Large Cap
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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.
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February 24, 2025
Zips Car Wash Gets 4-Member Ch. 11 Creditor Committee
The U.S. Department of Justice's bankruptcy watchdog named landlords and trade vendors to advocate for unsecured creditors slated to get no recoveries in the Texas Chapter 11 of Zips Car Wash.
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February 24, 2025
Yellow Corp. Gets OK To Sell More Terminals For $15.1M
A Delaware bankruptcy judge has signed off on Yellow Corp.'s $15.1 million sale of trucking terminals and other property to three buyers, as the defunct trucking company looks to add to the more than $2 billion it has already brought in from asset sales in Chapter 11.
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February 21, 2025
J&J Talc Spin-Off Trial Details Law Firms' Rift Over Ch. 11 Deal
Personal injury attorneys on Friday described how their firms' long relationship turned sour last summer during the fourth day of trial in the Texas bankruptcy of Johnson & Johnson's talc spin-off.
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February 21, 2025
Real Estate Recap: 'Park Ave' Effect, Federal Leases, Atty Hires
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including a fourth-quarter "Park Avenue Phenomenon" seen by top brokerages, industry reaction to the potential federal lease slimdown, and a senior analyst's projection for family office investment in commercial real estate.
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February 21, 2025
Under The Radar: Bankruptcy News You May Have Missed
Sticky's Chicken asked a New York bankruptcy judge to flip its Chapter 11 case to a Chapter 7 after cold and congestion pricing undercut its plans to reemerge from bankruptcy a healthier company, a former Silicon Valley Bank employee asked a bankruptcy judge to approve her late submission of a claim in the bankruptcy case of SVB's defunct parent and FTX defended adversary cases it brought over alleged fraud in the debtor's prebankruptcy acquisition of a stock trading platform.
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February 21, 2025
B. Riley Founders, Board Sued In Del. Over Investment Losses
A B. Riley Financial Inc. stockholder has launched a derivative suit seeking hundreds of millions of dollars in damages for the company in Delaware's Court of Chancery, alleging director conflicts tied to investments in now-bankrupt holding company Franchise Group Inc., led by a longtime friend of a B. Riley co-founder.
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February 21, 2025
US Trustee Opposes Opt-Out Releases In Tehum Ch. 11 Plan
The U.S. Trustee's Office objected Friday to the opt-out mechanism for obtaining third-party releases in the Chapter 11 plan from prison healthcare provider Tehum Care Services, arguing that it makes the releases nonconsensual.
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February 21, 2025
Why EV Maker Nikola Pulled Into Ch. 11
Nikola Corp., maker of electric and hydrogen-powered trucks, struggled with financial difficulties common to its field, the costs of litigation in which it became embroiled and expenses tied to a voluntary battery recall, cumulatively leading it to bankruptcy.
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February 21, 2025
Latham Promotes 19 Counsel To Partner In US, Europe & Asia
Less than three months after electing two dozen associates to the partnership, Latham & Watkins LLP said it has elevated 19 counsel from 14 offices around the world to partner, effective March 1.
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February 20, 2025
Select SPAC Targets Are Soaring Ahead Of The Pack
A select breed of companies that went public through mergers with special purpose acquisition companies are performing well lately — hailing mostly from a few specific industries — in stark contrast to the vast majority of SPAC merger targets that have flopped over the past few years, according to data released on Thursday.
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February 20, 2025
J&J Says Spinoff Ch. 11 Best Chance For Talc Recoveries
Johnson & Johnson counsel and supporters of the Chapter 11 plan proposed by its talc spinoff Thursday told a Texas bankruptcy judge that the plan's $10 billion talc settlement is the best deal for thousands of claimants.
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February 20, 2025
Meet The Attys Guiding EV Maker Nikola's Ch. 11
A group of lawyers from Potter Anderson & Corroon LLP and Pillsbury Winthrop Shaw Pittman LLP is guiding Nikola Corp., a manufacturer of electric and hydrogen-powered trucks, in its Chapter 11, as the company plans to sell its assets after facing financial struggles that stemmed from a battery pack recall in 2023.
