Blogs

Delaware Bankruptcy Update

The Delaware Bankruptcy Update blog offers insight and updates on corporate bankruptcy proceedings in Delaware.
View Blog

Bankruptcy Litigation Briefing

Authored by attorneys in Fox’s Bankruptcy Litigation group, the blog will provide analysis of the strategies adopted by litigators and the lessons to be drawn from court rulings in the most important bankruptcy litigation matters nationwide.
View Blog

Recent Blog Posts

  • U.S. Supreme Court Confirms That Stay Relief Orders Must Be Appealed Right Away Earlier this week, the United States Supreme Court issued an opinion regarding appeals of orders denying relief from the automatic stay.  Generally, the automatic stay (section 362 of the Bankruptcy Code) prevents creditors from taking action against the debtor’s assets outside the bankruptcy process. In order to continue debt collection efforts, creditors can file a motion for relief from stay. In Ritzen Group., Inc. v. Jackson Masonry LLC, No. 18-938, the Supreme Court considered the finality of a bankruptcy court order denying... More
  • Florida-based Entertainment Company Seeks Sale Via Chapter 11 Auction Fox Partner Mette Kurth discusses iPic-Gold Class Entertainment, Inc.’s Chapter 11 case in Delaware: iPic-Gold Class Entertainment, Inc. (IPIC) has filed a Chapter 11 case in Delaware to sell its business through a “363” bankruptcy auction. iPic is a Florida-based, publicly traded movie theater and restaurant company with 16 locations in 9 states that provide a “luxurious movie-going experience at an affordable price.” After achieving double-digit growth supported by its unique offering and market position, new market entrants and competitive pricing slowed iPic’s growth. But the... More
  • Maryland-based Home Sleep Testing Company Seeks Sale Via Chapter 11 Auction Fox Partner Mette Kurth discusses the NovaSom, Inc.’s recent  Chapter 11 case in Delaware: NovaSom, Inc. has filed a Chapter 11 case in Delaware in order to sell its business through a “363” bankruptcy auction. We are providing you with information about the case that you can forward on if you have clients who may be interested in purchasing any of NovaSom’s assets. NovaSom is a Maryland-based home sleep testing company. In 2010-2012, it developed a device, AccuSom, that sends sleep data wirelessly rather than... More
  • United States Supreme Court Holds that an “Objective Analysis” Applies to Determine Whether Civil Contempt is Appropriate for a Creditor’s Violation of a §524(a)(2) Discharge Order Stephanie Slater writes: The United States Supreme Court granted certiorari to determine the applicable legal standard for holding a creditor in civil contempt when a creditor attempts to collect a debt that falls within an issued bankruptcy discharge order.  In Taggart v. Lorenzen, 139 S.Ct. 1795 (2019), the Court unanimously decided to adopt an “objective standard,” holding that a court has permission to issue civil contempt sanctions against a creditor where there is “not a fair ground of doubt” in determining whether... More
  • Supreme Court Opinion: Bankruptcies Do Not Revoke TM Licenses This article is written by Elizabeth A. Patton and originally appeared on the Fox Advertising Law blog, https://advertisinglaw.foxrothschild.com This week, the U.S. Supreme Court issued a decision in the Product Holdings, Inc. v. Tempnology, LLC N/K/A Old Cold LLC case previously blogged about here and here.  The issue in that case was whether, when a trademark owner/licensor files for bankruptcy, the licensee of the trademark can legally continue use of the mark or whether the trademark owner/licensor can reject its obligations under the licensing agreement and effectively prohibit the... More
  • Sinemia Files for Chapter 7 Bankruptcy At the end of last week, Sinemia, a movie ticket subscription service, filed a Chapter 7 bankruptcy petition in Delaware, amidst multiple lawsuits and an investigation by the FTC.  The company, which permitted users to purchase monthly or yearly plans for movie passes, ended its operations effective immediately on Thursday, as announced on the company website. One of the suits is a class action over an alleged scheme to pass hidden processing fees on to customers.  Another action was commenced by... More
  • Sears Debtors sue Former CEO & others Seeking Billions In October of this year, Sears Holdings Corp and affiliated Debtors filed a Chapter 11 case in the U.S. Bankruptcy Court for the Southern District of New York in a case pending before Judge Drain. Since that time, the company has been reducing its debt and its physical footprint by closing stores.  After the bankruptcy was filed, Sears unsecured creditors began to claim that the Debtors’ former CEO & Chairman siphoned value away from Sears in a multitude of insider transactions. Last... More
