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Landlords that aren’t engaging in lease negotiations with WeWork can tap letters of credit to cover rent the bankrupt co-working space provider is withholding, the company said in a filing, WSJ Pro Bankruptcy reported. The brief was submitted on Wednesday to the U.S. Bankruptcy Court in Newark, N.J., in response to petitions from roughly 20 landlords who requested the court’s intervention to collect January and February rent payments. The New York-based company said in the filing that the “vast majority” of those landlords have access to letters of credit, a financial instrument that serves as an alternative to a traditional cash security deposit. Those landlords should go ahead and draw funds from the banks that issued the letters of credit on behalf of WeWork to cover the overdue rents, the company said in the filing. Lawyers for the landlords have argued in their filings that bankruptcy code requires WeWork to make rent payments without delay because they are considered administrative costs that are first in line to be paid as they come due. A number of previous bankruptcy cases indicated that security deposits shouldn’t be depleted to satisfy administrative costs, the lawyers said. WeWork has been in violation of bankruptcy rules by not making rent payments, they said.

A group of Democratic lawmakers are asking Bregal Partners, the former private equity parent of New Bedford-based Blue Harvest, to provide answers by the end of this month about where funds went from the East Coast whitefish company's bankruptcy, IntraFish.com reported. Bregal Partners netted an estimated $100 million for itself by selling off assets in the two years prior to declaring bankruptcy, Sens. Elizabeth Warren (D-Mass.) and Edward Markey (D-Mass.) and Rep. Bill Keating (D-Mass.) wrote to Bregal's Managing Partner Charles Yoon on Monday. "Rather than using the money to settle the debts owed to the small businesses of New Bedford," the letter said, "Bregal Partners shielded these assets from Blue Harvest’s bankruptcy filing in Delaware and pocketed the profits for itself, as it has repeatedly done throughout its 'eight-year roll up of the New Bedford fishing industry.'" The request comes nearly four years after two of the senators praised Blue Harvest for being awarded a highly sought after US Department of Agriculture (USDA) groundfish contract for just over $4.4 million. Bregal sold Blue Harvest to C&P Trawlers last November for $12 million. Mark Felger, co-chair of bankruptcy, insolvency and restructuring with the Massachusetts firm Cozen O'Connor, confirmed with IntraFish that the sale closed in December. He said that it was unlikely the sale would cover all of the nearly $23 million Blue Harvest owes to senior bank lenders, according to bankruptcy documents.

The Center for Special Needs Trust Administration Inc. has filed for chapter 11 bankruptcy, demanding its founder repay an improperly authorized $100 million loan allegedly taken from the nonprofit’s trust accounts, the Tampa Bay Business Journal reported. Between 2009 and 2020, the St. Petersburg-based trust administrator alleges founder Leo J. Govoni sidestepped management to approve the transfer of the funds to Boston Finance Group, one of the various companies he owns and operates, according to bankruptcy documents filed in the Middle District of Florida on Feb. 9. The center filed for chapter 11 bankruptcy reorganization, in part to facilitate an ongoing investigation into the misuse of the funds, a recovery of the money, and to preserve the value of its assets while it restructures, according to the filing. The Center for Special Needs manages more than $200 million in over 2,000 special needs trusts across the U.S., which function as specialized funds for disabled individuals to receive public assistance benefits like supplemental security income and Medicaid. Govoni disputes the allegations and characterizations made in the filing as to the mishandling of the center’s funds and looks forward to resolving the issue through the bankruptcy process or otherwise, his attorney said.

Co-working giant WeWork Inc. is seeking fresh financing in order to finish negotiating rent cuts with landlords and exit bankruptcy, it revealed in a court filing, Bloomberg News reported. The beleaguered company needs the funds mainly to pay rent on office spaces used by its customers, while it deliberates which buildings around the world to keep and which to shed as part of its chapter 11 reorganization. WeWork said that its efforts “are at a critical juncture,” in a court filing that responds to complaints by a number of landlords. More than a dozen landlords had asked a federal judge to force WeWork to pay rent they claim it’s withholding in violation of bankruptcy rules. WeWork has denied the allegation, arguing that the landlords could be paid using other means, such as letters of credit, rather than demanding funds from its shrinking pool of money. The “vast majority” of the unpaid landlords have access to letters of credit and surety bonds set up to ensure they are paid, WeWork pointed out in its filing. The landlords could also be paid using traditional security deposits that renters typically put down when signing a lease, the company argued.

