Below is our initial take on recent bankruptcy-related developments:
According to an SEC filing, film studio STX Entertainment placed an indirect subsidiary company holding the rights to The Contractor, a thriller movie starring Chris Pine and Ben Foster, into Chapter 11 bankruptcy.
S&K Take: We don’t see many Hollywood films, particularly those yet to be released, tied to a bankruptcy case. Particularly in Louisiana. But here we are. This case seems to be slow-developing, however. Creditor 30 West, which purportedly financed and produced “The Contractor,” is the only party that seems to want to resolve this urgently -- the Debtors noted that they need time to negotiate with all parties-in-interest. The movie is slated for release April 1.
Aeromexico, which filed for bankruptcy during the pandemic, said it has emerged from bankruptcy and plans to modernize and upgrade its fleets.
S&K Take: One of a couple large airlines which filed during the pandemic, Aeromexico has emerged from bankruptcy. Domestic carriers have seemingly dodged the bullet (thanks to government support of course). LATAM is another airline progressing through a bankruptcy, having just received approval of its Disclosure Statement.
S&K Take: It seems as though bankruptcy activity might be picking up, although this filing, one of the larger filings in recent months, seems to be the product of litigation. Online grocery retailer Buyk also filed, and the company asserts that the filing was precipitated by the conflict in Ukraine and related sanctions. With the global unrest and rapidly rising interest rates, it is possible that bankruptcy professionals could be in line for more action, which has been sorely needed.
S&K Take: With the J&J (LTL) case being permitted to stay in bankruptcy after an informative decision by Judge Kaplan, interested parties are starting to ask which entity could be the next to seek to implement the “Texas Two-Step.” This article posits that it could be 3M and Dow (through its subsidiary union Carbide). That question could be mooted, however, if Congress were to act to prohibit the legal maneuver through legislation (which has already been introduced). Given the often glacial pace of bankruptcy reform, it seems unlikely that will happen soon. More filings would likely increase debate and attention from critics and proponents alike. So buckle in.