Mid Cap
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May 31, 2024
Girardi Not Famous Like Avenatti, Feds Say In Panning Jury Form
Prosecutors pushed back Friday on Tom Girardi's request to ask prospective jurors in his California federal fraud trial if they have seen his wife's television show or reports about his law firm's scandal, saying Girardi's fame is not similar to convicted attorney Michael Avenatti's, whose case included a written juror questionnaire.
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May 31, 2024
9th Circ. Affirms Toss Of Health Center's $8M Cigna Row
The Ninth Circuit on Friday declined to revive a suit from a holding company for a drug and alcohol treatment center claiming Cigna forced it into bankruptcy by not paying more than $8 million in authorized claims, finding the health insurer did not abuse its discretion in denying the payments.
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May 31, 2024
Takeoff Technologies Seeks Customer Funds For Ch. 11 Case
A Delaware bankruptcy judge told Takeoff Technologies on Friday that he was prepared to approve $9.6 million in Chapter 11 financing from customers trying to avoid losing support for the company's grocery inventory automation software.
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May 31, 2024
NY Appeals Court Backs Trimming Of 50 Cent Liquor Spat
A New York appeals court has said a lower court rightly dismissed some components of a suit brought by a fine liquors company owned by rapper 50 Cent, allowing Jim Beam and its parent company to escape the rapper's claims they aided a fraud and rejecting his request for punitive damages and attorney fees.
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May 31, 2024
IRS Can Seek Tax Beyond Bankruptcy Deal, 11th Circ. Affirms
A deal between the IRS and an Alabama real estate developer to settle his tax debt for $2 million during Chapter 11 bankruptcy proceedings wasn't final, and the agency can demand additional taxes from him, the Eleventh Circuit affirmed Friday.
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May 31, 2024
Lindell No-Shows Amid Solvency Concerns In Sanctions Fight
Attorneys for My Pillow CEO Mike Lindell were nowhere to be found Friday as a D.C. federal judge mulled how much they should pay in sanctions for counterclaims in election company Dominion's ongoing libel suit, saying he'd likely set an amount in the coming weeks.
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May 31, 2024
Spencer Fane Adds Minneapolis Bankruptcy Partner
Spencer Fane LLP has added a bankruptcy partner from Stinson LLP to its Minneapolis office.
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May 31, 2024
Fight Between Trustee, Law Firm May Mean Less For Creditors
In the bankruptcy of collapsed California debt relief law firm Litigation Practice Group, a new law firm confirmed this week that it's not making payments to the bankruptcy estate, a situation that may limit a bankruptcy trustee's ability to make payments to creditors across the country.
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May 31, 2024
DMK Pharma Says Contaminated Injectors Led To Ch. 11 Filing
Drugmaker DMK Pharmaceuticals Corp. has filed an adversary complaint in Delaware bankruptcy court, saying its epinephrine-injector supplier failed to maintain contaminant-free manufacturing facilities sold to the debtor, which caused one of them to be shut down by federal regulators and ultimately led the company to file for Chapter 11 protection.
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May 31, 2024
Disbarring Giuliani Would 'Protect The Public,' DC Panel Says
A Washington, D.C., attorney ethics panel agreed Friday that Rudy Giuliani's role in former President Donald Trump's attempt to overturn Pennsylvania's presidential election in 2020 amounted to misconduct "of the utmost seriousness," and that disbarring him would "protect the public, the courts, and the integrity of the legal profession."
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May 30, 2024
Weiss Fund Survives Motion To Convert To Ch. 7
A New York judge shot down a bid by two financial firms, Jefferies and Leucadia, to convert the Chapter 11 case of Weiss Multi-Strategy Advisers LLC to Chapter 7, saying that it is premature to determine several components of the issue.
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May 30, 2024
Careismatic Gets OK For Ch. 11 Plan With Debt Equity Swap
A New Jersey bankruptcy judge said Thursday he would confirm medical scrubs distributor Careismatic Brands LLC's Chapter 11 plan, which includes a debt-equity swap aimed at wiping out all $782 million of the debtor's secured debt after no buyers for the debtor's assets materialized.
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May 30, 2024
Grocery Automation Biz Files Ch. 11 With $13M In Debt
E-grocery automation system maker Takeoff Technologies filed for Chapter 11 protection Thursday in Delaware bankruptcy court with nearly $13 million in debt, saying that, after eight years in business, it had been unable to generate the cash flow it needed to turn a profit.
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May 30, 2024
Creditors, Watchdog Denied Estate Trustee In Eletson Ch. 11
Shipping company Eletson will retain control of its contentious reorganization after a New York bankruptcy judge shot down requests to name a Chapter 11 trustee and said that those vying for such an appointment hadn't met the high bar required for the court to grant it.
