Mid Cap
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March 27, 2025
TreeSap Farms Gets Final OK For $51M Ch. 11 Loan
Landscape plant grower TreeSap Farms LLC received a Texas bankruptcy judge's approval to tap the final branch of its $51 million debtor-in-possession loan as it looks to sell itself in Chapter 11.
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March 27, 2025
Gastropub Chain Bar Louie Hits Second Chapter 11 In 5 Years
Texas-based gastropub chain Bar Louie filed for Chapter 11 protection in Delaware, listing nearly $70 million of debt, about five years after the chain sold itself to creditors in a previous bankruptcy.
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March 26, 2025
Sotomayor Urges Caution On Nondelegation Doctrine Revamp
U.S. Supreme Court Justice Sonia Sotomayor cautioned her colleagues during oral arguments Wednesday against using a challenge to the Federal Communications Commission's administration of a broadband subsidy program as a way to resurrect the long-dormant nondelegation doctrine. Several conservative justices, however, seemed willing to disregard that admonition.
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March 26, 2025
23andMe Says Ch. 11 Privacy Ombudsman Not Required
DNA testing company 23andMe Inc.'s customer data will be protected in Chapter 11, its attorneys told a Missouri bankruptcy judge Wednesday as it argued that the appointment of a consumer privacy ombudsman is not required.
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March 26, 2025
Resort Developer Asks To Unwind Pre-Ch. 11 Equity Deal
California resort developer SilverRock Development Co. filed an adversary complaint in its Chapter 11 case Tuesday asking a Delaware court to unwind a pre-bankruptcy securitization transaction that converted preferred shares into secured debt.
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March 26, 2025
Mondee Defends Ch. 11 Sale To Stalking-Horse Bidder
Bankrupt travel app company Mondee Holdings Inc. on Wednesday defended its plan to sell its assets for about $200 million to its stalking-horse bidder, asking a Delaware judge to overrule a shareholder's objection that claimed the proposed sale runs afoul of bankruptcy rules.
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March 26, 2025
Judge To OK $3.3M DIP Draw In Wood Insulation Co.'s Ch. 11
A Delaware bankruptcy judge said Wednesday she will allow wood fiber insulation maker GO Lab Inc. to tap into a $10 million Chapter 11 bankruptcy financing facility provided by existing bondholders on an interim basis as the company seeks to restructure its balance sheet and give those bondholders nearly all equity.
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March 26, 2025
23AndMe's Ch. 11 Sale Hinges On Patchwork Of Privacy Laws
Bankrupt genetic testing company 23andMe wants to put its vast store of genetic data up for auction in order to repay creditors, but customer privacy concerns and a patchwork of state data protection laws could throw this plan into disarray.
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March 26, 2025
NY REIT Gets Ch. 11 Plan Confirmed After Deal With Creditors
A Delaware bankruptcy judge on Wednesday approved New York-based real estate investment trust JER Investors Trust Inc.'s Chapter 11 plan that calls for about $2.25 million in payments to general unsecured claim holders, following the company's report that it reached a consensus with noteholders that challenged the proposal.
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March 26, 2025
Office Snapshot: Butler Snow Trims Nashville Footprint
In response to changing operational needs, including a decreased need for physical storage and a greater need for collaborative spaces, Butler Snow LLP recently moved to a new office in Nashville's historic Germantown district that it said better fits its goals in the fast-growing city.
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March 26, 2025
Hybrid Engine Maker First Mode Gets Ch. 11 Plan Confirmed
First Mode Holdings, a company that makes hybrid engines for heavy-duty vehicles, received the Delaware bankruptcy court's approval Wednesday to move forward with its Chapter 11 plan, which calls for full recoveries for unsecured creditors.
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March 26, 2025
Justices Rule Ch. 7 Trustee Can't Recover Tax Payments
The U.S. Supreme Court on Wednesday reversed a Tenth Circuit decision allowing the bankruptcy trustee of a defunct Utah company to claw back $145,000 in federal taxes, saying the sections of the Bankruptcy Code relied upon by the trustee provide only a limited waiver of sovereign immunity.
