Large Cap
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July 24, 2024
Exxon, QatarEnergy Can Boot LNG Contractor In Ch. 11 Deal
A Texas bankruptcy judge on Wednesday approved a settlement in which Zachry Industrial, the general contractor hired to build a liquefied natural gas facility co-owned by ExxonMobil and QatarEnergy, will exit the project, resolving its dispute with the owners and other contractors.
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July 24, 2024
Failed Bank, FDIC Continue Fight Over $1.9B Account Claims
A New York bankruptcy judge on Wednesday heard arguments on the Chapter 11 plan of the parent company of the failed Silicon Valley Bank, alongside separate arguments on the fate of $1.9 million in funds currently in the hands of federal banking regulators.
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July 24, 2024
Byju's Asks Del. Justices To Undo Lenders' Chancery Win
The bankrupt U.S. arm of India-based educational technology giant Byju's told the Delaware Supreme Court Wednesday that its dispute with a consortium of lenders belongs in New York and argued that the state's Chancery Court was wrong to find the lenders had validly taken over the company after several defaults.
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July 24, 2024
Rite Aid's Elixir Buyer Must Pay Additional $50M In Ch. 11 Sale
Prescription benefits group MedImpact owes an extra $50 million on top of $576 million it paid Rite Aid for its former benefits division Elixir, a New Jersey bankruptcy judge ruled Wednesday, saying his earlier ruling on $200 million in disputed liabilities from the sale didn't fundamentally disrupt a post-closing price adjustment.
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July 24, 2024
Bally Sports Owner Delays Ch. 11 Plan For Comcast Talks
The bankrupt owner of Bally Sports-branded regional sports networks told a Texas judge Wednesday that it needs to delay confirmation hearings for its proposed Chapter 11 plan to allow negotiations with major distributor Comcast to wrap up.
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July 24, 2024
Texas Bankruptcy Court Gets New Judge For Biggest Cases
A former Weil Gotshal & Manges partner has started work as the newest judge for the U.S. Bankruptcy Court for the Southern District of Texas at a critical time for the popular Chapter 11 venue, taking the place of former Judge David R. Jones whose ethics scandal last year rocked the court.
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July 24, 2024
Ex-McElroy Deutsch Exec Says Ch. 11 Doesn't Pause Claims
A former McElroy Deutsch executive told a New Jersey state court that just because her husband — former McElroy Deutsch chief financial officer John Dunlea — has filed for bankruptcy does not mean she needs to pause her claims against the firm for discrimination and retaliation.
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July 24, 2024
Hospital REIT Inks $160M Arizona Emergency Facilities Sale
Medical Properties Trust announced Wednesday that the real estate investment trust plans to sell eight properties to Dignity Health for $160 million, the latest sale amid a flurry of selling activity by the company.
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July 24, 2024
Mobileum Gets OK To Tap $40M In DIP Funds, $100M Rollup
A Texas bankruptcy judge gave global telecom analytics group Mobileum Inc. interim permission Wednesday to access $40 million of Chapter 11 financing and perform a $100 million debt rollup, saying the fact the rollup could be partially undone if better financing is found was critical to his approval.
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July 24, 2024
Retailer Conn's Closing Stores In Bankruptcy, Gets DIP Loan
A Texas bankruptcy judge said on Wednesday that he will approve $25 million of debtor-in-possession financing to help fallen furniture and appliance retailer Conn's Inc. fund its Chapter 11 case, which includes plans to sell its consumer financing arm while holding going-out-of-business sales at its remaining locations.
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July 23, 2024
Rudy Giuliani Says MyPillow CEO Covered His RNC Travel
Rudy Giuliani clarified Tuesday that his travel to and from the Republican National Convention was covered by MyPillow CEO Mike Lindell's conservative media outlet FrankSpeech, according to a filing in New York federal bankruptcy court.
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July 23, 2024
Cannabis Industry Stakeholders Weigh In On Rescheduling
As the period for public comment on the Biden administration's proposal to reclassify marijuana came to a close Monday, anti-legalization activists, marijuana industry advocates and state cannabis regulators each submitted their thoughts on the potential policy shift.
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July 23, 2024
Invitae's Ch. 11 Plan Needs Tweaking, Judge Says
A New Jersey bankruptcy judge said he would confirm the Chapter 11 liquidation plan for genetic testing company Invitae, if it made changes to how it handled distributions to certain creditors.
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July 23, 2024
FTX Reaches Deal On $4M Phala Token Claims In Ch. 11
Bankrupt cryptocurrency platform FTX Trading Ltd. asked a Delaware bankruptcy judge to let it pay $960,000 to crypto issuer Phala Ltd. to settle that company's $4 million claim against FTX and its affiliates.
