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ABI Journal: BAP to the Future: Multi-Circuit BAPs, Judicial Capacity and Precedent
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Depending on the circuit, appeals from bankruptcy court final judgments, orders and decrees go to either the respective district court or the corresponding circuit’s bankruptcy appellate panel (BAP). Of the 12 regional circuits, only five currently have a BAP: the First, Sixth, Eighth, Ninth and Tenth Circuits. Multi-circuit BAPs would help reduce the caseloads for district judges (perhaps moreso than just more individual circuit BAPs), which might mitigate the need for some of the 69 new judgeships that the Judicial Conference is currently proposing. READ MORE
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 | | Editor's Picks |
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Bankruptcies Wiped Out a Lot of Full-Service Restaurant Locations Last Year
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Bankruptcies took a big bite out of the full-service restaurant supply in 2024, Restaurant Business reported. Sit-down chains that filed for bankruptcy, either in 2024 or this year, closed a total of 348 locations last year, which accounted for about 1.3% of all full-service locations on Techomic’s Top 500 ranking of the largest U.S. restaurant concepts. The bulk of those closures came from TGI Fridays, which closed 134 restaurants, and Red Lobster, which closed 131. The closures helped to end what had been a three-year streak of unit growth among Top 500 full-service chains coming out of the pandemic. READ MORE
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Linqto Customers Sue Ex-CEO After Fintech Company's Bankruptcy
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Two customers of investment platform Linqto sued the company’s ex-CEO, alleging that they were duped into buying into an investment fund that promised access to private companies’ equity, Reuters reported. The customers claim that Linqto's former CEO William Sarris misled investors who sought to buy stakes in hot tech startups, by leading them to believe they were acquiring direct stakes in hard-to-access private companies like the blockchain company Ripple. He capitalized on customers' "fear of missing out," according to their lawsuit filed in federal court in Manhattan. The two plaintiffs seek to represent a class of customers who purchased securities from Linqto. READ MORE
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Former Fed Governor Says Trump Is Right to Be Frustrated with Powell's Restrictive Policies
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Former Federal Reserve Governor Kevin Warsh said that the U.S. economy could grow tremendously, but "bad" policies by the Federal Reserve are keeping it from doing so, Fox Business reported. Warsh said that he had "some sympathy" for President Donald Trump being frustrated with how Federal Reserve Chair Jerome Powell and the central bank have been handling interest rates. "Economic growth in the U.S. is poised to boom, but it’s being held down by bad economic policies coming from the central bank, bad supervision policies, bad monetary policies, and a very confusing set of standards as we’ve gone from last year to this year," the former Federal Reserve governor said. Warsh added that both interest rates and the Federal Reserve’s balance sheet should be lower than they are. READ MORE
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 | | Upcoming Events |
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2025 Northeast Bankruptcy Conference and Consumer Forum
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Mount Washington Resort & Spa
July 14-16 | Bretton Woods, N.H.
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2025 Southeast Bankruptcy Workshop
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The Ritz-Carlton, Amelia Island
July 24-27 | Amelia Island, Fla.
