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The Archdiocese of St. Paul and Minneapolis announced June 17 it has fulfilled its remaining $3 million obligation to clergy abuse survivors ahead of schedule in its $210 million bankruptcy settlement, the Catholic Spirit reported. The archdiocese filed for bankruptcy protection in January 2015 in the wake of mounting claims of clergy sexual abuse dating back as far as the 1940s. Ultimately 453 claims were filed against the archdiocese during the claim-filing period, most of which were related to lawsuits brought against the archdiocese during a three-year-lifting of the statute of limitations on child sexual abuse claims in Minnesota. In May 2018, the archdiocese announced it had reached a $210 million settlement. The $3 million is the balance left on a $5 million promissory note as part of the bankruptcy settlement, in which the archdiocese agreed to contribute $1 million to the abuse survivors’ trust each year for five years.

CWT, one of the world’s largest business travel managers, skipped a debt payment as it begins negotiating with creditors, Bloomberg News reported. The privately-held company, which was known as Carlson Wagonlit Travel prior to a 2019 rebrand, told its investors on Wednesday that it didn’t pay interest on its $250 million third-lien notes due 2026. The bonds pay 9.5% cash and 2% in-kind. The missed coupon payment, which was due June 15, starts the clock on a 30-day grace period before a formal default. CWT is seeking to reach a deal with creditors to rework its debts in that time, the people said, though forbearance could be granted to allow talks to continue. CWT and its bond investors are discussing options including swapping debt for equity to help the company boost its liquidity as business travel begins to resume, the people said. Certain creditors have chosen to restrict their trading and begin formal talks with the company, while others are planning to sign non-disclosure agreements in the coming days, they added. Company's bonds slip back to trade at a discount
Representatives for CWT didn’t return messages seeking comment. Reorg previously reported that the company’s creditors were preparing for debt talks.

Purdue Pharma LP’s bankruptcy judge on Wednesday approved a narrow probe of the OxyContin maker’s corporate governance despite calling part of the request that prompted it “a load of hooey,” Bloomberg News reported. U.S. Bankruptcy Judge Robert Drain approved an investigation into whether the drugmaker’s owners, members of the billionaire Sackler family, have had undue influence on an independent committee of Purdue board members. That so-called special committee reviewed potential lawsuits against the family members and is seeking a settlement instead of litigation. The appointment is the latest twist in a bankruptcy case that has aired the grievances of those affected by the opioid crisis — from states and cities to individuals. By one measure, Purdue is facing legal claims totaling more than $40 trillion, or about double the U.S. GDP in 2020. It’s trying to settle those claims by handing Purdue’s assets to a trust for the benefit of cities and states, who would use the money on opioid crisis abatement. In a contentious five-hour hearing, Judge Drain said there’s no evidence to suggest the board members’ independence has been compromised, but decided the court papers filed to request the investigation were so misleading that a probe is needed to remove any “taint” over the bankruptcy process.

Facing a cash crunch after failing to attract as many residents as it had budgeted for, the Amsterdam at Harborside retirement community on Long Island has filed for bankruptcy protection for a second time, WSJ Pro Bankruptcy reported. The COVID-19 pandemic hampered efforts to sign up new residents at the not-for-profit retirement community in Port Washington N.Y., pushing the 329-unit facility to default on its municipal bond obligations, according to a declaration filed on Monday by Chief Executive James Davis in the U.S. Bankruptcy Court in Central Islip, N.Y. The nonprofit stopped making interest payments on its bonds and refunding residents their entrance fees during the pandemic to preserve cash, Davis said. Amsterdam at Harborside previously sought chapter 11 protection in 2014, emerging with more than $200 million in debt that it aims to restructure in its current bankruptcy. The community has come to terms with creditors holding 73% of its tax-exempt revenue bonds on a potential restructuring of the debt, which must be approved in bankruptcy court to take effect. Under the proposed deal, the bondholder group would buy $40 million in new bonds to pay $20.8 million in outstanding entrance-fee refunds and establish required reserve accounts.

The Flint, Mich., water criminal case involving former Gov. Rick Snyder took a strange side trip yesterday into bankruptcy court where his lawyers asked a judge to penalize state attorneys for distributing confidential documents from Detroit's historic financial restructuring, the Associated Press reported. The documents were related to private talks between Detroit, the state and creditors while the city was trying to emerge from bankruptcy in 2014. Snyder's administration played a key role in groundbreaking deals. Armed with a search warrant in 2019, prosecutors in the attorney general's office obtained documents from computer servers controlled by other state attorneys who had represented Snyder in matters related to Flint's lead-contaminated water. The search apparently swept up sensitive documents from the Detroit bankruptcy as well as attorney-client communications of other state officials, Snyder attorney Charles Ash said. “There has been a massive breach. ... We don’t know how this happened and don’t really know the full extent of the problem," Ash told Bankruptcy Judge Thomas Tucker. The records were given to other people charged with crimes in the Flint water scandal because prosecutors have an obligation to share documents with defense lawyers.

