Large Cap
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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.
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February 19, 2025
Silver Point Knocks SEC Suit Over Attorney Info Access Rules
Investment adviser Silver Point Capital LP said it did not need to write special rules banning a now-deceased former BigLaw bankruptcy attorney from sharing information between its business units, accusing the U.S. Securities and Exchange Commission of filing a "farfetched theory of noncompliance" in a Connecticut enforcement action.
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February 19, 2025
Conn's Can Sell Florida Unit's Property To AutoZone For $8M
A Texas bankruptcy judge on Wednesday approved a request from Conn's, a furniture and appliance retailer, for permission to sell some of its Florida-based subsidiary's real estate to auto parts chain AutoZone for $8.33 million.
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February 19, 2025
Franchise Group Gets Tentative Deal On Ch. 11 Voting Process
Retail chain operator Franchise Group Inc. and a group of lenders told a Delaware bankruptcy judge on Wednesday they were close to agreeing on a disclosure statement for Franchise Group's Chapter 11 plan that will let the debtor take votes on the proposed debt-for-equity and liquidation deal.
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February 19, 2025
Trustee Deal Clears Path For Steward To Tap Latham In Ch. 11
Hospital operator Steward Healthcare cleared up the only objection to hiring a second law firm in its Texas Chapter 11, striking an agreement with the Office of the U.S. Trustee to limit services it plans to seek from Latham & Watkins LLP after two of its bankruptcy attorneys joined the firm last year.
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February 19, 2025
Tupperware Still Pursuing Ch. 11 Plan After Sale To Lenders
Counsel for Tupperware told the Delaware bankruptcy court Wednesday the company needed more time to propose a confirmable Chapter 11 plan after it sold its business to a group of secured lenders.
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February 18, 2025
Wellpath Seeks March Ch. 11 Exit Despite Creditor Concerns
A Texas bankruptcy judge asked prison healthcare provider Wellpath Holdings to revise its proposed Chapter 11 plan disclosure statement after a lengthy hearing Tuesday where Wellpath underlined its need to quickly confirm a plan despite creditor concerns over the speed of the case.
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February 18, 2025
J&J Talc Unit Launches 2-Week $10B Ch. 11 Settlement Trial
A Johnson & Johnson spinoff began its case Tuesday for a $10 billion Chapter 11 settlement of the company's talc liability before a Texas bankruptcy judge while opponents of the deal questioned the legitimacy of the bankruptcy case and the plan vote.
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February 18, 2025
Willkie DQ'd, Guo Clawbacks Continue
Franchise Group must find new bankruptcy counsel after a judge in Delaware found Willkie Farr & Gallagher LLP was conflicted in its case. The court-appointed trustee investigating Miles Guo's shell companies got another deadline extension to chase down estate funds. Spirit Airlines is awaiting confirmation of its reorganization plan. And bankrupt bitcoin miner Rhodium Encore has hit back at its landlord in court, alleging a campaign of sabotage.
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February 18, 2025
US Trustee Balks At Jones Day Fees In NY Diocese Ch. 11
The U.S. Trustee's Office is opposing some of the nearly $52 million in fees billed by Jones Day lawyers for their work as debtors' lead counsel for the Catholic diocese on New York's Long Island, as total fees in the case have surpassed $120 million.
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February 18, 2025
Steward Says Mass. Owes $22M For Withheld Patient Claims
Steward Health Care has sued Massachusetts in Texas bankruptcy court to recover $22 million, which the insolvent hospital operator alleged it is owed for treating low-income patients in Massachusetts after the company filed for Chapter 11 relief.
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February 18, 2025
Kossoff Ch. 7 Trustee Can Pursue Clawbacks After Court Win
The Chapter 7 trustee overseeing the estate of bankrupt law firm Kossoff PLLC has won permission to continue litigating clawback actions against some 50 parties, including Citibank and Bloomingdale's, after a New York federal judge sided with him in a dispute over the firm's decade-old tax obligations.
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February 18, 2025
Texas Boutique Gains 7 Attys In Bankruptcy Firm Tie-Up
Vartabedian Hester & Haynes LLP, a commercial litigation boutique founded in the Lone Star State last year, has added a seven-lawyer bankruptcy team in Fort Worth through a merger with Forshey Prostok LLP, including that firm's two co-founders.
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February 15, 2025
Real Estate Recap: Practice Pivot, Tariff Tax, Lennar's Lawyers
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including the latest shifts in real estate law practice, a Big Law leader's predictions for a looming tariff "tax" debate, and a look at the legal talent behind homebuilder Lennar Corp.'s $5.8 billion spinoff.
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February 14, 2025
Guo Ch. 11 Trustee Wins 3rd Clawback Extension, Seeks $38M
A Connecticut bankruptcy judge for a third time on Friday extended deadlines for a Chapter 11 trustee to file adversary proceedings against individuals and entities that received money from Chinese exile Miles Guo or his alter ego shell companies, noting that this order would be the final blanket extension.
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February 14, 2025
Under The Radar: Bankruptcy News You May Have Missed
The Chapter 11 trustee overseeing Chinese exile Miles Guo's bankruptcy estate hit dozens of new targets, including Salesforce and Grubhub, with adversary proceedings; the Chapter 7 trustee for Alex Jones asked permission to return deposits to bidders on Jones' assets; and the Office of the U.S. Trustee objected to the proposed plan of prison healthcare company Wellpath Holdings Inc., saying the plan contains impermissible third-party releases and Wellpath proposed an amended plan.
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February 14, 2025
SmileDirectClub Trustee Gets OK To Hire Orrick
The Chapter 7 trustee liquidating SmileDirectClub can hire Orrick Herrington & Sutcliffe LLP as special litigation counsel, a Texas bankruptcy judge said Friday, concluding that Orrick met U.S. Bankruptcy Code requirements, despite him not being notified earlier of Orrick's previous work for the trustee.
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February 14, 2025
Meet The Key Players In J&J's Talc Spinoff Ch. 11 Trial
Johnson & Johnson's talc liability unit Red River is set to defend its Chapter 11 plan at a hotly contested, nine-day hearing that kicks off Tuesday, when U.S. Bankruptcy Judge Christopher Lopez will be asked to confirm a framework under which a $9 billion trust would pay out for claims that J&J's baby powder caused ovarian and other gynecological cancers.
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February 14, 2025
Conn. Diocese Reaches $31M Deal With Abuse Claimants
The bankrupt Roman Catholic Diocese of Norwich, Connecticut, has struck a deal to pay $31 million to sexual abuse survivors, the diocese and its unsecured creditors' committee jointly announced Friday.
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February 14, 2025
Joann Fabric Gets OK For Store Closures, Fast Auction
A Delaware bankruptcy judge on Friday approved motions by Joann Fabrics Inc. to start holding going-out-of-business sales at more than half the crafts and fabric retail chain's locations, and to have an offer in hand for its remaining assets before the end of the month.
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February 13, 2025
Chinese Construction Co. Gets OK For $40M Ch. 11 Financing
CCA Construction Inc., a Chinese state-owned construction firm, received approval to fund its Chapter 11 case with a secured, $40 million debtor-in-possession loan from its parent company, overruling an objection from a developer that had won a $1.6 billion judgment against CCA.
Expert Analysis
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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.