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PROACTIVE MEDIATION: The Great Innovation of Detroit and Diocese Reorganizations

Hard times lead to new ways. The City of Detroit falls on hard times—and files bankruptcy to find a new way. Catholic Dioceses in various places are confronted with massive litigation burdens—and are finding solutions through bankruptcy. The Detroit bankruptcy case and the group of Diocese bankruptcy cases have little in common: The Diocese cases […]

Alpha Natural Resources Executive Pay Worthy of Football Stars?

As we watched the Broncos and Panthers come out onto the field this evening, we couldn’t help but be reminded of some of the incredible paychecks that the teams’ star players reeled in during this season. Leading them all was Peyton Manning, who earned $17.5 million– slightly more than twice the highest paid running back […]

Ponzi Scheme Lender May Be On The Hook, After All!

The Skinny The Sixth Circuit recently revived a trustee’s $17 million avoidance and claw-back suit against a lender, finding that the lender’s existing security interests could have been extinguished via novation. Impact: secured lenders entering into amended and restated loan documents should adopt definitive and irrefutable language demonstrating that the parties do NOT intend for the new […]

U.S. Department of Labor Reins In Independent Contractor Misclassification

On July 15, 2015, David Weil, Administrator for the United States Department of Labor, Wage and Hour Division, issued an “Administrator’s Interpretation” regarding independent contractor misclassification—essentially firing a warning shot at the armada of rising independent-contractor-model businesses navigating the current markets. These companies may be legally required to treat some or all of their contractors as […]

BEST OF THE BANKRUPTCY BLOGS – The Supreme Court Affirms Bankruptcy Court Authority

Two years ago, a Court of Appeals decision from the Seventh Circuit in the case of Wellness Int’l Network Ltd v. Sharif set the bankruptcy world all a twitter. Would bankruptcy courts essentially be stripped of their power to adjudicate certain disputes related to assets that may belong to a debtor’s estate? Was the Seventh Circuit really correct that the bankruptcy […]

Karmaloop Sale Approved Despite Committee Objection

A collection of Karmaloop’s creditors filed an objection in bankruptcy court to its proposed auction on Thursday, May14th. The objection was made as the Karmaloop auction was approaching, in which the company’s assets would be sold. This Official Committee of Unsecured Creditors felt that the sale, as proposed, would have allowed Karmaloop’s secured creditors to take the estate property and […]

Judge Cox Clarifies Creditor Post-Petition Interest Rates

Recently, Judge Jacqueline P. Cox in the U.S. Bankruptcy Court for the Northern District of Illinois issued an opinion which reviewed Seventh Circuit precedent in determining the appropriate rate of post-petition interest for unsecured creditors in Chapter 11 cases where the debtor is solvent. The legal implications of the Judge’s decision are interesting and worthy of […]

Illinois State Supreme Court Rules Pension Reform Bill Unconstitutional

The Illinois Supreme Court voted unanimously on Friday, May 8, to strike down a pension reform law that was passed in 2013 aimed at addressing the state’s burgeoning public pension debts. The law would have made changes to cost of living adjustments, retirement ages and salary used for pension benefits. Affirming a lower court ruling […]

Judge’s Ruling Protects GM Against Certain Ignition Switch Lawsuits

A federal bankruptcy judge ruled recently that GM’s 2009 bankruptcy protects the New GM from potentially billions of dollars in claims related to faulty ignition switches. The main point of contention in the case were some 140 lawsuits from plaintiffs, primarily from the families of 84 people whose deaths have been linked to the faulty […]

BEST OF THE BANKRUPTCY BLOGS – Who Owns this Social Media Account?

This is the first installment of a new series in which we recommend and summarize some of the most notable offerings from the various blogs of law firms specializing in corporate restructuring. We all know how social medial has ascended to an important role in the way businesses, products and brands are promoted today. But […]