Large Cap
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February 12, 2025
Conn. Opposes Bankrupt Prospect Medical's 'Plunder'
Prospect Medical Holdings Inc. must be held accountable for harm that the hospital operator caused in Connecticut, but first, its three facilities in the state need to quickly transition to new ownership, the offices of the attorney general and the governor told a Dallas bankruptcy judge.
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February 12, 2025
Joann To Close Over 500 US Stores In Second Ch. 11
Joann Inc., a fabrics and crafts retailer that reentered bankruptcy in January, asked a Delaware bankruptcy judge Wednesday for permission to close more than 500 underperforming stores throughout the country that the company said potential buyers of the business aren't interested in taking on.
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February 12, 2025
Purdue Asks For Another Month To Work On Ch. 11 Deal
Purdue Pharma is asking a New York bankruptcy judge to extend the litigation shield for its former owners for another month, saying while it hopes to have a plan in writing by next week it still needs the breathing room to get the plan on file.
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February 12, 2025
Yellow Corp. Seeks OK For $15M Real Estate Sale
An investment banking advisory firm for bankrupt trucking company Yellow Corp. asked a Delaware bankruptcy court to approve three asset purchase agreements for properties owned by the trucking company that are worth $15.1 million.
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February 12, 2025
Skarzynski Marick Adds Duane Morris Bankruptcy Team in LA
Insurance coverage litigation boutique Skarzynski Marick & Black LLP is expanding its services, announcing Wednesday it is bringing over a team of Duane Morris LLP bankruptcy experts in its Los Angeles office.
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February 12, 2025
Blank Rome Adds 2 Ex-Otterbourg Finance Pros In NY
Blank Rome LLP has added the former chair of Otterbourg PC's banking and finance department and a fellow asset-based lending and corporate transactions specialist previously with that firm as partners in its New York office, the firm has announced.
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February 11, 2025
Celsius Crypto Spinoff Stockholders Sue For Board Docs
Stockholders of Ionic Digital Inc., a company formed to hold and operate digital mining assets of bankrupt Celsius Network LLC, have sued in Delaware's Court of Chancery for access to the company's stockholder lists in order to run a competing slate of directors.
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February 11, 2025
Guo Trustee Wants More Time For 'Mind-Boggling' Clawbacks
The Chapter 11 trustee overseeing convicted fraudster Miles Guo's bankruptcy estate on Tuesday testified that the complex task of unraveling millions in cash transfers without the Chinese exile's cooperation warrants a third blanket order allowing avoidance actions beyond typical deadlines.
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February 11, 2025
3rd-Party Releases OK'd In Rochester Diocese's Ch. 11 Plan
A New York bankruptcy judge Tuesday delayed approval of the Roman Catholic Diocese of Rochester's Chapter 11 plan disclosure for a month to review last-minute changes, but he said he had made up his mind that third-party liability releases in the plan are acceptable.
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February 11, 2025
Wheel-Maker Accuride Gets Ch. 11 Reorg Plan Confirmed
Bankrupt wheel-maker Accuride Corp. received approval Tuesday from a Delaware bankruptcy judge for its Chapter 11 reorganization plan after resolving outstanding objections via late-night negotiations prior to a confirmation hearing.
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February 11, 2025
Catching Up With New Bankruptcy Case Action
Zips Car Wash filed for Chapter 11 in Texas with $654 million in debt, struggling with liquidity from competition and rising interest rates. Omega Therapeutics filed for bankruptcy with $140 million in debt and a restructuring plan with its shareholders. White Forest Resources filed for Chapter 11 due to production and shipping issues and plans to sell one of its two mines in West Virginia.
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February 11, 2025
True Value Gets OK For Opt-Out Releases In Ch. 11 Plan
A Delaware bankruptcy judge on Tuesday approved True Value Co.'s request to solicit votes on a Chapter 11 plan containing third-party releases that rely in part on an opt-out mechanism, a feature that the U.S. Trustee's Office said violated the U.S. Supreme Court's decision in Purdue Pharma LP last summer.
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February 11, 2025
Procurement Biz Blocks Disclosure In Byju's $533M Debt Fight
A London judge on Tuesday ruled it would be oppressive to force a U.K. procurement company to provide evidence related to an allegedly fraudulent $533 million transaction for Delaware court proceedings involving the bankrupt U.S. subsidiary of Indian educational tech firm Byju's.
