Bankruptcy & Restructuring News & Analysis

A Delaware bankruptcy judge denied a landlord's $125,000 administrative priority claim for cleanup costs in the American Tire Distributors bankruptcy, ruling the expenses constitute rejection damages rather than administrative expenses. The court also dismissed the landlord's separate claim against the asset purchaser for lack of jurisdiction.

Pine Gate Renewables filed an emergency motion seeking court approval of bidding procedures for a three-way solar asset sale featuring stalking horse bids totaling $1.4-1.5 billion from existing lenders. The proposed expedited process includes a December 17 auction with strict qualification requirements for competing bidders

Cryptocurrency lender SmartFi has requested to convert its Chapter 11 bankruptcy case to liquidation, citing $2 million in unpaid professional fees and failed reorganization efforts following the 2022 crypto market collapse. The company's assets include $41,000 in cryptocurrency and over $21 million in affiliate promissory notes.

A major lender is challenging the bankruptcy filing of a special purpose entity in the First Brands Group case, alleging improper authorization and contractual violations. Aequum Capital Financial II LLC seeks dismissal of Broad Street Financial's Chapter 11 case, claiming the bankruptcy-remote entity violated protections designed to keep it out of bankruptcy.

Office Properties Income Trust seeks bankruptcy court approval for an $11 million sale of its vacant Tempe, Arizona office complex to Opus Development Company. The REIT has been carrying $720,000 in annual costs on the property since American Airlines vacated in November 2023.