 | | Featured Premium Content | | | | | Bloomberg Law: Ex-Bankruptcy Judge Got Combative in Secret Romance Questioning
Former Houston bankruptcy judge David R. Jones made his frustration clear while being deposed in a Justice Department civil probe related to his once-secret romance with a local attorney, often appearing combative or refusing to answer questions, Bloomberg Law reported. Jones’ words during a deposition last year will take center stage when a trial kicks off in April to determine whether Texas law firm Jackson Walker LLP will have to disgorge as much as $23 million for failing to disclose the romance between one of its former partners, Elizabeth Freeman, and Jones. | | | | |  | | Editor's Picks | | | | | City in Washington State Considers Bankruptcy Amid $22M Debt in Development Dispute
Leaders in Cle Elum, Wash., are considering the drastic step amid a long-running dispute with a homebuilder that has left the town deep in debt, the Seattle Times reported. In late November, an arbitrator ruled the city owes $22.2 million to City Heights Holdings, for repeatedly violating an agreement with the developer over its plans to build more than 950 homes in the wooded hills north of downtown. | | Satellite Operator Ligado Sues Inmarsat After Bankruptcy Filing
Bankrupt satellite communications company Ligado on Tuesday sued its contract partner Inmarsat over a 2007 spectrum leasing agreement, seeking to recoup up to $1.7 billion in payments under the agreement, Reuters reported. Ligado, which filed for chapter 11 protection on Sunday, said that the U.K.-based satellite telecommunications company violated the 2007 agreement meant to coordinate the two companies' use of in-demand radio frequencies for mobile communications and other commercial uses. | | Prospect Medical Explores Restructuring
Hospital operator Prospect Medical Holdings, a large tenant of the biggest hospital landlord in the U.S., is working with restructuring advisers to explore options to address its financial challenges, according to people familiar with the company, WSJ Pro Bankruptcy reported. The closely held hospital chain with facilities in states including California, Pennsylvania, Rhode Island and Connecticut has struggled financially for years and recently skipped rent payments owed to landlord Medical Properties Trust, a publicly traded healthcare real-estate investment trust. Prospect faces pressure from regulators in several states over its financial troubles and the deteriorating conditions at its facilities. MORE NEWS BELOW | | |  | | Upcoming Events | | | | | | | | | | | |  | | Daily Roundup | | | | | Northvolt Shareholders Agree to Continue Operations
Shareholders in Swedish electric car battery maker Northvolt agreed Wednesday at an extraordinary general meeting to allow the financially-strained company to continue operating and avoid liquidation, Agence France Presse reported. Northvolt filed for chapter 11 protection in the U.S. in late November to enable it to restructure its debt and reorganize its business. | | Florida Hospitality Company Files for Bankruptcy with over $10 Million in Debt
A Davie, FLA.-based serial franchisee for popular hospitality concepts across South Florida, including Shaquille O’Neal’s Big Chicken, has filed for bankruptcy, the South Florida Business Journal reported. DMD Ventures' co-founder and co-CEO Jack Flechner petitioned for chapter 11 reorganization on Jan. 6 on behalf of subsidiaries DMD Florida Development 2, LLC; DMD Florida Restaurant Group C, LLC; DMD Florida Restaurant Group D LLC. The filing lists debts of up to $50 million and assets of less than $1 million. (Subscription required.) | | Industry Groups Sue over Biden Ban on Medical Debt from Credit Reports
Two groups representing the credit reporting and credit union industries have filed a lawsuit challenging a new rule adopted by U.S. President Joe Biden's outgoing administration banning the inclusion of medical debt in American consumers' credit reports, Reuters reported. The Consumer Data Industry Association and Cornerstone Credit Union League filed the lawsuit in federal court in Sherman, Texas, on Tuesday, shortly after the U.S. Consumer Financial Protection Bureau finalized the regulation. | | Lucky, Forever 21 Operator Merges With JCPenney
Sparc Group, the operator of fashion brands including Lucky, Eddie Bauer, Aeropostale, Forever 21 and Brooks Brothers, has merged with JCPenney to form a new company called Catalyst Brands, according to a release yesterday, Bloomberg News reported. The joint venture was formed in an all-equity transaction between JCPenney and SPARC Group and its shareholders Simon Property Group, Brookfield Corp., Authentic Brands Group and SheIn Group Ltd., according to the release. Catalyst will be headed by former JCPenney Chief Executive Officer Marc Rosen. | | Gensler Says SEC Has More Work to Do on Crypto Regulation
Gary Gensler, the outgoing chair of the Securities and Exchange Commission, believes there’s more still to be done in regulating altcoins and intermediaries in the digital assets market, Bloomberg News reported. Everyday investors still don’t receive adequate disclosures or information from digital asset firms, Gensler said. Gensler announced in November his plans to step down as chairman of the agency on Jan. 20, when President-elect Donald Trump is set to be sworn into office. | | | |
