Mid Cap
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September 04, 2024
Produce Co. With Bankrupt Parent Settles $1M Payment Suit
A Michigan federal judge has dismissed a $1.3 million payment dispute between Canadian produce distributors and the U.S. arm of a vegetable wholesaler, after the parties reached a deal to resolve the litigation.
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September 04, 2024
LL Flooring, Buyer In Talks To Skirt Ch. 11 Liquidation
Home improvement retailer LL Flooring has until end of day Thursday to finalize negotiations with a possible going-concern buyer, or it will pivot to a Chapter 11 liquidation of its hundreds of stores across the country, attorneys told a Delaware bankruptcy judge Wednesday.
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September 04, 2024
Former Michelin Tire Factory Site Worth $30M, NJ Jurors Told
The owner of a 22-acre former Michelin Tire factory in Milltown, New Jersey, told jurors Wednesday it should be paid at least $30 million by a borough redevelopment agency to acquire the property through eminent domain for the construction of a 350-unit mixed-use residential development.
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September 04, 2024
US Trustee Challenges AI Video Co. StoryFile's Sale Plans
The U.S. Trustee's Office has asked a New York bankruptcy judge to reject artificial intelligence video startup StoryFile's motion for approval of bidding procedures governing a likely sale of virtually all its assets to a debtor-in-possession lender, arguing that the proposed sale would effectively bypass making payments to secured and priority creditors.
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September 04, 2024
McElroy Deutsch's Former CFO Fights Bid To Sink Ch. 11 Case
The currently incarcerated former chief financial officer for McElroy Deutsch Mulvaney & Carpenter LLP denied that his Chapter 11 filing was a bad faith maneuver meant to stall ongoing civil litigation, claiming instead that the bankruptcy will allow for the liquidation of property for the benefit of creditors.
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September 04, 2024
Linklaters Gains NY Restructuring Pro From Simpson Thacher
An attorney with more than 25 years of transactional experience has left Simpson Thacher & Bartlett LLP this week to join Linklaters' New York office as head of the firm's U.S. capital solutions practice.
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September 04, 2024
Immunity Can't Shield Ex-Judge In Romance Suit, Court Told
The former head of a now-shuttered barge company is asking a Texas federal judge to keep alive his claims against a former bankruptcy judge over his undisclosed romantic relationship with an attorney on the company's Chapter 11 case, saying the onetime jurist isn't entitled to immunity for "decidedly non-judicial acts."
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September 04, 2024
Former Judge Faces Risks With Looming Atty Romance Depo
Former Texas bankruptcy judge David R. Jones faces some serious risks in an upcoming deposition that was recently given the green light, especially since the U.S. Department of Justice is reportedly conducting a criminal investigation of his undisclosed relationship with a former Jackson Walker LLP partner who appeared before him, according to attorneys.
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September 03, 2024
Steward Gets Hospital Deal; Pause Urged For Judge Shop Ban
Steward Health Care reached a tentative deal to keep most of its hospitals operating, Jackson Walker LLP and the U.S. Trustee's Office traded blows at a hearing over deposition disputes, and a group of asbestos claimants urged the Fourth Circuit to toss Bestwall's bankruptcy, alleging the Georgia-Pacific unit isn't actually facing financial distress.
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September 03, 2024
IRS Should Be Bound By $2M Bankruptcy Deal, Justices Told
An Alabama real estate developer who sought bankruptcy protection and agreed to settle his tax debts for $2 million asked the U.S. Supreme Court to review a decision allowing the IRS to demand additional taxes from him, saying the agency shouldn't be allowed to back out of the deal.
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September 03, 2024
Ch. 11 Bankruptcy Trustee Says Firm Charged Excessive Fees
The Chapter 11 trustee overseeing collapsed debt relief law firm Litigation Practice Group has accused a New York law firm of charging excessive fees while defending the California firm from lawsuits from merchant cash advance companies.
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September 03, 2024
Former Partner Of Bankrupt NC Firm Settles With Trustee
A former member of bankrupt North Carolina-based real estate law firm Washburn Law PLLC, which is being investigated by the FBI for millions of dollars in pilfered client money, has reached a settlement agreement with a court-appointed bankruptcy trustee.
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September 03, 2024
NY REIT Heads Toward Noteholder Mediation For Ch. 11 Plan
Attorneys for real estate investment trust JER Investors Trust Inc., told a Delaware bankruptcy judge Tuesday that it plans to mediate with noteholders who objected to its Chapter 11 plan based on a $15 million settlement signed less than a week before JERIT filed for bankruptcy.