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 | | Daily Roundup |
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Most U.S. Adults Say Child Care Costs Are a ‘Major Problem,’ a New AP-NORC Poll Finds
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Americans overwhelmingly view the cost of child care as a significant issue, and most support initiatives to offer free or low-cost day care and to require employers to provide paid family leave for parents of babies, the Associated Press reported. They’re divided over how to solve the problem and what role the government should have in that solution. About three-quarters of U.S. adults see child care costs as a “major problem,” but only about half say helping working families pay for child care should be a “high priority” for the federal government, according to the June poll from the Associated Press-NORC Center for Public Affairs Research. The coronavirus pandemic was a tipping point, revealing the child care industry’s vulnerabilities. READ MORE
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Linqto Bankruptcy No Threat to Pre-IPO Markets, Says EquityZen
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The bankruptcy of Linqto, a private investment marketplace holding 4.7 million secondary shares of Ripple, will have no impact on the broader pre-initial public offering (IPO) markets, according to EquityZen, Cointelegraph reported. The company previously allowed users to invest in private companies such as Ripple ahead of potential public listings. According to EquityZen, one of the largest secondary trading platforms for private shares, Linqto’s bankruptcy has no impact on other businesses in the pre-IPO market. READ MORE
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Mosaic Companies Files for Bankruptcy with $65M in Debt
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In a dramatic financial collapse that underscores the broader turmoil plaguing the construction and home design industries, Mosaic Companies, the parent of renowned tile distributors Walker & Zanger and Surfaces Southeast, has filed for chapter 11 in Delaware, listing $65 million in secured debt, USA Herald reported. The company’s downfall paints a picture of ambition caught in a whirlwind of bad timing and brutal economics. What began as a promising rebound from the pandemic quickly spiraled into financial quicksand, made worse by climbing interest rates, soaring import costs and unreliable supply chains. READ MORE
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Sunnova Sells Solar Unit to Omnidian Amid Bankruptcy for $7M
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Sunnova Energy has agreed to sell part of its residential solar installation business to Omnidian for $7 million in cash and the assumption of certain liabilities, EconoTimes reported. The deal is part of a stalking horse agreement amid Sunnova’s ongoing bankruptcy proceedings. The Houston-based solar provider filed for chapter 11 last month, citing significant debt and declining demand. The filing revealed estimated assets and liabilities ranging between $10 billion and $50 billion. READ MORE
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Trump Unveils New Tariffs on Six Countries
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President Donald Trump announced a new round of tariffs targeting six additional trading partners, the Daily Caller reported. Beginning Aug. 1, the U.S. will impose a 30% tariff on Algeria, Libya and Iraq, a 25% rate on Brunei and Moldova, and 20% on the Philippines, Trump revealed. The announcement follows the president’s announcement that Japan and South Korea would face 25% levies. The Trump administration had warned it would slap steep new tariffs on countries that fail to negotiate a trade deal with the U.S. by the July 9 deadline, but has since extended the deadline to Aug. 1. READ MORE
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TwoMorrows Legally Objects to Diamond Bankruptcy Liquidation of Stock
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John Morrow, publisher of TwoMorrows Publishing, has filed a legal objection to the plans of the debtors of the Diamond Comic Distributors' chapter 11 bankruptcy to liquidate the consignment stock owned by hundreds of publishers, to raise money to pay off Diamond's debt to the banks, Bleeding Cool reported. TwoMorrows Publishing was founded in 1994 by John Morrow and Pam Morrow out of their small advertising agency in Raleigh, N.C., to publish magazines about comic books. They were heavily impacted by the Diamond Comic Distributors chapter 11 and pulled their titles even from third-party distribution. READ MORE
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Popular Furniture Manufacturer Closes Down, Liquidates Assets
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Major North Carolina furniture manufacturer and supplier Progressive Furniture, which provides products to major retailers, said it will close down its business at the end of the year and lay off all 30 of its employees, after its primary supplier in Mexico, which provided 60% of its products, decided to close its business, The Street reported. Progressive Furniture, a subsidiary of ready-to-assemble furniture company Sauder Woodworking, sells its products through Walmart, Target, Home Depot, Lowe's, Amazon, Wayfair and other furniture retailers. The company said it will fulfill existing orders and honor warranties until it closes. READ MORE
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DOJ Questions Ex-UnitedHealth Doctors in Probe into Medicare Fraud: Report
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The Department of Justice questioned former UnitedHealth doctors as it investigates claims that the health insurance giant pushed staffers to make diagnoses that triggered higher Medicare payments, the New York Post reported. The investigation concerns alleged efforts to encourage staffers to record certain diagnoses that trigger higher payments under Medicare Advantage, the program for seniors and the disabled. Investigators for the Justice Department, FBI and Health and Human Services Department have been asking for details on patient testing, procedures used to reach certain diagnoses and the process of sending nurses to patients’ homes, according to former UnitedHealth employees. READ MORE
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