​Bankruptcy/Corporate Restructuring
OpenAI, the maker of ChatGPT, is on track to spend at least $7 billion by 2024, sparking rumors that the startup could be headed for bankruptcy. Read the article here.
 
Corporate
On August 28, 2024, the State of New York passed the Freelance Isn’t Free Act, which provides material protections for freelance workers as well as significant requirements for the employers that utilize them. See this article, written by M&B’s Steven Roz and Pearl Shah Dalsania, for more information.
 
Litigation
On July 8, 2024, the Southern and Eastern Districts of New York issued a Notice to the Bar inviting the public to comment on proposed changes to their Joint Local Rules. Comments were due by October 6, 2024. See this article summarizing the proposed changes, written by M&B’s Cynthia Botello and Ephraim Glatt.
 
Real Estate
​On December 1, 2025, a new reporting rule issued by the U.S. Treasury Department and aimed at preventing money laundering in residential real estate transactions will go into effect for all-cash and non-financed transactions. Read about it here.

​We’re seeking talented and friendly attorneys.

​If you are interested in working at M&B, please contact ​[email protected].

In September, some members of the M&B team got together at Swingers Indoor Mini Golf in NYC! Fun TGITs are par for the course at the firm. So are bad puns.

​In July, M&B welcomed Robert Kern as Counsel in the Corporate/M&A practice group. 

​Congratulations to Cynthia Botello, who earned her Certified Information Privacy Professional/United States (CIPP/US) certification demonstrating comprehensive understanding of both government-specific privacy regulations and broader privacy laws applicable to public and private sectors in the U.S. 

Bankruptcy/Corporate Restructuring
Veronique Urban has been selected to serve as a member of the Local Bankruptcy Rules Committee for the Eastern District of New York Bankruptcy Court. The Committee is working to evaluate and propose amendments to the existing Local Rules for presentation to the EDNY Bankruptcy Judges and, ultimately, to the District Court.
 
Ilana Volkov obtained a favorable settlement of a significant preference complaint in the Bed Bath & Beyond bankruptcy case in New Jersey.
 
Ilana Volkov represented Dewar Capital, LLC, a remnant asset purchaser, in its successful quest to upset the “stalking horse” purchaser and become the winning bidder of the estate’s remnant assets, in a Chapter 7 case in Delaware. 
 
Corporate
Mona Kaplan and Pearl Shah Dalsania advised and counseled a client through an acquisition of a distressed grocery store.
 
Mona Kaplan and Pearl Shah Dalsania closed the sale of a shipping optimization company, one of a number of transactions closed this quarter that demonstrate a continued uptick in deal activity. 
 
Mona Kaplan closed amendments to a client’s $8 million credit facility.
 
Mona Kaplan and Steven Roz advised two different residential building management companies in entering binding letters of intent for the companies’ mergers.
 
Robert Kern assisted a client in the negotiation and finalization of an employment agreement for its new CEO.
 
Menachem Bensinger and Robert Kern negotiated the extension of the maturity date of a secured promissory note with respect to a $10 million loan.
 
Litigation
Congratulations to McGrail & Bensinger’s litigation team on an appellate victory in the New York Appellate Division, Second Department!  Gabby Vázquez led the team on the brief and at oral argument, which recently resulted in a ruling in our client’s favor, including an award of costs. You can read the full decision here. Our litigation team is looking forward to continuing to represent our clients in their important appeals.
 
Ephraim Glatt secured a favorable settlement for a real estate investment group in a dispute with a vendor.
 
Ephraim Glatt and Cynthia Botello assisted a medical supplies vendor in obtaining default judgments against three purchasers in the healthcare industry.
 
Cynthia Botello and Katherine McGrail successfully argued a motion for reconsideration, resulting in the client being granted summary judgment.
 
Katherine McGrail and Sophia Herbst successfully briefed and argued a motion to dismiss, which narrowed a defendant’s counterclaims, and a motion to declassify documents that had been previously marked as attorneys’ eyes only.
 
