Bankruptcy

  • January 12, 2025

    Hospital Operator Hits Ch. 11 With $1B-Plus Debt, Sale Plans

    Listing more than $1 billion in debts, California-based hospital operator Prospect Medical Holdings Inc. and several subsidiaries on Saturday filed a Chapter 11 petition in bankruptcy court in the Northern District of Texas, saying they intend to advance the planned sales of several facilities and refocus on operations in their home state.

  • January 10, 2025

    Justices To Review Block On Expanded Student Loan Benefits

    The U.S. Supreme Court on Friday agreed to review the Fifth Circuit's block on expanded benefits under a federal program that forgives student loans for borrowers defrauded by higher education institutes.

  • January 10, 2025

    US Trustee Balks At Ch. 11 Bid Protections In First Mode Case

    A package of bid protections for the stalking horse of bankrupt electric-engine developer First Mode needs to be reined in, the Office of the U.S. Trustee has said, urging a Delaware bankruptcy judge to reject the debtor's request that expenses and fees tied to the $15 million bid be paid as priority claims.

  • January 10, 2025

    SafeMoon CEO Wants 'Misleading' Reddit Post Explained

    The CEO of bankrupt cryptocurrency asset company SafeMoon LLC asked a Brooklyn federal judge Friday to order the government to explain whether it had a role in a social media user's "misleading" post that promised to connect SafeMoon investors with the U.S. government.

  • January 10, 2025

    Giuliani Held In Contempt Again, This Time In DC

    A D.C. federal judge Friday held Rudy Giuliani in contempt for continuing to repeat false claims that two Georgia poll workers meddled with the outcome of the 2020 presidential election, marking the second time in a week the former New York City mayor has been found in civil contempt.

  • January 10, 2025

    J&J Talc Claimants Seek Sanctions Over Morelli No-Show

    A group of attorneys representing talc claimants in Johnson & Johnson unit Red River Talc's Chapter 11 case has urged a Texas bankruptcy judge to sanction Morelli Law Firm PLLC's founding partner, Benedict Morelli, for allegedly failing to appear in person at a December hearing and falsely claiming to have resolved a dispute with the talc group.

  • January 10, 2025

    Ex-McKinsey Partner Admits To Obstructing Purdue Probe

    A former senior partner at consulting giant McKinsey & Co. pled guilty Friday to obstructing the U.S. Department of Justice's investigation into the firm's work with opioid manufacturer Purdue Pharma LP, a month after McKinsey agreed to pay $650 million to resolve related charges.

  • January 09, 2025

    J&J Spin-Off Says Talc Committee Can't Hire Brown Rudnick

    Johnson & Johnson's bankrupt spin-off called Brown Rudnick's bid to represent an official committee of talc claimants "an ethical violation," telling a Texas bankruptcy judge that the law firm's previous work for a group trying to toss the case clashes with the committee's support for its Chapter 11 plan.

  • January 09, 2025

    Texas Oil Well Operator's Ch. 11 Plan Approved With Releases

    Oil well operator Independence Contract Drilling received approval Thursday from a Texas bankruptcy judge for its Chapter 11 reorganization plan, which includes consensual third-party releases.

  • January 09, 2025

    FTX Squabbles With Crypto Startup Over EU Distributions

    The estate of bankrupt crypto exchange FTX said it had no involvement with a startup cryptocurrency exchange's announcement that it had purchased FTX EU and would be handling distributions to former customers of the FTX European subsidiary.

  • January 09, 2025

    Judge Nixes Bid To Depose SEC Counsel In $73M Fraud Case

    A New Jersey federal magistrate judge has denied a credit reporting agency's bid to depose four U.S. Securities and Exchange Commission attorneys and to compel the production of their witness interview notes in a civil enforcement action over an alleged $73 million fraud, ruling the information sought is protected by the work-product doctrine.

  • January 09, 2025

    IRS Gets First Dibs On $1M BP Oil Spill Payout, 11th Circ. Says

    The IRS gets first priority to a $1 million settlement BP paid to a staffing company that racked up $23 million in federal tax debt and went bankrupt following the Deepwater Horizon oil spill, the Eleventh Circuit affirmed, denying an insurer's claim to the money.

