Mid Cap
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January 27, 2025
California's Oldest Indy Bookstore Gets Ch. 11 Lifeline
A California bankruptcy judge on Monday gave the Golden State's oldest independent bookstore chain, Books Inc., approval on a raft of first-day motions to ease its navigation through a Chapter 11 case the company launched to address burdensome rent and lower profits in the wake of the COVID-19 pandemic.
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January 27, 2025
174-Year-Old Bookstore Says Its Story Won't End On Ch. 11
Changes in customer buying patterns following the COVID-19 pandemic have led Books Inc., the Bay Area's oldest independent bookstore operator, to enter Chapter 11 with plans to close its Berkeley location early next month while continuing to operate 10 other shops in and around San Francisco.
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January 24, 2025
Under The Radar: Bankruptcy News You May Have Missed
The daughter of bankrupt Chinese exile Miles Guo is fighting a contempt bid brought by the Chapter 11 trustee of her father's estate. Brazilian airline Gol Linhas and Spirit Airlines are seeking to implement third-party releases in their respective Chapter 11 plans. And bankrupt financial technology company Synapse appears to be the subject of a grand jury investigation.
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January 24, 2025
Justices Urged To Review Souvenir Store's TM Fraud Case
A Florida souvenir store chain has asked the U.S. Supreme Court to consider its challenge to a Second Circuit decision foreclosing its arguments that a bankrupt beachwear company fraudulently procured a trademark registration to secure a $3.5 million settlement in yearslong litigation between the competitors.
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January 24, 2025
Opt-Out Releases Approved In Container Store Ch. 11 Plan
A Texas bankruptcy judge on Friday approved a prepackaged Chapter 11 plan for The Container Store that includes opt-out releases in favor of nondebtors, saying the provisions don't run afoul of the Supreme Court's recent Purdue ruling or of Fifth Circuit precedent.
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January 24, 2025
9th Circ. Renews Billing Co.'s Suit Against Texas Data Firm
A Ninth Circuit panel on Friday partly revived a Washington billing services company's lawsuit over a soured business deal with bankrupt Addison Data Services, finding a bankruptcy settlement agreement and the statute of limitations can't keep the plaintiff from pursuing its breach of fiduciary duty claims.
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January 24, 2025
Mass Tort Atty Files Ch. 11 Owing $202M To Litigation Funders
A Houston plaintiffs attorney has filed for personal Chapter 11 protection with more than $202 million of litigation funding liabilities, according to his petition in the Southern District of Texas.
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January 24, 2025
Grier Wright Tapped For Insurance Mogul's $2B Liquidation
Bankruptcy attorney Joseph Grier of Grier Wright Martinez PA will serve as special master to identify, receive, track and distribute billions of dollars that will go toward restitution to victims defrauded by convicted insurance mogul Greg Lindberg, a North Carolina federal judge ruled.
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January 24, 2025
La. Judge Returns $22M Hurricane Ida Claim To State Court
A Louisiana federal judge has sent a $22 million insurance dispute over oil drilling equipment damaged by Hurricane Ida back to state court, citing an invalid arbitration clause between the parties.
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January 24, 2025
5th Circ. Serta Ruling Gives Grist For Lenders Left Behind
A Fifth Circuit decision rejecting mattress maker Serta Simmons' controversial "uptier" exchange offers new ammunition for an array of investors excluded from non-pro rata debt transactions, a development that could curb favored creditors and private equity firms' appetite for deals marked by so-called lender-on-lender violence.
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January 23, 2025
Pivot To Conventional Oil Offers Hope For Reorganized Vertex
Fuel refiner Vertex has effectuated its plan to emerge from bankruptcy by recapitalizing with up to $100 million in new financing while handing equity to old lenders, and experts say it may fare better now by focusing on conventional oil production.
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January 23, 2025
US Trustee Objects To Blink Fitness Ch. 11 Plan Exculpations
The U.S. Trustee's Office has urged a Delaware bankruptcy judge not to confirm Blink Fitness' Chapter 11 plan, arguing it is unfairly seeking to exculpate professionals for future acts and extend an injunction to third-party releases.
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January 23, 2025
CarePoint's Ch. 11 Docs OKd, But Confirmation Fight Looms
Bankrupt hospital owner CarePoint Health Systems Inc. received approval of its Chapter 11 plan disclosure statement Thursday after a Delaware bankruptcy judge heard about a string of modifications that resolved objections, but some issues still remain ahead of a March confirmation hearing.
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January 23, 2025
NY Judge Scolds Firm Amid Rise In Real Estate Ch. 11s
A New York judge stripped a local Long Island law firm of nearly all its retainer and the legal fees it had submitted for pursuing what he described as a meritless Chapter 11 case, putting attorneys on notice that they should think twice before contributing to the flood of landlords filing for bankruptcy in an effort to escape foreclosure in his district.