The U.S. Internal Revenue Service on Tuesday sued the Federal Deposit Insurance Corporation, asking a judge to determine how much the FDIC must pay to cover an estimated $1.45 billion tax debt owed by the failed Silicon Valley Bank, Reuters reported. The FDIC, which seized SVB and its assets in March 2023, has denied the entire tax claim, according to a complaint filed in federal court in Washington. The IRS said the court should overrule the FDIC's decision to deny the tax claim, and make a new determination on the validity and amount of taxes owed. The FDIC is acting as a receiver for the bank, gathering the bank's assets and using them to repay SVB's creditors. The IRS said that its initial $1.45 billion claim was an estimated total for taxes due between 2020 and 2023, and that it was still reviewing SVB's tax returns when it filed the claim. The IRS later learned that some of the employment taxes included in its claim have already been paid. The IRS and the FDIC did not immediately respond to requests for comment on the dispute. Santa Clara, California-based SVB became one of the largest bank failures in U.S. history when it collapsed on March 10, sending shockwaves through the regional banking industry in the U.S. and disrupting many tech startups that housed their cash at the bank. The FDIC has also been sued by SVB Financial, SVB's former parent company, over its seizure of $1.93 billion in cash during its takeover of the bank.

A filing with the U.S. Bankruptcy Court for the district of Nevada on February 9 shows that Career College of Northern Nevada filed for bankruptcy on the day it unexpectedly closed. Students who were enrolled at the institution or were on an approved leave of absence on the 9th, or who withdrew from a training program within 180 days of the 9th, may qualify for a Closed School Discharge. Students who paid tuition fees without using U.S. Department of Education Student Financial Aid should contact the Nevada Commission of Postsecondary Education to file for reimbursement through the state's Tuition Recovery Fund.

Bankrupt Brazilian airline Gol Linhas Aereas Inteligentes SA won court permission to investigate whether its rival Latam Airlines Group SA sought to take unfair advantage of its recent chapter 11 filing by improperly soliciting major Boeing Co. aircraft suppliers, Bloomberg News reported. Judge Martin Glenn said Monday there is merit in investigating allegations Latam tried to either poach or interfere with Boeing 737 aircraft lessors doing business with Gol after the Brazilian budget airline filed bankruptcy last month. Judge Glenn cited a letter Latam sent to aircraft lessors the day after Gol filed bankruptcy. A Latam lawyer said the Jan. 26 letter was the fist time in recent years the company had inquired about a type of narrowbody Boeing 737 aircraft flown by Gol. Latam has historically flown a fleet of Airbus aircraft, according to court documents. It would be “preposterous” to assume it was merely a coincidence Latam sent the letter immediately after Gol filed Chapter 11, Glenn said. In the letter, Latam said it was seeking more aircraft, which the airline said might be of interest to lessors “given the recent events in the industry.” Judge Glenn granted the Sao Paulo-based airline’s request to get documents and conduct depositions of Latam officials in order to gather evidence, should any exist, substantiating claims that Latam sought to interfere with Gol’s business or violate its chapter 11 stay, which protects companies in bankruptcy. Latam has denied the allegations and argued Gol is seeking such information to gain an unfair edge on its rival.

Bankrupt coworking-space provider WeWork said it owes 160 landlords no rents for the month of November, according to a court filing, WSJ Pro Bankruptcy reported. The company said in a Wednesday bankruptcy court filing that those landlords who disagree with the listed amount of the so-called stub rent “must first engage in a good-faith attempt to resolve such disagreement with [WeWork] before filing their proof of claim.” WeWork filed for bankruptcy on Nov. 6 after struggling with a downturn in the office market. Unless the company rejected the leases as of that date, it owes its landlords the stub rent from the petition date to the end of November, according to bankruptcy code and case law in the Third Circuit Court of Appeals. That circuit covers the U.S. Bankruptcy Court of New Jersey that handles WeWork’s bankruptcy case. The filing came as a surprise for those landlords listed in the document along with the amount zero.

Regional broadcast agreements for the Cleveland Guardians, Minnesota Twins and Texas Rangers for the upcoming season were approved by a federal bankruptcy judge on Friday, the Associated Press reported. Diamond Sports Group reached amended agreements with the three teams last week. All three deals expire at the end of the 2024 season. Diamond Sports has been in chapter 11 bankruptcy proceedings in the Southern District of Texas since it filed for protection last March. The company said in a late 2021 financial filing that it had debt of $8.67 billion. It reached a restructuring agreement with creditors last month that is still going through hearings. Diamond owns 18 networks under the Bally Sports banner. Those networks have the rights to 37 professional teams — 11 baseball, 15 NBA and 11 NHL. The Twins’ agreement with Diamond expired at the end of last season. The deals with the Guardians and defending World Series champion Rangers were restructured for less money. The deals with the three teams leave the Arizona Diamondbacks and San Diego Padres as the only teams whose games will be produced by Major League Baseball for 2024.