptcy lawyers from Kirkland & Ellis, six of them in its Los Angeles office, are jumping to Jones Day. The Daily Journal (sub. req.) says the move leaves Kirkland without any California-based bankruptcy lawyers, while the American Lawyer says three restructuring lawyers remain in the firm’s Los Angeles office.…

May 28, 2009 2:18 PM CDT

Lawyers Joke that GM Bankruptcy Will Deplete Experienced Bar

A General Motors bankruptcy would require so many restructuring specialists that lawyers joke there wouldn’t be enough to go around. GM had nearly $150 billion in revenue last year; its restructuring would be more complicated and possibly larger than that of any American corporation, including Enron, the New York Times…

May 26, 2009 1:22 PM CDT

Why McDermott Settlement in $200M Malpractice Case Is Secret

A bankruptcy trustee is citing competitive disadvantage in a motion to seal a malpractice settlement in a $200 million suit filed against McDermott, Will & Emery. A Daily Journal reporter unearthed a docket entry reporting the settlement while researching a story last month about bankruptcy trustees who see law firms…

May 22, 2009 12:21 PM CDT

Skadden Executive Partner: New Defection Shows Firm Is Talent Incubator

The executive partner at Skadden, Arps, Slate, Meagher & Flom is putting a positive spin on the firm’s latest partner loss. D.J. “Jan” Baker is leaping to Latham & Watkins, where he will lead the firm’s restructuring practice, according to the New York Times DealBook blog. Baker recently led the…

May 20, 2009 1:52 PM CDT

Chrysler Bankruptcy Plan Would Stymie Lawsuits for Auto Defects

Chrysler’s bankruptcy plan would honor vehicle warranties but apparently exempts its successor corporation from liability for lawsuits over defects in autos already sold. The bankruptcy plan specifically accepts the warranty obligation, but says nothing about lawsuits, the New York Times reports. A coalition of consumer groups is asking the bankruptcy…

May 20, 2009 11:43 AM CDT

Suit: 950% Profit Suggests Fla. Lawyer Was Rewarded for Madoff Investments

Madoff bankruptcy trustee Irving Picard has filed a suit seeking $5.1 billion from a Florida lawyer who ran trust funds and partnerships that invested with Bernard Madoff as well as a charitable fund considered a victim of the convicted money manager. The suit was one of two actions filed yesterday…

May 13, 2009 12:37 PM CDT

Study Predicts 5 Percent Growth in Legal Spending by Fortune 1000

A decline in legal spending by large companies is about to be reversed, according to a new survey of Fortune 1000 companies. The study by market research firm BTI Consulting says large companies will increase legal spending on outside counsel nearly 5 percent over the next six months, according to…

May 7, 2009 1:55 PM CDT

Study Claims Bankruptcy Lawyers Are Billing Illegally

A new study claims bankruptcy lawyers are billing their clients illegally by failing to get court approval before collecting fees. The study found that the lawyers bill bankrupt companies for about 80 percent of their fees without first submitting the charges to a judge as required by the U.S. Bankruptcy…

May 7, 2009 1:00 PM CDT

Madoff Firm was ‘Piggy Bank’ for Family, Trustee Says

An investment firm formerly run by convicted Ponzi schemer Bernard Madoff was essentially a “piggy bank” for personal expenses for him and his family, a trustee says in court papers. Bernard L. Madoff Investment Securities LLC paid for country club memberships and salaries of family members and servants, reports Reuters.…

May 6, 2009 4:55 PM CDT

Hearing Scheduled in Dispute over O’Melveny Fees in SonicBlue Bankruptcy

A federal bankruptcy judge in San Jose, Calif., has scheduled a hearing to determine whether O’Melveny & Myers should be able to collect $1.3 million in fees and costs for representing SonicBlue in its bankruptcy. The hearing comes amid allegations that O’Melveny & Myers failed to disclose a potential conflict…

May 6, 2009 4:00 PM CDT

Chrysler Hearing Takes Toll on Dewey Associate, But Not Athletic Judge

The bankruptcy judge overseeing the Chrysler case is a marathon runner with experience handling the high-profile reorganizations of Enron and WorldCom. The experience will likely well serve the 62-year-old judge, Arthur Gonzalez, who held his first hearing in the case today in a crowded courtroom. The heat apparently took its…

May 1, 2009 5:40 PM CDT