Mid Cap
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July 24, 2024
Allievex To Liquidate In Chancery's Bankruptcy Alternative
A subsidiary of Rock Creek Advisors LLC created to administer the liquidation of Allievex Corp.'s assets to pay creditors notified Delaware's chancery court on Wednesday that the therapeutics company was insolvent and had signed over control of the assets.
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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
Vintage Wine Estates Hits Ch. 11 With Intent To Sell Assets
Vintage Wine Estates, which owns 30 wine brands in California, Oregon and Washington, filed for Chapter 11 protection Wednesday with a plan to sell its assets after post-pandemic wine demand dropped.
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July 24, 2024
UK Bans 830 Directors For COVID Loan Abuse In 12 Months
Hundreds of company directors have been banned in the last year as a result of COVID loan abuse, the Insolvency Service said Wednesday, adding that it has recovered almost £3 million ($3.8 million) of taxpayers' money.
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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
Judge Won't Force Meta To Run Bankrupt Rubio's Ads
A Delaware bankruptcy judge on Tuesday denied a temporary restraining order requested by fast-casual seafood chain Rubio's Coastal Grill against Meta Platforms Inc., which alleged Meta violated an automatic stay in the Chapter 11 case by not running Rubio's ads after the company didn't pay fees it had incurred prepetition.
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July 23, 2024
Sports Retailer Wins Final OK To Tap Cash Collateral In Ch. 11
A Delaware bankruptcy judge agreed Tuesday to allow the parent of two sports retail chains to continue using cash collateral in its Chapter 11 reorganization, after the company filed a final draft of a proposed order that satisfied concerns laid out by PNC Bank, its largest creditor.
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July 23, 2024
Bittrex Raises 'Red Flags' On $20M Customer Crypto Claim
Bankrupt cryptocurrency exchange Bittrex on Tuesday asked a Delaware bankruptcy judge to reject an account holder's $20 million claim, saying there are too many "red flags" of possible illegal activity around the account for it to release the assets.
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July 23, 2024
Airspan Gets OK On $5M DIP Add Amid Regulator Delay
A Delaware bankruptcy judge on Tuesday approved telecommunications company Airspan Networks' request for $5 million in supplemental debtor-in-possession financing, enabling the company to fund operations as it awaits regulatory approval of its Chapter 11 plan.
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July 23, 2024
Malpractice Insurer Escapes Conn. Firm's Suit For Coverage
A Connecticut law firm and its principal will not have their legal bills reimbursed by their malpractice insurer after a state judge granted an early win to the insurance company, noting the firm admitted it was already facing a misconduct claim when its policy went into effect.
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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
Ex-Parler Owner Proposes Ch. 11 Sale Plan, Creditor Deal
The former owner of conservative social media platform Parler filed proposed Chapter 11 bidding procedures in Delaware court late Monday along with a settlement with its senior secured creditor that will return $300,000 to the estate.
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July 23, 2024
Former Doctor To Be Released From Jail In FBAR Fight
A former doctor will be released from U.S. custody after a Michigan federal court lifted Tuesday an order of civil contempt against him for failure to pay about $1 million in foreign account reporting penalties.
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July 22, 2024
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.
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July 22, 2024
Bankrupt Nursing Homes To Pay $36M To End DOL Wage Suit
More than a dozen bankrupt nursing homes will have to pay nearly $36 million in a U.S. Department of Labor's suit claiming workers weren't paid full wages after creating "an adversarial" payroll structure, a Pennsylvania federal judge ruled Monday.
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July 22, 2024
Watchdog Says Pioneer Health Trustee Can't File Plan
The Office of the U.S. Trustee objected to a proposal to strip debtor Pioneer Health Systems LLC of control over its Chapter 11 case, saying the Subchapter V trustee that would take over is unable to file a plan of reorganization due to limitations in the Bankruptcy Code.
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July 22, 2024
Clothing Co. Delta Seeks Ch. 11 Consulting Fees For Ex-Execs
Clothing manufacturer Delta Apparel and its affiliates asked for a Delaware bankruptcy court's permission to pay three former executives, who resigned as the company headed toward insolvency, as consultants so they can help the debtors market their assets, including beachwear brand Salt Life, for sale.
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July 22, 2024
US Trustee Asks To Make UrgentPoint's Ch. 11 A Liquidation
The U.S. Trustee's Office requested that a Delaware bankruptcy judge convert healthcare provider UrgentPoint's Chapter 11 case to a Chapter 7 liquidation, saying the debtor is or shortly will be unable to meet its administrative obligations and put its ability to care for patients at risk.
