Large Cap
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February 21, 2025
US Trustee Opposes Opt-Out Releases In Tehum Ch. 11 Plan
The U.S. Trustee's Office objected Friday to the opt-out mechanism for obtaining third-party releases in the Chapter 11 plan from prison healthcare provider Tehum Care Services, arguing that it makes the releases nonconsensual.
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February 21, 2025
Why EV Maker Nikola Pulled Into Ch. 11
Nikola Corp., maker of electric and hydrogen-powered trucks, struggled with financial difficulties common to its field, the costs of litigation in which it became embroiled and expenses tied to a voluntary battery recall, cumulatively leading it to bankruptcy.
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February 21, 2025
Latham Promotes 19 Counsel To Partner In US, Europe & Asia
Less than three months after electing two dozen associates to the partnership, Latham & Watkins LLP said it has elevated 19 counsel from 14 offices around the world to partner, effective March 1.
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February 20, 2025
Select SPAC Targets Are Soaring Ahead Of The Pack
A select breed of companies that went public through mergers with special purpose acquisition companies are performing well lately — hailing mostly from a few specific industries — in stark contrast to the vast majority of SPAC merger targets that have flopped over the past few years, according to data released on Thursday.
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February 20, 2025
J&J Says Spinoff Ch. 11 Best Chance For Talc Recoveries
Johnson & Johnson counsel and supporters of the Chapter 11 plan proposed by its talc spinoff Thursday told a Texas bankruptcy judge that the plan's $10 billion talc settlement is the best deal for thousands of claimants.
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February 20, 2025
Meet The Attys Guiding EV Maker Nikola's Ch. 11
A group of lawyers from Potter Anderson & Corroon LLP and Pillsbury Winthrop Shaw Pittman LLP is guiding Nikola Corp., a manufacturer of electric and hydrogen-powered trucks, in its Chapter 11, as the company plans to sell its assets after facing financial struggles that stemmed from a battery pack recall in 2023.
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February 20, 2025
Ex-Eletson Owners Given Reprieve On Ch. 11 Sanction Bid
The former owners and managers of Greek shipping group Eletson Holdings Inc. have until Monday to comply with the orders of a New York bankruptcy judge concerning the change in ownership of the business under a court-approved Chapter 11 plan, or they will face daily monetary sanctions.
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February 20, 2025
Terraform Ch. 11 Financial Adviser Overbilled, Objectors Say
An adviser to unsecured creditors in the Delaware Chapter 11 of defunct cryptocurrency software developer Terraform Labs has "unreliable" fee records, with some of its professionals billing over 400 hours a month across multiple bankruptcies, the U.S. Trustee's Office and a plan administrator have alleged.
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February 20, 2025
No Deal In Sight For DOJ's Case Against Amex GBT Merger
The Justice Department and American Express Global Business Travel appear unlikely to settle a government challenge to the planned $570 million purchase of CWT, according to a New York federal court filing that came just a day after the transaction got a boost from U.K. authorities.
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February 20, 2025
Spirit Airlines' Bankruptcy Plan Approved With Opt-Outs Intact
A New York bankruptcy judge said Thursday he will greenlight budget air carrier Spirit Airlines' Chapter 11 plan to hand control of the business to creditors and approve third-party releases that prompted objections from the U.S. Securities and Exchange Commission and others, setting up Spirit to exit bankruptcy and wipe out almost $800 million of debt.
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February 20, 2025
Forensic Firm Can't Take Control Of Giuliani Assets
A New York federal judge has denied a request by the forensic firm hired to probe Rudy Giuliani's assets to intervene in a lawsuit launched by two former Georgia poll workers who won a $148 million defamation award against him, preserving a settlement that the election workers and Giuliani reached last month.
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February 20, 2025
Yellow Corp. Urges Ch. 11 Judge To OK $11.5M Terminal Sales
Defunct trucking company Yellow Corp. asked a Delaware bankruptcy judge to sign off on the $11.5 million private sale of two leased truck terminals to ABF Freight System Inc.
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February 19, 2025
Ex-Perella Weinberg Partner Denies Plot To Split Firm
A former Perella Weinberg partner on Wednesday testified that he had no plans to break off and start his own restructuring advisory shop before the investment banking firm fired him for purportedly violating his nonsolicitation provisions of his partnership agreements.
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February 19, 2025
J&J Talc Unit Exec Defends Ch. 11 Plan On Stand
A top executive of Johnson & Johnson's latest talc spinoff spent a day on the stand in a Texas bankruptcy court taking questions regarding the company's relationship with Johnson & Johnson and its plans to settle talc liability in bankruptcy.
