Large Cap
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February 07, 2025
Zips Car Wash On Track For April Ch. 11 Plan Hearing
A Texas bankruptcy judge Friday gave Zips Car Wash permission to draw on $20 million in Chapter 11 financing under terms that will see the vehicle-cleaning chain seeking court approval for its equity-swap restructuring plan by mid-April.
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February 07, 2025
Under The Radar: Bankruptcy News You May Have Missed
A onetime financial adviser to UpHealth is opposing the debtor's Chapter 11 plan, Hearthside Food Solutions' official committee of unsecured creditors has balked at the company's executive bonus proposal in bankruptcy, and one-time investors in defunct real estate investment firm RealtyShares willingly dismissed a suit against the firm's former directors, litigation that had outlived the firm's Chapter 7 by more than a year.
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February 07, 2025
Syracuse Diocese Wants Rep For Unknown Abuse Claimants
The Roman Catholic Diocese of Syracuse asked a New York bankruptcy judge to appoint a representative for currently unknown sexual abuse claimants and to extend the deadline for the representative to vote on the diocese's Chapter 11 plan until the end of March.
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February 07, 2025
Mexican Lender Gets Cautious OK For UK Reorg Of US Debt
The England and Wales-based subsidiary of a Mexican industrial equipment leasing and financing group on Friday received Chapter 15 recognition of its U.K. restructuring from a New York bankruptcy judge, who expressed concern about the structure but said no creditors were harmed by it.
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February 07, 2025
4th Circ. Says LeClairRyan Founder May Duck Tax Liability
Defunct law firm LeClairRyan PLLC's operating agreement did not bar founder Gary LeClair from jumping ship in time to potentially dodge massive tax bills tied to the firm's collapse, the Fourth Circuit ruled Friday.
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February 07, 2025
Franchise Group Ch. 11 Plan Not 'Fully Baked,' Judge Says
A Delaware bankruptcy judge has declined to approve the disclosure statement for Franchise Group Inc.'s Chapter 11 plan, calling it not "fully baked" and saying the debtor should wait until after the date it is scheduled to sell company assets to solicit votes on its plan.
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February 06, 2025
Judge OKs 'Unorthodox' Deal To Fund Pa. Hospitals In Ch. 11
Bankrupt hospital operator Prospect Medical has agreed to put its four Philadelphia-area hospitals under receivership for the next 30 days while it hammers out a sale as part of a funding arrangement that a Texas bankruptcy judge on Thursday called "unorthodox."
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February 06, 2025
Wheel-Maker Accuride Upsizes Ch. 11 Loan By Another $20M
Wheel manufacturer Accuride Corp. received a Delaware bankruptcy judge's approval Thursday to tack on another $20 million to its Chapter 11 financing, funds that the company said it will use to support operations ahead of a hearing next week on confirmation of its reorganization plan.
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February 06, 2025
Zips Car Wash Hits Ch. 11 With Plan To Trim $279M Debt
Zips Car Wash LLC and nine affiliates filed for Chapter 11 protection in Texas, citing competition, climbing interest rates and nearly $654 million in funded debt, with a restructuring plan in hand to shave off about $279 million.
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February 06, 2025
Yellow Corp. Scores Partial Win In $540M Pension Plan Row
Bankrupt trucking firm Yellow Corp. has secured a partial victory on summary judgment in a $540 million fight with several union pension funds, with a Delaware bankruptcy judge saying the funds set the company's withdrawal liability too high.
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February 06, 2025
Girardi's Mental Evaluation At NC Prison Extended By 15 Days
A California federal judge Thursday ordered Tom Girardi's psychiatric evaluation at a North Carolina federal prison to be extended by 15 days, and she also lectured Girardi's public defender while saying she "could not have imagined" why it took 17 days to get his client's medical records sent to the facility.
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February 06, 2025
Ligado Gets Final OK For $115M In Ch. 11 Financing
A Delaware bankruptcy judge has given satellite communications company Ligado Networks LLC permission to take out up to $115 million in new money Chapter 11 financing.
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February 06, 2025
Big Lots Seeks Approval To Sell Corporate HQ For $36M
Bankrupt discount retail chain Big Lots is asking a Delaware bankruptcy judge for permission to sell its Ohio headquarters to hospital operator OhioHealth Corp. for $36 million a month after closing a deal to sell off nearly all of its other assets.
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February 05, 2025
Party City Reaches Interim Deal On Unpaid Rent
Party City received court approval Wednesday to continue using cash collateral as the bankrupt retailer continues to liquidate its assets, after agreeing to a deal with its unsecured creditors committee and several landlords who had objected to the request.
