DOJ, SEC charges filed in connection with defaulted Legacy Cares bonds : The U.S. Attorney's Office for the Southern District of New York and the Securities and Exchange Commission on Tuesday each announced charges against individuals in connection with two municipal bond offerings totaling more than $280 million, proceeds from which were used to finance construction of an Arizona sports complex that tumbled into default and bankruptcy.
Non-Creditor was Entitled to Actual Notice of A Chapter 11 Plan’s Injunction Barring Suits Against Insurance Carriers | Patterson Belknap Webb & Tyler: A federal district judge recently affirmed a bankruptcy judge’s ruling that a non-creditor was entitled to actual notice of an injunction that would bar the non-creditor from suing the debtors’ insurance carriers. In re Boy Scouts of America and Delaware BSA LLC, No. 24-382, 2025 WL 893001 (D. Del. Mar. 24, 2025). The trustee had argued that the non-creditor was entitled to constructive notice, not actual notice. But both the bankruptcy and district court judges disagreed, ruling that both constitutional due process and the U.S. Bankruptcy Rules required actual notice.
Forever 21 Proposes to Give Major Lenders Maximum 3% Recovery - Bloomberg: Forever 21 Inc.’s bankrupt US retail operator is proposing that lenders get little — if anything — owned to them under a reorganization plan.
Private companies added 155,000 jobs in March, more than expected, ADP says: Private payroll gains were stronger than expected in March, countering fears that the labor market and economy are slowing, according to a report Wednesday from ADP
Fifth Circuit Holds that Gatekeeping and Injunction Provisions in Bankruptcy Plans Cannot Shield Non-Debtors From Liability | Cadwalader: On March 18, 2025, the United States Court of Appeals for the Fifth Circuit held in In re Highland Capital Mgmt., L.P., that a plan’s gatekeeping and injunction provisions could not extend to claims against most non-debtors or non-estate fiduciaries. 2025 WL 841189 (5th Cir. Mar. 18, 2025). The Highland decision demonstrates that, at least in the Fifth Circuit, gatekeeping and injunction provisions cannot shield most non-debtors from liability
Venezuela Bondholders Find Path to Repayment in Citgo Auction: The leading bid for Citgo favors creditors whose collateral rights over the refiner are in dispute
Alabama Bill Would Allow Debt Restructuring for Clinic Boards: The Alabama General Assembly cleared a bill Tuesday allowing the state to consent to the restructuring of debt obligations of certain medical clinic boards and giving board members immunity
Fashion-Tech Startup Teeters as CEO Resigns Over Fraud Claim - Bloomberg: Retail entrepreneur Christine Hunsicker has resigned from her position as chief executive officer of CaaStle after the fashion-technology startup’s board of directors alleged she misrepresented the company’s performance to investors, according to a March 29 letter to shareholders seen by Bloomberg News.
