Mid Cap
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October 16, 2025
Under The Radar: Bankruptcy News You May Have Missed
The Ninth Circuit supported a man's bid to protect an Arizona property and his RV from his Chapter 7 trustee, a bankrupt vaccine maker struck a deal with the federal government to allow an asset sale hearing so long as government property is not affected, and a New Jersey federal judge stood by his ruling in a copyright suit between an attorney's film company and Netflix. Here are some of the bankruptcy-related stories you might have missed in the last week.
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October 16, 2025
Reed Smith Booted From Eletson Ch. 11 Over Clients' Existence
A New York bankruptcy judge disqualified Reed Smith LLP from continued work in the Chapter 11 case of reorganized oil and gas shipping company Eletson Holdings on Thursday, saying the law firm's clients no longer exist.
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October 16, 2025
Insurance Litigation Week In Review
Illinois' insurance regulator demanded that State Farm turn over data over its homeowners insurance business, the Sixth Circuit affirmed class certification in a dispute over State Farm's payments for totaled vehicles, and the Eleventh Circuit ruled that a policyholder's untimely notice doomed coverage for a gas station's underground fuel tank leak. Here, Law360 takes a look at the past week's top insurance news.
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October 16, 2025
Hospital Insurer Seeks Ch. 15 After NY Child Abuse Claims
Northeast Insurance Co., a captive insurer for several hospitals and a Jewish nonprofit, asked a New York bankruptcy judge for Chapter 15 recognition of its Bermuda liquidation filing, saying it was rendered insolvent by claims stemming from the state's Child Victims Act.
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October 16, 2025
Meet The Attys Serving Up Expertise In Razzoo's Ch. 11
Cajun restaurant chain Razzoo's Inc. has put together a triumvirate of attorneys from Okin Adams Bartlett Curry LLP to assist it in using Chapter 11 to restructure and stage a possible future expansion.
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October 15, 2025
$60M Deal Gets Final OK Over Adviser's Role In Ponzi Scheme
An Illinois state judge on Wednesday gave the final nod to a settlement deal that includes a $60 million judgment, ending investors' negligence claims against their investment adviser, though claims remain ongoing against a movie producer who allegedly misused their investment funds.
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October 15, 2025
Kal Freight Trust Accuses Ex-Owners Of Siphoning Funds
The liquidating trust for Kal Freight Inc.'s estate has sued several companies in Texas bankruptcy court, alleging they were complicit in a scheme orchestrated by its former owners to siphon millions of dollars from the debtor and its affiliates, even while it was in Chapter 11, by making the business overpay for expenses and taking advantage of its fuel reimbursements.
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October 15, 2025
Catching Up With New Bankruptcy Case Action
A string of real estate owners and developers sought Chapter 11 protections. The publisher behind a 1970s science fiction magazine is looking to liquidate in Chapter 7. A Florida physician group said it's hoping to cut down on its debt and restructure through Chapter 11. And a mid-Atlantic construction equipment dealer owned by a Texas private equity group filed for Chapter 11.
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October 15, 2025
Bankruptcy Can't End Caterpillar Privacy Suit, Ex-Worker Says
A former Caterpillar employee urged an Illinois federal judge on Tuesday not to let his bankruptcy spell doom for his lawsuit claiming the machinery manufacturer illegally collects applicants' family medical histories, arguing he properly used a 'wildcard exemption' to shield his assets from creditors.
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October 15, 2025
Syracuse Diocese Gets OK For More Insurance Settlements
A New York bankruptcy judge Wednesday approved nine remaining settlements with insurance companies for the Roman Catholic Diocese of Syracuse as part of its Chapter 11 plan, following her approval of two earlier deals with insurers in August.
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October 15, 2025
How Dallas Emerged As Hotspot For Complex Ch. 11 Cases
When big U.S. companies file for bankruptcy protection, they're increasingly doing so in Dallas, thanks to the depth of experience of its bench, streamlined procedures for complex Chapter 11 cases and a vibrant local economy, experts told Law360.
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October 15, 2025
AlixPartners Earns $6M For Work On Party City Ch. 11
Consulting firm AlixPartners received a Texas bankruptcy court's approval Wednesday to be paid nearly $6.4 million in professional fees and expenses for its work as a restructuring advisor for insolvent party supply retailer Party City.
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October 15, 2025
Crowell & Moring Adds Seasoned Healthcare Trial Atty
Crowell & Moring on Wednesday announced that it is expanding its healthcare team with the addition of a first-chair trial attorney who co-founded the healthcare practice at Robins Kaplan LLP, where he was most recently a partner.
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October 15, 2025
Razzoo's Restaurant Chain Gets 3-Member Creditors Committee
The Office of the U.S. Trustee has appointed an unsecured creditors committee in Cajun restaurant chain Razzoo's Inc.'s Chapter 11 case composed of My Tech Texas LLC, South Loop Development LLC and Sabine 2016-1 LLC.
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October 15, 2025
Chamberlain Hrdlicka Adds Eversheds Attorney In Texas
Chamberlain Hrdlicka White Williams & Aughtry has boosted its bankruptcy team with the addition of a shareholder who previously co-managed the Houston office of Eversheds Sutherland, where he practiced for over two decades.
