Bankruptcy : Law360 : Legal News & Analysis (2024)

Chile Telecom Co. WOM Can Tap $100M DIP In US Bankruptcy

The second-largest cellphone network operator in Chile, WOM SA, can access $100 million of a debtor-in-possession package during the first leg of its Chapter 11 case, a Delaware bankruptcy judge ruled Tuesday, overriding objections from creditors.

WeWork Drops 150 Leases To Cut Rent Costs By $8B In Ch. 11

Coworking company WeWork has agreed to exit 150 leases and restructure others to reduce its future rent payments by some $8 billion, saying the "significant milestone" paves the way for it to exit Chapter 11 by the end of May.

Sacramento Diocese's $500M Abuse Liability Prompts Ch. 11

The Roman Catholic Bishop of Sacramento has filed for Chapter 11 in California court to address historical childhood sexual abuse liability that could reach as high as $500 million, saying the hundreds of claims could sap all the debtor's assets unless it sought the protection of bankruptcy.

Shoes For Crews Footwear Co. Hits Ch. 11 With $480M Debt

Nonslip shoe company Shoes for Crews filed for Chapter 11 protection in Delaware on Tuesday with $480 million in funded debt and a stalking horse bid from its lenders.

Acorda Therapeutics Hits Ch. 11, Plans $185M Drug Sale

Neurological disorders drugmaker Acorda Therapeutics Inc. filed for Chapter 11 protection in New York bankruptcy court, with plans to sell its assets to another pharmaceutical company for $185 million.

Insurance Mogul's Cos. Want $161M Arbitration Case Tossed

Two companies associated with Greg Lindberg are looking to nix litigation filed by defunct Dutch life insurer Conservatrix to enforce an arbitral award that could force the embattled insurance mogul to fork over about $161 million, arguing that the award orders only provisional relief and is not enforceable.

Bankrupt Water Co. Investors Say CEO Stole Millions

Investors of now-defunct water purification company Water Now said its former CEO ran the business into the ground while enriching himself, telling a Texas federal court Friday that the executive used the company to take out significant loans and line his own pockets.

Bankrupt Coal Co.'s Affiliates Beat $6.5B Union Pension Suit

A bankrupt coal company's affiliates have dodged claims that they owe $6.5 billion to a union pension plan, with a Washington, D.C., federal judge holding that the plan's trustees lacked standing to sue under the Employee Retirement Income Security Act because one trustee wasn't properly appointed.

Spinning For Terraform Was Tough, Crypto Rep Tells Jury

A California man who worked for Terraform Labs and creator Do Kwon told a Manhattan federal jury Monday that doing public relations for the now-bankrupt cryptocurrency startup accused of fraud left him "angry" and confused as he tried to be transparent.

Inside The Global Ch. 11 Hunt For Ho Wan Kwok's Money

Chasing the assets of controversial businessman Ho Wan Kwok across dozens of jurisdictions worldwide isn't an impossible mission for the seasoned Chapter 11 trustee pursuing hundreds of clawback claims, but experts predict a formidable task awaits the Paul Hastings LLP partner thanks to a potentially hostile reception in foreign courts.

Eiger BioPharmaceuticals Hits Ch. 11 With $53.1M Debt

Eiger BioPharmaceuticals Inc. filed for Chapter 11 protection in Texas bankruptcy court Monday with $53.1 million of debt and plans to sell its assets during the case.

Canadian Trucking Co. Seeks US Bankruptcy Recognition

Canadian truck dealers the Pride Group on Monday asked a Delaware judge for U.S. recognition of the Canadian insolvency proceedings it began in the face of a more than $90 million claim from Mitsubishi over an alleged loan default.

Chilean Telecom Operator WOM Hits Ch. 11 With $1B In Debt

WOM SA, one of the largest phone and internet providers in Chile, and five affiliates sought Chapter 11 protection in Delaware on Monday, listing over $1 billion in debt and saying credit downgrades, delays in a 5G network project and creditor liquidation attempts led it to bankruptcy.

