Mid Cap

  • June 28, 2024

    Girardi's Ch. 7 Evidence Fight May Raise Novel Issues

    Tom Girardi told a California federal judge that FBI agents violated his constitutional rights by obtaining evidence from his law firm's bankruptcy trustee without a search warrant, an argument that, if successful, could hamstring prosecutors in his upcoming wire fraud trial and shake up law enforcement's dealings with trustees.

  • June 28, 2024

    US Logistics Liquidation Comes Amid Industry Headwinds

    A lender cutting off funding may have been the direct cause of trucking company U.S. Logistics Solutions Inc. filing for Chapter 7 liquidation in Texas, but it came amid a challenging environment for truck carriers.

  • June 28, 2024

    Telecom Co. Airspan Cleared For $200M Equity Swap

    Wireless telecommunications equipment maker Airspan Networks received court approval for its prepackaged Chapter 11 plan Friday in Delaware, paving the way for a $200 million debt-for-equity transaction that the company's attorney said will give it sure financial footing for the future.

  • June 28, 2024

    Lincoln Logs Maker Basic Fun Inc. Files For Ch. 11

    Basic Fun Inc., the toy-maker behind Lincoln Logs and Tinker Toys, filed for Chapter 11 bankruptcy Friday in a Delaware bankruptcy court, listing less than $100 million in assets and liabilities each. 

  • June 28, 2024

    Nixed Purdue Ch. 11 Plan May Leave States Ready For A Fight

    State attorneys general across the country could be gearing up for more opioid-related litigation against the Sackler family after the U.S. Supreme Court wiped out a $5.5 billion third-party release for the owners of bankrupt drugmaker Purdue Pharma LP, experts told Law360.

  • June 28, 2024

    Estate Owes $4.9M For Son-Of-Boss Scheme, US Says

    An estate owes $4.9 million in tax liabilities for a couple's scheme to artificially cancel out their capital gains, the federal government said in a complaint in Michigan federal court, arguing that the Son-of-Boss scheme constitutes fraud and its proceeds aren't entitled to bankruptcy protection.

  • June 28, 2024

    Manolete Sues MSR Partners For £15.6M Over Audit Failure

    Manolete Partners PLC has sued MSR Partners LLP for £15.6 million ($19.7 million), alleging that the accounting firm failed in auditing a peer-to-peer lending platform that went into administration in 2019.

  • June 27, 2024

    Credivalores, Lender's Noteholders Tussle On Ch. 11 Plan Vote

    Colombian consumer lending giant Credivalores-Crediservicios and an ad hoc group of noteholders on Thursday disputed the legitimacy of a vote count that would determine whether the lender's prepackaged Chapter 11 reorganization plan goes forward, leaving a New York bankruptcy judge to mull what must be done.

  • June 27, 2024

    Purdue Ruling Reshapes Conn. Catholic Diocese's Ch. 11 Plan

    The U.S. Supreme Court's decision Thursday banning bankruptcy judges from forcing non-debtor third parties to release claims against other non-debtors quickly reshaped a proposed Chapter 11 plan for a Connecticut Roman Catholic diocese, as a creditors committee withdrew a $32 million abuse victim trust proposal and proffered an immediate replacement.

  • June 27, 2024

    Kavanaugh Rips 'Ruinous' Decision To Kill 3rd Party Releases

    In a fiery dissent to the U.S. Supreme Court's split ruling Thursday that eviscerated Purdue Pharma LP's reorganization plan and, along with it, nonconsensual third-party releases in Chapter 11 cases, Justice Brett M. Kavanaugh became the champion of the bankruptcy system, defending its practicality — especially in mass tort cases.

  • June 27, 2024

    Ch. 7 Can't Free PE Firm From Suit, Diamond Polisher Says

    A Canadian diamond polisher urged a Michigan federal judge to keep alive its suit alleging that a lab-grown diamond company's private equity owner knew it couldn't make good on its promise to fund new facilities to process the gemstones, saying the fact that the company is going through bankruptcy can't shield the PE firm from liability for using its alter ego to make fraudulent statements.

