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Current decisions, news and commentary regarding commercial bankruptcy cases in Delaware.

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Mining and Exploration Company, Santa Fe Gold Corporation, Seeks Protection in Chapter 11

On August 26, 2015, Santa Fe Gold Corporation and three affiliates filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware.  The cases are docketed as case no. 15-11761, and have been assigned to The Honorable Mary F. Walrath. More ›

Best Lawyers® 2016 Recognizes 21 Morris James Attorneys

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Twenty-one Morris James attorneys in twenty-six practice areas were selected by their peers for inclusion in The Best Lawyers in America 2016 edition. Additionally, three of those attorneys were named “Lawyer of the Year” for their respective practices, including Richard Galperin for Personal Injury Litigation – Defendants, Gretchen S. Knight for Family Law, and Mark D. Olson for Tax Law.  More ›

Hercules Offshore, Inc. and 14 Affiliates File a Prepackaged Chapter 11 Case

Today, August 13, 2015, Hercules Offshore, Inc. and 14 of its affiliates filed a prepackaged chapter 11 bankruptcy case in the United States Bankruptcy Court for the District of Delaware.  Hercules and its affiliates are, according to the petition, providers of shallow-water drilling and marine services to the oil and natural gas exploration and production industry globally.  The cases have been assigned to the Honorable Kevin J. Carey and are docketed as case no. 15-11685. More ›

Electronics Recycler, ZLOOP, Inc., and Two Affiliates File Chapter 11 Cases

On August 9, 2015, ZLOOP, INC., and two affiliates, Zloop Knitting Mill LLC and Zloop Nevada, LLC filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware.  The cases have been assigned to The Honorable Kevin J. Carey and are docketed as case no. 15-11660.  Zloop's Chairman and CEO, Robert M. Boston, filed an affidavit in support of the petitions. More ›

Corporate Resource Services, Inc. and Seven Affiliates File Chapter 11 Petitions As Part of Ongoing Wind Down

On July 23, 2015, Corporate Resource Services, Inc. and 7 affiliates filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware.  The cases are docketed as case no. 15-11546, and are assigned to The Honorable Mary F. Walrath.  The filing appears to be the final steps in an orderly wind down of the companies that began in February, 2015. More ›

Delaware USDC Analyzes Contract Integration; Remands to Bankruptcy Court for Debtor to Assume or Reject One Integrated Agreement

On July 13, 2015, the United States District Court for the District of Delaware issued a memorandum opinion in Huron Consulting Services, LLC v. Physiotherapy Holdings, Inc. et al., Civ. No. 14-693-LPS.  Chief Judge Leonard P. Stark authored the opinion which addressed whether a series of agreements was integrated, and whether a debtor was required to assume all agreements in their entirety or could selectively assume certain of the agreements, but not others. More ›

Signal International, Inc. and Affiliates File Chapter 11; CFO Says Filing And Quick Sale Will Resolve 7 Years of Litigation And Preserve Value

On July 12, 2015, Gulf Coast marine service operator Signal International, Inc. and four affiliates, including Signal Ship Repair, LLC, Signal International, LLC, Signal International Texas GP, LLC and Signal International Texas, L.P. filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware.  The cases are docketed as case no. 15-11498, and have been assigned to The Honorable Mary F. Walrath. More ›

Bahamas Resort Baha Mar Files For Bankruptcy in Delaware

On June 29, 2015, Baha Mar Ltd, the development company behind a $3.5 billion Bahamian resort and its affiliated debtors, filed for chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in the U.S. District Court of Delaware.  Attached here is a copy of the petition.  Debtors offer the declaration of Thomas M. Dunlap in support of their first day pleadings.  A copy of the first day declaration is here.   More ›

Third Circuit Approves Use Of Structured Dismissals Of Chapter 11 Bankruptcies, but Rarely

On May 21, 2015, the United States Court of Appeals for the Third Circuit approved the settlement and dismissal of chapter 11 bankruptcy cases through a structured dismissal in rare instances.  See Official Committee of Unsecured Creditors v. CIT Group/Business Credit Inc., Case No. 14-1465, -- F.3d --, 2015 WL 2403443 (May 21, 2015).  In the case before it, the Court approved the structured dismissal of the Chapter 11 bankruptcy case even where the dismissal called for a distribution that did not specifically adhere to the priority scheme set forth in Bankruptcy Code section 507. More ›

Rare-Earth Producer Molycorp. and North American Subsidiaries File Chapter 11

On June 25, 2015, Molycorp, Inc., the U.S. producer of rare earths, and its North American subsidiaries filed for chapter 11 bankruptcy protection.  A copy of the bankruptcy petition is attached here.   Debtors offer the declaration of Michael F. Doolan in support of their requested first day motions, a copy of which is attached hereMore ›

Storied Gun Maker Colt Enters Chapter 11 In Delaware; Seeking A Quick Sale

On Sunday, June 14, 2015, Colt Holding Company LLC and 9 affiliates, including Colt Defense, LLC filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware.  The case is docketed as case no. 15-11296 and has been assigned to The Honorable Laurie Selber Silverstein.  Filed in support of the petition is the Declaration of Keith A. Maib, the Chief Restructuring Officer of Colt Defense, LLC. More ›

Boomerang Tube, LLC And Two Affiliates File Chapter 11 Cases

On June 9, 2015, Boomerang Tube, LLC and two affiliates, BTCSP, LLC and BT Financing, Inc., filed chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware.  The cases has been assigned to The Honorable Mary F. Walrath and are docketed as case no. 15-11247. More ›

Fourteen Morris James Attorneys Recognized in Chambers USA 2015

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Morris James LLP is pleased to announce that fourteen attorneys in six separate practice areas have been ranked among the leading Delaware lawyers in the 2015 edition of Chambers USA: America's Leading Lawyers for Business.  The Chancery, Intellectual Property and Labor & Employment practice areas also received recognition from Chambers USA. More ›

Prepared Food Manufacturer, Golden County Foods, Inc., Cooks Up A Chapter 11 Case

On Friday, May 15, 2015, Golden County Foods, Inc. (“GCF”), a business that manufactures prepared foods, filed a voluntary chapter 11 petition in the United States Bankruptcy Court for the District of Delaware.  It was joined by two affiliates, GCF Franchisee, Inc. (“GCFF”)and GCF Holdings II, Inc. (“Holdings”).  The cases are docketed as case no. 15-11062 and have been assigned to The Honorable Kevin Gross. More ›

Court of Chancery Clarifies Creditors' Rights

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A just-issued Court of Chancery decision clarifies, and possibly expands, creditors' rights. In 2007, the Delaware Supreme Court ruled that a corporation's creditors may sue its board of directors for violating its fiduciary duties, but only after the corporation became insolvent, in North American Catholic Educational Programming Foundation v. Gheewalla, 930 A.2d 92 (Del. 2007). While creditors continued to be unable to sue directly, Gheewalla did permit them to file derivative suits in those circumstances. For insolvent entities, D&O insurance may provide a previously unavailable source of funds to pay creditors. Hence, Gheewalla was an important decision. More ›