Financial vehicles – Purple Ribbon Project http://purpleribbonproject.com/ Tue, 20 Sep 2022 00:08:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://purpleribbonproject.com/wp-content/uploads/2021/10/icon-12.png Financial vehicles – Purple Ribbon Project http://purpleribbonproject.com/ 32 32 Cancer victims urge court to end J&J bankruptcy hurdle to lawsuit https://purpleribbonproject.com/cancer-victims-urge-court-to-end-jj-bankruptcy-hurdle-to-lawsuit/ Tue, 20 Sep 2022 00:08:00 +0000 https://purpleribbonproject.com/cancer-victims-urge-court-to-end-jj-bankruptcy-hurdle-to-lawsuit/ Join now for FREE unlimited access to Reuters.com Register Sept 19 (Reuters) – People suing Johnson & Johnson over the company’s talc products urged an appeals court on Monday to revive their claims, saying the profitable company should not be allowed to use a subsidiary in bankruptcy to block lawsuits alleging the products cause cancer. […]]]>

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Sept 19 (Reuters) – People suing Johnson & Johnson over the company’s talc products urged an appeals court on Monday to revive their claims, saying the profitable company should not be allowed to use a subsidiary in bankruptcy to block lawsuits alleging the products cause cancer.

They asked a panel of the Philadelphia-based US 3rd Circuit Court of Appeals to dismiss the bankruptcy of J&J subsidiary LTL Management, saying LTL is a “concocted” company created solely for prevent them from getting their day in court.

J&J (JNJ.N), which maintains its talc products are safe, spun off LTL in October, handed over its talc responsibilities to it and filed the newly created subsidiary into bankruptcy days later.

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This restructuring strategy, known as “Texas Two-Step,” halted approximately 38,000 lawsuits J&J faced alleging its baby powder and other talc products contained asbestos and caused mesothelioma and ovarian cancer.

Critics, including lawmakers and legal experts, say J&J’s bankruptcy maneuver could provide a blueprint for other big companies to avoid juries in mass tort lawsuits.

Circuit Judge Julio Fuentes, during oral argument on Monday, asked cancer victims’ attorney Jeffrey Lamken if the bankruptcy court could provide more efficient resolution of claims than trying cases one by one in front of a court. other courts.

Lamken said the court shouldn’t make a blanket ruling on whether bankruptcy is “better” because its protections should be reserved for companies in financial difficulty and needing to reorganize.

He argued that cancer victims should be allowed to sue because bankruptcy requires an overall settlement to be reached through a lengthy court process before an individual case can be settled. LTL is under no pressure to act quickly because it has no operations and faces no penalties for remaining bankrupt, Lamken said.

David Frederick, representing a separate group of cancer plaintiffs, said bankruptcy allows LTL to pay “less money, slower”.

“Not a penny will be paid until the last call from the last naysayer is resolved,” Frederick said.

But J&J countered that bankruptcy court allows all current and future talc-related lawsuits to be settled together, which it says is the quickest and fairest way.

Litigation in other courts creates a wide variety of outcomes. Some plaintiffs will hit home runs and win big verdicts, while ‘most people won’t even get a turn at bat’, some will die before their cases go to trial, says LTL attorney Neal Katyal .

Perpetual litigation also creates significant “dead weight” in attorney fees and court costs, Katyal said.

The company has set aside $2 billion to settle the talc claims, which LTL executives describe as a starting point rather than a “cap”.

Prior to filing for bankruptcy, J&J was facing costs of $3.5 billion in verdicts and settlements, including one in which 22 women won a judgment for more than $2 billion, according to bankruptcy court records.

But more than 1,500 talc lawsuits have been dismissed without J&J paying anything, and the majority of the cases that have gone to trial have resulted in defense verdicts, mistrials, or judgments for the company in appeal, according to LTL court documents.

Cancer victims are asking the appeals court to overturn a New Jersey bankruptcy judge who allowed LTL’s bankruptcy to proceed. LTL’s bankruptcy filing automatically halted lawsuits against it, and U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey ruled in February that LTL’s bankruptcy should also bar talc lawsuits against parent company J&J. .

In refusing to dismiss the case, Kaplan said the bankruptcy court is better equipped to handle mass tort litigation than other courts.

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Reporting by Dietrich Knauth, Editing by Alexia Garamfalvi and Sam Holmes

Our standards: The Thomson Reuters Trust Principles.

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Teresa Kok files bankruptcy suit against Jamal Yunos for non-payment of court-ordered settlement https://purpleribbonproject.com/teresa-kok-files-bankruptcy-suit-against-jamal-yunos-for-non-payment-of-court-ordered-settlement/ Sun, 18 Sep 2022 08:06:07 +0000 https://purpleribbonproject.com/teresa-kok-files-bankruptcy-suit-against-jamal-yunos-for-non-payment-of-court-ordered-settlement/ File photo shows Seputih MP Teresa Kok after winning a defamation case against Jamal Yunos at the High Court in Kuala Lumpur on July 26, 2022. — Photo by Ahmad Zamzahuri By Yiswaree Palansamy Sunday, September 18, 2022 2:56 p.m. GMT KUALA LUMPUR, September 18 – Seputeh MP Teresa Kok has filed a bankruptcy suit […]]]>

File photo shows Seputih MP Teresa Kok after winning a defamation case against Jamal Yunos at the High Court in Kuala Lumpur on July 26, 2022. — Photo by Ahmad Zamzahuri

By Yiswaree Palansamy

Sunday, September 18, 2022 2:56 p.m. GMT

KUALA LUMPUR, September 18 – Seputeh MP Teresa Kok has filed a bankruptcy suit against Datuk Seri Jamal Yunos of Umno.

