Mid Cap
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March 18, 2025
Hub City Loses Subchapter V Status On Wage Claims Ruling
A small chain of home healthcare providers have lost their Subchapter V status in bankruptcy after a Texas judge ruled that they incorrectly excluded priority unsecured wage claims in their debt calculations to qualify for a special small business Chapter 11 filing.
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March 18, 2025
Gibson Dunn Adds Capital Markets Partner In New York
Gibson Dunn & Crutcher LLP has added a partner from Latham & Watkins LLP in New York, strengthening its capital markets practice group and expanding its expertise in high-yield debt, private credit and restructuring transactions.
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March 18, 2025
Career Kramer Levin Atty Moves To Pryor Cashman In NY
Pryor Cashman LLP's new bankruptcy lateral, Joseph A. Shifer, invoked the words of journalist H. L. Mencken when explaining in an interview on Tuesday why he'd stuck with working on creditors' rights issues for more than 17 years: to him, the practice is "the life of kings," he told Law360 Pulse.
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March 17, 2025
US Trustee Leader Ousted, Eletson's Ex-Owners Face Fines
The reported removal of the director of the U.S. Department of Justice's bankruptcy watchdog program has thrown the historically apolitical office into broader waves of upheaval, a bankruptcy judge has said he would impose a daily fine on the former owners of Eletson, and another bankruptcy judge detailed why he overruled objections in Spirit Airlines' Chapter 11 plan. This is the week in bankruptcy.
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March 17, 2025
Cannabis Vape Co. Blinc Files Ch. 7 Liquidation In NY
Cannabis vaping technology and service provider The Blinc Group Inc. filed for Chapter 7 in a New York bankruptcy court, citing at least $1 million in liabilities.
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March 17, 2025
Bench Accounting Gets Ch. 15 Recognition Of Canada Reorg
A Delaware bankruptcy judge on Monday said she would recognize the Canadian insolvency proceedings of accounting and financial services firm Bench Accounting Inc. as it moves to restructure over $50 million in debt through asset sales
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March 17, 2025
Meet The Attys Handling Calif. Hotel Operator's Ch. 11
MOM CA Investco LLC, the owner and operator of a hotel in Southern California, has put together a team of lawyers from Potter Anderson & Corroon LLP and Buchalter PC to help it sell its properties and recapitalize through Chapter 11.
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March 17, 2025
Austrian Biotech BIA Hits Ch. 15, Says Exec Stole $22M
Austrian biotechnology firm BIA has filed for Chapter 15 protection in Delaware to recover assets in the U.S., alleging an executive fraudulently transferred roughly $22 million in company funds and left it insolvent.
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March 17, 2025
Brightmark Puts Indiana Plastic Recycling Plant Into Ch. 11
Recycling company Brightmark LLC has put certain units into bankruptcy in Delaware in order to keep its Indiana plastics processing center operational as it pursues a sale.
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March 17, 2025
'Matrix' Film Producer Files Ch. 11 After Warner Bros. Row
Film production company Village Roadshow filed Chapter 11 in Delaware on Monday, listing about $390 million of debt and blaming a fight with production partner Warner Bros. over the release of a 2021 sequel to "The Matrix" for its financial problems.
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March 14, 2025
Texas Judge Rejects Ex-GloriFi CEO's Bid To Stop Claims Sale
A Texas federal judge shot down an alleged attempt by the former CEO of bankrupt conservative-centered fintech startup GloriFi to preserve the ability to sue investors like Ken Griffin's Citadel LLC and Vivek Ramaswamy, saying Friday the bankruptcy judge got it right.
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March 14, 2025
CarePoint Wraps Multiday Ch. 11 Hearing Over NJ Hospitals
A New Jersey hospital operator finished a three-day confirmation hearing in Delaware on Friday over its Chapter 11 plan to hand control of its medical facilities to one of its creditors.
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March 14, 2025
US Trustee Pans Pump Co.'s $9M Asbestos Insurance Deal
The U.S. Trustee's Office has challenged a proposed $9 million settlement between a Chapter 7 trustee for a bankrupt Connecticut pump company and two insurers, saying the agreement nonconsensually deprives third parties of their asbestos-related personal injury claims against the insurance carriers.
