Posted on August 4, 2010 by Morris James Delaware
18 Morris James attorneys in 13 practice areas were recently selected by their peers for inclusion in The Best Lawyers in America® 2011. New to the list are Mark D. Olson and Bruce W. Tigani from the firm’s Tax, Estates and Business practice. The firm’s Real Estate Practice Group Chair, Richard Beck, has been named in this highly regarded publication since its inception in 1983.
The Best Lawyers in America® 2011 has become universally regarded as the definitive guide to legal excellence. Their rigorous research is based on an exhaustive peer-review survey in which more than 39,000 leading attorneys cast almost 3.1 million votes on the legal abilities of other lawyers in their practice areas. The Morris James attorneys listed in the 2011 edition and the areas of law in which they are recognized include:
COMMERCIAL LITIGATION
• P. Clarkson Collins, Jr. (2005)
• Lewis H. Lazarus (2006)
• Edward M. McNally (2005)
• James W. Semple (2009)
CORPORATE LAW
• P. Clarkson Collins, Jr. (2005)
• Lewis H. Lazarus (2006)
• Edward M. McNally (2005)
ELDER LAW
• Mary M. Culley (2008)
EDUCATION LAW
• David H. Williams (2007)
FAMILY LAW
• Gretchen S. Knight (2007)
INFORMATION TECHNOLOGY LAW
• Richard K. Herrmann (2003)
INSURANCE LAW
• Mary B. Matterer (2009)
LABOR AND EMPLOYMENT LAW
• David H. Williams (2007)
PERSONAL INJURY LITIGATION
• Keith E. Donovan (2009)
• Dennis D. Ferri (2007)
• Richard Galperin (2005)
• Francis J. Jones, Jr. (2008)
REAL ESTATE LAW
• Richard P. Beck (1983)
• John Bloxom IV (2010)
TAX LAW
• Daniel P. McCollom (2007)
• Mark D. Olson (2011) *
• Bruce Tigani (2011) *
TECHNOLOGY LAW
• Richard K. Herrmann (2003)
TRUSTS AND ESTATES
• Mary M. Culley (2008)
* Indicates First Year on List
Posted on August 4, 2010 by Morris James Delaware
Morris James LLP is pleased to announce that five of its partners have been recognized among the top Delaware litigation attorneys in Benchmark Litigation 2011 - The Guide to America's Leading Litigation Firms and Attorneys.
Morris James’ Litigation Stars
Rich Galperin
Clark Collins
Richard Herrmann
Lewis Lazarus
Edward McNally
Benchmark Litigation focuses exclusively on litigation lawyers and firms in the United States. Recommendations are based on extensive face-to-face and telephone interviews with the nation’s leading private practice lawyers and in-house counsel.
Posted on June 16, 2010 by Morris James Delaware
Morris James LLP is pleased to announce that ten of its partners have been ranked among the leading Delaware lawyers in the 2010 edition of Chambers USA: America’s Leading Lawyers for Business - an increase of two rankings from last year. In addition, four practice areas including Bankruptcy/Restructuring, Chancery, Intellectual Property and Employment Law were identified among the leading practices in Delaware. The Morris James partners selected for inclusion in the 2010 edition are:
Bankruptcy/Restructuring
- Brett Fallon
- Carl N. Kunz
- Stephen M. Miller
Chancery
- Edward M. McNally
- Lewis H. Lazarus
- P. Clarkson Collins, Jr.
Intellectual Property
- Mary M. Matterer
- Richard K. Herrmann
Labor and Employment
Real Estate: Zoning/Land Use
Chambers & Partners is a highly respected and influential London-based research and publishing company that provides rankings of leading business lawyers and law firms throughout the world. Rankings are based on technical legal ability, professional conduct, client service, commercial astuteness, diligence, commitment, and other qualities most valued by clients.
Posted on June 7, 2010 by Morris James Delaware
Morris James LLP is pleased to announce Peter B. Ladig has joined the firm as of June 1, 2010. The majority of Mr. Ladig’s practice is in the Delaware Court of Chancery, although he has extensive experience in the other state and federal courts in Delaware and has been involved in over 50 published decisions.
David Williams, the firm’s managing partner stated “We are delighted Peter Ladig has joined the Firm as a partner in our Corporate/Commercial Litigation Group. Peter adds his considerable skill and experience to a talented Group. We continue to look for opportunities to grow our Firm by adding accomplished laterals, particularly in the IP practice.”
Mr. Ladig has represented both stockholders and directors in litigation in the Court of Chancery in cases involving, among other things, advancement of legal fees and expenses, contested elections of directors, requests to inspect books and records and claims for breaches of fiduciary duties. He has also represented corporations and other entities in commercial disputes involving breach of contract claims and claims arising under the General Corporation Law of the State of Delaware.
