Chapter 11

Delaware Bankruptcy Judge Rejects Effort to Circumvent Supreme Court’s Asarco Decision

02/09/16

The Supreme Court’s decision last term in Baker Botts v. Asarco, in which the Court ruled that professionals that are paid from a debtor’s bankruptcy estate cannot be compensated for time spent defending their fee applications, continues to rankle bankruptcy practitioners.  Moreover, a recent decision in a Delaware bankruptcy case shows that the impact of Asarco will not be easily circumvented.

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Were the Energy Future Holdings and Caesars Chapter 11 Cases Just Saved by K Street Lobbyists?

12/29/15

Bankruptcy and restructuring professionals usually do not need to be political junkies.

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Cubic Energy Files a Prepack Chapter 11 Petition

12/14/15

On Friday, December 11, 2015, Cubic Energy Inc. and affiliated debtors (“Debtors” or “Cubic”) filed a voluntary Chapter 11 with the United States Bankruptcy Court for the District of Delaware.  This is a prepack bankruptcy, with Cubic filing a proposed Chapter 11 plan of reorganization and disclosure statement on the same day it filed for bankruptcy.

In addition, Cubic filed the standard “first-day” motions, including a motion to approve use of cash collateral, motion to pay employee wages, motion to appoint claims agent, and a motion to schedule a confirmation hearing, etc.

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Fresh & Easy, LLC Files for Bankruptcy in Delaware

11/02/15

On October 30, 2015, Fresh & Easy, LLC (“Debtor”) filed a petition for bankruptcy under Chapter 11 of the United States Bankruptcy Code.  Exide filed for bankruptcy in the United States Bankruptcy Court for the District of Delaware. At the time of its bankruptcy filing, Fresh & Easy had 97 stores in California, Arizona and Nevada.

Chief financial officer Peter McPhee signed court documents indicating the company has assets of $10 million to $50 million and debts of between $100 million and $500 million.

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Energy Future Holdings – Kicking a Very Large Can Down the Road

10/01/15

Energy Future Holdings (“EFH” or “Debtors”) has cleared all of the preliminary hurdles in its path as it moves towards the confirmation of its plan of reorganization (the “Plan”). Last week Judge Christopher Sontchi of the United States Bankruptcy Court for the District of Delaware approved the Debtors’ disclosure statement in support of the Plan, authorized the Plan to be distributed to creditors for voting purposes, and scheduled the hearing on Plan confirmation to begin on November 3.

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Santa Fe Gold Corp. Files for Bankruptcy

08/31/15

On August 26, 2015, Santa Fe Gold Corporation and three of its subsidiaries, filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware (the “Court”).  The case no. is 15-11761 and is pending before the Honorable Mary F. Walrath.

The Debtors are continuing in possession of their properties and are managing their businesses, as debtors in possession, in accordance with the applicable provisions of the Bankruptcy Code and orders of the Court.

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Baker Botts v. Asarco: The Supreme Court Shows Again That It Really Doesn’t Understand Corporate Bankruptcy Cases

06/18/15

The Supreme Court has not handled its recent major bankruptcy decisions well. The jurisdictional confusion engendered by its 2011 decision in Stern v. Marshall was only partially clarified by this term’s opinion in Wellness International Network v. Sharif.

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Frederick’s of Hollywood Files Chapter 11 Bankruptcy in Delaware

04/21/15

On April 19, 2015, Frederick’s of Hollywood, Inc., and its affiliated companies (the “Debtors” or “Frederick’s”) filed chapter 11 bankruptcy petitions in the United States Bankruptcy Court for the District of Delaware.  At the time of the bankruptcy filing, the Debtors held assets in the amount of $36.5 million, and debts in the amount of $106 million.

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