Mid Cap
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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.
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June 11, 2024
AI Hiring Platform's Ex-CEO Charged With $27M Fraud
The founder of hiring startup Joonko Diversity Inc. has been charged with fraud, with prosecutors saying Tuesday that she deceived investors into dumping $27 million into a platform that supposedly used artificial intelligence to help companies recruit diverse job candidates.
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June 11, 2024
How Powerful Companies Profit From 'Unjust Debts' - Part 2
Companies that use Chapter 11 bankruptcy to deal with litigation over dangerous products they produced or other misconduct rely on a broad conception of what counts as a debt to prove their eligibility for bankruptcy relief — a privilege that regular people aren't afforded, according to a new book by a University of North Carolina School of Law professor.
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June 10, 2024
How The Bankruptcy System Became 'Unjust' - Part 1
Changes in bankruptcy law that have made it more difficult for individuals facing financial hardship to extinguish their debts and get a fresh start have also allowed businesses to use Chapter 11 as a "legal Swiss Army knife" to deal with issues that the system was never meant to handle, according to a book out Tuesday by a University of North Carolina School of Law professor.
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June 10, 2024
Bankrupt UpHealth Warned Of Criminal Charges In India
A court in India said it has received a criminal charge sheet issued by an investigative governmental agency in Calcutta against bankrupt American healthcare company UpHealth, targeting it and executives over accusations that they conspired to defraud a local healthcare system.
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June 10, 2024
High Court On Ch. 11, New Bank Rules, Alex Jones Ch. 7 Shift
The U.S. Supreme Court said an insurance company has "party in interest" standing to intervene in a Chapter 11 case, the U.S. Department of Justice's bankruptcy watchdog "modernized" its agreement for banks holding debtor funds, and recent motions could pivot Alex Jones and his media company's Chapter 11s to Chapter 7 liquidations.
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June 10, 2024
Giuliani's Ch. 11 Creditors Subpoena Sept. 11 Charity
Creditors of Rudy Giuliani are probing whether the former New York City mayor has been getting financial support from a nonprofit called Tunnel to Towers Foundation, which says its mission is to assist families of Sept. 11 first responders, according to a subpoena the creditors said they served Monday.
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June 10, 2024
3 Takeaways From Cigna's Win In 9th Circ. Rehab Claim Fight
The Ninth Circuit's recent decision finding Cigna is off the hook for $8.6 million in out-of-network mental health and substance use disorder treatment claims against employee benefit plans administered by the insurer could discourage similar litigation, benefits attorneys say. Here are three key takeaways from the decision.
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June 10, 2024
Fish Taco Chain Rubio's Can Tap $4.5M Ch. 11 Loan
Rubio's Coastal Grill received a Delaware bankruptcy judge's initial approval on Monday to borrow $4.5 million in Chapter 11 financing, starting the California-based fish taco chain on a road it hopes will lead to a sale of the debtor's remaining assets by the first week of August.
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June 10, 2024
Amid FBI Probe, Troubled Law Firm Gets Fees Win At 5th Circ.
An embattled Texas law firm has won another shot to secure fees for its work on hurricane-related cases in Louisiana, the Fifth Circuit ruled, one day after the FBI revealed it was investigating the firm over its client solicitation practices.
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June 10, 2024
Paul Hastings Restructuring Pro Rejoins Arnold & Porter
Arnold & Porter Kaye Scholer LLP announced on Monday the hiring of a former Paul Hastings LLP of counsel as a partner in its bankruptcy and restructuring practice out of Chicago.
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June 10, 2024
New 'Access DOJ' Aims To Nix Barriers, Boost Accessibility
The U.S. Department of Justice has announced the launch of an initiative to improve access to its programs and services, including an upcoming project to make it easier to report tips about crime or other violations of law.
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June 10, 2024
Pharmacy Biz Files Ch. 11 With More Than $235M In Debt
Illinois-based specialty pharmacy Optio Rx has filed for Chapter 11 protection in Delaware bankruptcy court with more than $235 million in debt and an agreement with creditors for a partial debt-for-equity swap.
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June 07, 2024
11th Circ. Urged To Undo Exclusion Of $80M Asset Valuation
A trustee for creditors of ATIF Inc. told the Eleventh Circuit on Friday that a trial judge erred in excluding an expert's $80 million valuation of the bankrupt title insurance underwriter's 2015 transfer of assets to Old Republic National Title Insurance Co.
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June 07, 2024
Brewery Wants Extra Damages For Co-Owner's 'Brazen' Theft
A Colorado brewery accusing a former manager of embezzling hundreds of thousands of dollars has asked a state court for permission to seek exemplary damages, saying there's plenty of evidence the former manager willfully stole the money for himself and competing businesses he had a stake in.
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June 07, 2024
Allegiance Can Pay Professional Fees Over Creditor Objection
A Delaware bankruptcy judge said Friday that bankrupt mining operation Allegiance Coal USA can begin to pay approximately $5.7 million in professional fees using cash left in its estate after its Chapter 11 reorganization bid flopped.
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June 07, 2024
'Deceit On Deceit': 7th Circ. OKs Atty's Asset-Hiding Sentence
The Seventh Circuit Court of Appeals upheld a Chicago-area lawyer's three-year sentence for hiding over $350,000 in her brother's bankruptcy, finding two sentence enhancements were properly applied since she "layered deceit upon deceit" to try to conceal assets and cover her tracks.
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June 07, 2024
Judge Agrees To DQ Houston Firm In Fight Over MMA Law
A Texas bankruptcy judge sided with troubled Houston firm MMA Law and agreed this week that another Houston firm, Okin Adams Bartlett Curry LLP, had received confidential information from MMA Law and should be disqualified from representing its creditors.
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June 07, 2024
Acorda Therapeutics Gets OK On $185M Ch. 11 Sale To Merz
Drugmaker Acorda Therapeutics Inc. received a New York bankruptcy judge's approval Friday to complete a $185 million sale of its assets to a fellow pharmaceutical company, allowing Acorda to move ahead with a Chapter 11 plan to wind down its business.
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June 07, 2024
The Supreme Court's Week: By The Numbers
The justices issued three opinions this week, including a split one over the government's responsibility for Native American healthcare costs, and unanimous rulings about who has standing to challenge a bankruptcy plan and whether stock redemptions should be treated as liabilities when calculating estate tax. Here, Law360 Pulse takes a data-driven dive into the week that was at the U.S. Supreme Court.
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June 07, 2024
Meet The Attorneys In Rubio's Coastal Grill's Ch. 11
A team of lawyers with experience in asset sales and restaurants from Raines Feldman Littrell LLP and Whiteford Taylor & Preston LLP is helping steer fish taco chain Rubio's Coastal Grill, founded in San Diego in 1983, through its second Chapter 11 case in four years.
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June 07, 2024
Patent Firm Seeks To Ax Claim Over £1.5M Settlement Advice
Patent solicitors Atkinson Wheller Ltd. asked a court Friday to throw out a negligence claim brought on behalf of a former client, because the deed transferring the claim to a law firm was "void and unenforceable."