Mid Cap

  • June 27, 2024

    Justices Nix 3rd-Party Liability Releases In Purdue Ch. 11 Plan

    The U.S. Supreme Court shot down the validity of nonconsensual third-party releases in an opinion issued Thursday in the case of bankrupt drugmaker Purdue Pharma LP, potentially exposing the Sackler family members who own the company to personal liability for the company's role in the opioid crisis.

  • June 26, 2024

    Eiger Gets OK On Ch. 11 Drug Sale After Tripling Initial Bid

    A Texas bankruptcy judge on Wednesday approved Eiger BioPharmaceuticals' $35.1 million sale of its Avexitide product, after the drug company more than tripled an initial bid for the metabolic-disease treatment during a recent auction.

  • June 26, 2024

    Commitment Issues Raise Questions On Biotech's DIP Loan

    Synthetic biologics maker Solar Biotech Inc.'s proposed Chapter 11 loan hit a roadblock Wednesday when a Delaware bankruptcy judge balked at approving the financing package without a firm commitment from the lender, who is also serving as a stalking horse bidder for the debtor's assets.

  • June 26, 2024

    Cleaning Products Co. Supply Source Cancels Ch. 11 Auction

    Cleaning products company Supply Source Enterprises Inc. told the Delaware bankruptcy court it wouldn't go through with a planned auction of all its assets because only its stalking horse bidder made a satisfactory offer.

  • June 26, 2024

    Small Biz Ch. 11s Soared Before Sub V Liability Limit Lapsed

    U.S. bankruptcies under Subchapter V of Chapter 11 surged to a single-day record last week, as small businesses including packaged waffle maker Julian's Recipe rushed to file before the expiration of a key provision that would have made some of them ineligible.

  • June 26, 2024

    Sleep Tech Co. ProSomnus Can Seek Votes For Ch. 11 Plan

    ProSomnus, a developer of devices aimed at preventing sleep apnea, can solicit its creditors' votes on the company's Chapter 11 plan after it made revisions responding to objections raised by the U.S. Trustee's Office, a Delaware bankruptcy judge said Wednesday.

  • June 26, 2024

    Tech Co. GigaMonster Seeks Vote For Ch. 11 Wind-Down Plan

    Defunct internet service provider GigaMonster asked for the Delaware bankruptcy court's sign-off to send its Chapter 11 liquidation and wind-down plan out for a vote by creditors, following a settlement in which the company's unsecured creditors agreed to drop a lawsuit against its controlling investors.

  • June 26, 2024

    Pricey Chapter 11 Process Fuels Rise In Prepack Filings

    Companies that go bankrupt are increasingly opting to first negotiate restructuring deals out of court so they can enter Chapter 11 toting a turnaround plan already accepted by creditors, saving potentially hundreds of thousands of dollars in legal costs and dodging some of the stigma that bankruptcy attracts.

  • June 26, 2024

    Calif. Atty Won't Contest Claim He Stole Up To $282M

    A California lawyer has stopped defending himself against bar discipline charges that accuse him of stealing as much as $282 million from clients, and his posture has forced the cancelation of a trial that was scheduled for this week and makes his disbarment almost certain.

  • June 26, 2024

    Pharma Co. PhaseBio Can Exit Ch. 11 With Wind-Down Plan

    A Delaware bankruptcy judge on Wednesday gave her blessing for pharmaceutical developer PhaseBio Pharmaceuticals Inc. to liquidate its assets and wind down after settlement agreements with creditors and a business partner cleared a path for it to exit Chapter 11 after roughly 19 months.

  • June 26, 2024

    Ex-BHS Director Ordered To Pay £50M Over Firm's Collapse

    A London judge has ordered a former director of the now-defunct British Home Stores to pay £50 million ($63.2 million) in damages after concluding he had committed trading misfeasance and wrongful trading during the company's high-profile downfall.

  • June 26, 2024

    Mountain Sports Asks Ch. 11 Court For OK On Inventory Sale

    Outdoor clothing and sporting goods business Mountain Sports LLC asked a Delaware bankruptcy judge to approve inventory sales by two retail chains the company owns as part of its Chapter 11 case.

  • June 25, 2024

    2 Federal Judges Stall Biden's Student Loan Debt Relief

    Federal judges in Kansas and Missouri on Monday partially blocked the Biden administration from implementing its latest student debt relief program, with both finding that Congress did not give clear authorization through the Higher Education Act for the loan forgiveness plan, as argued by the federal government.

