What we read this week [November 10, 2021] – Insolvency / Bankruptcy / Restructuring

What we read this week [November 10, 2021] – Insolvency / Bankruptcy / Restructuring


United States: What we read this week [November 10, 2021]

To print this article, simply register or connect to Mondaq.com.

Whether – and under what circumstances – should a debtor pay creditors a relief premium continues to be challenged in Connecticut bankruptcy courts. Last week, as reported Bloomberg, Justice Dorsey (Delaware) ruled that the debtor – Mallinckrodt Plc – did not need to pay a full premium to the senior lenders in order to reinstate those obligations under the debtor’s Chapter 11 plan. And in the Hertz Connecticut bankruptcy case, Judge Walrath heard argument on whether Hertz was obligated to pay bondholders post-petition interest and a reparation premium when the plan failed. reimbursed the bondholders’ claim and designated it as intact, as reported by the the Wall Street newspaper.

GE this week announced its split into three companies, separating its healthcare, aviation and energy divisions, as reported on the Wall Street newspaper. The move follows several years of corporate and debt restructuring that GE has undertaken since the financial crisis and reflects how big conglomerates, such as GE, have fallen out of favor with investors.

Economic news continues to focus on supply chain issues, and the New York Times covers an important link in the chain: truck drivers. The current shortage of truckers is expected to increase as more truckers retire. Potential solutions under discussion include easing restrictions on drivers under the age of 21 crossing state borders.

In a litigation emblematic of the financial distress the film industry continues to experience, Cineplex sued its former suiter Cineworld in Canadian court when it distanced itself from a potential acquisition after the pandemic. Cineplex alleged that Cineworld had “buyer’s remorse” and the steps it took after the pandemic to reduce costs should be considered “normal course” for the industry. Ontario Superior Court of Justice ruling expected shortly, says The Canadian Press.

Visit us on mayerbrown.com

Mayer Brown is a global provider of legal services comprising law firms that are separate entities (the “Mayer Brown Practices”). The Mayer Brown Firms are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, two limited liability companies established in Illinois in the United States; Mayer Brown International LLP, a limited liability company incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales under number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a partnership of Hong Kong and its associated entities in Asia; and Tauil & Checker Advogados, a Brazilian law partnership in which Mayer Brown is associated. “Mayer Brown” and the Mayer Brown logo are registered trademarks of Mayer Brown Practices in their respective jurisdictions.

© Copyright 2020. The Practices of Mayer Brown. All rights reserved.

This article by Mayer Brown provides information and commentary on legal issues and developments of interest. The foregoing does not constitute a complete treatment of the subject at hand and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action on the matters discussed in this document.

POPULAR POSTS ON: Insolvency / Bankruptcy / Restructuring from the United States


Previous Limetree Bay Suspends Purge Amid Bankruptcy | New
Next Building Better Borrowers - Bankruptcy - Remote Basics (Podcast) - Insolvency / Bankruptcy / Restructuring