Mid Cap
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June 14, 2024
Goetz Fitzpatrick To Merge With Platzer Swergold Next Year
Goetz Fitzpatrick LLP and Platzer Swergold Goldberg Katz & Jaslow LLP will combine forces next year to create a single New York City firm.
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June 14, 2024
No Retroactive Fix For US Trustee Fee Dispute, Justices Say
The U.S. Supreme Court sided with the U.S. Trustee's Office on Friday in finding that an amended fee structure implemented before a 2022 ruling that struck down a nonuniform system of payments was all that was needed to resolve the disparate treatment of debtors under the unconstitutional law.
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June 13, 2024
Pa. Nursing Home Creditors OK With $43.7M DIP Loan
Creditors of a Pittsburgh-area nursing home network indicated Thursday they were open to $43.7 million in debtor-in-possession financing as the group prepares to potentially sell off a portion of its footprint in a Chapter 11 sale.
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June 13, 2024
Judge Will Tap Arbitrator To Explain $87M Shipping Award
A New York federal judge will let an arbitrator who found that Levona Holdings Ltd. owed Eletson Holdings Inc. almost $87 million in damages clarify the order, saying it was sufficiently ambiguous to require elaboration and rejecting Levona's request that the arbitrator not be given that chance.
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June 13, 2024
Transport Co. Coach Can Use $200M DIP To Fund Ch. 11 Sale
A Delaware bankruptcy judge agreed Thursday to grant interim approval for bus operator Coach USA's almost $200 million debtor-in-possession package, allowing it to access some $20 million in new funds as it works toward a sale of its assets in the Chapter 11 case.
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June 13, 2024
Meet The Team Guiding Ventilator Co. Vyaire Through Ch. 11
A group of attorneys from Cole Schotz PC and Kirkland & Ellis PC is steering Vyaire Medical Inc., a producer and distributor of medical ventilators, through its Chapter 11 case in Delaware after a reversal of fortunes saw a precipitous drop in revenue for the company in 2023.
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June 13, 2024
Brazilian Food Chain Co. SouthRock Files Ch. 15 In Texas
SouthRock Capital Ltda., a Brazilian private equity company that operates international food service brands including Starbucks and TGI Friday, filed for Chapter 15 bankruptcy in Texas, blaming its insolvency on the COVID-19 pandemic and volatility in Brazil's economy.
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June 12, 2024
Baltimore Diocese Fights Insurers' Dismissal Attempt
The Roman Catholic Diocese of Baltimore defended its adversary action in Maryland bankruptcy court seeking coverage from its insurance carriers, arguing that resolving the issue is crucial to resolving its Chapter 11 bankruptcy proceeding.
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June 12, 2024
Mississippi Casino Developer's Creditors Want To Force Ch. 7
Creditors for developer Diamondhead Casino Corp., which has been trying for years to build a casino in Mississippi near the Gulf Coast, filed an involuntary bankruptcy petition in Delaware bankruptcy court against the company Wednesday, saying they are owed $2.4 million.
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June 12, 2024
Creditors Appealing Denial Of Estate Trustee In Eletson Ch. 11
The official committee of unsecured creditors in the bankruptcy of shipping company Eletson is appealing a New York bankruptcy judge's decision not to appoint a Chapter 11 trustee in the case.
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June 12, 2024
2nd Circ. Backs Brokerage In Suit Over Biotech's Failed IPO
The Second Circuit on Wednesday declined to reinstate a Texas company's suit against an investment brokerage that advised biotech Inpellis on an initial public offering that failed and sent the company to file Chapter 7, ruling a lower court rightly found a global settlement eclipsed the need for a jury trial.
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June 12, 2024
COVID Set Bus Co. Coach USA On Road To Ch. 11
Coach USA's long road to bankruptcy began more than four years ago, when measures designed to prevent the spread of COVID-19 forced the operator of Megabus and other transportation services to shut down its bus lines completely in some regions, and its business hasn't been able to recover since.
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June 12, 2024
Cancer Claimants Say J&J Talc Unit Ch. 11 Belongs In NJ
Cancer patients with talc damage claims against Johnson & Johnson are asking a New Jersey federal judge to bar the company's talc liability spinoff from filing its third attempt at a Chapter 11 reorganization outside the state.
