Bankruptcy & Restructuring News & Analysis — Conductor

SL Beverage Liquidation seeks Chapter 7 conversion amid inability to pay administrative claims, with DIP lenders refusing to fund plan confirmation. After liquidating Salt Life assets and completing store closures by January 2025, the Delaware bankruptcy case (No. 24-11468) faces over $1.85M in administrative expenses and $20.87M in priority claims. Polsinelli PC attorneys representing the debtors argue conversion is the most cost-effective path forward for creditor recovery

The U.S. Bankruptcy Court for the Southern District of Texas has overruled the U.S. Trustee's objection to independent director exculpation in Instant Brands' Chapter 11 case, finding that independent directors as fiduciaries of a debtor-in-possession are entitled to the same liability protections as bankruptcy trustees under Fifth Circuit precedent

A U.S. district judge has affirmed a bankruptcy court's decision to reduce and reclassify claims from aircraft lessors against Scandinavian Airlines System (SAS). Judge Lewis A. Kaplan ruled that the bankruptcy court correctly applied U.S. bankruptcy law rather than international aviation treaties in determining the priority of claims filed by CAVIC for two passenger aircraft that SAS continued to use after filing for Chapter 11 protection in 2022. The decision rejected CAVIC's argument that the Cape Town Convention should govern the claims, noting that Sweden had not made the necessary international declaration to give its domestic adoption of Alternative A international effect

AIO US Inc. and its debtor affiliates have filed a motion seeking approval of their disclosure statement and voting procedures for their Chapter 11 liquidation plan in Delaware Bankruptcy Court. Following a settlement with Natura and sale of substantially all assets, the debtors are proposing key confirmation dates with a potential confirmation hearing around May 22, 2025.

Heart of the Valley YMCA has filed an amended disclosure statement in its Chapter 11 case, outlining a plan to address $19.4 million in liabilities while continuing operations. The nonprofit proposes to pay all creditors in full, including restructuring secured claims with Redstone Federal Credit Union and the SBA. The organization, which serves over 26,000 members, recently sold its Camp Cha-La-Kee property for $2.35 million to strengthen its financial position as it works toward recovery after facing declining membership since the pandemic.