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    Purdue Deal Approved; Competing Plan on Park Ave?

    What's News
    March 11, 2022

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

    Purdue Gets Approval For New $5.5B Ch. 11 Sackler Deal | Law360

    Please note that membership to Law 360 is required to access the full summary of this article.

    An enhanced settlement was approved in New York court this week between members of the Sackler family who own bankrupt drugmaker Purdue Pharma LP and eight states and the District of Columbia.

    S&K Take: Purdue and the Sackler family took another step towards consummation of the revised settlement, with Judge Drain approving the deal. It will see a significant additional contribution from the Sacklers. One aspect of the deal that drew fire was $277 million of new settlement consideration allocated for the “Nine” (the objecting states/territories/districts that appealed the original plan). Certain states that had signed on to the initial deal argued that they should share in this amount, and if they were not permitted to do so, it was discriminatory. Judge Drain overruled that objection, noting that the amount is coming from a third party (the Sackler family) instead of the Debtors, and the Sacklers can allocate that amount as they see fit.

    Lenders File Rival Plan for HNA Group’s Park Avenue Skyscraper | Bloomberg Law

    Please note that membership to Bloomberg Law is required to access the full summary of this article.

    Lenders backing 245 Park Avenue, a prestigious New York office tower, asked a judge for approval to pursue a competing bankruptcy reorganization plan to bring the building out of bankruptcy.

    S&K Take: It is rare to see a bake-off on competing plans, but it looks like it is possible in the 245 Park Ave bankruptcy. While commercial real estate hasn’t seen a deluge of bankruptcy filings yet, the industry is certainly seeing distress. To wit, the Sheraton in New York City recently sold for a fraction of the price it was purchased for only a few years ago. Certainly an area where we could see more activity in the coming months.

    Texas Oil Driller Rockwall Energy Files Ch. 11 | Law360

    Please note that membership to Law360 is required to access the full summary of this article.

    Rockwall Energy Holdings LLC, a Dallas-based oil and natural gas explorer, filed for bankruptcy this week with plans to sell its assets.

    S&K Take: Rockwall Energy is the latest energy company to file for chapter 11 protection amidst the volatility in the energy market. It is unlikely to be the last, and the industry remains one of the few that has been seeing any bankruptcy filings.

    J&J Competing Cancer Victim Groups Complicate Unit’s Bankruptcy | Bloomberg Law

    The U.S. Trustee, the federal bankruptcy watchdog from the Justice Department, tried to set up two separate official committees representing asbestos-related cancer victims in Johnson & Johnson spinoff’s Chapter 11, one representing mesothelioma victims’ interests and another for ovarian cancer claimants.The U.S. Trustee, the federal bankruptcy watchdog from the Justice Department, tried to set up two separate official committees representing asbestos-related cancer victims in Johnson & Johnson spinoff’s Chapter 11, one representing mesothelioma victims’ interests and another for ovarian cancer claimants.

    S&K Take:Judge Kaplan has ordered that the “TCC2” be disbanded, although he gave the committee a stay of execution until April 12 so that it can pursue its appeal of his order allowing the case to continue in bankruptcy.

    Boy Scouts Judge Chews Out Bickering Attys As Trial Looms | Law360

    Please note that membership to Law360 is required to access the full summary of this article.

    S&K Take: The acrimony in the Boy Scouts case continues, as disputes arising in preparation for the confirmation trial have apparently prevented the parties from presenting a streamlined trial to Judge Silverstein. Obviously based on her comments, the Judge is far from pleased about that.

    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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