In a statement today, Kok said she decided to file a lawsuit through her solicitor SN Nair after Jamal failed to pay her a court-ordered settlement of RM351,479.45, following a successful defamation suit against him.

In July, the High Court ruled that Division Chief Sungai Besar Umno defamed Kok and ordered him to pay RM300,000 in restitution and RM50,000 in costs.

Judicial Commissioner Datuk Mohd Arief Emran Arifin’s decision was based on Jamal failing to prove his defense against Kok’s charges.

Kok was also represented by Jaden Phoon while Jamal was not represented by any attorneys after previously firing his appointed legal representative.

She filed a defamation lawsuit against Jamal in 2017 after he accused her and several other federal opposition lawmakers of embezzling Yayasan Warisan Anak Selangor (Yawas) funds as part of the Skim Mesra Usia Emas initiative during a press conference.

“To date, I have yet to receive any compensation or costs from Jamal. at RM351,479.45.

“Therefore, I have asked my solicitor SN Nair & Partners to file a bankruptcy notice against Jamal due to Jamal’s negligent and indifferent attitude.

“If Jamal still fails to comply with the requirements of the bankruptcy notice, bankruptcy proceedings will be commenced against him and he may be declared bankrupt at the end of the trial,” Kok said.

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Germany fears inevitable bankruptcy amid energy crisis https://purpleribbonproject.com/germany-fears-inevitable-bankruptcy-amid-energy-crisis/ Fri, 16 Sep 2022 10:05:16 +0000 https://purpleribbonproject.com/germany-fears-inevitable-bankruptcy-amid-energy-crisis/ The Bundestag is calling on the country to negotiate with Russia “with an open mind” as anti-Russian sanctions begin to take their toll on the deteriorating economy and energy shortage. German Bundestag (deutschland.de) In a tweet on Thursday, left-wing German politician and Bundestag Energy Committee Chairman Klaus Ernst referenced Chancellor Olaf Scholz’s statements that sanctions […]]]>

The Bundestag is calling on the country to negotiate with Russia “with an open mind” as anti-Russian sanctions begin to take their toll on the deteriorating economy and energy shortage.

  • German Bundestag (deutschland.de)

In a tweet on Thursday, left-wing German politician and Bundestag Energy Committee Chairman Klaus Ernst referenced Chancellor Olaf Scholz’s statements that sanctions shouldn’t hit Europe harder than Russia. herself: “We have now imposed seven sanctions packages and Gazprom is making record profits. At the same time, we are threatened with a wave of bankruptcies. Therefore: negotiate with Russia with an open mind.”

The EU’s biggest economy is set to contract in 2023 as gas and electricity prices continue to soar. According to the Ifo Institute for Economic Research, the Munich-based think tank, the ongoing energy crisis following the war in Ukraine is “taking its toll” on the German economy and they predict it could lead to a decline by 0.3% of GDP next year.

Deutsche Bank CEO Christian Sewing previously said that “therefore, we will no longer be able to avoid a recession in Germany. Yet we believe our economy is resilient enough to weather this recession well – provided central banks act quickly and decisively now,” noting that for now many Germans still have pandemic economies on which fall back to deal with soaring energy costs. , while most companies remain “sufficiently funded”.

However, Sewing warned that “the longer inflation remains high, the greater the tension and the greater the potential for social conflict.”

The German government approved a 65 billion euro relief package on August 4, which includes ever cheaper public transport and tax breaks for energy-dependent companies, as they have been the most affected by the most sharp price spike.

According to the Federal Statistical Office, German inflation reached nearly 8% in August after falling slightly in June and July.

German politician and fellow left-winger Sahra Wagenknecht condemned the government for dragging the country into a full-scale ‘economic war’ with Russia, which happened to be its main energy supplier, as she referred in the Bundestag regarding the fatal impacts that the Russian sanctions are having on Germany.

The Bundestag has warned that Germany’s economic health is at stake as energy prices soar out of control, which will serve as a ‘reminder of the good old days’, followed by Wagenknecht calling for the cancellation restrictions and engaging in talks with Moscow.

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Fulling files for bankruptcy of Bonjour HK founder https://purpleribbonproject.com/fulling-files-for-bankruptcy-of-bonjour-hk-founder/ Wed, 14 Sep 2022 02:19:23 +0000 https://purpleribbonproject.com/fulling-files-for-bankruptcy-of-bonjour-hk-founder/ Local financial firm Fulling has filed for bankruptcy for Hello Hong Kong founder Ip Chun Heng Wilson. The hearing is scheduled for the afternoon of November 8, 2022. According to the court order, a company named Fulling has filed for bankruptcy protection for the founder of local retailer Hello Hong Kong, Ip […]]]>

Local financial firm Fulling has filed for bankruptcy for Hello Hong Kong founder Ip Chun Heng Wilson. The hearing is scheduled for the afternoon of November 8, 2022.

According to the court order, a company named Fulling has filed for bankruptcy protection for the founder of local retailer Hello Hong Kong, Ip Chun Heng Wilson, Chung Pui Wan and Ip Wai Tung.

The bankruptcy petition is not open to the public for inspection, details of debts related to the case are not disclosed.

This is not the first time that ips have been involved in lawsuits. In December last year, Haifu International Finance said it lent HK$200 million to 真一who is believed to be related to Ip and his wife, but the two only paid HK$80 million, so the company asked the court to require 真一 and the couple to return the money, according to on.cc.

