Large Cap
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February 27, 2025
Yellow Corp. Beats Teamsters In WARN Act Row
A Delaware bankruptcy judge has ruled that trucking company Yellow Corp. is not liable for its failure to provide 60 days notice of layoffs to 22,000 union workers who lost their jobs as the company descended into Chapter 11, finding that Yellow was a "liquidating fiduciary" at the time and intended to comply with the WARN Act.
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February 27, 2025
Selendy Gay Names New Managing Partner, COO
Litigation boutique Selendy Gay PLLC announced Thursday that it has appointed bankruptcy and insolvency lawyer Kelley Cornish as managing partner and landed the top legal head of Cinch Home Services as its new chief operating officer.
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February 27, 2025
Jones Day Gets OK For $52M In NY Diocese Ch. 11 Fees
A New York bankruptcy judge Thursday gave final approval to Jones Day's request for nearly $52 million in compensation for shepherding Long Island's Roman Catholic diocese through its Chapter 11 case, overruling arguments it spent too much time objecting to claims.
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February 26, 2025
For Large Firms, A Day In Ch. 11 Can Be Costlier Than Ever
Large companies are paying more to restructure debt both during bankruptcy and in the months leading up to a Chapter 11 filing, with the typical cost of a day in court ballooning in recent years, according to a new paper by Harvard Law School Professor Jared A. Ellias.
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February 26, 2025
Jailed Ex-FTX Exec's Lawyers Can't Drop From Ch. 11 Suit
Attorneys from Montgomery McCracken Walker & Rhoads LLP representing former FTX Trading executive Ryan Salame cannot yet withdraw as his counsel in an adversary case seeking the return of $99 million in company funds after a Delaware bankruptcy judge said Wednesday he needed more information about the firm's difficulties in communicating with their incarcerated client.
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February 26, 2025
Willkie Wins Sanctions, But Fees Cut, In Old Asbestos Ch. 11
Willkie Farr & Gallagher LLP has won sanctions against plaintiffs in the 1982 bankruptcy case of Johns Manville Corp., but the firm's fee award was drastically slashed after a New York judge found that lawyers had not provided enough details about their work.
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February 26, 2025
Joann To Wind Down Operations After Judge Approves Plan
A Delaware bankruptcy judge on Wednesday approved renowned fabric and crafts retailer Joann Inc. to wind down its operations after a "global consensus" was reached among the debtor, lender and creditors committee, allowing the 80-year-old chain to hold going-out-of-business sales.
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February 26, 2025
Party City Approved To Sell IP, Assets For $20.6M In Ch. 11
A Texas bankruptcy judge on Wednesday blessed retailer Party City's bid to sell its brand name and other intellectual property to an affiliate of pop culture merchandiser Ad Populum for $20.6 million, rejecting a challenge to the deal by franchise owners that claimed the buyer was ill-equipped to take on contracts with their stores.
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February 26, 2025
Judge Sets Deadline For Terraform Crypto Loss Claims
A Delaware bankruptcy judge Wednesday approved a request by the Chapter 11 plan administrator of defunct cryptocurrency software developer Terraform Labs to set an April 30 deadline for any claims of losses from Terraform's collapsed stablecoin.
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February 26, 2025
Judge To OK Sale-Leaseback Of Big Lots HQ In Ch. 11
A Delaware bankruptcy judge Wednesday agreed to allow discount retail chain Big Lots to sell its Ohio headquarters to hospital operator OhioHealth Corp. for $36 million and lease it back from the buyer until it wraps up its operations.
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February 25, 2025
Epiq Explains Ballot Flip In J&J Talc Unit's $10B Ch. 11 Plan
A Texas bankruptcy judge Tuesday heard how a claims agent accepted a ballot that flipped some 11,000 already cast votes on the Chapter 11 plan of Johnson & Johnson's talc liability unit.
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February 25, 2025
Alex Jones Asks To Maintain Stay On Sandy Hook Payment
Infowars founder Alex Jones told the Connecticut Appellate Court that he shouldn't be forced to pay the judgment that Sandy Hook families won in their long-running defamation case as he awaits a review by the state's Supreme Court, saying the plaintiffs are wrong that he discarded underlying constitutional arguments.
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February 25, 2025
How Joann's Bankruptcy Led To The Closure Of All Its Stores
Over the weekend, Joann Inc., the renowned fabric and crafts retailer, announced plans to close all 800 of its stores nationwide and wind down operations, after failing to draw bids from any potential buyers who planned to keep the stores open.
