After filing more than 275 copyright infringement lawsuits, it now turns out that Righthaven was not the owner of the copyrights asserted in the lawsuit, and as a result is now on the verge of bankruptcy. The copyright infringement claims were made for reposting pictures and stories previously published by the Las Vegas Review-Journal, owned by Stephens Media.
Several states have recently added provisions to their insurance rehabilitation and liquidation acts which address the rights of parties to certain derivatives transactions with an insurance company in the event that an order of rehabilitation or liquidation is entered against the insurer. In short, these laws allow parties to exercise certain early termination and close-out netting provisions without regard to the applicable stay mechanism under state insurance insolvency law.
Equitable subordination in bankruptcy can be a powerful tool, providing a court with considerable latitude to set things right insofar as the estates of the penniless and the rights of their creditors are concerned.
While American manufacturing has experienced a resurgence in recent years, some manufacturers continue to face challenges.
The automotive industry has recently enjoyed a strong period of sales growth and productivity. But even during this period, some manufacturers and raw materials suppliers continue to face pressures presented by financially troubled customers and suppliers. Witness for example the recent chapter 11 filings of Lee Steel Corporation and Chassix Holdings, Inc.
The Bankruptcy Code prevents an individual debtor from discharging certain debts, including, upon request of the creditor, debts for “fraud or defalcation while acting in a fiduciary capacity.” 11 U.S.C. § 523(a)(4). The Seventh Circuit recently confirmed in Stoughton Lumber Co., Inc. v. Sveum, No.
By no means do we think that we might reliably predict the outcome of such a politically charged case as King v. Burwell, No. 14-114, the latest challenge to the Affordable Care Act.
Lease Payments. It is not uncommon for a retailer with financial problems to be past due on lease payments. Filing for bankruptcy often gives a debtor “breathing room” to evaluate its financial condition, including profitability (or not) of non-residential real-property leases. Depending on the applicable law, this “breathing room” may also free up some cash flow for the debtor.
W.R. Grace agreed to pay $250 million to the federal government for costs related to the investigation and remediation of asbestos contamination in Libby, Montana. W.R. Grace, a global supplier of specialty chemicals, owned and operated a vermiculite mine and vermiculite processing facilities in Libby from 1963 to 1990. The company and 61 affiliated companies filed for bankruptcy in April 2001. The settlement resolves a bankruptcy claim filed by the federal government to recover funds necessary to cleanup contaminated schools, homes, and businesses in Libby.
While the current outlook may be grim for the economy at large, the prospects of individual companies vary significantly, and some companies will continue to perform well despite the larger trends. For example, the designer retailer’s loss may become Walmart’s gain as consumers shop more closely for bargains. As the car manufacturers frequently say, “your mileage may vary.”