Dee Wyly Denies Knowledge of Offshore Trusts
The widow of Charles Wyly testified Wednesday that she knew nothing about the business dealings of her deceased husband and his family, including any knowledge about the offshore trusts the
Billion-dollar Bankruptcy Trial of Sam and Dee Wyly Starts this Week
The bankruptcy trial Dallas entrepreneur Sam Wyly and his sister-in-law Dee Wyly starts Wednesday. Billions of dollars are at stake. Each side plans to call up to three-dozen witnesses. The IRS says it will introduce 1,270 exhibits, while lawyers for the Wylys have another 837. U.S. Bankruptcy Chief Judge Barbara Houser has set aside four weeks to decide how much the Wylys owe in back taxes, fines and penalties for allegedly hiding hundreds of millions of dollars in trusts on the Isle of Man.
DMN: Bankruptcy Judge Approves EFH’s Plan
U.S. Bankruptcy Judge Christopher Sontchi ruled Thursday that Energy Future Holdings can move ahead on breaking up the company, setting the stage for Texas’ largest power company to emerge from bankruptcy court in the spring. The ruling effectively ends a fight among hedge funds and Wall Street tycoons that just six months ago appeared as if it might drag out for years.
DMN: Energy Future’s Bankruptcy Trial Starts Today
Energy Future Holdings seeks a fresh start in U.S. Bankruptcy Court in Wilmington, Del., today, arguing that breaking up the company offers it and its creditors the best chance to move on with the least possible financial pain. The trial is expected to run through at least the end of the month, pitting rival attorneys against one another in a bid to extract the most value they can from $40 billion in outstanding debts. The Dallas Morning News and The Texas Lawbook are following the case closely.
Appeals Court Favors ex-CFO in Insurance Dispute over Coverage in Bankruptcy
A Houston appeals court ruled Tuesday that a lower trial court must consider whether an insurance company breached its duty to a former Superior Offshore International executive when it refused to provide certain coverage the executive claimed was included in the director-and-insurer policy.
Exclusive: EFH Bankruptcy Fees Top $230 Million
Energy Future Holdings is spending more than $600,000 a day – including weekends and holidays – in legal and financial advisory fees and expenses as part of its restructuring efforts in federal bankruptcy court, putting the case on track to be one of the costliest bankruptcies in U.S. history. Since filing for reorganization under Chapter 11 in April 2014, lawyers and financial advisers have charged EFH $230 million through June 1. More than 50 lawyers, including 29 from Kirkland, are charging EFH more than $1,000 an hour.
SCOTUS: Baker Botts Loses Battle over Fees in Bankruptcy Case
The justices ruled that lawyers who vigorously fight with their own clients in bankruptcy court over legal fees cannot seek reimbursement for the time they spent battling over those fees – even if the bankruptcy judge rules the lawyers did a great job and deserve the money.
Bankruptcy Judge Green Lights Sale of Wyly’s Aspen Ranch
A federal bankruptcy judge gave Dallas entrepreneur Sam Wyly approval Wednesday to put his family’s 244-acre Aspen ranch up for sale for $50 million. Wyly said he needs to sell the ranch now in order to take advantage of increased real estate prices and strong demand in the marketplace.
EXCLUSIVE – Sam Wyly: Bankrupt but Still Fighting
Nine years ago, Forbes put Dallas entrepreneur Sam Wyly net worth at $1.1 billion. His business savvy created tens of thousands of jobs and put billions of dollars into the pockets of investors. Charities benefited to the tune of $67 million. Today, Wyly is in bankruptcy. The SEC wants $198 million. He's paid lawyers more than $100 million. And the IRS wants whatever is left. The Texas Lawbook has an exclusive interview with Wyly and his legal team about the litigation, auctioning off the family's assets and Sam Wyly's future.
Sam Wyly Hires Kathleen Sullivan, Fights for Office Staff Allowance in Bankruptcy Court
Dallas entrepreneur and philanthropist Sam Wyly has hired former Stanford Law School Dean Kathleen Sullivan to lead his legal efforts to reverse a New York jury decision last May that he and his deceased brother, Charles, violated federal securities laws involving trusts they established in the Isle of Man more than two decades ago.
Radio Shack – Another Large Corporate Bankruptcy Snubs Texas Courts
Radio Shack is the latest in a growing number of financially troubled North Texas corporations, including Energy Future Holdings and American Airlines, to go outside the state to restructure its business operations. General counsel for the companies that snubbed Texas bankruptcy courts say they did so because the judges in Delaware and the Southern District of New York are more experienced and more predictable in handling large complex corporate restructurings. But legal experts say none of it is true.
Jones Day Lawyers in Texas Lead Radio Shack into Chapter 11
Fort Worth-based Radio Shack finally filed for bankruptcy Thursday in Delaware. The retailer listed $1.2 billion in assets and $1.39 billion in debts. Radio Shack GC Bob Donohoo chose bankruptcy lawyers at Jones Day to be lead counsel in the case. Dallas partner Gregory Jordan and Houston partner Thomas Howley are playing key roles.