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February 25, 2025
NY AG Probe Latest Headache For Crumbling Property Empire
Following New York's passage of a tenant-friendly rent law in 2019, a spate of distressed Emerald Equity Group LLC properties are facing foreclosure or bankruptcy. Now, scrutiny by the state Attorney General's Office has added a new layer to the landlord's ongoing struggles.
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February 25, 2025
Purdue Gets Time To Document New $7.4B Ch. 11 Settlement
Counsel for bankrupt drugmaker Purdue Pharma received approval Tuesday for an extension of a mediation window during which litigation against nondebtors is paused after telling a New York judge that it has reached definitive terms on a new $7.4 billion settlement of opioid claims and needs time to finalize documentation surrounding the deal.
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February 24, 2025
Ex-Judge Hopes To Avoid Testimony In Atty Romance Probe
Former Texas bankruptcy judge David R. Jones said Monday that he's been talking with the U.S. Trustee with the aim of avoiding "live trial testimony" in the probe of his undisclosed romantic relationship with a former Jackson Walker LLP partner, arguing that he's already given a deposition.
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February 24, 2025
Claimant Attys Explain J&J Ch. 11 Plan Vote Switch
An attorney whose firm represented about 11,000 talc injury claimants told a Texas bankruptcy judge Monday about the process by which he cast ballots for his clients in favor of the $10 billion Chapter 11 plan settlement proposed by Johnson & Johnson's talc unit.
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February 24, 2025
La. Environmental Suits Not Discharged In Texaco's Old Ch. 11
A New York bankruptcy judge has allowed Texaco to reopen its 37-year-old bankruptcy case to adjudicate environmental cleanup lawsuits worth up to $100 million filed by Louisiana government entities but declined to discharge the suits, finding they were carved out of the confirmed Chapter 11 plan.
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February 24, 2025
Seyfarth Hires Veteran Bankruptcy Atty For Chicago Office
Seyfarth Shaw LLP hired a veteran bankruptcy and commercial litigation attorney as a partner for the restructuring and insolvency team in its Chicago office, the firm has announced.
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February 24, 2025
Wellpath Delays Chapter 11 Exit To Buy Time For Creditor Deal
Wellpath will delay confirmation of its Chapter 11 plan by two weeks to buy time to work through objections to the reorganization of its prison healthcare business, attorneys told a Texas bankruptcy judge Monday.
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February 24, 2025
Purdue's New Ch. 11 Plan Sidesteps Nonconsensual Releases
Mediators helping to craft a new settlement in the case of bankrupt OxyContin maker Purdue Pharma LP said in their latest update in New York bankruptcy court that the company's revised deal does not contain nonconsensual third-party waivers.
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February 24, 2025
Spirit's Ch. 11 Marks Shift To Debt Reduction Over Cost Cuts
With fresh court approval of its Chapter 11 plan in hand, Spirit Airlines is set to emerge from bankruptcy carrying $795 million less in debt, marking a new generation of air carriers to file for bankruptcy in order to shave debt rather than cut operating costs, according to a Fitch Ratings report.
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February 24, 2025
Spirit Gets Ch. 11 Plan OK; J&J Unit Brings Ch. 11 Plan To Trial
A bankruptcy judge gave Spirit Airlines the all-clear to eliminate nearly $800 million in debt while giving creditors control over the business; Johnson & Johnson's talc spinoff went to trial over a proposed Chapter 11 plan; and the U.S. Trustee's Office took issue with the final $52 million fee application from lawyers for a New York Catholic diocese.
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February 24, 2025
High Court Won't Hear Bankruptcy 'Safe Harbor' Dispute
The U.S. Supreme Court declined Monday to hear a dispute over what transactions are protected from clawback by a trustee, leaving in place a Second Circuit decision finding that the U.S. Bankruptcy Code's safe harbor provisions trump the trustee's state-law based fraudulent transfer claims.
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February 24, 2025
Steward Health Risking Patient Lives At Hospitals, Buyer Says
The buyer of eight Steward Health Care hospitals said the bankrupt company is putting patients' lives at risk by failing to provide funds and services it promised, urging a Texas federal judge to compel Steward to comply with contracts it signed as part of its hospital sales.
Expert Analysis
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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.
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SVB Bankruptcy Case Raises Asset Control Questions
The initial disputes in Silicon Valley Bank's bankruptcy case between the Federal Deposit Insurance Corp. and the debtor over tax refunds and deposits are likely to signal the rekindling of old battles for limited assets last fought during the Great Recession, say Jeffrey Rothleder and Maura McIntyre at Squire Patton.