Bankruptcy & Restructuring News Headlines for Friday Aug 20, 2021

Here's what we are reading this morning:

Shuttered Silicon Valley Hotel Wins Ch. 11 Plan OK - Law360: A high-end San Jose, California, hotel shuttered and pushed into a Delaware bankruptcy in March by pandemic-related business downturns secured confirmation Wednesday for a plan that will put the Silicon Valley site under the Hilton flag, with a former management company's challenges and claims shuffled into arbitration.

Hilco Real Estate Analysis of Trustee Appointments in $2M+ CRE Bankruptcy Cases: 2020 vs 2021 data shows a meteoric rise in Subchapter V appointments - 188% increase; It appears this rise has affected other categories of trustee appointments (see decline in Chapter 7 appointments). Hilco believes this proves that raising the maximum debt limit significantly altered the trustee appointment landscape.

New Jersey Megamall in the Swamp Is Once Again Sinking in Debt - Bloomberg: Since its groundbreaking nearly two decades ago, the megamall built in New Jersey’s Meadowlands has done little except hemorrhage cash. Now, less than two years after its much-delayed opening, the complex known as American Dream is threatening to dash the lofty ambitions of yet another developer.

Greensill Capital Files for Bankruptcy in U.S., Seeking Halt to Lawsuit: The remnants of the financing company that was tipped into insolvency when Credit Suisse froze investment funds it relied on filed for bankruptcy in the U.S., aiming to halt litigation from one of its biggest clients.

Opioid Abuse Is ‘Truly Horrible Problem,’ Mortimer Sackler Says - Bloomberg: Another member of the billionaire Sackler family that owns Purdue Pharma LP testified in the company’s bankruptcy trial, calling opioid overdoses “a truly horrible problem” that the drugmaker tried to fight with a harder-to-abuse version of its OxyContin painkiller.

Boy Scouts’ $850 Million Abuse Victim Deal Gets Court Approval: The Boy Scouts of America received court approval to enter into an $850 million settlement addressing more than 80,000 child sexual abuse claims, a key step in the organization’s efforts to emerge from bankruptcy free from the threat of mass tort litigation.

Former Purdue Pharma Director ‘Shocked’ by Drugmaker’s Guilty Plea: Former Purdue Pharma LP director Mortimer D.A. Sackler testified Thursday he was “shocked and disappointed” when he learned last year the drugmaker his family owns pleaded guilty to federal felonies over its marketing and sale of the opioid OxyContin, saying management assured the board it was complying with relevant laws.

Private equity carve-outs ride post-COVID wave | White & Case M&A Explorer: PE investors stand ready to fund spinoffs of non-core assets as companies refocus for the recovery

Wells still drying up despite California groundwater law | CalMatters: As drought worsens, there are few, if any, protections in place for California’s depleted groundwater. The new law gave local agencies at least 26 years — until 2040 — to stop the impacts of over-pumping.

The U.S. Economy Is Leaving Midsize Companies Behind: Data suggests that a perfect storm has been brewing for midsize companies over the past 50 years. In every successive decade since 1970–79, the annual growth rates of assets, sales, and profits have been declining for midsize companies, which are increasingly struggling to earn profits.

Canada's Housing Market: Mortgage Debt Is Rising at Its Fastest Pace Since 2007 - Bloomberg: Canadians are piling into mortgages at more than double the historical pace as the housing market appears to moderate after a pandemic boom.

Current Reports (Form 8-K) Filed With the Securities & Exchange Commission (SEC) Regarding Material Impairments (Item 2.06) for the Week Ended Thursday Aug 19, 2021:

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