5G Co. Airspan Hits Ch. 11 With $205M Debt, Reorg Plan

5G hardware and software maker Airspan Networks filed for Chapter 11 protection Monday in a Delaware bankruptcy court with plans to trade its more than $205 million in funded debt for equity and raise up to $95 million in new equity financing.

Judge Axes UpHealth's Claim Estimation Bid In Bankruptcy

A Delaware bankruptcy judge denied UpHealth Holdings Inc.'s request to treat a potential liability claim as worth nothing, saying the company hadn't shown that the bankruptcy case would be hindered if a state court was left to decide the claim's value.

Giuliani Says He Could Be 'Homeless' If Florida Condo Is Sold

Rudy Giuliani said the official committee of unsecured creditors in his Chapter 11 case has overstepped its powers by asking a New York bankruptcy judge to force the sale of his Florida condo, a move that the former New York City mayor said could add him to "the ranks of the homeless."

NY Bar Assoc. Building Owner Says Ch. 11 Filings Legit

The company that controls the historic New York County Lawyers Association Building in Manhattan has asked a New Jersey bankruptcy judge to reject a lender's motion to dismiss its Chapter 11 proceedings, asserting that the cases were not merely filed to halt a foreclosure sale.

Up Next After Bankman-Fried Sentencing: FTX Cooperators

Now that FTX founder Sam Bankman-Fried has been sentenced to 25 years in prison for an $11 billion fraud on the collapsed crypto exchange, it's time for the three top lieutenants who testified against him at trial to face their own judgments — and experts say the cooperators are well positioned to avoid jail time.

Epiq Says Chubb Owes Costs In Clergy Abuse Data Leak Case

Epiq Corporate Restructuring LLC has sued Chubb-affiliated insurers in Connecticut federal court seeking to be reimbursed for $2.5 million in settlement costs and roughly $1.8 million for its defense of litigation over Epiq's disclosure of sex abuse survivors' names in a Chapter 11 case.

FTX Investors To Settle With Ex-Execs, Crypto Promoters

Investors who launched a multidistrict litigation over cryptocurrency exchange FTX's collapse have reached a set of settlements with the former inner circle of founder Sam Bankman-Fried as well as seven promoters who, together, have agreed to pay over $1.3 million to resolve claims that they boosted a massive fraud scheme at the company.

Judge Grants Request To Halt Camden Diocese Ch. 11 Plan

A New Jersey bankruptcy judge agreed Thursday to freeze the implementation of the Roman Catholic Diocese's Chapter 11 plan, saying he does not want any action of the diocese to try and moot an appeal by insurance carriers.

Fruit Grower Cleared To Leave Ch. 11 With $43M Exit Loan

California stone fruit producer Prima Wawona is set to wind down its packing and distribution division, hand ownership of the reorganized company to creditors and leave bankruptcy after a Delaware bankruptcy judge agreed to approve its Chapter 11 plan Thursday.

A Colorado district judge has selected two clients of Faruqi & Faruqi LLP to lead an investor class action accusing the executives and directors of wellness company NewAge Inc. of securities fraud, saying the plaintiff with an even bigger financial interest is unfit for appointment because he hid his "troubling" background.

Auto Parts Mogul Must Face Lender's $127M Trust Fraud Suit

An auto parts mogul must face allegations that he tampered with assets in a trust that owes hundreds of millions of dollars to a lending agent, a Michigan federal judge said this week after ruling the lender has plausibly alleged the mogul made fraudulent transfers to hinder the debt repayment.

Rite Aid Says It Has Creditor Deal, Gets OK For Plan Vote

A New Jersey bankruptcy judge Thursday gave Rite Aid the go-ahead to send its Chapter 11 plan out for a creditor vote after hearing it has reached a $47.5 million deal with unsecured creditors and is close to a settlement on state and federal claims over drug sales.