Bankruptcy & Restructuring News & Analysis

In a landmark ruling for bankruptcy proceedings, Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York has approved Spirit Airlines' use of third-party releases with an opt-out mechanism in its Chapter 11 reorganization plan. The decision addresses objections from the U.S. Trustee and SEC while providing important guidance on what constitutes proper consent for such releases following the Supreme Court's 2024 Purdue Pharma decision. Spirit's restructuring includes debt-to-equity conversions and exit financing arrangements that will allow most creditors to receive full recovery

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