Bankruptcy & Restructuring News Headlines for Tuesday Jun 7, 2022

Here's what we are reading this morning:

Justices Ax US Trustee Fee Hike As Non-Uniform Law - Law360: The U.S. Supreme Court unanimously struck down a 2017 fee increase charged to Chapter 11 debtors in districts administered by the U.S. Trustee's Office, saying the law violated the clause of the Constitution that requires bankruptcy laws to be applied uniformly.

Justices Won't Hear Ch. 11 Equitable Mootness Case - Law360: The U.S. Supreme Court declined Monday to take up Florida developer Glenn Straub's request to review the doctrine of "equitable mootness" in a dispute over a bankrupt Palm Beach hotel that was used to orchestrate an EB-5 immigration visa fraud scheme.

American Dream Mall Risks Default After Drawing on Reserves: American Dream, the $5 billion super mall in New Jersey’s Meadowlands that was hit hard by the pandemic, is at risk of defaulting on municipal bonds after its owner failed to deposit money required to pay debtholders.

Audio App Clubhouse Lays Off Staff as Strategy Shifts - Bloomberg: Clubhouse, the social audio app that became a big hit during the early days of the pandemic, laid off multiple employees, according to people familiar with the reductions. The layoffs are part of a broader restructuring and rethinking of the audio app’s strategy.

Layoffs at SoftBank-Backed Gifting Startup Sendoso: Sendoso, which raised $100 million in Series C funding round last fall led by Softbank Vision Fund, just announced company-wide layoffs.

American Dream Mall Owner Skips Interest on $800 Million Municipal Bond - WSJ: The developer of American Dream, the $6 billion mega-shopping mall in East Rutherford, N.J., has failed to make its semiannual interest payment for an $800 million municipal bond, according to a notice to bondholders Friday.

More Reports of Cash Flow Issues for Spartan Race: According to Inside OCR, photographers contracting for Spartan Race events were told that the company "is having cash flow problems . . . we should expect it to get worse before it gets better, and the next 100 days 'are going to be hell.'"

Coinbase hiring pause for 'foreseeable future' and will rescind offers: Two weeks after announcing plans to slow hiring, crypto exchange Coinbase now says the freeze will extend into the “foreseeable future.” The company will also be pulling some accepted job offers.

Older Post Newer Post