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March 14, 2025
Prime Core Seeks $26.6M Clawback From Crypto Finance Firm
The litigation trust for Prime Core Technologies is seeking to claw back $26.6 million in cryptocurrency transferred out of the crypto custodian's accounts prior to its Chapter 11 filing, saying it's a matter of fairness to Prime Core's other customers.
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March 14, 2025
Under The Radar: Bankruptcy News You May Have Missed
Avon's international unit asked a bankruptcy judge to extend the window during which only it can propose a Chapter 11 plan, consulting firm Azzur Group Holdings asked the Delaware bankruptcy court to approve its Chapter 11 plan disclosures and allow it to hold a vote, and Philadelphia's University of the Arts proposed selling a property for nearly $7 million. These are some of the bankruptcy stories you may have missed in the last week.
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March 14, 2025
Canadian Accounting Service Co. Hits Ch. 15 With Sale Plan
Vancouver-based accounting and financial services firm Bench Accounting Inc. has filed a Chapter 15 recognition in a Delaware bankruptcy court with approximately $51.5 million in liabilities and $5.1 million in assets, asking a U.S. bankruptcy court to approve a plan to sell all its assets.
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March 14, 2025
Startup Investor Says Cooley Knew About Fraud Probe
Attorneys for a dry cleaning delivery startup knew that the founder and sole director of the company had fabricated company documents and was the subject of an active securities fraud investigation in Texas as he solicited money from investors, an ex-board member said Friday in response to the law firm's bid to toss a securities fraud lawsuit.
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March 14, 2025
Calif. Hotel Operator Gets Initial OK To Use Cash In Ch. 11
The owner and operator of a hotel in Southern California received a Delaware bankruptcy court's permission Friday to continue using cash to support its operations as the company works to sell its properties and recapitalize through Chapter 11.
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March 14, 2025
Drink Packager Approved For $10.3M Ch. 7 Asset Sale
Drink packaging company Joriki USA Inc. received the green light on Friday in Delaware bankruptcy court for a sale of its assets at a $10.3 million purchase price.
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March 13, 2025
Meet The Attorneys Guiding Dynamic Aerostructures' Ch. 11
Lawyers from Chipman Brown Cicero & Cole LLP and Ropes & Gray LLP are leading the bankruptcy case launched by Dynamic Aerostructures, a California-based aerospace parts supplier to Lockheed Martin and Boeing, as the company pursues a sale of its assets.
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March 13, 2025
Bankruptcy Watchdog Ouster Crosses Into Uncharted Waters
The recent removal of the head of the U.S. Trustee's Office may be sending the previously nonpolitical bankruptcy watchdog into unknown territory, causing concerns in the legal space.
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March 13, 2025
Sandy Hook Families Oppose Revived Infowars Sale Bid
Families of the victims of the 2012 Sandy Hook Elementary School shooting have urged a Texas bankruptcy judge to block an Alex Jones-affiliated company's revived bid to buy his Infowars platform, saying it will cause delays in the more than three-year-old related bankruptcy cases.
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March 13, 2025
Senate Stablecoin Bill Advances With Democrats Divided
The Republican-led U.S. Senate Banking Committee advanced its stablecoin framework Thursday with the help of Democrats who broke from ranking member Sen. Elizabeth Warren's opposition, while a separate bill on what is being called debanking passed along party lines.
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March 13, 2025
Dormify Gets OK To Tap DIP Funds As It Works Toward Sale
A Delaware bankruptcy judge on Thursday said he would allow Dormify Inc. to borrow up to $265,000 in Chapter 11 financing as the dorm-room decorating retailer works to secure an agreement to sell its business.
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March 13, 2025
Alex Jones' Sandy Hook Atty Suspended Over Info Release
Former Alex Jones attorney Norm Pattis will be suspended from practicing law for two weeks, a Connecticut judge has ruled, capping a three-year ethics saga that started when Pattis asked an associate to send Sandy Hook families' medical records to the Infowars host's Texas bankruptcy lawyer.