Real Estate
​Joshua Hager represented the sellers in a $12.9 million sale of a Colorado nursing home facility and closed a series of sales to complete the transfer of a $7.5 million portfolio of properties located in New Jersey.

Bankruptcy/Corporate Restructuring
On April 17, 2024, Senator Richard Durbin (D-Ill.) introduced legislation to extend the $7.5 million Subchapter V debt limit to 2026, but the bill was blocked, and the debt limit has reverted to $2.75 million. Read more here.
 
The Street recently ranked the most noteworthy business bankruptcy filings of 2024-- take a look at the list here to see if any surprise you.
 
Corporate
On April 23, 2024, the FTC announced its Final Non-Compete Clause Rule, which prohibits post-employment non-compete clauses between employers and their workers (employees and independent contractors included). The new rule, which is effective as of September 4, 2024, does not explicitly ban non-disclosure agreements or customer/employee non-solicitation agreements, nor does it prohibit employers from enforcing non-compete clauses entered in connection with the bona fide sale of a business entity.  Read more here.
 
Litigation
The Supreme Court of New York County declined to consider a petition supported by an affirmation from a New York attorney due to its failure to meet the updated standards outlined in CPLR 2106. Specifically, the Court pointed out that the affirmation merely stated that the attorney’s statements were made “under penalty of perjury,” without “acknowledging the laws of New York and the possibility of fines or imprisonment.” Read more here.
 
Real Estate
In a cautionary tale about the importance of filing precise UCCs, a $534 million foreclosure was postponed as the debtor’s auction plan did not meet “standards of commercial reasonableness.” Read the full article here
 
One of the biggest roadblocks to solving New York City’s housing and office crises by transforming obsolete office buildings into residential units may be limited by zoning rules which apply to such conversions. Read more here.

We’re seeking talented and friendly attorneys.

​If you are interested in working at M&B, please contact ​[email protected].

​M&B held its annual family BBQ on June 2nd at the New York Aquarium. The team and their guests enjoyed great food, company, and music, all from a picturesque rooftop space! 

​In May, Allison Furman joined the firm as Of Counsel in the Real Estate and Litigation practice groups.

​In June, M&B once again proudly co-sponsored Runway for Research, an annual event hosted by Tina’s Wish, an organization that raises funds and awareness for the early detection and prevention of ovarian cancer (Ilana Volkov pictured below left). 

Bankruptcy/Corporate Restructuring
In June, Ilana Volkov and Veronique Urban successfully defended a client whose alleged exposure exceeded $3.1 million against preference litigation in the Revlon bankruptcy cases. Ilana Volkov is representing the landlord of Sam Ash Music Corporation’s headquarters and a landlord in the Red Lobster Chapter 11 cases.
 
Corporate
Mendy Bensinger, Jason Bitsky, and Pearl Shah Dalsania structured and documented a joint venture relating to a $30 million investment in real property. 
 
Mona Kaplan and Steven Roz are representing a client in connection with regulatory compliance of baby products, including pacifiers and infant loungers.   
   
Litigation
In April, Ephraim Glatt secured a favorable settlement for a client in the healthcare sector in a dispute with a vendor.
 
In April, Gabby Vázquez, successfully argued before the Appellate Division – Second Department in Brooklyn  –  for the dismissal of an appeal from an interlocutory decision of the New York Supreme Court in a case involving the petition for dissolution of a religious institution.
 
In May, Patrick Train-Gutiérrez and Cynthia Botello successfully defeated a motion to enforce a settlement, and Patrick Train-Gutiérrez and Sophia Herbst secured a favorable settlement for a client in the healthcare sector in a dispute with a landlord.
 
Real Estate
In April, Joshua Hager, Steven Roz, and Devori Goodman closed a $35 million commitment on behalf of a hotel investment group for the national expansion of a long-term stay hotel franchise.
 
In May, Joshua Hager and Devori Goodman represented a private investment group in the sale of a $17 million multi-family complex consisting of over 130 units, which sale included navigating complex structuring to accomplish full 1031 benefits for some seller parties and distributions to other parties.

