Real Bankruptcy Intel

Your source for Restructuring, Bankruptcy and Insolvency insights

Latest from Real Bankruptcy Intel

What We’re Reading This Week [June 17, 2021]

By Jamie R. Netznik, Sean T. Scott & Aaron Gavant

June 17, 2021

The Wall Street Journal discusses the $11.2 trillion in outstanding corporate debt, and considers whether companies that took advantage of “cheap money” this past year merely delayed a reckoning coming in the next economic downturn. [WSJ; June 14, 2021] CNN Business covers the bankruptcy filing of Washington Prime Group, an owner of more than 100 malls across the United States. The company cited temporary closures and relaxation of rent payments from some tenants as the…

Real Bankruptcy Intel

What We’re Reading This Week [June 9, 2021]

By Youmi Kim, Sean T. Scott & Aaron Gavant

June 9, 2021

Business Insider reports that the U.S. economy added 559,000 new jobs in May, a rate of job creation that, if maintained, will take another 15 months for U.S. jobs to surpass the pre-pandemic peak. While labor shortages have emerged as an issue, economists predict that such shortages are likely to fade away as new school year starts, unemployment benefits expire, and vaccination efforts continue. [Business Insider; June 4, 2021] CNBC reports that the National Rifle…

Real Bankruptcy Intel

What We’re Reading This Week [June 1, 2021]

By Youmi Kim, Sean T. Scott & Aaron Gavant

June 1, 2021

Reuters reports that eleven U.S. airlines collectively issued $12.84 billion in cash refunds to customers in 2020 for flights canceled during the pandemic. The cash refunds come on top of billions of dollars of travel credits that are now being used at a rapid pace. [Reuters; May 28, 2021] The New York Times reports that the New York bankruptcy judge overseeing Purdue Pharma’s Chapter 11 cases provisionally approved the OxyContin manufacturer’s disclosure statement, subject to…

Real Bankruptcy Intel

What We’re Reading This Week [May 24, 2021]

By Lisa A. Holl Chang, Sean T. Scott & Aaron Gavant

May 24, 2021

Bloomberg reports that shareholders in Latam Airlines Group SA’s chapter 11 case have organized into an ad hoc committee and hired the same counsel that represented equity holders in Hertz. Shareholders see the potential for the Latam bankruptcy to produce a recovery to common equity; similar to Hertz, Latam is a travel company, was in good financial health before the COVID pandemic, and is arguably in position for a fast recovery after the pandemic. [Bloomberg;…

Real Bankruptcy Intel

What We’re Reading This Week [May 17, 2021]

By Lisa A. Holl Chang, Sean T. Scott & Aaron Gavant

May 17, 2021

The Wall Street Journal reports on the winning bid in the 36-hour auction for control of Hertz in anticipation of its emergence from bankruptcy later this summer. The winning bidders, a group of co-investors led by Knighthead Capital Management and Certares Management, will buy the bulk of Hertz’s equity upon emergence for $2.8 billion. Assuming Hertz’s reorganization plan is confirmed next month as expected, that plan will return more than $7 per share in value…

Real Bankruptcy Intel

NRA Bankruptcy Dismissed for Lack of Good Faith in Filing

By Youmi Kim, Sean T. Scott & Aaron Gavant

May 14, 2021

The Bankruptcy Court for the Northern District of Texas dismissed the National Rifle Association’s (“NRA”) bankruptcy case on May 11, finding that the case was not filed in good faith. In his opinion, Judge Harlin Hale found that there was cause for dismissal because the case was filed “to gain unfair litigation advantage and … to avoid a state regulatory scheme,” neither of which he considered to be a purpose intended or sanctioned by the…

Real Bankruptcy Intel

What We’re Reading This Week [May 12, 2021]

By Tyler R. Ferguson, Sean T. Scott & Aaron Gavant

May 12, 2021

The Wall Street Journal reports that hedge-fund founder, Dan Kamensky, was sentenced to six months in prison for bankruptcy fraud in connection with his attempt to quash a competing bid for shares of Neiman Marcus subsidiary MyTheresa during Neiman’s bankruptcy case. As a member of the official unsecured creditors’ committee, Kamensky had a fiduciary obligation to serve the interests of all creditors, not just his own firm’s financial interests. Kamensky, who founded Marble Ridge Capital…

Real Bankruptcy Intel

What We’re Reading This Week [May 3, 2021]

By Samuel R. Rabuck, Sean T. Scott & Aaron Gavant

May 3, 2021

Bloomberg reported that USA Gymnastics asked the Southern District of Indiana Bankruptcy Court to enforce the automatic stay and enjoin litigation filed by four plaintiffs seeking to hold the US Olympic & Paralympic Committee (USOPC) liable for sexual abuse committed by convicted child sexual predator Larry Nassar. USA Gymnastics said allowing the litigation to proceed would be disruptive to its chapter 11 proceedings and its settlement talks with survivors. In its motion to enforce the…

Real Bankruptcy Intel

Too Little Too Late? After Much Debate, SBA Allows Debtors to Access PPP Loans – But Only on a Limited Basis

By Kyle J. Tum Suden, Aaron Gavant & Sean T. Scott

May 3, 2021

After more than one year since the Paycheck Protection Program, or PPP, was established pursuant to the US Cares Act in March 2020, the Small Business Administration (“SBA”) has recently reversed its policy that prohibited companies in bankruptcy from applying for PPP funding due to their status as debtors in bankruptcy. Specifically, on April 6, 2021, SBA released new guidance as part of its eighth version of Frequently Asked Questions for Borrowers and Lenders Participating in the…

Real Bankruptcy Intel

Approaching Student Loan Relief Piecemeal: The Biden Administration Extends CARES Relief to Defaulted FFELP Student Loan Borrowers; Weighs Options for Further Measures

By Danielle A. Corn, Tori K. Shinohara, Sean T. Scott & Aaron Gavant

April 29, 2021

In a March 30, 2021 announcement, the Biden administration announced that it would be extending relief to approximately 1.14 million student loan borrowers who previously were not covered under the CARES Act relief enacted last year. These are borrowers who have defaulted on loans issued pursuant to the Federal Family Education Loan Program (“FFELP”). Specifically, under the measure, borrowers who have defaulted on FFELP loans will not face further penalties (and will see penalties already…

Real Bankruptcy Intel

Your source for Restructuring, Bankruptcy and Insolvency insights

Blog Authors

What We’re Reading This Week [June 17, 2021]

What We’re Reading This Week [June 9, 2021]

What We’re Reading This Week [June 1, 2021]

What We’re Reading This Week [May 24, 2021]

What We’re Reading This Week [May 17, 2021]

NRA Bankruptcy Dismissed for Lack of Good Faith in Filing

What We’re Reading This Week [May 12, 2021]

What We’re Reading This Week [May 3, 2021]

Too Little Too Late? After Much Debate, SBA Allows Debtors to Access PPP Loans – But Only on a Limited Basis

Approaching Student Loan Relief Piecemeal: The Biden Administration Extends CARES Relief to Defaulted FFELP Student Loan Borrowers; Weighs Options for Further Measures

Stay Connected

Company

Products

Support

New to the Network