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February 20, 2025
Ex-Eletson Owners Given Reprieve On Ch. 11 Sanction Bid
The former owners and managers of Greek shipping group Eletson Holdings Inc. have until Monday to comply with the orders of a New York bankruptcy judge concerning the change in ownership of the business under a court-approved Chapter 11 plan, or they will face daily monetary sanctions.
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February 20, 2025
Terraform Ch. 11 Financial Adviser Overbilled, Objectors Say
An adviser to unsecured creditors in the Delaware Chapter 11 of defunct cryptocurrency software developer Terraform Labs has "unreliable" fee records, with some of its professionals billing over 400 hours a month across multiple bankruptcies, the U.S. Trustee's Office and a plan administrator have alleged.
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February 20, 2025
No Deal In Sight For DOJ's Case Against Amex GBT Merger
The Justice Department and American Express Global Business Travel appear unlikely to settle a government challenge to the planned $570 million purchase of CWT, according to a New York federal court filing that came just a day after the transaction got a boost from U.K. authorities.
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February 20, 2025
Spirit Airlines' Bankruptcy Plan Approved With Opt-Outs Intact
A New York bankruptcy judge said Thursday he will greenlight budget air carrier Spirit Airlines' Chapter 11 plan to hand control of the business to creditors and approve third-party releases that prompted objections from the U.S. Securities and Exchange Commission and others, setting up Spirit to exit bankruptcy and wipe out almost $800 million of debt.
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February 20, 2025
Forensic Firm Can't Take Control Of Giuliani Assets
A New York federal judge has denied a request by the forensic firm hired to probe Rudy Giuliani's assets to intervene in a lawsuit launched by two former Georgia poll workers who won a $148 million defamation award against him, preserving a settlement that the election workers and Giuliani reached last month.
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February 20, 2025
Yellow Corp. Urges Ch. 11 Judge To OK $11.5M Terminal Sales
Defunct trucking company Yellow Corp. asked a Delaware bankruptcy judge to sign off on the $11.5 million private sale of two leased truck terminals to ABF Freight System Inc.
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February 19, 2025
Ex-Perella Weinberg Partner Denies Plot To Split Firm
A former Perella Weinberg partner on Wednesday testified that he had no plans to break off and start his own restructuring advisory shop before the investment banking firm fired him for purportedly violating his nonsolicitation provisions of his partnership agreements.
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February 19, 2025
J&J Talc Unit Exec Defends Ch. 11 Plan On Stand
A top executive of Johnson & Johnson's latest talc spinoff spent a day on the stand in a Texas bankruptcy court taking questions regarding the company's relationship with Johnson & Johnson and its plans to settle talc liability in bankruptcy.
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February 19, 2025
Catching Up With New Bankruptcy Case Action
A New Jersey-based generic-drug maker entered Chapter 11, listing up to $50 million in debt and saying two secured loans were inhibiting its growth. A media production company that helps brands like Target sought Chapter 11 protection and disclosed $53.5 million in liabilities, noting that its struggles included being overleveraged. And a sustainable resource recovery company entered Chapter 7 with liabilities exceeding $100 million.
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February 19, 2025
Prospect Medical Blames Yale Lawsuit For Ch. 11 Filing
Bankrupt hospital operator Prospect Medical Holdings is seeking to convince a Connecticut federal judge to have a bankruptcy court oversee a $435 million lawsuit through which Yale New Haven Health is trying to back out of buying three Prospect hospitals, saying the case played a key role in its bankruptcy filing.
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February 19, 2025
Backup Infowars Bidder Wants Judge To Restart Auction
The backup bidder for Alex Jones' Infowars program has asked a Texas bankruptcy judge to restart an auction for the assets after a previous sale to the parent company of satirical newspaper The Onion was rejected in December.
Expert Analysis
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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.