Mid Cap
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June 20, 2024
Boies Schiller Tapped To Represent Ex-Judge In Romance Suit
A former Texas bankruptcy judge has brought on Boies Schiller Flexner LLP attorneys to defend him against a racketeering lawsuit from a barge business over his undisclosed romantic relationship with a then-Jackson Walker LLP attorney involved in the company's bankruptcy case.
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June 20, 2024
US Trustee Says Bittrex Still Owes Sanctioned Creditors
The U.S. Trustee asked a Delaware judge not to close the Chapter 11 case of crypto exchange Bittrex Inc., arguing that the estate must first get government permission to settle up with creditors in countries under U.S. sanctions.
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June 18, 2024
Judge Skeptical Of Houston Developer's $2M DIP Bid In Ch. 11
The insolvent developer of an almost-finished apartment building in Houston hit a hiccup Tuesday during its first-day hearing in a Texas bankruptcy court, where a judge indicated the company did not present enough evidence to support a nearly $2 million debtor-in-possession package from an affiliate of its subordinate lender.
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June 18, 2024
Small Biz Bankruptcies Likely To Spike Before Debt Limit Ends
U.S. bankruptcy courts are likely to see a spike in small business filings under Subchapter V of Chapter 11 this week, in the days before the current $7.5 million debt limit to qualify falls back to about $3 million on Friday without action from Congress, according to experts.
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June 18, 2024
Judge Will OK Disclosures For 3 Plans In Eletson Ch. 11
A New York bankruptcy judge said Tuesday he will approve disclosure statements detailing three competing Chapter 11 plans proposed in the bankruptcy of shipping company Eletson Holdings Inc. after some revisions, overruling overlapping objections claiming the statements didn't offer adequate information.
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June 18, 2024
Biotech Co. NanoString Gets OK On Ch. 11 Wind Down Plan
NanoString Technologies Inc., a Seattle-based maker of gene analysis technology, can use proceeds from the $393 million sale of its business to repay nearly all creditors in full after a Delaware bankruptcy judge Tuesday approved its Chapter 11 plan.
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June 18, 2024
Aircraft Co. Icon's Ch. 11 Sale Cleared With Higher Price
Light-sport aircraft producer Icon received a Delaware bankruptcy court's approval Tuesday for a nearly $15.8 million sale of its assets after securing an agreement to increase the price by $250,000, just hours before a hearing on the transaction.
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June 18, 2024
Rite Aid, SVB Affiliates Among Top 2024 Ch. 11 Sales So Far
Branches of Rite Aid and Silicon Valley Bank, technology and biotech firms and a discount store chain were among the companies that attracted top dollar in the Chapter 11 auctions held during the first half of 2024.
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June 18, 2024
San Diego Diocese ReEnters Ch. 11 Over Sex Abuse Claims
The Roman Catholic Diocese of San Diego has reentered Chapter 11 in a California bankruptcy court, saying it is facing more than $100 million in liabilities from more than 450 new sexual abuse claims filed in recent years.
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June 18, 2024
Kristen Bell's Baby Co. Gets OK For Ch. 11 Plan
A Delaware bankruptcy judge on Tuesday confirmed the Chapter 11 plan for Unconditional Love Inc., the baby-product company founded by actress Kristen Bell that does business as Hello Bello, as it prepares to wind down its business.
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June 18, 2024
Cancer Test Company DermTech Hits Ch. 11, Seeking Sale
California-based dermatologic test maker DermTech Inc. hit Chapter 11 Tuesday in Delaware and said it would be laying off about 20% of its workforce as it seeks to sell its assets.
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June 18, 2024
Electric Vehicle Startup Fisker Hits Ch. 11 With Sale Plans
Electric vehicle company Fisker Group Inc. has petitioned for Chapter 11 protection in Delaware bankruptcy court with more than $100 million of debt, months after the collapse of a potential partnership with a major automaker imperiled the startup's attempts to raise new financing.
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June 17, 2024
Cybersecurity Co. Appgate Gets OK For Prepack Ch. 11 Plan
A Delaware bankruptcy judge said Monday he would confirm network security solutions provider Appgate Inc.'s prepackaged Chapter 11 plan, and overruled an objection from the U.S. Trustee's Office to the plan's release opt-out form for equity interest holders.
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June 17, 2024
Creditors Say Giuliani Is 'Shrewd' And Needs Ch. 11 Trustee
Rudy Giuliani's creditors made their argument to a New York judge on Monday about why they felt he should be stripped of control of his bankruptcy case, disparaging his motives, missing financial information and ability to stick to a budget.
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June 17, 2024
SEC Alleges Texas Man Offered Virgin Sham $200M 'Lifeline'
Securities regulators sued a venture capitalist and his investment firm in Texas federal court Monday, accusing the firm of making a bogus offer to invest $200 million into Virgin Orbit last year despite having less than $1 in its bank account and causing stock prices to swell before plummeting when the deal collapsed.
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June 17, 2024
Justices Side With US Trustee, Alex Jones Switches To Ch. 7
The U.S. Supreme Court ruled there would be no retroactive redress for a disparity between U.S. trustee fees in different jurisdictions, seafood restaurant chain Red Lobster struck a deal with creditors to hammer out a reorganization plan, and a Texas judge pulled the trigger on converting Alex Jones' Chapter 11 case to a Chapter 7.
