Large Cap

  • September 26, 2024

    J&J Is 'Forum-Shopping' In New Spinoff Ch. 11, Trustee Says

    The U.S. Department of Justice's bankruptcy watchdog has asked a judge to send the latest Johnson & Johnson talc-liability spinoff bankruptcy to New Jersey, saying Thursday that J&J subsidiary Red River Talc's Chapter 11 petition in the Southern District of Texas is an "assault on the very integrity of the bankruptcy system" and amounts to forum-shopping.

  • September 26, 2024

    Atty Can't Shield Bank Records In Judge Romance Probe

    A former Jackson Walker LLP lawyer on Thursday lost her bid to torpedo a subpoena from the U.S. Trustee's Office seeking her bank records in connection with an inquiry into her secret relationship with a former Texas federal bankruptcy judge, court records show.

  • September 26, 2024

    FTX Strikes Deal With MDL Counsel For Ch. 11 Plan Support

    FTX Trading Ltd. has asked a Delaware bankruptcy judge for permission to enact a settlement with plaintiffs and counsel it's facing in multidistrict litigation in Florida, saying the proposed deal would prevent potentially costly legal tussles and bring the plaintiffs on board to support FTX's Chapter 11 plan.

  • September 26, 2024

    Stinson Adds Restructuring, Sports Atty From GrayRobinson

    Stinson LLP has picked up an experienced of counsel from GrayRobinson PA, who joins its bankruptcy and creditors' rights practice and sports and recreation practice in both Tampa and Wilmington, Delaware.

  • September 26, 2024

    Meet The Attorneys In Wheel Pros' Ch. 11

    Denver-based specialty tire and car accessory producer Wheel Pros has retained teams from Pachulski Stang Ziehl & Jones LLP and Kirkland & Ellis LLP as it plans to hand control of the company to lenders.

  • September 25, 2024

    Sullivan & Cromwell Didn't Ignore FTX 'Red Flags,' Report Says

    The Chapter 11 examiner appointed in the bankruptcy case of fallen cryptocurrency exchange FTX Trading determined Wednesday that debtor law firm Sullivan & Cromwell didn't ignore any "red flags" about FTX's misconduct related to a $500 million purchase of stock in financial service and digital trading platform Robinhood Markets Inc.

  • September 25, 2024

    8th Circ. Told Student Debt Relief Should Remain Blocked

    Seven Republican-led states are asking the Eighth Circuit to finalize its court order blocking the Biden administration from implementing its second attempt at student loan forgiveness, accusing the White House of "hiding the ball" on the true cost of the plan.

  • September 25, 2024

    Mining Cos. Say $505M J&J Deal Would Benefit Talc Claimants

    A pair of talc producers defended their proposed $505 million liability settlement with Johnson & Johnson at a hearing in Delaware bankruptcy court Wednesday, arguing that an objection from a group of insurers shouldn't derail an agreement that they believe would benefit claimants who alleged they were exposed to asbestos-contaminated talc.

  • September 25, 2024

    NYSE Cancels Proposal To Extend SPAC Merger Deadlines

    The New York Stock Exchange has pulled a proposal that would have provided special purpose acquisition companies with more time to complete mergers while remaining listed, several months after it sought regulatory approval for the extension.

  • September 25, 2024

    4 Things To Know About J&J's Latest Talc Bankruptcy

    Johnson & Johnson moved a newly created talc unit into Chapter 11 in Texas last week, renewing its efforts to address billions of dollars in potential liability tied to its talc products through bankruptcy.

  • September 25, 2024

    Tupperware OK'd To Temporarily Use Cash To Fund Ch. 11

    Iconic food storage and kitchenware brand Tupperware received a Delaware bankruptcy judge's signoff on Wednesday to use cash on hand to fund its operations and Chapter 11 case for the next two and a half weeks after the debtor and a group of secured lenders reached a bridge agreement to allow Tupperware to use cash collateral until mid-October.

  • September 25, 2024

    Fuel Refiner Vertex Hits Ch. 11 With $422M Debt, Lender Deal

    Oil refiner Vertex Energy filed for Chapter 11 protection with $422.5 million in debt and plans to pursue a sale under a prenegotiated restructuring agreement.

  • September 24, 2024

    J&J Talc Claims Paused, Silvergate Parent Files For Ch. 11

    A Texas bankruptcy judge has put on hold certain talc-related personal injury lawsuits against Johnson & Johnson, and Silvergate Capital has filed for Chapter 11 to liquidate assets following client losses tied to the FTX collapse. This is the week in bankruptcy.

  • September 24, 2024

    Revlon Talc Claimants Can Appeal Directly To 2nd Circ.

    A New York bankruptcy judge has found the Second Circuit can review his decision to reject 42 asbestos-tainted talc exposure claims against Revlon as having come too late because the claimants' appeal presents questions new and significant enough to justify skipping the district court.

  • September 24, 2024

    Yellow Corp. Can Depose Teamsters President In Ch. 11 Suit

    Bankrupt trucking firm Yellow Corp. can move forward with a deposition of Teamsters President Sean O'Brien, after a Delaware bankruptcy judge declined Tuesday to stay the discovery tied to lawsuits that were filed against the debtor over mass layoffs.

  • September 24, 2024

    Star Witness Against Bankman-Fried Gets 2 Years In FTX Case

    A Manhattan federal judge sentenced former cryptocurrency executive Caroline Ellison to two years in prison Tuesday, crediting her decision to testify against FTX founder Sam Bankman-Fried but saying the $11.2 billion fraud was too big to warrant a "get out of jail free card."