Mr. Ladig has authored several articles pertaining to corporate and commercial litigation in Delaware and he is a frequent speaker before groups of professionals regarding Delaware laws affecting LLCs and other business entities. Mr. Ladig graduated with distinction from Emory University School of Law and has been a member of the Delaware Bar since 1996.
Posted on May 27, 2010 by Morris James Delaware
Super Lawyers® magazine has named 7 Morris James partners as top legal counsel in Delaware. The multiphase selection process is handled by Law & Politics who evaluates each candidate on 12 indicators of peer recognition and professional achievement. Selections are made on an annual, state-by-state basis and include only 5 percent of the licensed attorneys in a state.
Morris James’ 2010 nominations include:
• David H. Williams - Employment & Labor, Government/Cities/Municipalities
• P. Clarkson Collins, Jr. - Business Litigation, Business/Corporate, Mergers & Acquisitions
• Richard Galperin - Personal Injury Defense: Medical Malpractice
• Lewis H. Lazarus - Business Litigation
• Edward M. McNally - Business Litigation, Business/Corporate
• James W. Semple - Business Litigation, General Litigation, Insurance Coverage
• Richard Herrmann – Intellectual Property Litigation
Posted on May 12, 2010 by Morris James Delaware
Posted on April 29, 2010 by Morris James Delaware
The Local Rules of Civil Practice and Procedure of the United States District Court for the District of Delaware have been amended and are set to become effective on April 30, 2010.
The last amendments to the District Court Local Rules were made three years ago. The new amendments are meant to reflect changes to the Fed. R. Civ. P. that became effective last year as well as address other practices of the Court and of the Bar.
A link to the new District Court Local Rules can be found on the website for the United States District Court for the District of Delware, linked here.
Posted on January 5, 2010 by Morris James Delaware
On January 5, 2010, Delaware Bankruptcy Judge Mary F. Walrath confirmed the Second Amended Chapter 11 Plan of Simmons Bedding Company and related debtors. Confirmation of Simmons' pre-packaged plan clears the way to closing an acquisition of Simmons by certain affiliates of Ares Management LLC and Teachers’ Private Capital, the private investment department of the Ontario Teachers’ Pension Plan. To view the opinion, please click here.
Posted on August 6, 2009 by Morris James Delaware
Morris James was named Delaware's 5th Top Workplace in The News Journal’s Best in the Business survey for mid-sized companies. This honor makes Morris James the highest-ranking law firm in the State within the "mid-sized company" category.
The survey, conducted for The News Journal by WorkplaceDynamics, measured factors such as management, environment, compensation and communication.
To view a copy of the Morris James article, please click here.
Posted on June 12, 2009 by Morris James Delaware
The publishers of Chambers USA: America’s Leading Lawyers for Business today launched the 2009 Client’s Guide. Morris James partners, Stephen M. Miller and Carl N. (“Chuck”) Kunz, III, have been recognized by Chambers this year in the area of Bankruptcy/Restructuring. Mr. Miller appears in Chambers for the 5th time. Mr. Kunz appears for the second consecutive year.
In its description of the Morris James Bankruptcy and Creditors’ Rights Group, Chambers notes: “This firm has a solid reputation for creditor-side work, and also draws admiration for its work on smaller liquidation matters. The pragmatic Stephen Miller is praised for his success in interested-party work and his proficiency in both debtor and creditor matters. Carl Kunz is regarded as ‘a good, bright negotiator’ by clients, who appreciate his calm demeanor and ability to ‘keep the volume down when there is acrimony.'"
Chambers ranks law firms and attorneys in particular areas of law based upon the results of tens of thousands of interviews conducted during a six-month period. The qualities assessed during the interviews are those most valued by the client: technical legal ability, professional conduct, client service, commercial awareness, diligence, and commitment.
Posted on May 1, 2009 by Morris James LLP
Commercial Chapter 11 case filings in the United States Bankruptcy Court for the District of Delaware in 2009:
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Posted on December 31, 2008 by Morris James LLP
Commercial Chapter 11 case filings in the United States Bankruptcy Court for the District of Delaware in 2008:
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Posted on September 19, 2008 by Morris James LLP
This morning, the United States Bankruptcy Court for the District of Delaware granted the motion of the largest creditor of the estates of CHA Hawaii, LLC and its affiliated debtors to transfer venue of the case from Delaware to the District of Hawaii. St. Francis Healthcare System of Hawaii, which is the largest secured creditor in the case, with an unpaid debt due of approximately $65,000,000, filed the motion to transfer the case.
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Posted on August 4, 2008 by Morris James LLP
Early this morning, August 4, 2008, Boscov’s, Inc. and 7 affiliated debtors filed Chapter 11 petitions in Delaware. The affiliates are: Boscov's Investment Company, Boscov's Department Store, LLC, Boscov's Finance Company, Inc., Boscov's PSI Inc., Boscov’s Transportation Company LLC, Retail Construction and Development, Inc. and SDS, Inc. Judge Kevin Gross is presiding over these cases. The petition is here.
