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The national organization behind Black Lives Matter is facing bankruptcy after plummeting $8.5 million into debt last year, RadarOnline.com reported. In a development coming almost four years after the BLM Global Network Foundation formally emerged in November 2020, the organization is now nearly $9 million in the red. There also is evidence showing that BLM GNF still managed to hire and pay relatives of the foundation’s founder, Patrisse Cullors, seven-figure salaries despite the financial woes it faced in 2022. According to financial disclosure documents first obtained by the Washington Free Beacon this week, Patrisse’s brother Paul was paid $1.6 million last year to provide “professional security services” for BLM. Paul Cullors also reportedly received an additional $126,000 salary as “head of security” for the foundation, as well as vague consulting fees, despite having no experience or background in the security services industry. In addition, in 2021, Patrisse came under fire when it was revealed the foundation paid the father of her child $970,000 to produce “live events” and other “creative services” for the BLM GNF.

Priority Technology Holdings plans to acquire Plastiq, which filed for chapter 11 bankruptcy protection yesterday, pymnts.com reported. Priority has entered into a definitive agreement to acquire most of the assets of Plastiq and certain of its affiliates, subject to bankruptcy court approval and any higher and better offers Plastiq may receive during the auction process, the companies said in a Wednesday press release. The acquisition would enhance Priority’s B2B embedded finance solutions by adding Plastiq’s bill pay and instant working capital access platform, which serves small and medium-sized businesses (SMBs), according to the release. The two companies are already partners for payment processing, so Priority is well positioned to support Plastiq’s restructuring, serve its customers, and help it scale and optimize its operations, Priore said in the release. Priore added that Priority has done so in the past with its acquisitions of Cynergy Data and Rent Payments.com.

WeWork Inc. CFO Andre Fernandez intends to resign on June 1, the company said yesterday, less than a year into the role and days after top boss Sandeep Mathrani announced his exit from the workspace provider, Reuters reported. Chief Accounting Officer Kurt Wehner, who joined WeWork in October 2020, will take over as CFO. He previously served as the accounting chief at media firm Discovery Inc. Fernandez's resignation was not a result of any disagreement, the company said. WeWork in March struck deals to cut its debt by about $1.5 billion and extend the date of some maturities to preserve cash as it struggles to turn a quarterly profit since going public. The company, which benefited from a pandemic-driven shift to flexible work outside traditional offices, has been impacted by mass layoffs across the tech sector over the past nine months. WeWork shares have fallen about 87% so far this year. The flexible work provider, which was valued at $47 billion in 2019, now has a market capital of $404.7 million as of last close.

Telecommunications and power contractor QualTek Services Inc. filed for bankruptcy yesterday, armed with a restructuring deal that could slash $307 million of the company's $625 million debt, Reuters reported. QualTek filed for chapter 11 protection in Houston, saying that increasing debt costs were beginning to cut into its operating budget, at a time when inflation was already causing it to pay more for labor and energy. Rate hikes caused QualTek's 2022 interest expense to balloon by 33% to $59.3 million, according to its court filings. QualTek went public through a special-purpose acquisition vehicle (SPAC) deal in February 2022, just before the Federal Reserve began raising interest rates in an effort to curb inflation in the U.S. economy. QualTek's public offering raised "far less" equity investment than the company anticipated, requiring it to take on additional interest-bearing debt, according to court filings. QualTek enters bankruptcy with a restructuring agreement that is supported by 80% of its lenders, who are collectively owed $625 million. The restructuring deal would reduce the company's overall debt by $307 million and provide $40 million of new loans that will fund the company's post-bankruptcy operations. QualTek hopes to emerge from bankruptcy within 65 days, and it plans to pay vendors in its supply chain and other junior creditors in full. The Blue Bell, Pa.-headquartered company has 1,800 employees, and it provides a range of telecom and power infrastructure services throughout the U.S.

