Large Cap
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November 14, 2024
Maryland Seeks To Undo Litigation Pause In Purdue Appeal
The state of Maryland argued in New York federal court Thursday that it should be allowed to pursue claims against the Sackler family members who own bankrupt OxyContin maker Purdue Pharma LP, and that a temporary injunction currently blocking a flood of litigation should be thrown out.
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November 14, 2024
Inflation, Election Anxiety Drove Bankruptcy Hike, Experts Say
Bankruptcy filings for both businesses and consumers have risen by 16% over the past year, with factors such as inflation, residual impacts of high interest rates, the COVID-19 pandemic, and macroeconomic uncertainties in the run-up to a contentious presidential election as key drivers, restructuring experts told Law360.
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November 14, 2024
Judge Pondering 3rd-Party Releases In LaVie Ch. 11 Plan
A Georgia bankruptcy judge on Thursday said he will have to consider arguments on whether third-party claim releases in skilled nursing facility operator LaVie Care Centers' Chapter 11 plan are truly consensual before he allows the restructuring to go forward.
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November 14, 2024
Meet The Attorneys In Wellpath's Ch. 11 Case
Prison healthcare provider Wellpath Holdings has called on attorneys from McDermott Will & Emery LLP to help guide its Chapter 11 case as the company angles to trim $500 million from its more than $644 million in funded debt by selling off its behavioral health arm.
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November 14, 2024
Tehum Care Gets OK To Take Votes On Ch. 11 Plan
Prison healthcare provider Tehum Care Services will begin soliciting votes on a Chapter 11 plan crafted by the company and committees for creditors and tort claimants after securing a Texas bankruptcy judge's approval of a disclosure statement tied to the plan.
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November 14, 2024
Ventilator Co. Vyaire's Ch. 11 Plan Gets OK After Sales Close
A Delaware bankruptcy judge Thursday confirmed the Chapter 11 liquidation plan of Vyaire Medical, after the ventilator maker completed sales of its two businesses.
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November 14, 2024
Diamond Sports' Ch. 11 Plan Gets Nod With Amazon Deal
Diamond Sports Group received approval for its Chapter 11 plan Thursday from a Texas bankruptcy court, clearing the way for its continued broadcast of 27 professional sports teams and new streaming options through a deal with Amazon.
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November 14, 2024
The Onion Buys Alex Jones' Infowars At Ch. 7 Auction
Satirical news website The Onion has purchased Alex Jones' Infowars at a Chapter 7 bankruptcy auction, according to a Thursday announcement by the firm representing Sandy Hook shooting survivors who won a $1.4 billion defamation award over his claims the massacre was a hoax.
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November 13, 2024
Republic Bank's 'Dysfunction' Enabled Its Failure, FDIC Says
The former Republic First Bank failed because of its inability to hold certain debt securities, its insufficient liquidity and an ineffective board and management team, according to a post-mortem review issued Wednesday by the Federal Deposit Insurance Corp.'s watchdog.
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November 13, 2024
Feds Seek FTX Assets Used For Alleged China Bribes
U.S. prosecutors have asked a New York federal judge to help secure millions of dollars worth of digital assets held at cryptocurrency exchange Binance, alleging the tokens are tied to what they described as bribes that former FTX CEO Sam Bankman-Fried paid to Chinese law enforcement officials.
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November 13, 2024
Q&A With FTX Lead Ch. 11 Atty Andy Dietderich — Part II
Sullivan & Cromwell LLP's Andy Dietderich led the legal team that represented FTX Trading Ltd. in its two-year-long, $14 billion-plus Chapter 11 case — from shortly before the company's bankruptcy filing in Delaware to its recent successful confirmation hearing.
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November 13, 2024
FTX Prosecutors Tout Tech Chief's 'Outstanding Cooperation'
Manhattan federal prosecutors urged a lenient sentence for former FTX technology chief Zixiao "Gary" Wang, telling the court on Wednesday that his "outstanding cooperation" was instrumental in securing the lightning-fast indictment and ultimate conviction of founder Sam Bankman-Fried for an $11 billion fraud that sank the crypto exchange.
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November 13, 2024
Catching Up With New Bankruptcy Case Action
Former used-car retailer Vroom, prison healthcare provider Wellpath and film production services company Film Finances have all filed for Chapter 11 bankruptcy protection, citing economic difficulties in the wake of the COVID-19 pandemic.