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Posted on June 23, 2008 by Morris James LLP
The publishers of Chambers USA: America's Leading Lawyers for Business recently launched the 2008 Client's Guide. Morris James partners Stephen M. Miller and Carl N. (“Chuck”) Kunz, III have been recognized by Chambers this year in the area of bankruptcy. Mr. Miller appears in Chambers for the 4th time.
In its description of the Morris James Bankruptcy and Creditors' Rights Group, Chambers USA notes that “this ‘persuasive and innovative’ team has also carved itself a niche in the representation of commercial landlords in bankruptcy proceedings across the country. The attorneys here are known for their quiet reliability and diligence, which is a great help for their clients: ‘I can rely on them to work independently when I’m tied up on other matters.’ Group chair Stephen Miller ‘does a wonderful job’ on the creditors side, and is rated for his ‘smart, diligent and solid approach.’ Carl Kunz makes his first appearance in these rankings this year, and does so thanks to a growing band of followers who affirm that ‘his practice is really taking off.’ He is building a reputation for the representation of secured and unsecured creditors in Chapter 11 and Chapter 7 bankruptcies in Delaware and beyond, and his background in litigation is an obvious asset to his clients. Collectively, Miller and Kunz are highlighted for their ability to ‘handle matters in a cost-efficient manner’ - an attention to value which is exemplified by the team’s willingness to ‘keep me informed about the status of matters,’ according to one client - and their proactivity with regard to dealing with ‘what may be coming up later in a case.’”
Chambers USA ranks law firms and attorneys in particular areas of law based upon the results of more than 14,000 interviews conducted during a six-month period. The qualities assessed during the interviews are those most valued by the client: technical legal ability, professional conduct, client service, commercial awareness, diligence, and commitment.
Posted on June 19, 2008 by Morris James LLP
Brett D. Fallon, a partner in Morris James' Bankruptcy and Creditors' Rights group, will be a panelist at this year's American Bankruptcy Institute 4th Annual Mid-Atlantic Bankruptcy Workshop. The conference which will take place in Cambridge, Maryland from July 31 through August 2, 2008.
Brett will speak on the "Leveling the Playing Field: Avoidance Issues Update” panel, which will be moderated by the Honorable Mary D. France of the United States Bankruptcy Court for the Middle District of Pennsylvania. Brett is also a member of the Advisory Board for the conference.
Morris James attorney Thomas M. Horan is a panelist and the facilitator of the “Swords into Plowshares: Mediation and ADR” panel at the conference. That panel will be moderated by the Honorable Kevin Gross of the United States Bankruptcy Court for the District of Delaware.
Morris James attorneys Douglas N. Candeub and Ericka F. Johnson also plan to attend the conference.
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Posted on June 19, 2008 by Morris James LLP
On April 1, 2008,
Brett D. Fallon, a Partner in
Morris James' Bankruptcy and Creditors' Rights group, was appointed as Chair of the Claims and Priorities Subcommittee of the American Bar Association Business Bankruptcy Committee. Mr. Fallon's three (3) year term will begin at the committee's fall meeting. The Business Bankruptcy Committee operates through 33 subcommittees and consists of approximately 1,200 members, and is the largest group in the world made up exclusively of bankruptcy lawyers, professors and judges.
The Business Bankruptcy Committee is affiliated with the Business Law Section of the American Bar Association. It offers educational programs, develops and reviews proposed bankruptcy legislation, and is an important participant in United Nations Commission on International Trade Law's Insolvency and Secured Transactions Working Group.
Posted on May 9, 2008 by Morris James LLP
Hilex Poly Co. LLC, which touts itself as the word's largest manufacturer of plastic bags, has filed a petition for relief under Chapter 11 of the United States Bankruptcy Code. The debtor filed the petition on May 6, 2008 in the United States Bankruptcy Court for the District of Delaware. The Honorable Kevin J. Carey is presiding over this case.
At the first day hearings in the case, Judge Carey granted interim approval of over $140 million in debtor-in-possession financing from prepetition lenders who include GE Capital Corp., Morgan Stanley Senior Funding, Inc. and others. Judge Carey set a final hearing on this financing plan for May 27, 2008.
The debtor is proposing a prepackaged plan of reorganization under which existing equity would be wiped out. Under the proposed plan, a new company, to be called
Hilex Poly Investors Corp., would be created, with all equity in the new entity divided among the debtor's first and second lien holders. While first lien holders will be made whole under the proposed plan, second lien holders will realize forty (40) cents on each dollar. General unsecured claims are anticipated to pass through the case unaffected, and are proposed to be paid in the ordinary course by the new company. On May 7, 2008, Judge Carey scheduled a plan confirmation hearing for June 12, 2008 at 10:00 a.m.