EAGLE Hospitality Real Estate Investment Trust (EH-Reit), which is part of Singapore-based Eagle Hospitality Trust (EHT), has received net proceeds of about U.S. $153.9 million following the sale of five chapter 11 properties, the Singapore Business Times reported. The net proceeds have been partially used to repay the debtor-in-possession facility and the stalking horse "break up" fee, EH-Reit trustee DBS Trustee said in a bourse filing on Thursday. The balance remaining is around $109.7 million, which will go to repaying ongoing post-petition expenses and pre-petition creditors. This includes some $380 million under a pre-petition facilities agreement, as well as claims from trade creditors against these entities which DBS Trustee said cannot be quantified at this time. "To the extent any value remains, other junior creditors would be paid," it added. The sale of four properties under chapter 11 protection for $117.2 million was completed on June 3. These assets were Sheraton Denver Tech Center, Four Points by Sheraton San Jose Airport, Embassy Suites by Hilton Anaheim North, and Double Tree by Hilton Salt Lake City. Hilton Atlanta Northeast was later sold for $37.9 million on June 8.

Candy retailer It'Sugar is slated to emerge from bankruptcy after nearly nine months of court proceedings, the South Florida Business Journal reported. The Deerfield Beach, Fla.-based chain is expected to finalize its chapter 11 reorganization process by the end of July, according to a statement from the company. When it does so, Fort Lauderdale-based BBX Capital will reacquire control of It'Sugar. The retailer had become its own entity when BBX restructured last year. It'Sugar filed for chapter 11 protection in September. At the time, BBX Capital said that the COVID-19 pandemic was to blame for It'Sugar's financial struggles. BBX Capital President Jarett Levan said tourism historically accounted for 60% of It'Sugar's annual sales and, at that point in the pandemic, travel was still at historic lows nationwide. On June 11, the U.S. Bankruptcy Court for the Southern District of Florida announced its intention to confirm It'Sugar's reorganization plan, according to the company. The confirmation order is expected to become final within a week, which will allow It'Sugar to officially emerge from bankruptcy proceedings after 30 days.

A U.S. bankruptcy judge has upheld court decisions that the state of Montana lacked legal standing to file an involuntary bankruptcy petition nearly a decade ago against Yellowstone Club co-founder Tim Blixseth, the Associated Press reported. Judge Mike N. Nakagawa of Nevada on June 3 confirmed the ruling by previous judges to dismiss the involuntary petition, noting the case has lingered for nearly 10 years. The U.S. Court of Appeals for the Ninth Circuit ruled in 2019 the Montana Department of Revenue (MDOR) lacked legal standing to file an involuntary bankruptcy petition against Blixseth and referred the case to bankruptcy court to see if it should be dismissed. The Yellowstone Club, a private ski and golf resort in Big Sky founded by Blixseth and his now ex-wife in 1997, filed for bankruptcy in 2008. Blixseth was accused of pocketing much of a $375 million Credit Suisse loan to the resort and later gave up control of the enterprise to his ex-wife during their 2008 divorce. The club, which has touted billionaire Microsoft co-founder Bill Gates and former Vice President Dan Quayle as members, has emerged from bankruptcy under new ownership. The Montana Department of Revenue had done an audit of Blixseth and in 2009 said he owed $56.8 million in taxes, penalties and interest arising from eight audit issues, court documents stated. The Montana action against Blixseth is separate from Blixseth’s claims against Montana in Nevada for damages due to the involuntary petition.

Washington Prime Group Inc., a real estate investment trust that operates enclosed malls and strip centers across the U.S., filed for bankruptcy after the COVID-19 pandemic curtailed in-person shopping, Bloomberg News reported. The chapter 11 filing in Houston will allow Washington Prime to continue operating while it seeks to implement a restructuring agreement that it reached with certain creditors, according to a board resolution filed with the bankruptcy petition. The company, which estimated its assets at about $4 billion and debt of almost $3.5 billion, secured an up to $100 million debtor-in-possession loan that would help fund operations during court proceedings. The Columbus, Ohio-based firm that operates around 100 malls, saw its bonds tumble into distressed territory in 2020 as rent collections dried up and tenants filed for bankruptcy or went out of business. It began negotiating with its creditors last year and skipped a $23 million bond interest payment in February. Creditors had been extending a forbearance agreement amid the talks.

California power authority Western Community Energy said Friday it is winding down operations just weeks after filing for bankruptcy because it doesn’t have the money to purchase power for customers during the hot summer months, WSJ Pro Bankruptcy reported. WCE said it is working with state regulators to transition its approximately 100,000 customers to private utility Southern California Edison without interruptions to their electricity service. The public power authority based in Riverside, Calif. had hoped filing for bankruptcy protection last month would provide a financial respite so it could reorganize its balance sheet, raise financing and stay in operation. WCE only began providing electricity last year to residents and businesses in Perris, Norco, Wildomar, Eastvale, Hemet and Jurupa Valley — cities in Riverside County near Los Angeles. The power authority said Friday it decided to cease service after concluding it wouldn’t have the financial resources needed to purchase power for customers in July, when temperatures in the area regularly exceed triple digits. Soaring energy use during COVID-19 lockdowns, trouble collecting unpaid bills and $12 million in extra costs related to hot weather last year pushed the authority into bankruptcy, according to court papers filed in the U.S. Bankruptcy Court in Riverside, Calif. The power authority said Friday its operations have also been hurt by energy generators it has worked with terminating contracts that would have secured electricity during the summer.