  • June 27, 2024

    Sandy Hook Families Can't Seize Funds From Alex Jones' Co.

    A group of families looking to collect a $50 million defamation verdict against Alex Jones' media business can't seize its bank accounts, a Texas bankruptcy judge ruled Thursday, questioning why they asked a state court for control of the accounts hours after the bankruptcy court ordered a Chapter 7 trustee to take over the assets.

  • June 27, 2024

    Titanic Purdue Ruling Shifts The Balance Of Power In Ch. 11

    The U.S. Supreme Court's decision to strike down the Sackler family's liability shield in the Chapter 11 plan of Purdue Pharma LP not only eliminates a key tool to resolve mass tort liabilities through bankruptcy, it gives claimants more leverage and fundamentally changes the insolvency landscape in future cases, experts tell Law360.

  • June 27, 2024

    Justices Nix 3rd-Party Liability Releases In Purdue Ch. 11 Plan

    The U.S. Supreme Court shot down the validity of nonconsensual third-party releases in an opinion issued Thursday in the case of bankrupt drugmaker Purdue Pharma LP, potentially exposing the Sackler family members who own the company to personal liability for the company's role in the opioid crisis.

  • June 26, 2024

    Eiger Gets OK On Ch. 11 Drug Sale After Tripling Initial Bid

    A Texas bankruptcy judge on Wednesday approved Eiger BioPharmaceuticals' $35.1 million sale of its Avexitide product, after the drug company more than tripled an initial bid for the metabolic-disease treatment during a recent auction.

  • June 26, 2024

    Commitment Issues Raise Questions On Biotech's DIP Loan

    Synthetic biologics maker Solar Biotech Inc.'s proposed Chapter 11 loan hit a roadblock Wednesday when a Delaware bankruptcy judge balked at approving the financing package without a firm commitment from the lender, who is also serving as a stalking horse bidder for the debtor's assets.

  • June 26, 2024

    Cleaning Products Co. Supply Source Cancels Ch. 11 Auction

    Cleaning products company Supply Source Enterprises Inc. told the Delaware bankruptcy court it wouldn't go through with a planned auction of all its assets because only its stalking horse bidder made a satisfactory offer.

  • June 26, 2024

    Small Biz Ch. 11s Soared Before Sub V Liability Limit Lapsed

    U.S. bankruptcies under Subchapter V of Chapter 11 surged to a single-day record last week, as small businesses including packaged waffle maker Julian's Recipe rushed to file before the expiration of a key provision that would have made some of them ineligible.

  • June 26, 2024

    Sleep Tech Co. ProSomnus Can Seek Votes For Ch. 11 Plan

    ProSomnus, a developer of devices aimed at preventing sleep apnea, can solicit its creditors' votes on the company's Chapter 11 plan after it made revisions responding to objections raised by the U.S. Trustee's Office, a Delaware bankruptcy judge said Wednesday.

  • June 26, 2024

    Tech Co. GigaMonster Seeks Vote For Ch. 11 Wind-Down Plan

    Defunct internet service provider GigaMonster asked for the Delaware bankruptcy court's sign-off to send its Chapter 11 liquidation and wind-down plan out for a vote by creditors, following a settlement in which the company's unsecured creditors agreed to drop a lawsuit against its controlling investors.

  • June 26, 2024

    Pricey Chapter 11 Process Fuels Rise In Prepack Filings

    Companies that go bankrupt are increasingly opting to first negotiate restructuring deals out of court so they can enter Chapter 11 toting a turnaround plan already accepted by creditors, saving potentially hundreds of thousands of dollars in legal costs and dodging some of the stigma that bankruptcy attracts.

