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Bankruptcy
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August 22, 2025
CFPB Inks Synapse Deal That Opens Door To Consumer Relief
The Consumer Financial Protection Bureau has reached a settlement with the bankruptcy trustee for Synapse Financial Technologies Inc. that could unlock millions of dollars in relief for consumers whose funds were stranded in the middleware provider's collapse.
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August 22, 2025
Stoli Offers Revised Ch. 11 Plan With Lender Backstop
Vodka maker Stoli Group USA on Friday told a Texas bankruptcy judge it has modified its plan to partially pay off its secured debt with liquor by giving the lender a partial real estate backstop, but that it still hopes to pay off much of the loan with barrels of unfinished bourbon.
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August 22, 2025
Tribe Member Can't Discharge Tax Debt, 10th Circ. Affirms
An Oklahoma federal court correctly affirmed a bankruptcy court's refusal to reopen a case brought by a member of the Muscogee Creek Nation who claimed his tax debt should have been discharged in bankruptcy, the Tenth Circuit said.
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August 22, 2025
Compostable Film Co. Nets Approval Of Ch. 11 Plan
A New Jersey bankruptcy judge has confirmed the liquidation plan of Ohio-based compostable film producer Plastic Suppliers Inc. after a hearing on approval for the slightly amended proposal that will see some unsecured claims paid out of a liquidation trust.
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August 21, 2025
Nikola SPAC, Related Settlements Reach $33.75M In Del.
A multi-court string of settlements has produced a $33.75 million proposed payout for stockholders who alleged in direct and derivative state and federal actions that they were misled in deals that took electric vehicle maker Nikola Corp. public.
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August 21, 2025
'Sustainable' Fintech Leader Cops To $248M Investor Fraud
The co-founder of bankrupt financial services company Aspiration Partners Inc. agreed on Thursday to plead guilty to defrauding investors and lenders.
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August 21, 2025
BlockFi Judge Urged To OK $13M Deal As Objector Withdraws
Investors who reached a $13.2 million settlement with the failed cryptocurrency lender BlockFi Inc. have urged a federal judge to move forward with the plan now that a class member has withdrawn his objections to the deal.
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August 21, 2025
Claire's Gets Interim Approval For $22.5M DIP Facility
A Delaware bankruptcy judge on Thursday gave interim approval to bankrupt jewelry chain Claire's to receive a $22.5 million debtor-in-possession facility from a private holding company that plans to buy the majority of the company's U.S. stores through an asset purchaser agreement.
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August 21, 2025
Nikola Ch. 11 Plan Ignores Trump Pardon, Founder Says
Trevor Milton, the founder and former CEO of electric-truck maker Nikola who was convicted of securities fraud, has asked the Delaware bankruptcy court not to allow the company to subordinate his $69 million claim, saying its Chapter 11 plan doesn't accurately account for the full presidential pardon he received earlier this year.
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August 21, 2025
Pa. City Water Dept. Fights Bid To Sanction Counsel
The Chester Water Authority has urged a Pennsylvania bankruptcy court to reject the city's bid to recover about $140,000 in attorney fees as sanctions, arguing any delay in producing documents was necessary to comply with a state confidential information law.
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August 21, 2025
Ore. Whiskey Distillery Asks To Add $500K To Ch. 11 Loan
Portland, Oregon-based whiskey producer House Spirits has asked a Delaware bankruptcy judge for permission to borrow an additional $500,000 in cash to finance its Chapter 11 case, raising the amount of its debtor-in-possession loan to more than $2 million.
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August 21, 2025
Healthcare Co. Modivcare Hits Ch. 11 To Cut $1.1B Of Debt
Technology-enabled healthcare services company Modivcare Inc. filed for Chapter 11 protection in Texas bankruptcy court with plans to recapitalize its balance sheet and cut $1.1 billion of debt.
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August 20, 2025
Judge Keeps Yale-Prospect Medical Sale Feud In Ch. 11 Court
A Texas bankruptcy judge on Wednesday paused Yale New Haven Health Services Corp.'s request to reopen a $435 million Connecticut feud over a deal to purchase three hospitals from debtor Prospect Medical Holdings Inc., saying she first wants to hear Prospect's plan to repair the troubled contract.