  • Cyprus Wants Automatic Stay in Imerys Talc Bankruptcy Proceedings Additional developments have transpired in the the Imerys Talc bankruptcy proceedings since Imerys commenced an adversary proceeding in the Chapter 11 case against Cyprus Mines Corp. and Cyprus Amax Minerals Co. earlier this month over Cyprus’ right to use certain insurance policies in the defense of talc-related asbestos lawsuits. On March 20, 2109, Cyprus went on the offensive by filing a motion seeking standing to pursue a temporary restraining order and injunction, arguing that the automatic stay that currently only protects Cyprus... More
  • Imerys Talc Filed Adversary Claiming Ownership Over Millions of Dollars of Insurance Policies As a follow-up to our recent post about the Imerys Talc bankruptcy proceedings (the chapter 11 cases filed by a supplier of talc to cosmetic and other companies, like Johnson & Johnson), last week the Imerys Debtors brought suit in their Chapter 11 cases against two affiliated coal companies. The new adversary proceeding relates to the ownership of insurance policies with proceeds estimated in the hundreds of millions of dollars.  The Debtor claims that pursuant to an agreement entered into in... More
  • Second Circuit Finds Madoff Trustee can seek to Clawback Billions in Funds Transferred Abroad Earlier this week, the U.S. Court of Appeals for the Second Circuit revived 88 fraudulent transfer cases that were consolidated on appeal.  In those actions, the trustee for the Liquidation of Bernard L. Madoff Investment Securities LLC sought to recover billions of dollars in funds transferred out of the U.S. to foreign investors, called feeder funds. In re Picard, 17-2992(L) (2d Cir. Feb. 25, 2019). The feeder funds then transferred the funds to other foreign investors, resulting in hundreds of appellees.  On... More
  • Changes to the Local Rules of the Delaware Bankruptcy Court Effective February 1, 2019, a number changes to the local rules of the Delaware Bankruptcy Court became effective.  Practitioners in the jurisdiction should be sure to review the new rules as there are a number of revisions to motion practice, filings, and the calculation of deadlines.   A few notable changes include: ·   Shortened Notice for Motons: Motions may now be filed 14 days before a hearing (down from 18) unless the Federal Rules of Bankruptcy Procedure or the court’s local rules state... More
  • Imerys Talc America filed for Chapter 11 Bankruptcy related to Talc Lawsuits Yesterday, Imerys Talc America and two affiliated entities filed for chapter 11 bankruptcy protection in the Delaware Bankruptcy Court (Case No. 19-10289). The case is pending before Judge Silverstein. The first day affidavit filed in support of the Debtors’ chapter 11 petitions reveals that the Debtors are in the business of mining, processing and distributing talc.  They supply it to third-party manufactures fur use in personal care and cosmetic products sold to consumers, such as baby powder, makeup and soap.  The Debtors... More
  • New Jersey Law Journal Discusses Third Circuit’s Parameters on Bankruptcy Jurisdiction The New Jersey Law Journal recently published an article discussing the breadth and extent of bankruptcy court jurisdiction as applied by the Third Circuit Court of Appeals.  The article discusses three cases from last year: (i) Phila. Entm’t & Dev. Partners v. Dep’t of Revenue, 879 F.3d 492 (3d Cir. 2018), (ii) IMMC Corp. v. Erickson, 909 F.3d 589 (3d Cir. 2018), and (iii) In re Tribune Media Co., 902 F.3d 384 (3d Cir. 2018). The article reminds us that the... More
  • Mattress Firm Files Chapter 11 Bankruptcy in Delaware – Commercial Landlords Take Notice Earlier this month, Mattress Firm, Inc., and its affiliated debtors (collectively, “Mattress Firm”) filed for chapter 11 protection in the United States Bankruptcy Court for the District of Delaware.  Through the bankruptcy, Mattress Firm expects to complete a prepackaged restructuring within 45 to 60 days. Commercial landlords need to pay close attention to this bankruptcy.  Mattress Firm has already filed court motions for approval to reject up to 700 leases and will begin to close roughly 200 stores in the next few... More
  • Delivery Agent Preference Actions Filed in Delaware Starting on September 14, 2018, George Miller, as Chapter 7 Trustee of the DA Liquidating Corporation, f/k/a Delivery Agent, Inc., et al. (“Debtors”) filed approximately 84 complaints seeking the avoidance and recovery of allegedly preferential and/or fraudulent transfers under Sections 547 and 550 of the Bankruptcy Code. Delivery Agent and its affiliated debtors filed voluntary petitions for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on September 15, 2016.  Delivery Agent had originally filed for Chapter 11 protection... More