Large Cap
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September 06, 2024
SmileDirect's DIP Lender Wants Ch. 7 Suit Funding Bid Axed
A company formed by the founders of defunct teledentistry group SmileDirectClub has said a Chapter 7 trustee can't usurp liens it received on SmileDirectClub's assets under a debtor-in-possession loan, urging a Houston bankruptcy judge to reject a request from the debtor's Chapter 7 trustee to use proceeds from litigation against company insiders to pay legal fees.
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September 06, 2024
Property Plays: Faropoint, EPA, Lendlease
Property Plays is a weekly roundup of the latest loans, leases, sales and projects around the country. Send your tips — all confidential — to realestate@law360.com.
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September 06, 2024
Investment Co. Appeals Sanction In Highland Ch. 11
An alternative investment company has asked a Texas federal court to overturn a sanctions order it received in defunct hedge fund Highland Capital's Chapter 11 case after the bankruptcy court concluded that it filed a claim in bad faith.
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September 06, 2024
Celsius' Corporate Creditor Deal Too Late, US Trustee Says
The U.S. Trustee's Office has urged a New York bankruptcy judge to reject a proposed settlement in which Celsius Network would make distributions to its former corporate customers, saying the debtor already consummated a Chapter 11 plan and is therefore no longer able to amend the allocation of funds.
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September 06, 2024
Cleveland-Cliffs Faces Trial Over Mining Co.'s Antitrust Claims
A Delaware bankruptcy court has partially allowed claims accusing steelmaking giant Cleveland-Cliffs of engaging in anticompetitive behavior that harmed a mining venture's efforts to complete an iron mine and ore plant in northern Minnesota to go to trial by a jury in federal court.
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September 06, 2024
Steptoe Adds Co-Leader To Tax Group In New York
Steptoe LLP has expanded its transactions and tax practice by hiring a New York-based partner as a co-leader of the firm's insolvency and restructuring team.
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September 06, 2024
Judge Says He'll OK 2U's $527M Debt-Cutting Plan
A New York bankruptcy judge Friday said he would approve remote learning company 2U Inc.'s prepackaged plan to cut $527 million in debt in Chapter 11, rejecting arguments that it failed to get proper consent for the plan's third-party liability releases.
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September 05, 2024
SQRL Store Chain Landlords Want Out Of Ch. 11 Stay
The landlords of 30 SQRL fuel station and convenience store locations are urging a Texas federal bankruptcy court to allow them to avoid an automatic stay that they allege is blocking them from taking ownership of the SQRL locations for themselves.
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September 05, 2024
Asbestos Claimants Want A Say In 4th Circ. 'Two-Step' Appeal
Asbestos cancer survivors and the estates of victims with pending claims against Aldrich Pump LLC, DBMP LLC and Murray Boiler LLC have asked the Fourth Circuit's permission to file an amicus brief in an appeal centered on the separate Chapter 11 case of Georgia-Pacific unit Bestwall, saying they had been prevented from pursuing relief while Aldrich, DBMP and Murray pursue bankruptcy.
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September 05, 2024
Purdue Gets Mediation, Injunction Extension In Ch. 11
OxyContin maker Purdue Pharma LP received bankruptcy court approval on Thursday to extend its ongoing mediation for another 18 days and to continue the litigation shield protecting the Sackler family members who own the company, as parties seek consensus on a new Chapter 11 plan structure.
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September 05, 2024
Placid Oil Tells 5th Circ. It's Clear Of Contamination Claims
Placid Oil told a Fifth Circuit panel that previous bankruptcy proceedings cleared it of contamination claims on a Louisiana property, saying during oral arguments Thursday that language in the contract calling it a party to the surface lease agreement didn't count as an assignment.
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September 05, 2024
$9.1M In Fees Requested For Calif. Debt Relief Law Firm Ch. 11
Just days after a bankruptcy judge said in court that unsecured creditors in the case of collapsed California debt relief firm Litigation Practice Group will likely receive little to nothing, professionals working on the case filed about $9.1 million in fee requests — enough to use up most of the available cash.
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September 04, 2024
Fisker Seeks OK For Ch. 11 Deal With Austrian Car Co.
Electric car maker Fisker Inc. requested that a Delaware judge approve a $475 million settlement with its Austrian manufacturing partner, which would cut more than €1.5 billion ($1.7 billion) in claims against its Austrian subsidiary, saying it meets the "best interest" of the debtor, creditors and all stakeholders.
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September 04, 2024
Whittaker Seeks $535M Deal In Talc Cases Tied To Berkshire
Bankrupt talc supplier Whittaker Clark & Daniels Inc. asked a New Jersey bankruptcy court to approve a $535 million settlement that will resolve claims against companies including Berkshire Hathaway Inc., chemical distributor Brenntag and DB US Holding Corp.