  • June 26, 2024

    Calif. Atty Won't Contest Claim He Stole Up To $282M

    A California lawyer has stopped defending himself against bar discipline charges that accuse him of stealing as much as $282 million from clients, and his posture has forced the cancelation of a trial that was scheduled for this week and makes his disbarment almost certain.

  • June 26, 2024

    Pharma Co. PhaseBio Can Exit Ch. 11 With Wind-Down Plan

    A Delaware bankruptcy judge on Wednesday gave her blessing for pharmaceutical developer PhaseBio Pharmaceuticals Inc. to liquidate its assets and wind down after settlement agreements with creditors and a business partner cleared a path for it to exit Chapter 11 after roughly 19 months.

  • June 26, 2024

    Ex-BHS Director Ordered To Pay £50M Over Firm's Collapse

    A London judge has ordered a former director of the now-defunct British Home Stores to pay £50 million ($63.2 million) in damages after concluding he had committed trading misfeasance and wrongful trading during the company's high-profile downfall.

  • June 26, 2024

    Mountain Sports Asks Ch. 11 Court For OK On Inventory Sale

    Outdoor clothing and sporting goods business Mountain Sports LLC asked a Delaware bankruptcy judge to approve inventory sales by two retail chains the company owns as part of its Chapter 11 case.

Expert Analysis

  • Sellers Seeking Best Deal Should Focus On Terms And Price

    Author Photo

    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.

  • General Counsel Need Data Literacy To Keep Up With AI

    Author Photo

    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.

  • Rite Aid's Reasons For Ch. 11 Go Beyond Opioid Suits

    Author Photo

    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.

  • Navigating Discovery Of Generative AI Information

    Author Photo

    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.

  • Finding Focus: Strategies For Attorneys With ADHD

    Author Photo

    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.

  • A Look At DOJ's New Nationwide Investment Fraud Approach

    Author Photo

    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.

  • Decoding The Digital Asset Landscape In Bankruptcy

    Author Photo

    Recent cases show the explosion of cryptocurrency as an asset class has created new challenges for debtors-in-possession, bankruptcy trustees, and federal and state receivers, and fiduciaries will have to consider a number of legal and practical considerations when determining how to manage these assets in insolvency, say David Castleman at Otterbourg and Anthony Facciano at Stretto.

  • How Fla. Bankruptcy Ruling May Affect Equity Owners

    Author Photo

    A Florida bankruptcy court’s recent ruling in Vital Pharmaceuticals — which rejected the Third Circuit’s Majestic Star decision that determined a bankrupt corporation’s flow-through status was not protected by the automatic stay — may significantly affect how equity owners can mitigate the impact of flow-through structures in bankruptcy, say Eric Behl-Remijan and Natasha Hwangpo at Ropes & Gray.

  • Calif. Ruling May Open Bankruptcy Trustees To Tort Liability

    Author Photo

    In Martin v. Gladstone, a recent California appellate court decision, the application of tort concepts to bankruptcy trustees could pose a new concern for trustees and federal receivers when controlling and maintaining commercial property, says Jarrett Osborne-Revis at Buchalter.

  • Co. Directors Must Beware Dangers Of Reverse Factoring

    Author Photo

    New accounting requirements governing the disclosure of so-called reverse-factoring programs have revealed billions of dollars worth of hidden liabilities on companies’ ledgers, and directors of corporate boards should review their companies’ books for this hidden danger, say Garland Kelley at Looper Goodwine, Amin Al-Sarraf at Locke Lord and Jill Basinger at Discovery Land.

  • Attorneys, Law Schools Must Adapt To New Era Of Evidence

    Author Photo

    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.

  • Why 7th Circ. Libel Ruling Is Crucial For The Media

    Author Photo

    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.

  • Tips For Litigating Against Pro Se Parties In Complex Disputes

    Author Photo

    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.

Can't find the article you're looking for? Click here to search the Bankruptcy Authority Mid Cap archive.