A corporate restructuring and bankruptcy BLOG

    InfoWars dismissal, TPC mega-filing, David Tepper calls it quits, and distressed real estate on the rise.

    What's News
    June 3, 2022

    Below is our initial take on recent bankruptcy-related developments:

    Infowars’ Bankruptcy Law Shell Game | Axios

    Infowars, the far-right conspiracy website, used controversial tactics by filing for bankruptcy to avoid damages to his company in the defamation suit brought by Sandy Hook parents. The Department of Justice is seeking to dismiss the bankruptcy case, which they see as “undermining the integrity of the bankruptcy system.”

    S&K Take: The InfoWars debtors have agreed to dismiss the cases now that the defamation claims are outside of the purview of the bankruptcy. Seems like an ill-fated attempt to quarantine the defamation liability in the debtor entities, like a Texas Two-Step light. All in all, it’s a pretty odd situation, although perhaps that was to be expected knowing the debtor.

    Chemical Maker TPC Group Files Pre-Arranged Bankruptcy | Reuters

    Stemming from debt and legal fees resulting from an explosion at one of its plants in 2019, Texas-based chemical producer TPC Group, has filed for Chapter 11 bankruptcy, hoping to eliminate the majority of its $1.3 billion in debt.

    S&K Take: Another mega-bankruptcy in 2022. Has the tide turned? Anecdotally, it feels like there has been more restructuring activity and inbound inquiries. In any case, this one should be interesting, starting with the DIP. It seems like Judge Goldblatt is inclined to approve the proposed DIP, although it seems certain that the roll-up aspect will be challenged by a motivated group of non-participating noteholders.

    Tepper’s Real Estate Company Files Bankruptcy, The Final Blow to Panthers’ Rock Hill Project | The Charlotte Observer

    The real estate company established by David Tepper, the billionaire owner of the NFL’s Carolina Panthers, filed for Chapter 11 bankruptcy, ending the team’s pursuit of the largest team headquarters in the NFL.

    S&K Take: Another sizable filing, this one is also interesting. It appears as though the Panthers are walking away from building a new facility. Their plan in the bankruptcy is currently a mystery. Pony up and complete the build? Walk away? Sell the asset? Although how much will someone want to pay for a half-baked NFL facility? We will keep an eye on this one.

    Broker Sets Deadline for Lake Point Tower Penthouse Bankruptcy Sale | The Real Deal

    Hilco Real Estate will sell the circular 5,200-square-foot 70th floor penthouse unit of Lake Point Tower in Chicago in a bankruptcy sale open for bidding.

    S&K Take: This feels like the tip of the iceberg for distressed real estate. With interest rates rising quickly, a lot of projects might become untenable from an economic perspective. It is something S&K will be keeping a close eye on.

    The opinions expressed are those of the author(s) and do not necessarily reflect the views of the firm or its clients, or any of its or their respective affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal advice.

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