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***Check out the Library's training calendar for CLEs scheduled next week in honor of National Library Week, including a Lexis CLE on Chapter 11 research on Tuesday, April 9, at 12:00 PT.***
Supreme Court & Ninth Circuit:
How Purdue Pharma High Court Case May Change Bankruptcy (Law360/Analysis)
“However, depending on both the decision's breadth and the Supreme Court's ability to understand the issue's context within the broader Chapter 11 practice, the opinion could have much more far-reaching effects on the entire bankruptcy system.”
Banks:
Banks Are Extending Office Loans. Are They Also Pretending? (Wall Street Journal*)
"The looming 'maturity wall' for commercial real-estate loans coming due has been moved back, but it has also gotten taller. Banks’ commercial real-estate loans are now growing at an accelerating rate."
SoftBank-Backed Window Maker Files Bankruptcy to Cut Debt (Bloomberg)
"View Inc., a window-maker partly owned by SoftBank Group , filed for bankruptcy Tuesday with a proposal to turn itself over to lenders in exchange for reducing its $359 million debt load."
Wealth Management Is a Risky Gold Rush for Banks (Wall Street Journal*)
"Today’s markets love nothing more than a growth narrative and, with wealth management, banks finally have one. The risk is that they all crowd in at the same time...Among banks valued above $100 billion, Morgan Stanley and UBS have been the top stock-market performers of the past half-decade. Both companies bet on wealth management and private banking."
Bank of America won’t face racketeering class action over foreclosures (Courthouse News)
"Bank of America and the Bank of New York Mellon won dismissal of a class action by homeowners who claimed the banks are engaged in a racketeering scheme that uses fraudulent documents to foreclose on their homes."
Biden Big Bank Exemption Rule for 401(k)s Finalized by DOL (Bloomberg)
"Wall Street asset managers whose institutions have faced foreign criminal charges will soon find it harder to oversee workplace retirement assets without running afoul of federal benefits law protections."
Cryptocurrencies:
Spinning For Terraform Was Tough, Crypto Rep Tells Jury (Law360)
"A California man who worked for Terraform Labs and creator Do Kwon told a Manhattan federal jury Monday that doing public relations for the now-bankrupt cryptocurrency startup accused of fraud left him 'angry' and confused as he tried to be transparent."
FTX Investors to Settle with Ex-Execs, Crypto Promoters (Law360)
"Investors who launched a multidistrict litigation over cryptocurrency exchange FTX's collapse have reached a set of settlements with the former inner circle of founder Sam Bankman-Fried as well as seven promoters who, together, have agreed to pay over $1.3 million to resolve claims that they boosted a massive fraud scheme at the company."
Hedge funds that scooped up FTX bankruptcy claims are looking at 9-figure paydays. One investor shares how he could rake in $25 million (Fortune*)
"When rumors began swirling online that FTX was in trouble, one of the crypto exchange’s customers, Louis d’Origny, took no notice, turning his attention back to the friends he was hosting at his Miami Beach condo."
Housing:
Buyers need a six-figure income to afford a typical home in 22 states — up from just six states in 2020 (Page Six)
"Bankrate found that 22 states and Washington, DC, require buyers to make upwards of $110,871 to comfortably afford a median-priced home of $402,343."
Why buying a house feels impossible right now (Vox)
"Home sales in 2023 were the lowest they’ve been in nearly 30 years."
The Realtors settlement is already changing the way some Americans buy and sell homes (CNN)
"Under the proposed settlement terms, sellers’ agents will no longer be required to offer to share their commission with buyers’ agents, uncoupling commissions from home prices and opening the door to a more competitive housing market."
The home insurance market is crumbling. These owners are paying the price (CNN)
"There were a record 28 weather and climate disasters with losses totaling over $1 billion last year in America...By comparison, between 1980 and 2023, the typical annual average for these events was 8.5."
Energy:
Bankrupt Coal Co.'s Affiliates Beat $6.5B Union Pension Suit (Law360)
“A bankrupt coal company's affiliates have dodged claims that they owe $6.5 billion to a union pension plan, with a Washington, D.C., federal judge holding that the plan's trustees lacked standing to sue under the Employee Retirement Income Security Act because one trustee wasn't properly appointed.”