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August 20, 2025
States Say Kidde-Fenwal Ch. 11 Disclosures Still Inadequate
Attorneys for seven states and Washington, D.C., have told a Delaware bankruptcy court that firefighting foam maker Kidde-Fenwal Inc. failed to meet court-directed disclosure statement requirements for its latest, fifth-amended Chapter 11 liquidation plan and called for rejection of the document.
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August 20, 2025
US Trustee Seeks Two-Year Bankruptcy Ban For NYC Pot Club
The U.S. Trustee's Office has urged a New York bankruptcy judge to block a self-described cannabis club from filing for bankruptcy for two years, saying the organization has filed a string of recent Chapter 11 petitions to thwart evictions.
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August 20, 2025
NC Bankruptcy Atty Charged With 2nd-Degree Murder
A North Carolina bankruptcy attorney is facing murder charges after police said he shot and killed a 43-year-old man in a small town in the mountains over the weekend, court records show.
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August 20, 2025
IRS Lost Lien In Bankruptcy, Man Says In $28M Tax Battle
The Internal Revenue Service jettisoned any federal tax lien it claims to have against a man by filing an unsecured claim in his bankruptcy case, he told a Florida federal court Wednesday in response to the government's $28 million lawsuit against him.
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August 20, 2025
Claire's Pitches Over $104M Sale Of US Stores In Ch. 11
Bankrupt jewelry chain Claire's announced plans Wednesday to sell intellectual property and some of its U.S. stores to a private holding company for $104 million in cash as well as other inducements.
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August 19, 2025
PE Firm Hit With Contempt, Receiver In Del. Over Legal Bills
A magistrate in the Delaware Chancery Court has entered an order for contempt and sanctions, as well as a receivership, against private equity firm 777 Partners in its former chief financial officer's suit seeking advancement of legal fees in connection with a fraud investigation and multiple lawsuits related to the company's business.
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August 19, 2025
Family Alleging Firm's Girardi Conflict Denied Partial Win
A Los Angeles judge Tuesday denied a family's motion seeking judgment on declaratory relief claims in a $1.8 million malpractice lawsuit against a firm that represented it in recovering millions lost in Girardi Keese's embezzlement scandal, saying disputed facts remain in the "unusual" case.
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August 19, 2025
Judge To Confirm Scanrock's Ch. 11 Plan After Settlement
A Texas bankruptcy judge on Tuesday conditionally confirmed the Chapter 11 plan of hydrocarbon driller Scanrock Oil & Gas, after the debtor resolved objections from parties including an ad hoc group, certain creditors and the U.S. Small Business Administration.
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August 19, 2025
Prospect Medical Says Yale Deal Is Top Offer For Hospitals
Hospital operator Prospect Medical Holdings Inc. has asked to assume a $435 million pre-bankruptcy agreement to sell its three Connecticut hospitals to Yale New Haven Health Services Corp., arguing it contains the "highest possible recovery" for its creditors.
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August 19, 2025
Judge Keeps Dr. Phil Media Biz In Ch. 11, Is Up To Boost DIP
A Texas bankruptcy judge on Tuesday suggested he would approve more postpetition financing for a bankrupt broadcaster co-founded by Dr. Phil once an agreed upon order was before him, while also denying Sidley Austin's bid to stop representing the debtor and refusing to dismiss the case.
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August 19, 2025
Sunnova's $118M Sale Can Proceed Despite Bank's Protest
A Texas bankruptcy judge Tuesday declined to undo a $118 million sale of almost all the assets of solar panel business Sunnova Energy International Inc., rejecting a St. Louis-area bank's argument that the debtor failed to disclose that nondebtor assets would be part of the transaction.
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August 19, 2025
Linqto Says Ch. 11 Plan Will Have In-Kind Customer Payment
Linqto and its unsecured creditors committee told a Texas bankruptcy judge Tuesday that they have come to an agreement to give customers the chance for in-kind payment in the investment platform's Chapter 11 plan.
