Bankruptcy & Restructuring News Headlines for Tuesday Jul 13, 2021

Here's what we are reading this morning:

Automatic Stay Must Give Way: Bankruptcy Court Lets Non-Core Claims Be Decided Through Arbitration | Dechert LLP - JDSupra: In a recent opinion, the Bankruptcy Court for the District of Maryland dealt with a conflict between the strong presumption in favor of enforcing arbitration agreements and the Bankruptcy Code’s emphasis on centralization of claims. Based on an analysis of the two statutory schemes and their underlying policies and concerns, the Court decided to lift the automatic stay to allow the prepetition arbitration proceeding to go forward with respect to non-core claims.

CTA ridership has gone up twenty percent since May and continues to grow, officials say - Chicago Tribune: Since January, overall ridership has gone up 56% to 4 million rides a week, according to the CTA, rising as the city and state reduced restrictions related to COVID-19.

Attention Kmart shoppers: The Astor Place location is now closed after 25 years in business: After nearly 25 years on Astor Place, Kmart has closed this once-prime retail outpost. Yesterday was the last day in business for the struggling retailer.

Court Rules That Litigation Trust Does Not Have To Pay Quarterly Fees To U.S. Trustee | Fox Rothschild LLP: Chief Judge Sontchi determined that the quarterly fee requirement of 28 U.S.C. § 1930(a)(6) is triggered only by “payments by or on behalf of the debtor.” The litigation trust was not paying any expenses on behalf of the debtors, but for the beneficiaries of the trust.

Chinese Chip Maker Says Creditor Seeks Its Bankruptcy - WSJ: The state-backed chip maker said it had received a notice from a Beijing court saying that Huishang Bank Corp Ltd. , a Hong Kong-listed bank based in Anhui province, has requested the court to start bankruptcy and reorganization proceedings, on the grounds that it has failed to repay its debts, according to a Unigroup filing to the Shanghai Stock Exchange.

As California wineries lose insurance, some fear this fire season will be their last: Many California wineries can no longer get wildfire insurance.

Warby Parker Glasses Bought in Stores Is How Retailer Plans to Grow After IPO - Bloomberg: As Warby Parker heads toward becoming a public company, the co-founders of the eyewear brand valued at $3 billion are pitching a growth strategy centered on stores. It’s quite a turn for a company that last decade ignited a boom in digital brands that convinced investors to bet billions largely on their ability to grow quickly online.

Q3'21 Supply Chain Outlook: The fallout from short-term planning | S&P Global Market Intelligence: Retailers have struggled to keep up with demand and manufacturers have run short of specific components in the first six months of 2021. Much of the same will continue given a short-term focus in corporate planning.

United States Files Complaint and Reaches Agreement on Stipulation with Limetree Bay Terminals LLC and Limetree Bay Refining LLC Relating to Petroleum Refinery in St. Croix, U.S. Virgin Islands | OPA | Department of Justice: Today, the U.S. Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA), filed a complaint in federal court in the U.S. Virgin Islands against Limetree Bay Terminals LLC and Limetree Bay Refining LLC (jointly Limetree Bay) alleging that the companies’ St. Croix petroleum refinery presents an imminent and substantial danger to public health and the environment. In a stipulation filed simultaneously with the complaint that acknowledges that the refinery is not currently operating and that Limetree Bay does not intend to restart the refinery at the present time, Limetree Bay has agreed to a number of requirements, including the following:

Wildfires Explode as Heat Wave Scorches the West for Another Day - The New York Times: The heat, compounding already dry conditions from a drought deepened by climate change, fueled a megafire that forced evacuations this weekend across Klamath County in Oregon and threatened the electrical power grid for neighboring California. Fire officials called its intensity “unprecedented” this early in the state’s fire season.

U.S. Virgin Islands Refinery Files Repeat Chapter 11 After Raining Oil on Neighbors: A major oil refinery in the U.S. Virgin Islands filed for bankruptcy protection for the second time in six years as federal authorities labeled it a danger to public health, dealing a blow to a private-equity investor and the U.S. territory’s struggling economy.

Current Reports (Form 8-K) Filed With the Securities & Exchange Commission (SEC) Regarding Bankruptcy or Receivership (Item 1.03) for the Week Ended Monday Jul 12, 2021:

Pipeline Foods details Chapter 11 bankruptcy plans | Food Business News: Pipeline Foods said it expects to seek approval to sell its grain inventory outside of the ordinary course at market prices in an effort to facilitate the company’s use of cash collateral.

Limetree Bay Files for Chapter 11 - Limetree Bay: Limetree Bay intends to use the Chapter 11 process to engage in discussions with its lenders, creditors, equity owners and others to evaluate options to maximize the value of the estate and recoveries for stakeholders, including exploring a potential sale of its assets.

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