Bankruptcy Law

Meet Chrysler’s Bankruptcy Lawyer, Corinne Ball

Chrysler is expected to file for bankruptcy after the collapse of negotiations with creditors that were led by the automaker’s lawyer, Corinne Ball. The bankruptcy filing will likely be in New York, according to the New York Times. Those who work with Ball describe her as charismatic, strong, creative and…

Apr 30, 2009 2:47 PM CDT

Oops. Partner’s No-Show at Hearing Doesn’t Help WilmerHale Client’s Cause

It’s a standard question at court hearings: Who represents a company involved in the case? The answer was a deafening silence on Monday at a routine U.S. Bankruptcy Court hearing in Manhattan, reports the Bankruptcy Beat blog of the Wall Street Journal. Judge Robert Gerber wasn’t pleased, the newspaper reports,…

Apr 28, 2009 11:25 PM CDT

Another ‘Clawbacks’ Defense for Madoff Clients: No Money

A new defense has been added to the list of reasons why early investors with Bernard Madoff arguably shouldn’t have to pay “clawbacks” of proceeds they received early on during his operation of a $65 billion Ponzi scheme under the guise of a hedge fund. In short, they don’t have…

Apr 28, 2009 10:36 PM CDT

Heller Staff Members Sue Partners, Seek $32M for Alleged Labor Law Violations

Contending that they didn’t receive mandated severance and vacation pay, some 800 former Heller Ehrman staff have sued at least 179 partners of the firm for alleged WARN Act violations under federal and California state law. Filed in U.S. Bankruptcy Court for the Northern District of California, their $32 million…

Apr 27, 2009 9:28 PM CDT

Law Firms Seen as Potential Cash Cows in Bankruptcy Cases

Updated: The worsening economy may bring more malpractice lawsuits against law firms by bankruptcy trustees who consider them potential cash cows. David Parker of Parker Mills in Los Angeles told the Daily Journal (sub. req.) that the burgeoning area of litigation is attracting some plaintiffs lawyers who are actively searching…

Apr 22, 2009 2:26 PM CDT

Well-Known Louisville Lawyer Accused in ‘Bust-Out’ Schemes

A well-known Louisville, Ky., lawyer has been accused in schemes to drain the assets of companies that were offered for sale. Bankruptcy lawyer Bruce Atherton is facing charges in two separate cases for aiding the alleged ringleader of a so-called “bust-out” scheme involving multiple companies, the Louisville Courier-Journal reports. The…

Apr 20, 2009 6:27 PM CDT

Malpractice and Partner Liability at Issue in Heller Bankruptcy

A bankruptcy judge sorting out the issues surrounding the dissolution of Heller Ehrman is refusing to allow a malpractice suit by an identity theft company to proceed against the former law firm. The identity theft company Lifelock Inc. accuses Heller and former partner Mary Azcuenaga of overbilling, the Recorder reports.…

Apr 17, 2009 12:57 PM CDT

Fried Frank Of Counsel Lost $1.12M with Madoff, Sees ‘Crink’ in Lifestyle

Lawyer Marc Cherno is trying to help investors who lost money with Bernard Madoff after his own reported loss of almost $1.12 million with the investment manager who pleaded guilty to running a Ponzi scheme. Cherno was a onetime takeover specialist at Fried, Frank, Harris, Shriver & Jacobson who is…

Apr 16, 2009 1:59 PM CDT

Lawyers Retool for Bankruptcy Practice, Due to Dismal Economy

Back when the economy was robust, attorney Brett King worked on mergers and acquisitions in Asia. Now he and other lawyers there bill themselves as “restructuring” experts—sometimes concerneing the same failed deals they helped put together, reports the Wall Street Journal. And they’re far from the only attorneys seeking a…

Apr 15, 2009 6:39 PM CDT

Judge Considers Whether Ex-Brobeck Partners Had Right to Clients

Lawyers involved in the bankruptcy of Heller Ehrman were in court Monday to watch arguments in a case involving the duties of 10 former partners at Brobeck, Phleger & Harrison. At issue is whether the Brobeck partners and their new law firms must pay the firm’s creditors for taking Brobeck…

Apr 14, 2009 11:13 AM CDT

Weil Gotshal Could Earn $230M in Fees if GM Files for Bankruptcy

Weil Gotshal’s fees in a General Motors restructuring could reach $230 million, according to a law professor who teaches bankruptcy law. Weil is one of two law firms advising GM on a possible bankruptcy, according to the Wall Street Journal Law Blog. And the firm hopes to take charge of…

Apr 7, 2009 11:24 AM CDT

Magazine Dubs Sullivan’s H. Rodgin Cohen Dealmaker of the Year

The American Lawyer has chosen H. Rodgin Cohen as dealmaker of the year for his central role advising or drafting deals for some of the nation’s top financial players during the economic meltdown. Cohen, of Sullivan & Cromwell, “was Wall Street’s go-to lawyer during the most important months for the…

Mar 31, 2009 6:04 PM CDT

US Seeks Power to Rewrite Employment Contracts Outside of Bankruptcy

Employees who work for troubled companies and municipalities under contracts specifying pay, benefits and bonuses could see those agreements go by the wayside. The U.S. government is seeking the power to rewrite employment contracts outside of bankruptcy court when it intervenes to help save troubled companies, the New York Times…

Mar 31, 2009 12:16 PM CDT

Heller Creditors Team Up to Target Banks Blamed for Firm’s Demise

The Heller Ehrman estate and its creditors have reportedly circled the wagons around the banks that are being blamed for the firm’s bankruptcy. The creditors, with the full support of the firm’s estate, asked a federal bankruptcy judge Friday for standing so they can sue Bank of America and Citibank…

Mar 30, 2009 8:11 PM CDT

Miami Firm Shrinks and Refocuses, But Doesn’t Implode, Founder Says

The 40-lawyer Miami law firm Kluger Peretz Kaplan & Berlin is losing two of its name partners and a dozen other lawyers, but it’s not imploding, according to founding partner Alan Kluger. The split is a result of the firm’s decision to focus on litigation and shed its bankruptcy and…

Mar 27, 2009 1:48 PM CDT