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☆ Rite Aid reaches bankruptcy settlement with lenders, DOJ, McKesson
▼ + stars: | 2024-03-26 | by ( ) www.cnbc.com time to read: +2 min

The Rite Aid logo is displayed above a Ride Aid store on December 21, 2022 in Los Angeles, California. Pharmacy chain Rite Aid has reached a settlement with its lenders, the U.S. Department of Justice, and drug supplier McKesson Corp , clearing a path for Rite Aid to complete its bankruptcy case by late April, a company lawyer said Tuesday. "We have reached an agreement on all key points with all key economic stakeholders," Rite Aid attorney Aparna Yenamandra said at a bankruptcy court hearing in Trenton, New Jersey. Before it filed for bankruptcy, Rite Aid faced over 1,600 lawsuits alleging that pharmacy chain ignored red flags and illegally filled prescriptions for addictive opioid medication. Rite Aid received bankruptcy court approval to sell its pharmacy benefit company, Elixir, in January.

Persons: Aparna Yenamandra, Yenamandra, Andrew Rosenberg, Joshua Sussberg, Michael Kaplan, Kaplan Organizations: Pharmacy, U.S . Department of Justice, McKesson Corp, Aid, Rite Aid, Aid's, Brigade Capital Management, HG Vora Capital Management, Morgan Investment Management, U.S Locations: Los Angeles , California, Trenton , New Jersey

☆ Bankrupt Rite Aid resolves drug supply dispute with McKesson
▼ + stars: | 2023-10-17 | by ( Dietrich Knauth | ) www.reuters.com time to read: +2 min

A woman shops inside a Rite Aid store underneath a DeepCam security camera in New York City, New York, U.S., June 25, 2020. The lawsuit against McKesson alleged that the distributor improperly attempted to terminate the drug supply agreement on Saturday, just before Rite Aid declared bankruptcy. Rite Aid had accused McKesson of threatening to cut off its drug supply unless it immediately paid $700 million for amounts due under the contract. Rite Aid has relied on McKesson for its drugs for 20 years, and paid McKesson $9 billion under the contract in 2023, according to court filings. Rite Aid said it maintains very low drug inventory, forcing it to rely on daily deliveries from McKesson.

Persons: Lucas Jackson, McKesson, Joshua Sussberg, Sussberg, Michael Kaplan, Dietrich Knauth, Alexia Garamfalvi, Bill Berkrot Organizations: REUTERS, McKesson Corp, . Rite, Rite Aid, Aid, Rite, Thomson Locations: New York City , New York, U.S, New Jersey, Trenton

☆ Cineworld gets no offer for whole company, warns on shareholders' equity
▼ + stars: | 2023-02-24 | by ( Yadarisa Shabong | ) www.reuters.com time to read: +3 min

It said it had received initial proposals from a number of counterparties but none offered an all-cash bid for the entire company. Cineworld said talks with certain stakeholders about a possible plan of reorganisation were ongoing in parallel with a potential sale of assets, but neither path would see shareholders recover their equity interest. Cineworld had a net debt of $8.81 billion as of June 30, 2022, including lease liabilities, while its cash reserves had dwindled to $131 million. Larger rival AMC Entertainment Holdings (AMC.N) in December had said its talks to buy some theatres owned by Cineworld had fallen through. Sky News reported earlier this month that London-based cinema operator Vue International, with support from two funds, would be among the bidders for Cineworld.

☆ Cineworld shares dive on reports of no bidders for UK, U.S. assets
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: +2 min

Feb 22 (Reuters) - Shares of Cineworld (CINE.L) slumped as much as 22% on Wednesday after media reports said the world's second-largest cinema operator had received 40 non-binding bids, but none for its UK and U.S. assets or nearing its $6 billion secured debt load. When requested by Reuters, Cineworld did not immediately confirm details of the update it provided to the court. The reports also said the company was proposing an April 10 deadline for final bids, with an auction, if necessary, to follow on April 17. A vote on restructuring has been set for May 21, with a court confirmation hearing tentatively set for May 30. Last month, Bloomberg News reported that Cineworld has shuttered 23 theatre sites since filing for bankruptcy protection and was planning more closures.

