 | | Featured Premium Content | | | | | WSJ Pro Bankruptcy: Texas Firm Sued for J.C. Penney Bankruptcy Fees Over Undisclosed Romance
The administrators for J.C. Penney’s pandemic-era chapter 11 case sued its former law firm Jackson Walker on Tuesday for not disclosing the romantic relationship between a former bankruptcy partner and the presiding judge, WSJ Pro Bankruptcy reported. All legal fees paid to Jackson Walker after J.C. Penney’s 2020 bankruptcy filing should be returned because the firm violated its ethical duties to its client to disclose its former partner’s romantic relationship with ex-Judge David R. Jones, according to Tuesday’s complaint. It marks the first such private lawsuit by a Jackson Walker client over the firm’s failure to disclose what it knew about the judge. READ MORE | | | | | SPONSORED CONTENTPrivate Credit and BSL: Peaceful CoexistenceAs private credit continues to expand, it maintains a relatively peaceful coexistence with broadly syndicated loans. SRS Acquiom offers insights into the current state of the lending landscape, as anchored by two viable sources of financing. GET THE INSIGHTS | | |  | | Editor's Picks | | | | | Byju’s Executive, Business Partner Found in Contempt of U.S. Court
A top executive of troubled Indian tech firm Byju’s and an ally of the company’s founder were found in contempt of court and now face financial sanctions of $25,000 a day for refusing to comply with a U.S. court order, a judge ruled yesterday. Byju’s manager Vinay Ravindra and company ally Rajendran Vellapalath failed to answer questions about their roles in stripping software, cash and other assets from Byju’s U.S. businesses that are under court supervision, a federal judge in Delaware found. READ MORE | | Small Washington State Town Edges Closer to Bankruptcy
The small town of Cle Elum, Wash., is one step closer to declaring bankruptcy after a special meeting and vote by its city council Tuesday night concerning how to manage a recent judgment against them for $22.2 million for failing to make good on land development deal they made with Issaquah-based home building company, City Heights Holdings (CHH), more than a decade ago, MyNorthwest.com reported. In a 5 to 2 vote, the city council approved a resolution that provides the city with the option to file for Chapter 9 bankruptcy at any time. READ MORE | | Pimco Warns LA City Utility Faces Steep Liabilities After Fires
The Los Angeles Department of Water and Power is facing the risk of significant financial liability for damages in the utility’s response to the Palisades Fire, according to Pacific Investment Management Co., Bloomberg News reported. “Given the sheer size of insured and uninsured losses, managing wildfire claims could have a material impact on the leverage profile of LADWP, and the risk premium investors require to hold roughly $19 billion in outstanding debt,” the asset manager said in a report to clients. READ MORE
MORE NEWS BELOW | | |  | | Upcoming Events | | | | | Alexander L. Paskay Memorial Bankruptcy Seminar Tampa Marriott Water Street
February 27-28 | Tampa, Fla. | | Amending Bankruptcy Rule 9031: Recent Efforts to Expand Bankruptcy Judges’ Toolboxes abiLIVE Webinar
March 3 | | | | |  | | Daily Roundup | | | | | Creditor Seeks Involuntary Chapter 7 Bankruptcy for Lancaster-Based ATM Company
With companies controlled by Daryl Heller now allegedly owing more than $200 million to a variety of creditors, one lender is trying to settle a $28.5 million debt by triggering a bankruptcy liquidation, LancasterOnline.com reported. Florida-based Silverview Credit Partners filed a chapter 7 involuntary bankruptcy petition against Heller’s Blackford ATM Ventures last week in Delaware bankruptcy court. Judge Mary A. Walrath will hold a hearing at 2 p.m. today to consider whether to appoint a trustee to oversee the case. READ MORE | | Fed Holds Rates Steady, Pausing for Further Inflation Progress
Federal Reserve officials held interest rates steady, pausing to assess the inflation outlook following a string of rate reductions last year, Bloomberg News reported. The Federal Open Market Committee voted unanimously yesterday to keep the federal funds rate in a range of 4.25%-4.5%, after lowering rates by a full percentage point in the final months of 2024. READ MORE | | CFPB Finds Servicemembers Pay More in Auto Lending Market
The Consumer Financial Protection Bureau (CFPB) published a report yesterday showing that U.S. servicemembers pay higher costs and face greater financial risks than civilian borrowers when taking out credit to buy a car, according to a CFPB press release. The report analyzes more than 20 million auto loans originated between 2018 and 2022, and finds that servicemembers typically have larger loans, make smaller down payments, and ultimately shoulder higher monthly costs. READ MORE | | Preliminary-Round 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 judge the preliminary rounds (sign up here) of the competition. Click here for more information and to volunteer. | | | | |