More recently, a company named Capital Union Inc filed for bankruptcy protection against Stephen Shiu Junior, chairman of HMV Digital China, after he was sued for more than HK$278 million in August. The hearing is scheduled for the afternoon of November 1, 2022. INTERACTIVE-MARKETING contacted Shiu for a statement. The bankruptcy petition is not open to the public for inspection, details of debts related to the case are not disclosed.

In 2019, Stephen Shiu Jr made headlines when he publicly apologized to Hong Kong creditors and staff for having to shut down music retail store HMV, according to SCMP. The tycoon revealed that the local unit of the iconic brand had suffered losses of HK$300 million in just two years, under pressure from the era of digital downloads. He also planned to conduct a liquidation sale of the company’s remaining stock of CDs and DVDs.

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Iconic cosmetics brand Revlon files for bankruptcy

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Eagle Senior Living emerges from bankruptcy https://purpleribbonproject.com/eagle-senior-living-emerges-from-bankruptcy/ Mon, 12 Sep 2022 04:17:16 +0000 https://purpleribbonproject.com/eagle-senior-living-emerges-from-bankruptcy/ Nine months after Eagle Senior Living voluntarily commenced Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware, the company announced Thursday that it has completed a comprehensive financial restructuring. The Wilmington, DE-based company operates independent living, assisted living and memory care communities in seven states: Alabama, Colorado, Florida, Minnesota, Ohio, Tennessee […]]]>

Nine months after Eagle Senior Living voluntarily commenced Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware, the company announced Thursday that it has completed a comprehensive financial restructuring.

The Wilmington, DE-based company operates independent living, assisted living and memory care communities in seven states: Alabama, Colorado, Florida, Minnesota, Ohio, Tennessee and Wisconsin.

“Through this process, we have achieved a strengthened financial structure, enabling our communities to be the place where residents can do more of what they love for years to come,” Todd Topliff, President of American Eagle Delaware Holding Co., said in a press release.

The sale of Vista Lake Assisted Living and Memory Care Community in Leesburg, Florida to Atlantis Senior Living marks the close of the Chapter 11 case.

In February, Atlantis was among the bidders for Vista Lake, according to court records. In addition to Atlantis, Eagle received qualified bids for the seniors community from Illuminate HC and Gold Standard of Care prior to the bidding deadline.

Illuminate originally won the bid to purchase the property for $7.1 million. By July 1, however, the company had defaulted on the terms of the sale, according to American Eagle Delaware Holding Co. The court agreed and allowed Eagle to follow second-highest bidder Atlantis at a purchase price of $4 million.

The pre-arranged bankruptcy filing was intended to allow Eagle to operate uninterrupted and “achieve a more balanced and sustainable capital structure, creating a stronger foundation for the long-term success of their communities,” according to one. Press release issued last month by American Eagle Delaware Holding Co.

Eagle Senior Living’s parent company, American Eagle Lifecare Corp., and management company, Greenbrier Senior Living, were not included in the Chapter 11 filing. Greenbrier continues to manage all of Eagle’s remaining communities.

“I would like to thank our residents and family members for their continued support, our business partners for their patience, and all of our loyal employees for their hard work and dedication to providing all residents with the highest quality care as we did it. worked to complete this process,” Topliff said. “We are optimistic about our future.”

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Power Co-op reportedly loses hundreds of millions owed to ERCOT from 2021 winter storm as part of bankruptcy plan https://purpleribbonproject.com/power-co-op-reportedly-loses-hundreds-of-millions-owed-to-ercot-from-2021-winter-storm-as-part-of-bankruptcy-plan/ Sat, 10 Sep 2022 11:11:15 +0000 https://purpleribbonproject.com/power-co-op-reportedly-loses-hundreds-of-millions-owed-to-ercot-from-2021-winter-storm-as-part-of-bankruptcy-plan/ Brazos Electric Power Cooperative is expected to file a final plan within days that will chart the Central Texas electric utility’s route out of bankruptcy and into financial stability, according to attorneys involved in the litigation. The proposed plan reduces the amount the Waco-based electric cooperative owes the Electric Reliability Council of Texas by hundreds […]]]>

Brazos Electric Power Cooperative is expected to file a final plan within days that will chart the Central Texas electric utility’s route out of bankruptcy and into financial stability, according to attorneys involved in the litigation.

The proposed plan reduces the amount the Waco-based electric cooperative owes the Electric Reliability Council of Texas by hundreds of millions of dollars, forces Brazos to sell three of its power plants, creates a fund for struggling low-income residents with high electrical problems. invoices and raises more than $1.5 billion in funding, according to court documents filed in U.S. Bankruptcy Court in Houston.

Brazos filed for Chapter 11 restructuring after ERCOT slapped the company with a $1.9 billion bill for electricity sold to Brazos during the February 2021 winter storm, which knocked out line power plants and caused prolonged blackouts across Texas.

“We believe we have an agreement in principle with all major stakeholders,” Lou Strubeck said. the lawyer representing Brazos. “There will be some final tweaks, but we believe we will have a plan in front of the judge next week for him to approve and allow us to start moving forward.”

U.S. Chief Bankruptcy Judge David Jones has scheduled a hearing for Sept. 13 to consider granting conditional approval of the tentative plan, which is called a disclosure statement.

Under the deal as it stands, Brazos will pay ERCOT more than $1.1 billion immediately and approximately $170 million going forward. In addition, ERCOT will receive part of the proceeds from the sale by Brazos of three of its power plants in 2023.