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March 25, 2025
Aerospace Co. Creditor Must Say If It Will Bid Against Debt
The stalking horse bidder for the assets of bankrupt aerospace parts supplier Dynamic Aerostructures must inform the Delaware bankruptcy court by Thursday whether it intends to make a credit bid that includes $54 million of debt it currently holds against the company, after a judge found that a lack of clarity about the creditor's bid would affect other bidders.
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March 25, 2025
Apparel Biz Delta's Ch. 11 Converted To Ch. 7
A Delaware bankruptcy judge has granted a motion from the former owner of the Salt Life clothing and lifestyle business, Delta Apparel Inc., to transition its bankruptcy case from a Chapter 11 to a Chapter 7 liquidation, following the company's failure to secure enough funding to continue its reorganization proceedings.
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March 25, 2025
Catching Up With New Bankruptcy Case Action
23andMe Holding Co. entered Chapter 11 to sell its business and address $214 million in debt; Danimer Scientific Inc., which makes plastics alternatives, entered Chapter 11 to wind down while it tends to its roughly $450 million debt burden; and sneaker shop Soleply began a streamlined bankruptcy for small businesses in an effort to exit some lease obligations and restructure its debt.
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March 25, 2025
Pension Seeks To Opt Class Out Of Cutera Ch. 11 Releases
A pension fund heading up a class action against skin care technology group Cutera has urged a Texas bankruptcy court to find the shareholder has authority to opt all class members out of the company's Chapter 11 plan.
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March 25, 2025
Lowenstein Sandler Can Pursue NJ Dispensary Fraud Claims
Lowenstein Sandler LLP on Tuesday secured a ruling enabling the firm to pursue claims that a cannabis dispensary committed a "fraud on the court," with a New Jersey state judge rejecting the business' attempt to preclude those claims in the firm's $800,000 suit over unpaid legal fees.
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March 24, 2025
WB Fight Led Production Co. Behind 'The Matrix' To Ch. 11
Village Roadshow Entertainment Group, a funding and production company behind blockbusters like "The Matrix" and "The Great Gatsby," filed for bankruptcy last week after a soured partnership with Warner Bros. and an attempt to open its own studio fell flat.
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March 24, 2025
Purdue Files New Plan, Forever 21 Hits Ch. 11 For 2nd Time
Purdue Pharma proposed a new bankruptcy plan, under which the Sackler family and the company would pay a total of $7.4 billion to settle opioid-related claims. Meanwhile, Forever 21's U.S. arm filed for Chapter 11 protection in Delaware, securing court approval to close more than 300 stores and planning to exit bankruptcy by June. Plus, a Texas bankruptcy judge rejected an $8 million bid to purchase right-wing conspiracy theory peddler Alex Jones' Infowars, shutting down a request to reopen the asset sale process.
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March 24, 2025
Calif. Hotel Operator Given 1 Week Of Interim Ch. 11 Financing
The owner and operator of a hotel in Southern California received a Delaware bankruptcy court's permission for a week of Chapter 11 financing after the judge said he would not approve MOM CA Investco LLC's initial debtor-in-possession funding proposal.
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March 24, 2025
Danish Court Sends Fintech Into Bankruptcy
Fintech company Spark Technology A/S on Monday hit bankruptcy in the Bankruptcy Division of the Danish Maritime and Commercial Court after several months of being in hot water with the Danish Business Authority.
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March 24, 2025
ENGlobal Gets OK For Ch. 11 Asset Auction In April
A Texas bankruptcy judge on Monday gave bankrupt engineering firm ENGlobal Corp. permission to put itself on the block a month from now, saying a quick sale made the most sense for the company.
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March 24, 2025
Vertical Farming Co. Files Ch. 11 Amid Financing Struggles
Vertical farming venture Plenty Unlimited Inc. filed for Chapter 11 protection in Texas bankruptcy court with $100 million to $500 million of both assets and liabilities after struggling to raise fresh funds to support its money-losing business.
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March 24, 2025
DNA Testing Firm 23AndMe Files Ch. 11 With Plans To Sell
DNA testing company 23andMe Inc. filed for Chapter 11 protection in Missouri bankruptcy court, listing $214 million of debt and saying it plans to sell its business through the bankruptcy process.
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March 21, 2025
HVAC Giant Air Pros Says It Grew Too Fast Before Ch. 11
Florida-based HVAC service provider AFH Air Pros LLC went on a nationwide acquisition spree between 2020 and 2022, only to land in bankruptcy court earlier this month to try to sell those same companies it purchased and clear its debt, court documents showed.
