Just after 5:00 p.m. Central Time on February 23, 2021, Belk, Inc. and its affiliates filed chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas, along with a proposed “prepackaged” plan of reorganization. Before midnight, the US Trustee objected to Belk’s plan, and, by 8:00 a.m. the next day, the parties were in court to decide plan confirmation. Two hours later, Bankruptcy Judge Marvin Isgur confirmed the plan, and it…
On February 24, 2021, Stream TV Networks, Inc., a Philadelphia-based media technology company founded in 2009 to develop and commercialize technology that would enable viewers to watch 3D content without 3D glasses, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case 21-10433). The company reports $100 million to $500 million in both assets and liabilities. A link to the Stream TV Networks,…
Earlier this month, three student loan borrowers filed an involuntary Chapter 11 petition under 11 U.S.C. § 303(b)(1) for Navient Solutions LLC, a student loan servicer. Three or more entities who each hold a claim against an involuntary debtor can file an involuntary bankruptcy petition on that debtor’s behalf if each claim is neither a contingent liability nor the subject of a bona fide dispute as to liability or amount. The borrowers alleged that Navient…
On February 8, 2021, three student loan borrowers filed an involuntary petition against Navient Solutions LLC in New York bankruptcy court seeking to force Navient into bankruptcy.[1] Navient Solutions is the loan servicing arm of Navient Corporation, a student loan originator which manages approximately $300 billion in student loan debt for more than 12 million borrowers. Involuntary petitions like the one instituted by the borrowers here are somewhat rare, at least in the…
Continuing the trend of discharging student loan debt in the Eighth Circuit, Judge Shon Hastings, sitting special designation for the Bankruptcy Court for the District of Nebraska, discharged $89,525.00 of student loan debt of the Debtor, Ms. Mudd noting that Debtor met her “rigorous” burden of establishing undue hardship by a preponderance of the evidence. Analyzing the debtor’s undue hardship claim, the Court examined the unique facts and circumstances of the case and particularly assessed:…
Global Head of Financial Restructuring and Insolvency Howard Seife is conference chair of INSOL International’s Latin America Virtual Seminar, which will cover the latest news and developments in cross-border restructurings in Latin America.
The seminar will run over three different dates—March 4, March 11 and March 18.
INSOL International is a global federation of lawyer and accountant national associations who focus on turnaround and insolvency. With over 40 member associations with over 9,000 professionals,…
On February 23, 2021, 96 Wythe Acquisition LLC, whose principal property is the Williamsburg Hotel in Brooklyn, N.Y., filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York (Case 21-22108). The company reports $50 million and $100 million in both assets and liabilities. A link to the 96 Wythe Acquisition LLC chapter 11 petition can be found here.
Cole Schotz does…
On February 22, 2021, Evergreen Gardens Mezz LLC, a Brooklyn-based real estate entity, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York (Case 21-10335). The company reports $50 million and $100 million in both assets and liabilities. A link to the Evergreen Gardens Mezz LLC chapter 11 petition can be found here.
Cole Schotz does not represent the Debtor in…
As Texas recovers from its winter energy crisis, hard hit consumers and retail power providers may be facing potential bankruptcies caused by the extreme price fluctuations experienced during the cold. The New York Times describes the plight faced by consumers who may face energy bills in the thousands. And retail power companies that supplied power to consumers may also be in trouble due to being forced to buy energy on the spot market at inflated…
In a January 2021 decision issued in the re-opened United Refining Company1 bankruptcy case, Judge Lopez of the Southern District of Texas Bankruptcy Court addressed when a tort claim is deemed to arise for purposes of determining whether it was discharged. In particular, the court had to determine whether an asbestos-related claim arose at the time of exposure (in other words, the time at which the damaging act occurred) or at the time when…