Bankruptcy/Corporate Restructuring
​The Bankruptcy Court for the District of New Jersey is the new hot spot for Chapter 11 bankruptcy filings and the M&B Bankruptcy and Corporate Restructuring team is available for all your needs. Notable recent filings in New Jersey in which M&B attorneys are involved for clients include Bed Bath and Beyond, Rite Aid, WeWork, David’s Bridal, Cyxtera, and Bowflex.
 
Corporate
New York’s Governor Kathy Hochul signed a bill in December 2023 (further amended on March 4, 2024) enacting the New York LLC Transparency Act (NYLTA), effective January 1, 2026. The NYLTA amends New York’s LLC Law to require the disclosure of personal information about an LLC’s beneficial owners. This article has the details.
 
Litigation
The New York Times recently sued OpenAI and other tech companies over alleged copyright infringement. OpenAI has fired back, alleging that NYT “hacked” ChatGPT to generate misleading evidence for its lawsuit.  Read this article for more information.
 
Real Estate
The National Association of Realtors (NAR) has resolved multiple claims against the group and brokers nationwide arising from alleged artificially high commissions. Under the settlement, the realtor group will pay $418 million over the course of about four years. Read more here.

We’re seeking talented and friendly attorneys.

​If you are interested in working at M&B, please contact [email protected].

Gabby Vázquez attended the Mentoring for Women 2024 Conference hosted by the West Des Moines Chamber of Commerce. 

M&B welcomed Tricia Avidano to the team as its Legal Recruiting and Marketing Manager.

Congratulations to Sophia Herbst, who has been selected to participate in the prestigious AAA Higginbotham Fellows Program Class of 2024.

Bankruptcy/Corporate Restructuring
Dave McGrail is representing a local airline in its out-of-court restructuring.
 
Ilana Volkov is local counsel to the DIP lender in the Bowflex, Inc. bankruptcy cases pending in the Bankruptcy Court for the District of New Jersey.
 
Ilana Volkov and Veronique Urban are representing a Chapter 7 bankruptcy trustee as special litigation counsel in SAR Floors, LLC, which is pending in the Bankruptcy Court for the Middle District of Pennsylvania.
 
Corporate
In February, Menachem Bensinger, Jason Bitsky, Pearl Shah Dalsania, and Steven Roz acted as corporate counsel in a client’s purchase of an innovative machine automation company.
 
Dave McGrail, Jason Bitsky, and Pearl Shah Dalsania are advising a client that is forming a new motion picture production company, structuring the transaction and preparing the documentation for it to acquire the rights to, produce, and distribute a feature film.
 
Litigation
Led by Gabby Vázquez, the MB litigation team, including Ephraim Glatt, Patrick Train-Gutiérrez, and Kate McGrail, assisted clients AirBridgeCargo Airlines, LLC, the largest Russian cargo airline, and its parent company, Volga-Dnepr Logistics, B.V., in the resolution of a dispute with BOCA Aviation Limited relating to the lease termination and possession of two Boeing Model 747-8F aircraft that were impacted by the U.S. and International Sanctions on Russia. The resolution included a full satisfaction of all judgments in the SDNY and the voluntary dismissal of two Second Circuit Appeals. 
 
In February, Kate McGrail, Patrick Train-Gutiérrez, and Cynthia Botello successfully argued a motion to compel in New Jersey State Court. The court not only granted the motion but also awarded attorneys' fees.
 
In February, Patrick Train-Gutiérrez, Kate McGrail, and Sophia Herbst successfully defeated a motion to dismiss in New York State Court.
 
In March, Ephraim Glatt successfully defeated a motion in seeking leave to amend a complaint in federal court.  
 
Real Estate
In March, Joshua Hager and Devori Goodman represented the seller of an $18.1 million residential apartment complex in Michigan, which included an eleventh-hour 1031 structure. 
 
In January, Joshua Hager and Devori Goodman represented the seller in the sale of a complex $12 million 65-unit portfolio located in northern New Jersey.