Posted on May 6, 2008 by Morris James LLP
Last evening, Tropicana Entertainment LLC and affiliated companies filed petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The debtors, whose casino operations include the landmark Tropicana Casino & Resort in Las Vegas, and ten (10) other casinos, have arranged $67 million in debtor-in-possession financing from Silver Point Finance LLC.
Tropicana has been in the news because New Jersey regulators stripped the debtors of their license to operate the Tropicana Resort and Casino Atlantic City. This event set off a crisis that culminated in these filings. After New Jersey stripped the debtors of their license to operate the Tropicana Atlantic City, the Indiana Gaming Commission ruled that the failure to renew the New Jersey license imperils the debtors' ability to operate the Casino Aztar Evansville. The debtors agreed to sell the Aztar to resolve this issue with the Indiana Gaming Commission.
The Tropicana Atlantic City, which currently is operated by a trustee, and the Casino Aztar Evansville, will likely be sold under section 363 of the Bankruptcy Code. The debtors hope to use the bankruptcy process to restructure their businesses and continue to operate their remaining casinos and other business interests. The Honorable Kevin J. Carey is presiding over these cases.
Posted on March 11, 2008 by Morris James LLP
Morris James LLP bankruptcy attorney
Tom Horan has been appointed Newsletter Editor for the Young & New Members Committee of the
American Bankruptcy Institute.
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Posted on March 10, 2008 by Morris James LLP
Leiner Health Products Inc., a manufacturer of store brand vitamins, minerals, and nutritional supplements, today filed a voluntary Chapter 11 petition in the United States Bankruptcy Court for the District of Delaware. The Honorable Kevin J. Carey is presiding over the case.
According to the website the debtor has set up to disseminate information about its case, “Leiner intends to use the Chapter 11 process to restructure its debt obligations and explore the sale of the business.”
Related entities filing petitions today include LHP Holding Corp., Leiner Health Products, LLC and Leiner Health Services Corp.
UPDATED ON MARCH 11, 2008:
The debtors have filed a motion seeking approval of debtor-in-possession financing in the amount of $74 million. The proposed maturity date of this DIP facility is the earlier of July 31, 2008, or other possible events in the case including the closing date of a sale of all or substantially all the debtor's assets under section 363 of the Bankruptcy Code, the conversion of the case to a case under Chapter 7, the effective date of a plan of reorganization, the date on which all the loans have been repaid in full or the date of the termination of all of the commitments under the DIP facility.
The first day hearing in this case is scheduled for March 12, 2008 at 11:00 a.m.
Posted on March 1, 2008 by Morris James LLP
Morris James' Bankruptcy and Creditors' Rights Group proudly announces that
Ericka Fredricks Johnson has joined the practice as an associate. Ms. Johnson received her Bachelor of Arts in Economics, magna cum laude, from the University of Delaware in 1997 and received her Juris Doctor, cum laude, from Widener University School of Law in 2007. While in law school, she was awarded membership in the Order of the Barristers for excellence in appellate advocacy and the Phi Kappa Phi National Honor Society for academic achievement. Ms. Johnson served as President of the Moot Court Honor Society and was a member of the Delaware Journal of Corporate Law. She interned with the Honorable Joseph R. Slights, III in the spring and summer of 2006. Ms. Johnson has experience in business transactions, where she has represented trustees in new and restructured corporate finance transactions, including trust preferred securities.
Ms. Johnson is admitted to practice in Delaware, New Jersey and the United States District Court for the District of Delaware. She is a member of the American Bankruptcy Institute, the Delaware State Bar Association and the American Bar Association.
Ms. Johnson joins one of Delaware's most significant corporate bankruptcy practices. Morris James' Bankruptcy and Creditors' Rights Group represents creditors, debtors, lenders, creditors' committees, purchasers, investors and other parties in interest before the United States Bankruptcy Court for the District of Delaware, the United States District Court for the District of Delaware, the United States Court of Appeals for the Third Circuit, as well as other state and federal courts. They have counseled clients in both reorganization and liquidation cases as well as in out-of-court workouts and debt restructurings.
The attorneys of the Morris James Bankruptcy and Creditors Rights Group publish the Delaware Business Bankruptcy Report.
Posted on December 20, 2007 by Morris James LLP
Synova Healthcare Group, Inc. and its affiliated debtors filed petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The debtors filed these cases, over which Judge Christopher S. Sontchi is presiding, on December 18, 2007.
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Posted on December 18, 2007 by Morris James LLP
Delta Financial Corporation became the latest subprime lender casualty when it filed a Chapter 11 petition yesterday in the United States Bankruptcy Court for the District of Delaware. Related debtors Delta Funding Corporation, Renaissance REIT Investment Corp. and Renaissance Mortgage Investment Corporation also filed petitions in these cases that are being presided over by Judge Christopher S. Sontchi.
