Bankruptcy Law

Heller’s Optimistic Numbers: $325M in Assets, Capital; $72M in Liabilities

Heller Ehrman’s dissolution plan makes optimistic predictions about its ability to collect accounts receivable and may overstate its assets, say analysts who are divided on whether the firm will be forced into bankruptcy. The plan, leaked to reporters and bloggers, was analyzed by the Recorder and Daily Journal (sub. req.).…

Oct 10, 2008 12:10 PM CDT

What Weil Wants for Lehman Bros. Bankruptcy Work: $355 to $950/Hour

Nice work if you can get it: In a fee application filed yesterday in federal bankruptcy court in New York, one of the nation’s most renowned corporate bankruptcy law practice groups revealed what it hopes to get for its work in the nation’s biggest bankruptcy case. The petition by Lehman…

Oct 9, 2008 9:52 PM CDT

Wall Street Crisis Creates Too Much Work for Weary Bank Lawyers

Amidst what one consultant describes as a horrible year for major corporate law firms, one practice area is red-hot: advising struggling financial institutions, for those considered expert in the practice area. One unnamed lawyer billed 450 hours last month—that’s 15 per day, every day, according to Bloomberg. Others, according to…

Oct 9, 2008 9:00 PM CDT

Suspended Texas Lawyer’s ‘Sextortion’ Conviction is Upheld

A suspended Texas lawyer who was convicted, along with his attorney wife, of misusing the civil litigation system in a scheme to extort money from men who had sex with her, has lost an appeal. The 4th Court of Appeals today upheld Ted Roberts’ 2007 conviction on three counts of…

Oct 8, 2008 11:34 PM CDT

Bailout Bill Allows Lawsuits Against Treasury, Banks

The $700 billion bailout bill passed by Congress last week allows damage suits against the Treasury Department for any misconduct in the distribution of aid. The original plan advanced by the administration would have shielded the department from judicial review. The new plan permits damage suits but not injunctions because…

Oct 6, 2008 5:56 PM CDT

Judge Rules Trustee Lacks Authority to Sue Countrywide for Abuses

A federal bankruptcy judge in Miami has tossed a suit by the U.S. Trustee against Countrywide, ruling the agency has no authority to sanction companies for alleged bad faith conduct. Judge A. Jay Cristol said the trustee had “noble intentions” but the authority to seek punishment rests with federal prosecutors,…

Oct 6, 2008 1:55 PM CDT

Silver Lining to US Financial Storm: New Law Practice Arena

Continuing economic turmoil in the U.S. and internationally is prompting a number of major law firms to form special multidisciplinary practice groups to help clients deal with financial crises. In the process, some are creating new Internet resources that also may be of interest to other practitioners. In addition to…

Sep 30, 2008 4:16 PM CDT

House Nixes $700B Bailout; What’s Next for Regulators?

Developing: In a U-turn from initial predictions last week that emergency financial bailout legislation proposed by Bush administration officials would soon be enacted, the House today defeated the package by a 228-205 vote, creating, at least for the moment, a brave new world for federal regulatory agencies. U.S. Treasury Secretary…

Sep 29, 2008 8:20 PM CDT

US Financial Crisis Sparks Harsh Criticism of Regulatory Efforts

As officials in the Bush administration put on a full-court press this week to persuade Congress to enact emergency financial rescue legislation at a price tag that reportedly exceeds the cost of the Iraq war, the situation has sparked a firestorm of criticism concerning regulatory efforts, past and present. A…

Sep 25, 2008 10:00 PM CDT

Flush With Lehman Bros. Work, Hughes Hubbard Adds Bankruptcy Boutique

Last week, a Hughes Hubbard and Reed partner was named as trustee in the Lehman Brothers bankruptcy. This week, the New York City-based law firm has made a timely acquisition of a six-lawyer bankruptcy boutique. Yesterday, the Hughes firm announced it is acquiring Luskin Stern & Eisler, which specializes in…

Sep 24, 2008 9:53 PM CDT

$700B Bailout Alternative: Another Great Depression, Officials Say

Updated: Despite warnings that the alternative is an economic tailspin, as well as an agreement today by U.S. Treasury Secretary Henry Paulson to limit top executive pay as a condition of providing aid to struggling U.S. financial institutions, it isn’t clear that Congress is ready to approve extraordinary emergency bailout…

Sep 24, 2008 8:39 PM CDT

Will Excessive Pay Claim be Among Financial Woes for Top Lehman Lawyer?

The financial fortunes of the chief legal officer for Lehman Brothers is worsening after the company’s bankruptcy filing. Chief legal officer Thomas Russo is among the investment bank’s executives who sold stock last week after its bankruptcy filing for the low price of seven cents to 30 cents a share,…

Sep 24, 2008 4:32 PM CDT

Cross-Dressing Bankruptcy Judge Lands at Boston Law Firm

Former bankruptcy judge Robert Somma has a new job at a Boston law firm. Somma is joining the firm of Posternak Blankstein & Lund as a senior counsel in the firm’s bankruptcy department, the Boston Globe reports. The respected judge made headlines in February when he was arrested for drunken…

Sep 24, 2008 12:20 PM CDT

How a Bankruptcy Court Overrode Restitution in a Criminal Case

The plight of Mark Poveromo illustrates how bankruptcy law and criminal law can conflict, sometimes to the victim’s detriment. The Associated Press reports on Poveromo’s predicament and quotes experts who say the case highlights the need to revise bankruptcy laws to treat people better who are awarded restitution in a…

Sep 22, 2008 4:16 PM CDT

Hot: Bankruptcy in NY & Delaware; Cooler: Bankruptcy Practice Elsewhere

How hot is bankruptcy practice in New York City right now? “Similar to the cleanup crews descending on Texas in the aftermath of Hurricane Ike, financial cleanup crews are mobilizing around the wreckage of Lehman Brothers,” reports <a/href=”http://www.crainsnewyork.com/apps/pbcs.dll/article?AID=/20080918/FREE/809189961/1048/information” title=”Crain’s New York Business”>Crain’s New York Business.”Within minutes of Monday’s bankruptcy announcement,…

Sep 18, 2008 9:43 PM CDT