Bankruptcy & Restructuring News & Analysis

Tupperware Brands has filed its disclosure statement for a Chapter 11 liquidation plan following the sale of key assets to creditors. The iconic container company, which traces its roots to 1938, faced declining revenues and an unsustainable capital structure. The plan establishes a liquidating trust to distribute remaining assets, with secured creditors expected to receive partial recovery while equity holders will receive nothing

Facing mounting financial distress, healthcare provider Prospect Medical Holdings has requested bankruptcy court approval to close multiple Pennsylvania hospitals by mid-March, citing unsustainable operational losses and inability to secure new operators despite extensive efforts. The emergency motion highlights critical financial challenges with the Pennsylvania facilities recording nearly $92 million in EBITDA losses over the past six months

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