How Bed Bath & Beyond is hedging its bankruptcy bet

How Bed Bath & Beyond is hedging its bankruptcy bet

Bed Bath & Beyond (BBBY) is hedging its bankruptcy bets, simultaneously posturing for a wind down while also vying to stay in business.

The dual-track strategy emerged Sunday as the home goods retailer filed for protection of its assets under Chapter 11 of the US Bankruptcy Code.

A Chapter 11 filing typically helps financially distressed companies work out a plan with their creditors to reorganize debt and emerge as a viable entity. But Bed Bath & Beyond announced it would focus on liquidating assets, a path typically pursued as part of a Chapter 7 bankruptcy.

The failed housewares chain said the dual-track strategy was the best way to maximize value for stakeholders. A press release stated it had already initiated a liquidation sale, though would conduct a limited marketing process to solicit interest in some or all of its assets.

“In the event of a successful sale, the company will pivot away from any store closings needed to implement a transaction,” the company said.

Other distressed companies have taken a similar path. David’s Bridal, which filed for Chapter 11 protection on April 17, also elected for a dual-track sale-liquidation process. And retailer Toys R Us similarly chose

… Read the rest
April 29, 2023 by ATTORNEY

How Chester’s bankruptcy puts civil rights cases on pause

How Chester’s bankruptcy puts civil rights cases on pause

Oxman said it is devastating for his clients, even the ones for whom he has not formally filed cases.

“I have at least a half dozen of those. The question is, do I even move forward with them if I know there’s no way I will be able to collect a claim for my client,” Oxman said.

But one of the more remarkable things about a municipal bankruptcy is that it doesn’t matter if someone has already filed an actual lawsuit or not.

“The question is when the claim arose, when the harm was, and when did that happen? And so if someone was harmed before or during the bankruptcy, if that’s when the alleged police brutality or other civil rights violations or other personal injury has happened, they’re going to be considered a creditor in this case, whether they file a lawsuit or not,” Jacoby said.

Attorneys might steer away from Chester clients ‘if there isn’t any money to collect’

In any personal injury case, whether it’s police misconduct, a motor vehicle accident, or even a medical malpractice case, attorneys for the plaintiff take these cases on a contingent fee basis.

According to Oxman, a vast majority of

… Read the rest
April 23, 2023 by ATTORNEY

FTX’s bankruptcy lawyers and advisers pocket $32.5M in February

FTX’s bankruptcy lawyers and advisers pocket .5M in February

February’s round of legal expenses for bankrupt crypto exchange FTX has been published, and it remains a scary figure for debtors.

A series of court filings from April 4 to April 10 detailed the monthly fee statements for February of the law firms involved with FTX’s bankruptcy proceedings, which come to a combined total of around $32.5 million.

The figure didn’t include the recompense for restructuring chief and CEO John J. Ray III, who pocketed $305,000 in February, according to a March court filing.

Ray’s remuneration for March came in at a similar figure, with an April 10 filing showing his total fees and expenses were $329,173.

The FTX chief billed at $1,300 per hour and reported working 255.9 hours for the period of March 1 to March 31. This makes his fees a whopping $327,470, with the remaining $1,703 for airfares, lodging, transport, meals and other expenses.

FTX’s bankruptcy lawyers and advisers pocket .5M in February
John J Ray III’s expenses and hourly billings for the month of March. Source: Kroll

The law firm Quinn Emanuel Urquhart and Sullivan sought a total of over $2.7 million in reimbursements for February. Partners at the firm billed between $1,246 and $1,917 per hour and associates billed between $747 and $1,183

… Read the rest
April 16, 2023 by ATTORNEY

Golden Knights goalie Robin Lehner accused of fraud in bankruptcy case

Golden Knights goaltender Robin Lehner was accused of fraud in connection with his ongoing Chapter 7 bankruptcy case.

Aliya Growth Fund, a creditor in the bankruptcy of Lehner and his wife, Donya, petitioned the court to require the NHL goalie to pay back $4.75 million tied to a loan the company provided, according to new court documents.

In a separate court filing, American Express is seeking the repayment of nearly $100,000 in charges made by the Lehners.

Both Aliya and American Express made claims of fraud against the Lehners in the court filings.

The Review-Journal reached out to the Lehners’ attorney for comment but didn’t receive a response.

The Lehners filed for Chapter 7 bankruptcy in December with the U.S. Bankruptcy Court in Las Vegas. They owe creditors $27.3 million against personal property of $5.1 million, according to documents filed with the court in February.

The majority of the Lehners’ debt is tied to Phoenix-based solar technology company SolarCode LLC; a reptile farm in Plato, Missouri; a 20 percent stake in a reptile and avian zoo in Punta Gorda, Florida; and other personal property.

The couple used the loan from Aliya to pay down debts tied to two other loans:

… Read the rest
April 13, 2023 by ATTORNEY

Cancer Victims’ Lawyers Vow to Fight J&J Proposed Settlement

Attorneys who have led the charge in litigating cancer claims against Johnson & Johnson denounced the company’s deal with talc claimants as a sham and disgrace to many people who say J&J’s products gave them cancer.

J&J on Tuesday announced a $8.9 billion agreement with talc claimants as it placed subsidiary LTL Management LLC into bankruptcy for the second time. The proposed deal would compensate people who say J&J’s talc-based powders caused cancer, the company said.

The deal, which would pay claimants over the course of 25 years, would bring about a global resolution to the legal saga, J&J said. But many of the firms that have litigated against J&J on behalf of cancer victims for years, representing tens of thousands of claimants, say they were intentionally left out of the settlement. The proposal, they say, offers victims far less than they deserve.

“I strongly believe that the law firms that understand the case, the seriousness of the injury, the costs to the claimants in medical care, couldn’t possibly support something like this,” said Michelle Parfitt, a partner at Ashcraft & Gerel who as co-head of the talc litigation steering committee has helped oversee more than 40,000 claims during multidistrict

… Read the rest
April 12, 2023 by ATTORNEY
January 2025
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031