Mid Cap
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January 06, 2025
Silver Airways Seeks DIP Lender, Asset Buyer In Ch. 11
A Florida bankruptcy judge on Monday granted Silver Airways LLC permission to use cash collateral, and approved a slew of other customary first-day reliefs, to get by as it tries to secure a debtor-in-possession loan and an asset sale.
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January 06, 2025
Mich. Residents Say Solar Investors Can't Arbitrate Fraud Suit
Michigan residents who allege Florida investment firms funded a company that duped them into buying defective solar panels have urged a federal judge to deny the firms' bid to arbitrate or dismiss the claims, saying the court has already rejected the investors' arguments.
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January 06, 2025
Canadian Trucking Co. Halts Sale After Mitsubishi Objects
Pride Group Holdings Inc. told a Delaware bankruptcy judge Monday that the Canadian trucking company will no longer pursue a sale of shares in an affiliated entity that owns a Florida property, after a financial services provider backed by Mitsubishi objected to the sale.
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January 06, 2025
Giuliani Held In Contempt In $148M Defamation Row
A New York federal judge on Monday found Rudy Giuliani in contempt of court for failing to turn over evidence to two former Georgia election workers seeking to collect on a $148 million defamation judgment they secured against the former attorney to President-elect Donald Trump.
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January 06, 2025
Giuliani's Held In Contempt, Terraform Founder Denies Fraud
A Manhattan federal judge held Rudy Giuliani in contempt over a $148 million defamation judgment, after the former New York City mayor cited memory lapses during questioning about the case. Terraform Labs founder Do Kwon was arraigned in New York and denied orchestrating a $40 billion fraud, with a follow-up hearing scheduled for Jan. 8. Celsius Network appealed a Delaware bankruptcy judge's decision to deny its amended $444.6 million claim against FTX.
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January 06, 2025
Akoustis Says Ch. 11 Plan Handles IP Injunction Concerns
Radio frequency filter venture Akoustis Technologies Inc. has accused judgment creditor Qorvo Inc. of seeking to scuttle Akoustis' Chapter 11 stalking-horse sale in Delaware for competitive reasons beyond Qorvo's $38 million patent infringement judgment.
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January 06, 2025
US Trustee Opposes Fees For Plastic Co. Stalking Horse
The Office of the U.S. Trustee has objected to the bidding procedures in the bankruptcy of Plastic Suppliers Inc., arguing that the breakup fee isn't justified in the $13 million stalking-horse bid from Aluf Plastics.
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January 06, 2025
Press Release Distributor News Direct Hits Ch. 11 In Conn.
A corporate press release distributor filed for Chapter 11 bankruptcy protection in Connecticut with less than $50,000 in assets and over $5 million in liabilities.
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January 06, 2025
Girard Sharp Launches Into New Year With New Leadership
San Francisco-based Girard Sharp has kicked off the new year with a major leadership change, announcing Monday that Daniel C. Girard had stepped down as managing partner of the prominent plaintiffs complex litigation boutique he founded in 1995 and that longtime partner Dena C. Sharp was taking the reins.
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January 06, 2025
Pa. Coal Co. Hits Ch. 11 With Up To $50M In Debt, Sale Plans
Corsa Coal Corp., which operates coal mines in Pennsylvania and Maryland, filed for bankruptcy Monday saying it planned to sell itself in Chapter 11 after it wasn't able to secure a U.S. Department of Agriculture-backed loan fast enough to refinance some $16.3 million of debt.
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January 03, 2025
Pool Co. Denied New Trial On TM Claims After Winning $16M
A North Carolina pool parts supplier can't retry trademark infringement claims after securing a $16 million false advertising and unfair business practices judgment against a rival Chinese company accused of misleading customers, a federal judge ruled this week.
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January 03, 2025
NY Nursing Home Blames AG's 'Crusade' For Ch. 11
The owner of a 588-bed nursing facility on Long Island has filed for Chapter 11 protection in a New York bankruptcy court with more than $58 million in debt, saying it was the victim of a "crusade" and "smear campaign" launched by the state attorney general's office.
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January 03, 2025
Sales Drop, Debt, Competition Led Container Store To Ch. 11
Stiffer competition and reduced customer spending on plastic bins, closet organizers and other items from The Container Store Group Inc. have driven a decline in revenue for the retailer, leading it to pursue bankruptcy after unsuccessful attempts to find a buyer for the business.