Expert Analysis
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Equitable Mootness Insights From Greenlit Ch. 11 Plan Appeal
A Texas federal court recently allowed a challenge to ConvergeOne's Chapter 11 bankruptcy plan to proceed because it wouldn't disrupt the IT company's confirmed plan or harm creditors, reinforcing the importance of judicial restraint in applying equitable mootness where limited relief is possible, say attorneys at Parkins & Rubio.
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Litigation Inspiration: Reframing Document Review
For attorneys — new ones especially — there is much fulfillment to find in document review by reflecting on how important, interesting and pleasant it can be, says Bennett Rawicki at Hilgers Graben.
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The Challenges Of Abandoned Retirement Plans In Ch. 7
The Department of Labor's rule for unwinding retirement accounts when plan sponsors file for Chapter 7 bankruptcy was intended to alleviate trustees' administration issues, but practical challenges, like unresolved fee and identification matters, could hinder its implementation, say David Goodrich at Golden Goodrich and Nancy Simons at Stretto.
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Circus Arts Make Me A Better Lawyer
Performing circus arts has strengthened my ability to be more thoughtful, confident and grounded, all of which has enhanced my legal practice and allowed me to serve clients in a more meaningful way, says Bailey McGowan at Stinson.
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When Investigating An Adversary, Be Wary Of Forged Records
Warnings against the use of investigators who tout their ability to find an adversary’s private documents generally emphasize the risk of illegal activity and attorney discipline, but a string of recent cases shows an additional danger — investigators might be fabricating records altogether, says Brian Asher at Asher Research.
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3 Ways To Train Junior Lawyers In 30 Minutes Or Less
Today’s junior lawyers are experiencing a skills gap due to pandemic-era disruptions, but firms can help bring them up to speed by offering high-impact skill building content in bite-sized, interactive training sessions, say Stacey Schwartz at Katten, Diane Costigan at Winston & Strawn and Lauren Tierney at Freshfields.
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The Bar Needs More Clarity On The Discovery Objection Rule
Almost 10 years after Federal Rule of Civil Procedure 34 was amended, attorneys still seem confused about what they should include in objections to discovery requests, and until the rules committee provides additional clarity, practitioners must beware the steep costs of noncompliance, says Tristan Ellis at Shanies Law Office.
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So You Want To Move Your Law Practice To Canada, Eh?
Google searches for how to move to Canada have surged in the wake of the U.S. presidential election, and if you’re an attorney considering a move to the Great White North, you’ll need to understand how the practice of law differs across the border, says David Postel at Henein Hutchison.
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A Strategic Checklist For Bankruptcy Motion Objections
Excerpt from Practical Guidance
Hewing to a set of best practices for objecting to a motion in bankruptcy cases can help creditors’ counsel stay on track as they juggle deadlines and jurisdictions, determine whether filing will help or harm the client, and negotiate with the debtor.
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The 3rd-Party Bankruptcy Release Landscape After Purdue
In its Purdue Pharma ruling prohibiting nonconsensual third-party releases, the U.S. Supreme Court did not comment on criteria to render a third-party release consensual, opening a debate in the bankruptcy courts on the permissibility of opt-out versus opt-in releases, say attorneys at Morgan Lewis.
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Striking A Balance Between AI Use And Attorney Well-Being
As the legal industry increasingly adopts generative artificial intelligence tools to boost efficiency, leaders must note the hidden costs of increased productivity, and work to protect attorneys’ well-being while unlocking AI’s full potential, says Ed Sohn at Factor.
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Being An Artist Makes Me A Better Lawyer
My work as an artist has highlighted how using creativity and precision together — qualities that are equally essential in both art and law — not only improves outcomes, but also leads to more innovative and thoughtful work, says Sarah La Pearl at Segal McCambridge.
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Bankruptcy Decision Exemplifies Venue Issue For Franchisees
A California bankruptcy court's decision earlier this month in Pinnacle Foods and a lingering circuit split on assumption of executory franchise contracts highlights the issue of whether franchisee debtors can qualify for case venue in friendlier circuits, says David Gamble at Parkins Rubio.