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Georgia Bankruptcy Blog

Category Archives: Miscellaneous Cases

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Creative Loafing Parent Files For Chapter 11

The parent of Creative Loafing, the alternative newspaper/magazine, filed a Chapter 11 petition today. From the company – September 29, 2008 at 1:11 pm by John F. Sugg in Inside CL, News Creative Loafing Inc. — which owns alternative weekly newspapers in Chicago, Washington, Tampa, Charlotte and Sarasota, as well as Atlanta — today filed… Continue Reading

Barbeques Galore, With Three Metro Atlanta Stores, Files for Bankruptcy in California And Will Liquidate

From  Barbeques Galore Inc., a closely held retailer of barbeque grills and accessories in the U.S. and Australia, filed for bankruptcy, citing a decline in home sales, a “trigger” for its grill sales.  The petition for Chapter 11 protection, filed Aug. 15 in U.S. Bankruptcy Court in California listed assets and debts of $10… Continue Reading

Delaware Bankruptcy Court: Directors’ Duties To Financially Distressed Companies

Bridgeport Holdings Inc. Liquidating Trust v. Boyer (In re Bridgeport Holdings, Inc.), 2008 WL 2235330 (Bankr. D. Del. May 30, 2008). Summary:  Liquidating trust brought adversary proceeding against Chapter 11 debtors’ former officers and directors and restructuring professional appointed to position of chief operating officer (COO), asserting claims for breach of fiduciary duty and lack… Continue Reading

Discount Clothing Chain Goody’s Family Clothing Files Chapter 11 – Will Close Nine Georgia Stores

From the Atlanta Business Chronicle – Discount clothing retailer Goody’s Family Clothing Inc. has filed for Chapter 11 bankruptcy protection blaming pressures from tightening credit markets, strain on merchandise flow and dozens of underperforming stores in the chain. Knoxville, Tenn.-based Goody’s said it will close 69 underperforming stores, consolidate distribution centers by closing one facility… Continue Reading

Cheerwine Coming Back To Atlanta

Obviously not bankruptcy related, but former North Carolinians will be interested in Cheerwine coming back to Atlanta (the article incorrectly says it is making its debut – it was sold in Atlanta grocery stores a few years ago). Tar Heels, rejoice! Cheerwine, one of our state’s indigenous delicacies, is now available in the ATL."Our first… Continue Reading

Delaware Bankruptcy Court: Breach of Fiduciary Duty Claim Was Not Disguised Deepening Insolvency Claim; Aiding And Abetting Fraudulent Conveyance; In Pari Delicto

From the Delaware Bankruptcy Blog, comes the case of  Miller v. McCown De Leeuw & Co., Inc. (In re Brown Schools), No. 05-10841, Adv. No. 06-50861 (Bankr. D. Del. April 24, 2008). Duty of care violations more closely resemble causes of action for deepening insolvency because the alleged injury in both is the result of… Continue Reading

Delaware Chancery Court Holds Directors Did Not Breach Fiduciary Duty To Creditors By Filing Chapter 11 Petition

From the Delaware Litigation Blog comes the case of  Nelson v. Emerson, 2008 WL 1961150 (Del. Ch., May 6, 2008) (the opinion is linked from the Delaware Litigation Blog), where the one major secured creditor alleged the directors of the corporation breached their fiduciary duty to the creditor by filing a Chapter 11 petition and… Continue Reading

Bankruptcy Judge Slams Firm For Conflict Of Interest

A warning for firms that have unpaid pre-petition fees  when they represent a Chapter 11 debtor.  From –  In a stinging 38-page decision, Southern District of New York Bankruptcy Judge Arthur J. Gonzalez denied Windels Marx Lane & Mittendorf any compensation for its work on the bankruptcy of hip-hop media company Source Enterprises Inc. The… Continue Reading

Employment Applications In Sharper Image Bankruptcy

Jonathan Hayes at the BankruptcyProf Blog discusses the employment applications in the Sharper Image Chapter 11 case filed recently in Delaware.    The Weil Gotshal firm disclosed that it received a $400,000 retainer of which about $376,000 was used up prepetition.  (Sharper Image had $700,000 in the bank the day it filed the petition)  The hourly… Continue Reading

Sharper Image Files Chapter 11 In Delaware

I have never been a Sharper Image shopper, but apparently not as many other people are these days.  The company filed a Chapter 11 petition in Delaware.  Litigation involving Sharper Image’s Ionic Breeze air purifiers resulted in “negative publicity” and a decrease in total revenue, according to court papers. The company has lost money in… Continue Reading

North Carolina Supreme Court Holds That Arbitration Clauses In Consumer Loan Agreements Are Unconscionable

The Womble Carlyle Construction Industry Blog reports a landmark decision in North Carolina, in which the N.C. Supreme Court held that arbitration clauses in consumer loan agreements are unconscionable and unenforceable.  The case is Tillman et al v. Commercial Credit Loans, Inc. et al, No. 360A06 (January 25, 2008). From the Womble Blog – Specifically, the Court was… Continue Reading

9th Circuit BAP – Following US Supreme Court Opinion In Travelers, Unsecured Creditors Can Recover Post-Petition Attorneys Fees

In a prior post, I discussed the Supreme Court case Travelers Casualty & Surety v. Pacific Gas & Electric (05-1429), (opinion available here) wherein the Supreme Court reversed the Ninth Circuit and held that the Bankruptcy Code does not forbid a claim for attorneys fees where such fees are provided for in a contract, even where the fees… Continue Reading

Yet Another Subprime Lender Files Bankruptcy: Delta Financial Corp. Files Chapter 11 In Delaware

By: Scott B. Riddle, Esq. The latest casualty in the subprime world is Delta Financial, which filed a Chapter 11 petition in Delaware yesterday.  Delta stopped originating loans and fired 1,300 of its 1,350 workers since August, according to papers filed with the U.S. Bankruptcy Court in Delaware. Delta will consider reorganization but will likely… Continue Reading

Can A Lawyer Be Sued In Another State For Giving Advice To A Business Incorporated In That State?

It is common for corporate lawyers in Georgia (and all other states) to provide legal advice to entities incorporated in Delaware.  Often that advice leads to corporate documents being filed with the Delaware Secretary of State.  Does that advice lead to the out of state lawyer being subject to personal jurisdiction in Delaware? The answer may be "yes."… Continue Reading