Bankruptcy & Restructuring News Headlines for Thursday Nov 11, 2021

Here's what we are reading this morning:

DC Solar Owner Gets 30 Years For $1B Ponzi Scheme - Law360: A California judge sentenced an owner of DC Solar to 30 years in prison Tuesday for masterminding a Ponzi scheme that bilked investors out of more than $1 billion.

New York companies expect to use less office space and employ fewer people, study finds | Crain's New York Business: 34% of companies said they plan to reduce their footprint in the city over the next five years

The Yale Law Journal - Forum: Pandemic Hope for Chapter 11 Financing: The pandemic revealed that the increasing complexity of debtors’ capital structure could supply competition in the Chapter 11 financing market, as other inside lenders increasingly challenge a debtor’s favored inside lenders. After discussing this surprising development, the Essay identifies several impediments and offers strategies for removing them.

Hertz Bondholders Seek More Cash Amid Stock’s Comeback: Bondholders of the formerly bankrupt rental-car company say it shouldn’t get to shower money on shareholders without paying roughly $270 million in bond premiums and interest stemming from its chapter 11 case.

Kumtor Gold Challenges the Practical Application of the Automatic Stay's Global Reach | Jones Day: Although the automatic stay contained in section 362 of the Bankruptcy Code theoretically extends worldwide, enforcing it against international creditors, particularly sovereigns, can present practical problems in its application.

Second Circuit Breathes New Life Into Madoff Trustee's Efforts to Recover Ponzi Scheme Payments | Jones Day: The court of appeals vacated a 2019 bankruptcy court ruling dismissing the trustee's claims against certain defendants because he failed to allege that they had not received the transferred funds in "good faith."

Gym Chain Equinox Obtains New Financing in Prelude to Potential SPAC Merger: Gym chain Equinox has obtained $255 million in new financing commitments from some of its lenders and executives at its majority owner, Related, as the cash-strapped company seeks to bolster its liquidity.

Botox Rival Cites FDA Delay for Possible Going-Concern Statement: Revance Therapeutics, whose potential Botox rival ran into resistance from the Food & Drug Administration, says it has enough cash to keep operating for at least 12 months. But in a regulatory filing late Tuesday, Revance says it may need to raise capital and “absent deferring and reducing certain costs previously planned as well as other mitigating actions, the commercial launch delay and its impact on our capital resources would raise substantial doubt with respect to our ability to meet our obligations to continue as a going concern.”

U.S. judge temporarily halts Johnson & Johnson talc cases, moves them to New Jersey | Reuters: A U.S. judge gave Johnson & Johnson a temporary reprieve from tens of thousands of claims that its talc-based products cause cancer, but handed the drugmaker a potential setback by moving the cases to a court where the outcomes might be less favorable.

J&J Talc Bankruptcy Case Moved to New Jersey From North Carolina - WSJ: A North Carolina bankruptcy judge ruled Johnson & Johnson picked the wrong place to file a chapter 11 case to try to resolve thousands of injury claims linking its talcum powder-based products to cancer, ordering the proceeding to New Jersey instead.

Delayed Interest Paid, Default to Be Averted: Evergrande Update - Bloomberg:

China Evergrande Pays Delayed Interest on at Least Two Bonds - Bloomberg: Customers of international clearing firm Clearstream received overdue interest payments on three U.S. dollar bonds issued by Evergrande, a spokesperson for Clearstream said. Two investors that hold two of the bonds confirmed that they received the payments, asking not to be identified because they weren’t authorized to speak publicly.

Evergrande Said to Meet Another Bond Payment Deadline - The New York Times: Evergrande has three bonds for which grace periods for interest payments are set to expire on Wednesday.

AMC CEO Adam Aron sold $25 million in shares Tuesday, after warning meme investors he would do so: AMC CEO Adam Aron has filed paperwork with the SEC that would permit him to sell 1.25 million shares of the company worth about $48 million at current prices.

Business Restructuring Review | November–December 2021 | Jones Day : The Business Restructuring Review is a publication of the Business Restructuring & Reorganization Practice of Jones Day

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