Regional news: United States of America

Deloitte defeats Hong Kong breach of contract claim

The largest unsecured creditor of a California-based businessman has lost his bid to convince a Hong Kong court that Big Four firm Deloitte failed to ensure its employees acted with reasonable skill and care as bankruptcy trustees.

27 April 2021

ABI appoints new president-elect

Former Delaware bankruptcy judge Kevin Carey has been appointed president-elect of the American Bankruptcy Institute, as an Alabama-based senior partner from Reynolds Reynolds & Little takes the helm.

26 April 2021

Former parent’s Chapter 11 plan approved for spun-off group

A Switzerland-headquartered automotive parts supplier that entered Chapter 11 in the midst of hostile litigation over asbestos liabilities inherited from its former US parent will now be restructured through a consensual plan designed by that parent, in a case described as “a great example of what Chapter 11 can accomplish, even for a company with its centre of gravity outside of the US”.

23 April 2021

Ballard Spahr restructuring head joins Sheppard Mullin

Sheppard Mullin has continued its US hiring spree with the addition of Ballard Spahr’s head of restructuring in New York.

22 April 2021

Chapter 15 round-up: DTEK, Greensill and Samarco seek recognition in New York

Ukrainian coal miner DTEK has sought US recognition of its English scheme compromising New York bonds, while Greensill Bank’s German insolvency administrator and Brazilian mining company Samarco Mineração have also made Chapter 15 applications for their respective proceedings in Bremen and Belo Horizonte.

21 April 2021

Osler advising as US cannabis producer completes restructuring

Nevada-based cannabis producer Flower One has temporarily delisted its debentures in Canada so it can implement a restructuring; and struggling Canadian cannabis company CannTrust has secured an US$18 million credit facility in Ontario.

21 April 2021

Greensill and Archegos losses lead to Credit Suisse class action

Credit Suisse is facing a proposed class action in New York over allegations it hid defects in its risk policies so it could extend excessive leverage to scandal-hit trade finance provider Greensill and family office Archegos Capital – exposing it to billions of dollars of losses.

20 April 2021

Recognition of US judgment upheld in Canada

A Canadian footwear company will have to pay the professional costs of a US affiliate’s Chapter 11 case, after failing to overturn the recognition of a Nevada judgment in Saskatchewan on appeal.

20 April 2021

Bakrie Telecom can’t enforce Indonesian restructuring in US

Indonesian telecoms company Bakrie Telecom has secured Chapter 15 recognition of its Jakarta PKPU proceedings – but a New York court has declined to enforce its restructuring plan that contains third-party releases.

19 April 2021

DTEK to poll creditors on English schemes amid Russian objection

Ukrainian coal miner DTEK has won permission to hold creditor votes on two English schemes, despite opposition from a Russian bank creditor on lack of jurisdiction grounds.

16 April 2021

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