Lawyers involved in the bankruptcy say Brazos will not have to pay ERCOT about $500 million that ERCOT billed the electricity supplier.

“The settlement with ERCOT is unprecedented as it is the first time that ERCOT has made a settlement of this type,” Strubeck said. “This is one of the most complex and difficult bankruptcies I have ever handled.”

The agreement calls for Brazos and some of its cooperative members to raise between $1.5 billion and $2 billion through securitizations, which would take place in late 2022 and the first quarter of 2023. It also includes the creation of a fund of $140 million. hardship fund” that Brazos customers living near the poverty line can access to help pay their electricity bills – a measure suggested by Jones.

“I want a resolution,” the judge told lawyers at a hearing earlier this year, “for the person who lives in a trailer in central Texas and somehow lives with 1 $800 a month who can’t afford to double their electric bill because it means they can’t shop the last week of the month That’s what we have to work for.

Brazos blamed its bankruptcy on ERCOT for imposing a staggering $9,000 per megawatt-hour rate — hundreds of times the normal rate — on power buyers during the storm.

ERCOT maintains that the price was justified, given the extraordinary market conditions created by the storm and, moreover, that it had no choice but to impose the high price because it had been summoned to do so by the Texas Public Utility Commission.

Most legal experts thought a deal between Brazos and ERCOT was highly unlikely because the parties were so far apart on their demands.

The Brazos bankruptcy was costly. Since filing for Chapter 11 protection in March 2021, Brazos has paid more than $80 million to legal and financial advisers working on the restructuring.

In total, more than 150 lawyers from law firms – including Norton Rose Fulbright, O’Melveny, Kirkland & Ellis, Munsch Hardt, Porter Hedges, Foley and Eversheds – billed time on the issue. Their rates range from $400 to $1,700 per hour.

Two financial advisory firms, Berkeley Research Group and FTI Consulting, hit Brazos with tabs exceeding $10 million each.

For a longer version of this article, visit TexasLawbook.net.

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After violating court order, ex-lawyer Chris Pettit sent to jail https://purpleribbonproject.com/after-violating-court-order-ex-lawyer-chris-pettit-sent-to-jail/ Thu, 08 Sep 2022 21:00:00 +0000 https://purpleribbonproject.com/after-violating-court-order-ex-lawyer-chris-pettit-sent-to-jail/ Disgraced former attorney Christopher ‘Chris’ Pettit was sent to jail on Thursday for violating a bankruptcy court order he filed following lawsuits from former clients who allege he cheated them. defrauded of millions of dollars. U.S. Chief Bankruptcy Judge Craig Gargotta found Pettit in contempt of court after hearing testimony from Pettit, the family of […]]]>

Disgraced former attorney Christopher ‘Chris’ Pettit was sent to jail on Thursday for violating a bankruptcy court order he filed following lawsuits from former clients who allege he cheated them. defrauded of millions of dollars.

U.S. Chief Bankruptcy Judge Craig Gargotta found Pettit in contempt of court after hearing testimony from Pettit, the family of his child’s nanny and a former employee of his law firm – all of which convinced the lawyer that Pettit had not told the truth during the bankruptcy proceedings or about what happened to a laptop that may contain answers sought by creditors.

Pettit showed little emotion, appearing resigned when federal marshals handcuffed him to take him to jail.

Gargotta has granted a request by the Chapter 11 trustee overseeing Pettit’s bankruptcy assets that he be found in civil contempt for violating a court order barring him from transferring or disposing of any personal property.

The judge said he thought Pettit had crossed another legal line as well.

U.S. Chief Bankruptcy Judge Craig Gargotta charged former San Antonio attorney Christopher Pettit with contempt after a hearing on Thursday.

Jessica Phelps / Jessica Phelps

“It appears to the court that a crime has been committed, witness tampering, so the court is going to fire the FBI,” Gargotta said, adding that Pettit tried to influence the nanny’s family during her testimony on Thursday.

In their testimony, two family members said that under Pettit’s direction, they moved furniture and other valuables from a house on Champions Run to storage units and contacted an auctioneer to sell them. This contradicts what Pettit said during a hearing on the matter last week, when he testified via video that he “didn’t ask anyone to move anything” from the house.

Recorded phone call

The judge also overheard a telephone conversation between Pettit and the nanny’s daughter, who recorded it. The call came after questions were raised about missing belongings from the Champions Run home.

“It all comes down to, if I order your mom and dad to sell stuff, then they’ll throw me in jail,” Pettit was heard saying. “If your mum, dad, brother were just trying to help me pack things up and decided to contact this auctioneer to help, then that’s perfectly fine because I didn’t order them to sell things But they will try to manipulate the language.

In that recording, Pettit also said the judge was “corrupt” and had been in rehab, and that the Chapter 11 trustee’s attorneys were “evil” and looking for a way to send him to jail.

Also on Thursday, Sophia Gonzales, a former secretary at Pettit’s law firm, said days before he and his firm filed for bankruptcy, Pettit asked him to retrieve a laptop and USB drives he had used. in his office in San Antonio. At his direction, she said, she shipped the items to him at a home where he lives in Florida.

Attorneys for the trustee presented a receipt for the shipment and text messages from Pettit thanking Gonzales for sending the items he requested.

Last week, Pettit testified that he didn’t know what happened to his work laptop, which attorneys for the trustee want to examine. Again on Thursday, he said he did not know where the computer was and denied that anyone sent it to him.

