Large Cap
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March 17, 2025
GOL Linhas Heading For May Hearing On Ch. 11 Plan
A New York bankruptcy judge Monday put GOL Linhas on a path for a May hearing on its Chapter 11 plan after overruling noteholder and U.S. Trustee's Office objections to the plan disclosure the Brazilian airline was seeking to send to its creditors.
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March 17, 2025
Brazilian Construction Giant Files Ch. 15 Case In NY
Odebrecht Engenharia E Construo SA, a Brazilian construction conglomerate, has filed for Chapter 15 protection in New York along with several affiliates seeking recognition of an insolvency case pending in São Paulo.
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March 17, 2025
US Trustee Leader Ousted, Eletson's Ex-Owners Face Fines
The reported removal of the director of the U.S. Department of Justice's bankruptcy watchdog program has thrown the historically apolitical office into broader waves of upheaval, a bankruptcy judge has said he would impose a daily fine on the former owners of Eletson, and another bankruptcy judge detailed why he overruled objections in Spirit Airlines' Chapter 11 plan. This is the week in bankruptcy.
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March 17, 2025
Yellow Corp. Creditors Threaten To File Competing Ch. 11 Plan
The official committee of unsecured creditors for troubled trucking company Yellow Corp. told a Delaware bankruptcy judge Monday the group would push its own version of a Chapter 11 proposal if the debtor cannot reach a global settlement with its creditors.
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March 17, 2025
Forever 21 Hits Ch. 11 Again With $1.6B Of Debt, Sale Plan
Fashion retailer Forever 21's U.S. operator has filed for Chapter 11 protection in Delaware bankruptcy court with $1.58 billion of funded debt and plans to wind down operations at its 354 U.S. stores if it fails to find a last-minute buyer for the business.
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March 14, 2025
Reed Smith To Fight Removal In $102M Shipping Award Suit
A New York federal judge has paused his order removing Reed Smith LLP as counsel for the former owners of reorganized international shipping group Eletson Holdings in litigation over a $102 million arbitral award while the BigLaw firm appeals the decision to the Second Circuit.
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March 14, 2025
Under The Radar: Bankruptcy News You May Have Missed
Avon's international unit asked a bankruptcy judge to extend the window during which only it can propose a Chapter 11 plan, consulting firm Azzur Group Holdings asked the Delaware bankruptcy court to approve its Chapter 11 plan disclosures and allow it to hold a vote, and Philadelphia's University of the Arts proposed selling a property for nearly $7 million. These are some of the bankruptcy stories you may have missed in the last week.
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March 14, 2025
Three Arrows Beats FTX To Get $1.5B Bankruptcy Claim
The liquidators of failed cryptocurrency hedge fund Three Arrows Capital have prevailed in a dispute with FTX Trading Ltd. over the allowance of a $1.53 billion bankruptcy claim, with a Delaware judge deciding to grant Three Arrows' bid to change its original claim despite FTX asserting that the move was made in bad faith.
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March 14, 2025
Mitel Networks' 5-Year Journey Into Bankruptcy
Business telecommunications company Mitel Networks hit bankruptcy earlier this month after a societal shift in working conditions began five years prior with the onset of the COVID-19 pandemic, according to its court filings.
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March 14, 2025
Wellpath Gets OK For Vote On Ch. 11 Reorganization Plan
A Texas bankruptcy judge on Friday gave prison healthcare business Wellpath permission to go ahead with a vote on its Chapter 11 plan after a claimants' committee said it would reserve objections for the plan confirmation hearing.
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March 14, 2025
Taxation With Representation: Davis Polk, Paul Weiss
In this week's Taxation With Representation, Mallinckrodt PLC and Endo Inc. combine, Rocket Cos. buys Redfin, and Endo divests its international pharmaceuticals business to Knight Therapeutics Inc.
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March 13, 2025
Judge To Weigh Doc Release In San Francisco Diocese Ch. 11
A California bankruptcy judge on Thursday said he wouldn't immediately decide whether to make public two documents the creditors committee in the Roman Catholic Archdiocese of San Francisco's Chapter 11 case wants to allow the public to see.