  • January 09, 2025

    Body Glove Licensee Surf 9 Files Ch. 11

    Florida-based sporting goods seller Surf 9, which says it is the third-largest retailer of paddle boards in the world, has filed for bankruptcy in New York, listing up to $50 million each of assets and liabilities.

  • January 08, 2025

    Bankrupt Ligado Sues Over $1.7B Cooperation Deal Breach

    Satellite communications company Ligado Networks accused a satellite service provider of breaching a $1.7 billion cooperation deal aimed at facilitating Ligado's terrestrial network operations by failing to upgrade its own satellite terminals and deliver portions of its spectrum.

  • January 08, 2025

    Reed Smith Accused Of 'Causing Chaos' In $102M Award Fight

    The new owners of reorganized international shipping group Eletson Holdings are continuing their battle with the company's former owners and their counsel at Reed Smith in litigation over a $102 million arbitral award, alleging the BigLaw firm's "obstructionist conduct" is "causing chaos."

  • January 08, 2025

    EPA Slams $535M Talc Settlement In Whittaker's Ch. 11

    The U.S. government objected to a $535 million settlement that bankrupt talc supplier Whittaker Clark & Daniels reached regarding talc claims in its New Jersey Chapter 11 case, saying the deal was built on faulty estimates of the company's environmental liabilities.

  • January 08, 2025

    Canadian Payment Systems Co. Hits Ch. 15 As It Seeks Buyer

    Vancouver-based Felix Payment Systems Ltd. has filed a Chapter 15 petition in North Carolina with CA$19 million ($13.2 million) in liabilities, saying it needs to shield its assets from creditors as it moves to restructure through Canadian insolvency proceedings.

  • January 08, 2025

    Criminal Case Against Terraform Founder Said To Exceed SEC's

    The $40 billion criminal case against Terraform founder Do Kwon contains evidence such as recordings and seized mobile phones that exceed what securities regulators presented when they prevailed against him at a civil fraud trial, prosecutors said Wednesday.

  • January 08, 2025

    Auto Financing Co. Vroom's Equity Swap Ch. 11 Plan Gets OK

    A Texas bankruptcy judge on Wednesday approved automotive financing and analytics company Vroom Inc.'s Chapter 11 plan to convert $290.5 million of debt into equity, overruling an objection to the deal from the U.S. Department of Justice's bankruptcy watchdog and allowing Vroom to continue operating.

  • January 07, 2025

    Energy Co. Inks $126 Million Deal To End SPAC Merger Suit

    Investors suing the now-bankrupt oil and gas company Alta Mesa Resources Inc. have asked a Texas federal judge to preliminarily approve a $126.3 million deal to settle claims that the company and its executives misled investors about the value of a 2017 merger.

  • January 07, 2025

    J&J, Talc Suppliers, Insurers Spar Over $505M Sale Stay

    The former talc suppliers of Johnson & Johnson said Tuesday that staying part of a settlement and a connected bankruptcy sale could bog down their efforts to secure plan confirmations and exit Chapter 11, urging a Delaware bankruptcy judge to reject a motion to set aside $50 million from the $505 million deal while it is being appealed. 

  • January 07, 2025

    Ligado Gets OK To Tap $939M DIP Amid Spectrum Spat

    Satellite and spectrum business Ligado Networks received a Delaware bankruptcy judge's approval Tuesday to borrow a share of $939 million in Chapter 11 financing that the company will use to repay high-ranking debt and support itself during the case.

  • January 07, 2025

    Quinn Emanuel Says NAFTA Case Irrelevant In DQ Bid

    A Mexican oil company and its subsidiaries cannot add "undisputedly irrelevant" supplementary information about former counsel Quinn Emanuel amid a disqualification bid, the law firm has told a Miami federal court, arguing that the requested documents, including the dismissal of a NAFTA arbitration Quinn Emanuel brought against Mexico, are either unrelated to the underlying litigation or duplicative.

  • January 07, 2025

    NYC Condo Owner Hits Ch. 11 With More Than $70M Debt

    The owner of 105 unsold New York City waterfront condominium units has filed for Chapter 11 protection with more than $70 million in liabilities.