Returned to the FBI

Gargotta said there was no doubt that Pettit was in contempt of court.

“Most troubling for the court is the issue of the concealment of the work laptop before the bankruptcy filing,” the judge said, adding that he believed Pettit may have committed “bankruptcy crimes.” He said he was also referring this matter to the FBI.

“I’m only determining that it’s appropriate to refer to the FBI, not that a crime has been committed,” Gargotta said, leaving it up to the FBI and U.S. Attorney’s office to decide whether to. continue.

About 15 people, mostly former clients, filled half the courtroom for the hearing. Some appeared to laugh or express satisfaction when the judge ordered Pettit jailed. Most declined to comment afterward.

“He stole our trust with our money,” said a 77-year-old former client who said she lost nearly half a million dollars. She had hired Pettit for a real estate transaction. “Who can you trust now? »

The judge left Pettit the length of his time in jail. Gargotta ordered him to comply with a list of lawyers’ demands for the Chapter 11 administrator, including that Pettit produce the laptop, USB drives and passwords to access them so they could be examined. in a forensic manner. Once that was done, the judge said, Pettit would be released.

To attend Thursday’s hearing in person, as Gargotta ordered last week, Pettit said he drove his Porsche Macan from Florida and turned the vehicle over to one of the trustee’s attorneys. He made the trip with $300 on a cash card from his current job, he said.

Challenging exchanges

Before issuing his order, the judge ripped Pettit for trying to “smear” Gargotta’s case by falsely claiming the judge had been in rehab.

Pettit said one of his former lawyers told him that.

“Well, that’s a load of bullshit,” Gargotta replied.

The exchange continues:

Pettit: “I respect that, your honor.”

Gargotta: “Let’s be clear, it won’t be decisive for anything. But I’m not going to sit in my courtroom, having an exemplary record for over 30 years as a lawyer and judge, and smear it on you. Do you understand that?”

Pettit: “That was not my intention, Your Honor. I was repeating what (the former lawyer) had told me.

Gargotta: “Nice try. Don’t insult my intelligence. You can go sit down.

In his testimony, Gonzales also had harsh words for his former boss.

As a receptionist, she said she was the first person customers saw.

“Some of the clients I became friends with,” she said, sobbing. “I couldn’t sleep or eat because I couldn’t believe Mr. Pettit would do something like this. Clients kept coming to the office and I had no idea what was going on. He was never there for us.

Gonzales said she and other former employees were also misled by Pettit.

“Shame on you, Chris,” she said. “You lied to me and everyone else, especially your clients.”

More than a dozen lawsuits were filed against Pettit and his law firm, Chris Pettit & Associates, before the two filed for Chapter 11 bankruptcy on June 1. Pettit listed $27.8 million in assets and $115.2 million in debt in his personal bankruptcy, making him one of the largest. ever in San Antonio. Bankruptcies put an end to litigation.

The FBI also investigated.

guillermo.contreras@express-news.net | Twitter: @gmaninfedland

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The panel represents the voice of the parish in matters of bankruptcy https://purpleribbonproject.com/the-panel-represents-the-voice-of-the-parish-in-matters-of-bankruptcy/ Tue, 06 Sep 2022 15:41:27 +0000 https://purpleribbonproject.com/the-panel-represents-the-voice-of-the-parish-in-matters-of-bankruptcy/ Father Thomas Mull, the weekly celebrant, is seen on the Sunday Mass set on News10 NBC from Rochester. (Photo by News10NBC) Chairing a parish steering committee related to the bankruptcy case of the Diocese of Rochester was a learning experience for Father Thomas Mull, parish priest of Notre-Dame de la Paix in Geneva. “When we […]]]>
Father Thomas Mull, the weekly celebrant, is seen on the Sunday Mass set on News10 NBC from Rochester. (Photo by News10NBC)

Chairing a parish steering committee related to the bankruptcy case of the Diocese of Rochester was a learning experience for Father Thomas Mull, parish priest of Notre-Dame de la Paix in Geneva.

“When we started three years ago, I and others knew very little about bankruptcy. It has been a learning-as-you-go process,” Fr Mull said. “I learned a lot, although I can’t say I wanted to know.”

The committee includes four additional pastors; a regional financial director; and two lay parish administrators (see below).

Represent the parishes

Priests on the committee represent all pastors, ensuring parishes have a voice in bankruptcy proceedings, Fr Mull said. Still, he noted that church staff are unfamiliar with bankruptcy law, so they rely heavily on attorneys to explain court proceedings “at an elementary school level.”

Suzanne Krebs, regional finance director for Chemung, Schuyler, Steuben and Tioga counties, said she brings a practical financial perspective to the committee by explaining parish financial concerns as well as budgeting and other financial procedures.

“The parishes of the diocese have worked very hard to reach a fair and equitable settlement for the survivors,” she observed, acknowledging that the delays in the case have been frustrating. “Progress has been much slower than I expected.”

Father Mull noted that COVID-related restrictions were significantly slowing down the mediation process. “Doing meditation through (virtual means) is a real, real challenge,” he said. “COVID has really slowed us down. Once we can see each other again, things move on.

Mediation requires strict confidentiality

Working closely with the committee is bankruptcy attorney Timothy P. Lyster, a Woods partner Oviatt Gilman who represents all diocesan parishes in bankruptcy proceedings.

Lyster, a Our Lady of Lourdes parishioner, said the committee helps with legal representation for parishes regarding the bankruptcy case, by attending various mediation sessions and meetings with individual parishes.