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March 13, 2025
Judge Won't Toss $35M Ch. 11 Bank Fee Clawback Lawsuit
A Delaware bankruptcy judge has denied a summary judgment bid to dismiss a lawsuit alleging that an $1.8 billion loan set medical testing company Millennium Laboratories on course for its 2015 Chapter 11.
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March 13, 2025
Bankruptcy Watchdog Ouster Crosses Into Uncharted Waters
The recent removal of the head of the U.S. Trustee's Office may be sending the previously nonpolitical bankruptcy watchdog into unknown territory, causing concerns in the legal space.
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March 13, 2025
Sandy Hook Families Oppose Revived Infowars Sale Bid
Families of the victims of the 2012 Sandy Hook Elementary School shooting have urged a Texas bankruptcy judge to block an Alex Jones-affiliated company's revived bid to buy his Infowars platform, saying it will cause delays in the more than three-year-old related bankruptcy cases.
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March 13, 2025
6 Firms Steer $6.7B Mallinckrodt, Endo Pharma Merger
Six law firms are guiding a $6.7 billion merger between Ireland's Mallinckrodt PLC and Pennsylvania-based Endo Inc. on a deal announced Thursday that the companies said will create a global pharmaceutical industry leader with projected 2025 revenues of $3.6 billion.
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March 13, 2025
Senate Stablecoin Bill Advances With Democrats Divided
The Republican-led U.S. Senate Banking Committee advanced its stablecoin framework Thursday with the help of Democrats who broke from ranking member Sen. Elizabeth Warren's opposition, while a separate bill on what is being called debanking passed along party lines.
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March 13, 2025
Alex Jones' Sandy Hook Atty Suspended Over Info Release
Former Alex Jones attorney Norm Pattis will be suspended from practicing law for two weeks, a Connecticut judge has ruled, capping a three-year ethics saga that started when Pattis asked an associate to send Sandy Hook families' medical records to the Infowars host's Texas bankruptcy lawyer.
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March 12, 2025
Spirit Airlines Release Ruling Is Another Boost For Opt-Outs
A New York bankruptcy judge's decision last week to approve a contentious form of third-party release in Spirit Airlines' Chapter 11 case signals that courts are increasingly comfortable finding that a creditor's silence can be used to establish their consent, an issue hotly debated in the months since the U.S. Supreme Court's Purdue Pharma ruling.
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March 12, 2025
Mo. Court Finds Exclusion Bars Mallinckrodt Opioid Coverage
A group of insurers have no coverage obligations under certain policies issued to drugmaker Mallinckrodt as a trust created from the company's first bankruptcy seeks to resolve underlying opioid claims with the help of insurance benefits, a Missouri state court ruled, finding a "your products" exclusion applicable.
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March 12, 2025
Willkie Beats Malpractice Suit Over ERISA Ch. 11 Advice
An Ohio federal judge affirmed Tuesday a bankruptcy court's decision tossing legal malpractice claims filed by a coal company executive's estate against Willkie Farr & Gallagher LLP, rejecting the estate's arguments it sufficiently alleged Willkie was grossly negligent in failing to warn the estate about a potential $6.5 billion ERISA liability.
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March 12, 2025
Northvolt's Ch. 11 Dismissal Possible After Swedish Filing
Bankrupt electric vehicle battery maker Northvolt AB told a Texas bankruptcy judge that its Chapter 11 case is possibly headed for dismissal after its parent company filed an insolvency case in Swedish court early Wednesday.
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March 12, 2025
HSBC Says Madoff Trustee Claims Were Filed Years Too Late
Units of the London-based bank HSBC say that more than $324 million of claims brought by the trustee overseeing the liquidation of Bernie Madoff's bankruptcy estate should be thrown out because they were filed more than a decade late.
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March 12, 2025
US Trustee Seeks Sanctions Against NY Lawyer
The federal bankruptcy watchdog asked a New York judge Wednesday to sanction a lawyer who allegedly concealed her conflicts of interest while representing a debtor and a buyer in two separate Chapter 11 cases.
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March 12, 2025
Ex-Eletson Owners Face $5K Daily Fine For Ch. 11 Challenge
A New York bankruptcy judge on Wednesday ordered the prebankruptcy shareholders of Greek shipping group Eletson Holdings to end their opposition to overseas recognition of the company's Chapter 11 plan or pay $5,000 a day in fines.