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July 23, 2024
US Trustee Opposes Nevada Copper's $5.3M Bonus Plan
The Office of the U.S. Trustee objected late Monday to proposed bonus plans for employees of bankrupt mining company Nevada Copper Inc., saying the plans don't include enough information to determine if the bonuses are proper.
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July 23, 2024
Americanas Gets US Nod For Reorganization In Brazil
A New York bankruptcy judge said his trepidation around how Brazilian department store chain Americanas' bankruptcy plan treats creditors that don't give legal releases to nondebtor third parties was quelled, and granted his Chapter 15 sign-off for a plan that was already approved by a court in Rio de Janeiro.
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July 23, 2024
18 Whiteford Attys Launch Raines Feldman's Pittsburgh Office
More than a dozen attorneys specializing in bankruptcy, and securities and commercial litigation, have left Whiteford Taylor & Preston to help Raines Feldman Littrell launch its new office in Pittsburgh this week.
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July 23, 2024
Tech Firm Mobileum Enters Ch. 11 To Trim Over $500M Debt
Global telecom analytics group Mobileum Inc. sought Chapter 11 protection in Texas on Tuesday, with plans to trim $529 million from its books through a debt-for-equity swap after falsified time records uncovered last year backlogged operations and spurred litigation.
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July 22, 2024
Price-Fixing Claims Against Par Pharma On Chopping Block
A Connecticut federal judge has asked a coalition of states to explain why he shouldn't toss two price-fixing lawsuits against Par Pharmaceutical Companies Inc., noting that the defendant and its parent, Endo International PLC, recently filed Chapter 11 reorganization plans shielding them from the cases.
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July 22, 2024
Invitae Awaits Ch. 11 Plan Decision After Testy Hearing
Following a lengthy and contentious hearing Monday, a New Jersey bankruptcy judge said he would rule Tuesday on a motion seeking confirmation of genetic testing business Invitae's Chapter 11 plan, which would repay creditors using proceeds from a sale of the company's assets to Labcorp.
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July 22, 2024
Steward Health Care Finds Buyers For 2 Hospitals
Steward Health Care has told a Delaware bankruptcy judge it has found buyers for two of the facilities in its first round of hospital sales in its Chapter 11 case, but three others had attracted no qualified bids.
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July 22, 2024
WOM Asks To Pay Ex-Execs Severance Under Chilean Law
Chilean telecommunications company WOM requested a Delaware bankruptcy court's permission to pay nearly $500,000 in compensation to two former executives who were terminated before the company filed for bankruptcy in the U.S., explaining that the payments are mandated by laws in Chile.
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July 22, 2024
99 Cents Only Pivots To New Buyers After $8M Bid Rescinded
Discount retail chain 99 Cents Only asked a Delaware bankruptcy court to approve alternative sales for two California real estate parcels after the winning bidder who submitted a $8 million offer failed to close the deal over the last two months.
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July 22, 2024
Giuliani In Limbo, Guo Faces Ch. 11 Trustee Suit
The court-appointed watchdog for Miles Guo's bankruptcy has unpaused a civil racketeering conspiracy case against the Chinese billionaire after his criminal RICO case resulted in a conviction, ex-New York City mayor Rudy Giuliani's Chapter 11 case has still yet to be dissolved, and a new bankruptcy judge has ascended to the bench in New York.
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July 22, 2024
Lack Of 'Smoking Gun' Sinks J&J's Bid To DQ Beasley Allen
The Beasley Allen Law Firm may represent plaintiffs in multicounty talc injury litigation in New Jersey state court, after a judge found Johnson & Johnson failed to show a former Faegre Drinker outside counsel shared information he learned representing the company in earlier talc litigation.
![A man holds Chapter 11 documents in an illustration. (iStock.com/designer491)](https://cdn.statically.io/img/assets.law360news.com/1861000/1861600/070db51646cf4faad6d8fbdc57260642a7394051-istock-1178006949-(1).jpg)
Meet The Attys In Tech Firm Mobileum's Ch. 11
A team of lawyers from Weil Gotshal & Manges LLP is guiding global telecom analytics group Mobileum Inc.'s Chapter 11 case in Texas.
![A stock photo shows a document representing a Chapter 15 bankruptcy application. (iStock.com/danielfela)](https://cdn.statically.io/img/assets.law360news.com/1860000/1860817/6f14e0bdadc5058b367e22bfc94df67dca8e6f70-istock-508338354.jpg)
Behind The $1B Ch. 15 Bankruptcy Of Brazil's InterCement
Leading Brazilian cement and concrete supplier InterCement landed in Brazilian restructuring court and a New York Chapter 15 proceeding after an economic slump in Brazil drove it to sink further into debt, and it has yet to find a way out.