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February 05, 2025
US Trustee Objects To Releases In True Value Ch. 11 Plan
The U.S. Trustee's Office Tuesday asked a Delaware bankruptcy judge to reject the opt-out third-party releases in True Value Co.'s proposed Chapter 11 plan.
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February 05, 2025
Judge Nixes Jones' Ch. 7 Deal With Sandy Hook Families
A deal proposed by the Chapter 7 trustee in the bankruptcy case of right-wing conspiracy peddler Alex Jones that would have resolved the nearly $1.5 billion in claims held by the families of Sandy Hook school shooting victims failed to gain court approval Wednesday when a Texas judge said he couldn't grant the requested relief.
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February 05, 2025
Girardi Keese Trustee Sues NY Atty Who Funded Girardi
The bankruptcy trustee for disgraced California attorney Tom Girardi's defunct law firm is suing to prevent New York attorney Joseph DiNardo from discharging $7.5 million in his own bankruptcy, claiming DiNardo received the money by helping Girardi defraud his own clients.
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February 05, 2025
Purdue Pharma Seeks To Wind Down Pension Plan For $43M
Purdue Pharma LP has asked a New York bankruptcy judge for permission to terminate a pension plan that has more than 3,000 participants, arguing the present value of the plan's assets and favorable economic conditions make it a "particularly opportune time" to wind it down.
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February 04, 2025
BAPCPA At 20: A Legacy Of Reform, Good And Bad
Two decades after Congress enacted the most sweeping changes to bankruptcy law in modern history, Americans are still dealing with its most enduring legacy: shutting out middle-class consumer debtors from Chapter 7 protection in the name of preventing abuse of the system.
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February 04, 2025
Commercial Ch. 11s Up 16%, Outpacing Individual Filings
Commercial Chapter 11 filings rose by 16% in January compared to the same month a year before, exceeding the increase in consumer bankruptcy filings over the same period, according to data provided by legal tech firm Epiq AACER.
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February 04, 2025
Bankruptcy Group Of The Year: Paul Hastings
Paul Hastings LLP spent 2024 representing renowned bankruptcy cases, including FTX, Core Scientific, WeWork and Diamond Sports Group's Chapter 11, helping various creditors recover billions of dollars and overcome challenging restructuring hurdles, earning the firm a spot as one of the 2024 Law360 Bankruptcy Groups of the Year.
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February 04, 2025
Implant Maker Exactech Must Fix Disclosures For Ch. 11 Vote
A Delaware bankruptcy judge on Tuesday rejected medical implant maker Exactech Inc.'s bid to send its Chapter 11 plan out for voting, saying a disclosure statement attached to the proposal lacked critical information about how personal injury claims would be treated.
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February 04, 2025
King & Spalding Adds Restructuring Partners In New York
King & Spalding LLP said it has hired away two Alston & Bird partners for the firm's bankruptcy stable.
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February 03, 2025
Orrick Pressed On Past Work For SmileDirectClub Trustee
A Texas bankruptcy judge on Monday asked a law firm why it didn't disclose previous work it did for the Chapter 7 trustee liquidating SmileDirectClub when it applied to be special litigation counsel, saying he needs more information about Orrick Herrington & Sutcliffe LLP's work in connection to an ongoing investor lawsuit against the defunct teledentistry group's executives.
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February 03, 2025
Under The Radar: Bankruptcy News You May Have Missed
A New Jersey event venue, a lithium battery maker and the operator of one of the world's largest cobalt refineries hit Chapter 11; retailer Party City wants to beef up security for its current and former directors, citing threats of violence; and yet another former member of Byju's Alpha's top brass was sanctioned for contempt of court.
![a middle-aged white man with a grey beard and a baseball hat from the US Navy poses with a white woman wearing a white and blue polka dot sun hat. she's embracing him.](https://assets.law360news.com/2292000/2292619/bfc891c7d20d850c6cf8ba7b390f7e39d46993ce-higleys.jpg)
For These Victims, Death Came Before Bankruptcy Resolution
Thousands of people have died with no compensation in recent years as big institutions shield themselves in bankruptcy court from claims related to opioids, fraud, asbestos and sexual abuse, plaintiffs' lawyers say. Critics say it's an inherent part of a bankruptcy court system that helps insiders and hurts creditors.
![A Yellow Corp. truck is seen reflected in a mirror at a terminal in Orlando, Florida.](https://assets.law360news.com/2294000/2294321/327077a1a18eb7109a8dd0d627f3df994682afc3-yellow_trucking_company_filed_for_bankruptcy_and_is_closing_the_business_in_orlando,_florida,_us_-_07_aug_2023_23809.jpg)
Lessons From The 'Must-Read' Yellow Corp. WARN Decision
A Delaware bankruptcy judge's finding that defunct trucking giant Yellow Corp. violated the Worker Adjustment and Retraining Notification Act is a "must-read" for bankruptcy attorneys that has broad lessons for other cases and highlights the importance of paying attention to the details of the statute, experts told Law360.
