Forshey Prostok Represents Life Partners in Bankruptcy
Life Partners decided to pursue the Chapter 11 restructuring as a means of protection as it appeals the $46.9 million judgment against U.S. Securities and Exchange Commission.
Large Business Bankruptcies Flee Texas
Dallas Bankruptcy Judge Harold Abramson described himself as a "monkey with a machine gun." The quote reaffirmed the judge's unpredictability and caused bankruptcy lawyers representing large companies to file their cases in New York or Delaware. Nearly 20 years later, Abramson is long gone and Texas judges are widely praised for their expertise, but Texas companies continue to snub bankruptcy courts in DFW, Houston and Austin. Why? The Texas Lawbook examines the issue.
‘Shadow Banking’ Leads to Plunge in Texas Business Bankruptcy Filings
Business bankruptcy restructuring in Texas declined 20 percent in 2014 and plummeted more than 56 percent during the past five years. Experts point to a booming economy, low interest rates, an unprecedented access to cash through the emergence of a shadow banking system and the ballooning cost of litigating a case in bankruptcy court. But the streak may end in 2015 thanks to falling oil prices. “There is going to be a horrible re-awakening in March when E&P companies are required to reset their borrowing basis based on reserves,” says William Snyder of Deloitte. “We will see massive hemorrhaging in the smaller oil and gas companies. By May and June, we are going to see a lot of pain out there."
What’s Next in Energy Future Holdings’ Bankruptcy?
With EFH's original restructuring plan gone and the Dallas company facing a looming deadline in late August to file an official plan, the timing and playing field have changed dramatically for the utility. As the length of time for EFH to exit bankruptcy grows longer, restructuring costs substantially increase. With no clear path to achieve its pre-filing goals, legal and financial experts are wondering, what’s next since for EFH?
Is the 5th Circuit Eyeing a Knockout Blow to Pro-Snax?
Bankruptcy practitioners may see the 5th Circuit revisit its 1998 controversial decision in Pro-Snax Distributors, Inc., which required professionals to show their services resulted in an “identifiable, tangible, and material benefit to the estate” before those services would be compensable under Section 330 of the Bankruptcy Code.
Bloomberg: EFH May Scrap Initial Reorganization Plan
Lawyers for Energy Future Holdings Corp. told a bankruptcy judge in Delaware today that the Dallas power company may abandoned its pre-negotiated restructuring and reorganization plan it proposed when it filed for Chapter 11 in April.
Energy Future Holdings: Valuation Issues Hover Over Bankruptcy Proceedings
By Don Erickson and Bryce Erickson – (July 10) – Valuation issues are front and center of the EFH bankruptcy. A few of the critical existing and potentially emerging valuation issues in EFH’s Chapter 11 process include things like premises of value, regulatory issues as they pertain to pricing and rate setting, consolidated v.s. non-consolidated restructuring scenarios and development of projections and cash flows.
American Airlines: From Chapter 11 to the World’s Largest Airline
The two authors of the article, Dallas partners at Weil, explain how American emerged from Chapter 11 in December 2013 as one of the most successful Chapter 11 reorganizations in recent history.
American Airlines Insiders Provide Exclusive Behind-the-Scenes Recap of Historic Bankruptcy and Merger
Long-time American GC Gary Kennedy and other in-house and outside counsel in the American Airlines bankruptcy and merger with US Airways on Tuesday provided the most extensive behind-the-scenes tour of the historic reorganization. They discuss undercover flights to New York on a competitor's airline, angry calls with AMR board members, outside legal fees of $500,000 a day and closed door arguments between senior lawyers at the two airlines.
Energy Future Holdings’ Creditors: What to Expect
Dallas-based Energy Future Holdings Corp. is expected to seek bankruptcy protection any day now, and creditors are preparing to assert their rights to their portion of the billions owed. Some may see their claims paid quickly. Others may be in for the long haul in what is expected to be one of the largest corporate bankruptcies in U.S. history.
Fifth Circuit Requires More than Notice to Extinguish Lien through Plan Confirmation
Greg Hesse and Charlotte Ritz examine a new Fifth Circuit about creditors still needing to object to reorganization plan to preserve their lien.
Exclusive: AA GC Kennedy: No Plan B and No Retreating
American Airlines GC Gary Kennedy says he was shocked and disappointed that Texas AG Greg Abbott joined the federal antitrust lawsuit filed last week to stop AA's $11 billion merger with US Airways. Kennedy says "no concerns were voiced in advance" by Abbott's legal team. Kennedy says the airline has “no contingency plan” if the merger fails and that the company is “focusing all of our efforts and energies on winning this lawsuit.” Meanwhile, the airline is spending about $500,000 a day in legal expenses.