Retail:
Retailer Express Holds Talks for Bankruptcy Financing (Bloomberg)
"Express may file for bankruptcy as soon as next week, but the preparations aren’t final and plans could change."
Tupperware warns it could go out of business over liquidity problems (New York Post)
"Tupperware Brands warned that the 77-year-old company may not survive for another year and forecast inadequate liquidity to fund operations.."
Retailer 99 Cents Is Mulling a Potential Bankruptcy Filing (Bloomberg)
"The more-than-370-store company is also weighing potential liquidation since a sales process for some of its assets has stalled..."
Shoes For Crews Footwear Co. Hits Ch. 11 With $480M Debt (Law360)
“Nonslip shoe company Shoes for Crews filed for Chapter 11 protection in Delaware on Tuesday with $480 million in funded debt and a stalking horse bid from its lenders.”
Beauty Slowdown Reflects Cracks in Consumer Spending (Wall Street Journal*)
“After years of pandemic splurging, Ulta Beauty CEO says pullback is evident across price points and product types.”
Restaurants:
The last days of Boston Market (Washington Post)
"[A]fter distinguishing itself in the 1990s as a cut above fast food, it attempted to compete with those brands by holding its costs down — a move that ultimately led to a reduction in quality, which only undercut it further."
Student Debt & For-Profit Colleges:
Tuition now costs a whopping $90,000 a year or more at some US universities (Business Insider)
"Schools like New York University, Tufts, the University of Pennsylvania, and Yale are pegging the total cost of university attendance — which covers tuition, housing, food, supplies, books, and more — for the 2024-25 school year at over $90,000..."
What to Know About the Latest Student-Loan Forgiveness Plans (New York Magazine Intelligencer)
“Successfully navigating through yet another round of new steps in the loan-forgiveness labyrinth, starting this month, means the difference between two starkly different outcomes.”
Republican states file lawsuit challenging Biden’s student loan repayment plan (AP News)
“A group of Republican-led states is suing the Biden administration to block a new student loan repayment plan that provides a faster path to cancellation and lower monthly payments for millions of borrowers.”
Biden Emails 380,000 Borrowers: You’ll Get Student Loan Forgiveness in Two Years or Less (Forbes)
“The Department of Education indicates that nearly 400,000 borrowers are on track to receive student loan forgiveness within two years. And starting this week, President Joe Biden will be sending out emails to these borrowers, notifying them of their progress.”
Student loan servicer MOHELA tells advocacy group to stop ‘misleading claims’ (Washington Post)
“One of the nation’s largest student loan servicers is threatening legal action against an advocacy group that wrote a blistering report on its business practices.”
Student Loan Forgiveness Receives Huge Senate Boost (Newsweek)
“Democratic lawmakers have endorsed plans to codify the Saving on a Valuable Education (SAVE) student debt repayment plan so that it cannot be overturned by future officials.”
Big Pharma / BioTech:
Eiger BioPharmaceuticals Files for Bankruptcy (Pro Bankruptcy/WSJ*)
“Shares of Eiger BioPharmaceuticals plunged to an all-time low Monday after the company filed for chapter 11 bankruptcy with a deal in hand to sell its Zokinvy drug.”
Acorda Therapeutics Files for Bankruptcy Protection (Pro Bankruptcy/WSJ*)
“Acorda Therapeutics said it filed for bankruptcy protection and secured a “stalking horse” bid for its assets ahead of an auction process.”
Other Bankruptcy News & Analyses:
Corporate Bankruptcies Ticked Up 43% in First Quarter From 2023 (Bloomberg)
"There were 1,894 new commercial Chapter 11 cases in the first quarter of the year, up from 1,325 in that period last year, according to data tracked by Epiq Bankruptcy."
States With the Most and Least Bankruptcies (Forbes)
“Forbes Advisor analyzed data from the U.S. Courts to uncover which states are dealing with the most and least bankruptcy filings. We looked at filings for both individuals and businesses between September 2022 and September 2023.”
Business Bankruptcies Jump as Slow Wave of Failure Speeds Up (Bloomberg)
“Going bankrupt happens slowly, then all at once, to paraphrase an old saying. For businesses of all sizes, all at once is happening now.”
