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    What We’re Reading This Week [April 27, 2023]
    2023-04-27

    Bed Bath & Beyond, the home goods retailer, has filed bankruptcy under Chapter 11 and plans to conduct liquidation sales and close all of its brick-and-mortar stores by June 30, as reported by The New York Times. The retailer points to an inability to adjust to the growth of online shopping as a reason for its downfall.

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Litigation, Mayer Brown
    Authors:
    Sean T. Scott , Aaron Gavant , Lisa A. Holl Chang
    Location:
    USA
    Firm:
    Mayer Brown
    Sell-Side Directors May Be Liable for Breach of Fiduciary Duty Claims for Failing to Investigate Company's Post-Closing Solvency
    2020-12-28

    In In re Nine West LBO Securities Litigation (Case No. 20-2941) (S.D.N.Y. Dec. 4, 2020), a federal district court denied in part a motion to dismiss claims brought by the Nine West liquidating trustee against former directors (the "Defendants") of The Jones Group, Inc. (the "Company"), Nine West's predecessor, for, among other things, (i) breaches of their fiduciary duties of care and loyalty, and (ii) aiding and abetting breaches of fiduciary duties. The litigation arises from the 2014 LBO of the Company by a private equity sponsor ("Buyer").

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Litigation, Winston & Strawn LLP, Private equity, Due diligence
    Authors:
    Dominick DeChiara , Bryan C. Goldstein , Carey D. Schreiber , Bradley C. Vaiana
    Location:
    USA
    Firm:
    Winston & Strawn LLP
    Bankruptcy Court Rejects US Trustee Fees on Distributions From Trust in 'Paragon Offshore'
    2021-09-08

    In the recent decision of Paragon Offshore, No. 16-10386 (CSS), 2021 (Bankr. D. Del. June 28, 2021), the U.S. Bankruptcy Court for the District of Delaware (the court) addressed the issue of whether the Office of the United States Trustee (OUST) could collect its quarterly fees against assets that were previously transferred to a litigation trust (the litigation trust) free and clear of any and all claims, liens and other encumbrances pursuant to a confirmed plan of liquidation.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Duane Morris LLP, Bankruptcy
    Authors:
    Lawrence J. Kotler
    Location:
    USA
    Firm:
    Duane Morris LLP
    Opportunities created by The Sbarro's bankruptcy filing
    2014-03-18

    On Monday, March 10, 2014, the companies that own and operate the Sbarro pizza chain, Sbarro LLC and 33 affiliates, filed for bankruptcy reorganization under Chapter 11 of the federal Bankruptcy Code.  The Sbarro companies operate 217 restaurants in the U.S. and there are 582 franchised restaurants, 176 in the U.S. and 406 at international locations.

    Filed under:
    USA, Insolvency & Restructuring, Leisure & Tourism, Litigation, Wiley Rein LLP
    Authors:
    Robert A. Smith , H. Jason Gold , Valerie P. Morrison
    Location:
    USA
    Firm:
    Wiley Rein LLP
    Colorado Supreme Court Confirms Bankruptcy Discharge Does Not Trigger Statute of Limitations to Recover Debt
    2023-04-28

    Colorado just became the latest state to recognize that a borrower’s bankruptcy discharge does not accelerate secured installment debt or trigger the final statute of limitations period to recover the debt.

    Filed under:
    USA, Colorado, Banking, Insolvency & Restructuring, Litigation, Troutman Pepper, Colorado Supreme Court
    Authors:
    Erin Edwards , Justin Balser
    Location:
    USA
    Firm:
    Troutman Pepper
    What We’re Reading This Week [April 27, 2023]
    2023-04-27

    Bed Bath & Beyond, the home goods retailer, has filed bankruptcy under Chapter 11 and plans to conduct liquidation sales and close all of its brick-and-mortar stores by June 30, as reported by The New York Times. The retailer points to an inability to adjust to the growth of online shopping as a reason for its downfall.

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Litigation, Mayer Brown
    Authors:
    Sean T. Scott , Aaron Gavant , Lisa A. Holl Chang
    Location:
    USA
    Firm:
    Mayer Brown
    Sell-Side Directors May Be Liable for Breach of Fiduciary Duty Claims for Failing to Investigate Company's Post-Closing Solvency
    2020-12-28

    In In re Nine West LBO Securities Litigation (Case No. 20-2941) (S.D.N.Y. Dec. 4, 2020), a federal district court denied in part a motion to dismiss claims brought by the Nine West liquidating trustee against former directors (the "Defendants") of The Jones Group, Inc. (the "Company"), Nine West's predecessor, for, among other things, (i) breaches of their fiduciary duties of care and loyalty, and (ii) aiding and abetting breaches of fiduciary duties. The litigation arises from the 2014 LBO of the Company by a private equity sponsor ("Buyer").

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, Litigation, Winston & Strawn LLP, Private equity, Due diligence
    Authors:
    Dominick DeChiara , Bryan C. Goldstein , Carey D. Schreiber , Bradley C. Vaiana
    Location:
    USA
    Firm:
    Winston & Strawn LLP
    Structuring and Practice for Aircraft Leases to Prevent Lease Payments From Being Clawed Back in a Lessee Bankruptcy
    2021-04-12

    KEY POINTS The risk that prepetition lease payments made by a lessee that is a debtor in a US bankruptcy will be clawed back from an aircraft lessor can be reduced if: • the lease is a true lease rather than a disguised secured loan or finance lease • one or both of basic rent and maintenance reserves are payable in advance (i.e., at the beginning of a rent period rather than at the end) • basic rent and maintenance reserves are payable monthly rather than quarterly or semiannually • the lessor enforces the lease’s payment obligations consistently • any payment made by a third party on beha

    Filed under:
    USA, Aviation, Insolvency & Restructuring, Litigation, Real Estate, Katten Muchin Rosenman LLP, Due diligence
    Location:
    USA
    Firm:
    Katten Muchin Rosenman LLP
    Bankruptcy Court Rejects US Trustee Fees on Distributions From Trust in 'Paragon Offshore'
    2021-09-08

    In the recent decision of Paragon Offshore, No. 16-10386 (CSS), 2021 (Bankr. D. Del. June 28, 2021), the U.S. Bankruptcy Court for the District of Delaware (the court) addressed the issue of whether the Office of the United States Trustee (OUST) could collect its quarterly fees against assets that were previously transferred to a litigation trust (the litigation trust) free and clear of any and all claims, liens and other encumbrances pursuant to a confirmed plan of liquidation.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Duane Morris LLP, Bankruptcy
    Authors:
    Lawrence J. Kotler
    Location:
    USA
    Firm:
    Duane Morris LLP
    Opportunities created by The Sbarro's bankruptcy filing
    2014-03-18

    On Monday, March 10, 2014, the companies that own and operate the Sbarro pizza chain, Sbarro LLC and 33 affiliates, filed for bankruptcy reorganization under Chapter 11 of the federal Bankruptcy Code.  The Sbarro companies operate 217 restaurants in the U.S. and there are 582 franchised restaurants, 176 in the U.S. and 406 at international locations.

    Filed under:
    USA, Insolvency & Restructuring, Leisure & Tourism, Litigation, Wiley Rein LLP
    Authors:
    Robert A. Smith , H. Jason Gold , Valerie P. Morrison
    Location:
    USA
    Firm:
    Wiley Rein LLP

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