Large Cap
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July 11, 2025
Sunnova's $90M Loan With Release For KKR Gets Judge's OK
A Texas bankruptcy judge agreed Friday to let solar panel company Sunnova Energy International Inc. borrow $90 million in Chapter 11 financing and release pre-bankruptcy lender KKR & Co. from potential claims, weeks ahead of a hearing on Sunnova's planned asset sale that unsecured creditors are signaling they may challenge.
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July 10, 2025
Joann's Ch. 11 Wind-Down Plan Confirmed In Del.
The Chapter 11 wind-down plan of former arts and crafts retailer Joann Inc. received approval Thursday in Delaware bankruptcy court without opposition from any party in interest.
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July 10, 2025
WilmerHale, US Trustee Spar Over Work In 23andMe Ch. 11
The U.S. Trustee's Office argued Thursday the consumer privacy ombudsman in genetic testing company 23andMe's Chapter 11 shouldn't be allowed to hire lawyers from WilmerHale over conflict of interest concerns the firm disputed, an issue the presiding Missouri bankruptcy judge promised to rule on promptly.
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July 10, 2025
Under The Radar: Bankruptcy News You May Have Missed
A creditor of bankrupt event venue The Chariot objected to the company's disclosure statement, saying it lacks details on how the creditor's secured claim will be treated. Meanwhile, Pride Funding, a lender to companies owned by celebrity house flippers Jennifer and Cesar Pina, urged a New Jersey court to deny their use of cash collateral. And Big Lots Inc. is trying to extend for the third time its exclusive window to file a Chapter 11 plan.
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July 10, 2025
Conn. Panel Will Again Hear Ex-Alex Jones Atty's Ethics Case
The Connecticut Appellate Court will hear former Alex Jones attorney Norm Pattis' second appeal of his already-reduced, two-week suspension for allowing a former associate to send Sandy Hook medical records to other Jones attorneys who had not signed a confidentiality order.
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July 10, 2025
Genesis Healthcare Hits Ch. 11 With DIP Deal, Sale Plans
Genesis Healthcare Inc., a holding company for rehabilitation centers and nursing homes in 18 states, and nearly 300 of its affiliates and subsidiaries have filed for Chapter 11 protection with at least $2 billion of liabilities, after the cost of litigation, tax back payments, a cyberattack and several other factors squeezed its cash flow.
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July 09, 2025
Linqto Users Say Founder Flouted Securities Laws
Customers of recently bankrupt private investment platform Linqto sued its founder and former CEO in New York federal court on Wednesday, alleging in a proposed class action that he disregarded securities laws and oversaw aggressive and misleading marketing to lure investors.
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July 09, 2025
11th Circ. Rules Against Hotelier In Arbitration Battle
The Eleventh Circuit on Tuesday affirmed a bankruptcy court's annulment of an automatic stay to allow enforcement of an arbitral award issued in a dispute over a failed $250 million hotel conglomerate, rejecting arguments that the order was barred under a 2020 U.S. Supreme Court decision.
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July 09, 2025
Tariffs Loom Large Over Smaller Ch. 11s So Far In 2025
Mid-market businesses have been struggling with economic uncertainty in the first half of the year, especially with the threat of higher tariffs and reduced incentives for renewable energy, bankruptcy professionals told Law360.
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July 09, 2025
Tariff Uncertainty Led Home Decor Retailer At Home To Ch. 11
Amid growing uncertainty surrounding newly imposed tariffs and burdened by a highly leveraged balance sheet, household furnishings retailer At Home Group Inc. has filed for Chapter 11 protection, citing approximately $2 billion in debt.
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July 09, 2025
NJ Justices Disbar Fla. Atty For Misappropriating $100K
The New Jersey Supreme Court has disbarred a Florida attorney based on Disciplinary Review Board findings that she misappropriated more than $100,000 in client funds.
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July 09, 2025
McGuireWoods Names New Office Leaders In 4 US Cities
McGuireWoods LLP announced Wednesday that it has appointed new office managing partners in Atlanta, Houston, Baltimore and San Francisco, continuing the firm's practice of rotating its staff in and out of key leadership positions.
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July 08, 2025
Puerto Rico Bond Suit Doesn't Belong In Conn., Insurers Say
The insurers of billions in bonds issued by the Puerto Rico Sales Tax Financing Corp. say a Connecticut federal judge can't hear a proposed class action accusing them of failing to pay bondholders the full value of their investments after a 2016 bankruptcy default.