10 Questions for NJ Chief Bankruptcy Judge Michael Kaplan (Law360/Bankruptcy Authority)
“U.S. Bankruptcy Judge Michael B. Kaplan has been chief judge of New Jersey's bankruptcy court since 2020. So far, during his five-year term, he's overseen some of the nation's biggest Chapter 11 cases — including Johnson & Johnson unit LTL Management, BlockFi and Rite Aid — and shepherded the court into a period of high visibility.”
Bankruptcy Eligibility Rules Differ in Foreign Cases, Court Says (Bloomberg)
“An Omani man failed to escape bankruptcy proceedings in the US after the Eleventh Circuit ruled traditional debtor eligibility standards don’t apply to Chapter 15, the section of bankruptcy law that handles foreign cases.”
Chilean Telecommunications Provider WOM Files for Chapter 11 Bankruptcy (Pro Bankruptcy/WSJ*)
“Chilean telecommunications provider WOM filed for bankruptcy, blaming a delayed 5G network rollout, aggressive vendor actions and credit downgrades that spooked a lender.”
5G Co. Airspan Hits Ch. 11 With $205M Debt, Reorg Plan (Law360)
“5G hardware and software maker Airspan Networks filed for Chapter 11 protection Monday in a Delaware bankruptcy court with plans to trade its more than $205 million in funded debt for equity and raise up to $95 million in new equity financing.”
MV Realty Files Ch. 11 Plan Amid Growing Calls to Toss Case (Law360)
"MV Realty plans to reorganize in Florida bankruptcy court by firing its brokers and collecting millions in fees from about 34,000 U.S. homeowners over the next 40 years, even as more than a dozen states backed the U.S. Trustee's view that the case is a stall tactic against prosecutors.”
Casa Systems Files for Ch. 11 With $316M Debt, Plans Sale (Law360)
“Communications equipment company Casa Systems Inc. filed for Chapter 11 protection in Delaware, with plans to sell its 5G mobile core and RAN business to software company Lumine Group.”
Economy:
Who wouldn’t like prices to start falling? Careful what you wish for, economists say (AP)
"[F]alling prices tend to discourage consumers from spending. Why buy now, after all, if you can purchase what you want — cars, furniture, appliances, vacations — at a lower price later?"
US layoffs reach 14-month high amid government, tech cutbacks (Reuters)
“U.S. layoff announcements rose 7% in March to the highest since January 2023, led by technology and government-sector job eliminations, though cuts announced year to date are down 5% from a year ago amid a still-strong job market…”
America is down to its last 100 cotton mills (Seattle Times)
“The numbers are stark. This year, U.S. textile mills are expected to process the least cotton in 139 years. Textile factory employment in 2023 fell to its weakest annual rate in records going back more than three decades…”
How will the Baltimore bridge collapse affect prices and West Coast? (Seattle Times)
“The collapse of the Francis Scott Key Bridge and the closure of the Port of Baltimore this week could have far-reaching implications on West Coast ports, according to several experts.”
Last year was bad for commercial real estate. 2024 could be worse. (Washington Post)
“Four years after the pandemic hit, offices, downtowns and the banking system wait to see how long the consequences will linger.”
Covid changed how we spend: More YOLO splurging but less saving (Washington Post)
“Doom spending. Soft saving. YOLOing. Whatever you call it, it’s clear covid has changed the way Americans think about spending.”
Mass Layoffs Hit Three States (Newsweek)
“The heavily impacted states are New Jersey, Georgia and Florida.”
How Far $100 Goes at the Grocery Store After Five Years of Food Inflation (Wall Street Journal*)
“From beef to mayo, consumers continue to spend more to buy less.”
Celebrities / Entertainment:
Diamond Survives Bankruptcy, Signs a Multiyear Carriage Renewal With Top Pay TV Operator Charter (NextTV)
"Preparing to complete what had seemed just last fall to be a highly unlikely successful bankruptcy restructuring, Diamond Sports Group on Wednesday announced a multiyear carriage renewal deal with what is now the largest pay TV operator in the U.S., Charter Communications."
