 | | Featured Premium Content | | | | | BankruptcyData's Weekly Bankruptcy Wrap: Tariffs Turn Up the Heat — And Another Wave of Bankruptcy
It’s a new month, and the chapter 11 conveyor belt isn’t slowing down, according to BankruptcyData's Weekly Bankruptcy Wrap. On this week’s docket: the largest marine park operator in Latin America plunges into court after a tragic dolphin death and a wildlife raid; a fintech collapse leaves the LA Clippers holding an empty $30.0mn jersey; and, in Appalachia, coal country takes a dark turn with night raids, lawsuits, and equipment heists that wouldn’t be out of place in Ozark. But beneath the circus, a quiet, serious story unfolded in Houston — a tale of two high-profile exits. READ MORE | | | | | SPONSORED CONTENTPredatory Uptiering: Three Steps to Protect Against Being Primed While uptiering disputes are not new, the loan market has seen an uptick in recent years. If not careful, lenders can lose their lien claim positions to a newer, senior lender. SRS Acquiom explains the primary mechanisms of predatory uptiering and identifies steps lenders can take to protect against it—all in one easy-to-reference page. GET THE INSIGHTS | | |  | | Editor's Picks | | | | | Silvergate Bankruptcy Probe Tainted by Conflicts, Examiner Says
Bankrupt crypto-bank owner Silvergate Capital’s investigation into its top officers was tainted by conflicts of interest, a court-appointed examiner said, WSJ Pro Bankruptcy reported. An independent director, Ivona Smith, appointed to probe Silvergate’s collapse into bankruptcy, used the company’s own law firm, which created an “inevitable conflict of interest,” according to a report issued Friday by examiner Stephanie Wickouski. Smith was appointed Silvergate’s independent director in August 2024, a month before the company filed for bankruptcy. She was asked to investigate possible misconduct by current and former directors and officers, including whether insiders improperly sold shares ahead of Silvergate’s collapse. READ MORE | | Spirit Airlines CEO Steps Down Weeks After Carrier Exits Bankruptcy
U.S. discount carrier Spirit Airlines said on Monday that CEO Ted Christie has stepped down with immediate effect as part of a shakeup, weeks after the company emerged from bankruptcy and reconstituted its board, Reuters reported. Chief Commercial Officer Matt Klein is also leaving and will be succeeded by insider Rana Ghosh. The departures come as the carrier works to move away from its no-frills image and rebrand itself as a premium airline. READ MORE | | Yellow, Creditors Get Judge's Guidance on Pension Claims Dispute
The judge overseeing Yellow Corp.'s bankruptcy issued a series of “preliminary observations” in a longstanding dispute over multi-employer pension plan withdrawal claims, Bloomberg Law reported. Bankruptcy Judge Craig T. Goldblatt issued his 70-page guidance as Boston-based hedge fund MFN Partners LP challenges the claims amid a tentative settlement between the troubled trucking company and unsecured creditors. Judge Goldblatt said that if he were to rule, he would partially grant and partially deny competing motions for summary judgment on the claims. READ MORE
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May 14-15 | Las Vegas, Nevada | | | | |  | | Daily Roundup | | | | | Bonati Spine Institute Files for Bankruptcy After Dispute with the Florida
Alfred Bonati, the founder, chief surgeon and face of the the Bonati Spine Institute, has filed for chapter 11 bankruptcy with debts of more than $10 million, court records show, the Tampa Bay Times reported. Chapter 11 proceedings have also been initiated for Gulf Coast Orthopedic Center, the institute’s business arm, and All American Holdings, another affiliate. Combined, the two firms reported liabilities of at least $101 million. READ MORE | | CEO of Philadelphia IT Staffing Company Charged With Tax and Bankruptcy Fraud
United States Attorney David Metcalf announced that Thomas Stafford of Philadelphia was arrested and charged by indictment with failing to collect and pay over trust fund taxes of Information Systems Staffing, Inc. (“ISS”), an information technology staffing company, and bankruptcy fraud, according to a DOJ press release. The indictment alleges that, from the first quarter of 2019 to the fourth quarter of 2024, Stafford, the Chief Executive Officer and President of ISS, caused ISS to fail to pay approximately $2,008,046.63 in trust fund taxes — the Social Security, Medicare, and federal income taxes that employers are required to withhold from their employees’ paychecks and pay over to the Internal Revenue Service on a quarterly basis. READ MORE | | U.S. Consumer Borrowing Declined in February
U.S. consumer borrowing declined in February for the first time in three months, reflecting a sharp pullback in credit-card balances and a decrease in motor vehicle and other non-revolving loans, Bloomberg News reported. Total credit fell nearly $810 million after a revised $8.9 billion gain in January, according to Federal Reserve data out Monday. Outstanding credit-card and other revolving debt edged up $128 million. Non-revolving debt, such as loans for vehicle purchases and school tuition, declined $938 million, the first drop in nearly a year. READ MORE | | Trump Threatens Additional 50 Percent Tariffs on China
President Donald Trump on Monday threatened to impose an additional 50 percent tariff on China, escalating the tit-for-tat retaliation with Beijing that followed the White House’s sweeping import tax rollout last week, Politico reported. “If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump said in a Truth Social post. China was a primary target of Trump’s sweeping “Liberation Day” tariffs announced last week. READ MORE | | Tariffs Will Lead to 2 Million Fewer Auto Sales in U.S. This Year, Auto Advisory Firm Forecasts
U.S. and Canada auto sales could decline by 1.8 million vehicles this year and be stagnant over the next decade if the global trade war escalates, a Detroit-area automotive advisory firm forecasts, Reuters reported. If the current tariffs stay in place until 2035, sales of light-duty vehicles in the U.S. and Canada would be about 7 million units lower than the 24.6 million sales in a scenario with no trade conflicts and strong economic growth, Telemetry said on Monday in a forecast provided exclusively to Reuters. READ MORE | | Banks Postpone Loans as Tariffs Stoke Fears of ‘Hung’ Debt
Wall Street lenders are postponing leveraged-finance deals as investors shy away from risky transactions while global markets have been shaken in the wake of U.S. President Donald Trump’s sweeping tariffs, Bloomberg News reported. In the past several days, banks have pushed at least two leveraged-loan sales to the sidelines. They involve funding for HIG Capital LLC’s planned purchase of Canadian firm Converge Technology Solutions Corp. and a dividend to ITG Communications LLC owner Oaktree Capital Management. Lender commitments for both deals were due last week. There had been six U.S. leveraged-loan transactions pulled from syndication this year before the moves involving Converge and ITG. READ MORE | | Mesa Air, Republic Airways in Merger Deal to Create Larger Regional Airline
Mesa Air Group and Republic Airways agreed to merge in an all-stock deal, the companies said on Monday, in a move that would give them a larger fleet and boost efficiency in regional flying and crew management, Reuters reported. The combined company, which would operate as Republic Airways Holdings Inc, will have a single fleet of about 310 Embraer 170/175 aircraft. READ MORE | | | | |
