Harvey Miller, the lawyer guiding Lehman Brothers Holdings Inc. through the biggest-ever U.S. bankruptcy, sipped a cappuccino at a tourist-filled cafe near Manhattan’s Central Park and reflected on how his client’s collapse five years ago went from unthinkable to inevitable.
Blockbuster Inc. ’s stock must be worth something, according to Ron Krenn, a 48-year-old day trader in Daytona Beach, Florida, who hopes to profit on the equity of what was once the world’s largest movie rental chain, seven months after it filed for Chapter 11.
Bankrupt companies’ costs rose 9.5 percent a year, or four times the inflation rate, as judges approved almost 99 percent of the fees demanded by lawyers and other professionals, according to University of California, Los Angeles professors Lynn LoPucki and Joseph Doherty.
U.S. Representative John Conyers Jr., chairman of the House Judiciary Committee, introduced a bill on June 10 that would take away some of BP Plc’s bankruptcy options, should it choose reorganization to resolve liabilities for the oil spill in the Gulf of Mexico.
White & Case LLP hired mergers and acquisitions lawyer Daniel Dufner as a partner in the firm’s New York office. Dufner, who joins from Linklaters LLP, was previously a partner at White & Case from 2004 to 2009. Dufner represented WellPoint Inc. in its $4.9 billion acquisition of Amerigroup Corp. He has also represented EchoStar Corp., Dish Network Corp. and Blockbuster Entertainment Corp., the firm said.
BP Plc may saddle potential buyers of its assets with lawsuits as Europe’s second-biggest oil company tries to raise money to pay claims that may reach $100 billion from the Gulf of Mexico spill, lawyers said.
Barclays Plc is set to defend itself against Lehman Brothers Holdings Inc. ’s claim that it should pay as much as $11 billion after allegedly making an undisclosed “windfall” on its purchase of bankrupt Lehman’s brokerage.
BP Plc , whose potential liability for the Gulf of Mexico oil spill has lawmakers and analysts raising the specter of bankruptcy, would be unlikely to avoid paying claims by seeking court protection, restructuring experts said.