Mid Cap
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August 26, 2024
Girardi Denies Fraud Charges, Alex Jones Biz Sale Proposed
Disbarred attorney Tom Girardi has denied stealing from any of his clients, asking a judge to toss wire fraud charges. Meanwhile, a court-appointed trustee in Alex Jones' bankruptcy has asked a Texas judge to authorize the liquidation and wind-down of Free Speech Systems. This is the week in bankruptcy.
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August 26, 2024
AI Staffing Co. Ch. 11 Releases Are 'Gratuitous,' Investors Say
Shareholders of Joonko Diversity Inc., a recruitment firm that uses artificial intelligence, have objected to the company's proposed Chapter 11 liquidation plan, saying the proposal includes releases of claims against directors and officers of the business who may be implicated in a fraud scheme, for which Joonko's ex-chief executive was recently indicted in federal court.
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August 26, 2024
Judge OKs Buca Di Beppo Bidding Process
A Texas bankruptcy judge on Monday approved Italian restaurant chain Buca di Beppo's bidding procedures, setting up the possibility of an auction in early October.
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August 26, 2024
Texas Cases To Watch In Last Half Of 2024
Courts across the state are poised to make decisions in several high-stakes cases over the next several months, including ruling on whether Texas Attorney General Ken Paxton can be deposed in a long-running employment retaliation suit and whether a challenge to Texas' floating Rio Grande barrier must be tried before a jury.
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August 26, 2024
Texas Bitcoin Miner Hits Ch. 11 With More Than $50M In Debt
Cryptocurrency miner Rhodium filed for Chapter 11 protection in a Texas bankruptcy court with more than $50 million in debt.
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August 23, 2024
Girardi Says High Court Holding Should Gut His Fraud Case
Tom Girardi has urged a California federal judge to toss the majority of the wire fraud charges he is facing ahead of closing arguments in his trial, saying a 1960 U.S. Supreme Court case demonstrates he was charged for nothing more than receiving legally required wire transfers.
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August 23, 2024
Split 9th Circ. Says Ponzi Schemes Don't Need Proof Of Intent
A split Ninth Circuit panel affirmed Friday a jury's finding in a fraudulent-transfer fight that a now-bankrupt company was a Ponzi scheme, with the majority writing that jurors didn't need to find an intent to defraud, while a dissenting judge slammed the majority's reasoning as "circular."
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August 23, 2024
Drug Cos. Akorn, Cardinal Settle $28M Ch. 7 Fight
Defunct drug manufacturer Akorn has told Delaware's bankruptcy court it reached an agreement resolving a roughly $28 million dispute regarding its prepetition sale of pharmaceuticals to distributor Cardinal Health, which promised to pay nearly $7 million to the debtor's Chapter 7 estate.
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August 23, 2024
Clinic Biz Can Tap Additional Ch. 11 Lifeline, Judge Says
A Delaware bankruptcy judge agreed on Friday to allow clinic operator Pioneer Health to take on more debtor-in-possession financing as it works toward an asset sale, finding the latest arrangement to be in the debtor's best interest.
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August 23, 2024
Creditors Can't Dig Up Eletson's Ch. 11 Plan Negotiation Info
Bankrupt Greek fuel shipping group Eletson doesn't have to turn over communications with a group of shareholders who are supporting its Chapter 11 plan, a New York bankruptcy judge ruled Friday, finding the common interest doctrine shielded their negotiation talks from the official committee of unsecured creditors' discovery request.
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August 23, 2024
Retailers That Sunk Into The Red And Hit Ch. 11 In 2024
Major retail companies including Express Inc., Conn's Inc., Avon Products, Sam Ash Music, and Rue21 have filed for bankruptcy this year, citing industry challenges stemming from the lasting impacts of the COVID-19 pandemic, rising interest rates and inflationary pressures.
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August 22, 2024
A Look At The 3 Competing Eletson Ch. 11 Plans
A New York bankruptcy judge is in the unusual position of weighing competing Chapter 11 plans for Eletson — one from the debtor and two from creditors that sought to force it into liquidation — as a September confirmation hearing approaches, after rejecting arguments that the oil and gas transporter proposal has no chance of success.