Bankruptcy/Corporate Restructuring
2023 saw 591 U.S. corporate bankruptcy filings, the highest number since 2020. Retail bankruptcies are expected to continue to climb through 2024, but experts say the second half of 2024 should see a decrease in overall corporate bankruptcy filings. This article has the details.
 
While AI deals may be booming, the rest of the venture capital world saw a sharp decline in deals. Venture capital deals in the United States fell to their lowest levels since 2019. This article has the details.
 
Corporate
With the recent boom in cryptocurrency, many states are contemplating making changes to their Uniform Commercial Codes by adopting new Article 12 and/or amending Article 9 to account for digital assets. This article has the details.
​
New York State’s proposed bill to eliminate non-competes was vetoed by Governor Hochul in December. Read the full article here. 
 
Litigation
Effective January 1, 2024, New York allows the use of “unsworn affirmations” in litigation. Read the full article here.

​The litigation finance industry is facing competition from insurers such as Aon, CAC Specialty, and Willis Towers Watson PLLC, as they offer alternative methods of funding legal actions. Read the full article here.
 
Real Estate
​New legislation proposed by Congress would ban hedge funds from buying and owning single-family homes. Read the full article here.
 
While office space is filling up again, a space shortage may be looming on account of tenants’ desire to occupy newer, more modern buildings. Read more here.

We’re seeking talented and friendly attorneys.

If you are interested in working at M&B, please contact [email protected].

​In December, M&B held an epic holiday celebration that included stretch-limo transportation to the dinner venue. The team was greeted by “paparazzi” snapping photos and requesting autographs as they walked the red carpet into the restaurant. 

Click above for larger image

M&B proudly co-sponsored the Brooklyn Public Library Gala Celebration, held on October 2, 2023, honoring Shawn “Jay-Z” Carter and Hon. Dr. Gloria Carter.

​Congratulations to Ilana Volkov, who has been recognized by Best Lawyers® for her work in Bankruptcy & Creditor Debtor Rights / Insolvency & Reorganization Law in New York City!

​Congratulations to M&B’s newest partners, Ephraim Glatt and Kate McGrail!

Bankruptcy/Corporate Restructuring
​Ilana Volkov and Veronique Urban are representing several parties in the Rite Aid bankruptcy case pending in New Jersey. They also recently settled two significant fraudulent transfer litigations in the Southern District of New York. In addition, Dave McGrail is representing two well-known NYC retailers in their out-of-court restructurings.
 
Corporate
In December, Mendy Bensinger, Jason Bitsky and Steven Roz structured and documented a joint-venture surrounding the acquisition of $19.75MM Class-A office building.
 
In November, Mona Kaplan and Pearl Shah aided an M&B client in spinning off their digital media team.
 
Litigation
​In December, Ephraim Glatt and Pearl Shah secured a favorable ruling from the Superior Court of New Jersey in a discovery dispute regarding privileged documents.
 
In November (i) Ephraim Glatt secured a favorable settlement for a client in the healthcare industry, ending decades of litigation in Kings County Supreme Court and (ii) Patrick Train-Gutiérrez and Gabrielle Vázquez settled multiple years-long litigations among various adverse parties through a single, expansive, global settlement agreement.
 
In October, (i) Patrick Train-Gutiérrez and Cynthia Botello secured judgments against multiple defendants in a breach of contract action pending in New Jersey, (ii) Patrick Train-Gutiérrez and Kate McGrail secured a settlement for their client recovering on all claims brought against multiple assisted living facilities in Pennsylvania, and (iii) Patrick Train-Gutiérrez, Alozie Etufugh, and Sophia Herbst defeated a motion to strike their client’s jury demand and in limiting an opposing expert’s damages testimony in a trademark dispute action pending in the SDNY.
 
Real Estate
​In December, Joshua Hager and Jason Bitsky facilitated a $7MM property refinance on behalf of a non-profit organization.
In November, Joshua Hager and Devori Goodman successfully closed a $7.8MM purchase of Class-A building located in Manhattan, against the backdrop of a challenging interest rate market.

​Bankruptcy/Corporate Restructuring
Fund managers looking to revive the CLO money-making enterprise are expanding the scope of what counts as collateral behind these deals by turning to junk bonds, Bloomberg News reported.
 