  • June 25, 2024

    Cigna Objects To Ch. 11 Sale Of Western Pa. Nursing Homes

    Cigna Health and Life Insurance Co. filed an objection in Pennsylvania bankruptcy court to the proposed sale of a group of Pittsburgh-area nursing homes, seeking assurances that it will be warned if the nursing homes intend to leave behind their contracts with Cigna as part of the sale.

  • June 25, 2024

    Texas Appeals Court Reverses Dallas Transit Contractor's Win

    A Texas appeals court has revived a subcontractor's lawsuit against a company that oversees the Dallas Area Rapid Transit Authority's services for people with disabilities, saying this week the subcontractor's allegations were strong enough to withstand a motion to dismiss.

  • June 25, 2024

    Chancery Tentatively OKs $15.5M Lordstown SPAC Suit Deal

    A $15.5 million class settlement for a stockholder suit that challenged the special-purpose acquisition company deal that took Lordstown Motors Inc. public won tentative Delaware Court of Chancery approval Tuesday, conditioned on confirmation of one expense claim.

  • June 25, 2024

    The Future Of AI May Lead Straight To Bankruptcy Court

    As interest in artificial intelligence mounts, so do the number of bankruptcies for AI-linked companies, a trend that may be the "tip of the iceberg" as familiar tech-bubble hype yields to the need to turn a profit, experts told Law360.

  • June 25, 2024

    Bankruptcy Vet Joins Saxton & Stump As Practice Chair

    Saxton & Stump LLC announced Tuesday that an attorney with over 35 years of experience working with banks and other corporate entities has become a shareholder and chair of the firm's bankruptcy and financial restructuring group.

  • June 25, 2024

    AI Video Startup StoryFile Gets OK For Ch. 11 Loan

    Artificial intelligence video company StoryFile on Tuesday got final approval from a New York bankruptcy judge to take out a $900,000 loan to fund its bankruptcy case.

  • June 24, 2024

    Ch. 11 Fee Cases Remanded After 'Very Practical' Decision

    Now that the U.S. Supreme Court has decided refunds aren't owed to debtors who overpaid the U.S. Trustee's Office under a previous fee structure, it sent three similar cases that were pending before it back to the lower courts to give them a crack at applying the ruling.

  • June 24, 2024

    Justices End Irish Landowner's Fight Against $23M Clawback

    The U.S. Supreme Court on Monday declined to hear a challenge by Irish businessman Sean Dunne and his ex-wife Gayle Killilea to a Chapter 7 trustee's roughly $23 million avoidance action win, leaving intact a Connecticut jury verdict and a Second Circuit rejection of the onetime couple's claims.

  • June 24, 2024

    Giuliani Trustee Sought, Eletson Has 3 Plans Up For Vote

    Rudy Giuliani's creditors urged a bankruptcy court to appoint a trustee to oversee his finances, while the creditors of shipping company Eletson Holdings will be asked to choose between three competing Chapter 11 plans, and nearly all of biotechnology firm NanoString's creditors will be paid in full.

  • June 24, 2024

    Alex Jones Trustee Asks To Halt Actions Against Media Co.

    The trustee in Alex Jones' Chapter 7 liquidation urged a Texas bankruptcy court to broaden that case's litigation freeze to cover the company that runs Jones' online show, arguing that doing so would help him conduct a smoother wind-down of the right-wing media personality's estate by protecting its assets.

  • June 24, 2024

    Texas Trucking Co. Files Ch. 7 With Over $100M In Debt

    Transportation company U.S. Logistics Solutions Inc. entered Chapter 7 in a Texas bankruptcy court, dragging over $100 million in liabilities it will seek to address through liquidation.

  • June 24, 2024

    Biotech Co. Hits Ch. 11 With Plans For Sale And 'Reboot'

    Virginia-based synthetic biology products maker Solar Biotech Inc. filed for Chapter 11 bankruptcy in Delaware with plans to sell its assets, saying a difficult capital market, the loss of a major client and the pandemic drained its cash and caused it to furlough employees.