![The word debt is spelled out on wooden blocks. (iStock.com/Ratana21)](https://cdn.statically.io/img/assets.law360news.com/1860000/1860763/9837020edf26b385f2aac49621f0787997849dad-istock-1781737198-(1).jpg)
Purdue Release Ruling May Spur Creative Ch. 11 Workarounds
With nonconsensual third-party releases off the table following the U.S. Supreme Court's June decision in the Purdue Pharma bankruptcy, restructuring attorneys are looking at a variety of ways to work around the restriction, from more aggressive assertion of derivative claims to Chapter 15 filings with third-party releases.
Expert Analysis
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SVB Ch. 11 Shows Importance Of Filing Proof Of Claim Early
After a New York bankruptcy court’s recent ruling in SVB’s Chapter 11 case denied late claims filing requests related to post-bar date events, parties with potential claims against a debtor may need to seriously consider filing protective proofs of claim, says Kyle Arendsen at Squire Patton.
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High Court Made Profound Mistake In Tossing Purdue Deal
The U.S. Supreme Court's recent decision to throw out Purdue Pharma's Chapter 11 plan jeopardizes a multistate agreement that would provide approximately $7 billion in much-needed relief to help fight the opioid epidemic, with states now likely doomed to spend years chasing individual defendants across the globe, says Swain Wood at Morningstar.
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What FTX Case Taught Us About Digital Asset Recoverability
FTX's Chapter 11 plan has drawn lots of attention, but the focus should be on the anticipated outcome for investors, which counters several myths about digital currencies, innovation and recoverability, says Kyla Curley at StoneTurn.
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A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates
Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.
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Synapse Bankruptcy Has Ripple Effects For Fintech Industry
Synapse Financial Technologies’ recent bankruptcy filing marks a significant moment in the fintech industry's evolution, highlighting that stringent compliance and risk management in fintech partnerships are essential to mitigate risk and protect consumers, say Joann Needleman and Ryan Blumberg at Clark Hill.
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Discount Window Reform Needed To Curb Modern Bank Runs
We learned during the spring 2023 failures that bank runs can happen extraordinarily fast in light of modern technology, especially when banks have a greater concentration of large deposits, demonstrating that the antiquated but effective discount window needs to be overhauled before the next crisis, says Cris Cicala at Stinson.
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2 Options For Sackler Family After High Court Purdue Ruling
After the U.S. Supreme Court recently blocked Purdue Pharma's plan to shield the family that owns the company from bankruptcy lawsuits, the Sacklers face the choice to either continue litigation, or return to the bargaining table for a settlement that doesn't eliminate creditor claims, says Gregory Germain at Syracuse University.
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Revisiting Scalia's 'What's It To You?' After Kaiser Ruling
While the U.S. Supreme Court's recent decision in Truck Insurance Exchange v. Kaiser allows insurers to be considered "parties in interest" in Chapter 11 cases, they still need to show they would face an injury in fact, answering the late Justice Antonin Scalia's "what's it to you?" question, say Brent Weisenberg and Jeff Prol at Lowenstein Sandler.
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Florida Banking Brief: All The Notable Legal Updates In Q2
The second quarter of 2024 brought two notable bills that will affect Florida's banking and finance community across many issues, including virtual currency abandonment, cancellation of financial services on the basis of political opinions, and the exemption amount of motor vehicles, say Joshua Prever and Andrew Balthazor at Holland & Knight.
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How To Clean Up Your Generative AI-Produced Legal Drafts
As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.
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Purdue Ch. 11 Ruling Reinforces Importance Of D&O Coverage
The U.S. Supreme Court's recent decision in Harrington v. Purdue Pharma, holding that a Chapter 11 reorganization cannot discharge claims against a nondebtor without affected claimants' consent, will open new litigation pathways surrounding corporate insolvency and increase the importance of robust directors and officers insurance, says Evan Bolla at Harris St. Laurent.
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Atty Well-Being Efforts Ignore Root Causes Of The Problem
The legal industry is engaged in a critical conversation about lawyers' mental health, but current attorney well-being programs primarily focus on helping lawyers cope with the stress of excessive workloads, instead of examining whether this work culture is even fundamentally compatible with lawyer well-being, says Jonathan Baum at Avenir Guild.
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Parsing Justices' Toss Of Purdue's Controversial Ch. 11 Plan
The U.S. Supreme Court's recent nixing of OxyContin manufacturer Purdue Pharma's Chapter 11 proposal prevents the Sackler family from settling thousands of civil opioid lawsuits without the consent of all of the plaintiffs, and holds profound implications for bankruptcy cases, say attorneys at MoloLamken.