![An exterior view of the Marriner S. Eccles Federal Reserve building in Washington on Jan. 21, 2024.](https://assets.law360news.com/2291000/2291758/cd920701c359ddf1e3e63e9a139fcc7ed742ade3-government_buildings_47028.jpg)
Wave Of Defaults Looms For Fed's Main Street Loans
Some businesses that took out big loans backed by American taxpayers during the COVID-19 pandemic have gone bankrupt, and the stage is set for a wall of similar debt to start crashing later this year when large payments come due.
Expert Analysis
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AI Will Soon Transform The E-Discovery Industrial Complex
Todd Itami at Covington discusses how generative artificial intelligence will reshape the current e-discovery paradigm, replacing the blunt instrument of data handling with a laser scalpel of fully integrated enterprise solutions — after first making e-discovery processes technically and legally harder.
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When Innovation Overwhelms The Rule Of Law
In an era where technology is rapidly evolving and artificial intelligence is seemingly everywhere, it’s worth asking if the law — both substantive precedent and procedural rules — can keep up with the light speed of innovation, says Reuben Guttman at Guttman Buschner.
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Adventure Photography Makes Me A Better Lawyer
Photographing nature everywhere from Siberia to Cuba and Iceland to Rwanda provides me with a constant reminder to refresh, refocus and rethink the legal issues that my clients face, says Richard Birmingham at Davis Wright.
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How Ch. 11 Can Alleviate Merchant Cash Advance Concerns
Merchant cash advance funding is one of the biggest challenges for small businesses today because funders are so prevalent, aggressive and expensive, but bankruptcy can provide several tools for dealing with MCA agreements that may allow the debtor business to restructure and survive, says Patricia Fugée at FisherBroyles.
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5 Ways To Create Effective Mock Assignments For Associates
In order to effectively develop associates’ critical thinking skills, firms should design mock assignments that contain a few key ingredients, from messy fact patterns to actionable feedback, says Abdi Shayesteh at AltaClaro.
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8 Lessons Yellow Corp. Layoffs Can Teach Distressed Cos.
A Delaware bankruptcy court’s recent decision, examining trucking company Yellow Corp.’s abrupt termination of roughly 25,500 employees, offers financially distressed businesses a road map for navigating layoffs under the Worker Adjustment and Retraining Notification Act, say attorneys at King & Spalding.
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Mentorship Resolutions For The New Year
Attorneys tend to focus on personal achievements or career milestones when they set yearly goals, but one important area often gets overlooked in this process — mentoring relationships, which are some of the most effective tools for professional growth, say Kelly Galligan at Rutan & Tucker and Andra Greene at Phillips ADR.
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Coaching Little League Makes Me A Better Lawyer
While coaching poorly played Little League Baseball early in the morning doesn't sound like a good time, I love it — and the experience has taught me valuable lessons about imperfection, compassion and acceptance that have helped me grow as a person and as a lawyer, says Alex Barnett at DiCello Levitt.
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5 Litigation Funding Trends To Note In 2025
Lawyers and their clients must be prepared to navigate an evolving litigation funding market in 2025, made more complicated by a new administration and the increasing overall cost of litigation, says Jeffery Lula at GLS Capital.
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Rethinking Litigation Risk And What It Really Means To Win
Attorneys have a tendency to overestimate litigation risk before summary judgment and underestimate risk after it, but an eight-stage litigation framework can clarify risk at different points and help litigators reassess what true success looks like in any particular case, says Joshua Libling at Arcadia Finance.
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Lessons From Two New Year's Eve Uptier Exchange Decisions
On the last day of 2024, two different courts issued important decisions relating to non-pro rata uptier exchanges — and while they differ, both rulings highlight that transactions effected in reliance on undefined terms in debt agreements come with increased risk, say attorneys at Simpson Thacher.
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Playing Rugby Makes Me A Better Lawyer
My experience playing rugby, including a near-fatal accident, has influenced my legal practice on a professional, organizational and personal level by showing me the importance of maintaining empathy, fostering team empowerment and embracing the art of preparation, says James Gillenwater at Greenberg Traurig.
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No, Litigation Funders Are Not 'Fleeing' The District Of Del.
A recent study claimed that litigation funders have “fled” Delaware federal court due to a standing order requiring disclosure of third-party financing, but responsible funders have no problem litigating in this jurisdiction, and many other factors could explain the decline in filings, say Will Freeman and Sarah Tsou at Omni Bridgeway.