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Posted on November 20, 2007 by Morris James LLP
Effective at 5:00 p.m. Eastern time today, the Chapter 11 cases of Joan Fabrics Corp. and Madison Avenue Designs, LLC will convert to cases under Chapter 7 of the Bankruptcy Code. Yesterday, Judge Christopher S. Sontchi entered an order approving the debtors' motion to convert the cases.
In July, 2007, the Court approved a sale of substantially all of the debtors' assets. Since that time, the debtors engaged in the process of winding down their remaining operations. However, according to the debtors' motion convert the cases, the debtors' lenders did not consent to the debtors' further use of the lenders' cash collateral to administer the estates. The debtors therefore moved to convert the cases, and the Court approved the request.
Posted on November 20, 2007 by Morris James LLP
On November 19, 2007, Pope & Talbot, Inc., a Portland, Oregon-based concern, along with certain affiliates, filed cases under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. Judge Christopher S. Sontchi has been assigned to the cases.
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Posted on November 19, 2007 by Morris James LLP
On November 16, 2007, Judge Christopher S. Sontchi of the United States Bankruptcy Court for the District of Delaware entered an order dismissing the Chapter 7 bankruptcy cases of Hoboken Wood Flooring LLC and its affiliated debtors.
In a motion to dismiss the cases filed by the interim trustee of the debtor's estates, the trustee alleged that all the debtors' assets were encumbered by prior liens, and that there would be no funds with which to pay for the administration of the debtors' estates. Moreover, the trustee and the debtors' lender were unable to agree to a funding arrangement that would permit the trustee to be compensated. Pending before the Court at the time the cases were dismissed were motion of the prepetition lenders for relief from stay to foreclose on their collateral to prevent the trustee from using cash collateral.
The dismissal of these cases returns the debtors, lenders and other creditors to substantially the same position they were in before the debtors filed the cases on November 7, 2007.
Posted on November 8, 2007 by Morris James LLP
InPhonic, Inc., a provider of wireless services and devices, filed a Chapter 11 petition today in the United States Bankruptcy Court for the District of Delaware. InPhonic, along with its co-debtors, has requested that their cases be jointly administered under case number 07-11166. Judge Kevin Gross will preside over these cases.
InPhonic sells its services through various websites. Its stock is traded on the NASDAQ under symbol INPC. InPhonic stock closed at $0.06 today, falling from an opening price of $0.40, and from a 52 week high of $14.49.
InPhonic attributes today’s filing, in part, to a recent default under a prepetition credit agreement, as well as illiquidity and declining revenues caused by unprofitable marketing activities and an inability to maintain adequate inventory of the most popular wireless devices. InPhonic’s top creditor list reads like a who’s who of the nation’s top technology companies. MSN, Yahoo!, Google, America Online and Verizon all rank among the debtor’s top ten creditors.
Posted on November 8, 2007 by Morris James LLP
On November 7, 2007, affiliated debtors Hoboken Wood Flooring LLC, HWF Holdings LLC, SPI Floors LLC, Garden State Supplies LLC, and WFA, LLC filed petitions for relief under Chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. According to press accounts, Hoboken Wood Flooring is the largest independent wood flooring distributor in the United States. Judge Christopher S. Sontchi has been assigned to preside over these cases. The debtors report over $100 million in liabilities, and estimate that no distributions will be made to unsecured creditors.
UPDATE: The United States Bankruptcy Court for the District of Delaware dismissed these bankruptcy cases on November 16, 2007. Details are available here.
Posted on November 6, 2007 by Morris James LLP
On November 1, 2007, California mattress retailer Gallery Corporation filed a petition for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The debtor is a wholly-owned subsidiary of non-debtor Pacific Coast Mattress, Inc.
According to the affidavit that the debtor filed in support of its first-day motions, the debtor owns and operates 52 Mattress Gallery retail stores in Southern California. The debtor attributes the filing, in part, to fallout from record high gas prices, home foreclosures and the subprime lending crisis, which led to a downturn in the Southern California housing market. As a result, according to the debtor, fewer people have been buying and furnishing homes, severely affecting the debtor’s business.
The debtor will propose a sale of all its stock to Ortho Mattress, Inc. According to the debtor's affidavit, Ortho Mattress has made an irrevocable commitment to purchase the stock. The Honorable Kevin Gross is presiding over this case, which has been assigned case number 07-11628.
