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Lordstown Motors Corp. may be forced to cease operations and file for bankruptcy after manufacturing giant Foxconn told the electric-vehicle company that it’s prepared to pull out of a production partnership, Bloomberg News reported. The deal with Foxconn Technology Group could unravel after the Taiwanese company threatened to withhold funding, something that could force Lordstown into insolvency, the company warned in a securities filing on Monday. Lordstown said it was also seeking alternative financing. “If we are unable to resolve our dispute with Foxconn in a timely manner on terms that allow us to continue operating as planned, identify other sources of funding, identify a strategic partner and resolve our significant contingent liabilities, we may need to curtail or cease operations and seek protection by filing a voluntary petition for relief under the Bankruptcy Code,” Lordstown said. The filing underscores the speed at which the partnership has become destabilized amid turmoil in the EV market. Just about six months ago, Foxconn agreed to invest as much as $170 million in Lordstown and take two board seats. The deal gave the EV maker much-needed capital while offering Foxconn, the Taiwanese manufacturer best known as the maker of Apple Inc.’s iPhone, a firmer foothold in automotive production. Foxconn also paid $230 million for a former General Motors Co. factory in Lordstown, Ohio, where it planned to make Lordstown’s debut vehicle under contract. But in January, Lordstown asked Foxconn to suspend production because the cost of making the Endurance battery-powered pickup exceeded the targeted sale price of $65,000 — and said it would need another partner beyond Foxconn to share costs.

Appaloosa Management, Centerbridge Partners and Silver Point Capital are among the titans of distressed-debt investing pushing for big payouts in the bankruptcy case of the former owner of Silicon Valley Bank, new court papers show, Bloomberg News reported. A group of eight firms holds more than $1.1 billion in senior notes and roughly $1.5 billion worth of preferred equity issued by SVB Financial Group, the holding company that went bust after a run on its bank earlier this year. By banding together and sharing the cost of attorneys and financial advisers, such groups can have enormous sway in major corporate bankruptcy cases. Appaloosa holds $345 million worth of SVB debt, Silver Point $231.7 million and Centerbridge $199.8 million, according to the court filings. The other companies in the group are Citigroup’s distressed trading desk, Millennium Management, Citadel, Attestor and Redwood Capital Management. Together, the group holds 35% of the $3.3 billion in senior notes SVB issued and 41% of the preferred stock. When such panels hold more than 34% of any class of debt, they often have veto power over any payout plan they oppose.

Vice, the brash digital-media disrupter that charmed giants like Disney and Fox into investing before a stunning crash-landing, is preparing to file for bankruptcy, the New York Times reported. The filing could come in the coming weeks. The company has been looking for a buyer, and still might find one, to avoid declaring bankruptcy. More than five companies have expressed interest in acquiring Vice, according to a person briefed on the discussions. The chances of that, however, are growing increasingly slim. A bankruptcy filing would be a bleak coda to the tumultuous story of Vice, a new-media interloper that sought to supplant the media establishment before persuading it to invest hundreds of millions of dollars. In 2017, after a funding round from private-equity firm TPG, Vice was worth $5.7 billion. But today, by most accounts, it’s worth a tiny fraction of that. In the event of a bankruptcy, Vice’s largest debtholder, Fortress Investment Group, could end up controlling the company. Vice would continue operating normally and run an auction to sell the company over a 45-day period, with Fortress in pole position as the most likely acquirer.

Bankruptcy Judge Mary F. Walrath on Friday approved a multibillion-dollar business wind-down for Reverse Mortgage Investment Trust (RMIT), one day after a delay allowed the company to provide additional information on funding for its liquidation, National Mortgage Professional reported. On Thursday, Judge Walrath halted RMIT's scheduled confirmation hearing after raising concerns about the feasibility of the company's plans to meet top-priority case administration claims without further reorganization. By Friday morning, however, RMIT had filed a revised order, plan and declaration that addressed the judge's concerns. The plan includes proposals for financing a case with $1.23 billion in long-term funded debt and a mortgage-servicing portfolio that totaled over $25.5 billion when the company filed its chapter 11 petition. The revised declaration includes a more comprehensive description of the expected estate funding that would be available throughout the wind-down and explains how administrative claims are to be paid, according to Patrick Venter of Sidley Austin LLP, an attorney representing RMIT. RMIT filed for bankruptcy at the end of November, citing rising interest rates and a downturn in new loans for its liquidity crisis. RMIT is one of the largest originators of reverse mortgages in the U.S., with the majority of its reverse mortgage portfolio insured by the Federal Housing Administration (FHA) and pooled into mortgage-backed securities guaranteed by the Government National Mortgage Association (Ginnie Mae).

