Mid Cap
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May 21, 2025
Meet The Attys Helping Gov't IT Contractor Sysorex In Ch. 11
Sysorex Government Services Inc., a government information technology contractor, has tapped attorneys from Cullen and Dykman LLP to steer it through the Chapter 11 it began with over $30 million in debt, wracked by uncertainty over potential cuts from the White House's Department of Government Efficiency, a six-figure judgment and a long sale process.
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May 20, 2025
Crypto Co. Genesis Sues Parent Co. Over $1.2B In Transfers
Genesis Global Capital, a crypto lender that filed for bankruptcy in 2023, is now suing its parent company in bankruptcy court, seeking to recover more than $1.2 billion that the lender says was transferred to insiders while the company was insolvent and headed for Chapter 11.
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May 20, 2025
Creditors Win Fight Against Insider Releases In Azzur Ch. 11
A Delaware bankruptcy judge on Tuesday sustained an objection to insider releases in the Chapter 11 liquidation plan of Azzur Group, finding the pharmaceutical services company had not justified the releases for prepetition conduct of current and former officers, directors, and equity holders.
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May 20, 2025
Catching Up With New Bankruptcy Case Action
Two Canadian companies, one a geothermal energy business and another that recycles batteries, sought Chapter 15 protection in the U.S. A biotechnology research company filed for Chapter 11 protection in Ohio after failing to generate enough revenue to maintain its capital-intensive operations. And a not-for-profit New York City private school launched a Chapter 11 case as it faces closure.
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May 20, 2025
Jailed Investor Puts Portfolio In Ch. 11 Ahead Of NY Auction
A group of companies owned by a real estate investor jailed last month for his role in a scheme defrauding Fannie Mae has filed for bankruptcy protection in New Jersey on a portfolio carrying at least $100 million in both assets and debt, ahead of a sheriff's sale in New York set for Tuesday.
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May 20, 2025
Disbarred Atty Turns Informant In Debt Firm Bankruptcy Battle
Two years after his debt relief law firm collapsed amid allegations he stole approximately $250 million from clients and investors, disbarred California attorney Tony Diab recently began telling a court-appointed bankruptcy trustee everything he did — and where the money went. The trustee has used this information to file dozens of lawsuits. But can Diab be trusted?
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May 20, 2025
Healthcare Spending Slowdown Sparked Accelerate's Ch. 11
Biotechnology company Accelerate faced regulatory challenges and weakened demand from hospitals for its diagnostics products before it filed for bankruptcy protection this month, and is now planning to sell its assets and wind down the business.
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May 20, 2025
Nursing Homes Facing 'Corporate Death Penalty' Owe $15.4M
The companies behind two Pittsburgh-area nursing homes convicted of falsifying staffing records were ordered Tuesday to pay a total of $15.35 million in restitution to the federal government, though the corporations' attorney told the judge that they had already received a "corporate death penalty" for their conviction.
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May 19, 2025
Whiskey Distillery Hopes To Beat COVID Hangover In Ch. 11
The Portland, Oregon-based distiller of Westward Whiskey was driven to bankruptcy by flagging demand for booze following the COVID-19 pandemic, according to its bankruptcy filings, but the liquor producer says it is not last call for the business.
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May 19, 2025
Heritage Coal's Ch. 11 Sale Timeline Approved In Del.
The proposed sale procedures for Heritage Coal, a bankrupt mining operation, received approval Monday from a Delaware bankruptcy judge, who overruled objections from the company's previous owners to certain deadlines.
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May 19, 2025
Aspiration Partners Strikes Creditor Deal, Gets OK For DIP
Sustainability-focused financial services firm Aspiration Partners told a Delaware bankruptcy judge on Monday that it resolved creditors' objections to its nearly $20 million in Chapter 11 financing by excluding litigation claims from an asset auction slated for next week.
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May 19, 2025
Biotech Services Company Files Ch. 11 With $60M In Debt
Contracted biotechnology research company AmplifyBio filed for Chapter 11 protection late Friday in Ohio bankruptcy court listing about $60 million in debt, saying it intends to sell its assets after failing to realize sufficient revenue to support its capital-intensive operations.