During parish sessions, “We get questions from pastors and finance directors, and try to answer them as best we can,” Father Mull remarked. But he noted that all participants are required to keep the negotiations confidential, so they are not able to tell their colleagues much.

“We don’t want people to think we’re hiding things,” but participants are bound by confidentiality and often can’t predict what’s going to happen next, he said. “Things change from meeting to meeting.”

Confidentiality is key “to protect the survivors and protect the process” by maintaining trust between participants, Father Mull added, noting that no one wants to say the wrong thing and derail the process.

“I personally feel that there is trust” between the participants in the mediation, he said. “I’ve come to really respect a lot of the lawyers we’ve worked with, not just their patience with us, but also their sincerity in reminding us that our goal is to bring some kind of justice to people who have been wronged. … For me, that has been a healthy thing and a good thing. Sometimes I think … we should remind them of the need for justice and the recognition that when we sin, we have to make amends for that sin.

Civil cases move forward

Lyster and litigator William G. Bauer of Woods Oviatt also represent parishes in approximately 350 civil lawsuits that are beginning to make their way through the state court system.

Early in the bankruptcy process, the committee representing victims of abuse agreed to a “standstill agreement” under which victims refrain from moving forward with cases. However, as mediation efforts bogged down, the survivors’ committee declined in early spring to renew the agreement, and in a May 23 ruling, U.S. Bankruptcy Judge Paul R. Warren denied the petitioner’s request. diocese to suspend actions against parishes.

Lyster said the majority of parishes are facing cases, which “are now scheduled for initial status conferences with (state Supreme Court) Justice Deborah Chimes.” The process calls for the parties to confer and agree on a discovery planning order and business to pursue, he said.

“These types of cases usually take a while to come to trial,” he said, especially given the large influx of cases and the backlog of courts due to the coronavirus pandemic. COVID.

Global settlement is the goal of the bankruptcy process

Nonetheless, he said, “we are still working towards a consensual resolution…of the abuse claims against the parishes through mediation and the bankruptcy filing.”

If the parties can reach a global settlement, they will ask the bankruptcy court to enter a “channeling injunction” redirecting survivors’ claims against the parishes to be satisfied from a settlement trust, Lyster said.

“So here, just in general terms, the idea would be to limit any recovery to the assets of the settlement trust, thereby relieving parishes and other Catholic-affiliated entities from continued exposure through litigation,” he said. -he declares.

Expressing optimism that this goal can be achieved “as soon as possible,” Fr. Joseph A. Hart, pastor of Our Lady Queen of Peace and St. Thomas More, Brighton, said a channeling injunction has been a key part of settlements in each of the other U.S. dioceses that have resolved historical abuse claims through bankruptcy, and that remains the hoped-for outcome here.

“The fact that (all parties) are back in mediation indicates that there are possibilities here, but there still needs to be give and take on both sides,” added Fr. Hart, who served as diocesan vicar general. from 1998 to 2015.

Father Mull agreed. “I think you have to stay optimistic. It’s a very slow process of give and take, building trust with the people we deal with back and forth.

“I tell (parishioners) to keep praying and praying for a just end to all of this,” he said.


Members of the parish committee

  • Father Augustine Chumo, Immaculate Conception, Ithaca
  • Kevin Foy, Parish Administrator, Holy Cross, Rochester
  • Brett Granville, Parish Administrator, Mother of Sorrows, Greece
  • Father Joseph Hart, Our Lady Queen of Peace and St. Thomas More, Brighton
  • Father Matthew Jones All Saints, Corning
  • Suzanne Krebs, Regional Director of Finance, Chemung, Schuyler, Steuben and Tioga Counties
  • Father Thomas Mull, President, Parish of Our Lady of Peace, Geneva
  • Father James Schwartz, St. Joseph and Holy Spirit, Penfield.
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U.S. leveraged loan defaults hit two-year high after $4.5 billion in deposits in August https://purpleribbonproject.com/u-s-leveraged-loan-defaults-hit-two-year-high-after-4-5-billion-in-deposits-in-august/ Sun, 04 Sep 2022 13:47:00 +0000 https://purpleribbonproject.com/u-s-leveraged-loan-defaults-hit-two-year-high-after-4-5-billion-in-deposits-in-august/ Default activity in the U.S. leveraged loan market revived in August following the bankruptcy filings of four issuers in the Morningstar LSTA US Leveraged Loan Index pushed $4.46 billion in institutional loan debt to non-performing status. After historic lows, the index’s default rate fell to 0.69% by number of issuers and 0.60% by amount, from […]]]>

Default activity in the U.S. leveraged loan market revived in August following the bankruptcy filings of four issuers in the Morningstar LSTA US Leveraged Loan Index pushed $4.46 billion in institutional loan debt to non-performing status.

After historic lows, the index’s default rate fell to 0.69% by number of issuers and 0.60% by amount, from 0.43% and 0.28% respectively in July.

There was more defaulted loan volume in August than in the previous 17 months combined.

Leader in size among the default indices, international endo filed for Chapter 11 protection in the Southern District of New York Bankruptcy Court to reduce its debt and settle lawsuits stemming from its alleged role in the opioid epidemic in the United States.

The drugmaker’s Term Loan B, placed in 2021 to refinance existing debt, had $1.975 billion outstanding at the time of filing, marking the largest issuer default since SeaDrill Partners‘ $2.6 billion loan in July 2020.

