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Business Bankruptcy

From Penthouse to Ground Floor – The Penthouse Magazine Bankruptcy

The Life, Death and Many Reincarnations of Penthouse Magazine Penthouse International, publisher of Penthouse Magazine, sold for $11.2 million in June. The company was worth about $700 million (adjusted for inflation) at its height. The latest Penthouse Magazine bankruptcy highlights just how far Penthouse has fallen. The New Owner The buyer was WGCZ, which also owns […]


Lender Liability Is Alive and Well: A Case Study

The relationship between a lender and borrower can be complex. The borrower wants capital to run and grow its business and the lenders want to earn a return and eventually get its principal back. If the borrower complies with the terms of the loan, all is good. If the borrower breaches then the lender has […]


Law Firm Bankruptcies: The “Unfinished Business” Doctrine and the Jewel Waiver

One of the interesting aspects of business bankruptcy cases is that both the businesses and the issues their bankruptcy proceedings present can differ so much. In recent years, for example, we have seen department stores (Macy’s, Federated), toy retailers (Toys R Us), bookstore chains (Borders), automobile manufacturers (GM, Chrysler), supermarkets (A&P), auto supply companies (Delphi), […]


The Supreme Court Narrows the Bankruptcy Code Safe Harbor for Securities Transaction Payments

In our last article, we discussed the U.S. Supreme Court’s acceptance for review of the Seventh Circuit’s decision in FTI Consulting, Inc. v. Merit Management Group, LP, 830 F.3d 690 (7th Cir. 2016), cert. granted, No. 16-784, 197 L. Ed. 2d 894 (U.S. May 1, 2017). The Seventh Circuit had held that the Bankruptcy Code […]


Timing Is Everything: How to Make a Rough Assessment of Potential Preference Action Defenses (PART 2)

Editor’s Note: Part 1 of this article laid out the prima facie case a plaintiff needs to have in order to sue for a preference, outlined the major defenses and explained the importance and use of certain key documents in assessing and maintaining a defense. Part 2 now delves into the major defenses in greater […]


Timing Is Everything: How to Make a Rough Assessment of Potential Preference Action Defenses (PART 1)

Your company has just been served with a preference complaint. The complaint seeks to recover tens or hundreds of thousands of dollars even though your company already has taken a loss on the debtor’s accounts. Your initial response is anger at the unfairness of being sued. Fortunately, Congress included defenses to preference actions so that […]


Long-Term Disruptive Trends: Installment #2 – Transportation Industry Trends

This article is the second in a series of articles discussing long-term disruptive trends and their impact on restructuring activity. Read Bankruptcy Venue Reform, the first installment of this series. Introduction to Disruptive Trends The English Oxford dictionary defines “disruption” as a disturbance or problems which interrupt an event, activity, or process. Disruption is ubiquitous […]


Long-Term Disruptive Trends: Installment #1 – Bankruptcy Venue Reform

This article is the first in a series of articles discussing long-term disruptive trends and their impact on restructuring activity. Introduction to Disruptive Trends The English Oxford dictionary defines “disruption” as a disturbance or problems which interrupt an event, activity, or process. Disruption is ubiquitous in business. A few examples include customers filing for bankruptcy […]


To Tell The Truth; The Importance Of Full And Frank Disclosure To Preserving The Attorney-Client Privilege

Imagine yourself as the owner of a small company, or the CEO of a large corporation. The company is not doing well, but you are convinced the distress can be overcome. While sales are down, competition is fierce and your latest expansion – made with borrowed money – did not go well, the business is […]


Fraudulent Transfer Remedies – How Much is Enough?

One of the most powerful tools in the Bankruptcy Code available to bankruptcy trustees (or other estate representatives) to maximize the recovery of creditors is the power to avoid and recover fraudulent transfers of a debtor’s property.  These include transfers that are made, or obligations that are incurred, by a debtor (a) with the actual […]


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