In re Boxed, Inc., No. 23-10397 (Bankr. D. Del.)
- New York based e-commerce and software company, Boxed, Inc., filed for bankruptcy after failing to generate needed capital in a 2021 SPAC.
- Boxed, Inc. tried to sell its e-commerce retail business
Herrick Restructuring Review
The Herrick Restructuring Review, published by Herrick, Feinstein LLP, focuses on developments and analysis in bankruptcy and restructuring law. It covers topics such as Chapter 11 filings, asset sales under Section 363, creditor rights, litigation involving bankruptcy claims, and the treatment of financial instruments like make-whole payments in insolvency contexts. The blog also addresses mass tort bankruptcy cases, corporate restructuring strategies, and court decisions impacting restructuring practice. It provides updates on significant bankruptcy cases and procedural issues affecting debtors, creditors, and other stakeholders in financial distress situations.
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Latest from Herrick Restructuring Review
Considering the Allowability of “Make-Whole Payments” in Bankruptcy
Ultra Petroleum Corporation et al. v. Ad Hoc Committee of OpCo Unsecured Creditors, No. 21-20008 (5th Cir. 2022)
- Make-whole provisions—common provisions in credit agreements providing for lump sum payments to compensate a lender for unpaid interest if a borrower prepays—have
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Third Circuit Court of Appeals Reverses Bankruptcy Court’s Decision and Dismisses the Chapter 11 Case filed by J&J entity LTL
Herrick’s Work on Behalf of Well-Renowned Bankruptcy Professors Supported Dismissal
In October 2021, LTL Management LLC (“LTL”), an entity created by Johnson & Johnson (“J&J”) to hold its liabilities to cancer victims exposed to talc in J&J’s products, filed for…
Sale Procedures for 363 Sale of Compute North Partially Approved With Timing of Sale to Be Addressed at Supplemental Hearing
In re Compute North Holdings, Inc., No. 22-90273 (Bankr. S.D. Tex.)
- The bankruptcy court approved a portion of proposed bid procedures for the sale of Compute North.
- Debtors sought an expedited sale timeline, with bids due by October 27, 2022,
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Cryptocurrency Mining Data Center Files for Chapter 11 Amid Crypto-Recession
In re Compute North Holdings, Inc., No. 22-90273 (Bankr. S.D. Tex.)
- Compute North Holdings, Inc., a large data center with a focus on cryptocurrency mining, files for Chapter 11 protection amidst an atrocious business environment for all things crypto.
- Compute
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Bankrupt Cryptocurrency Debtor Seeks Sale of Stablecoins
Bankrupt cryptocurrency lender Celsius Network LLC recently sought permission to sell some of its “stablecoin” for U.S. dollars to continue operations through its Chapter 11. Celsius requires court approval for the sale pursuant to an earlier order requiring court authorization…
Revlon Lenders Must Return $500 Million Mistaken Wire Transfer to Citibank, N.A.
On September 8, 2022, the Second Circuit held that lenders to Revlon, Inc., a global cosmetics company, must return approximately $500 million to Citibank N.A., which Citibank had inadvertently paid on Revlon’s behalf. The decision vacated a lower court’s ruling…
There’s No Insolvency Exception to a Shareholder Vote Requirement to Transfer a Corporation’s Assets in Delaware
In a recent Delaware Supreme Court decision, the Court held that there is no “insolvency exception” to the requirement in Section 271 of the DGCL that a transfer of all or substantially all of a corporation’s assets foreclosure transfer be…
Steven Smith Discusses the recent Supreme Court Decision, Siegel v. Fitzgerald, with the ABF Journal
By Steven Smith
Restructuring and Finance Litigation partner Steven B. Smith recently met with Phil Neuffer, the Managing Editor of ABF Journal, to discuss the recent United States Supreme Court decision Siegel v. Fitzgerald, No. 21-441, in which the Court unanimously held that…
Landmark Delaware Bankruptcy Court Ruling that Debtors Did Not Have to Pay Make-Whole Premium Was in Error, First Lien Lenders’ Argue on Appeal
Last November, Judge John Dorsey of the Delaware Bankruptcy Court held in the Mallinckrodt chapter 11 case that the debtors did not have to pay a $94 million “make-whole” premium that was provided for in an indenture governing first lien…