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May 19, 2025
Rite Aid Touts Pharmacy Sales, Yellow's $14M Sales OK'd
Rite Aid Corp. announced proposed deals to hand off pharmacy assets to operators including CVS and Walgreens in its Chapter 11. Defunct trucking company Yellow Corp. obtained bankruptcy court permission to sell for about $14 million. Forever 21 said it is likely to liquidate and hasn't found a buyer, then got the OK to take votes on its Chapter 11 plan.
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May 19, 2025
'50 Cent' Liquor Biz Eyes Ex-Boss's Conn. Home For $7M Debt
Famed rapper Curtis '50 Cent' Jackson's liquor company asked a Connecticut bankruptcy court to let the business enforce its lien on its former brand manager Mitchell Green's $1 million home in Westport to help satisfy a $7 million fraud judgment, arguing that the lien will not disrupt Green's Chapter 7 proceedings.
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May 19, 2025
Azzur Faces Uphill Battle To Get Ch. 11 Plan Confirmed
A Delaware bankruptcy judge on Monday told the attorneys for pharmaceutical services company Azzur Group that they have a "hard hill to climb" to get their client's bankruptcy proposal approved in court, during the first day of its confirmation hearing.
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May 19, 2025
Wachtell-Led Regeneron To Buy 23andMe, Gaining User Data
Regeneron Pharmaceuticals said Monday it emerged as the winning bidder for 23andMe, agreeing to pay $256 million to scoop the once high-flying consumer genomics firm out of bankruptcy while pledging to uphold strict privacy standards.
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May 19, 2025
Proskauer Adds Another M&A Atty In NYC From Ropes & Gray
Proskauer Rose LLP announced Monday that it has brought another Ropes & Gray LLP attorney specializing in distressed mergers and acquisitions to its New York office.
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May 19, 2025
Manhattan Private School Files Ch. 11 On Verge Of Closure
Not-for-profit New York City private school Manhattan Country School has filed for Chapter 11 protection in a New York bankruptcy court with more than $27.4 million in debt, saying it's insolvent and on the verge of closing its doors.
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May 16, 2025
Real Estate Recap: Gold Card, Hospitality, Revolving Door
Catch up on this past week's key developments by state from Law360 Real Estate Authority — including attorney insights into the "Gold Card" visa program, the hospitality sector's reaction to tariffs, and the path from in-house attorney to private practice.
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May 16, 2025
What's Happening In Bankruptcy Court In The Coming Week
In the coming week, Delaware bankruptcy judges will hear arguments on asset sales by educational technology company Epic Creations Inc. and retailer Dormify, as well as a Chapter 11 plan by pharmaceutical services company Azzur Group and a disclosure statement by satellite company Ligado Networks.
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May 16, 2025
Nuvo, Israeli Trustee Agree To Pause Bankruptcy Control Fight
Bankrupt Nuvo Group and an Israeli court-appointed trustee tasked with liquidating it will try to align their competing insolvency cases to end a heated tussle for control of the pregnancy technology firm, attorneys told the Delaware bankruptcy judge overseeing Nuvo's Chapter 11 Friday.
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May 16, 2025
US Trustee Challenges Creativemass Ch. 11 Liquidation Plan
The U.S. Trustee's Office objected to the proposed Chapter 11 plan of Creativemass, a wealth management app developer that is pursuing prepackaged liquidation, arguing that the plan would lock in prepetition note conversions that would benefit an insider of the debtor.
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May 16, 2025
Bank Balks At Nostrum Ch. 11 Sale Over Drug Disposal Issue
Waterford Bank NA has objected to New Jersey drugmaker Nostrum Laboratories Inc.'s plan to sell an Ohio property, saying the bank doesn't want to be left to pay for the disposal of large quantities of controlled substances left at the site, an issue the parties are now negotiating ahead of a hearing next week.
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May 16, 2025
Oregon Distillery Seeks Ch. 11 Loan To Reassure Vendors
Citing an emergency need for a shot of cash, an insolvent Oregon whiskey distiller sought a Delaware bankruptcy judge's approval for an up-to $1.55 million Chapter 11 loan in part to assure vendors that it will continue business through its reorganization and after exit.
