What We’re Reading This Week [March 7, 2022]
Reuters reports that Mahwah Bergen Retail Group – the former owner of the Ann Taylor retail clothing brand – obtained bankruptcy court approval of its revised reorganization plan, from which certain non-debtor releases were removed. The revised plan comes after the U.S. District Court for the Eastern District of Virginia held that the non-debtor releases contained in an earlier version of the plan were void and unenforceable. [Reuters; March 3, 2022]
Bloomberg reports on a new bankruptcy filing by Lear Capital Inc., a gold and silver coin dealer previously accused of deceiving customers. The company was sued in recent years by both the City of Los Angeles and the State of New York for its deceptive business practices. While those suits have since been settled, the company explains in its Chapter 11 petition that the bankruptcy process would help it simplify its process for resolving any potential future legal claims. [Bloomberg; March 2, 2022]
Law360 discusses the United States Trustee’s recent filing in support of the dismissal of a Chapter 11 case filed by government contractor Team Systems International LLC. The US trustee argues that Team Systems’ case appears to have been improperly filed merely to avoid a $6.25 million court judgment and should therefore be dismissed as having been filed in bad faith. [Law 360; March 2, 2022]
According to a recent Fitch report, U.S. airlines generally avoided bankruptcies due to sizable liquidity balances, manageable debt and substantial government support while Latin American airlines were harder hit with three of Latin America’s largest carriers filing for Chapter 11. [Fitch; March 1, 2022]