  • September 24, 2024

    NJ Judge Leaves J&J Ch. 11 Venue Change To Texas Judge

    A New Jersey bankruptcy judge on Tuesday declined the U.S. trustee's request to move Johnson & Johnson's latest talc-unit Chapter 11 from Texas to the Garden State, saying the issue could be as ably decided by a Texas court while avoiding a thorny issue of authority.

  • September 23, 2024

    J&J Talc Claims Paused In Latest Spinoff Ch. 11

    A Texas bankruptcy judge Monday froze certain talc personal injury litigation against Johnson & Johnson, saying a three-week administrative stay will give the court time to decide key jurisdictional issues in the Chapter 11 case of Red River Talc LLC, a newly created J&J spinoff and the pharmaceutical and cosmetics giant's latest attempt to settle claims in bankruptcy that its baby powder caused cancer.

  • September 23, 2024

    Mallinckrodt Brass Can't Avoid Investor Suit Over 2nd Ch. 11

    A New Jersey federal judge ruled Monday that senior leaders of drugmaker Mallinckrodt cannot escape a lawsuit brought by shareholders alleging the company tricked them into thinking it had recovered from bankruptcy and would make a $200 million payment to opioid claimants, finding the investors sufficiently pleaded securities law violations.

  • September 23, 2024

    Incora Judge To Consider Mediator Amid Ch. 11 Plan 'Logjam'

    A Texas bankruptcy judge on Monday instructed parties squabbling over aircraft parts supplier Incora's Chapter 11 exit plan to return to court this week with a proposal that could break a "logjam" in negotiations, saying he will appoint a mediator if one is needed.

  • September 23, 2024

    Decline And Fall: Brand Empires That Hit Bankruptcy

    When food container maker Tupperware filed for Chapter 11 in Delaware last week, disclosing more than $1 billion in liabilities and plans for a quick sale, it became the latest iconic brand to seek relief from financial woes in bankruptcy court, following in the footsteps of giants from Rite Aid to RadioShack.

  • September 23, 2024

    SunPower Gets OK For $45M Asset Sale, Ch. 11 Plan Vote

    A Delaware bankruptcy judge on Monday gave residential solar technology company SunPower Corp. the go-ahead for a $45 million sale of the majority of its assets and a creditor vote on its Chapter 11 plan.

  • September 23, 2024

    Cargo Airliner ESOP Participants Seek OK On $14.5M Deal

    Western Global Airlines and its investment manager will pay $14.5 million to end a proposed class action from two pilots for the cargo airliner alleging the company's employee stock ownership plan was mishandled, according to filings in Delaware federal court.

  • September 23, 2024

    Judge Recuses Self After Opening Jackson Walker Ethics Probe

    U.S. Bankruptcy Judge Marvin Isgur has asked a Texas federal court to investigate potential sanctions against Jackson Walker LLP for its failure to disclose a relationship between a firm partner and a federal judge, also telling the court he would recuse himself from any proceedings involving the ethics breach.

  • September 23, 2024

    J&J Accuses Beasley Allen Of Casting Bogus Talc Ballots

    Johnson & Johnson has accused the Beasley Allen Law Firm of casting about two dozen false ballots against the company's latest talc bankruptcy plan without voters' consent and urged a New Jersey federal court to remove the firm from the plaintiff's steering committee as a consequence.

Expert Analysis

  • How Cos. Can Leverage IP In Corporate Bankruptcy

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    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.

  • Avoiding Retail Bankruptcy As Economic Uncertainty Persists

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    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.

  • Banking Compliance Takeaways From Joint Agency Statement

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    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.

  • Litigation Funding Disclosure Key To Open, Impartial Process

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    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.

  • Law Firms Should Move From Reactive To Proactive Marketing

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    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.

  • Chapter 11 Ruling Signals Emphasis On Lockup Provisions

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    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.

  • Vendor Rights Lessons From 2 Chapter 11 Cases

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    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.

  • Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?

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    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.

  • E-Discovery Quarterly: Rulings On Hyperlinked Documents

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    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.

  • 3rd Circ. Ruling Shows Benefits Of IP Licenses In Bankruptcy

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    The Third Circuit’s recent ruling in Mallinckrodt’s Chapter 11 filing, which held that Mallinckrodt could sever its obligations to pay Sanofi royalties on sales of an autoimmune disease drug, highlights the advantages of structuring transactions as nonexclusive licenses for developers of intellectual property, say Gregory Hesse and Kaleb Bailey at Hunton.

  • Congress Must Increase Small Biz Ch. 11 Debt Cap

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    Congress must act to reinstate Subchapter V, which recently sunsetted when the debt threshold to qualify reverted from $7.5 million to just over $3 million, meaning thousands of small businesses will no longer be able to use the means of reorganization, says Daniel Gielchinsky at DGIM Law.

  • How To Grow Marketing, Biz Dev Teams In A Tight Market

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    Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.

  • Justices' Ch. 11 Ruling Is A Big Moment For Debtors' Insurers

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    The U.S. Supreme Court’s recent Truck Insurance v. Kaiser Gypsum ruling upends decades of Chapter 11 bankruptcy jurisprudence that relegated a debtor’s insurer to the sidelines, giving insurers a new footing to try and avoid significant liability, say Stuart Gordon and Benjamin Wisher at Rivkin Radler.

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