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August 30, 2024
Meet The Attys In Pregnancy Tech Co. Nuvo's Ch. 11 Case
Remote pregnancy monitoring band maker Nuvo Group USA Inc., which entered bankruptcy after a merger and failed fundraising left it cash strapped, has assembled a team of lawyers from Morris Nichols Arsht & Tunnell LLP and Hughes Hubbard & Reed LLP to guide it through Chapter 11.
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August 30, 2024
Bitcoin Miner Rhodium Gets Interim OK For $30M Ch. 11 Loan
A Texas bankruptcy judge on Friday gave interim approval for bitcoin miner Rhodium to access $15 million of a $30 million debtor-in-possession financing package from blockchain company Galaxy Digital.
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August 30, 2024
Republic Bank Tells IP Lawsuit Judge It's Bankrupt
An embattled Pennsylvania-based bank has sought bankruptcy protection following its high-profile seizure by federal authorities as it grappled with $1.3 billion in debt, according to its latest filing in a trade secrets misappropriation suit.
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August 30, 2024
Water Vending Machine Co. Pushed Into Ch. 11 In Texas
Creditors of the Washington state water vending machine company Water Station Management LLC have filed an involuntary Chapter 11 petition in Texas bankruptcy court, citing at least $7.4 million in debt, as the company also faces a suit alleging it bilked investors out of more than $100 million through a Ponzi scheme.
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August 30, 2024
Giuliani Pretends To Live In Fla. To Shield Condo, Suit Says
The Georgia election workers who secured a $148 million judgment against former New York Mayor Rudy Giuliani in D.C. federal court hit him with a new lawsuit Friday, saying he is "pretending" to live in Florida in "a brazen attempt to shield his luxury Palm Beach condo" from them.
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August 29, 2024
'You Don't Need To Be Obnoxious': Ch. 11 Hearing Gets Rowdy
A California bankruptcy judge on Thursday slammed an attorney for what he called her "obnoxious" courtroom behavior, while the lawyer argued that a proposed liquidation plan for a defunct law firm could enrich the professionals managing the case and leave little for claimants.
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August 29, 2024
Judiciary Group Urged To Table 'Mega' Bankruptcy Panel Ban
A subcommittee urged the Judicial Conference's bankruptcy rule advisory committee to hold off on considering a ban on so-called mega bankruptcy panels at an upcoming meeting, saying a different committee's work overlaps with a rule proposed to curb the controversial practice.
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August 29, 2024
50 Cent's Liquor Biz Wins Ch. 7 Fight Over Ex-Boss's House
A onetime international liquor trader for rap artist 50 Cent's booze business has lost a bid to protect his Connecticut residence from Sire Spirits LLC's attempt to recover a $7 million New York fraud judgment, with a bankruptcy judge applying a lower state homestead exemption than the indebted trader requested.
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August 29, 2024
Vintage Wine Estates Gets OK For Starting Bid On Winery
A Delaware bankruptcy judge Thursday approved over $12 million in baseline bids for one of Vintage Wine Estates wineries and three of its brands, the day after being told the bankrupt wine company has offers for another seven of its wineries.
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August 29, 2024
US Trustee Objects To Red Lobster's Ch. 11 Plan Over Fees
The U.S. trustee has filed an objection to the Chapter 11 plan of seafood restaurant chain Red Lobster, saying it cannot be confirmed because it proposes that postconfirmation entities be exempt from payment of U.S. trustee fees.
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August 29, 2024
The Story Behind Pregnancy Tech Co. Nuvo's Ch. 11 Case
Nuvo Group USA Inc., the distributor of a remote pregnancy monitoring band, was brought low when a merger between its parent and a special purpose acquisition company was followed by a substantial share redemption and additional funding was not forthcoming.
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August 29, 2024
3 Companies That Could Restructure In The 2nd Half Of 2024
With elevated borrowing rates and other macroeconomic headwinds lingering, struggling companies could end up resorting to drastic measures to deal with big debt burdens in the second half of 2024, including refinancings, liability management transactions or even bankruptcy.
Expert Analysis
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Air Ambulance Ch. 11s Show Dispute Program Must Resume
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.
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Pro Bono Work Is Powerful Self-Help For Attorneys
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.
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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.