Mid Cap
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July 30, 2024
Ex-Ch. 11 Trustee Can't Retroactively File Legal Fees
A bankruptcy trustee who is removed can't retroactively receive administrative expenses, the Fourth Circuit has ruled, saying a former bankruptcy trustee is not allowed to later file an application for professional fees.
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July 30, 2024
NYC Condo Building Nears Peace Deal With Lenders In Ch. 11
Bankrupt New York City condominium complex Hudson 888 Owner told a bankruptcy judge Tuesday that it is days away from reaching a settlement for its Chapter 11 plan, which will see it hand over its real estate to its main lender to clear its debts.
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July 29, 2024
Amex Inks $3M Deal To Settle Girardi Bankruptcy Suit Claims
American Express reached a $3 million deal to settle claims brought by the Girardi Keese bankruptcy trustee accusing the credit giant's banking unit and another subsidiary of enabling $50.25 million in fraudulent transfers as part of the now-defunct law firm's scheme to defraud creditors.
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July 29, 2024
9th Circ. Rules Ch. 7 Debtor Can't Exempt Home From Estate
The Ninth Circuit ruled that a debtor in a Chapter 7 bankruptcy case in Washington state cannot pursue above-limit homestead exemption and that the remaining proceeds of her property should go to the bankruptcy estate, reversing the bankruptcy appellate panel's decision in 2022.
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July 29, 2024
J&J Ch. 11 Tossed, Steward Gets Subpoena, Zachry Settles
The Third Circuit threw out Johnson & Johnson's second attempt to use bankruptcy to deal with mass talc litigation, Red Lobster won court approval to solicit votes on its Chapter 11 plan, and a Senate committee voted to approve an investigation into bankrupt Steward Health Care and subpoena its chief executive officer. This is the week in bankruptcy.
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July 29, 2024
Irked Judge Says Late Filing 'Sandbagged' Conn. Firm
A Connecticut state court judge on Monday chided attorneys for an eleventh-hour filing and other missed deadlines on behalf of a couple lodging malpractice claims against Evans & Lewis LLC, blocking the wife from testifying to fight the firm's attempt to throw her husband out of the lawsuit.
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July 29, 2024
Machine Toolmaker Hardinge Files Ch. 11 With Plans To Sell
New York-based metal-cutting machine toolmaker Hardinge Inc. filed for Chapter 11 protection in Delaware bankruptcy court Monday with more than $100 million in debt and plans for a bankruptcy sale.
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July 26, 2024
Judge Requires 'Opt In' Releases For Red Lobster Ch. 11
A Florida bankruptcy judge said on Friday that she will conditionally approve disclosures for Red Lobster's reorganization plan after the seafood chain agreed to add "opt in" procedures that some creditors can use to release third parties from liability under its Chapter 11 plan.
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July 26, 2024
US Trustee Raises Jevic Concerns In Coach USA Ch. 11 Sale
The U.S. Trustee's Office on Friday objected to the bidding procedures proposed by bus line operator Coach USA, arguing that a requirement in the company's debtor-in-possession loan agreement to set aside $3.5 million to pay unsecured creditors may be improper because it flouts bankruptcy rules regarding creditor priority.
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July 26, 2024
Meet The Attorneys In Vintage Wine Estates' Ch. 11
A team of lawyers from Richards Layton & Finger PA and Jones Day is guiding Vintage Wine Estates, an owner of more than 30 wine brands, through its Chapter 11 case in Delaware.
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July 26, 2024
Apparel Biz Delta Can Auction Assets In August
A Delaware bankruptcy judge cleared the way Friday for clothing manufacturer Delta Apparel to put its assets on the auction block next month with a $28 million starting bid for one of its lifestyle and fashion brands, as the company continues to search for a stalking horse to bid on its remaining clothing lines.
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July 26, 2024
'Terrible Decisions': Ex-McElroy Deutsch CFO Gets 5 Years
McElroy Deutsch Mulvaney & Carpenter LLP's former chief financial officer was sentenced Friday in a New Jersey state court to five years in prison and ordered to pay restitution for embezzling more than $1.5 million from the firm and failing to pay income tax.