Posted on November 1, 2007 by Morris James LLP
Commercial Chapter 11 case filings in the United States Bankruptcy Court for the District of Delaware in 2007:
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Posted on September 18, 2007 by Morris James LLP
Aspen Executive Air, LLC, a Colorado-based company, has filed a Chapter 11 petition in the United States Bankruptcy Court for the District of Delaware. This case has been assigned to Chief Judge Mary F. Walrath under case number 07-11341. The debtor filed this case on September 14, 2007, but, as of the date of this writing, has not filed any motions in the case. According to the debtor's petition, Calim Venture Partners II
– a non-debtor – owns a 99% membership interest in the debtor.
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Posted on September 18, 2007 by Morris James LLP
The SCO Group, Inc. and SCO Operations, Inc. each filed voluntary petition for bankruptcy under Chapter 11 of the United States Bankruptcy Code. The SCO debtors filed their cases in Delaware, where Judge Kevin Gross will preside.
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Posted on August 22, 2007 by Morris James LLP
Fedders North America, Inc. and sixteen affiliated debtors, including its parent company, the Fedders Corporation filed petitions under Chapter 11 of the Bankruptcy Code in Delaware earlier today. Judge Brendan Linehan Shannon will preside over these cases.
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Posted on August 6, 2007 by Morris James LLP
This morning, in a filing that had been widely anticipated in the past two weeks, causing tremors in financial markets, American Home Mortgage Holdings, Inc. and certain of its affiliates filed petitions under Chapter 11 of the Bankruptcy Code in the United States District Court for the District of Delaware. Judge Christopher S. Sontchi has been assigned to these cases, which rank among the largest ever filed by a mortgage lender.
Unlike the string of subprime lender cases that have been filed this year, many of which filed in Delaware, this is a case of an Alt-A lender seeking bankruptcy protection. Alt-A loans, sometimes called “no doc loans,” are those made to borrowers with better credit scores, but with little or no income verification. In the wake of the recent subprime collapse, Alt-A lenders were predicted by many analysts to be highly vulnerable. According to press accounts, in recent weeks, other lenders with portfolios of Alt-A loans have moved to cut back on such transactions.
According to the debtors’ declaration in support of their petitions, these filings were brought on by rising default rates and falling real estate values that led to margin calls with respect to the debtors’ credit facilities. On Friday, August 3, 2007, the debtors terminated 6,500 employees in anticipation of these filings and the closing of the debtors’ businesses. As of December 31, 2006, the debtors report that they held a leveraged portfolio of mortgage loans and mortgage-backed securities of approximately $15.6 billion, while debtor American Home Mortgage Servicing, Inc. serviced approximately 197,000 loans with an aggregate principal amount of approximately $46.3 billion.
Posted on August 3, 2007 by Sandy Lewicki
This morning, Nutritional Sourcing Corporation - a holding company for affiliated debtors Pueblo International LLC and FLBN, LLC - along with these affiliates, filed petitions for Chapter 11 relief in the United States Bankruptcy Court for the District of Delaware. These cases have been assigned to the Honorable Peter J. Walsh.
According to press reports, debtors FLBN and Pueblo International operates the Pueblo chain of supermarkets in Puerto Rico and the U.S. Virgin Islands. According to press accounts, the St. Croix and St. Thomas, VI Pueblo supermarkets closed suddenly in recent weeks amid rumors of a sale of the chain to Whole Market Foods LLC, a St. Thomas-based company. According to Pueblo’s website, Pueblo was the first supermarket franchise in Puerto Rico and U.S. Virgin Islands, established in 1955. Pueblo also operates Blockbuster video stores in Puerto Rico and the Virgin Islands.
National Sourcing’s financial report for the fiscal year ending October 28, 2006 reports that rising oil prices and increased competition have had a deleterious effect on its performance. In recent years, the number of supermarkets and video stores operated by the debtors have decreased. This financial report also indicates that the debtors were highly leveraged.
Posted on August 2, 2007 by Morris James LLP
Northwest Suburban Community Hospital, Inc., a wholly-owned subsidiary of non-debtor Chatham Capital Corp., filed a petition for relief under Chapter 11 of the Bankruptcy Code by commencing a case in the United States Bankruptcy Court for the District of Delaware on July 30, 2007. This case, has been assigned to the Honorable Kevin Gross under case number 07-11018.
According to the debtor’s first day declaration, beginning in 1997, the debtor operated a treatment facility for morbidly obese patients at its facility in Belvidere, Illinois. However, because of declining business and revenue attributed by the debtor to increased competition and insufficient levels of reimbursement from Blue Cross Blue Shield of Illinois, the debtor ceased its treatment of obesity in January 2007. Since that time, the debtor has continued to operate an emergency standby department at its facility.
According to the declaration, the debtor’s liabilities exceed its assets by in excess of $3.7 million. The debtor is using the bankruptcy process to effect a sale of its facility. SwedishAmerican Hospital is the proposed stalking horse, with a bid of $5,750,000.
