Regional news: North America

US trustee, creditor groups accuse LATAM of improperly soliciting votes

The US trustee’s office and at least three creditor groups have accused Chile’s LATAM Airlines of improperly soliciting votes for its Chapter 11 plan post-petition amid a slew of additional complaints that the plan is an “illicit deal” built on “hodge-podge” creditor classification, which unfairly benefits shareholders and is ultimately “fundamentally flawed”.

06 May 2022

Alston & Bird picks up new partner in Atlanta and counsel in New York

Alston & Bird has bulked up its restructuring practice with a partner hire from Bryan Cave Leighton Paisner, and a new counsel hire from King & Spalding who worked on global engineering group Isolux Corsan’s international restructuring.

06 May 2022

Westbrook and Paulus: “We are concerned about the future of insolvency”

Leading lights of the insolvency community Jay Westbrook and Christoph Paulus say they are concerned about what they see as an abuse of bankruptcies to shield third parties from liability.

05 May 2022

Glenn Agre hires Morgan Lewis bankruptcy head in New York

The former leader of Morgan Lewis & Bockius’ bankruptcy group has joined recently launched trial firm Glenn Agre Bergman & Fuentes in New York, telling GRR his new outfit offers him flexibility and a “virtually conflicts free environment”.

04 May 2022

Pachulski launches cannabis restructuring group

Pachulski Stang Ziehl & Jones has launched a cannabis restructuring practice, as its new leader tells GRR about the opportunities available for US creditors to enforce their rights amid a federal ban on the drug.

28 April 2022

Mallinckrodt secures approval of Irish scheme

Irish-US drugmaker Mallinckrodt has secured approval of its Irish scheme of arrangement, after the High Court in Dublin dismissed an unsecured creditor’s claim that the company’s Chapter 11 plan is “unfair and inequitable”.

28 April 2022

DLA Piper advises US architecture firm in planned Chapter 11 sale

With counsel from DLA Piper, architecture and design firm EYP has obtained permission from a Chapter 11 court to start an accelerated sale of its business to a private equity firm that purchased its secured debt, and tap into a debtor-in-possession financing facility it provided.

27 April 2022

Canadian energy supplier seeks Ch15 relief amid competitor lawsuit

The Canadian trustee of retail energy supplier Sunwave Gas & Power has secured a hearing for provisional Chapter 15 relief in New York, in a bid to stall litigation launched by a competitor who bought the supplier's US subsidiaries three years ago.

27 April 2022

Mallinckrodt creditors fail to block plan distributions again

Unsecured creditors of American-Irish drugmaker Mallinckrodt have failed in their latest attempts to delay the effective date of its Chapter 11 plan, after a US District Court found they would not be irreparably harmed if the drugmaker makes distributions while they appeal its plan confirmation.

26 April 2022

Toys R Us creditor trust fails in US claw back effort

More than three years after retailer Toys R Us’ US bankruptcy plan was approved, a trust representing its creditors has failed in a bid to claw back US$12 million from multinational logistics company UPS – while a Virginia court has held that the trust’s breach of fiduciary duty claims against executives of the retailer are time-barred.

22 April 2022

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