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September 04, 2024
Steward Health Gets OK To Sell Mass. Hospitals For $343M
A Texas bankruptcy judge on Wednesday approved Steward Health Care's $343 million sale of six of its Massachusetts hospitals and new funding that will help the company keep its facilities in the Bay State operating.
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September 04, 2024
Conn's Gets Final OK For DIP Loan After Resolving Objections
A Texas bankruptcy judge said Wednesday he would give final approval to debtor-in-possession financing for furniture and appliance retailer Conn's after the debtor reached a resolution with its lenders and unsecured creditors.
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September 04, 2024
Solar Panel Co. Lumio Wants Asset Sale By Mid-October
A Delaware bankruptcy judge Wednesday gave residential solar panel provider Lumio Holdings initial permission to tap into $8 million in Chapter 11 financing after hearing the company aims to have its assets sold off by mid-October.
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September 04, 2024
Linklaters Gains NY Restructuring Pro From Simpson Thacher
An attorney with more than 25 years of transactional experience has left Simpson Thacher & Bartlett LLP this week to join Linklaters' New York office as head of the firm's U.S. capital solutions practice.
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September 04, 2024
Immunity Can't Shield Ex-Judge In Romance Suit, Court Told
The former head of a now-shuttered barge company is asking a Texas federal judge to keep alive his claims against a former bankruptcy judge over his undisclosed romantic relationship with an attorney on the company's Chapter 11 case, saying the onetime jurist isn't entitled to immunity for "decidedly non-judicial acts."
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September 04, 2024
Former Judge Faces Risks With Looming Atty Romance Depo
Former Texas bankruptcy judge David R. Jones faces some serious risks in an upcoming deposition that was recently given the green light, especially since the U.S. Department of Justice is reportedly conducting a criminal investigation of his undisclosed relationship with a former Jackson Walker LLP partner who appeared before him, according to attorneys.
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September 03, 2024
Steward Gets Hospital Deal; Pause Urged For Judge Shop Ban
Steward Health Care reached a tentative deal to keep most of its hospitals operating, Jackson Walker LLP and the U.S. Trustee's Office traded blows at a hearing over deposition disputes, and a group of asbestos claimants urged the Fourth Circuit to toss Bestwall's bankruptcy, alleging the Georgia-Pacific unit isn't actually facing financial distress.
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September 03, 2024
Diamond Sports Gets OK For NBA, NHL, Ch. 11 Lender Deals
A Texas bankruptcy judge Tuesday approved a revised Chapter 11 financing deal and new NBA and NHL broadcast deals for Bally Sports Network's parent company.
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September 03, 2024
Chapter 11 Check-In: FTX's $13B Bankruptcy
Almost two years after FTX entered bankruptcy in November 2022, the defunct cryptocurrency exchange is working toward securing confirmation of a Chapter 11 plan that would make swindled customers whole. It has also fought off a bid to disqualify its Sullivan & Cromwell legal team on the grounds that the law firm was conflicted by its prepetition representation of the company.
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September 03, 2024
Steward Seeks OK On $42M From Mass. To Support Hospitals
Bankrupt hospital operator Steward Health Care has asked a Texas bankruptcy judge to let the Commonwealth of Massachusetts pay $42 million to fund the operation of six hospitals in the Bay State that the debtor hopes to sell by the end of the month.
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September 03, 2024
US Trustee Fights Education Co. 2U's Ch. 11 Plan, Disclosure
The U.S. Trustee's Office has urged a New York bankruptcy judge to reject remote learning company 2U's Chapter 11 plan and proposed disclosure, saying the plan contained impermissible releases and that the disclosure didn't offer adequate information.
Ch. 11 Check-In: Bally Parent's Plan In A Run For Home Plate
The parent company of Bally Sports-branded regional sports networks is working its way toward a Chapter 11 plan that will keep its broadcast agreements with more than half of the professional sports teams that play in the National Hockey League, National Basketball Association and Major League Baseball, but finality is far from certain in the 18-month old cases.
Healthcare Cos. Using Ch. 11 As Life Support In 2024
Several healthcare companies, including ventilator maker Vyaire Medical Inc. and hospital operator Steward Health Care System, have filed for bankruptcy this year, citing issues like a post-pandemic revenue drop and ballooning expenses colliding with declining government reimbursements.
Meet The Attorneys Leading Solar Panel Co. Lumio's Ch. 11
Lumio, a provider of residential solar panels, is seeking Chapter 11 bankruptcy protection in Delaware, and attorneys from Morris Nichols Arsht & Tunnell LLP are advising the company as it works toward a sale of its assets by mid-October.
Expert Analysis
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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.
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E-Discovery Quarterly: Rulings On Hyperlinked Documents
Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.