According to Endo International’s Chapter 11 petition, the company has total assets of $6.33 billion and total debts of $9.54 billion. The shareholders listed on the petition include The Vanguard Group, with a 12.07% stake; BlackRock, with a 7.93% stake; Paulson & Co., with a 7.37% stake; and Renaissance Technologies, with a 7.07% stake.

Endo’s India-based entities are not part of the Chapter 11 proceeding, the company said, adding that it plans to file recognition proceedings in Canada, the United Kingdom and Australia.

The drug company is the latest in high-profile Chapter 11 filings to address opioid claims. Of the other loan index issuers, Mallinckrodt recently emerged from bankruptcy after placing $1.9 billion in index-linked loans into bankruptcy in October 2020.

Also under the umbrella of Health, Medical Imaging Society Carestream Health filed for bankruptcy in the District of Delaware. The recapitalization envisioned by the pre-packaged plan will eliminate about $470 million in debt. The Carestream term loan had $507.7 million outstanding, according to court documents.

Citing rising printing costs and reduced mail demand, OSG Billing Services filed for Chapter 11 bankruptcy with a plan that would leave all creditors intact or with assessed recovery at 100%.

According to the company’s disclosure statement, the proposed plan of reorganization would amend and restate the company’s existing senior term loan, outstanding in the amount of approximately $599 million, with a slightly larger facility to an amount of $601.4 million. The restated loan would mature in June 2026, and the new interest rate would be an adjusted Sofr+225 bps (including 75 bps paid in cash and 150 bps paid in kind), subject to a Sofr floor of 1%, according to a term sheet attached to the company’s RSA, also filed with the commercial court.

Rounding out the busiest month for default business since July 2020, the fixture maker Lumileds filed for Chapter 11, citing challenges caused by supply chain constraints, Covid-related issues, and the dispute in Ukraine over the company’s excessive leverage. Lumileds, a developer and manufacturer of lighting products that primarily serve the automotive, smartphone, and industrial end markets, had $1.61 billion outstanding on its Term B loan maturing in 2024, according to court documents.

Imminent situation?
Looking at potential short-term situations, a UK-based cinema operator cineworld confirmed that it was considering a Chapter 11 filing in the United States and ancillary proceeding in other jurisdictions as part of a possible balance sheet restructuring.

Cineworld last warned of its ability to continue in business when it released its 2021 annual results in March. Among other headwinds — including the pandemic and competition from online movie streaming — the company is appealing more than $900 million in damages awarded to former merger partner Cineplex after it waived an agreement to buy the Canadian group in June 2020.

With $3.49 billion in loans across three facilities in the Loan Index, a Cineworld Chapter 11 filing would be the largest loan default by a single issuer since McDermott International placed $3.52 billion in term loans into bankruptcy in 2018.

In theory, a Cineworld default would bring August’s default rate (in amount) to 0.87%.

A potentially less immediate, but still urgent situation has emerged from the long-time loan originator Avaya. The telecommunications and software company – which entered the loan market for LBO financing in 2008 – has already made its way to Chapter 11. Again, the company is warning of its ability to continue its activity after announcing an almost 70% year-over-year decline in adjusted EBITDA in preliminary results for the third quarter of fiscal 2022, and at the same time announcing this, it is working with advisers to assess options on its 2.25% convertible notes due June 2023 Avaya has three term loans in the Morningstar LSTA US Leveraged Loan Index totaling $1.89 billion.

More generally, stress indicators continue to increase, but remain well below long-term averages.

According to data from LCD, the “below 80” cohort of performing index loans nearly doubled in the past six months, to $45 billion, but for context, at the height of the pandemic market crash in March 2020 , it skyrocketed to $672 billion.

August’s distressed volume translates to 3.19% performing loans in the Morningstar LSTA US Leveraged Loan Index. Although this is the highest month-end reading since October 2020, it is still well below the 10-year average of 4.23%.

In a latest measure of credit risk trends, downgrades outpaced upgrades for a third consecutive month (a 16-month upgrade cycle for the asset class was halted in June). On a rolling three-month basis, the downgrade of loan facilities in the Morningstar LSTA US Leveraged Loan Index topped upgrades of 1.89x in August, down from 1.74x in July and 1.32x in June.

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Different judicial approaches to objections to a bankruptcy petition https://purpleribbonproject.com/different-judicial-approaches-to-objections-to-a-bankruptcy-petition/ Sat, 03 Sep 2022 07:53:08 +0000 https://purpleribbonproject.com/different-judicial-approaches-to-objections-to-a-bankruptcy-petition/ JTo protect the legitimate rights and interests of debtors and creditors in bankruptcy proceedings, if they disagree with a bankruptcy petition listed on the creditors’ rights checklist, the Bankruptcy Act d The company grants the right to raise an objection and take legal action regarding any dispute regarding the confirmation of bankruptcy claims. To increase […]]]>

JTo protect the legitimate rights and interests of debtors and creditors in bankruptcy proceedings, if they disagree with a bankruptcy petition listed on the creditors’ rights checklist, the Bankruptcy Act d The company grants the right to raise an objection and take legal action regarding any dispute regarding the confirmation of bankruptcy claims. To increase the efficiency of bankruptcy trials, Article 8 of the Provisions (III) on Several Matters Concerning the Application of the Corporate Bankruptcy Law states that when the bankruptcy administrator has finished explaining or to adjust the claims based on the grounds and legal basis invoked by the opponent, or decides not to explain or adjust, the opponent may initiate legal action or arbitration within 15 days of the examination claims of creditors at the meeting of creditors. In practice, courts have different understandings and practices regarding the trial of an opponent. This article summarizes the content and judicial opinions of court documents across China in hopes of shedding light on the inconsistency.

