Mid Cap
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April 19, 2024
Casino SPAC Can Return Money, Not Shares, Chancery Rules
Stockholders in a blank-check company that failed to merge with a Philippines-based casino are entitled to a distribution from $37.5 million sitting in trust, but the company may not redeem any shares until an investor's Delaware lawsuit plays out, a Chancery Court vice chancellor said Friday.
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April 19, 2024
Casa Systems Won't Take $18M Rival Bid For Telecom Assets
Troubled communications equipment supplier Casa Systems told a Delaware bankruptcy judge Friday it received a new offer for its cloud and radio access network unit that would fetch more cash than a previously proposed transaction, but insisted on skipping a Chapter 11 auction, arguing the existing bidder brings less closing risks.
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April 19, 2024
Life Sciences Biz NanoString Gets OK For $393M Ch. 11 Sale
Insolvent biotech company NanoString can be sold to scientific instrument maker Bruker Corp., a Delaware bankruptcy judge ruled Friday, after the buyer clinched the winning bid during a 14-hour Chapter 11 auction.
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April 19, 2024
Bankruptcy Sets Stage For Big Healthcare Buying Frenzy
The recent surge of healthcare bankruptcy cases has created an environment where Chapter 11's unique rules make it a prime vessel for larger enterprises to gobble up the foundering healthcare businesses of a post-pandemic world, experts say.
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April 19, 2024
Bankruptcy Bill Seeks To Aid Sex Abuse Victims
A bill introduced in the U.S. House of Representatives would help sexual abuse victims by limiting the ability of their abusers to shield themselves by filing for bankruptcy, according to the bipartisan pair backing the proposed legislation.
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April 19, 2024
US Trustee Balks At 22% Rate On Petersen Health DIP Loan
The U.S. Trustee's Office objected Friday to senior living company Petersen Health Care's proposed bankruptcy financing, telling a Delaware judge that the combined 22% interest rate on the $45 million debtor-in-possession loan is "above market."
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April 19, 2024
US Trustee Balks At Releases In EV Charging Co.'s Ch. 11 Plan
The U.S. Trustee's Office on Friday objected to electric-vehicle charging company Charge Enterprises Inc.'s proposed Chapter 11 plan, telling a Delaware bankruptcy court it contains an "impermissibly broad" exculpation provision and the debtor should provide more factual information to support the release plan.
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April 19, 2024
Quinn Emanuel Faces Class Action Over Fla. Fee Agreements
The wife of luxury home developer Nir Meir, who was charged with falsifying records and defrauding investors, is hoping to avoid paying more than $360,000 in attorney fees to Quinn Emanuel Urquhart & Sullivan LLP in a proposed class action, saying her husband forged her signature on a fee agreement with the firm.
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April 19, 2024
9 Ex-Ingram LLP Attorneys Join Tarter Krinsky In New York
Tarter Krinsky & Drogin LLP announced that nine attorneys from the now-defunct firm Ingram LLP joined its New York office, expanding the firm's litigation, real estate, and landlord and tenant practice groups.
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April 19, 2024
Tex-Mex Chain Tijuana Flats' New Owner Puts It In Ch. 11
Fast-casual Tex-Mex dining chain Tijuana Flats said Friday it has changed ownership and filed for Chapter 11 protection in Florida bankruptcy court with more than $10 million in debt.
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April 19, 2024
Small Business Ch. 11 Is Cheaper, More Efficient, Report Finds
Small businesses that seek protection under a new subchapter of the U.S. Bankruptcy Code spend less money on their cases and approve reorganization plans both more often and more quickly, according to an American Bankruptcy Institute report released on Friday.
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April 18, 2024
Giuliani Wants To Hire Longtime Friend To Help With Ch. 11
Former New York City Mayor Rudy Giuliani asked a New York bankruptcy judge to hire his friend of 50-some years and former White & Case LLP partner Kenneth Caruso as a special litigation counsel for the $148 million defamation suit he is facing from two Georgia election workers.
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April 18, 2024
Careismatic Plans $782M Debt Equity Swap In Ch.11
A New Jersey bankruptcy judge on Thursday approved the disclosure statement of medical scrubs distributor Careismatic Brands LLC, which outlined a plan to wipe out $782 million in secured debt and reflected an overall settlement earlier that day with multiple secured and unsecured creditor groups.
