Mid Cap
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January 23, 2025
US Trustee Objects To Blink Fitness Ch. 11 Plan Exculpations
The U.S. Trustee's Office has urged a Delaware bankruptcy judge not to confirm Blink Fitness' Chapter 11 plan, arguing it is unfairly seeking to exculpate professionals for future acts and extend an injunction to third-party releases.
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January 23, 2025
CarePoint's Ch. 11 Docs OKd, But Confirmation Fight Looms
Bankrupt hospital owner CarePoint Health Systems Inc. received approval of its Chapter 11 plan disclosure statement Thursday after a Delaware bankruptcy judge heard about a string of modifications that resolved objections, but some issues still remain ahead of a March confirmation hearing.
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January 23, 2025
NY Judge Scolds Firm Amid Rise In Real Estate Ch. 11s
A New York judge stripped a local Long Island law firm of nearly all its retainer and the legal fees it had submitted for pursuing what he described as a meritless Chapter 11 case, putting attorneys on notice that they should think twice before contributing to the flood of landlords filing for bankruptcy in an effort to escape foreclosure in his district.
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January 23, 2025
GenapSys Says Paul Hastings Can't Keep Privileged Docs
GenapSys is pushing back on Paul Hastings LLP's bid to force it to turn over documents that it had inadvertently released during discovery in a legal malpractice suit alleging that the law firm improperly drafted board documents that led to the "demise and liquidation" of the genetic-sequencing company.
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January 23, 2025
Resort Developer Can Tap Full $11M City-Funded DIP In Ch. 11
A stalled developer received a Delaware bankruptcy judge's final seal of approval Thursday to use an $11 million loan funded by the California city where it planned to build a resort as it prepares to sell its assets in Chapter 11.
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January 23, 2025
White And Williams' NY Office Head Named Bankruptcy Chair
The managing partner of White and Williams LLP's New York office has taken on the role of chair of the firm's financial restructuring and bankruptcy practice, where she plans to focus on improving the practice group's visibility while ensuring high quality of client service and helping its attorneys to excel.
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January 22, 2025
Reed Smith Rips Claim Firm Is 'Causing Chaos' In $102M Suit
Reed Smith fought back Tuesday against allegations by the purported new owners of Eletson Holdings that the BigLaw firm is "causing chaos" by refusing to withdraw as counsel of record in $102 million breach-of-contract litigation, arguing that ownership of the international shipping group is "hotly contested" and being litigated in multiple jurisdictions.
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January 22, 2025
Creditors Want To Help Market Nostrum After Atty Turnover
The official committee of unsecured creditors in drugmaker Nostrum Laboratories Inc.'s Chapter 11 case has asked a New Jersey bankruptcy judge for additional authority to help investment bank Raymond James find a buyer for the debtor's assets.
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January 22, 2025
Meet The Attys In Plastic Suppliers' Ch. 11
Attorneys from Archer & Greiner PC are assisting Plastic Suppliers, a maker of compostable films and other plastic packaging, navigate its Chapter 11 case, while Porzio Bromberg & Newman PC is representing the official committee of unsecured creditors.
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January 22, 2025
Alex Jones Asks Conn. Justices To Review Sandy Hook Case
Infowars host Alex Jones has asked Connecticut's highest court to review a $1.44 billion judgment for calling the Sandy Hook school massacre a "hoax," arguing his trial judge violated the state and federal constitutions by skipping causation, jumping straight to a default liability judgment and adding damages without proof.
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January 22, 2025
Catching Up With New Bankruptcy Case Action
Crafts retailer Joann Inc. has filed for Chapter 11 protection for a second time in less than a year, and plans to either sell its assets or liquidate the business. Mondee, an AI-supported travel agency app maker, has hit bankruptcy court with $49 million in financing provided by existing lenders. A New Zealand-based developer of AI-powered actuarial software, Montoux, is seeking Chapter 15 bankruptcy recognition in Delaware, attributing its financial strain to ongoing trade secrets litigation against the company.
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January 22, 2025
Neumann's Flow Life Buys Miami Site For $70.5M In Court Sale
WeWork founder Adam Neumann's latest venture, a real estate company called Flow Life, bought a 16-acre Miami development site in a court-ordered sale for $70.5 million, or double an initial stalking horse bid for the property in October.
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January 22, 2025
Lender Files Ch. 7 For Pa.-Based ATM Network Owner
Silverview Credit Partners LP has filed an involuntary Chapter 7 petition in Delaware bankruptcy court against Blackford ATM Ventures, a Pennsylvania-based operator of a network of ATMs, claiming the company owes $28.6 million for defaulted loans.
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January 21, 2025
LED Screen Distributor Lied About $10M Debt, Jury Told
The owner of a now-defunct LED screen distribution company lied to his Korean manufacturing partner about repaying an over $10 million debt in order to keep receiving shipments and pay himself a hefty salary, jurors heard as a civil fraud trial opened in California federal court on Tuesday.