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July 08, 2025
Bid To Convert Yellow To Ch. 7 Postponed, New Plan Expected
A bid to convert the Chapter 11 bankruptcy of Yellow Corp. to a Chapter 7 liquidation was postponed on Tuesday as the former trucking company promised it would soon propose a new plan after nearly two years in court-supervised restructuring.
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July 08, 2025
Catching Up With New Bankruptcy Case Action
Del Monte, a titan in the canned food industry, entered Chapter 11 in New Jersey. A media company partially controlled by Dr. Phil entered bankruptcy in Texas and began suing its joint venture partner. And a company that offers health care in The Villages retirement community hit bankruptcy in Florida with an initial bid for its assets.
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July 08, 2025
Prospect Medical Doctor Groups Hit Ch. 11 After Astrana Sale
About two dozen physician practices linked to bankrupt healthcare company Prospect Medical have filed for Chapter 11 protection in Texas, days after Prospect sold some of the entities' assets to Astrana Health Inc. for $708 million.
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July 08, 2025
Jackson Walker, US Trustee Have A Week To Finish Mediation
A Texas federal judge has given Jackson Walker LLP and the federal government's bankruptcy watchdog a week to finish mediation in a fee dispute stemming from a former bankruptcy judge's secret relationship with a former firm partner.
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July 08, 2025
Linqto Hits Ch. 11 Amid SEC Probe, Compliance Concerns
Linqto, a platform that connected investors with pre-IPO startups and other privately held firms, has filed for bankruptcy in Texas amid an investigation by the U.S. Securities and Exchange Commission and internal concerns over its compliance with securities laws.
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July 07, 2025
Texas Says GM Can't Use Ch. 11 Sale To End Data Privacy Suit
The Texas attorney general is urging a New York bankruptcy court to reject General Motors' bid to escape a data privacy suit being pressed by his office over the automaker's allegedly unlawful collection and sale of drivers' private information, arguing that the court lacks jurisdiction over the agency and that the claims aren't barred by prior bankruptcy proceedings.
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July 07, 2025
Fresno Diocese Seeks Parish Account Protection In Ch. 11
The bankrupt Roman Catholic Bishop of Fresno told a California judge Monday that it would be providing additional evidentiary support for its cash management motion so that the bank accounts of its non-debtor parishes can be protected from closure.
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July 07, 2025
Texas Appeals Court Finds $50M Dubai Judgment Was Unfair
A Texas appeals court has found that a $50 million judgment issued by a United Arab Emirates court system against executives who allegedly fled the country after committing fraud could not stand under state law, saying the UAE court system never provided the executives adequate notice.
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July 07, 2025
Celsius Ends FTX Clawback Suit, Rite Aid Unit Sale OK'd
FTX's Bahamas unit and bankrupt cryptocurrency lender Celsius Network reached a settlement resolving an adversary lawsuit seeking the return of around $517 million in pre-bankruptcy transfers. A New Jersey bankruptcy judge approved Rite Aid's roughly $19 million sale of an ice cream brand to a pair of billionaires behind Monster Energy. And insurers are challenging Avon's Chapter 11 plan, arguing it unfairly forces them to cover potentially invalid talc injury claims.
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July 07, 2025
AIG Pays $6M For Fire In Chinese Exile Guo's NYC Apartment
AIG Property Casualty Co. has paid more than $6 million to a company once owned by Chinese exile and since-convicted fraudster Miles Guo after a fire damaged his former residence in New York City's Sherry-Netherland Hotel, an exclusive co-op across the street from Central Park, a court filing indicates.
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July 07, 2025
Meet The Attorneys Guiding Del Monte In Its $1.2B Ch. 11
A team of attorneys from Cole Schotz PC and Herbert Smith Freehills Kramer are guiding packaged foods giant Del Monte through Chapter 11 as it hopes to find a buyer.
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July 07, 2025
Catching Up With Delaware's Chancery Court
In Delaware in the past week, a vice chancellor awarded just $1 in damages to a China-tied company looking to secure a $50 million stake in SpaceX while also slamming the fund's manager for acting "insincerely," Tyson Foods won $55 million in damages in a suit claiming the owner of two poultry rendering plants Tyson acquired hid that it relied on a "disfavored" practice of recovering "unappetizing remnants of butchered chickens," and a suit over a one-site bank's 11-aircraft fleet was moved into the discovery phase.