Posted on July 19, 2007 by Morris James LLP
On July 18, 2007, Oasys Mobile, Inc. filed a petition for bankruptcy under Chapter 11 of the Bankruptcy Code. Judge Christopher S. Sontchi of the United States Bankruptcy Court for the District of Delaware has been assigned to the case. The case number is 07-10961.
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Posted on July 17, 2007 by Sandy Lewicki
On July 13, 2007, Alliance Bancorp, Inc., Alliance Mortgage Investments, Inc. and Alliance Bancorp filed petitions under Chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware, becoming the latest in a series of residential mortgage lenders to file bankruptcy petitions in Delaware. However, unlike previous cases that have filed here, Alliance is planning to liquidate, rather than reorganize. Judge Christopher S. Sontchi has been assigned to this case.
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Posted on July 17, 2007 by Morris James LLP
On July 13, 2007, Virtual Fonlink, Inc. d/b/a Creditel filed a voluntary petition for relief under Chapter 11 of the Bankruptcy in the United States Bankruptcy Court for the District of Delaware. This case is pending before Chief Judge Mary F. Walrath.
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Posted on July 17, 2007 by Morris James LLP
On July 12, 2007, The Fitness Company and associated debtors filed petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. These cases have been assigned to Judge Peter J. Walsh.
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Posted on July 3, 2007 by Sandy Lewicki
On July 2, 2007, Exaeris, Inc. and Inyx USA Ltd. each filed petitions for bankruptcy under Chapter 11 of the Bankruptcy Code. The debtors filed a motion for joint administration of these cases under case number 07-10887. Judge Kevin Gross of the United States Bankruptcy Court for the District of Delaware has been assigned to these cases.
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Posted on July 2, 2007 by Sandy Lewicki
On June 29, 2007, MediCor Ltd., a Delaware corporation, and seven affiliated debtors filed voluntary petitions for bankruptcy under Chapter 11. Chief Judge Mary F. Walrath of the United States Bankruptcy Court for the District of Delaware has been assigned to these cases. The debtor’s petition described its businesses as “a global health care company that acquires, develops, manufactures and markets products primarily for esthetic, plastic and reconstructive surgery and dermatology markets.”
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Posted on June 18, 2007 by Morris James Delaware
On Monday, June 11, 2007, Tweeter Home Entertainment Group, Inc. and certain related companies filed voluntary Chapter 11 bankruptcy petitions in the United States Bankruptcy Court for the District of Delaware. An exhibit to the petition lists $258.6 million in total assets and $190.4 million in total debts. The Tweeter petition has been given case number 07-10787 and the case has been assigned to The Honorable Peter J. Walsh.
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Posted on June 6, 2007 by Morris James LLP
On June 1, 2007, Amp’d Mobile, Inc. filed a voluntary petition for relief under Chapter 11 in the United States Bankruptcy Court for the District of Delaware. Judge Brendan Linehan Shannon has been assigned to the case.
Amp’d, a provider of mobile phone and entertainment services, proposes to continue to operate out of cash collateral while continuing to seek debtor-in-possession financing. On June 5, 2007, Judge Shannon approved the debtor’s cash collateral motion on an interim basis, pending a final hearing on June 20, 2007.
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Posted on June 2, 2007 by Morris James LLP
On May 29, 2007, InSight Health Services Holdings Corp. (Case No. 07-10700) and InSight Health Services Corp. (Case No. 07-10701) filed voluntary petitions in the United States Bankruptcy Code for the District of Delaware for relief under Chapter 11 of the Bankruptcy Code. The debtors are proposing a prepackaged plan that effects a debt to equity swap to alleviate the burdens upon the debtors from extensive senior subordinated note debts.
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Posted on May 29, 2007 by Sandy Lewicki
On May 22, 2007, United States Trustee Kelly Beudin Stapleton appointed an Official Committee of Equity Security Holders in the Hancock Fabrics, Inc. case (07-10353 (BLS)). The members of the committee are Berg & Berg Enterprises LLC of Cupertino, California, Trellus Management of New York and Warren B. Kanders of Stamford, Connecticut. Sonnenschein Nath & Rosenthal of New York and Morris Nichols Arsht & Tunnell LLP of Wilmington, Delaware will serve as counsel to the equity committee.
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Posted on May 23, 2007 by Morris James Delaware
On May 21, 2007, The Holliston Mills, Inc., filed a chapter 11 bankruptcy petition in the United States Bankruptcy Court for the District of Delaware. The petition has been assigned case number 07-10687 and Chief Bankruptcy Judge Mary F. Walrath is presiding over the matter.
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Posted on May 14, 2007 by Morris James Delaware
Liberty Brands, LLC, a manufacturer of tobacco products with brand names including Always Save, Best Choice, Circle Z and Sonic (according to a May 8, 2007 Annual Approved Tobacco List posted on the website for the North Carolina Department of Justice
www.ncdoj.com/DocumentStreamerClient), filed a Chapter 11 bankruptcy petition in the United States Bankruptcy Court for the District of Delaware on Thursday, May 10, 2007. The petition has been assigned case number 07-10645. It lists assets of less than $10 million with liabilities falling between $10 and $50 million.