Expert Analysis
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When Investigating An Adversary, Be Wary Of Forged Records
Warnings against the use of investigators who tout their ability to find an adversary’s private documents generally emphasize the risk of illegal activity and attorney discipline, but a string of recent cases shows an additional danger — investigators might be fabricating records altogether, says Brian Asher at Asher Research.
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3 Ways To Train Junior Lawyers In 30 Minutes Or Less
Today’s junior lawyers are experiencing a skills gap due to pandemic-era disruptions, but firms can help bring them up to speed by offering high-impact skill building content in bite-sized, interactive training sessions, say Stacey Schwartz at Katten, Diane Costigan at Winston & Strawn and Lauren Tierney at Freshfields.
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The Bar Needs More Clarity On The Discovery Objection Rule
Almost 10 years after Federal Rule of Civil Procedure 34 was amended, attorneys still seem confused about what they should include in objections to discovery requests, and until the rules committee provides additional clarity, practitioners must beware the steep costs of noncompliance, says Tristan Ellis at Shanies Law Office.
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So You Want To Move Your Law Practice To Canada, Eh?
Google searches for how to move to Canada have surged in the wake of the U.S. presidential election, and if you’re an attorney considering a move to the Great White North, you’ll need to understand how the practice of law differs across the border, says David Postel at Henein Hutchison.
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A Strategic Checklist For Bankruptcy Motion Objections
Excerpt from Practical Guidance
Hewing to a set of best practices for objecting to a motion in bankruptcy cases can help creditors’ counsel stay on track as they juggle deadlines and jurisdictions, determine whether filing will help or harm the client, and negotiate with the debtor.
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The 3rd-Party Bankruptcy Release Landscape After Purdue
In its Purdue Pharma ruling prohibiting nonconsensual third-party releases, the U.S. Supreme Court did not comment on criteria to render a third-party release consensual, opening a debate in the bankruptcy courts on the permissibility of opt-out versus opt-in releases, say attorneys at Morgan Lewis.
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Striking A Balance Between AI Use And Attorney Well-Being
As the legal industry increasingly adopts generative artificial intelligence tools to boost efficiency, leaders must note the hidden costs of increased productivity, and work to protect attorneys’ well-being while unlocking AI’s full potential, says Ed Sohn at Factor.
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Being An Artist Makes Me A Better Lawyer
My work as an artist has highlighted how using creativity and precision together — qualities that are equally essential in both art and law — not only improves outcomes, but also leads to more innovative and thoughtful work, says Sarah La Pearl at Segal McCambridge.
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Bankruptcy Decision Exemplifies Venue Issue For Franchisees
A California bankruptcy court's decision earlier this month in Pinnacle Foods and a lingering circuit split on assumption of executory franchise contracts highlights the issue of whether franchisee debtors can qualify for case venue in friendlier circuits, says David Gamble at Parkins Rubio.
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Lawyers With Disabilities Are Seeking Equity, Not Pity
Attorneys living with disabilities face extra challenges — including the need for special accommodations, the fear of stigmatization and the risk of being tokenized — but if given equitable opportunities, they can still rise to the top of their field, says Kate Reder Sheikh, a former attorney and legal recruiter at Major Lindsey & Africa.
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Judicial Committee Best Venue For Litigation Funding Rules
The Advisory Committee on Civil Rules' recent decision to consider developing a rule for litigation funding disclosure is a welcome development, ensuring that the result will be the product of a thorough, inclusive and deliberative process that appropriately balances all interests, says Stewart Ackerly at Statera Capital.
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The Strategic Advantages Of Appointing A Law Firm CEO
The impact on law firms of the recent CrowdStrike outage underscores that the business of law is no longer merely about providing supplemental support for legal practice — and helps explain why some law firms are appointing dedicated, full-time CEOs to navigate the challenges of the modern legal landscape, says Jennifer Johnson at Calibrate Strategies.
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What Being An 'Insider' Means In Ch. 11, And Why It Matters
As borrowers grapple with approaching near-term maturities on corporate debt, lenders should be proactive in mitigating the risks of being classified as an insider in potential bankruptcies, including heightened scrutiny, preference risk, plan voting and more, say David Hillman and Steve Ma at Proskauer.