 | | Featured Premium Content | | | | | February Commercial Chapter 11s Decrease 42 Percent
Commercial chapter 11 bankruptcy filings decreased 42 percent in February 2025, with the 481 filings declining from the 826 filings in February 2024, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data. Last February’s commercial chapter 11 total was elevated by the related filings of two sizeable commercial chapter 11 proceedings. Additionally, there was one less business day in February 2025 compared to last year due to the leap year taking place in 2024. Total February commercial filings decreased 16 percent to 2,152 from the 2,576 commercial filings in February 2024. Small business filings, captured as subchapter V elections within chapter 11, declined 12 percent in February 2025 to 176, down from 201 the previous year. READ MORE | | |  | | Editor's Picks | | | | | Prison Health Company Wins Approval for $75 Million Bankruptcy Deal
A U.S. bankruptcy judge in Texas on Monday approved a $75 million bankruptcy plan by an affiliate of prison healthcare company YesCare, after a compromise that allowed prisoners and their families to walk away from the deal and instead pursue lawsuits alleging that the company provided poor medical care, Reuters reported. U.S. Bankruptcy Judge Christopher Lopez approved the settlement, half of which will be used to pay prisoners’ personal injury and wrongful death claims, at a bankruptcy court hearing in Houston, saying that the case had seen a remarkable turnaround after a contentious start two years ago. READ MORE | | Judge Says Byju’s Official Broke Duty to Lenders by Hiding Cash
A top official of Indian tech firm Byju’s violated his fiduciary duty to lenders by wrongly hiding $533 million from them, according to a U.S. court ruling on Friday, a win for creditors vying to collect on a defaulted $1.2 billion loan, Bloomberg News reported. Byju’s fraudulently transferred at least part of the money to a small hedge fund based in Miami to keep it out of lenders’ hands, U.S. Bankruptcy Judge John Dorsey also ruled. The two rulings entitle lenders to collect a financial damages award from the company, with the amount is set to be determined in a separate hearing, according to Dorsey’s ruling. READ MORE | | Texas Gunmaker Files for Bankruptcy
Texas gunmaker Watchtower Firearms filed for bankruptcy last week amid lower consumer demand for guns, the Houston Chronicle reported. Watchtower boasts a range of military, civilian, and precision firearms, suppressors, and accessories. The manufacturer is based in Frisco, Texas, with a corporate office in Spring, according to PitchBook. After acquiring another manufacturer known as F-1 Firearms in 2023, Watchtower shared its aim to focus on three primary markets: everyday consumers, domestic and foreign military, and law enforcement markets. However, its appeals to those customers have seemingly failed to be enough to steer the company clear of financial problems. Watchtower filed for chapter 11 bankruptcy in the Northern District of Texas on Thursday. Watchtower's bankruptcy filing comes as gun sales are slowing down and manufacturers are trimming production. Americans bought 15.3 million guns in 2024, down from a record 21.8 million in 2020, according to The Trace. Even Texas is seeing slower sales, with more than 213,000 guns sold in March 2020 compared to almost 114,000 this January. READ MORE
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April 24-26 | Washington, D.C. | | | | |  | | Daily Roundup | | | | | Trump's Tariffs on Canada and Mexico Take Effect, With Added Duties on China
President Trump’s 25% tariffs on goods from Mexico and Canada took effect first thing Tuesday. Canada responded with plans to impose 25% tariffs on nearly $100 billion of U.S. imports, the Wall Street Journal reported. The U.S. also introduced an extra 10% tariff on Chinese imports overnight, adding to a levy imposed a month ago, and other existing duties. China swiftly announced retaliatory tariffs on U.S. agricultural goods, and other measures against American companies. Beijing also filed a lawsuit with the World Trade Organization. (Subscription required.) READ MORE | | FTX CEO Who Led ‘Model’ Bankruptcy Is Up for $41 Million Bonus
John J. Ray III, who led FTX’s restructuring and efforts to return billions of dollars to customers after it imploded in 2022, stands to collect bonuses totaling $41 million, Bloomberg News reported. Ray — who also oversaw the liquidation of Enron Corp. — and his consulting firm, Owl Hill Advisory LLC, are in-line to receive a $3 million completion fee and $38 million incentive fee under his court-approved compensation package, according to court papers filed by FTX on Sunday. The size of the awards could be challenged by creditors or the U.S. Justice Department’s bankruptcy unit and must be approved by a judge. READ MORE | | CFPB Asks to Pause Comerica Enforcement Action
The embattled U.S. Consumer Financial Protection Bureau on Monday asked a federal court to issue a stay in its enforcement action against Comerica Bank, court papers showed, Reuters reported. In the final days of former President Joe Biden's administration, the agency in December had accused the lender of "systematically" failing disabled and older borrowers receiving federal benefits. READ MORE | | FDIC's Board Approves Roll Back of Bank Merger Policy
The Federal Deposit Insurance Corporation's board of directors has approved a proposal to roll back a Biden-era policy that ramped up the scrutiny of large bank mergers, the agency said in a statement on Monday, Reuters reported. The proposal will temporarily reinstate the merger policy that was in effect prior to 2024 as FDIC conducts a broader reevaluation of its bank merger review process, the agency said in its statement. READ MORE | | North Carolina Man Pleads Guilty to Making False Statements Under Oath in a Bankruptcy Case
Travis Lee Harry of Kernersville, N.C., pleaded guilty today to making false statements under oath in a bankruptcy case. According to court documents and statements made in court, Harry had owned and lived in a house in Princeton, W.Va., which he sold on December 23, 2019. On February 5, 2020, Harry filed for chapter 7 bankruptcy in U.S. Bankruptcy Court for the Southern District of West Virginia. On the Statement of Financial Affairs he submitted as part of the bankruptcy filing, and which he signed under penalty of perjury, Harry falsely stated that he and his spouse co-owned the house and sold it together. READ MORE | | Kraken Says SEC to Dismiss Lawsuit
Kraken, one of the world’s largest cryptocurrency exchanges, said on Monday that the U.S. Securities and Exchange Commission agreed in principle to dismiss its civil lawsuit against the company, Reuters reported. In a statement on its blog, Kraken said the dismissal is with prejudice, with no admission of wrongdoing, no penalties paid and no changes to its business. READ MORE | | U.S. Construction Spending Unexpectedly Declines in January
U.S. construction spending unexpectedly fell in January, pulled down by a decline in outlays on multi-family homebuilding, Reuters reported. The Commerce Department's Census Bureau said on Monday that construction spending dropped 0.2% after an unrevised 0.5% increase in December. READ MORE | | | | |