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May 30, 2024
Family-Owned PE Firm Wins Ch. 11 Bid To Buy Ill. Dairy Co.
Oberweis Dairy, an ice cream and dairy producer in Illinois, picked a family-owned private equity firm based in Florida as the prevailing bidder for its assets during a Chapter 11 auction, beating the $20 million stalking-horse bid the debtor received in April.
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May 29, 2024
Why Giuliani's Creditors Say He Can't Run His Own Ch. 11
The official committee of unsecured creditors in Rudy Giuliani's Chapter 11 has asked a New York bankruptcy judge to hand control of the Republican firebrand's estate to a trustee, bringing to a head months of creditor allegations that Giuliani has been skipping out on his bankruptcy obligations.
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May 29, 2024
Bankrupt EV Charger Co. Execs Hid Liquidity Woes, Suit Says
Three current and former executives of bankrupt electric-vehicle charging infrastructure company Charge Enterprises Inc. face an investor's proposed class action claiming the executives concealed a liquidity crisis involving the company's founder and his investment advisory firm that allegedly precipitated Charge's bankruptcy.
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May 29, 2024
Honeywell Ends Suit Over $8.75M Bond For Army Base Work
A Pennsylvania federal court has approved a request from Honeywell International Inc. to drop its lawsuit over an $8.75 million performance bond whose issuer allegedly balked at paying to replace a bankrupt subcontractor for a long-delayed job at the Tobyhanna Army Depot.
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May 29, 2024
Drug Co. Eiger Can Probe Lender On Foiled PIPE Deal Fallout
Eiger BioPharmaceuticals received a Texas bankruptcy judge's approval Wednesday to collect documents from lender Innovatus Life Sciences tied to what the rare-disease drugmaker called Innovatus's decision to "manufacture" a default under a credit agreement, a move that allegedly blew up a potential financing deal and precipitated Eiger's Chapter 11 filing.
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May 29, 2024
Tremont Chicago Hotel Reaches Agreement With Lender
A defunct hotel near Chicago's commercial center has reached an agreement with its senior secured creditor, resolving its request to dismiss the case or lift the Chapter 11 automatic stay while reserving the right to revisit the stay under some circumstances.
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May 29, 2024
Archdiocese Seeks NY High Court Clarity In Abuse Row
The Archdiocese of New York asked a state appeals court for leave to appeal to the state's highest court to clarify the proper pleading standards in a coverage dispute brought by Chubb over sexual abuse claims, arguing Chubb's "collective pleading strategy" is inconsistent with state precedent.
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May 29, 2024
Non-Atty Advice To Debtors Is Unprotected, 2nd Circ. Told
New York urged the Second Circuit on Wednesday to find that stopping a nonprofit focused on bankruptcy education and the South Bronx pastor it's working with from advising low-income debtors represents a content-neutral regulation on who can practice law that does not violate the First Amendment.
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May 29, 2024
Pa. Seeks New Bankruptcy Judge As Vacancies Increase
Two vacancies and a third open seat coming at the end of July in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania has led the Third Circuit to announce this week it is accepting applications to fill the court's bench.
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May 29, 2024
Weinstein Could Face Added Assault Charges In Retrial
New York prosecutors planning to retry Harvey Weinstein this fall after his rape conviction was overturned said Wednesday they may file an expanded indictment after hearing from new sexual assault claimants.
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May 28, 2024
$10M Policy Excludes Tobacco Group's Suit, Court Told
An insurer told a North Carolina federal court Tuesday that it doesn't owe coverage to a tobacco growers' cooperative saddled with paying out a $100 million settlement for farmers, arguing that its $10 million policy excludes contract claims.
Meet The Attorneys Guiding Grocery Co. Takeoff's Ch. 11
A team of attorneys from Young Conaway Stargatt & Taylor LLP and Sheppard Mullin Richter & Hampton LLP is guiding grocery automation system maker Takeoff Technologies through its Chapter 11 case in Delaware.
Cue Health Spiraled Into Ch. 7 After FDA Nixed COVID Tests
Medical-test maker Cue Health's promise of "lab-quality" COVID-19 tests fell apart after federal regulators rang the alarm that its tests were less reliable than advertised, leading the company to file for Chapter 7 liquidation in Delaware bankruptcy court.
Red Lobster's Potential Buyer Has Fished In This Pond Before
When Red Lobster hit bankruptcy last week with plans for an asset sale, it brought with it a $275 million stalking horse bid from a private equity firm that is perfectly positioned to repeat a move it has made before: buying struggling restaurant chains out of insolvency and taking over operations.