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April 18, 2024
Senate Bill Would Extend Small Biz Ch. 11 Debt Cap Increase
A bipartisan group of U.S. senators are pushing new legislation that would prevent the current $7.5 million debt eligibility cap for Subchapter V bankruptcies, a simplified Chapter 11 process for small businesses and individuals, from reverting to the previous limit of $2.7 million in June.
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April 18, 2024
Judicial Ethics, Subchapter V Recs On Tap For ABI Meeting
Restructuring professionals are gathering this week in Washington, D.C., for the annual spring meeting of the American Bankruptcy Institute, where they will hear about issues ranging from trends in debtor-in-possession financing to the impact of artificial intelligence on bankruptcy proceedings.
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April 18, 2024
Meet The Attorneys In Oberweis Dairy's Ch. 11
Attorneys from Adelman & Gettleman Ltd. are representing Oberweis Dairy, a popular Illinois-based ice cream and dairy producer, as it seeks to deal with nearly $22 million in debt with an asset sale in Chapter 11.
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April 18, 2024
5th Circ. Says Subchapter V Limits Apply To Businesses
The Fifth Circuit has ruled that corporations are subject to the same restrictions on what debts they can have discharged through Subchapter V of the Bankruptcy Code's Chapter 11 as individuals using the streamlined insolvency process, countermanding a bankruptcy court's finding that the limitations didn't apply to a janitorial services provider.
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April 18, 2024
Bank Wants To Exit Suit Over $100M Of Special Needs Trusts
American Momentum Bank has for the second time asked a Florida federal judge to let it get out of a lawsuit from the parents of a disabled child claiming it abetted a predatory scheme to misappropriate more than $100 million of special needs trust assets, saying the parents failed to show what role the bank played in the alleged misdeeds.
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April 18, 2024
Bankrupt Oberweis Dairy Receives $20M Stalking Horse Bid
Oberweis Dairy Inc. has received a $20 million stalking horse bid for its assets and hopes to attract other potential buyers, its attorneys said at a bankruptcy hearing Thursday in Chicago, where it also received interim approval of a $1 million debtor-in-possession loan from its senior prepetition lender.
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April 18, 2024
J. Singer Law Group Adds New Bankruptcy Of Counsel
J. Singer Law Group PLLC has announced it hired bankruptcy attorney Ira Reid as the firm's new of counsel who will focus on its Chapter 11 bankruptcy practice.
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April 18, 2024
Biotech Co. NanoString Lands $393M Bid At Ch. 11 Auction
Scientific instrument maker Bruker Corp. is set to acquire insolvent biotechnology company NanoString for roughly $393 million in cash that would be used to repay creditors under the debtor's recently proposed Chapter 11 plan, a notice filed in Delaware's bankruptcy court shows.
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April 17, 2024
Ga. High Court Urged To Broaden Atty Malpractice Time Limit
Counsel for an Atlanta restaurateur urged the Supreme Court of Georgia on Wednesday to revive a malpractice claim against his former lawyer by allowing for a more expansive statute of limitations when breach of contract claims enter the mix.
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April 17, 2024
Chancery Orders Invictus Fund Manager To Hand Over Docs
A distressed credit and special situations fund that has battled its general partner and investment manager for months to hand over key records and documents won a partial victory in Delaware's Court of Chancery Wednesday when a vice chancellor found "repeated interference" with the fund's rights to information.
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April 17, 2024
Wilmington Trust Wants $33M For Defaulted Mortgage
Wilmington Trust accused a company in Delaware federal court of owing more than $33 million for a defaulted mortgage loan for a Wilmington, Delaware, property.
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April 17, 2024
4 Shocking Moments In Bankruptcy History
History is replete with bankruptcy filings that shocked the world due to their size, unexpectedness, criminal complications or final-nail-in-the-coffin quality — Lehman Brothers, FTX, Enron or even long-lost department store B. Altman & Co., for example. But what bankruptcy moments have most surprised practitioners? Below we recount four times when bankruptcy lawyers were taken aback by what they were witnessing.