Bankruptcy & Restructuring News & Analysis

General Motors and OnStar have asked a New York bankruptcy court to block the State of Texas from pursuing civil penalties based on pre-2009 bankruptcy conduct. The motion claims Texas improperly transformed a data collection lawsuit to include decades of alleged misconduct by the former GM entity, potentially undermining bankruptcy sale protections

The Chapter 11 trustee for Synapse Financial Technologies has requested to end the company's bankruptcy case due to lack of funds and failed sale attempts. The case revealed a significant discrepancy of up to $95 million between recorded and actual funds, while the trustee managed to facilitate the return of most of the $219 million in customer funds despite receiving no compensation for her efforts

A Delaware bankruptcy judge has clarified insurers' rights to participate in their insureds' bankruptcy proceedings following the Supreme Court's Truck Insurance decision. Judge Goldblatt's opinion in the AIO US bankruptcy case establishes important boundaries for insurer involvement while preserving courts' authority to maintain the integrity of the bankruptcy process

Essex Technology Group has filed a motion to dismiss its Chapter 11 bankruptcy case after ceasing operations in February 2025. The retailer has negotiated an agreement with secured creditors to transfer its remaining assets in exchange for payment of administrative expenses, avoiding a costly conversion to Chapter 7 liquidation

Women's footwear wholesaler Zigi USA has filed a reorganization plan in the Southern District of New York, offering unsecured creditors a 30-45% recovery through a trust funded with $1 million. The company, which cited COVID-19 impacts as the primary cause of its financial troubles, will continue operations while addressing approximately $19.7 million in debt