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July 26, 2024
New Bill Would Sink 'Texas Two-Step' Ch. 11s Over 'Bad Faith'
U.S. lawmakers are taking aim at a controversial bankruptcy tactic used by Johnson & Johnson and others designed to insulate corporations from mass tort liability, introducing a bipartisan bill that would order courts to label "Texas two-step" Chapter 11 cases "bad-faith filings."
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July 25, 2024
Girardi Can't Block Firm's Chapter 7 Evidence In Fraud Trial
Tom Girardi can't exclude evidence from his upcoming trial that he claims prosecutors illegally obtained from his firm's bankruptcy trustee, after a California federal judge said Thursday no constitutional rights were violated since the evidence was the bankruptcy estate's property and in the trustee's possession.
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July 25, 2024
Embattled Texas Law Firm Wants More Time For Ch. 11 Plan
Troubled Houston law firm MMA Law asked a Texas bankruptcy court to extend the exclusivity period to file a Chapter 11 plan for 120 more days, with a current filing exclusivity period set to end in early August.
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July 25, 2024
Judge Says Gateway Pundit Parent Filed Ch. 11 In Bad Faith
A Florida bankruptcy judge Thursday dismissed the Chapter 11 case of far-right media outlet The Gateway Pundit's parent company as a bad-faith attempt to shield its founder from liability in a defamation suit over articles alleging vote fraud in the 2020 presidential election.
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July 25, 2024
Pioneer Health Seeking More Ch. 11 Financing To Fund Sale
Orthopedic clinic operator Pioneer Health Systems LLC is hoping to cobble together additional debtor-in-possession financing to fund a Chapter 11 sale process, its attorney told a Delaware bankruptcy judge Thursday.
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July 25, 2024
'Textbook Failure' Enabled CFO's Theft From McElroy Deutsch
As the criminal case against McElroy Deutsch Mulvaney & Carpenter LLC's former chief financial officer reaches sentencing, fraud experts and legal leaders tell Law360 Pulse that his misconduct signals a lack of internal controls at the firm.
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July 25, 2024
Vintage Wine Estates Can Tap Into $60.5M DIP Financing
Bankrupt wine producer and processor Vintage Wine Estates received permission Thursday from a Delaware bankruptcy judge to begin borrowing under a $60.5 million debtor-in-possession financing package being provided by its prepetition lenders.
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July 24, 2024
Texas Bankruptcy Court Gets New Judge For Biggest Cases
A former Weil Gotshal & Manges partner has started work as the newest judge for the U.S. Bankruptcy Court for the Southern District of Texas at a critical time for the popular Chapter 11 venue, taking the place of former Judge David R. Jones whose ethics scandal last year rocked the court.
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July 24, 2024
Allievex To Liquidate In Chancery's Bankruptcy Alternative
A subsidiary of Rock Creek Advisors LLC created to administer the liquidation of Allievex Corp.'s assets to pay creditors notified Delaware's chancery court on Wednesday that the therapeutics company was insolvent and had signed over control of the assets.
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July 24, 2024
Ex-McElroy Deutsch Exec Says Ch. 11 Doesn't Pause Claims
A former McElroy Deutsch executive told a New Jersey state court that just because her husband — former McElroy Deutsch chief financial officer John Dunlea — has filed for bankruptcy does not mean she needs to pause her claims against the firm for discrimination and retaliation.
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July 24, 2024
Vintage Wine Estates Hits Ch. 11 With Intent To Sell Assets
Vintage Wine Estates, which owns 30 wine brands in California, Oregon and Washington, filed for Chapter 11 protection Wednesday with a plan to sell its assets after post-pandemic wine demand dropped.
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July 24, 2024
UK Bans 830 Directors For COVID Loan Abuse In 12 Months
Hundreds of company directors have been banned in the last year as a result of COVID loan abuse, the Insolvency Service said Wednesday, adding that it has recovered almost £3 million ($3.8 million) of taxpayers' money.
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July 23, 2024
Rudy Giuliani Says MyPillow CEO Covered His RNC Travel
Rudy Giuliani clarified Tuesday that his travel to and from the Republican National Convention was covered by MyPillow CEO Mike Lindell's conservative media outlet FrankSpeech, according to a filing in New York federal bankruptcy court.