Barron & Newburger’s Bankruptcy Section Recognized By U.S. News & World Report

U.S. News & World Report included Barron & Newburger, P.C. in its Best Lawyers rankings. The firm was listed as Tier 2 in Bankruptcy Litigation for the Austin market. The firm was also listed as Tier 3 in Insolvency and Reorganization for the Austin market: https://bestlawfirms.usnews.com/profile/barron-newburger-p-c/overview/48449 These honors reflect positively upon the Bankruptcy Section’s ability…

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Manny Newburger and Steven Sather panelists on “What the Lexington Law Bankruptcy Means for the ARM Industry”

Many companies in the ARM industry have had run-ins with credit repair companies. Now the parent company for Lexington Law and CreditRepair.com has filed for bankruptcy protection. Manny Newburger and Stephen Sather will be two of the panelists discussing what this bankruptcy case means for the ARM industry in a webinar sponsored by AccountsRecovery.net. Manny…

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The Long Road Ahead? Puerto Rico Oversight Board Files Proposed Plan To Restructure The Commonwealth’s Debt And Other Claims

On September 27, 2019, three years after Congress passed PROMESA and two years after the most severe Hurricane in more than 100 years devastated Puerto Rico, The Financial Oversight and Management Board for Puerto Rico filed its proposed Plan to restructure $35 billion of debt and other claims against the Commonwealth of Puerto Rico, the Public…

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All Aboard! Navigating The Choppy Waters Of The Critical Vendor Doctrine

A fundamental rule in bankruptcy proceedings is that prepetition claims are not paid without a plan or separate order of the bankruptcy court. Orders allowing payment of prepetition claims prior to the payments approved by a bankruptcy plan are very rare. One of these rare possibilities is the request to deem a creditor “critical”. Because this practice…

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Pleading Fraudulent Transfers in the Wake of the U.S. Fifth Circuit’s Ruling In Life Partners Holding, Inc. v. Cowley

Introduction Rule 9(b) of the Federal Rule of Civil Procedure imposes a heightened pleading standard in cases where the Plaintiff alleges fraud or mistake. Compared to Rule 8(a), which requires a “short and plain statement of the claim,” Rule 9(b) demands pleading the “circumstances” of fraud “with particularity.” In the Fifth Circuit, when the Rule 9(b) pleading…

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To Arbitrate or Not to Arbitrate, That is the Question: Enforcing Arbitration Clauses in Bankruptcy

The Federal Arbitration Act, 9 U.S.C. §§ 1-307, represents a federal policy in favor of enforcing arbitration clauses. The Supreme Court has held that courts are generally obligated to enforce arbitration clauses absent a countervailing federal statute. Shearson/Am. Express, Inc. v. McMahon, 482 U.S. 220, 226 (1987). However, this policy inevitably comes into conflict with the Bankruptcy Code,…

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Every Rose Has Its Thorn: Involuntary Bankruptcy Petitions

On April 16, 2019 ruling in the U.S. Bankruptcy Court for the Northern District of Texas in the case of In re: Essential Financial Education, Inc. held that an involuntary bankruptcy petition filed under 11 U.S.C. §303 may not dismissed when it serves a legitimate purpose and is not merely an extension of a two-party dispute. The Essential Financial…

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Energy-Related Bankruptcies On The Rise: Protecting Oil & Gas Royalty Interests

With the recent uptick in energy-related bankruptcies expected to continue for the foreseeable future (in one prominent example, industry giant Weatherford has just filed for Chapter 11 protection), oil and gas royalty owners need to be on alert. Because companies in financial distress usually fall behind on royalty payments, royalty owners, usually one of the largest…

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Public Safety Comes First – Duties And Obligations Of Ombudsmen In Healthcare Bankruptcies

Healthcare bankruptcies present unique challenges in addition to financial restructuring. An immediate concern that must be addressed in these cases is the ability of the debtor to provide, and continue to provide, adequate services to existing and future patients. Having been involved in numerous healthcare matters filed under both Chapter 7 and Chapter 11, I know first-hand…

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Bondholders Beware? First Circuit Ruling’s Potential Adverse Impact on Puerto Rico’s Long-Term Restructuring Prospects

Having practiced in Puerto Rico for nearly a decade, including being involved heavily in the ongoing Title III PROMESA proceedings, the recent ruling handed down by the First Circuit could prove to be the most impactful for the Island’s long term restructuring prospects and its access to the Bond markets. The controversial ruling, which pertains to…

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