Posted on May 8, 2007 by Morris James Delaware
Mission Critical Enterprises, Inc., a full service design and consulting company according to its website, filed for Chapter 11 protection on May 4, 2007, listing estimated liabilities at $1 million or less.
Posted on May 1, 2007 by Morris James Delaware
Yesterday, April 30, 2007, Pac-West Telecomm, Inc. and certain related entities filed chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. The case has been assigned case number 07-10562. The petition lists assets of approximately $54 million and liabilities of approximately $66 million.
Other filing entities are PWT of New York, Inc., PWT Services, Inc., Pac-West Telecomm of Virginia, Inc., Installnet, Inc., and U.S. Net Solutions, Inc.
Posted on April 27, 2007 by Morris James Delaware
Just days ago, the MAS Litigation Trust, spawned from the bankruptcy of Meridian Automotive Systems, Inc., filed nearly 300 actions to recover avoidable transfers. The causes of action seek avoidance of preferential transfers under Section 547 of the Bankruptcy Code as well as avoidance of fraudulent transfers under Section 548. In addition, the complaints seek denial of claims under Section 502(d) and recovery of all avoided transfers under Section 550.
In what is sure to feel like double jeopardy, many of the defendants now being sued by Meridian also suffered Meridian's purchase of Cambridge Industries Holdings, Inc. out of its own bankruptcy, Case No. 00-1919 (Bankr. D. Delaware), only to be sued by the Cambridge liquidating trustee for preferences and fraudulent conveyances.
Posted on April 23, 2007 by Morris James Delaware
Judge Burton R. Lifland of the Bankruptcy Court for the Southern District of New York issued a decision on Thursday
(here) that will undoubtedly be the discussion topic at many future bankruptcy conferences. In his April 19, 2007 decision in the Dana Corporation bankruptcy, Judge Lifland held (i) there is no federal right of reclamation created by 11 U.S.C § 546(c), and (2) unless an individual reclamation claimant holds a claim in excess of a superior claimant's claim, the reclamation claim is valueless.
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Posted on April 18, 2007 by Morris James Delaware
At the hearing of First Day motions on April 17, 2007, Judge Peter J. Walsh authorized Custom Food Products, Inc. to borrow up to $25 million in interim post-petition DIP financing from Wachovia Capital Finance Corporation (inclusive of a letter of credit subfacility of $5 million and an over-advance subfacility of $3 million). A final hearing to approve the post-petition financing has been set for May 16, 2007 at 10:30 a.m.
Posted on April 16, 2007 by Morris James Delaware
Custom Food Products, Inc., located in Carson, California, filed a voluntary Chapter 11 petition on April 13, 2007 in the Bankruptcy Court for the District of Delaware. The petition has been assigned case number 07-10495. Judge Peter J. Walsh is presiding over this case. The petition lists between $1 million and $100 million in assets, and a similar amount of liabilities. The petition was filed by Klee, Tuchin, Bogdanoff & Stern LLP located in Los Angeles, California, and by the Wilmington, Delaware office of Pachulski Stang Ziehl Young Jones & Weintraub LLP.
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Posted on April 16, 2007 by Morris James Delaware
Today, Morris James LLP announced the publication of its bankruptcy law blog, the Delaware Business Bankruptcy Report,
www.debusinessbankruptcy.com, the first blog devoted entirely to the Delaware commercial bankruptcy practice.
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Posted on April 11, 2007 by Morris James Delaware
Joan Fabrics Corporation and Madison Avenue Designs LLC filed voluntary Chapter 11 petitions on April 10, 2007 in the Bankruptcy Court for the District of Delaware. They have been assigned case numbers 07-10479 and 07-10480, respectively. Each petition lists between $1 million and $100 million each in assets and liabilities. The petitions were filed by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. in Boston, Massachusetts, and by the Wilmington office of Pachulski, Stang, Ziehl Young, Jones & Weintraub LLP. Judge Christopher S. Sontchi is presiding over these cases.
UPDATE: These cases converted to Chapter 7, effective November 20, 2007 at 5:00 p.m. EST.
Posted on April 3, 2007 by Morris James Delaware
On Monday, April 2, 2007, New Century Mortgage Corporation and certain affiliated companies filed for bankruptcy protection in the United States Bankruptcy Court for the District of Delaware pursuant to chapter 11 of the Bankruptcy Code. New Century listed assets and liabilities each in excess of $100 million. New Century's counsel is O'Melveny & Myers, LLP in San Francisco, California. New Century's Delaware counsel is Richards, Layton & Finger, P.A.
