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Bankruptcy Updates

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A&O Shearman

Recognition of Aggregate Group’s 2024 English Restructuring Plan Denied in Germany

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In this alert, we consider the recent judgment of the Frankfurt court declining to recognize the effects of the Aggregate group’s 2024 English restructuring plan in respect of certain of its German law-governed debts....more

Mandelbaum Barrett PC

Turning Conflict Into Capital: Litigation as an Investment Strategy

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Traditionally, litigation has been viewed as a costly necessity. In today’s complex financial landscape, litigation is no longer just a cost center, it’s emerging as a dynamic investment tool across fund types. This series...more

Sheppard Mullin Richter & Hampton LLP

CFPB Secures Permanent Ban on Fintech Service Provider for Alleged Unfair Practices

On August 21, the CFPB filed a complaint and stipulated final judgment in the U.S. Bankruptcy Court for the Central District of California against a fintech service provider in Chapter 11 proceedings. The Bureau alleged...more

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Court Holds That SAFE Investors May Have Creditor Claims in Chapter 11

In In re Rhodium Encore LLC, the U.S. Bankruptcy Court for the Southern District of Texas ruled that holders of SAFEs should be treated as creditors because they possess creditor claims, not merely equity interests. The...more

Hogan Lovells

Aggregate / Furst – Successfully disputing recognition of Restructuring Plan

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Project Fürst purported to restructure its liabilities of over EUR 1 billion, for which the developer relocated to London in order to implement a “Restructuring Plan” under the English Part 26A regime. The Restructuring Plan...more

Skadden, Arps, Slate, Meagher & Flom LLP

Lessons From the Silicon Valley Bank Chapter 11: Preserving Indemnification and Contribution Rights

Can a bar date extinguish indemnification and contribution rights against a debtor even if the underlying lawsuit is initiated post-bar date? According to a June 2024 decision by Judge Glenn in the Silicon Valley Bank Chapter...more

Latham & Watkins LLP

Hong Kong Court Considers the Interplay Between Arbitration and Foreign Insolvency Proceedings

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The Hong Kong Court of First Instance rules that commencing Cayman winding-up proceedings did not breach the arbitration agreement, as such proceedings would not finally resolve the dispute....more

Goodwin

Incentivizing Executives to Stay Through a Chapter 11 Asset Sale (Part I): Key Employee Retention Programs for Insiders

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The best — and sometimes only — option for a financially troubled company to avoid a piecemeal liquidation may be to seek an acquirer for itself or its assets. While a distressed company may prefer an out-of-court sale...more

Greenberg Glusker LLP

Chapter 11—A Basic Primer

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No one sets out in business to fail, but despite our best efforts, this sometimes occurs. The reasons are multiple and varied: Sometimes there is a change in the industry and the business has not been able to evolve to meet...more

Arnall Golden Gregory LLP

Restructuring Roundup - August 2025

AGG’s Restructuring Roundup newsletter is a monthly update of legal issues and news affecting or related to commercial litigation and bankruptcy. The newsletter is a curation of published articles and news, and contains...more

Mayer Brown

Early Lease Terminations: Understanding and Managing Avoidance Risks

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When faced with a financially distressed tenant, an early lease termination agreement can be an effective means for a landlord to resolve the uncertainty created by its tenant’s financial distress and to mitigate potential...more

Orrick, Herrington & Sutcliffe LLP

CFPB and bankruptcy Trustee reach settlement in suit against fintech for failure to maintain accurate custodial accounts

On August 21, the CFPB filed an adversary proceeding complaint with the U.S. Bankruptcy Court for the Central District of California against a debtor fintech company, along with a proposed stipulated final judgment and order,...more

Goodwin

CFPB Enters a Proposed Agreement with Banking-as-a-Service Platform After Failure to Maintain Records Following Bankruptcy

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The Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint against a banking-as-a-service platform on August 21, 2025 in the U.S. Bankruptcy Court for the Central District of California, San Fernando...more

Ballard Spahr LLP

CFPB files complaint against Synapse Financial Technologies

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The CFPB has filed a complaint against Synapse Financial Technologies Inc, alleging that the company engaged in unfair acts and practices in violation of the Section 1036(a)(1)(B) of the CFPA by failing to maintain sufficient...more

Patterson Belknap Webb & Tyler LLP

New Jersey Bankruptcy Court Rules That Debtor Could Not Sell its Future Accounts Receivable Prepetition

A bankruptcy court in New Jersey recently granted a debtor’s motion to dismiss the counterclaims of two creditors who purchased a percentage of the debtor’s future receivables prepetition. The court rejected the creditors’...more

Quinn Emanuel

August 2025 Business Litigation Report

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When Machines Discriminate: The Rise of AI Bias Lawsuits - Over the past three years, businesses in the United States have rapidly adopted artificial intelligence (“AI”) technology – defined broadly as the ability of...more

Genova Burns LLC

GENIUS Act Regulates Cryptocurrency and Shifts Stablecoin Infrastructure

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President Trump signed The Guiding and Establishing National Innovation for U.S. Stablecoins Act (“GENIUS Act”) into law on July 18, 2025. The GENIUS Act is the federal government’s first major regulatory structure for...more

Offit Kurman

One Way or Another: Non-U.S. Crypto Customers Will Have to Face Celsius Preference Lawsuits

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Earlier this summer, the Bankruptcy Court for the Southern District of New York rejected a challenge to the Litigation Administrator, Moshin Y. Meghji, lawsuits against Celsius Network LLC customers. The challenge was based...more

Kilpatrick

The New Illinois Receivership Act

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Effective January 1, 2026, the new Illinois Receivership Act will come effective to provide litigators in Illinois with expanded tools for creditors and distressed businesses to protect and manage assets during a business...more

Ankura

Navigating Fraud in Insolvent Companies: Lessons for the UK

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In an ever-evolving UK economy, insolvency is a challenging, yet sometimes inevitable, aspect of business operations. When insolvency is caused by fraud, the repercussions can be severe, impacting employees, creditors, and...more

Conyers

Cayman Islands Restructuring: Observations Following Petrofac

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This article follows our previous commentary on the English High Court’s decision in May 2023 to sanction the Adler Group’s restructuring plan and the Court of Appeal’s reversal of that decision in February 2024. The recent...more

Seward & Kissel LLP

The Customer is Always Right and My Dear Watson

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Ripple’s tied Linqto makes a settlement offer in today’s bankruptcy hearing | Cryptopolitan - The bankrupt company announced on Tuesday that a proposed $60 million debtor-in-possession loan—for which customer-owned shares...more

Cozen O'Connor

Broad Street Brief: Mayor Parker Rallies Support for SEPTA

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Mayor Parker Outlines Behind-the-Scenes Efforts to Secure SEPTA Funding Amid PA Budget Talks - Mayor Cherelle Parker (D) has been actively working with state lawmakers across party lines to support SEPTA as the transit...more

Troutman Pepper Locke

What Happens to My Unpaid Wages if My Employer Files for Bankruptcy? - Creditor’s Rights Toolkit

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When a company files for bankruptcy, it can be an unsettling time for the company's employees who may worry about job and financial security, including unpaid wages and employee benefits. While these concerns are legitimate,...more

Offit Kurman

Fifth Circuit Confirms Third-Party Liens Survive Chapter 11 Discharge

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The Fifth Circuit has confirmed the old adage that liens “ride through” bankruptcy regardless of a discharge. Reversing a Texas bankruptcy court, the Circuit Court has held that a statutory privilege (a lien) against property...more

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