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November 13, 2024
Purdue, Sacklers Agree To Terms As New Ch. 11 Deal Nears
Purdue Pharma LP has agreed to some terms for a new settlement with certain members of the Sackler family, including key provisions governing the scope of liability releases and how much money the family will contribute to pay victims of the opioid crisis who are claimants in the OxyContin maker's bankruptcy case, according to an update provided by co-mediators.
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November 13, 2024
Judge Nixes Tort Committee Bid In Steward Health Chapter 11
A Texas bankruptcy judge on Wednesday shot down a request to form an official committee for tort claimants in the Chapter 11 of hospital operator Steward Health Care, saying there was no evidence that the unsecured creditors committee wasn't adequately representing the interests of medical malpractice creditors.
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November 13, 2024
Jackson Walker Must Supply Docs In Judge-Atty Affair Probe
The Texas federal court overseeing a U.S. Trustee's Office probe of a former Jackson Walker LLP partner's undisclosed relationship with a then-bankruptcy judge has given the firm until Friday to turn over its communications with public relations firms and pages from its attorney sourcebook.
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November 13, 2024
Goulston & Storrs Real Estate Attys Talk Distress Playbook
As commercial real estate distress continues to play out, attorneys are seeing lenders adopt new strategies to save or reduce their exposure to troubled assets, sometimes working in tandem with investors looking to purchase such loans.
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November 13, 2024
Crypto Platform Celsius Reports $92M In Litigation Recoveries
Representatives of the Chapter 11 estate of cryptocurrency company Celsius Network on Wednesday told a New York bankruptcy judge they recovered $92 million in litigation proceeds in the third quarter and are approaching full distributions to customers.
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November 12, 2024
Future Claims Rep OK'd In J&J Unit Red River's Ch. 11
A Texas bankruptcy judge Tuesday appointed a future claims representative for the Chapter 11 case of Johnson & Johnson's talc unit that had served in that capacity in the parent company's two prior attempts to deal with its asbestos liability in bankruptcy.
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November 12, 2024
FTX Targets Scaramucci, PACs, Law Firm In Wave Of Suits
Bankrupt cryptocurrency exchange FTX filed roughly 30 suits in a bid to recoup millions of dollars donated to political and charitable causes, losses caused by alleged market manipulation, and funds spent on business partnerships, including with Skybridge Capital's Anthony Scaramucci and a boutique Florida law firm.
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November 12, 2024
Celsius' Mashinsky Must Face Full Indictment, Judge Says
Ex-Celsius Network CEO Alex Mashinsky must face claims that he committed commodities and securities fraud and manipulated his now-bankrupt business's proprietary token after a New York federal judge declined to trim the indictment against him.
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November 12, 2024
Judge Locks Down Byju Entity's IP In Ch. 11
A Delaware bankruptcy judge Tuesday voided transfers of an Apple App Store account linked to the insolvent U.S.-based financing arm of Indian education technology giant Byju's, as the Chapter 11 trustee overseeing one of its debtor subsidiaries rang the alarm about "bad actors" trying to make off with the unit's cash and intellectual property.
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November 12, 2024
Q&A With FTX Lead Ch. 11 Atty Andy Dietderich — Part I
Sullivan & Cromwell LLP's Andy Dietderich led the legal team that represented FTX Trading Ltd. in its two-year-long, $14 billion-plus Chapter 11 case — from shortly before the company's bankruptcy filing in Delaware to its recent successful confirmation hearing.
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November 12, 2024
Creditors Claim Sweetheart Deal For InterCement's Bank
Bondholders for bankrupt Brazilian cement supplier InterCement filed a $200 million suit in New York state court, saying Banco Bradesco Bbi SA, a shareholder and bank to the debtors' parent, failed to reveal a sweetheart deal under which it could strong arm the debtor into giving it priority repayment.
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November 12, 2024
2 Firms Advise $745M Prospect Managed Care Sale
California-based Astrana Health said it has agreed to pay $745 million to acquire a significant amount of Prospect Medical Holdings' managed care business, including a 177-bed acute care hospital, in a transaction advised by Russ August & Kabat LLP and Sheppard Mullin Richter & Hampton LLP.
