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
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 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
CNBC discusses the Labor Department’s latest report on the U.S. labor market. According to the report, a record 4.3 million workers left their jobs in August, with workers in food service and retail industries leading the way. The number of job openings also saw a sharp decline during the month as hiring fell. [CNBC; Oct.
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