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.
Industry News
Renowned Investors Entangled in Legal Battle Over FTX Bankruptcy Claims
March 18, 2024 (Trading View)
Lemma Technologies, a Panamanian firm controlled by an embattled South Korean trader, has backed down from a bankruptcy deal over an FTX distressed asset. According to reports, Lemma refused to continue with the transaction following the skyrocketing value of the asset it acquired after FTX failed.
Hertz’s electric vehicle and CEO about-face is the latest twist after a COVID bankruptcy filing and a deep relationship with Carl Icahn
March 16, 2024 (MSN.com)
It seemed like a good idea at the time. Now we know better. Hertz, reeling from a bankruptcy and the pandemic, announced plans to buy 100,000 Teslas in late 2021. The splashy move certainly helped Elon Musk’s electric-vehicle maker, which saw its market cap surge past $1 trillion for the first time.
Celsius creditors allege 30% less compensation than promised during bankruptcy
March 15, 2024 (Trading View)
A group of creditors of bankrupt crypto lending firm Celsius, which is facing over $3 billion in claims, is complaining of an allegedly 30% or greater reduction of payments versus what they were promised under the original bankruptcy plan. The reduction is allegedly caused by a rule where only 100 Celsius corporate accounts can receive distributions through the Coinbase exchange.
EV Startup Fisker Plummets On Report Tesla Rival Mulling Bankruptcy
March 14, 2024 (Yahoo! Sports)
Fisker (FSR), responding to reports that it's moving toward a bankruptcy filing, said late Thursday that it's in "strategic" talks with a big automaker. FSR stock soared early Friday after losing more than half of its value Thursday.
The world’s largest global industrial supplier of wood pellets just filed for bankruptcy with debts over $2.6 billion
March 13, 2024 (Fortune)
The largest global industrial wood pellet supplier filed for Chapter 11 bankruptcy protection on Wednesday, announcing its intention to cut about $1 billion of debt by restructuring agreements with creditors, including those who have invested heavily in new facilities.
Bayer Weighs ‘Texas Two-Step’ Bankruptcy Filing Over Roundup
March 13, 2024 (Bloomberg)
Bayer AG is weighing whether to use a controversial legal maneuver known as the Texas Two-Step bankruptcy to try to resolve tens of thousands of US lawsuits claiming its Roundup weedkiller causes cancer, according to people familiar with its thinking.
Judge Declines to Dismiss Sorrento Therapeutics Bankruptcy Case
March 11, 2024 (The Wall Street Journal)
A Texas bankruptcy judge denied the Justice Department’s motion seeking to dismiss or transfer the Sorrento Therapeutics chapter 11 case, ruling a bank account and mailbox the company’s lawyers established justified its bankruptcy petition in Houston days later.
The Body Shop shuts down in the U.S. after filing for bankruptcy
March 11, 2024 (Yahoo! Finance)
The Body Shop is shutting down its U.S. operations after filing for bankruptcy. The U.K.-based chain filed for Chapter 7 liquidation in New York last week, according to a court filing.