Expert Analysis
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Crypto Has Democratized Trading In Bankruptcy Claims
Following the pandemic, there has been a wave of cryptocurrency bankruptcies and a related increase in access to information, allowing nontraditional bankruptcy investors to purchase claims and democratizing a once closed segment of alternative investing, says Joseph Sarachek at Strategic Liquidity.
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The Case For Post-Bar Clerk Training Programs At Law Firms
In today's competitive legal hiring market, an intentionally designed training program for law school graduates awaiting bar admission can be an effective way of creating a pipeline of qualified candidates, says Brent Daub at Gilson Daub.
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5 Key Tips For Attorneys In The Subchapter V Arena
Subchapter V cases present unique challenges for the nondebtor parties-in-interest, and habits developed by attorneys in typical Chapter 11 cases do not necessarily translate, meaning creditors and their counsel should quickly take a proactive role in their cases to protect their interests, which can be done by attending the 341 meeting, analyzing the plan, and more, says Kelly Singer at Squire Patton.
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Attorneys Have An Ethical Duty To Protect The Judiciary
The tenor of public disagreement and debate has become increasingly hostile against judges, and though the legislative branch is trying to ameliorate this safety gap, lawyers have a moral imperative and professional requirement to stand with judges in defusing attacks against them and their rulings, says Deborah Winokur at Cozen O'Connor.
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Why The Debt Maturity Wall Is Still A Figment, For Now
While the phenomenon of the debt maturity wall — a growing wall of staggered corporate debt maturities — has been considered a looming problem since the aftermath of the 2008 global financial crisis, it’s unlikely to have significant consequences before 2025 due to factors such as quantitative easing and evolved lending practices, says Michael Eisenband at FTI Consulting.
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AI Can Help Lawyers Overcome The Programming Barrier
Legal professionals without programming expertise can use generative artificial intelligence to harness the power of automation and other technology solutions to streamline their work, without the steep learning curve traditionally associated with coding, says George Zalepa at Greenberg Traurig.
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10 Essential Bankruptcy Litigation Tips For In-House Counsel
Bankruptcy litigation is a complex and multifaceted area of law that poses unique challenges for in-house counsel, and there are several tools at legal professionals' disposal, like appraisals and understanding jurisdictions, to stay well-informed and protect their companies' interests, says Alison Ashmore at Dykema.
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Preparing Law Students For A New, AI-Assisted Legal World
As artificial intelligence rapidly transforms the legal landscape, law schools must integrate technology and curricula that address AI’s innate challenges — from ethics to data security — to help students stay ahead of the curve, say Daniel Garrie at Law & Forensics, Ryan Abbott at JAMS and Karen Silverman at Cantellus Group.
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Sellers Seeking Best Deal Should Focus On Terms And Price
Rising interest rates and a decline in the automotive mergers and acquisitions market mean that a failed deal carries greater stakes, and sellers therefore should pursue not only the optimum price but also the optimum terms to safeguard their agreement, says Joseph Aboyoun at Fox Rothschild.
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General Counsel Need Data Literacy To Keep Up With AI
With the rise of accessible and powerful generative artificial intelligence solutions, it is imperative for general counsel to understand the use and application of data for myriad important activities, from evaluating the e-discovery process to monitoring compliance analytics and more, says Colin Levy at Malbek.
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Rite Aid's Reasons For Ch. 11 Go Beyond Opioid Suits
Despite opioid-related lawsuits being the perceived reason that pushed Rite Aid into bankruptcy, the company's recent Chapter 11 filing reveals its tenuous position in the pharmaceutical retail market, and only time will tell whether bankruptcy will right-size the company, says Daniel Gielchinsky at DGIM Law.
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Navigating Discovery Of Generative AI Information
As generative artificial intelligence tools become increasingly ubiquitous, companies must make sure to preserve generative AI data when there is reasonable expectation of litigation, and to include transcripts in litigation hold notices, as they may be relevant to discovery requests, say Nick Peterson and Corey Hauser at Wiley.
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Finding Focus: Strategies For Attorneys With ADHD
Given the prevalence of ADHD among attorneys, it is imperative that the legal community gain a better understanding of how ADHD affects well-being, and that resources and strategies exist for attorneys with this disability to manage their symptoms and achieve success, say Casey Dixon at Dixon Life Coaching and Krista Larson at Stinson.