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January 03, 2025
Giuliani Says Memory Faulty In Meandering NY Contempt Row
A Manhattan federal judge mulled a bid to hold Rudy Giuliani in contempt of a $148 million defamation judgment Friday, during a day of sparring in which the former New York City mayor repeatedly told counsel for two defamed Georgia poll workers that he doesn't remember case details.
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January 03, 2025
Silver Airways Hits Ch. 11 With Over $100M In Debt
Regional airline Silver Airways LLC is headed to bankruptcy court for a first-day hearing Monday, after recently launching a Chapter 11 case in Florida with at least $100 million in debt.
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January 03, 2025
Clark Hill Promotes Its Largest Membership Class
Clark Hill PLC has announced it broke a firm record when it kicked the new year off by elevating nearly 30 attorneys to the membership class, the largest group of promotions in the firm's history.
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January 02, 2025
Bankruptcy News You May Have Missed Over The Holiday
The Fifth Circuit sided with a group of lenders left out of a so-called uptier refinancing deal with mattress seller Serta Simmons, reversing a bankruptcy court's ruling in a closely watched case on liability management transactions; Purdue Pharma secured a one-month extension as its creditors and members of the Sackler family try to reach a settlement in mediation; and retail chain Big Lots reached an eleventh-hour deal to sell some of its stores and thwart a total liquidation.
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January 02, 2025
Bankrupt Pa. City Must Remit Casino Revenue, County Argues
Pennsylvania's Delaware County has asked the Third Circuit to undo a bankruptcy court's ruling that the financially ailing city of Chester is excused from paying the county revenue from gambling taxes because of the city's Chapter 9 proceedings, despite an ordinance mandating that the county get a cut of the money.
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January 02, 2025
Akoustis Foe Seeks Delay In Ch. 11 Bid Plan Approval
A business that won a $39 million intellectual property judgment against bankrupt radio frequency filter maker Akoustis Technologies has asked a Delaware bankruptcy court to postpone consideration of Akoustis's bidding procedures, saying the bidding procedures are intended to undermine the resolution of the IP case.
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January 02, 2025
Catching Up With New Bankruptcy Case Action
Biora Therapeutics filed for Chapter 11 with its plan to sell assets to fund ongoing clinical development. Ohio-based compostable film producer Plastic Suppliers sought bankruptcy protection, citing challenges from EU sanctions, pandemic impacts and market shifts. Chinese state-owned construction firm CCA Construction filed for Chapter 11 with up to $10 billion in debt, driven by geopolitical tensions and a $1.6 billion litigation judgment.
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January 02, 2025
TGI Fridays Gets OK For $35M Restaurant Sales
A Texas bankruptcy judge said Thursday she would allow TGI Fridays to accept a $34.5 million bid for nine of its restaurants from Mera Corp., a Mexico-based food service provider that outbid a company owned by a former TGI Fridays CEO.
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January 02, 2025
What Del. Legal Leaders Are Thinking About Heading Into '25
Figuring out how to best use generative artificial intelligence tools in the practice of law, attracting and retaining talent in a competitive legal market, maintaining Delaware's place in the corporate law space, the state of the economy, and the incoming presidential administration are among issues Delaware legal leaders are focused on as 2025 kicks off.
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January 01, 2025
Auto Supply Chain Susceptible To Tariff-Fueled Bankruptcies
Tariffs suggested by President-elect Donald J. Trump would hit an already precariously-positioned North American auto industry particularly hard, forcing price increases or cost-cutting measures to deal with the new trade barriers and leaving parts suppliers to make hard choices to stave off bankruptcy and protect the supply chain, experts say.
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January 01, 2025
Healthcare Restructuring Trends To Watch In 2025
With bankruptcy filings from the likes of hospital operator Steward Health Care, nursing home company Petersen Health and ventilator producer Vyaire Medical, the healthcare industry continued to face major challenges in 2024.
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January 01, 2025
What Lower Rates? Ch. 11s Expected To Stay Sticky In 2025
With the prospect of big interest rate cuts fading, rates may not dip low enough in 2025 to be a panacea for businesses struggling with high levels of debt, consumer frugality and uncertainty under a new administration.