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February 10, 2025
FTX Having Trouble Serving Binance With Ch. 11 Lawsuit
The estate of fallen cryptocurrency exchange FTX told a Delaware bankruptcy judge late Friday that its attorneys haven't yet been able to serve Binance and its former CEO Changpeng Zhao a lawsuit seeking to recover nearly $1.8 billion that FTX is accused of illegally transferring prior to its collapse two years ago.
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February 10, 2025
Morgan Stanley, Tops Trustee Duel Over Dividends Clawback
Morgan Stanley and the Chapter 11 litigation trustee for the estate of Tops Supermarket filed dueling motions on whether dividends paid to Morgan Stanley before Tops' bankruptcy are shielded from clawback.
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February 10, 2025
Sandy Hook Families Accuse Alex Jones Of 'Ambush' Appeal
Connecticut's highest court should swat down Infowars host Alex Jones' attempt to appeal a record-smashing Sandy Hook defamation verdict because he abandoned the very defenses he now seeks to present under a special type of review for unpreserved constitutional arguments, the victims of the 2012 mass shooting have said.
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February 10, 2025
Spyglass Says Weinstein Has No Rights To 'Scream 4' Profits
Film and television production company Spyglass, which bought the assets of The Weinstein Co. during its bankruptcy several years ago, is trying to fend off an attempt by Harvey Weinstein to collect money generated by the film "Scream 4."
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February 10, 2025
Mexican Payday Lender Details $2B Reorg Plan In Del. Ch. 15
Credito Real, a payday lender based in Mexico, has launched a Chapter 15 case in Delaware bankruptcy court to effectuate a prepackaged reorganization plan pending in its home country that calls for the company's assets to be sold off, by a new entity, for the benefit of creditors.
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February 10, 2025
Jones' Ch. 7 Deal Sunk, Yellow Scores Partial Pension Win
A Texas bankruptcy judge has rejected a Chapter 7 trustee's proposal to settle $1.5 billion in Sandy Hook claims against Alex Jones, Yellow Corp. won a partial victory in a $540 million pension dispute after a Delaware judge ruled liabilities were overstated, and the Eleventh Circuit barred a mortgage servicer from charging unauthorized "pay to pay" fees. This is the week in bankruptcy.
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February 10, 2025
American Tire Gets OK For Going-Concern Sale To Lenders
A Delaware bankruptcy judge on Monday said he was "very happy" to approve American Tire Distributors Inc.'s roughly $835 million sale of its business to a lender group in Chapter 11, a deal that will enable the company to preserve jobs and continue selling tires and wheels.
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February 07, 2025
For These Victims, Death Came Before Bankruptcy Resolution
Thousands of people have died with no compensation in recent years as big institutions shield themselves in bankruptcy court from claims related to opioids, fraud, asbestos and sexual abuse, plaintiffs' lawyers say. Critics say it's an inherent part of a bankruptcy court system that helps insiders and hurts creditors.
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February 07, 2025
Zips Car Wash On Track For April Ch. 11 Plan Hearing
A Texas bankruptcy judge Friday gave Zips Car Wash permission to draw on $20 million in Chapter 11 financing under terms that will see the vehicle-cleaning chain seeking court approval for its equity-swap restructuring plan by mid-April.
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February 07, 2025
Under The Radar: Bankruptcy News You May Have Missed
A onetime financial adviser to UpHealth is opposing the debtor's Chapter 11 plan, Hearthside Food Solutions' official committee of unsecured creditors has balked at the company's executive bonus proposal in bankruptcy, and one-time investors in defunct real estate investment firm RealtyShares willingly dismissed a suit against the firm's former directors, litigation that had outlived the firm's Chapter 7 by more than a year.
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February 07, 2025
Syracuse Diocese Wants Rep For Unknown Abuse Claimants
The Roman Catholic Diocese of Syracuse asked a New York bankruptcy judge to appoint a representative for currently unknown sexual abuse claimants and to extend the deadline for the representative to vote on the diocese's Chapter 11 plan until the end of March.