Expert Analysis
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5th Circ. Bond Claim Ruling Shows Creditors Must Be Vigilant
In Raymond James & Associates v. Jalbert, the Fifth Circuit recently held that the bankruptcy debtor's indemnification obligations were discharged by the confirmed plan because the indemnified party failed to speak up, demonstrating that creditors must proactively protect their rights, says Joshua Lesser at Bradley Arant.
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Bankruptcy Courts Have Contempt Power, Del. Case Reminds
A Delaware bankruptcy court recently held Camshaft Capital and its principal in contempt, serving as a reminder to bankruptcy practitioners and anyone else that appears before a bankruptcy judge that there are serious consequences for failing to comply with court orders, say Daniel Lowenthal and Kimberly Black at Patterson Belknap.
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What Lies Behind Diverging US And UK Insolvency Trends
Contrasting U.K. and U.S. insolvency trends highlight the importance of policy interventions in shaping consumer financial outcomes and economic recovery, and while the U.K.'s approach seems to have mitigated issues, the U.S. faces challenges exacerbated by economic conditions and policy transitions, says Thomas Curran at Thomas H. Curran Associates.
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E-Discovery Quarterly: Recent Rulings On Text Message Data
Electronically stored information on cellphones, and in particular text messages, can present unique litigation challenges, and recent court decisions demonstrate that counsel must carefully balance what data should be preserved, collected, reviewed and produced, say attorneys at Sidley.
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How Banks Can Preserve Value Amid Corporate Default Surge
Amid a busy time for corporate bankruptcies, banks need a nuanced understanding of contractual rights, regulatory frameworks and evolving legal developments to protect and preserve their rights and interests, say attorneys at Phelps Dunbar.
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A Look At Subchapter V As Debt Limit Expiration Looms
If proposed legislation to extend Subchapter V’s debt eligibility ceiling sunset date in June is passed, bankruptcy professionals can seek ways to work with their local jurisdictions to advocate for code changes and guidance that bring more efficiencies and clarity to the process, say Matthew Brash at Newpoint Advisors and Melinda Bennett at Stretto.
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The Art Of Asking: Leveraging Your Contacts For Referrals
Though attorneys may hesitate to ask for referral recommendations to generate new business, research shows that people want to help others they know, like and trust, so consider who in your network you should approach and how to make the ask, says Rebecca Hnatowski at Edwards Advisory.
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Ch. 11 Case Shows Why Plan Acceptance Procedures Are Key
Sunland Medical's recent liquidation plan proposal is an important example of how top-notch judges and attorneys propose and analyze complex issues during the confirmation process, and the bankruptcy court was forward-thinking to consider the implications of such proposed treatment in the face of the Bankruptcy Code, says Kyle Arendsen at Squire Patton.
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Risks Of Rejecting Hotel Mgmt. Agreements Via Bankruptcy
In recent years, hotel owners have paid a high price when they attempted to use bankruptcy proceedings to prematurely terminate their hotel management agreements, highlighting that other options may be preferable, say attorneys at Jenner & Block.
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NC Rulings Show Bankruptcy Isn't Only For Insolvent Debtors
Two recent rulings from a North Carolina bankruptcy court show that lack of financial distress is not a requirement for bankruptcy protection, particularly in the Fourth Circuit, but these types of cases can still be dismissed for other reasons, say Stuart Gordon and Alexandria Vath at Rivkin Radler.
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Cannabis Ruling Lights Path For Bankruptcy Protection
A recent Massachusetts bankruptcy appellate court ruling in Blumsack v. Harrington leaves the door open for those employed in the cannabis industry to seek bankruptcy relief where certain conditions are met, but rescheduling marijuana as a Schedule III drug may complicate matters, say Jane Haviland and Kathryn Droumbakis at Mintz.
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What Bankruptcy Deadline Appeal May Mean For Claimants
If the Third Circuit reverses a recent appeal made in In re: Promise Healthcare, litigation claimants within the circuit will not be able to rely on the proof of claim process to preserve the claim — but if the court affirms, the U.S. Supreme Court may need to step in to resolve the circuit split on this issue, say attorneys at DLA Piper.
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Conn. Bankruptcy Ruling Furthers Limitation Extension Split
A recent Connecticut bankruptcy court decision further solidifies a split of authority on whether Bankruptcy Rule 9006(b) may be used to extend the limitations period, meaning practitioners seeking to extend should serve the motion on all applicable parties and, where possible, rely on the doctrine of equitable tolling, says Shane Ramsey at Nelson Mullins.