Bed Bath & Beyond, the home goods retailer, has filed bankruptcy under Chapter 11 and plans to conduct liquidation sales and close all of its brick-and-mortar stores by June 30, as reported by The New York Times. The retailer points to an inability to adjust to the growth of online shopping as a reason
In a recent article published by Law360, Mayer Brown’s Sean Scott, Aaron Gavant and Lisa Holl Chang break down recent decisions by the Fifth and Ninth Circuits relating to whether, in solvent debtor cases, unsecured creditors are entitled to postpetition interest in order to be deemed “unimpaired” under a plan of reorganization, and if so
Bed Bath & Beyond announced a series of measures to address declining sale performance, as announced by press release and reported by Yahoo! Finance. The company has received commitments for $500 million in additional financing. It also plans to sell up to 12 million additional shares of common stock, close 150 underperforming stores and
Judge David Jones in the Southern District of New York has rejected a request for an official committee of equity holders in Revlon’s chapter 11 proceedings, as reported by Reuters. Debtor’s counsel argued that the equity holders “cannot possibly” prove that they are entitled to a meaningful recovery at this stage of the bankruptcy
Bloomberg describes the latest example of a priming transaction that left minority lenders “fuming.” Recently, Incora, an aerospace supplier, announced a transaction with Silver Point Capital and Pacific Investment Management Co. in which it received new financing and will potentially save up to $90 million in interest expense. The transaction includes what Bloomberg characterized as
Talc claimants should have their appeal of a decision permitting J&J-subsidiary LTL Management to continue its Chapter 11 proceedings heard as soon as possible, according to the same bankruptcy judge that issued the decision. In February, Judge Michael Kaplan of the U.S. Bankruptcy Court of New Jersey permitted the company to stay in Chapter 11,
Whether—and in what circumstances—a debtor should pay creditors a make-whole premium continues to be litigated in bankruptcy courts. Last week, as reported by Bloomberg, Judge Dorsey (Delaware) ruled that the debtor – Mallinckrodt Plc – did not need to pay a make whole premium to first lien lenders in order to reinstate such obligations
Hertz is making big news just months after emerging from its successful Chapter 11 bankruptcy. As reported by NBC News, Hertz has signed deals with Tesla (to add at least 100,000 Teslas to its fleet), Uber (to make up to half of those Teslas available to Uber drivers), and with Carvana (to sell its
Bloomberg reports that shareholders in Latam Airlines Group SA’s chapter 11 case have organized into an ad hoc committee and hired the same counsel that represented equity holders in Hertz. Shareholders see the potential for the Latam bankruptcy to produce a recovery to common equity; similar to Hertz, Latam is a travel company, was in
The Wall Street Journal reports on the winning bid in the 36-hour auction for control of Hertz in anticipation of its emergence from bankruptcy later this summer. The winning bidders, a group of co-investors led by Knighthead Capital Management and Certares Management, will buy the bulk of Hertz’s equity upon emergence for $2.8 billion. Assuming