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July 22, 2024
Airspan Needs $5M DIP Add Amid Ch. 11 Regulatory Delays
Telecommunications company Airspan Networks has asked a Delaware bankruptcy court for permission to borrow an additional $5 million in debtor-in-possession financing to support the business as it waits for regulatory approval in the United Kingdom of its confirmed restructuring plan.
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July 22, 2024
Mercon Coffee Can't Grant Insider Releases, Judge Rules
A New York bankruptcy judge has ruled that coffee supplier Mercon Coffee Group can't reward corporate insiders who stuck with the company through its Chapter 11 case with a release from future litigation.
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July 19, 2024
Real Estate Recap: CMBS, Phoenix Evictions, Summer Break?
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including trends in multifamily commercial mortgage-backed securities, a study of corporate landlord evictions in Phoenix, and the creative lengths real estate lawyers go to when closing the deal on a summer vacation.
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July 19, 2024
Tender Greens And Tocaya Get Interim OK For Ch. 11 Loan
One Table Restaurant Brands LLC, the Los Angeles-based casual restaurant chain that operates Tender Greens and Mexican eatery Tocaya, received interim approval Friday to access $1.7 million of a $3 million debtor-in-possession facility from a prepetition lender that also may submit a stalking-horse credit bid for the company.
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July 19, 2024
Meet The Attys For Tender Greens And Tocaya's Ch. 11
A partner at Raines Feldman Littrell LLP is representing Los Angeles-based casual restaurant chain One Table Restaurant Brands LLC, which operates about 40 locations of Tender Greens and Mexican eatery Tocaya, in its Chapter 11 bankruptcy in Delaware.
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July 19, 2024
Coach USA Reaches Deal On DIP Loan, Ch. 11 Sale Process
Bankrupt bus transportation company Coach USA told a Delaware judge Friday that it had reached agreement with its lenders, unsecured creditors and a stalking horse bidder that allowed the company to finalize a $200 million debtor-in-possession loan and move forward with a sale process for its key business segments.
![The U.S. Courthouse for the Southern District of Texas is seen in downtown Laredo, Texas. (Robert Daemmrich Photography Inc/Corbis via Getty Images)](https://cdn.statically.io/img/assets.law360news.com/1861000/1861771/ab1c4eb6b7aabfc325d1d292b6d47a34f699646d-gettyimages-539629188-(1).jpg)
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.
![Signage at a Red Lobster restaurant on Monday, May 20, 2024, in Lincolnwood, Ill. Red Lobster, the casual dining chain that brought seafood to the masses with inventions like popcorn shrimp and "endless" seafood deals, has filed for Chapter 11 bankruptcy protection. The 56-year-old chain has been struggling in recent years with rising lease and labor costs, increased competition and changing customer tastes. (AP Photo/Teresa Crawford)](https://cdn.statically.io/img/assets.law360news.com/1860000/1860740/b1f34b53c3d37a8a86b79db6a2589967022e3e46-red_lobster_bankruptcy_03244.jpg)
No New Bids For Red Lobster Ahead Of Disclosure Hearing
There may be plenty of other fish in the sea, but Red Lobster did not hook any of them, so the bankrupt restaurant brand is heading toward a hearing on Friday with its private equity stalking-horse bidder as its presumptive buyer.
![Rudy Giuliani sits as he attends the second day of 2024 Republican National Convention at the Fiserv Forum, Tuesday, July 16, 2024, in Milwaukee. (AP Photo/Carolyn Kaster)](https://cdn.statically.io/img/assets.law360news.com/1860000/1860727/4b2f97bf77d3b162aa0b0643c01a90264b11319f-election_2024_rnc_17680.jpg)
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.
Expert Analysis
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Ambiguity Ruling Highlights Deference To Arbitral Process
A New York federal court’s recent ruling in Eletson v. Levona, which remanded an arbitral award for clarification, reflects that the ambiguity exception’s analysis is not static and may be applied even in cases where the award, when issued, was unambiguous, says arbitrator Myrna Barakat Friedman.
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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.
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Del. Bankruptcy Ruling Will Give D&O Insureds Nightmares
In Henrich v. XL Specialty Insurance, the Delaware Bankruptcy Court recently found that a never-served qui tam claim had been "brought" before a D&O policy's retroactive date, thereby eliminating coverage, and creating a nightmare scenario for directors and officers policyholders facing whistleblower claims, says David Klein at Pillsbury.