Expert Analysis

  • Understanding Discovery Obligations In Era Of Generative AI

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    Attorneys and businesses must adapt to the unique discovery challenges presented by generative artificial intelligence, such as chatbot content and prompts, while upholding the principles of fairness, transparency and compliance with legal obligations in federal civil litigation, say attorneys at King & Spalding.

  • Asserting 'Presence-Of-Counsel' Defense In Securities Trials

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    As illustrated by the fraud trial of FTX founder Sam Bankman-Fried, defense attorneys in securities trials might consider arguing that counsel had some involvement in the conduct at issue — if the more formal advice-of-counsel defense is unavailable and circumstances allow for a privilege waiver, say Joseph Dever and Matthew Elkin at Cozen O'Connor.

  • Crypto Has Democratized Trading In Bankruptcy Claims

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    Following the pandemic, there has been a wave of cryptocurrency bankruptcies and a related increase in access to information, allowing nontraditional bankruptcy investors to purchase claims and democratizing a once closed segment of alternative investing, says Joseph Sarachek at Strategic Liquidity.

  • The Case For Post-Bar Clerk Training Programs At Law Firms

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    In today's competitive legal hiring market, an intentionally designed training program for law school graduates awaiting bar admission can be an effective way of creating a pipeline of qualified candidates, says Brent Daub at Gilson Daub.

  • 5 Key Tips For Attorneys In The Subchapter V Arena

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    Subchapter V cases present unique challenges for the nondebtor parties-in-interest, and habits developed by attorneys in typical Chapter 11 cases do not necessarily translate, meaning creditors and their counsel should quickly take a proactive role in their cases to protect their interests, which can be done by attending the 341 meeting, analyzing the plan, and more, says Kelly Singer at Squire Patton.

  • Attorneys Have An Ethical Duty To Protect The Judiciary

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    The tenor of public disagreement and debate has become increasingly hostile against judges, and though the legislative branch is trying to ameliorate this safety gap, lawyers have a moral imperative and professional requirement to stand with judges in defusing attacks against them and their rulings, says Deborah Winokur at Cozen O'Connor.

  • Why The Debt Maturity Wall Is Still A Figment, For Now

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    While the phenomenon of the debt maturity wall — a growing wall of staggered corporate debt maturities — has been considered a looming problem since the aftermath of the 2008 global financial crisis, it’s unlikely to have significant consequences before 2025 due to factors such as quantitative easing and evolved lending practices, says Michael Eisenband at FTI Consulting.

  • AI Can Help Lawyers Overcome The Programming Barrier

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    Legal professionals without programming expertise can use generative artificial intelligence to harness the power of automation and other technology solutions to streamline their work, without the steep learning curve traditionally associated with coding, says George Zalepa at Greenberg Traurig.

  • 10 Essential Bankruptcy Litigation Tips For In-House Counsel

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    Bankruptcy litigation is a complex and multifaceted area of law that poses unique challenges for in-house counsel, and there are several tools at legal professionals' disposal, like appraisals and understanding jurisdictions, to stay well-informed and protect their companies' interests, says Alison Ashmore at Dykema.

  • Preparing Law Students For A New, AI-Assisted Legal World

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    As artificial intelligence rapidly transforms the legal landscape, law schools must integrate technology and curricula that address AI’s innate challenges — from ethics to data security — to help students stay ahead of the curve, say Daniel Garrie at Law & Forensics, Ryan Abbott at JAMS and Karen Silverman at Cantellus Group.

  • Sellers Seeking Best Deal Should Focus On Terms And Price

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    Rising interest rates and a decline in the automotive mergers and acquisitions market mean that a failed deal carries greater stakes, and sellers therefore should pursue not only the optimum price but also the optimum terms to safeguard their agreement, says Joseph Aboyoun at Fox Rothschild.

  • General Counsel Need Data Literacy To Keep Up With AI

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    With the rise of accessible and powerful generative artificial intelligence solutions, it is imperative for general counsel to understand the use and application of data for myriad important activities, from evaluating the e-discovery process to monitoring compliance analytics and more, says Colin Levy at Malbek.

  • Rite Aid's Reasons For Ch. 11 Go Beyond Opioid Suits

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    Despite opioid-related lawsuits being the perceived reason that pushed Rite Aid into bankruptcy, the company's recent Chapter 11 filing reveals its tenuous position in the pharmaceutical retail market, and only time will tell whether bankruptcy will right-size the company, says Daniel Gielchinsky at DGIM Law.

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