Rudy Giuliani says he shouldn’t be forced to sell $3.5M Florida condo in bankruptcy case — because he needs it for podcasting (New York Post)
"In February, Giuliani argued in the bankruptcy case that the Trump 2020 campaign and the Republican National Committee still owed him $2 million in legal fees for his work in challenging Donald Trump’s election loss."
REVEALED: Billionaire 'king of subprime car loans' backed Trump's $175million bond in New York fraud case and says former president provided his collateral in CASH (Daily Mail)
"[Billionaire Don Hankey] built fortune from Ford dealership to loans to car buyers with bad credit."
Sega to Sell Relic Entertainment, Will Cut 240 Employees Across UK, Europe (Variety)
“The cuts make Sega the latest video game company to downsize its staff in 2024.”
Retirement:
Retirement crisis looms as Americans struggle to save (CNN)
"Pension plans are nearly extinct...by 2022 only 15% of private sector workers had them."
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Blog Postings:
LundinOnChapter13.com Weekly Notable Bankruptcy Cases
Credit Slips blog
Harvard Law School Bankruptcy Roundtable
- Early Stage Capital Raising Trends in Chapter 11 Reorganizations
Mediatbankry
- A Rough Day At U.S. Supreme Court, During Oral Arguments, For Debtor’s Counsel (Truck Insurance v. Kaiser Gypsum)
- Bankruptcy Abuse Rarely Works . . . Because Of Gatekeepers—APPELLATE COURTS (Part 5)
Nelson Mullins Riley & Scarborough LLP - Red Zone Blog
- Bankruptcy and Baseball: An Uncertain Media Landscape
Patterson Belknap Bankruptcy Update blog
- Popularity of Subchapter V Bankruptcy Filings
- Seventh Circuit Addresses Scope of Section 546(e)
Rochelle's Daily Wire
- Evidence of Intent to ‘Hinder’ Wasn’t Sufficient to Deny Discharge, District Judge Says
- ERISA Claims Resolved in Bankruptcy Court, Not Through Arbitration
- Offensive Appellate Rights May Be Sold, but Maybe Not Defensive Appellate Rights
- A False Certificate of Payment (Temporarily) Barred a Landlord from Evicting
- For No Notice in an ‘Asset’ Case, the Entire Debt Is Not Discharged, the Ninth Circuit Says
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Open & Shut: Anchorage adds restaurants specializing in seafood, Indian and pho, Korean barbecue and American fare (Anchorage Daily News)
“Mrs. Fields: This cookie shop in the Dimond Center mall was set to close on Saturday…Two Seasons Meadery: This maker of honey wine closed this month after nearly five years in business…The Body Shop: The U.K.-based skin care and cosmetics store has closed in the Dimond Center mall.”
WeWork amends leases, expects to emerge from Chapter 11 with two active Phoenix locations (Phoenix Business Journal*)
"In January, WeWork confirmed it was staying at The Watermark in Tempe while it informed a bankruptcy judge of plans to reject its lease at Block 23 in downtown Phoenix."
Why It’s So Expensive to Live in Phoenix (New York Times*)
"Since 2010, the number of rental properties available for $1,000 or less in greater Phoenix has declined 86 percent, according to the Maricopa Association of Governments, a regional planning agency. The number of homes selling for $300,000 or less dropped 73 percent."
Sacramento Diocese's $500M Abuse Liability Prompts Ch. 11 (Law360)
"The Roman Catholic Bishop of Sacramento has filed for Chapter 11 in California court to address historical childhood sexual abuse liability that could reach as high as $500 million, saying the hundreds of claims could sap all the debtor's assets unless it sought the protection of bankruptcy."
See also:
Sacramento Diocese files for bankruptcy in wake of more than 250 abuse allegations (Catholic News Agency)
70-year-old California trucking company, freight brokerage closes abruptly (FreightWaves)
"A 70-year-old California-based less-than-truckload carrier ceased operations Thursday, leaving over 200 truck drivers, warehouse workers and office personnel without jobs, paychecks and paid time off . The formerly family-owned company, Tony’s Express, headquartered in Fontana, had 87 drivers and 42 power units at the time of its closure, according to the Federal Motor Carrier Safety Administration’s SAFER website."
