Mid Cap
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July 01, 2024
Optio Rx Scores Final Green Light On $10M DIP Deal
A Delaware bankruptcy judge on Monday gave Illinois-based specialty pharmacy chain Optio Rx final approval for a $10 million debtor-in-possession financing package to fund its Chapter 11 case after hearing issues regarding it had been resolved.
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July 01, 2024
Justices Told Clarity Needed On Ch. 11 Exculpations
Highland Capital and parties opposed to the venture capital firm's Chapter 11 plan asked the U.S. Supreme Court to clear up how the high court's recent rejection of third-party claims releases in the Purdue Pharma reorganization applies to Chapter 11 exculpations.
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July 01, 2024
Talc Victims Can't Block J&J From Filing For Ch. 11 Outside NJ
A New Jersey federal judge has denied a bid for a restraining order from a group of patients suing Johnson & Johnson over claims they were injured by its talc products, saying their concern that the company would try to file for bankruptcy outside the Garden State is based on speculation and not ripe for litigation.
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July 01, 2024
Catching Up With Delaware's Chancery Court
Two multimillion-dollar settlement approvals, a $25 million fee-shifting demand, and a biotech merger spoiled by murder: This was just the beginning of the drama last week in the nation's preeminent court of equity. Shareholders in satellite companies filed new cases, a cannabis company headed toward trial, and there were new developments in old disputes involving Tesla and Truth Social.
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July 01, 2024
Clothing Maker Delta Apparel Hits Ch. 11 With Sale Plans
Delta Apparel Inc., a Georgia-based clothes manufacturer, and six affiliates filed for Chapter 11 bankruptcy protection in Delaware with around $250 million in debt and plans to sell the lifestyle and clothes brand Salt Life while in bankruptcy.
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June 28, 2024
Chevron's End Is Just The Start For Energized Agency Foes
By knocking down a powerful precedent that has towered over administrative law for 40 years, the U.S. Supreme Court's right wing Friday gave a crowning achievement to anti-agency attorneys. But for those attorneys, the achievement is merely a means to an end, and experts expect a litigation blitzkrieg to materialize quickly in the aftermath.
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June 28, 2024
In Chevron Case, Justices Trade One Unknown For Another
The U.S. Supreme Court's decision to overrule a decades-old judicial deference doctrine may cause the "eternal fog of uncertainty" surrounding federal agency actions to dissipate and level the playing field in challenges of government policies, but lawyers warn it raises new questions over what rules courts must follow and how judges will implement them.
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June 28, 2024
Problems Linger Amid Efforts To Clean Up Debt Firm's Mess
After the collapse of a California debt relief firm last year amid allegations of fraud, a bankruptcy judge signed off on a plan to allow a new firm to begin providing services for thousands of affected clients. While the new firm has promised to clean up its predecessor’s mess, some consumers say little to nothing has changed, and now enforcement agencies including the Consumer Financial Protection Bureau have started asking questions.
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June 28, 2024
Mercon Coffee Given More Time To Explain Insider Releases
At its confirmation hearing Friday, Mercon Coffee Corp. said it needs more time to brief a New York bankruptcy judge on why certain employees are eligible for releases that were meant to keep them at the company.
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June 28, 2024
Ex-NS8 Exec Was 'Willing Participant' In Fraud, Trustee Says
The litigation trustee in defunct cybersecurity startup NS8's Chapter 11 said co-founder David Hansen must return over $5 million to the bankruptcy estate, alleging in a lawsuit in the Delaware bankruptcy court that Hansen knew about and helped cover up years of fraud by the firm's former CEO that cost investors more than $100 million.
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June 28, 2024
Girardi's Ch. 7 Evidence Fight May Raise Novel Issues
Tom Girardi told a California federal judge that FBI agents violated his constitutional rights by obtaining evidence from his law firm's bankruptcy trustee without a search warrant, an argument that, if successful, could hamstring prosecutors in his upcoming wire fraud trial and shake up law enforcement's dealings with trustees.
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June 28, 2024
US Logistics Liquidation Comes Amid Industry Headwinds
A lender cutting off funding may have been the direct cause of trucking company U.S. Logistics Solutions Inc. filing for Chapter 7 liquidation in Texas, but it came amid a challenging environment for truck carriers.
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June 28, 2024
Telecom Co. Airspan Cleared For $200M Equity Swap
Wireless telecommunications equipment maker Airspan Networks received court approval for its prepackaged Chapter 11 plan Friday in Delaware, paving the way for a $200 million debt-for-equity transaction that the company's attorney said will give it sure financial footing for the future.