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February 19, 2025
Catching Up With New Bankruptcy Case Action
A New Jersey-based generic-drug maker entered Chapter 11, listing up to $50 million in debt and saying two secured loans were inhibiting its growth. A media production company that helps brands like Target sought Chapter 11 protection and disclosed $53.5 million in liabilities, noting that its struggles included being overleveraged. And a sustainable resource recovery company entered Chapter 7 with liabilities exceeding $100 million.
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February 19, 2025
Prospect Medical Blames Yale Lawsuit For Ch. 11 Filing
Bankrupt hospital operator Prospect Medical Holdings is seeking to convince a Connecticut federal judge to have a bankruptcy court oversee a $435 million lawsuit through which Yale New Haven Health is trying to back out of buying three Prospect hospitals, saying the case played a key role in its bankruptcy filing.
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February 19, 2025
Backup Infowars Bidder Wants Judge To Restart Auction
The backup bidder for Alex Jones' Infowars program has asked a Texas bankruptcy judge to restart an auction for the assets after a previous sale to the parent company of satirical newspaper The Onion was rejected in December.
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February 19, 2025
Silver Point Knocks SEC Suit Over Attorney Info Access Rules
Investment adviser Silver Point Capital LP said it did not need to write special rules banning a now-deceased former BigLaw bankruptcy attorney from sharing information between its business units, accusing the U.S. Securities and Exchange Commission of filing a "farfetched theory of noncompliance" in a Connecticut enforcement action.
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February 19, 2025
Conn's Can Sell Florida Unit's Property To AutoZone For $8M
A Texas bankruptcy judge on Wednesday approved a request from Conn's, a furniture and appliance retailer, for permission to sell some of its Florida-based subsidiary's real estate to auto parts chain AutoZone for $8.33 million.
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February 19, 2025
Franchise Group Gets Tentative Deal On Ch. 11 Voting Process
Retail chain operator Franchise Group Inc. and a group of lenders told a Delaware bankruptcy judge on Wednesday they were close to agreeing on a disclosure statement for Franchise Group's Chapter 11 plan that will let the debtor take votes on the proposed debt-for-equity and liquidation deal.
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February 19, 2025
Trustee Deal Clears Path For Steward To Tap Latham In Ch. 11
Hospital operator Steward Healthcare cleared up the only objection to hiring a second law firm in its Texas Chapter 11, striking an agreement with the Office of the U.S. Trustee to limit services it plans to seek from Latham & Watkins LLP after two of its bankruptcy attorneys joined the firm last year.
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February 19, 2025
Tupperware Still Pursuing Ch. 11 Plan After Sale To Lenders
Counsel for Tupperware told the Delaware bankruptcy court Wednesday the company needed more time to propose a confirmable Chapter 11 plan after it sold its business to a group of secured lenders.
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February 18, 2025
Wellpath Seeks March Ch. 11 Exit Despite Creditor Concerns
A Texas bankruptcy judge asked prison healthcare provider Wellpath Holdings to revise its proposed Chapter 11 plan disclosure statement after a lengthy hearing Tuesday where Wellpath underlined its need to quickly confirm a plan despite creditor concerns over the speed of the case.
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February 18, 2025
J&J Talc Unit Launches 2-Week $10B Ch. 11 Settlement Trial
A Johnson & Johnson spinoff began its case Tuesday for a $10 billion Chapter 11 settlement of the company's talc liability before a Texas bankruptcy judge while opponents of the deal questioned the legitimacy of the bankruptcy case and the plan vote.
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February 18, 2025
Willkie DQ'd, Guo Clawbacks Continue
Franchise Group must find new bankruptcy counsel after a judge in Delaware found Willkie Farr & Gallagher LLP was conflicted in its case. The court-appointed trustee investigating Miles Guo's shell companies got another deadline extension to chase down estate funds. Spirit Airlines is awaiting confirmation of its reorganization plan. And bankrupt bitcoin miner Rhodium Encore has hit back at its landlord in court, alleging a campaign of sabotage.
Expert Analysis
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Firms Must Offer A Trifecta Of Services In Post-Chevron World
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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How Cos. Can Leverage IP In Corporate Bankruptcy
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.
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Avoiding Retail Bankruptcy As Economic Uncertainty Persists
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.
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Banking Compliance Takeaways From Joint Agency Statement
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.
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Litigation Funding Disclosure Key To Open, Impartial Process
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.
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Law Firms Should Move From Reactive To Proactive Marketing
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.
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Chapter 11 Ruling Signals Emphasis On Lockup Provisions
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.
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Vendor Rights Lessons From 2 Chapter 11 Cases
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.
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Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?
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.
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E-Discovery Quarterly: Rulings On Hyperlinked Documents
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.
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3rd Circ. Ruling Shows Benefits Of IP Licenses In Bankruptcy
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.
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Congress Must Increase Small Biz Ch. 11 Debt Cap
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.
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How To Grow Marketing, Biz Dev Teams In A Tight Market
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.