  • January 07, 2025

    CFPB Adopts Rule To Take Medical Debt Off Credit Reports

    The Consumer Financial Protection Bureau moved ahead Tuesday with plans to restrict the use of medical debt information in credit scoring and lending, finalizing a rule that it said will take an estimated $49 billion in unpaid medical bills off consumers' credit reports.

Expert Analysis

  • Opinion

    AI May Limit Key Learning Opportunities For Young Attorneys

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    The thing that’s so powerful about artificial intelligence is also what’s most scary about it — its ability to detect patterns may curtail young attorneys’ chance to practice the lower-level work of managing cases, preventing them from ever honing the pattern recognition skills that undergird creative lawyering, says Sarah Murray at Trialcraft.

  • Series

    Round-Canopy Parachuting Makes Me A Better Lawyer

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    Similar to the practice of law, jumping from an in-flight airplane with nothing but training and a few yards of parachute silk is a demanding and stressful endeavor, and the experience has bolstered my legal practice by enhancing my focus, teamwork skills and sense of perspective, says Thomas Salerno at Stinson.

  • Why Now Is The Time For Law Firms To Hire Lateral Partners

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    Partner and associate mobility data from the second quarter of this year suggest that there's never been a better time in recent years for law firms to hire lateral candidates, particularly experienced partners — though this necessitates an understanding of potential red flags, say Julie Henson and Greg Hamman at Decipher Investigative Intelligence.

  • Considering Possible PR Risks Of Certain Legal Tactics

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    Disney and American Airlines recently abandoned certain litigation tactics in two lawsuits after fierce public backlash, illustrating why corporate counsel should consider the reputational implications of any legal strategy and partner with their communications teams to preempt public relations concerns, says Chris Gidez at G7 Reputation Advisory.

  • It's No Longer Enough For Firms To Be Trusted Advisers

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    Amid fierce competition for business, the transactional “trusted adviser” paradigm from which most firms operate is no longer sufficient — they should instead aim to become trusted partners with their most valuable clients, says Stuart Maister at Strategic Narrative.

  • Expect More Restaurant Ch. 11s As COVID Debt Comes Due

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    The wave of restaurant bankruptcies is likely to continue in the coming months as companies face the looming repayment of COVID-19 pandemic-era government loans, an uncertain economy and increased interest rates, says Isaac Marcushamer at DGIM Law.

  • Mitigating Risk In Net Asset Value Facility Bankruptcies

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    In times of economic turbulence, parties to bankruptcy proceedings that involve net asset value facilities can mitigate risk by understanding the purpose of the automatic stay, complications it can create for NAV facility lenders and options for relief, say attorneys at Mayer Brown.

  • Tax Traps In Acquisitions Of Financially Distressed Targets

    Excerpt from Practical Guidance
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    Parties to the acquisition of an insolvent or bankrupt company face myriad tax considerations, including limitations on using the distressed company's tax benefits, cancellation of indebtedness income, tax lien issues and potential tax reorganizations.

  • 7 Steps To Take Before Responding To Claim Objections

    Excerpt from Practical Guidance
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    When counsel is notified of an objection to the proof of claim in a bankruptcy case, they should contact the client and begin discussing the cost and benefit of responding.

  • Tips For Handling Single Asset Real Estate Bankruptcy Cases

    Excerpt from Practical Guidance
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    Bankruptcy counsel should consider several strategies when representing either a debtor or lender in single asset real estate debtor Chapter 11 cases, which generally arise when a debtor is forced to file for relief to stop an impending foreclosure sale.

  • How Methods Are Evolving In Textualist Interpretations

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    Textualists at the U.S. Supreme Court are increasingly considering new methods such as corpus linguistics and surveys to evaluate what a statute's text communicates to an ordinary reader, while lower courts even mull large language models like ChatGPT as supplements, says Kevin Tobia at Georgetown Law.

  • Why Attorneys Should Consider Community Leadership Roles

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    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.

  • Ch. 11 Ruling Shows Early Attempt To Tackle Purdue Fallout

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    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.

  • 9 Liability Management Tips As Debt Maturity Cliff Looms

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    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.

  • Firms Must Offer A Trifecta Of Services In Post-Chevron World

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    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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