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August 22, 2024
Delta Apparel, Creditors Get More Time To Work Out DIP Row
A Delaware bankruptcy judge on Thursday tabled a decision on final approval of Delta Apparel's bankruptcy financing to give the clothing maker and its creditors more time to sort out disagreements over how the debtor-in-possession loan would affect recoveries in the Chapter 11 case.
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August 22, 2024
Tender Greens, Tocaya Get OK For September Auction
A Delaware bankruptcy judge said Thursday he will approve procedures for bidding on the assets of a Los Angeles-based company that operates casual restaurant chain Tender Greens and Mexican eatery Tocaya.
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August 22, 2024
Toolmaker Hardinge Cleared For Ch. 11 Auction In September
Hardinge, a producer of metal-cutting equipment, is set to hold a bankruptcy auction for the business in September, with a $100 million credit offer setting the floor, the debtor's attorneys said Thursday, telling a Delaware bankruptcy judge its stalking horse bidder walked back a demand for expense reimbursements that the U.S. Trustee's Office opposed.
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August 22, 2024
Jones Walker Adds Kelley Drye Bankruptcy Ace In Houston
Jones Walker LLP announced Thursday that it has bulked up its bankruptcy and restructuring team and its litigation practice group with a partner in Houston who came aboard from Kelley Drye & Warren LLP.
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August 22, 2024
Tom Girardi Takes The Stand In His Criminal Fraud Trial
Disbarred attorney Tom Girardi took the stand Thursday in his California federal fraud trial and denied stealing from any of his clients, while also showing a strong grasp of past events and people but claiming to have no memory of the trial's witnesses and key moments, or to even know his own lawyer's name.
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August 22, 2024
Cole Schotz Looks To Ditch Hotel Debtor For Nonpayment
Cole Schotz PC asked a Delaware bankruptcy judge to give the firm clearance to drop the former operator of a California luxury hotel as a client over an alleged failure to pay its invoices.
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August 21, 2024
Girardi Faked Dementia Symptoms, Neurologist Testifies
A neurologist with Vanderbilt University testified Wednesday in Tom Girardi's criminal fraud trial in California federal court that the disbarred attorney was likely exaggerating his cognitive problems in late 2020 just as his law firm imploded into bankruptcy and his legal problems mounted because he believed it would be "beneficial."
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August 21, 2024
Top Bankruptcy Cases Of 2024: Midyear Report
Famous debtors, major U.S. Supreme Court rulings and "shocking" turnarounds have headlined an already busy 2024 in bankruptcy, and elevated interest rates are expected to continue pushing more companies to the brink this year, experts told Law360.
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August 21, 2024
Committee Says Delta Apparel DIP Loan Rips Off Creditors
Delta Apparel's official committee of unsecured creditors asked a Delaware bankruptcy court to deny the clothing manufacturer final approval for its debtor-in-possession loan, saying it is a lopsided deal that let secured lenders run away with the entire value of the debtor's assets.
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August 21, 2024
5 Takeaways From Closed-Door Hearing On Judge Romance
A hearing transcript unsealed Wednesday unpacks a secret meeting between Jackson Walker LLP and former U.S. Bankruptcy Judge David R. Jones, covering Jones being criminally investigated for concealing his romance with an ex-firm partner, him accusing the U.S. trustee of leaking news of that probe and that Jones likely has failed to avoid a deposition.
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August 21, 2024
Eversheds Adds Another Kilpatrick Bankruptcy Atty In Atlanta
Eversheds Sutherland's growing U.S. finance practice group picked up another new addition Wednesday, an Atlanta counsel who was previously with Kilpatrick Townsend & Stockton LLP.
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August 21, 2024
Judge Says Debtor Plan Will Get Hearing In Eletson Ch. 11
A New York bankruptcy judge Wednesday said he will give a hearing to all three Chapter 11 plans proposed for shipping company Eletson Holdings, rejecting arguments that the creditor voting results spell the end of Eletson's proposal.
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August 20, 2024
Girardi Jury Hears Of Ex-CFO's Alleged Bahama Hideout Plan
The former fiancee of ex-Girardi Keese executive Chris Kamon told a California federal jury in Tom Girardi's criminal trial Tuesday about a dramatic call she received from Kamon, during which he told her he was about to be "pinned" for the firm's crimes and wanted her to flee to the Bahamas with him.