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October 15, 2025
NYC Hotel Must Hand Over Tax Credits In Bankruptcy
The owners of a boutique hotel in Brooklyn and its management company must return pandemic-era refundable tax credits that they received as the hotel filed for Chapter 11 bankruptcy protection, a New York bankruptcy judge ruled, saying they had unfairly pocketed the money at the bankruptcy estate's expense.
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October 15, 2025
Fiber Co. Tilson Gets OK To Sell Gigapower Contract Claims
A Delaware bankruptcy judge on Wednesday gave Tilson Technology Management permission to sell its breach of contract claims stemming from the project that sent the fiber network developer into Chapter 11.
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October 14, 2025
Crypto Firm JKL's Liquidators Look To Secure Ch. 15 In NY
The liquidators for British Virgin Islands-based cryptocurrency investment firm JKL Digital Capital Ltd. have filed for Chapter 15 recognition in New York, saying the debtor has been uncooperative after it was forced into liquidation earlier this year by its only creditor, TGT LP.
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October 14, 2025
Higher Ground Ch. 11 Docs Approved Despite Short Notice
A Texas bankruptcy judge approved the Chapter 11 plan disclosure statement of Montessori school owner Higher Ground Education Tuesday, but cautioned the debtor and other parties that expedited hearings on plan documents were becoming too common in the district.
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October 14, 2025
First Brands CEO Resigns, Spirit Wins $200M DIP Facility
Bankrupt auto parts maker First Brands' founder stepped down as CEO. Spirit Airlines won approval for $200 million in debtor-in-possession financing and a settlement with its lessor. Global Wound Care warned that delayed Medicare payments, worsened by the government shutdown, threaten its liquidity. And a Delaware judge approved CareerBuilder + Monster's Chapter 11 plan. This is the week in bankruptcy.
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October 14, 2025
SilverRock Says $65M Real Estate Sale Maximizes Value
A witness for SilverRock Development defended the insolvent California developer's request to sell its assets for $65 million, telling the Delaware bankruptcy court Tuesday that selling the site as a unit to an affiliate of Turnbridge Equities will maximize its value.
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October 14, 2025
Catching Up With Delaware's Chancery Court
Last week at the Delaware Chancery Court, Vice Chancellor Lori W. Will ruled that Carlos Vasallo remains the CEO of Caribevision TV Network LLC, finding that majority investors' attempt to remove him under a defective 2019 agreement was invalid for lack of proper notice.
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October 14, 2025
Comics Publisher Humanoids Files Ch. 7
Humanoids Inc., a comics publisher best known as the originator of the Heavy Metal comic, has filed for Chapter 7 in Delaware bankruptcy court with $10 million to $50 million in debt.
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October 14, 2025
Yield10 Bioscience Gets OK For Ch. 11 Liquidation Plan
The Chapter 11 liquidation plan from agriculture company Yield10 Bioscience received approval Tuesday from a Delaware bankruptcy judge, setting up general unsecured creditors to receive about 20% recoveries.
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October 14, 2025
How 'Debt's Grip' Shows Up In Consumer Bankruptcies: Part 2
Published in August, "Debt's Grip: Risk and Consumer Bankruptcy" looks at a sample of U.S. Chapter 7 and 13 consumer bankruptcies filed between 2013 and 2023, painting a picture of people's debts, demographics and lives before bankruptcy.
Expert Analysis
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How Methods Are Evolving In Textualist Interpretations
Textualists at the U.S. Supreme Court are increasingly considering new methods such as corpus linguistics and surveys to evaluate what a statute's text communicates to an ordinary reader, while lower courts even mull large language models like ChatGPT as supplements, says Kevin Tobia at Georgetown Law.
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Why Attorneys Should Consider Community Leadership Roles
Volunteering and nonprofit board service are complementary to, but distinct from, traditional pro bono work, and taking on these community leadership roles can produce dividends for lawyers, their firms and the nonprofit causes they support, says Katie Beacham at Kilpatrick.
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Ch. 11 Ruling Shows Early Attempt To Tackle Purdue Fallout
A Delaware bankruptcy court’s recent ruling in Parlement Technologies’ Chapter 11 case, which denied a bid by Parler’s former owner to extend its bankruptcy stay to nondebtors, illustrates early efforts to grapple with the U.S. Supreme Court's decision in Purdue Pharma for a recurring bankruptcy issue, say Daniel Lowenthal and Jonah Wacholder at Patterson Belknap.
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9 Liability Management Tips As Debt Maturity Cliff Looms
As the debt maturity cliff swiftly approaches in this challenging environment, attorneys at Winston & Strawn highlight the top considerations for boards of directors and finance professionals to think about when structuring and executing liability management transactions, including reviewing capital structure, evaluating debt covenants, and more.
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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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Bankruptcy Courts May Be Budding Open To Cannabis Cases
Two recent California bankruptcy court rulings, denying motions to dismiss the respective debtors' bankruptcies, provide persuasive authority to allow cannabis debtors the protections of federal bankruptcy law, say Noah Weingarten and Bethany Simmons at Loeb & Loeb.
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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.