Expert Analysis
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Series
Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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Navigating The Bankruptcy Terrain After Purdue Pharma
The U.S. Supreme Court’s June ruling in Harrington v. Purdue Pharma is having a significant impact on bankruptcies, with recent cases addressing nonconsensual third-party releases and opt-out mechanisms, and highlighting strategies practitioners can employ to avoid running afoul of the decision, say Brett Axelrod and Agostino Zammiello at Fox Rothschild.
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.
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Opinion
Congress Can And Must Enact A Supreme Court Ethics Code
As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.
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Series
The Pop Culture Docket: Justice Lebovits On Gilbert And Sullivan
Characters in the 19th century comic operas of Gilbert and Sullivan break the rules of good lawyering by shamelessly throwing responsible critical thought to the wind, providing hilarious lessons for lawyers and judges on how to avoid a surfeit of traps and tribulations, say acting New York Supreme Court Justice Gerald Lebovits and law student Tara Scown.
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How 9th Circ. Ruling Expands Bankruptcy Trustees' Powers
The Ninth Circuit recently held in The Lovering Tubbs Trust v. Hoffman that a trustee can avoid intentionally fraudulent transfers, even if no creditor suffered harm as a result, materially strengthening bankruptcy trustees' powers, say Robert Klyman and Rod Kazempour at DLA Piper.
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State Of The States' AI Legal Ethics Landscape
Over the past year, several state bar associations, as well as the American Bar Association, have released guidance on the ethical use of artificial intelligence in legal practice, all of which share overarching themes and some nuanced differences, say Eric Pacifici and Kevin Henderson at SMB Law Group.
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8 Childhood Lessons That Can Help You Be A Better Attorney
A new school year is underway, marking a fitting time for attorneys to reflect on some fundamental life lessons from early childhood that offer a framework for problems that no legal textbook can solve, say Chris Gismondi and Chris Campbell at DLA Piper.
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3rd Circ. Hertz Ruling Highlights Flawed Bankruptcy Theory
The Third Circuit, in its recent Hertz bankruptcy decision, became the latest appeals court to hold that noteholders were entitled to interest before shareholders under the absolute priority rule, but risked going astray by invoking the flawed theory of code impairment, say Matthew McGill and David Casazza at Gibson Dunn.
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Opinion
This Election, We Need To Talk About Court Process
In recent decades, the U.S. Supreme Court has markedly transformed judicial processes — from summary judgment standards to notice pleadings — which has, in turn, affected individuals’ substantive rights, and we need to consider how the upcoming presidential election may continue this pattern, says Reuben Guttman at Guttman Buschner.
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Series
Playing Diplomacy Makes Us Better Lawyers
Similar to the practice of law, the rules of Diplomacy — a strategic board game set in pre-World War I Europe — are neither concise nor without ambiguity, and weekly gameplay with our colleagues has revealed the game's practical applications to our work as attorneys, say Jason Osborn and Ben Bevilacqua at Winston & Strawn.
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Mental Health First Aid: A Brief Primer For Attorneys
Amid a growing body of research finding that attorneys face higher rates of mental illness than the general population, firms should consider setting up mental health first aid training programs to help lawyers assess mental health challenges in their colleagues and intervene with compassion, say psychologists Shawn Healy and Tracey Meyers.
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Series
Collecting Art Makes Me A Better Lawyer
The therapeutic aspects of appreciating and collecting art improve my legal practice by enhancing my observation skills, empathy, creativity and cultural awareness, says attorney Michael McCready.
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Using Primacy And Recency Effects In Opening Statements
By understanding and strategically employing the primacy and recency effects in opening statements, attorneys can significantly enhance their persuasive impact, ensuring that their narrative is both compelling and memorable from the outset, says Bill Kanasky at Courtroom Sciences.
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Litigation Inspiration: Honoring Your Learned Profession
About 30,000 people who took the bar exam in July will learn they passed this fall, marking a fitting time for all attorneys to remember that they are members in a specialty club of learned professionals — and the more they can keep this in mind, the more benefits they will see, says Bennett Rawicki at Hilgers Graben.