 | | Featured Premium Content | | | | | WSJ Pro Bankruptcy: Johnson & Johnson Goes to Trial on Third Talc Bankruptcy Plan
Healthcare conglomerate Johnson & Johnson on Tuesday kicked off a bankruptcy-court trial on its third attempt to resolve one of the largest-ever mass tort lawsuits through a chapter 11 case, WSJ Pro Bankruptcy reported. Over the multiweek hearing, J&J will seek to overcome objections from several stakeholder groups to the proposed plan that offers roughly $10 billion over time — or $8 billion in present-day dollars — to tens of thousands of women who claimed the company’s talc products contained asbestos and caused ovarian and other gynecological cancers. READ MORE | | |  | | Editor's Picks | | | | | Scania Agrees to Buy Northvolt’s Heavy Industry Battery Business
Truck maker Scania agreed to buy Northvolt’s heavy industry business, as the battery maker continues to work through a restructuring process, the Wall Street Journal reported. The business — Northvolt Systems Industrial — was established in 2018 and currently employs around 300 people in a battery-systems prototyping facility located in Stockholm, Sweden, and Northvolt’s production facility in Gdansk, Poland. It produces batteries for customers in industries including material handling, construction equipment, mining, agriculture, and municipal services. Northvolt is currently working through a chapter 11 protection process as it seeks to restructure its debt after production problems, competition from China and funding shortfalls created a liquidity squeeze. READ MORE | | Collapsed Crypto Exchange FTX Begins Repaying Billions to Customers
The FTX estate began a creditor repayment program that could total more than $16 billion, releasing $1.2 billion to smaller claim holders on Tuesday. It’s the latest step in the collapsed crypto exchange’s efforts to help former customers recoup funds, Decrypt.co reported. The bankruptcy estate's initial distribution targeted "Convenience Class" claims under $50,000, reaching the majority of affected users. The estate's managers will be sending payments in stages to ensure proper verification and orderly distribution, according to FTX. READ MORE | | Saks Warns Suppliers They Will Have to Wait for Payments
The marriage of Saks Fifth Avenue and Neiman Marcus was supposed to create a luxury powerhouse. Instead the newlywed retailers warned on Friday that it will take time to pay off their unpaid bills, the Wall Street Journal reported. For more than a year, Saks has been slow to pay for some of its merchandise, prompting complaints from some vendors and others to hold back on shipments. Most retailers tend to pay their suppliers within 60 days, and it is unusual for a large retailer like Saks to withhold funds for many months. In a memo sent to suppliers on Valentine’s Day, Saks sought to reassure the brands that stock its stores about its backlog of bills. The company said it would pay for new orders within 90 days of receipt and that all past-due payments would be paid in 12 installments starting in July. (Subscription required.) READ MORE
MORE NEWS BELOW | | |  | | Upcoming Events | | | | | 33rd Annual Duberstein Bankruptcy Moot Court Awards Gala New York Marriott Downtown
March 3 | New York | | ABI Annual Spring Meeting Marriott Marquis
April 24-26 | Washington, D.C. | | | | |  | | Daily Roundup | | | | | | | The Cryptocurrency Scam That Turned a Small Town Against Itself
It was July 2023, and Jim Tucker was hosting a meeting of the board of Heartland Tri-State Bank, a community-owned business in a small Kansas town called Elkhart, the New York Times reported. They were gathering to discuss what seemed, on its face, an epic betrayal. Over the past few weeks, the bank’s longtime president, a popular local businessman named Shan Hanes, had ordered a series of unexplained wire transfers that drained tens of millions of dollars from the bank. Hanes converted the funds into cryptocurrencies. Then the money vanished. READ MORE | | Homebuilder Confidence Falls to Lowest Level in Five Months Amid Tariff Concerns, High Mortgage Rates
Homebuilders are feeling less optimistic about the housing market as they navigate concerns over tariffs, elevated mortgage rates, and high housing costs, YahooFinance.com reported. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index was 42 in February, a five-point drop from January and the lowest level in five months. Economists were expecting a reading of 46. READ MORE | | Trump Signals 25 Percent Tariffs Coming on Cars, Semiconductors and Pharmaceuticals
President Trump on Tuesday indicated he would unveil tariffs on imports of automobiles, semiconductors and pharmaceuticals in early April, starting at 25 percent, The Hill reported. Trump told reporters at Mar-a-Lago that he would likely announce the tariffs on April 2, and he indicated the duty on auto imports would be “in the neighborhood of 25 percent.” Asked about tariffs on semiconductors and pharmaceuticals, Trump said it would be “25 percent and higher, and it’ll go very substantially higher over the course of a year." READ MORE | | Applications Due on Feb. 24 for ABI’s Diversity Mentoring Program
Applications are now being accepted for ABI’s Diversity Mentoring Program, hosted by our Diversity, Equity and Inclusion Committee to connect active or recently graduated business and law students with experienced insolvency professionals and ABI members who are offering professional development guidance. Throughout the program, mentors and mentees will meet bi-monthly to discuss a variety of topics with resources from ABI and members of the reorganization community, including judges, trustees, attorneys and accountants. For more information about the Diversity Mentorship Program and to apply to be a mentee for 2025-26, please visit ABI’s Diversity and Inclusion website at diversity.abi.org; applications are due February 24. | | | | |
