Articles Tagged with lawyers

Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Do I need an attorney to file bankruptcy?”

Most judges—including bankruptcy judges—rely on lawyers at least in part to prepare orders and judgments. Lawyers drafting an order in a case involving a now-closed Miami-area fashion mall were recently sanctioned by a judge whose ire was provoked by the botched filing of the draft order.

Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Do I need an attorney to file bankruptcy?”

 

Thought your legal bills were high? Copper-mining company Ascaro LLC has litigated its $5 million legal tab with law firm Baker Botts all the way to the United States Supreme Court. The high court will decide if and how much Ascaro has to pay.

Dollar signs Mecklenburg Debt Lawyer Charlotte Chapter 7 AttorneyThe dispute between Ascaro and Baker Botts, at its essence, is about whether Baker Botts can be compensated for defending its own fees.

Bankruptcy courts have the final say on how much advisers called in to work out financial restructuring details in a bankruptcy case get paid. Since the money used to pay advisers could be used to pay creditors, anyone—including debtors and creditors—can challenge fee awards.

Baker Botts represented Ascaro in what the Wall Street Journal called a “contentious Chapter 11 case” that ended with a $6 million judgment against Ascaro for improperly transferring a high-value asset to a parent company shortly before it declared bankruptcy. After the judgment, Ascaro agreed to pay its creditors in full.

Continue reading

Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What is Chapter 11 Bankruptcy?”

 

The number of businesses that filed for bankruptcy in the State of Texas in 2014 declined by twenty percent compared with 2013, according to Androvett Legal Media. Business bankruptcy filings in the Lone Star State are down by more than half over the past five years.

Business 101 Mecklenburg Bankruptcy Lawyer North Carolina Chapter 7 AttorneyAs the United States’ economy sputtered into and out of recession in 2009 and after, the Lone Star State’s economy has boomed, leading some pundits to argue that Texas has been propping up the nation’s economy as a whole.

The state’s booming economy may be reducing bankruptcies, but it was not the booming economy that had a gathering of some 100 Energy Future Holdings advisers gasping in a boardroom last month. The gasps followed the revelation by former American Airlines general counsel Gary Kennedy that the airline’s daily legal bills in its recent bankruptcy ran to about $500,000 per day. Kennedy said businesses should seek alternatives to bankruptcy because, he said, the costs of a business bankruptcies have spiraled out of control.

Martin Sosland, a partner at Weil, Gotshal & Manges—a Dallas, Texas-based law firm—did not dispute that business bankruptcies can be expensive, but he cited the American Airlines bankruptcy as a perfect example of how a Chapter 11 proceeding can help a struggling business “restructure debt, renegotiate union contracts,” and merge or consolidate business operations in a manner that returns the business to profitability. Sosland said the airline’s creditors were paid 100 cents on the dollar and that American’s stock skyrocketed from 31 cents at the time of the bankruptcy filing to over $50 today.

Continue reading