Expert Analysis
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E-Discovery Quarterly: Recent Rulings On Text Message Data
Electronically stored information on cellphones, and in particular text messages, can present unique litigation challenges, and recent court decisions demonstrate that counsel must carefully balance what data should be preserved, collected, reviewed and produced, say attorneys at Sidley.
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How Banks Can Preserve Value Amid Corporate Default Surge
Amid a busy time for corporate bankruptcies, banks need a nuanced understanding of contractual rights, regulatory frameworks and evolving legal developments to protect and preserve their rights and interests, say attorneys at Phelps Dunbar.
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A Look At Subchapter V As Debt Limit Expiration Looms
If proposed legislation to extend Subchapter V’s debt eligibility ceiling sunset date in June is passed, bankruptcy professionals can seek ways to work with their local jurisdictions to advocate for code changes and guidance that bring more efficiencies and clarity to the process, say Matthew Brash at Newpoint Advisors and Melinda Bennett at Stretto.
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The Art Of Asking: Leveraging Your Contacts For Referrals
Though attorneys may hesitate to ask for referral recommendations to generate new business, research shows that people want to help others they know, like and trust, so consider who in your network you should approach and how to make the ask, says Rebecca Hnatowski at Edwards Advisory.
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Ch. 11 Case Shows Why Plan Acceptance Procedures Are Key
Sunland Medical's recent liquidation plan proposal is an important example of how top-notch judges and attorneys propose and analyze complex issues during the confirmation process, and the bankruptcy court was forward-thinking to consider the implications of such proposed treatment in the face of the Bankruptcy Code, says Kyle Arendsen at Squire Patton.
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Risks Of Rejecting Hotel Mgmt. Agreements Via Bankruptcy
In recent years, hotel owners have paid a high price when they attempted to use bankruptcy proceedings to prematurely terminate their hotel management agreements, highlighting that other options may be preferable, say attorneys at Jenner & Block.
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NC Rulings Show Bankruptcy Isn't Only For Insolvent Debtors
Two recent rulings from a North Carolina bankruptcy court show that lack of financial distress is not a requirement for bankruptcy protection, particularly in the Fourth Circuit, but these types of cases can still be dismissed for other reasons, say Stuart Gordon and Alexandria Vath at Rivkin Radler.
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Cannabis Ruling Lights Path For Bankruptcy Protection
A recent Massachusetts bankruptcy appellate court ruling in Blumsack v. Harrington leaves the door open for those employed in the cannabis industry to seek bankruptcy relief where certain conditions are met, but rescheduling marijuana as a Schedule III drug may complicate matters, say Jane Haviland and Kathryn Droumbakis at Mintz.
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What Bankruptcy Deadline Appeal May Mean For Claimants
If the Third Circuit reverses a recent appeal made in In re: Promise Healthcare, litigation claimants within the circuit will not be able to rely on the proof of claim process to preserve the claim — but if the court affirms, the U.S. Supreme Court may need to step in to resolve the circuit split on this issue, say attorneys at DLA Piper.
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Conn. Bankruptcy Ruling Furthers Limitation Extension Split
A recent Connecticut bankruptcy court decision further solidifies a split of authority on whether Bankruptcy Rule 9006(b) may be used to extend the limitations period, meaning practitioners seeking to extend should serve the motion on all applicable parties and, where possible, rely on the doctrine of equitable tolling, says Shane Ramsey at Nelson Mullins.
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A 5th Circ. Lesson On Preserving Indemnification Rights
The Fifth Circuit's recent decision in Raymond James & Associates v. Jalbert offers an important lesson for creditors and parties to indemnification agreements: If a debtor has indemnified a creditor, the creditor should consider participating in the bankruptcy case to avoid being deemed to have forfeited its indemnification rights, say Dania Slim and Alana Lyman at Pillsbury.
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Spartan Arbitration Tactics Against Well-Funded Opponents
Like the ancient Spartans who held off a numerically superior Persian army at the Battle of Thermopylae, trial attorneys and clients faced with arbitration against an opponent with a bigger war chest can take a strategic approach to create a pass to victory, say Kostas Katsiris and Benjamin Argyle at Venable.
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Del. Ruling Shows Tension Between 363 Sale And Labor Law
The Delaware federal court's ruling in the Braeburn Alloy Steel case highlights the often overlooked collision between an unstayed order authorizing an asset sale free and clear of successor liability under Section 363 of the Bankruptcy Code and federal labor law imposing successor liability on the buyer, say attorneys at Proskauer.