☆ Voyager gets initial approval for $1 bln Binance deal amid national security concerns
▼ + stars: | 2023-01-11 | by ( Dietrich Knauth | ) www.reuters.com time to read: +3 min

Jan 10 (Reuters) - Bankrupt crypto lender Voyager Digital received initial court approval on Tuesday for a proposed $1 billion sale of its assets to Binance.US, and said it will seek to expedite a U.S. national security review of the deal. He said Voyager intends to address any issues that would lead CFIUS to oppose the transaction. The Binance transaction includes a $20 million cash payment and an agreement to transfer Voyager's customers to Binance.US's crypto exchange, Sussberg said. Voyager estimates the sale will allow customers to recover 51% of the value of their deposits at the time of Voyager's bankruptcy filing. In addition to CFIUS, Voyager's proposed sale was also opposed by the U.S. Securities Exchange Commission and state securities regulators.

☆ Voyager seeks to expedite national security review of Binance deal
▼ + stars: | 2023-01-10 | by ( Dietrich Knauth | ) www.reuters.com time to read: +2 min

Jan 10 (Reuters) - Bankrupt crypto lender Voyager Digital is working to expedite a U.S. national security review that could delay or block its proposed $1 billion sale of its assets to Binance.US, its attorneys said on Tuesday. He said Voyager intends to address any risk that CFIUS would oppose the transaction. The Binance transaction includes a $20 million cash payment and an agreement to transfer Voyager's customers to Binance.US's crypto exchange, Sussberg said. If CFIUS blocks the transaction, Voyager will be forced to repay customers with the crypto it has on hand, resulting in a lower payout for Voyager users, Sussberg said. Binance.US, based in Palo Alto, California, has said that its separate American exchange is "fully independent" of the main Binance platform.

☆ BlockFi says it repaid investor $15 mln to settle over crypto crash
▼ + stars: | 2023-01-09 | by ( Dietrich Knauth | ) www.reuters.com time to read: +3 min

Jan 9 (Reuters) - Executives of bankrupt crypto lender BlockFi Inc have repaid an investor $15 million to settle a threatened lawsuit over the company's cratering equity value in summer 2022, the company's attorneys said Monday in bankruptcy court. The BlockFi investor threatened to sue, alleging that BlockFi and its executives should have been more transparent about contagion risks in the cryptocurrency market, according to Sussberg. BlockFi believed the investor's claims were "specious," but it reached a confidential settlement on Aug. 23 under which BlockFi executives repaid $15 million to the investor, Sussberg said. That loan gave FTX an option to buy BlockFi for $240 million, essentially setting a maximum value for existing equity. As the company's value plummeted, BlockFi laid off 20% of its employees.

☆ Cineworld Grapples With Box-Office Slump as It Seeks a Sale in Bankruptcy
▼ + stars: | 2023-01-05 | by ( Akiko Matsuda | Alexander Gladstone | ) www.wsj.com time to read: 1 min

Bankrupt movie-theater chain Cineworld Group PLC said it continues to miss its box-office projections due to challenging market conditions as it gears up to sell itself out of chapter 11. Joshua Sussberg, a lawyer for U.K.-based Cineworld, owner of Regal Cinemas, told Judge Marvin Isgur of the U.S. Bankruptcy Court in Houston, Texas, on Wednesday that the company’s restructuring effort since its bankruptcy filing in September has been hindered by the lackluster box-office performance.

☆ The unraveling of $3 billion crypto lender BlockFi amid FTX's 'death spiral', according to bankruptcy filings
▼ + stars: | 2022-12-03 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +5 min

The crypto platform owes $30 million to the SEC, per bankruptcy filings. FTX, which once offered BlockFi a $400 million credit line, ultimately led to the firm's bankruptcy. BlockFi cited significant exposure to Sam Bankman-Fried's crypto empire, which filed for bankruptcy on November 11. Ironically, once FTX's "death spiral" began, BlockFi's liquidity crisis ensued and the company paused user account withdrawals on its platform. Due to the loan agreement and $355 million in digital assets held on FTX, BlockFi had substantial exposure.