Corporate
As the Corporate Transparency Act takes effect on January 1, 2024, subject to various exemptions and exceptions, each reporting company, like a corporation or a limited liability company (but not a general partnership or a donative trust), will be required to report certain information about the company to the Financial Crimes Enforcement Network at the Treasury Department, including identifying its beneficial owners. Read more here.
 
Litigation
M&B’s own Gabby Vázquez was a guest on the Fordham Corporate Law Center’s podcast examining the $16 billion damages award recently handed down against Argentina by the SDNY. Listen here.
 
Real Estate
​Borrowers continue to seek financing options while loan delinquencies (including CMBS loans) are increasing, resulting in loan modifications in record numbers, Commercial Observer reported.

​We’re seeking talented and friendly attorneys.

If you are interested in working at M&B, please contact [email protected].

In June, Derek Walker joined M&B’s corporate group, and in August, Cynthia Botello joined M&B’s litigation group. 

Also in June, Mona Awad and Kate McGrail held a drafting workshop for all associates, which included a session on the benefits and risks of utilizing artificial intelligence. 

Semi-spontaneous lunch with some of the New Jersey crew! Pictured below are Mendy Bensinger, Devori Goodman, Cynthia Botello, Ilana Volkov, Mona Awad, Joshua Hager, and Dave McGrail.

​Bankruptcy/Corporate Restructuring
Ilana Volkov represents Wakefern Food Corp., the largest retailers’ cooperative group of supermarkets, in the KDC Agribusiness/Do Good Foods Chapter 11 bankruptcy cases in Delaware. She and Veronique Urban also represent an affiliate of Hartz Mountain Industries, Inc., a significant regional real estate company, in the Cyxtera Technologies, Inc. Chapter 11 cases in the SDNY.
 
Corporate
Dave McGrail, Jason Bitsky, Pearl Shah, Derek Walker, and Steven Roz acted as “outside general counsel” to a number of New York businesses, including Boober, Something Different, Skura Style, SourceCode, and Zibby Books.
 
Litigation
In September, Ephraim Glatt successfully argued a discovery motion in Kings County Supreme Court, allowing a client to depose a crucial witness. Meanwhile, Patrick Train-Gutiérrez and Ephraim Glatt secured favorable settlements for two separate clients in the healthcare sector, while Sophia Herbst defended guarantors against prematurely-filed complaints in sister cases in New York and Florida.
 
Real Estate
Joshua Hager and Devori Goodman represented privately held investment groups in the sale and acquisition of large muti-family portfolios.

​Congratulations to Mendy Bensinger, Dave McGrail, Patrick Train-Gutiérrez, Gabby Vázquez, and Ilana Volkov, who have all been named Super Lawyers for 2023, and to Ephraim Glatt, who has been named a Super Lawyers Rising Star for 2023.

Bankruptcy/Corporate Restructuring 
Total second quarter 2023 commercial chapter 11 filings were up 105% from the same period in 2022. This article has the details.
 
Corporate 
The New York State legislature has passed a ban on non-competes, ushering in a potential sea change to the employer/employee dynamic in New York.  Importantly, the proposed law is not retroactive. Read the article here.   
 
Litigation 
SDNY Judge P. Kevin Castel issued a blistering opinion sanctioning attorneys for relying upon and standing by fictitious judicial opinions created by ChatGPT without first confirming the opinions’ existence and content. Read the full opinion here.
 
Real Estate 
U.S. regional lenders may have to consider selling off commercial real estate (CRE) loans at a steep discount after breaching key regulatory thresholds for exposure to the troubled CRE and construction sectors. Read the article here. 

We’re seeking talented and friendly attorneys.

If you are interested in working at M&B, please contact [email protected].

In June, M&B held its annual firm outing at Knickerbocker Country Club in Tenafly.

Family members joined in the fun.  So did an 18-foot python.  As the evidence clearly shows, Mendy took no joy in the python’s decision to go straight for Dave’s ear.

