Below is our initial take on recent bankruptcy-related developments:
Boy Scouts Fall Short of Desired Vote on $2.7 Billion Abuse Settlement | The Wall Street Journal
The Boy Scouts of America fell just shy of the 75% level of support needed from sex-abuse victims for its settlement plan to recover the organization from bankruptcy.
S&K Take: With 73% of claimants voting in favor of the plan, just short of the debtors’ desired 75%, parties are already going back to the drawing board (at least according to the Tort Claimants’ Committee).
Judge Orders Mediation for Purdue, Sacklers Over Opioid Settlement | Reuters
U.S. Bankruptcy Judge Robert Drain ordered parties in the Purdue Pharma bankruptcy to a previously rejected deal over mediation.
S&K Take: A successful mediation might deprive us of a Supreme Court decision on nonconsensual non-debtor releases. Although considering the long road to get to this point we could still see a Second Circuit decision and subsequent appeal.
Purdue's 2nd Circ. Appeal Request To Get Quick Decision | Law360
Please note that Law360 membership is required to access the full summary of this article.
U.S. District Court Judge Colleen McMahon will decide this week whether Purdue Pharma’s request to appeal her earlier order vacating the bankruptcy plan confirmation.
S&K Take: Double the Purdue this week – Judge McMahon should issue a decision soon (perhaps by the time this is posted on Friday) on whether Purdue can take up an appeal of her interlocutory order immediately.
St. Croix Energy Seeks Emergency Stay of Auction and Sale Orders While It Appeals Auction Results | BMC Group
S&K Take: A hearing on the original winning bidder’s stay motion is scheduled to be heard on January 11th. Time will tell whether we will see yet another change to the identity of the winning bidder.