What We’re Reading This Week

Law360 reports that Coinbase included new bankruptcy-related risk factors in a recent SEC filing, explaining that “custodially held” digital assets (i.e., cryptocurrency) could be considered property of a bankruptcy estate if the company were to file for bankruptcy and that Coinbase customers could be treated as general unsecured creditors, which would decrease their likelihood of

The Wall Street Journal reports that Pennsylvania-based Armstrong Flooring Inc. filed for chapter 11 bankruptcy relief in Delaware on May 8, 2022, citing supply chain disruptions and increased costs for materials and transportation.  Armstrong Flooring, a publicly-traded company that was founded in 1860, stated that it intends to pursue a sale of its business through

The Wall Street Journal reports on the surprise Thursday announcement from the U.S. Commerce Department that the U.S. gross domestic product unexpectedly shrank at a 1.4% annualized rate during the first quarter of 2022.  The WSJ does not expect the GDP report to alter the Federal Reserve’s plan to raise interest rates this year, including

The Wall Street Journal reports that Russia has taken another step closer to defaulting on its sovereign debts after an industry watchdog overseeing the credit-default swaps market ruled Wednesday that Russia failed to meet its obligations to foreign bondholders when it paid them in rubles earlier this month.  While Russia has continued to deny reports

US mortgage rates hit 5% this week for the first time in more than a decade, continuing a rapid ascent since the start of 2022.  According to The Wall Street Journal, interest on the average 30-year fixed-rate mortgage climbed from 4.72% a week ago to its highest level since early 2011.  Now, bankers and

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,

Per Law360, a Delaware bankruptcy judge ruled that Art Van Furniture did not violate the Worker Adjustment and Retraining Notification (“WARN”) Act, which requires large employers to provide least 60 days’ notice to workers before mass layoffs, when Art Van laid off 700 workers when COVID-19 shutdown orders were in effect. The

Bloomberg reports that Puerto Rico ended its five-year bankruptcy this week by restructuring $22 billion of debt. This was accomplished through a bond transaction in which certain investors exchanged their prepetition debt securities for new general obligations. The exchange reduced Puerto Rico’s funded debt to approximately $7 billion and dedicated $1.4 billion for public employees’

Reuters reports that Mahwah Bergen Retail Group – the former owner of the Ann Taylor retail clothing brand – obtained bankruptcy court approval of its revised reorganization plan, from which certain non-debtor releases were removed.  The revised plan comes after the U.S. District Court for the Eastern District of Virginia held that the non-debtor releases