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May 16, 2025
Canadian Geothermal Co. STS Hits Ch. 15 With Sale Plan
Toronto-based geothermal energy company STS Renewables Ltd. and affiliates have filed for Chapter 15 protection in Delaware bankruptcy court seeking recognition of a Canadian insolvency proceeding designed to help the company sell its assets.
Expert Analysis
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Tracking The Evolution Of Liability Management Exercises
As liability management exercises face increasing legal scrutiny, understanding the history of these debt restructuring tools can help explain how the playbook keeps adapting — and why the next move is always just one ruling or transaction away, say attorneys at Weil.
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3 Steps For In-House Counsel To Assess Litigation Claims
Before a potential economic downturn, in-house attorneys should investigate whether their company is sitting on hidden litigation claims that could unlock large recoveries to help the business withstand tough times, says Will Burgess at Hilgers Graben.
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Negotiating Triparty Hotel Agreements To Withstand Risk
Brewing economic uncertainty in the hospitality industry underscores the importance of subordination, nondisturbance and attornment agreements, and hotel managers should tightly negotiate these agreements to ensure remedies will not disturb key rights, say attorneys at Sidley.
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Adapting To Private Practice: From DOJ Enviro To Mid-Law
Practitioners leaving a longtime government role for private practice — as when I departed the U.S. Department of Justice’s environmental enforcement division — should prioritize finding a firm that shares their principles, values their experience and will invest in their transition, says John Cruden at Beveridge & Diamond.
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Addressing D&O Allocation Questions Amid Shifting Economy
As increasing global insolvency this year may lead to an increase in directors and officers insurance claims, businesses should review their policies' allocation provisions to avoid negotiating how coverage will apply to covered and uncovered claims during a suit, say attorneys at Reed Smith.
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Legal Ethics Considerations For Law Firm Pro Bono Deals
If a law firm enters into a pro bono deal with the Trump administration in exchange for avoiding or removing an executive order, it has an ethical obligation to create a written settlement agreement with specific terms, which would mitigate some potential conflict of interest problems, says Andrew Altschul at Buchanan Angeli.
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Cannabis Deregulation Raises Bankruptcy Access Questions
Attorneys at Thompson Coburn explore why cannabis companies have been historically prohibited from filing for bankruptcy, certain exceptions to the general rule, and the potential effects of federal deregulation on such companies' bankruptcy eligibility.
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Playing Football Made Me A Better Lawyer
While my football career ended over 15 years ago, the lessons the sport taught me about grit, accountability and resilience have stayed with me and will continue to help me succeed as an attorney, says Bert McBride at Trenam.
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10 Arbitrations And A 5th Circ. Ruling Flag Arb. Clause Risks
The ongoing arbitral saga of Sullivan v. Feldman, which has engendered proceedings before 10 different arbitrators in Texas and Louisiana along with last month's Fifth Circuit opinion, showcases both the risks and limitations of arbitration clauses in retainer agreements for resolving attorney-client disputes, says Christopher Blazejewski at Sherin and Lodgen.
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Ch. 11 Free-And-Clear Sale Ruling Takes Pragmatic Approach
A recent ruling from a New York bankruptcy court in which the debtors were allowed to sell interests free and clear regardless of a lienholder's objection signals a practical approach and a recalibration of the balance between debtor flexibility and creditor protections, say attorneys at Eversheds Sutherland.
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Power To The Paralegals: The Value Of Unified State Licensing
Texas' proposal to become the latest state to license paraprofessional providers of limited legal services could help firms expand their reach and improve access to justice, but consumers, attorneys and allied legal professionals would benefit even more if similar programs across the country become more uniform, says Michael Houlberg at the University of Denver.
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Administrative Disaster At Bankruptcy Courts May Be In Sight
If, as a result of voluntary resignations or terminations, the professional staff of the U.S. Trustee's Office is depleted, it will undoubtedly cause a slowdown in the administrative process for the significant majority of bankruptcy cases, says Charles Tatelbaum at Tripp Scott.
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An Unrestrained, Bright-Eyed View Of Legal AI's Future
Todd Itami at Covington offers a bright-eyed, laughing-all-the-way, skydive look at what the legal industry could look like after an artificial intelligence revolution, which he believes may happen much sooner and more dramatically than we expect.