AGG’s Restructuring Roundup newsletter is a monthly update of legal issues and news affecting or related to commercial litigation and bankruptcy. The newsletter is a curation of published articles and news, and contains original content developed by AGG’s Bankruptcy, Creditors’ Rights & Financial Restructuring attorneys.
AGG Bankruptcy News & Insights
Do You Get To Keep Your Roth IRA Even if You File Bankruptcy? In Georgia, Yes, Says the Eleventh Circuit
January 27, 2022 (Arnall Golden Gregory LLP)
In an issue of first impression, the Eleventh Circuit Court of Appeals has ruled that a Roth IRA is not property of a bankruptcy estate in Georgia. Hoffman v. Signature Bank of Georgia, Case No. 20-12823 (11th Cir. Jan. 24, 2022). This means that a bankruptcy trustee cannot get to the Roth IRA for the benefit of creditors. Although this creates a possible barrier for creditors and bankruptcy trustees attempting to liquidate assets held in retirement accounts, it does not necessarily mean that individual retirement accounts are always excluded from administration in an individual bankruptcy case.
Industry News
Aeromexico to defend restructuring in New York bankruptcy court
January 27, 2022 (Yahoo! Finance)
Grupo Aeromexico has reached a $40-million deal with a group of unsecured creditors to withdraw their objection to the airline's bankruptcy restructuring plan, Aeromexico's lead counsel said on Thursday.
China Weighs Breaking Up Evergrande to Contain Property Crisis
January 27, 2022 (Yahoo! Finance)
Chinese authorities are considering a proposal to dismantle China Evergrande Group by selling the bulk of its assets, according to people familiar with the matter.
Bankruptcy experts join call to dismiss J&J talc Ch. 11
January 26, 2022 (Reuters)
A group of bankruptcy law professors are looking to weigh in on Johnson & Johnson’s use of the bankruptcy system to settle lawsuits alleging that its talc products cause cancer, calling the strategy a "serious abuse."
From BlackRock to Vanguard, Managers Move Before Fed Acts
January 26, 2022 (Yahoo! Finance)
While the financial world waits for the Federal Reserve’s announcement on monetary policy Wednesday afternoon in Washington, some of the biggest bond-fund managers have already made their moves.
Puerto Rico’s Bankruptcy Is Ending. What Comes Next?: QuickTake
January 26, 2022 (The Washington Post)
The biggest bankruptcy ever in the municipal debt market is on a path to resolution, now that a U.S. judge has approved a restructuring plan for Puerto Rico. Still, there are plenty more challenges ahead for investors, the island’s still-bankrupt electric utility and its beleaguered residents. Even with a sharp reduction in debt payments, the key issue for Puerto Rico is whether it can turn around an economy that’s been shrinking for years amid a steady loss of population.
How a Hong Kong bankruptcy sent a Miami-bound cruise ship—with hundreds of passengers—on the run from the law
January 24, 2022 (Fortune)
On Thursday, U.S. District Court Judge Darrin Gayles in the Southern District of Florida ordered that the Crystal Symphony be seized upon its arrival in Miami due to unpaid fuel bills of $4.6 million. To escape the looming impoundment, the ship, carrying at least 300 people, changed course to Bimini in the Bahamas.