Eiger Biopharmaceuticals Files for Chapter 11 Bankruptcy (Bloomberg)
"Eiger Biopharmaceuticals Inc., a company developing therapies for rare metabolic diseases, has filed for bankruptcy. Eiger, based in Palo Alto, California, filed Chapter 11 after its board of directors explored other financing options including searching for equity financing, according to court documents."
Window-Shading Co. View Inc. Hits Ch. 11 With $359M Debt (Law360)
"San Jose, California-based View designs and manufactures so-called smart glass panels that tint in response to sunlight and are installed in more than 100 million square feet of buildings, according to a declaration by interim Chief Financial Officer Thomas King."
Fruit Grower Cleared to Leave Ch. 11 With $43M Exit Loan (Law360)
"California stone fruit producer Prima Wawona is set to wind down its packing and distribution division, hand ownership of the reorganized company to creditors and leave bankruptcy after a Delaware bankruptcy judge agreed to approve its Chapter 11 plan Thursday."
EV maker slashes prices as it tries to avoid bankruptcy (KTVU)
"California-based electric vehicle startup Fisker slashed the prices of some of its vehicles as it fights to avoid bankruptcy after a potential deal with another automaker fell through."
Nurses protest Hazel Hawkins decision to oppose bankruptcy (KSBW)
"Nurses at Hazel Hawkins Memorial Hospital protested on Wednesday to oppose the hospital's decision to appeal a court ruling about bankruptcy. Nurses at the rally say the board's push to stay in bankruptcy is not based on actual financial need."
Big San Jose office building heads to foreclosure after loan default (Silicon Valley)
"A big office building in San Jose is nearing a foreclosure proceeding and seizure by its lender, according to Santa Clara County property documents. The office building at 10 West Tasman Drive in North San Jose has become delinquent on a loan from Copia Lending that totals $29 million, county real estate records show."
Los Angeles office skyscraper faces foreclosure sale (LA Times)
"Gas Company Tower, a prominent office skyscraper in downtown Los Angeles, faces foreclosure as landlords continue to struggle to keep tenants in their buildings."
Restaurant Properties Firm Contests IRS Citibank Account Summons (Bloomberg)
"A California real estate business challenged an IRS summons on its Citibank account for allegedly overreaching into the company’s privileged materials."
Fast food restaurants close following minimum wage hike (San Joaquin Valley Sun)
"Multiple fast food restaurants in the Central Valley have shut down after the $20 minimum wage law took effect this week. According to reports, a Fosters Freeze in Lemoore and five Mod Pizza locations in California have shuttered."
Struggling California homeowners urged to apply for mortgage relief as program nears end (North Bay Business Journal)
"A pandemic-era relief program for homeowners who are behind on their mortgages, property taxes and other payments is entering its final phase as funds dwindle, and authorities are issuing a last call for applicants who may be struggling."
Longtime Modesto company closing shop. It’s not the only McHenry Village business leaving (Modesto Bee*)
"Royal Robbins, a fixture in Modesto’s McHenry Village for decades, is closing for good at the end of June."
Global wine glut compounds headaches for struggling California vineyards (Yahoo)
"Wine, once the height of boomer culture and conspicuous consumption, has lost its cool among young, more frugal and health-conscious potential customers, many of whom prefer cannabis over Cabernet..."
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Energy costs main factor in closure of division at Butte company (Daily Montanan)
"High energy costs are forcing a company in Butte to phase out a division of its business, and a vice president said this week a minimal number of employees — paid more than $100,000 on average — could be affected."
Wallaroo’s files for Chapter 11 protection in Utah (Furniture Today)
"Furniture retailer Wallaroo’s Furniture & Mattresses, which has stores in Utah, Idaho, Montana and Washington, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court District of Utah."
Helena Family Dollar to close following low revenue reports, manager says (Independent Record*)
"The Helena Family Dollar store at 3073 N. Montana Ave. will close for good on April 18 sinceit is a part of the recently announced 1,000 store closures across the country by the chain."
Historic Rex restaurant in downtown Billings closes (Independent Record*)
"The historic Rex restaurant on Montana Avenue in downtown Billings shut down Wednesday,but owner Gene Burgad said he's selling the business to an employee and he expects it will reopen."
