Case News

April 23, 2018, Arkansas – Trustee M. Randy Rice, for the Debtor Turner Grain Merchandising, Inc. brought an adversary proceeding to avoid a transfer made by the Debtor to a Defendant M-Real Estate LLC as preferential under Sec. 547 and as a constructively fraudulent transfer under Sec. 548. The Defendant …

April 3, 2018, Delaware – Debtors NewPage Corp and its affiliates comprised the largest coated paper manufacturer in North America. The Debtors operated sixteen paper mills located in Kentucky, Maine, Maryland, Michigan, Minnesota, and Wisconsin. During its business, the Debtors purchased chemicals from a variety of suppliers, including Defendant ERCO. …

March 28, 2018, New York – The Securities Investor Protection Act (SIPA) Trustee has, so far, recovered or reached agreements to recover approximately $12.874 billion of the estimated $17.5 billion in principal lost in the Ponzi scheme by Bernard L. Madoff Investment Securities LLC (BLMIS) customers. This recovery represents more …

March 21, 2018, New York – The United States District Court for the Northern District of Illinois recently held that UBS Securities LLC is not required to return $14.4 million that it received when it exhausted its account with failed investment firm Sentinel Management Group Inc. several months before its …

March 20, 2018, Southern Texas – Creditor Heritage Bank brought an adversary proceeding against Debtor James W. McCracken to determine the dischargeability of the certain debt owed to it by the debtor. Heritage alleged that McCracken’s debts to it were nondischargeable under 11 U.S.C. §523(a)(2)(B) and, alternatively, 11 U.S.C. §727(a)(3). …

February 27, 2018, New York – Resolving the circuit split over the scope of the Bankruptcy Code’s “safe harbor” provision exempting certain securities transactions from clawbacks, the U.S. Supreme Court unanimously concluded that a transfer could be undone in bankruptcy if funds simply move through a financial institution without benefiting …

February 23, 2018, New York – The trustee for bankrupt ambulance company TransCare Corp. hit Lynn Tilton and her private equity firm Patriarch Partners with a $10 million clawback suit in New York bankruptcy court, alleging the onetime owners of TransCare blew up the company through mismanagement and an “outrageous” …

February 5, 2018, New York – U.S. Bankruptcy Judge Sean H. Lane found that Arcapita’s creditors can seek to retrieve $30 million in investments in Bahrain Islamic Bank and Bahrain-based Tadhamon Capital BCS, rejecting the banks’ arguments that the investments’ foreign nature shields them from clawback attempts. The judge denied …

January 25, 2018, New York – Last week, a New York judge held that the trustee of bankrupt Lyondell Chemical Co. couldn’t claw back $300 million in credit line repayments from private equity tycoon Leonard Blavatnik. The appeal arose out of the leveraged buyout (LBO) and ensuing bankruptcy of Lyondell …

January 29, 2018, Delaware – An Italian restaurant chain, Macaroni Grill’s unsecured creditors sought permission and authority from the Court late last month to prosecute and settle claims against Bank of Colorado. According to the complaint filed in Judge Mary F. Walrath’s court, the Committee sought to avoid new liens …