 | | Featured Premium Content | | | | | WSJ Pro Bankruptcy: Companies From Afar Tap Houston Bankruptcy Court Despite Minimal Local Ties
Companies are tapping Houston’s bankruptcy court by setting up minimal business ties, such as a coworking address or hastily formed entities, to capitalize on debtor-friendly laws, WSJ Pro Bankruptcy reported. In November, two Swedish companies—debt collector Intrum and electric-vehicle battery maker Northvolt—filed for bankruptcy in Houston, seeking to access the benefits of chapter 11. Both Intrum and Northvolt filed in the Texas court after consequential rulings upholding Houston bankruptcy cases filed by companies with no operations in the state. READ MORE | | | | |  | | Editor's Picks | | | | | Brazil's Gol Releases New Five-Year Plan Ahead of Chapter 11 Exit
Brazilian airline Gol released a revised five-year strategic plan yesterday as it prepares to exit chapter 11 bankruptcy proceedings, saying that the new forecasts would serve as a base for its reorganization, Reuters reported. Gol said in a securities filing that it expects to emerge from chapter 11 in May, and sees its net leverage "substantially improving" going forward as it rebuilds its network and returns to "normal levels" of core earnings by next year. READ MORE | | Northvolt Gets New Extension to Submit Documents to U.S. Court
Swedish battery maker Northvolt AB has been granted a second deadline extension to file schedules and statements with a bankruptcy court in the U.S., according to a ruling on Wednesday seen by Bloomberg News. The deadline was pushed back almost a month to Feb. 18, U.S. bankruptcy Judge Alfredo Perez said in the statement. In its application for an extension, Northvolt’s legal representatives wrote that the company and its advisors did not have enough time and effort “in the early days” of the chapter 11 process to prepare the documents because it was focused on soliciting proposals for new funding and divesting non-core businesses. READ MORE | | Spirit to Lay off 200 Employees, Expects to Emerge from Chapter 11 in Q1
Spirit Airlines is laying off around 200 employees as part of a broader effort to reduce expenses and align with its reduced operational capacity, CEO Ted Christie reportedly informed staff yesterday, the Wall Street Journal reported. The airline had previously indicated that job cuts might be necessary as it works toward its goal of trimming $80 million in annual costs. READ MORE
MORE NEWS BELOW | | |  | | Upcoming Events | | | | | ABI International Caribbean Insolvency SymposiumThe Westin Grand Cayman Seven Mile Beach Resort & Spa
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March 26-28 | Newport Beach, Calif. | | | | |  | | Daily Roundup | | | | | Time Is Running Out to Recover Up to $135 Billion in Pilfered Jobless Benefits
Cases of unemployment-insurance fraud related to COVID-era benefits will soon start running up against the five-year federal statute of limitations, the Wall Street Journal reported. As a result, most instances of pandemic unemployment fraud, which the Government Accountability Office estimates at $100 billion to $135 billion, will likely go unpunished. (Subscription required.) READ MORE | | State Regulators Fine Block Inc. $80 Million for Anti-Money Laundering Violations
Block, Inc. has agreed to pay a fine of $80 million to a group of 48 state financial regulators for violations of anti-money laundering laws through its mobile payment service, Cash App, Reuters reported. The multi-statement settlement would also see the fintech firm bring in an independent consultant to review its Bank Secrecy Act and anti-money laundering program, and report back to the states on any deficiencies. The company has also agreed to take corrective actions internally, according to the Conference of State Bank Supervisors, which announced the settlement. READ MORE | | Crypto Exchange BitMEX Fined $100 Million for Anti-Money-Laundering Failures
Cryptocurrency exchange BitMEX was fined $100 million for failing to maintain an adequate anti-money-laundering and know-your-customer program, the Wall Street Journal reported. The fine imposed on BitMEX on Wednesday was lower than the $417 million prosecutors argued for late last year. The company, which in July pleaded guilty to one count of violating the Bank Secrecy Act, was also sentenced to two years’ probation at a hearing Wednesday in federal court in Manhattan. (Subscription required.) READ MORE | | Preliminary-Round Brief Graders and Judges Needed for the Duberstein National Bankruptcy Moot Court Competition!
The Duberstein National Bankruptcy Moot Court Competition, now in its 33rd year and widely recognized as one of the nation’s preeminent moot court competitions, will be held in New York March 1-3, 2025. Fifty-three teams from law schools across the country will compete through written briefings and oral argument. Please find the fact pattern by clicking here. Volunteers are needed to grade briefs (sign up here) and to judge the preliminary rounds (sign up here) of the competition. Click here for more information and to volunteer. | | | | |