Expert Analysis
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The Case For Post-Bar Clerk Training Programs At Law Firms
In today's competitive legal hiring market, an intentionally designed training program for law school graduates awaiting bar admission can be an effective way of creating a pipeline of qualified candidates, says Brent Daub at Gilson Daub.
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5 Key Tips For Attorneys In The Subchapter V Arena
Subchapter V cases present unique challenges for the nondebtor parties-in-interest, and habits developed by attorneys in typical Chapter 11 cases do not necessarily translate, meaning creditors and their counsel should quickly take a proactive role in their cases to protect their interests, which can be done by attending the 341 meeting, analyzing the plan, and more, says Kelly Singer at Squire Patton.
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Attorneys Have An Ethical Duty To Protect The Judiciary
The tenor of public disagreement and debate has become increasingly hostile against judges, and though the legislative branch is trying to ameliorate this safety gap, lawyers have a moral imperative and professional requirement to stand with judges in defusing attacks against them and their rulings, says Deborah Winokur at Cozen O'Connor.
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Why The Debt Maturity Wall Is Still A Figment, For Now
While the phenomenon of the debt maturity wall — a growing wall of staggered corporate debt maturities — has been considered a looming problem since the aftermath of the 2008 global financial crisis, it’s unlikely to have significant consequences before 2025 due to factors such as quantitative easing and evolved lending practices, says Michael Eisenband at FTI Consulting.
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AI Can Help Lawyers Overcome The Programming Barrier
Legal professionals without programming expertise can use generative artificial intelligence to harness the power of automation and other technology solutions to streamline their work, without the steep learning curve traditionally associated with coding, says George Zalepa at Greenberg Traurig.
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10 Essential Bankruptcy Litigation Tips For In-House Counsel
Bankruptcy litigation is a complex and multifaceted area of law that poses unique challenges for in-house counsel, and there are several tools at legal professionals' disposal, like appraisals and understanding jurisdictions, to stay well-informed and protect their companies' interests, says Alison Ashmore at Dykema.
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Preparing Law Students For A New, AI-Assisted Legal World
As artificial intelligence rapidly transforms the legal landscape, law schools must integrate technology and curricula that address AI’s innate challenges — from ethics to data security — to help students stay ahead of the curve, say Daniel Garrie at Law & Forensics, Ryan Abbott at JAMS and Karen Silverman at Cantellus Group.
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Sellers Seeking Best Deal Should Focus On Terms And Price
Rising interest rates and a decline in the automotive mergers and acquisitions market mean that a failed deal carries greater stakes, and sellers therefore should pursue not only the optimum price but also the optimum terms to safeguard their agreement, says Joseph Aboyoun at Fox Rothschild.
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General Counsel Need Data Literacy To Keep Up With AI
With the rise of accessible and powerful generative artificial intelligence solutions, it is imperative for general counsel to understand the use and application of data for myriad important activities, from evaluating the e-discovery process to monitoring compliance analytics and more, says Colin Levy at Malbek.
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Rite Aid's Reasons For Ch. 11 Go Beyond Opioid Suits
Despite opioid-related lawsuits being the perceived reason that pushed Rite Aid into bankruptcy, the company's recent Chapter 11 filing reveals its tenuous position in the pharmaceutical retail market, and only time will tell whether bankruptcy will right-size the company, says Daniel Gielchinsky at DGIM Law.
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Navigating Discovery Of Generative AI Information
As generative artificial intelligence tools become increasingly ubiquitous, companies must make sure to preserve generative AI data when there is reasonable expectation of litigation, and to include transcripts in litigation hold notices, as they may be relevant to discovery requests, say Nick Peterson and Corey Hauser at Wiley.
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Finding Focus: Strategies For Attorneys With ADHD
Given the prevalence of ADHD among attorneys, it is imperative that the legal community gain a better understanding of how ADHD affects well-being, and that resources and strategies exist for attorneys with this disability to manage their symptoms and achieve success, say Casey Dixon at Dixon Life Coaching and Krista Larson at Stinson.
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A Look At DOJ's New Nationwide Investment Fraud Approach
Investment fraud charges are increasingly being brought in unlikely venues across the country, and the rationale behind the U.S. Department of Justice's approach could well be the heightened legal standards in connection with prosecuting investment fraud, says Jonathan Porter at Husch Blackwell.