Lannett Co. said it plans to file for bankruptcy with a restructuring agreement that will help the generic-pharmaceutical company cut $511 million in debt, WSJ Pro Bankruptcy reported. Trevose, Pa.-based Lannett said yesterday it plans to file for chapter 11 in the U.S. Bankruptcy Court in Wilmington, Del., to restructure its debt with secured lenders through a debt-for-equity swap, a deal that has support from holders of more than 80% of its senior secured notes due in 2026 and all second-lien lenders, according to a press release. The company will hand over control to its secured lenders as a result of the restructuring, Lannett said. The company had roughly $750 million in total liabilities as of late December, according to a regulatory filing. Lannett in February raised its revenue guidance for fiscal year 2023 to a range of $285 million to $305 million, while reporting a narrower second-quarter loss of 88 cents per share. In early April, Lannett said “continued competitive pressures” were among factors that triggered its negotiation with key secured creditors about a balance-sheet restructuring. At that time, the company also said it was skipping an interest payment on its unsecured convertible notes. That would trigger a debt default if the company fails to make the payment within 30 days.

Akorn Pharmaceuticals has issued a voluntary recall of its drugs following the company's decision to close shop, USA TODAY reported. The recall list is comprised of 75 human drugs and 9 veterinary drugs, and is not associated with any adverse events, but with the company's February chapter 7 bankruptcy filing, in which they have agreed to shut down. The shutdown includes the closing of their quality program, meaning "the company will not be able to support or guarantee that the products will meet all intended specifications through the labeled shelf life of the product," the company stated in a press release. Akorn products were distributed to wholesalers, retailers, manufacturers, medical facilities, repackagers and consumers via the internet. The company is notifying distributors by mail and asking them to notify consumers and retailers about the recall. They are further advising that consumers discard their recalled products and get in touch with their doctor. For questions regarding the recall, consumers can get in touch with an Akorn at 800-932-5676 available Monday through Friday from 8 a.m. to 5 p.m. CDT.

The operator of the former Bell Bank Park sports complex in Mesa, Ariz., filed for bankruptcy more than a year after opening, seeking a sale to repay roughly $300 million in defaulted municipal debt, WSJ Pro Bankruptcy reported. Legacy Cares, the nonprofit operator of the 320-acre sports complex, filed for chapter 11 on Monday, saying in court filings that it would seek to sell its assets, which are “severely underwater.” It listed $242 million worth of assets and over $366 million of liabilities in its filings with the U.S. Bankruptcy Court in Phoenix. The nonprofit, which had borrowed in the municipal bond market to build the park, defaulted on its interest payments last year. Revenue fell far short of projections, and Legacy Cares recently hired restructuring firm Miller Buckfire to consider options. The park loses roughly $1 million a month on its operations, a burn rate that will only increase as it approaches the summer, its slowest part of the year, according to Legacy Cares’ court papers. It has lined up a $9 million loan from UMB Bank NA, the trustee for municipal bondholders, to fund the expenses of the chapter 11 case.

Revlon Inc. will emerge from bankruptcy under new ownership and a new board of directors that includes former executives from Bloomin’ Brands Inc., Sephora and Walgreens Boots Alliance Inc., the Wall Street Journal reported. The reorganized beauty products company’s new board was selected by Glendon Capital Management LP, King Street Capital Management LP, Angelo Gordon & Co. and Nut Tree Capital Management LP, lenders to the business that are taking control in chapter 11. Revlon’s bankruptcy ended nearly four decades of ownership by billionaire financier Ronald Perelman, who bought the company in 1985. It sought protection from creditors last year as it faced a heavy debt load, inflation and supply-chain pressures. Debra Perelman, his daughter, has been Revlon’s chief executive officer. She will remain CEO as well as a board member as it passes to new owners.

Bankrupt cryptocurrency lender Genesis Global Holdco and a key creditor group have agreed to meet with a mediator in an effort to save a proposed bankruptcy exit plan backed by the company’s parent, Digital Currency Group, Bloomberg News reported. Genesis lawyer Sean O’Neal said on Friday that the crypto lender has agreed to a 30-day mediation period including its committee of unsecured creditors, which has opposed the proposed restructuring deal. Genesis is hoping to hold two “substantive” mediation sessions before May 8, O’Neal said. Final terms of the deal will also be made public when mediation is terminated, he said. Genesis and the committee still need to pick a mediator who will oversee the discussions. O’Neal told Judge Sean Lane that they have started reaching out to a list of mediators and will submit an order to the court outlining the process once a mediator is picked. The creditors’ committee is opposed to Genesis’s current restructuring proposal and is seeking better terms, Bloomberg News has reported. Philip Abelson, a lawyer representing the creditors’ committee, said his client’s position hasn’t changed “and we do not want our participation in the mediation to be misconstrued.”

To resolve a split of circuits, the Supreme Court heard oral argument in Tyler v. Hennepin County to decide whether a real estate tax foreclosure violates the Takings Clause of the Fifth Amendment when a municipality takes title but doesn’t give the owner the difference between the unpaid taxes and the value of the property. Oral argument on April 26 was the last argument of the term that began in October. Given the significance of the case in terms of constitutional law, the Court allowed almost two hours for argument. The Court will hand down a decision before the term ends in late June. The decision in Tyler may (or may not) resolve a long-standing circuit split on the question of whether a tax foreclosure can be attacked in bankruptcy as a fraudulent transfer.​​​​