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June 12, 2024
Directors Of Defunct Med Tech SPAC Seek Toss Of Del. Suit
Directors of a special purpose acquisition company that merged with now-defunct medical technology company Better Therapeutics Inc. urged Delaware's Court of Chancery on Wednesday to toss a shareholder's suit about the $15 million de-SPAC merger, saying it wasn't like other problematic SPAC deals.
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June 12, 2024
Restaurant Co. Rubio's Seeks July Auction In Del. Ch. 11
Fast-casual seafood dining chain Rubio's Coastal Grill asked a Delaware bankruptcy judge to sign off on its Chapter 11 auction plans, noting the company hopes to hold an auction July 30 and expects a $45 million stalking-horse credit bid from a lender will reel in competing offers for the California-based business as a going concern.
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June 12, 2024
Money Fight Between Trustee, Law Firm Goes To Mediation
A money conflict between a Chapter 11 bankruptcy trustee and an outside law firm is going to mediation, the parties announced in a court filing this week. It's the latest move in the saga of Litigation Practice Group, the failed California debt relief law firm that was secretly run by a disbarred lawyer.
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June 12, 2024
US Trustee Fights Appgate Ch. 11 Plan's Opt-Out Releases
The Office of the United States Trustee objected on Wednesday to the Chapter 11 plan proposed by tech firm Appgate Inc., saying it would seek to impose an "opt-out only release" on equity holders that would extinguish their potential claims against non-debtors.
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June 12, 2024
Pool Co. Hits Ch. 11 After 'Crippling' $16M False Ads Verdict
The American arm of a Chinese swimming pool products manufacturer has declared bankruptcy after it was slapped with a $16 million false advertising and unfair business practices judgment in North Carolina that the company previously warned would put it out of business.
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June 12, 2024
Pillsbury Adds Aviation-Focused Bankruptcy Partner In NY
Pillsbury Winthrop Shaw Pittman LLP has hired a corporate restructuring partner with aviation expertise for its insolvency and restructuring group in New York.
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June 12, 2024
Ambri Gets OK For Ch. 11 Loan, Sale Plans After Creditor Deal
A Delaware bankruptcy judge on Wednesday approved $5.75 million in Chapter 11 financing for Ambri Inc. and set the battery startup on the path for a July asset sale after hearing the company had reached a deal with its unsecured creditors.
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June 11, 2024
Alston Steers Transport Co. Coach Through Ch. 11
Bus company Coach USA Inc. announced Tuesday that it filed for Chapter 11 protection in Delaware bankruptcy court, saying it has struck asset purchase agreements to preserve jobs and continue offering its ground passenger transportation services.
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June 11, 2024
Pharmacy Co. Optio Gets Interim OK For $10M DIP Package
Illinois-based specialty pharmacy chain Optio received interim approval at a first-day hearing Tuesday in Delaware bankruptcy court to access a $10 million in new money debtor-in-possession financing to fund its Chapter 11.
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June 11, 2024
Acorda Disclosures Lack Info On Releases, Say Creditors
Drugmaker Acorda Therapeutics Inc. faced objections to its disclosure statement from its creditors committee and the U.S. Trustee's Office, which said it failed to provide enough information about releases in the plan.
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June 11, 2024
Meet The Attorneys Formulating Optio Rx's Ch. 11
Specialty pharmacy chain Optio Rx has hired a legal team from boutique corporate and bankruptcy law firm Chipman Brown Cicero & Cole LLP, as it plans to swap debt for equity and cut down on some $235 million of debt through a Chapter 11 in Delaware.
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June 11, 2024
Willkie Farr Hires 11 Ex-Latham Bankruptcy Attys In Germany
Willkie Farr & Gallagher LLP has snagged three bankruptcy partners and eight more attorneys from Latham & Watkins LLP in Germany as it expands its bench in the country, the firm announced Tuesday.
Expert Analysis
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A Look At DOJ's New Nationwide Investment Fraud Approach
Investment fraud charges are increasingly being brought in unlikely venues across the country, and the rationale behind the U.S. Department of Justice's approach could well be the heightened legal standards in connection with prosecuting investment fraud, says Jonathan Porter at Husch Blackwell.