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January 21, 2025
Ch. 11 Judge Slams Firm's 'Extraordinary' Lack Of Knowledge
A New York bankruptcy judge has refused a fee bid and ordered a debtor's firm to return a nearly $30,000 retainer in a scathing opinion that warns lawyers against tiptoeing into bankruptcy practice and slams counsel for having an "extraordinary lack of basic Chapter 11 understanding."
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January 21, 2025
Receiver Sought For Partnership That Funded Affleck Films
Film producer John P. Middleton has asked Delaware's Court of Chancery to appoint a receiver for The Film Capitol LLC, a partnership he formed in 2013 to provide funding for a production project with actor Casey Affleck.
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January 21, 2025
Meet The Attys For Diamond Comic's Ch. 11
A team of attorneys from Saul Ewing LLP is guiding comics distributor Diamond Comic Distributors Inc. through its Chapter 11 process in Maryland bankruptcy court.
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January 21, 2025
4th Circ. Backs NASCAR Team Owner's $31M Ch. 11 Sanction
The Fourth Circuit has backed a $31 million default judgment entered against a former NASCAR team manager as a sanction after what the published opinion called "egregious behavior" during discovery and "willful disregard of the bankruptcy code and the orders of the bankruptcy court."
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January 21, 2025
Giuliani Settles Asset Turnover, FDIC Sues SVB Ex-CEO
Rudy Giuliani has turned over assets for a $148 million defamation judgment to former Georgia poll workers, following his absence at a recent trial. A Delaware bankruptcy judge criticized Dormify's founder for skipping a hearing on the retailer's Chapter 11 case. The FDIC sued Silicon Valley Bank's ex-CEO and other executives, alleging they mismanaged the company in the lead-up to its collapse in 2023. Meanwhile, a failed bidder for Alex Jones' Infowars increased its offer, as The Onion's parent company prepared a revised bid of its own.
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January 21, 2025
Stradley Ronon Grows Bankruptcy Group With Philly Partner
The co-chair of White and Williams' bankruptcy practice group has joined Stradley Ronon Steven & Young LLP in Philadelphia, the firm announced Tuesday.
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January 17, 2025
Law360 Names Practice Groups Of The Year
Law360 would like to congratulate the winners of its Practice Groups of the Year awards for 2024, which honor the attorney teams behind litigation wins and significant transaction work that resonated throughout the legal industry this past year.
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January 17, 2025
Office Building PE Fund Fights To Confirm Chapter 11 Plan
The Aztec Fund Holding Inc., a bankrupt private equity group that invests in office buildings, defended its Chapter 11 plan during a Friday confirmation hearing in Texas against a lender that called it unrealistically optimistic as it seeks to foreclose three properties.
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January 17, 2025
NJ Hospital System's Ch. 11 Docs Need Work, Judge Says
A Delaware bankruptcy judge told a New Jersey-based hospital system Friday that its Chapter 11 plan disclosures lacked the necessary information for creditors to make an informed decision about the plan and encouraged the debtor to continue discussion to resolve outstanding objections.
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January 17, 2025
Under The Radar: Bankruptcy News You May Have Missed
Drugmaker Nostrum sought for more time to file a Chapter 11 plan, Swedish debt collection agency Intrum asked a Texas bankruptcy court to enforce its plan that a group of noteholders are opposing, and former employees of a bankrupt drink packager alleged they were unlawfully laid off without any advance warning.
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January 17, 2025
Judge Scolds Dormify For Founder Not Appearing In Court
A Delaware bankruptcy judge sharply criticized Dormify Inc. after its founder didn't appear at a hearing Friday, ordering a hearing on whether to dismiss the dorm-room decorating retailer's Chapter 11 case or convert it to a Chapter 7 liquidation.
Expert Analysis
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Why 7th Circ. Libel Ruling Is Crucial For The Media
As more defamation plaintiffs attorneys argue that allowing a published statement to remain online after additional evidence of falsity emerges equates to actual malice, the Seventh Circuit's recent National Police Association v. Gannett opinion should be lauded by the media and online publishers as a favorable decision, say attorneys at Vedder Price.
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Tips For Litigating Against Pro Se Parties In Complex Disputes
Litigating against self-represented parties in complex cases can pose unique challenges for attorneys, but for the most part, it requires the same skills that are useful in other cases — from documenting everything to understanding one’s ethical duties, says Bryan Ketroser at Alto Litigation.
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3 Cases Show Tensions Between Arbitration And Insolvency
The intersection of international arbitration and insolvency may influence the formulation of litigation strategy on a global scale, and several recent cases illustrate the need for counsel to understand how courts are varying in their approaches, say attorneys at Skadden.
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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.