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February 07, 2025
Mexican Lender Gets Cautious OK For UK Reorg Of US Debt
The England and Wales-based subsidiary of a Mexican industrial equipment leasing and financing group on Friday received Chapter 15 recognition of its U.K. restructuring from a New York bankruptcy judge, who expressed concern about the structure but said no creditors were harmed by it.
Expert Analysis
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Attorneys, Law Schools Must Adapt To New Era Of Evidence
Technological advancements mean more direct evidence is being created than ever before, and attorneys as well as law schools must modify their methods to account for new challenges in how this evidence is collected and used to try cases, says Reuben Guttman at Guttman Buschner.
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Why 7th Circ. Libel Ruling Is Crucial For The Media
As more defamation plaintiffs attorneys argue that allowing a published statement to remain online after additional evidence of falsity emerges equates to actual malice, the Seventh Circuit's recent National Police Association v. Gannett opinion should be lauded by the media and online publishers as a favorable decision, say attorneys at Vedder Price.
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Tips For Litigating Against Pro Se Parties In Complex Disputes
Litigating against self-represented parties in complex cases can pose unique challenges for attorneys, but for the most part, it requires the same skills that are useful in other cases — from documenting everything to understanding one’s ethical duties, says Bryan Ketroser at Alto Litigation.
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3 Cases Show Tensions Between Arbitration And Insolvency
The intersection of international arbitration and insolvency may influence the formulation of litigation strategy on a global scale, and several recent cases illustrate the need for counsel to understand how courts are varying in their approaches, say attorneys at Skadden.
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Air Ambulance Ch. 11s Show Dispute Program Must Resume
Air Methods’ recent bankruptcy filing highlights the urgent need to reopen the No Surprises Act’s independent dispute resolution program for air ambulances, whose shutdown benefits insurance companies and hurts providers, says Adam Schramek at Norton Rose.
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Pro Bono Work Is Powerful Self-Help For Attorneys
Oct. 22-28 is Pro Bono Week, serving as a useful reminder that offering free legal help to the public can help attorneys expand their legal toolbox, forge community relationships and create human connections, despite the challenges of this kind of work, says Orlando Lopez at Culhane Meadows.
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Why Delaware ABCs Are No Longer As Easy As 1-2-3
In light of the Court of Chancery's recent focus on additional disclosures, the assignment for the benefit of creditors process in Delaware may no longer be as efficient as it once was, and companies should be prepared to provide significantly more information leading up to an ABC, say attorneys at Goodwin.
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Diamond Sports Cases Shed Light On Executory Contracts
Recent Texas bankruptcy cases involving telecast fees payable by Diamond Sports to certain Major League Baseball teams provide a window into the dynamic relationship that can develop between debtors and counterparties under some executory contracts, say Joseph Badtke-Berkow and Robin Spigel at Allen & Overy.
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Playing In A Rock Cover Band Makes Me A Better Lawyer
Performing in a classic rock cover band has driven me to hone several skills — including focus, organization and networking — that have benefited my professional development, demonstrating that taking time to follow your muse outside of work can be a boon to your career, says Michael Gambro at Cadwalader.
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The Pop Culture Docket: Judge Espinosa On 'Lincoln Lawyer'
The murder trials in Netflix’s “The Lincoln Lawyer” illustrate the stark contrast between the ethical high ground that fosters and maintains the criminal justice system's integrity, and the ethical abyss that can undermine it, with an important reminder for all legal practitioners, say Judge Adam Espinosa and Andrew Howard at the Colorado 2nd Judicial District Court.
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Balancing Justice And Accountability In Opioid Bankruptcies
As Rite Aid joins other pharmaceutical companies in pursuing bankruptcy following the onslaught of state and federal litigation related to the opioid epidemic, courts and the country will have to reconcile the ideals of economic justice and accountability against the U.S. Constitution’s promise of a fresh start through bankruptcy, says Monique Hayes at DGIM Law.
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SVB Bankruptcy Case Raises Asset Control Questions
The initial disputes in Silicon Valley Bank's bankruptcy case between the Federal Deposit Insurance Corp. and the debtor over tax refunds and deposits are likely to signal the rekindling of old battles for limited assets last fought during the Great Recession, say Jeffrey Rothleder and Maura McIntyre at Squire Patton.