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June 28, 2024
Lincoln Logs Maker Basic Fun Inc. Files For Ch. 11
Basic Fun Inc., the toy-maker behind Lincoln Logs and Tinker Toys, filed for Chapter 11 bankruptcy Friday in a Delaware bankruptcy court, listing less than $100 million in assets and liabilities each.
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June 28, 2024
Nixed Purdue Ch. 11 Plan May Leave States Ready For A Fight
State attorneys general across the country could be gearing up for more opioid-related litigation against the Sackler family after the U.S. Supreme Court wiped out a $5.5 billion third-party release for the owners of bankrupt drugmaker Purdue Pharma LP, experts told Law360.
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June 28, 2024
Estate Owes $4.9M For Son-Of-Boss Scheme, US Says
An estate owes $4.9 million in tax liabilities for a couple's scheme to artificially cancel out their capital gains, the federal government said in a complaint in Michigan federal court, arguing that the Son-of-Boss scheme constitutes fraud and its proceeds aren't entitled to bankruptcy protection.
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June 28, 2024
Manolete Sues MSR Partners For £15.6M Over Audit Failure
Manolete Partners PLC has sued MSR Partners LLP for £15.6 million ($19.7 million), alleging that the accounting firm failed in auditing a peer-to-peer lending platform that went into administration in 2019.
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June 27, 2024
Credivalores, Lender's Noteholders Tussle On Ch. 11 Plan Vote
Colombian consumer lending giant Credivalores-Crediservicios and an ad hoc group of noteholders on Thursday disputed the legitimacy of a vote count that would determine whether the lender's prepackaged Chapter 11 reorganization plan goes forward, leaving a New York bankruptcy judge to mull what must be done.
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June 27, 2024
Purdue Ruling Reshapes Conn. Catholic Diocese's Ch. 11 Plan
The U.S. Supreme Court's decision Thursday banning bankruptcy judges from forcing non-debtor third parties to release claims against other non-debtors quickly reshaped a proposed Chapter 11 plan for a Connecticut Roman Catholic diocese, as a creditors committee withdrew a $32 million abuse victim trust proposal and proffered an immediate replacement.
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June 27, 2024
Kavanaugh Rips 'Ruinous' Decision To Kill 3rd Party Releases
In a fiery dissent to the U.S. Supreme Court's split ruling Thursday that eviscerated Purdue Pharma LP's reorganization plan and, along with it, nonconsensual third-party releases in Chapter 11 cases, Justice Brett M. Kavanaugh became the champion of the bankruptcy system, defending its practicality — especially in mass tort cases.
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June 27, 2024
Ch. 7 Can't Free PE Firm From Suit, Diamond Polisher Says
A Canadian diamond polisher urged a Michigan federal judge to keep alive its suit alleging that a lab-grown diamond company's private equity owner knew it couldn't make good on its promise to fund new facilities to process the gemstones, saying the fact that the company is going through bankruptcy can't shield the PE firm from liability for using its alter ego to make fraudulent statements.
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June 27, 2024
Sandy Hook Families Can't Seize Funds From Alex Jones' Co.
A group of families looking to collect a $50 million defamation verdict against Alex Jones' media business can't seize its bank accounts, a Texas bankruptcy judge ruled Thursday, questioning why they asked a state court for control of the accounts hours after the bankruptcy court ordered a Chapter 7 trustee to take over the assets.
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June 27, 2024
Titanic Purdue Ruling Shifts The Balance Of Power In Ch. 11
The U.S. Supreme Court's decision to strike down the Sackler family's liability shield in the Chapter 11 plan of Purdue Pharma LP not only eliminates a key tool to resolve mass tort liabilities through bankruptcy, it gives claimants more leverage and fundamentally changes the insolvency landscape in future cases, experts tell Law360.
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June 27, 2024
Justices Nix 3rd-Party Liability Releases In Purdue Ch. 11 Plan
The U.S. Supreme Court shot down the validity of nonconsensual third-party releases in an opinion issued Thursday in the case of bankrupt drugmaker Purdue Pharma LP, potentially exposing the Sackler family members who own the company to personal liability for the company's role in the opioid crisis.
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June 26, 2024
Eiger Gets OK On Ch. 11 Drug Sale After Tripling Initial Bid
A Texas bankruptcy judge on Wednesday approved Eiger BioPharmaceuticals' $35.1 million sale of its Avexitide product, after the drug company more than tripled an initial bid for the metabolic-disease treatment during a recent auction.