What We’re Reading This Week [March 10, 2020]
Law360 reports that Purdue Pharma LP is seeking a 180-day extension of a preliminary injunction put in place earlier in the bankruptcy process that halted litigation relating to Purdue’s role in the national opioid crisis not only against the debtors themselves but also against the debtors’ current and former owners, officers, directors, employees, and associated entities. In their motion seeking to extend the preliminary injunction, the debtors argued that such an injunction is necessary to continue working towards a collaborative solution to addressing the thousands of claims against the debtors and their owners that precipitated the bankruptcy filing. [Law360; Mar. 5, 2020]
The Financial Times is reporting that coronavirus (also known as COVID-19) is raising the risk of reducing global credit availability in a global market with already low (and in some cases negative) interest rates. [FT; Mar. 4, 2020]
Pioneer Energy Services Corp. filed for chapter 11 relief, reports the Wall Street Journal. Pioneer’s prepackaged chapter 11 plan seeks to swap $300 million in senior secured note debt for most of the equity in the reorganized company. If the plan is confirmed, Credit Suisse, Ascribe Capital and Loomis, Sayles & Co. would take control of the reorganized company. [WSJ; Mar. 4, 2020]
Judge Kevin Gross of the United States Bankruptcy Court for the District of Delaware recently ruled on apportionment of business interruption insurance proceeds and property damage insurance proceeds in In re PES Holdings, LLC, et al., finding that a bank that served as an oil and gas intermediary to the debtors’ refineries had first priority on $1.25 billion in business interruption insurance proceeds. Judge Gross further found that property damage insurance proceeds were to be split between one of the debtors’ secured lenders and a bank that served as a crude oil supply and finished-product shipping and financing intermediary to the debtors’ refinery. The debtors’ official committee of unsecured creditors sought, but was not awarded, a share of insurance proceeds. Law360 reports that this opinion will be Judge Gross’s last opinion before retirement. [Bankr. Ct. D. Del.; Feb. 28, 2020 | Law360; Feb. 28]