☆ Crypto meltdown a boon for bankruptcy lawyers
▼ + stars: | 2022-12-02 | by ( Andrew Goudsward | ) www.reuters.com time to read: +5 min

“You’ve got to pay the gravedigger,” said Adam Levitin, a law professor at Georgetown University who specializes in bankruptcy law. Law firm billing rates are normally not public, but in bankruptcy cases lawyers for the debtor company must detail their billings and request a judge's approval for their fees. The lawyers are paid from the assets of a bankruptcy estate, and experts said judges rarely demand significant reductions in professional fees. Lawyers in the crypto cases must deal with a host of issues new to bankruptcy law, including whether digital assets deposited on a platform are owned by the customer or the platform itself, according to bankruptcy law experts. Levitin, a former member of the restructuring department at law firm Weil, Gotshal, & Manges, said such complex questions call for top-shelf lawyers.

BlockFi users must still account for gains and/or losses on their 2022 taxes, but there are ways to reduce your tax bill. The crypto lender says it's requesting approval from the Court to restore withdrawal activities for those with BlockFi Wallet accounts. BlockFi also asked users not to submit any deposits to the BlockFi Wallet or its interest accounts. Georgia Quinn, General Counsel of Anchorage Digital, believes coverage for crypto users could be stronger. In addition, users are typically last to receive payouts in the event of crypto bankruptcy, since companies settle debts with creditors first.

☆ BlockFi Says It Is Different From FTX, Affirms Efforts to Return Customer Funds
▼ + stars: | 2022-11-29 | by ( Jonathan Randles | ) www.wsj.com time to read: 1 min

BlockFi Inc. told a U.S. bankruptcy court on Tuesday it was blindsided by cryptocurrency exchange FTX’s rapid demise and would work to repay creditors and allow customers access to their digital wallets as soon as possible. Jersey City, N.J.-based BlockFi, which secured a rescue loan from FTX in June to shore up its liquidity, reviewed unaudited FTX financial reports as part of due diligence it performed at the time of the transactions, said Joshua Sussberg, a lawyer for BlockFi, during its debut hearing in the U.S. Bankruptcy Court in Trenton, N.J. BlockFi filed for chapter 11 on Monday after the loan fell apart in the wake of FTX’s collapse earlier in November.

☆ BlockFi tells U.S. bankruptcy court it is 'the antithesis of FTX'
▼ + stars: | 2022-11-29 | by ( Dietrich Knauth | ) www.reuters.com time to read: +4 min

REUTERS/Dado Ruvic/IllustrationNov 29 (Reuters) - Lawyers for BlockFi, the first direct casualty of crypto exchange FTX's collapse, made their initial appearance in U.S. bankruptcy court on Tuesday, emphasizing that the U.S. cryptocurrency lender was "the antithesis of FTX." Sussberg went to great lengths to distance BlockFi from FTX, saying the company did not face the myriad issues apparently plaguing FTX. Sussberg said BlockFi also intends to seek a court ruling allowing customers in the BlockFi Wallet program to withdraw their funds during the bankruptcy case if they wish. "If it's in your wallet, it stays in your wallet," Sussberg said. Its Chapter 11 plan envisages that BlockFi Wallet customers would be paid back in full and other account holders and creditors would receive a mixture of cryptocurrency, cash, and new equity shares.

BlockFi lawyers said during the crypto lender's bankruptcy hearing on Tuesday that the firm plans to reopen withdrawals as part of an effort to "maximize client recoveries." FTX had arranged a rescue plan for BlockFi, but that fell apart when FTX faced its own liquidity crisis earlier this month and rapidly sank into bankruptcy. BlockFi loaned $671 million to Alameda, Sussberg said, and had an additional $355 million in digital assets that are currently frozen on the FTX platform. Exposure to both firms prompted client withdrawals, but it was FTX's plan to acquire BlockFi that ultimately led it into bankruptcy proceedings, the lawyer said. In the bankruptcy filing, BlockFi indicated it had more than 100,000 creditors, with liabilities and assets ranging from $1 billion to $10 billion.

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