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January 23, 2025
GenapSys Says Paul Hastings Can't Keep Privileged Docs
GenapSys is pushing back on Paul Hastings LLP's bid to force it to turn over documents that it had inadvertently released during discovery in a legal malpractice suit alleging that the law firm improperly drafted board documents that led to the "demise and liquidation" of the genetic-sequencing company.
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January 23, 2025
Resort Developer Can Tap Full $11M City-Funded DIP In Ch. 11
A stalled developer received a Delaware bankruptcy judge's final seal of approval Thursday to use an $11 million loan funded by the California city where it planned to build a resort as it prepares to sell its assets in Chapter 11.
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January 23, 2025
White And Williams' NY Office Head Named Bankruptcy Chair
The managing partner of White and Williams LLP's New York office has taken on the role of chair of the firm's financial restructuring and bankruptcy practice, where she plans to focus on improving the practice group's visibility while ensuring high quality of client service and helping its attorneys to excel.
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January 22, 2025
Reed Smith Rips Claim Firm Is 'Causing Chaos' In $102M Suit
Reed Smith fought back Tuesday against allegations by the purported new owners of Eletson Holdings that the BigLaw firm is "causing chaos" by refusing to withdraw as counsel of record in $102 million breach-of-contract litigation, arguing that ownership of the international shipping group is "hotly contested" and being litigated in multiple jurisdictions.
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January 22, 2025
Creditors Want To Help Market Nostrum After Atty Turnover
The official committee of unsecured creditors in drugmaker Nostrum Laboratories Inc.'s Chapter 11 case has asked a New Jersey bankruptcy judge for additional authority to help investment bank Raymond James find a buyer for the debtor's assets.
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January 22, 2025
Meet The Attys In Plastic Suppliers' Ch. 11
Attorneys from Archer & Greiner PC are assisting Plastic Suppliers, a maker of compostable films and other plastic packaging, navigate its Chapter 11 case, while Porzio Bromberg & Newman PC is representing the official committee of unsecured creditors.
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January 22, 2025
Alex Jones Asks Conn. Justices To Review Sandy Hook Case
Infowars host Alex Jones has asked Connecticut's highest court to review a $1.44 billion judgment for calling the Sandy Hook school massacre a "hoax," arguing his trial judge violated the state and federal constitutions by skipping causation, jumping straight to a default liability judgment and adding damages without proof.
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January 22, 2025
Catching Up With New Bankruptcy Case Action
Crafts retailer Joann Inc. has filed for Chapter 11 protection for a second time in less than a year, and plans to either sell its assets or liquidate the business. Mondee, an AI-supported travel agency app maker, has hit bankruptcy court with $49 million in financing provided by existing lenders. A New Zealand-based developer of AI-powered actuarial software, Montoux, is seeking Chapter 15 bankruptcy recognition in Delaware, attributing its financial strain to ongoing trade secrets litigation against the company.
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January 22, 2025
Neumann's Flow Life Buys Miami Site For $70.5M In Court Sale
WeWork founder Adam Neumann's latest venture, a real estate company called Flow Life, bought a 16-acre Miami development site in a court-ordered sale for $70.5 million, or double an initial stalking horse bid for the property in October.
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January 22, 2025
Lender Files Ch. 7 For Pa.-Based ATM Network Owner
Silverview Credit Partners LP has filed an involuntary Chapter 7 petition in Delaware bankruptcy court against Blackford ATM Ventures, a Pennsylvania-based operator of a network of ATMs, claiming the company owes $28.6 million for defaulted loans.
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January 21, 2025
LED Screen Distributor Lied About $10M Debt, Jury Told
The owner of a now-defunct LED screen distribution company lied to his Korean manufacturing partner about repaying an over $10 million debt in order to keep receiving shipments and pay himself a hefty salary, jurors heard as a civil fraud trial opened in California federal court on Tuesday.
Expert Analysis
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Attorneys, Law Schools Must Adapt To New Era Of Evidence
Technological advancements mean more direct evidence is being created than ever before, and attorneys as well as law schools must modify their methods to account for new challenges in how this evidence is collected and used to try cases, says Reuben Guttman at Guttman Buschner.
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Why 7th Circ. Libel Ruling Is Crucial For The Media
As more defamation plaintiffs attorneys argue that allowing a published statement to remain online after additional evidence of falsity emerges equates to actual malice, the Seventh Circuit's recent National Police Association v. Gannett opinion should be lauded by the media and online publishers as a favorable decision, say attorneys at Vedder Price.
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Tips For Litigating Against Pro Se Parties In Complex Disputes
Litigating against self-represented parties in complex cases can pose unique challenges for attorneys, but for the most part, it requires the same skills that are useful in other cases — from documenting everything to understanding one’s ethical duties, says Bryan Ketroser at Alto Litigation.
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3 Cases Show Tensions Between Arbitration And Insolvency
The intersection of international arbitration and insolvency may influence the formulation of litigation strategy on a global scale, and several recent cases illustrate the need for counsel to understand how courts are varying in their approaches, say attorneys at Skadden.
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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.