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
Lender Liability Is Not Dead: A Recent Case Presents a Warning for Lenders (and a Roadmap for Borrowers)
March 29, 2022 (agg.com)
A recent decision from the U.S. Bankruptcy Court for the Northern District of Texas illustrates that aggressive lender action can lead to “lender liability” in a loan workout.
Industry News
Archdiocese of SF bankruptcy mediation set
March 27, 2022 (Yahoo news)
The long-running bankruptcy reorganization filed by the Archdiocese of Santa Fe to deal with clergy abuse claims has reached a pivotal stage, with all parties' sides entering what could be a final mediation session this week.
Russian stock market, crushed by war, opens with big limits
March 24, 2022 (SFGate)
The Russian stock market opened Thursday for limited trading under heavy restrictions for the first time since Moscow invaded Ukraine, coming almost a month after prices plunged and the market was shut down as a way to insulate the economy.
GenCanna Bankruptcy Brings Multiple Actions Against Other Companies
March 24, 2022 (TheStreet)
In October 2019, several contractors claimed that GenCanna, a hemp processor and CBD product manufacturer based in Winchester, Kentucky, owed them $13 million. Creditors filed claims against GenCanna and multiple lawsuits followed, which led to the company's bankruptcy filing.
Harm Reduction Therapeutics to Receive Additional Funding for the Development of its Over-the-Counter Opioid Overdose Reversal Medication from Purdue Pharma after Bankruptcy Court Approval
March 23, 2022 (Yahoo! Finance)
Harm Reduction Therapeutics (HRT) will receive up to $11 million of additional financial support from Purdue Pharma L.P. to advance its development of a low-cost, over-the-counter (OTC) naloxone nasal spray in the United States. Naloxone is an opioid antagonist rescue medication used to reverse the effects of a life-threatening opioid overdose.
Jekyll & Hyde, Manhattan Eatery for Tourists, Files Bankruptcy
March 23, 2022 (Bloomberg)
Jekyll & Hyde Club, a New York restaurant popular with tourists for its horror-themed food and shows, filed for bankruptcy.
Fort Myers woman gets five years probation in bankruptcy fraud case involving hotel operations
March 22, 2022 (Yahoo news)
A Fort Myers woman was sentenced to five years probation in a case involving bankruptcy fraud and embezzlement. Heather Lynn Pratt, 32, was sentenced Tuesday in the U.S. District Court for the Northern District of West Virginia after she pleaded guilty in April 2021 to one count of “fraudulent concealment of bankruptcy assets.”
Art Van bankruptcy lawsuit seeks to claw back more than $105 million from family
March 22, 2022 (Crain's Detroit Business)
A trustee for the federal bankruptcy court is attempting to claw back more than $105 million from the family behind shuttered metro Detroit furniture empire Art Van Furniture — and the estate of late founder Art Van Elslander.
Fresh off dramatic majority shareholder exit, Firefly could be headed for a SPAC
March 22, 2022 (TechCrunch)
Firefly Aerospace’s roller coaster ride could soon send the rocket startup to the public market via a merger with a special purpose acquisition company, a recent filing with the FCC suggests.
Bankruptcy Court Backs $141 Million Sale of LA Mega-Mansion
March 21, 2022 (Bloomberg)
A bankruptcy court judge approved the sale of a Los Angeles mega-mansion for $141 million, after objections that the price wasn’t high enough to compensate creditors.