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June 17, 2024
Dutch Insurer Says Record Clear To Affirm $160M Arbitration
A Dutch insurer is pushing a North Carolina federal judge to confirm a €150 million (roughly $160 million) arbitration award against insurance mogul Greg Lindberg and his companies, citing a recent order in which the court acknowledged the award as binding.
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June 17, 2024
Ex-Stimwave CEO Gets 6 Years For Dummy Implant Scheme
The founder and former CEO of Stimwave Technologies was sentenced to six years in prison Monday after tearfully proclaiming her innocence to healthcare fraud charges, with a Manhattan federal judge saying it's "sad" the defendant doesn't recognize the harm she inflicted by selling nonfunctional pain management device components.
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June 17, 2024
NY Archdiocese Wants Abuse Coverage Suit Tossed
The Archdiocese of New York sought dismissal of Chubb's bid to evade coverage of over 1,700 underlying sexual abuse claims brought under the Child Victims Act, filing counterclaims with a state court alleging that the carrier has wrongfully refused coverage and must indemnify the organization in the underlying claims.
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June 17, 2024
Rubio's Taco Chain Faces WARN Act Suit Over Layoffs
Rubio's Coastal Grill, a fast-casual restaurant chain and a Chapter 11 debtor, was hit with a putative class action in Delaware bankruptcy court that alleges it failed to provide proper notice to employees when the company shut down several locations at the time of its latest bankruptcy filing.
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June 17, 2024
Spinal Implant Maker's Creditors Vote To Approve Ch. 11 Plan
InVivo Therapeutics Corp.'s creditors have voted to accept the biotechnology company's Chapter 11 liquidation plan, with an official for the debtor reporting in a Monday filing with the Delaware bankruptcy court that two creditor classes unanimously approved the proposal.
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June 17, 2024
Talc Claimants Want Documents In Fight Over J&J Unit Venue
Cancer patients with talc damage claims against Johnson & Johnson have urged a New Jersey federal court to give them access to transcripts and exhibits from depositions of top executives at the company's talc unit, saying the information will aid their effort to bar the J&J spinoff from filing a third Chapter 11 outside the Garden State.
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June 17, 2024
Vesttoo Trust Objects To Kaplan Hecker Fee Bid
The liquidating trustee for bankrupt fintech business Vesttoo Ltd. has asked a Delaware bankruptcy judge to deny fees for Kaplan Hecker & Fink LLP, which had been proposed to counsel the company, saying the firm's retention application wasn't confirmed before the Chapter 11 plan became effective.
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June 14, 2024
Judge Converts Alex Jones Ch. 11, Tosses Media Co.'s Case
A Texas bankruptcy judge on Friday turned Alex Jones' bankruptcy case into a Chapter 7, allowing a trustee to liquidate the right-wing conspiracy theorist and media personality's assets to repay creditors, but declined to convert the Chapter 11 of the company that runs Jones' online show, dismissing its petition instead.
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June 14, 2024
Fed Limits Bank's Fintech Dealings Over Risk Concerns
The Federal Reserve filed a cease-and-desist order against an Arkansas bank Friday requiring it to obtain federal and state approval before partnering with any fintech companies going forward after the agency identified risk management deficiencies in recent safety and compliance exams.
Expert Analysis
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Air Ambulance Ch. 11s Show Dispute Program Must Resume
Air Methods’ recent bankruptcy filing highlights the urgent need to reopen the No Surprises Act’s independent dispute resolution program for air ambulances, whose shutdown benefits insurance companies and hurts providers, says Adam Schramek at Norton Rose.
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Pro Bono Work Is Powerful Self-Help For Attorneys
Oct. 22-28 is Pro Bono Week, serving as a useful reminder that offering free legal help to the public can help attorneys expand their legal toolbox, forge community relationships and create human connections, despite the challenges of this kind of work, says Orlando Lopez at Culhane Meadows.
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Why Delaware ABCs Are No Longer As Easy As 1-2-3
In light of the Court of Chancery's recent focus on additional disclosures, the assignment for the benefit of creditors process in Delaware may no longer be as efficient as it once was, and companies should be prepared to provide significantly more information leading up to an ABC, say attorneys at Goodwin.
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Diamond Sports Cases Shed Light On Executory Contracts
Recent Texas bankruptcy cases involving telecast fees payable by Diamond Sports to certain Major League Baseball teams provide a window into the dynamic relationship that can develop between debtors and counterparties under some executory contracts, say Joseph Badtke-Berkow and Robin Spigel at Allen & Overy.
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Playing In A Rock Cover Band Makes Me A Better Lawyer
Performing in a classic rock cover band has driven me to hone several skills — including focus, organization and networking — that have benefited my professional development, demonstrating that taking time to follow your muse outside of work can be a boon to your career, says Michael Gambro at Cadwalader.
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The Pop Culture Docket: Judge Espinosa On 'Lincoln Lawyer'
The murder trials in Netflix’s “The Lincoln Lawyer” illustrate the stark contrast between the ethical high ground that fosters and maintains the criminal justice system's integrity, and the ethical abyss that can undermine it, with an important reminder for all legal practitioners, say Judge Adam Espinosa and Andrew Howard at the Colorado 2nd Judicial District Court.
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Balancing Justice And Accountability In Opioid Bankruptcies
As Rite Aid joins other pharmaceutical companies in pursuing bankruptcy following the onslaught of state and federal litigation related to the opioid epidemic, courts and the country will have to reconcile the ideals of economic justice and accountability against the U.S. Constitution’s promise of a fresh start through bankruptcy, says Monique Hayes at DGIM Law.