Bankruptcy

Kimberly A. Brown

Bankruptcy Court Upholds the Sanctity of the Final Order

By Kimberly A. Brown |

The U.S. Bankruptcy Court has denied a request by an Official Committee of Unsecured Creditors and its affiliated debtors-in-possession to reconsider and modify a final cash collateral order almost one year after its entry.

Barry M. Klayman and Mark E. Felger

Dollar Cap on Committee Professional Fees Under Confirmed Plan

By Barry M. Klayman and Mark E. Felger |

U.S. Bankruptcy Judge Christopher S. Sontchi has held that absent specific language in a debtor-in-possession financing order, a carve-out for a fixed dollar amount for professional fees does not serve as a cap on the amount of fees to which a professional may be entitled.

Barry M. Klayman and Mark E. Felger

Dollar Cap on Committee Professional Fees Under Confirmed Plan

By Barry M. Klayman and Mark E. Felger |

U.S. Bankruptcy Judge Christopher S. Sontchi has held that absent specific language in a debtor-in-possession financing order, a carve-out for a fixed dollar amount for professional fees does not serve as a cap on the amount of fees to which a professional may be entitled once a Chapter 11 plan is confirmed.

Barry M. Klayman and Mark E. Felger

Post-Confirmation Examinations Pursuant to Bankruptcy Rule 2004

By Barry M. Klayman and Mark E. Felger |

Bankruptcy Judge Laurie Selber Silverstein has granted the post-confirmation motion of a trustee of trusts created pursuant to the debtors’ plan of reorganization to examine third parties regarding the cause of the debtors’ financial collapse under Federal Rule of Bankruptcy Procedure 2004.

Barry M. Klayman and Mark E. Felger

Turnover Order Cannot Trump Prohibition on Disclosure of ESI by Email Service Provider

By Barry M. Klayman and Mark E. Felger |

In a decision with implications that extend beyond bankruptcy, Bankruptcy Judge Christopher S. Sontchi refused to order an email service provider to turn over the contents of a private email account after the owner of the account evaded service and failed to comply with several discovery orders.

Barry M. Klayman and Mark E. Felger

Bankruptcy Court Holds Class-Action Waiver in Arb Agreement Violates NLRA

By Barry M. Klayman and Mark E. Felger |

U.S. Bankruptcy Judge Brendan Shannon of the District of Delaware recently decided two issues of first impression in this circuit: first, a class-action waiver provision in an arbitration agreement between an employer and an employee violates the National Labor Relations Act (NLRA), and second, an opt-out provision in an arbitration agreement containing a provision that violates the NLRA does not save the arbitration agreement.

Barry M. Klayman and Mark E. Felger

Vendor's Reclamation Rights Survive Lien of Post-Petition DIP Loan

By Barry M. Klayman and Mark E. Felger |

In In re Reichhold Holdings US, Inc., Case No. 14-12237 (MFW) (Bankr. Del., Aug. 24), Bankruptcy Judge Mary F. Walrath upheld the validity of a vendor's administrative claim for its reclamation rights under Section 546(c) of the Bankruptcy Code as against a post-petition DIP lender.

Peter B. Ladig

Pleading Tortious Interference With Prospective Business Relations Claim

By Peter B. Ladig |

A recent Delaware Court of Chancery decision covers many familiar aspects of Delaware law, but also addresses ground less traveled.

Michael M. Farhang and Andrew M. Roach

Special Interests at Stake When Dealing with Distressed Insurers

By Michael M. Farhang and Andrew M. Roach |

While most attorneys are familiar with the automatic litigation stay under Section 362 of the federal Bankruptcy Code, few may be aware of the different procedures for pursuing claims against distressed insurers.

Barry M. Klayman and Mark E. Felger

Post-Confirmation Noncore Claim Defeats Bankruptcy Court Jurisdiction

By Barry M. Klayman and Mark E. Felger |

Bankruptcy Judge Mary F. Walrath found in a recent case that she lacked jurisdiction over claims for breach of fiduciary duty brought by a liquidating trustee against former managers and officers of Chapter 11 debtors.

Thomas E. Hanson, Jr.

Company's Position Taken in Bankruptcy Voids Noncompete Obligations

By Thomas E. Hanson Jr. |

A recent Delaware Court of Chancery decision highlights the importance of coordinating the positions taken in different legal proceedings.

Barry M. Klayman and Mark E. Felger

Bankruptcy Judge Allows Filing of Class-Based Proof of Claim

By Barry M. Klayman and Mark E. Felger |

In In re Pacific Sunwear of California, Case No. 16-10882 (LSS) (Bankr. D. Del. June 22, 2016), U.S. Bankruptcy Judge Laurie Selber Silverstein of the District of Delaware granted a motion for leave to file a class proof of claim. In so doing, she rejected an argument by the debtors that class claims are impermissible in bankruptcy cases.

Barry M. Klayman and Mark E. Felger

Use of 'Golden Share' to Block Voluntary Bankruptcy Violates Fed. Laws

By Barry M. Klayman and Mark E. Felger |

U.S. Bankruptcy Judge Kevin J. Carey of the District of Delaware has denied a creditor's motion to dismiss the voluntary bankruptcy petition of a Delaware limited liability company filed in contravention of a provision in its operating agreement that required the unanimous consent of all members, including the creditor, to commence a bankruptcy case.

Barry M. Klayman and Mark E. Felger

Champerty and Maintenance Redux

By Barry M. Klayman and Mark E. Felger |

Recent newspaper stories recount how a billionaire Silicon Valley entrepreneur secretly financed a lawsuit to put Gawker out of business.