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WSJ Pro Bankruptcy: Suppliers Get Burned in Expensive Bankruptcy Cases
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Companies increasingly are failing to pay the bills they rack up in chapter 11 for goods and services, leaving suppliers and service providers to eat losses when bankruptcy restructurings don’t go as expected, WSJ Pro Bankruptcy reported. Typically the debts at the top of the pecking order when a borrower seeks protection from creditors include critical vendors and service providers agreeing to keep doing business with a bankrupt company. Increasingly, however, those top-tier creditors are at risk that they won’t be fully repaid, an outcome known as administrative insolvency. READ MORE
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Battery Startup Lyten Yet to Convince Carmakers over Northvolt Revival
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Silicon Valley startup Lyten will need to convince carmakers it can succeed where bankrupt Swedish EV battery maker Northvolt failed — creating a European champion to reduce the region's reliance on China, Reuters reported. Lyten, which develops lithium-sulfur batteries, unexpectedly announced on August 7 it was buying Northvolt's assets, offering a lifeline to future European battery production for electric vehicles. But customers and investors burned by the Northvolt experience remain wary of committing without seeing a proven product that can be delivered at scale, interviews with over a dozen battery industry experts, analysts and car company sources revealed. READ MORE
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Spirit Airlines Engages Advisers to Explore Repeat Restructuring
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Spirit Airlines is exploring strategic alternatives after its recent financial restructuring failed to put the budget carrier on a sustainable path, WSJ Pro Bankruptcy reported. The budget airline has brought on financial adviser PJT Partners as it navigates a cash crunch that it previously said raises doubt about its ability to continue as a going concern. It is also working with consulting firms FTI and Seabury Airline Strategy Group. READ MORE
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Waterbury Mayor Urges Nonprofit Buyer as Hospital Heads to Bankruptcy Auction
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Waterbury, Conn., mayor Paul K. Pernerewski Jr. remains uneasy over the possibility of another for-profit company purchasing Waterbury Hospital through a bankruptcy auction following Prospect Medical Holdings Inc., CTInsider.com reported. Pernerewski said on Thursday that he continues to prefer to have Waterbury Hospital return to nonprofit ownership after nearly a decade of Prospect's private equity-backed, profit-making proprietorship. READ MORE
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Navigating the Complexities of Retirement Plan Terminations
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Marriott Marquis
September 18-19 | Chicago, Ill.
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 | | Daily Roundup |
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BlockFi Judge Urged to Approve $13 Million Settlement as Last Objector Withdraws
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A $13.2 million class action settlement for BlockFi investors moved closer to approval after the sole remaining objector abandoned his challenge. That could remove the final hurdle for compensation to thousands who lost access to funds when the crypto lender imploded in 2022, Decrypt.com reported. Attorneys for lead plaintiffs filed a letter on Wednesday with U.S. District Judge Claire Cecchi, confirming that Yacov Baron had withdrawn both his motion to intervene and his objections to the proposed deal. “Rapid resolution of the Preliminary Approval Motion will allow Plaintiffs to commence issuing notice to class members and will reduce the potential for complications to arise in connection with the closing of the bankruptcy of BlockFi, Inc.,” the letter said. The proposed settlement covers all U.S. holders of BlockFi interest accounts between March 2019 and November 2022. READ MORE
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Nation’s Largest Landlord Settles Price-Fixing Claims with DOJ
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The nation’s largest landlord has reached a settlement with the Justice Department (DOJ) over claims it used a rent-setting algorithm improperly and colluded with competitors to boost profits, The Hill reported. Greystar, which manages almost 950,000 rental units across the country, agreed to a proposed settlement earlier this month that will bar the company from using “any anticompetitive algorithm” that generates pricing recommendations using its competitors’ sensitive data, DOJ said in a statement. READ MORE
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The Plan to Make Hooters ‘Delightfully Tacky’ Again
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Neil Kiefer, chief executive officer of the Original Hooters Founder Group, is arguing in bankruptcy court that he thinks he can turn the Hooters chain into a place where men come for beer and wings alongside families who are there for chicken strips and curly fries at lunch, the Wall Street Journal reported. He wants to fix up locations that are run down, update the menu that has grown too long, and make the whole chain “delightfully tacky,” as its founders put it in the 1980s. The company that owned most Hooters restaurants in the U.S. filed for bankruptcy earlier this year after a long stretch of slowing sales. Kiefer, who owns nearly two dozen Hooters restaurants, aims to take over 50 of the bankrupt locations and partner with a fellow operator who would acquire 50 others. (Subscription required.) READ MORE
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Year Will End With 300,000 Fewer Federal Workers, Trump Official Says
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There will be some 300,000 fewer federal workers on the government payroll by the end of December than there were in January, according to Scott Kupor, the director of the Office of Personnel Management, the New York Times reported. That amounts to the loss of about one in eight federal civilian workers, and would be the largest single-year reduction since World War II. Kupor said that the resignation incentives first introduced by the Department of Government Efficiency, or DOGE, accounted for the bulk of the 300,000 departures. He said most would be officially separated by the end of September, and others by the end of the year. READ MORE
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