What we read this week [March 7, 2022] – Insolvency/Bankruptcy/Restructuring
United States: What we read this week [March 7, 2022]
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Reuters reports that Mahwah Bergen Retail Group – the former owner of retail clothing brand Ann Taylor – has obtained bankruptcy court approval of its revised reorganization plan, from which certain non-debtor releases have been removed. The revised plan comes after the U.S. District Court for the Eastern District of Virginia ruled that non-debit 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 misleading customers. The company has been sued in recent years by the city of Los Angeles and the state of New York for its deceptive marketing practices. While those lawsuits have since been settled, the company explains in its Chapter 11 filing that the bankruptcy process would help streamline its process for resolving any potential future legal claims. [Bloomberg; March 2, 2022]
Law360 discusses the recent US trustee 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 simply to avoid a $6.25 million judgment and should therefore be dismissed as having been filed in bad faith. [Law 360; March 2, 2022]
According to a recent Fitch report, US airlines generally avoided bankruptcies due to large cash balances, manageable debt and substantial government support, while Latin American airlines were hit hardest with three of the most major Latin American carriers that have filed for Chapter 11. [Fitch; March 1, 2022]
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