High demand, low funds pose challenges for Livingston shelter (Lewistown News-Argus)
"...It all came down to the generosity of one family," said Guyer, referencing a $40,000 gift from Livingston residents, Ruth and Walt Weissman. "The funds secured shelter operations through the end of the season. Without them, the feasibility of the Livingston warming centerwould have been uncertain."
White Cross Drugs, 60-year-old business, to close March 31 (Las Vegas Review-Journal)
"White Cross' 22 employees, some of whom have worked at the pharmacy for more than 30 years, are losing their jobs."
Innovative Area15 venue closing at the end of the month (Las Vegas Review Journal)
"Lost Spirits Distillery at Area15 achieved innovation, but ran in the red too long to survive."
Carson Burlington Coat Factory to close April 19; Jersey Mike’s Subs renovations underway (Nevada Appeal)
"Burlington Coat Factory in south Carson City is set to close doors April 19. ...the store’s 22 employees were given the option of transferring to the Reno or Sparks store or receiving a severance package."
States With The Most And Least Bankruptcies (Forbes)
"Nevada ranks fifth highest nationwide for business bankruptcies, amounting to 185 filings per 100,000 businesses. The Silver State ranks seventh highest for personal bankruptcies, with 209 filings per 100,000 residents."
Las Vegas clinic affiliated with Walgreens will stay open, transition to new owner(Las Vegas Review-Journal)
"VillageMD is exiting the Las Vegas market at the end of this month, but one of its six area locations will be keeping its doors open."
Las Vegas casino implosion site still waiting for new project (Las Vegas Review-Journal)
"Approaching 17 years later, the Strip property is still waiting for a new resort to take shape — and there’s no telling when that might happen."
Is the economy good or bad in Nevada? A look at cost of living, affordable housing (KNPR)
"What’s hurting is inflation combined with a very low rate of wage growth. The state reported in December that Nevada’s average hourly rate ranked 44th out of 50 states and the District of Columbia."
State funding for free school meals ending; applications due May 24 (Nevada Appeal)
"For the past four years, school meals in Nevada have been free to all students regardless of eligibility of free and reduced status. Unless there are any changes from the federal level, this comes to an end in two months, the Carson City School District announced."
America's hotspots for app-based work, mapped (Axios)
"Zoom in: D.C. aside, Florida (6.4% of the labor force), Nevada (6%) and Georgia (5.9%) have the highest share of app-based workers in their respective labor forces."
Investors suggest debt-saddled Bally’s sell its ownership in closed Tropicana (Nevada Indepedent)
"A Southern California investment firm that owns a small stake in Bally’s Corp. said the casino operator should sell its interest in the now-closed Tropicana Las Vegas because the company has “no ability to fund” any new development on the Strip."
Oregon’s 2nd-largest cider maker is closing its Portland taproom; see what’s replacing it (Oregonian)
“Portland Cider Co., Oregon’s second-largest producer of craft cider, is closing its Southeast Hawthorne Boulevard taproom and turning the lease over to La Familia Cider, a Salem-based ciderhouse that began in 2016.”
A Running List of Portland’s Restaurant, Food Cart, and Bar Closings - updated Mar 28 (Eater Portland)
“Petisco says goodbye, Piccone’s Corner has called it quits, and more closing news to know.”
McCormick & Schmick’s Restaurant in RiverPlace to Close Sunday (Willamette Week)
“The chain closed its other Portland location in 2009.”
New round of layoffs reported at New Relic (Portland Business Journal*)
“About five months after going private in a $6.5 billion private equity deal, software maker New Relic appears to be laying off staff.”
Seattle’s Bar and Restaurant Closures, March 2024 (Eater Seattle)
“An acclaimed diner, a beloved cookie shop, and a famed music venue are unfortunately on this list.”
Amazon lays off several hundred employees (Seattle Times)
“The job cuts will impact several hundred people from the sales, marketing and global services team for AWS, the company’s cloud computing division. The cuts will also affect a few hundred roles from the AWS physical stores technology team.”
Amazon to close Fresh grocery store on Pike Street on Capitol Hill (Seattle Times)
“...the closure was part of Amazon’s broader efforts to change its brick-and-mortar grocery business….The Capitol Hill store will shutter Sunday.”
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