In May, Sophia Herbst joined M&B’s litigation group (from Wilson Elser).  A commercial litigator and Adjunct Professor at The George Washington University Law School, Sophia lives in the D.C. area and is a fan of cats, not so much of snakes.  

In June, M&B proudly co-sponsored Runway for Research, an event hosted by Tina’s Wish, to raise funding for ovarian cancer research.

Bankruptcy/Corporate Restructuring
Veronique Urban and Dave McGrail represent creditor Entertainment Industries Employer Association in the Vice Media Chapter 11 bankruptcy case.

Corporate 
Mona Awad, Mendy Bensinger, Jason Bitsky, Pearl Shah, and Steven Roz closed significant transactions across industry verticals, including online retail, vascular medicine, public relations, and real estate management, outpacing the recovering market.  On the management side, Mona Awad assumed leadership of the Corporate Practice Group.
 
Litigation 
Patrick Train-Gutiérrez and Kieran O’Connell tackled domestic litigation matters, defeating a motion to dismiss veil piercing claims, while Gabby Vázquez, Ephraim Glatt, and Kate McGrail addressed matters with an international flavor, including securing a $4.6 million judgment in Canada.
 
Real Estate 
Joshua Hager and Devori Goodman successfully represented a closely-held investment group in the acquisition of an off market out-of-state property.

​Congratulations to Ilana Volkov, who has been selected for inclusion in Lawdragon 500 Leading U.S. Bankruptcy & Restructuring Lawyers 2023.

​Bankruptcy/Corporate Restructuring 
Bloomberg reports that almost $1.5 trillion of U.S. commercial real estate debt comes due for repayment before the end of 2025. Read the full article here.

Corporate
More than a decade after the LIBOR scandal exploded and five years after SOFR got the nod, LIBOR will go away on June 30. This article has the conversion chart.

Litigation
A Delaware court has found that judges must evaluate proposed shareholder class action settlements to ensure they are fair to all investors, not just to the shareholders who brought the case, even when time is of the essence. This article has the details.

​Real Estate
There is a silver lining to the interest rate hikes and the impact they are having on the real estate market. Read the full article here. 

​We’re seeking talented and friendly junior and mid-level attorneys.

If you are interested in working at M&B, please reach out to Dave McGrail: [email protected].

​In February, some of the M&B Team took a break from lawyering to Bury the Hatchet. Pictured here (clockwise from the left) are Ilana Volkov, Patrick Train-Gutiérrez, Dave McGrail, Pearl Shah, Devori Goodman, Mona Awad, Mendy Bensinger, Joshua Hager, and Steven Roz.

​​Ephraim Glatt joined M&B in March after litigating for nearly eleven years at Kasowitz Benson Torres LLP and immediately jumped into a trial before the District Court for the Southern District of New York with Gabby Vázquez. Happily, the trial ended just in time for him to enjoy a quiet Passover with his family.

​Bankruptcy/Corporate Restructuring
In February, Ilana Volkov, Veronique Urban, and Pearl Shah successfully confirmed a plan of reorganization for First Step Trademarks, LLC, Case No. 21-12147 (Bankr. SDNY).

Corporate
In February, Mona Awad, Joshua Hager, Jason Bitsky, Steven Roz, and Devori Goodman closed a $37,500,000 stock and asset sale.  Notwithstanding interest rate hikes and investor skittishness, the M&B corporate team negotiated and/or closed over $100MM of new transactions in Q1 2023.

Litigation
In March, Patrick Train-Gutiérrez, Kate McGrail, and Kieran O’Connell successfully defeated a “bet the company” preliminary injunction motion seeking to enforce a non-solicitation provision against a client with a growing presence in the assisted living industry.

​Real Estate
Joshua Hager and Devori Goodman closed a number of deals with “outside the box” structures, including the sale of a portfolio of mixed used properties. These transactions allowed the clients to attain their goals for Q1 2023 in a tightening real estate market.  

​Congratulations to Gabby Vázquez and Ilana Volkov, who were recognized as Top Women Attorneys in the New York Metro Area by The American Registry.