What We’re Reading This Week

The Wall Street Journal reports that the US Senate passed a bill to require lawyers, accountants, consultants and other professionals hired by Puerto Rico in its bankruptcy proceedings to make additional disclosures of their various connections, in order to shed light on potential conflicts of interest. In February 2021, a companion version of this bill

Reporting from the Wall Street Journal indicates that plaintiffs in price fixing lawsuits against generic drugmaker Teligent Inc. have sought court authority to continue that litigation despite Teligent’s October bankruptcy filing.  The litigation, which commenced in 2016, alleges that Teligent artificially inflated the costs of certain generic drugs and is being pursued primarily by attorneys

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

Bloomberg reports that Puerto Rico’s restructuring plan can move forward, with the passage of a new law that allows the island to sell bonds.  This resolves Puerto Rico’s dispute with the commonwealth’s financial oversight board, which threatened to derail its bankruptcy case. [Bloomberg; Oct. 28, 2021]

Reporting from Reuters indicates that the economy grew at

Reuters interviews Representative Cheri Bustos with respect to a bill she proposed last week, which would prevent executives of bankrupt companies who make more than $250,000 per year from receiving bonuses during or in the six months before a bankruptcy.  [Reuters; October 19, 2021]

CNBC reports on supply chain issues exacerbated by panic ordering from

According to Bloomberg’s U.S. Bankruptcy Tracker, the amount of distressed bonds and loans traded in U.S. markets had the biggest weekly boost of this year, with distressed debt in the telecommunications and oil and gas industries driving the jump. [Bloomberg, Sept. 28, 2021]

The Wall Street Journal discusses a report issued by the Government

Bloomberg Law discusses pending petitions for certiorari seeking the U.S. Supreme Court’s review of lower courts’ application of the “equitable mootness” doctrine, which places significant limits on dissenting parties ability to appeal from orders confirming Chapter 11 plans of reorganization.   One such petition arises out of the Nuverra Environmental Solutions case, which we previously discussed

Law360 reported that the U.S. Trustee’s Office filed a motion opposing a “death trap” provision contained in Avianca Holdings’ Chapter 11 plan of reorganization. In bankruptcy, so-called “death trap” provisions reward classes of creditors for voting in favor of plans of reorganization with higher payouts as an incentive for them to vote to accept a