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Decoding The Digital Asset Landscape In Bankruptcy
Recent cases show the explosion of cryptocurrency as an asset class has created new challenges for debtors-in-possession, bankruptcy trustees, and federal and state receivers, and fiduciaries will have to consider a number of legal and practical considerations when determining how to manage these assets in insolvency, say David Castleman at Otterbourg and Anthony Facciano at Stretto.
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How Fla. Bankruptcy Ruling May Affect Equity Owners
A Florida bankruptcy court’s recent ruling in Vital Pharmaceuticals — which rejected the Third Circuit’s Majestic Star decision that determined a bankrupt corporation’s flow-through status was not protected by the automatic stay — may significantly affect how equity owners can mitigate the impact of flow-through structures in bankruptcy, say Eric Behl-Remijan and Natasha Hwangpo at Ropes & Gray.
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Calif. Ruling May Open Bankruptcy Trustees To Tort Liability
In Martin v. Gladstone, a recent California appellate court decision, the application of tort concepts to bankruptcy trustees could pose a new concern for trustees and federal receivers when controlling and maintaining commercial property, says Jarrett Osborne-Revis at Buchalter.
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Co. Directors Must Beware Dangers Of Reverse Factoring
New accounting requirements governing the disclosure of so-called reverse-factoring programs have revealed billions of dollars worth of hidden liabilities on companies’ ledgers, and directors of corporate boards should review their companies’ books for this hidden danger, say Garland Kelley at Looper Goodwine, Amin Al-Sarraf at Locke Lord and Jill Basinger at Discovery Land.
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Attorneys, Law Schools Must Adapt To New Era Of Evidence
Technological advancements mean more direct evidence is being created than ever before, and attorneys as well as law schools must modify their methods to account for new challenges in how this evidence is collected and used to try cases, says Reuben Guttman at Guttman Buschner.
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Why 7th Circ. Libel Ruling Is Crucial For The Media
As more defamation plaintiffs attorneys argue that allowing a published statement to remain online after additional evidence of falsity emerges equates to actual malice, the Seventh Circuit's recent National Police Association v. Gannett opinion should be lauded by the media and online publishers as a favorable decision, say attorneys at Vedder Price.
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Tips For Litigating Against Pro Se Parties In Complex Disputes
Litigating against self-represented parties in complex cases can pose unique challenges for attorneys, but for the most part, it requires the same skills that are useful in other cases — from documenting everything to understanding one’s ethical duties, says Bryan Ketroser at Alto Litigation.
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3 Cases Show Tensions Between Arbitration And Insolvency
The intersection of international arbitration and insolvency may influence the formulation of litigation strategy on a global scale, and several recent cases illustrate the need for counsel to understand how courts are varying in their approaches, say attorneys at Skadden.
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Air Ambulance Ch. 11s Show Dispute Program Must Resume
Air Methods’ recent bankruptcy filing highlights the urgent need to reopen the No Surprises Act’s independent dispute resolution program for air ambulances, whose shutdown benefits insurance companies and hurts providers, says Adam Schramek at Norton Rose.
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Pro Bono Work Is Powerful Self-Help For Attorneys
Oct. 22-28 is Pro Bono Week, serving as a useful reminder that offering free legal help to the public can help attorneys expand their legal toolbox, forge community relationships and create human connections, despite the challenges of this kind of work, says Orlando Lopez at Culhane Meadows.
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Why Delaware ABCs Are No Longer As Easy As 1-2-3
In light of the Court of Chancery's recent focus on additional disclosures, the assignment for the benefit of creditors process in Delaware may no longer be as efficient as it once was, and companies should be prepared to provide significantly more information leading up to an ABC, say attorneys at Goodwin.
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Diamond Sports Cases Shed Light On Executory Contracts
Recent Texas bankruptcy cases involving telecast fees payable by Diamond Sports to certain Major League Baseball teams provide a window into the dynamic relationship that can develop between debtors and counterparties under some executory contracts, say Joseph Badtke-Berkow and Robin Spigel at Allen & Overy.