Bankrupt Purdue Pharma received a U.S. judge’s permission to sell its consumer health business for $397 million to a subsidiary of Arcadia Consumer Healthcare, Reuters reported. Bankruptcy Judge Sean Lane approved Purdue's sale of Avrio Health at a hearing, allowing Purdue to begin liquidating its assets while it awaits a final ruling on a $10 billion settlement that would devote the company's remaining resources to combating the U.S. opioid epidemic. Purdue's creditors' committee has pushed the company to use the proceeds from the sale to get started on that effort by compensating victims of the opioid crisis and funding addiction treatment programs. Purdue attorney Eli Vonnegut said that the company supports that goal, but will need to build consensus among various stakeholders in its bankruptcy first. Purdue is hesitant to take that step while its future is uncertain and its bankruptcy plan is tied up in appeals, Vonnegut said. Purdue filed for bankruptcy in 2019 to resolve thousands of lawsuits alleging that its opioid painkiller OxyContin kickstarted an epidemic that has caused more than 500,000 U.S. overdose deaths over two decades. Purdue's effort to settle the lawsuits in bankruptcy has been stalled by appeals challenging the company's effort to shield its owners, members of the wealthy Sackler family, from liability in exchange for a $6 billion contribution to Purdue's settlement. (Subscription required.)

A federal judge has ordered 3M Co. CEO Michael Roman to attend mediation aimed at resolving nearly 260,000 lawsuits alleging that 3M military earplugs caused hearing loss, saying the negotiations have reached a “critical juncture,” Reuters reported. District Judge Casey Rodgers, in whose Florida court the lawsuits have been consolidated, ordered Roman to attend mediation talks so that he may "listen and engage directly with the mediators." The mediation so far has been "encouraging," but it requires 3M senior leadership to push ahead. Roman's attendance will ensure that 3M's board will have "firsthand knowledge of the current state of the negotiations" when evaluating any settlement offer, Judge Rodgers said. 3M has sought to resolve the lawsuits brought by veterans and members of the military who allege that 3M's combat arms earplugs were defective and damaged their hearing through the bankruptcy of its subsidiary Aearo Technologies LLC, which manufactured the earplugs. 3M had opposed efforts to renew mediation efforts while Aearo's bankruptcy case is pending. Previous efforts reached an impasse in January, as 3M and the earplug plaintiffs focused their attention on Aearo's bankruptcy. A company spokesman said that 3M continues to believe that Aearo's bankruptcy provides a better option for resolving the earplug claims "more quickly, with more certainty and with more balanced recoveries among claimants." Aearo's bankruptcy strategy has been fiercely opposed by plaintiffs, who said that 3M was merely trying to escape litigation following a series of unfavorable legal rulings and trial losses. (Subscription required.)

Elevate Textiles, the fabric maker owned by Platinum Equity, reached an out-of-court restructuring deal in which its lenders will take control, WSJ Pro Bankruptcy reported. The restructuring deal reduces the company’s debt load to $384 million from $778 million. That leaves Platinum with a 2% stake in the restructured company and creditors taking the rest, a person familiar with the matter said. Elevate Textiles is being advised by the law firm Milbank, while first-lien lenders have engaged Gibson, Dunn & Crutcher and second-lien lenders are represented by Ropes & Gray, people familiar with the matter said. Platinum Equity acquired the predecessor of Elevate in 2016. The company, which makes fabrics for automotive, apparel, interior furnishing and industrial applications, has struggled with the cost of servicing its debt.

Lifesize, the global provider of video conferencing solutions, has filed for chapter 11, AV Magazine reported. The company has entered into an asset-purchase agreement with Enghouse Systems for the software solutions provider to acquire its assets and brands, including Lifesize, Kaptivo, ProScheduler, Serenova and Telstrat for about $21 million. Lifesize will operate as usual throughout its sale and financial reorganization process to secure an owner with a long-term commitment. The company has obtained $5m in debtor-in-possession financing from its existing lender to support day-to-day operations during the chapter 11 process. Lifesize, which was set up in 2003, created the world’s first high-definition video meetings and cloud-based contact centers, serving millions of users through channel partners in more than 100 countries.