Mid Cap

  • 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.

  • June 25, 2024

    2 Federal Judges Stall Biden's Student Loan Debt Relief

    Federal judges in Kansas and Missouri on Monday partially blocked the Biden administration from implementing its latest student debt relief program, with both finding that Congress did not give clear authorization through the Higher Education Act for the loan forgiveness plan, as argued by the federal government.

  • June 25, 2024

    Cigna Objects To Ch. 11 Sale Of Western Pa. Nursing Homes

    Cigna Health and Life Insurance Co. filed an objection in Pennsylvania bankruptcy court to the proposed sale of a group of Pittsburgh-area nursing homes, seeking assurances that it will be warned if the nursing homes intend to leave behind their contracts with Cigna as part of the sale.

  • June 25, 2024

    Texas Appeals Court Reverses Dallas Transit Contractor's Win

    A Texas appeals court has revived a subcontractor's lawsuit against a company that oversees the Dallas Area Rapid Transit Authority's services for people with disabilities, saying this week the subcontractor's allegations were strong enough to withstand a motion to dismiss.

  • June 25, 2024

    Chancery Tentatively OKs $15.5M Lordstown SPAC Suit Deal

    A $15.5 million class settlement for a stockholder suit that challenged the special-purpose acquisition company deal that took Lordstown Motors Inc. public won tentative Delaware Court of Chancery approval Tuesday, conditioned on confirmation of one expense claim.

  • June 25, 2024

    The Future Of AI May Lead Straight To Bankruptcy Court

    As interest in artificial intelligence mounts, so do the number of bankruptcies for AI-linked companies, a trend that may be the "tip of the iceberg" as familiar tech-bubble hype yields to the need to turn a profit, experts told Law360.

  • June 25, 2024

    Bankruptcy Vet Joins Saxton & Stump As Practice Chair

    Saxton & Stump LLC announced Tuesday that an attorney with over 35 years of experience working with banks and other corporate entities has become a shareholder and chair of the firm's bankruptcy and financial restructuring group.

  • June 25, 2024

    AI Video Startup StoryFile Gets OK For Ch. 11 Loan

    Artificial intelligence video company StoryFile on Tuesday got final approval from a New York bankruptcy judge to take out a $900,000 loan to fund its bankruptcy case.

  • June 24, 2024

    Ch. 11 Fee Cases Remanded After 'Very Practical' Decision

    Now that the U.S. Supreme Court has decided refunds aren't owed to debtors who overpaid the U.S. Trustee's Office under a previous fee structure, it sent three similar cases that were pending before it back to the lower courts to give them a crack at applying the ruling.

  • June 24, 2024

    Justices End Irish Landowner's Fight Against $23M Clawback

    The U.S. Supreme Court on Monday declined to hear a challenge by Irish businessman Sean Dunne and his ex-wife Gayle Killilea to a Chapter 7 trustee's roughly $23 million avoidance action win, leaving intact a Connecticut jury verdict and a Second Circuit rejection of the onetime couple's claims.

  • June 24, 2024

    Giuliani Trustee Sought, Eletson Has 3 Plans Up For Vote

    Rudy Giuliani's creditors urged a bankruptcy court to appoint a trustee to oversee his finances, while the creditors of shipping company Eletson Holdings will be asked to choose between three competing Chapter 11 plans, and nearly all of biotechnology firm NanoString's creditors will be paid in full.

  • June 24, 2024

    Alex Jones Trustee Asks To Halt Actions Against Media Co.

    The trustee in Alex Jones' Chapter 7 liquidation urged a Texas bankruptcy court to broaden that case's litigation freeze to cover the company that runs Jones' online show, arguing that doing so would help him conduct a smoother wind-down of the right-wing media personality's estate by protecting its assets.

  • June 24, 2024

    Texas Trucking Co. Files Ch. 7 With Over $100M In Debt

    Transportation company U.S. Logistics Solutions Inc. entered Chapter 7 in a Texas bankruptcy court, dragging over $100 million in liabilities it will seek to address through liquidation.

  • June 24, 2024

    Biotech Co. Hits Ch. 11 With Plans For Sale And 'Reboot'

    Virginia-based synthetic biology products maker Solar Biotech Inc. filed for Chapter 11 bankruptcy in Delaware with plans to sell its assets, saying a difficult capital market, the loss of a major client and the pandemic drained its cash and caused it to furlough employees.

  • June 24, 2024

    Justices Send 3 US Trustee Fee Cases Back To Lower Courts

    The U.S. Supreme Court on Monday vacated three appellate court decisions ordering refunds to debtors who had overpaid U.S. Trustee's Office fees under a previous fee structure and remanded the cases for further adjudication after resolving the issue earlier this month.

Expert Analysis

  • 3 Cases Show Tensions Between Arbitration And Insolvency

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    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.

  • Air Ambulance Ch. 11s Show Dispute Program Must Resume

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    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.

  • Pro Bono Work Is Powerful Self-Help For Attorneys

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    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.

  • Why Delaware ABCs Are No Longer As Easy As 1-2-3

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    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.

  • Diamond Sports Cases Shed Light On Executory Contracts

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    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.

  • Playing In A Rock Cover Band Makes Me A Better Lawyer

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    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.

  • The Pop Culture Docket: Judge Espinosa On 'Lincoln Lawyer'

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    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.

  • Balancing Justice And Accountability In Opioid Bankruptcies

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    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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