DIFFERENT INTERPRETATIONS

Wang Zhenxiang
Partner
Jingtian and Gongcheng

When the clock starts ticking. In most cases, the 15-day period runs from the end of the examination of the opposing claims by the competent meeting of creditors. However, in some regions, the starting point is considered the day the objector receives the writing issued by the administrator, based on the aforementioned provisions stipulating that the administrator may offer explanations or adjustments. This opinion was confirmed by the Higher People’s Court of Hebei Province in Detaiquan Special Steel vs. Mingjun Xintai Tourism Development (2021). The Shanghai Higher People’s Court and the Shenzhen Intermediate People’s Court both require administrators to provide a written response to objectors and allow them a reasonable period of time of at least 15 days from receipt of the written response, giving them gives ample opportunity to take legal action.

Roles in opposition trials. According to the Beijing High People’s Court, the debtor’s objection statement must be made by the debtor’s registered legal representative. If the right of the controlled creditor is secured, the guarantor must be notified of the inspection in writing and has the right to bring legal action to confirm the bankruptcy claims with the bankruptcy court if he believes that the adjustments are illegal. The Jiangxi Higher People’s Court made similar demands. The Sichuan Higher People’s Court further requires that where the debtor finds it difficult to file a lawsuit on his own behalf, a legal representative, shareholder/sponsor, director or supervisor may do so on his behalf, with any advantage of winning the lawsuit going to the debtor. The Shandong Higher People’s Court provides that: when the debtor opposes bankruptcy claims on the creditors’ rights checklist, the opposing creditor will be listed as a defendant; where a creditor opposes the claims of other creditors on the checklist, the opposing creditor is the defendant; when the creditor opposes his own claim, the debtor is the defendant; and where multiple parties oppose the same application, all opponents are listed as co-applicants. The Sichuan court also provides that where a creditor opposes the claims of other creditors, the debtor can be registered as a third party.

Nature of the 15-day period. As for the 15-day time limit for filing a lawsuit, court documents have yet to clearly define its legal nature, and court documents in various regions indicate an inconsistency in its interpretation. In Chen Hao vs. Wuhan Oriental Yixin Construction et al (2019)the civil judgment regards the 15-day period neither as a limitation of action nor as a lapse period, but as a guiding requirement with harmful consequences similar to the claim period, and a lawsuit can be brought after its expiration.

In China Chemistry Engineering No. 4 Construction v Shandong Jinshunda Group et al (2019), the court ruled that the 15-day period was peremptory and rejected the opponent’s request. In the 2021 Ping An Bank Taiyuan Branch Bankruptcy Application Confirmation Case, the court ruled that since the opponent did not file a lawsuit within 15 days, he was deemed to have consented to the results of the inspection during the meeting of creditors, therefore re-confirmation of the decisions of first and second instance of revocation.

Can the 15 day period be adjusted? In Weng Xiaoxiong v Xieli Hexing Real Estate Development (Pingtan) et al (2021), the court held that the 15-day period, the legal period given to opponents to bring a legal action, is not subject to termination, interruption or extension for any reason whatsoever. However, according to the Chongqing No. 5 Intermediate People’s Court, opponents can apply to the court for an extension of the 15-day period due to force majeure or for other reasonable reasons (for example, the administrator fails to publish a review result within the prescribed period) in accordance with Article 83 of the Civil Procedure Law.

Consequences of a late trial. According to the judgment procedures of the superior courts of Shandong, Jiangxi and Beijing, the opponent must file a lawsuit challenging the bankruptcy claims within 15 days, otherwise the claims are upheld. Judgment procedures of the higher courts of Chongqing, Sichuan, Yunnan and Shanghai, as well as the intermediate court of Shenzhen, indicate that if no legal action is taken, it will be considered that all parties consent or do not have no objection to the bankruptcy petitions.

ANALYSIS OF LEGAL EFFECTS

Based on various court regulations and practices, the author believes that the 15-day period is more like a statute of limitations for action. Defining it as a legal time limit in the sense of procedural law comes close to its legislative purpose, while Article 83 of the Code of Civil Procedure can also be applied to prevent any loss of the opponent’s rights for legitimate reasons.

Since corporate bankruptcy law allows creditors to make additional filings if the time limit is exceeded, considering the 15-day time limit as peremptory would seem to contradict such regulation. Furthermore, since it usually takes a long time for confirmed bankruptcy applications to be granted, simply treating the 15-day period as a guiding settlement with a slap on the wrist may not be enough to achieve the goal. to urge opponents to speed up any trial. and improving the efficiency of bankruptcy proceedings.

RECOMMENDATIONS

In the absence of consensus in both legal regulations and judicial practice, the author advises debtors and administrators to respect the practice of the courts of Chongqing and Shanghai, and to fully inform the creditor of the starting point of the 15 days, the consequences of an objection, whether it can be extended and, if so, for what legitimate reasons, as well as other information relevant in the context of the official confirmation of the application for bankruptcy. The author advises creditors to place greater emphasis on timelines provided by statutes and legal interpretations, improve the effectiveness of communication with administrators, and bring legal action within prescribed timelines.

Wang Zhenxiang is a partner at Jingtian & Gongcheng

交通

Room 3001, Area A, China Resources Tower
No.1366 Qianjiang Road, Hangzhou 311500, China

Tel: +86 571 8992 6523

Fax: +86 571 8992 6501

Email: wang.zhenxiang@jingtian.com

www.jingtian.com

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