Expert Analysis
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How Methods Are Evolving In Textualist Interpretations
Textualists at the U.S. Supreme Court are increasingly considering new methods such as corpus linguistics and surveys to evaluate what a statute's text communicates to an ordinary reader, while lower courts even mull large language models like ChatGPT as supplements, says Kevin Tobia at Georgetown Law.
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Why Attorneys Should Consider Community Leadership Roles
Volunteering and nonprofit board service are complementary to, but distinct from, traditional pro bono work, and taking on these community leadership roles can produce dividends for lawyers, their firms and the nonprofit causes they support, says Katie Beacham at Kilpatrick.
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Ch. 11 Ruling Shows Early Attempt To Tackle Purdue Fallout
A Delaware bankruptcy court’s recent ruling in Parlement Technologies’ Chapter 11 case, which denied a bid by Parler’s former owner to extend its bankruptcy stay to nondebtors, illustrates early efforts to grapple with the U.S. Supreme Court's decision in Purdue Pharma for a recurring bankruptcy issue, say Daniel Lowenthal and Jonah Wacholder at Patterson Belknap.
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9 Liability Management Tips As Debt Maturity Cliff Looms
As the debt maturity cliff swiftly approaches in this challenging environment, attorneys at Winston & Strawn highlight the top considerations for boards of directors and finance professionals to think about when structuring and executing liability management transactions, including reviewing capital structure, evaluating debt covenants, and more.
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Firms Must Offer A Trifecta Of Services In Post-Chevron World
After the U.S. Supreme Court’s Loper Bright Enterprises v. Raimondo decision overturning Chevron deference, law firms will need to integrate litigation, lobbying and communications functions to keep up with the ramifications of the ruling and provide adequate counsel quickly, says Neil Hare at Dentons.
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How Cos. Can Leverage IP In Corporate Bankruptcy
In light of an increase in year-to-date Chapter 11 filings, businesses must understand the importance and value of intellectual property in corporate bankruptcy and restructuring, from contributing to enterprise value, to providing leverage in negotiations and facilitating recovery, says Gregory Campanella at Ocean Tomo.
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Avoiding Retail Bankruptcy As Economic Uncertainty Persists
Amid record retail bankruptcies and continued economic uncertainty in 2024, retailers can take specific steps like building stronger cash-flow models, managing inventory wisely and reassessing cost structures to avoid financial distress, say consultants at BRG.
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Banking Compliance Takeaways From Joint Agency Statement
Federal bank regulatory agencies’ recent joint statement warning of risks associated with third-party fintech deposit services spotlights a fundamental problem that may arise with bank deposit products that are made through increasingly complex customer relationships, says Tom Witherspoon at Stinson.
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Litigation Funding Disclosure Key To Open, Impartial Process
Blanket investor and funding agreement disclosures should be required in all civil cases where the investor has a financial interest in the outcome in order to address issues ranging from potential conflicts of interest to national security concerns, says Bob Goodlatte, former U.S. House Representative for Virginia.
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Law Firms Should Move From Reactive To Proactive Marketing
Most law firm marketing and business development teams operate in silos, leading to an ad hoc, reactive approach, but shifting to a culture of proactive planning — beginning with comprehensive campaigns — can help firms effectively execute their broader business strategy, says Paul Manuele at PR Manuele Consulting.
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Chapter 11 Ruling Signals Emphasis On Lockup Provisions
A New York bankruptcy court's recent ruling in GOL Linhas Aéreas Inteligentes’ Chapter 11 case provides creditors with a strong basis for resisting requests to lock up or otherwise limit their voting rights, say Dania Slim and Andrew Alfano at Pillsbury.
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Vendor Rights Lessons From 2 Chapter 11 Cases
A Texas federal court’s recent critical vendor order in the Zachry Holdings Chapter 11 filing, as well as a settlement between Rite Aid and McKesson in New Jersey federal court last year, shows why suppliers must object to critical vendor motions that do not recognize creditors' legal rights, says David Conaway at Shumaker.
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Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?
A Pennsylvania federal court’s recent dismissal of the defendants’ counterclaims in Morgan v. Noss should remind attorneys to avoid the temptation to repackage a claim’s facts and law into a mirror-image counterclaim, as this approach will often result in a waste of time and resources, says Matthew Selmasska at Kaufman Dolowich.