Home Business Another bankruptcy meme, opioid and crypto cases in the news, interest in Celsius and aggressive action in 3M-related bankruptcy | Seward & Kissel LLP

Another bankruptcy meme, opioid and crypto cases in the news, interest in Celsius and aggressive action in 3M-related bankruptcy | Seward & Kissel LLP

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Another bankruptcy meme, opioid and crypto cases in the news, interest in Celsius and aggressive action in 3M-related bankruptcy |  Seward & Kissel LLP

Below is our initial take on recent bankruptcy-related developments:

Revlon shareholders seek official representation in bankruptcy case | Reuters

A group of Revlon shareholders have asked a bankruptcy judge to appoint an official committee to represent them, as the group believes their interests are not protected in bankruptcy proceedings.

S&K Take: REV shares are currently trading north of $6, so the market seems to think the shares have some value, reminiscent of the Hertz case, where debtors at one point tried to raise capital through a stock offering during the deal. (which never took off). Whether this is a meme action storyline or if the actual value exists remains to be seen, but it’s remarkable regardless.

Drugmaker Endo Says Bankruptcy Likely Imminent | The Wall Street Journal

Endo International, a pharmaceutical manufacturer facing thousands of lawsuits in connection with the opioid crisis, is currently negotiating with top executives in hopes they will agree to file for Chapter 11 bankruptcy.

S&K Take: It looks like another major opioid case is about to be filed. Endo has about $8 billion in debt to deal with in addition to opioid claims. The filing wouldn’t be without controversy, of course, as a group of unsecured noteholders have organized themselves arguing that the company doesn’t need to file and that a bankruptcy will only hurt the company. ‘company. This should take place in the very short term.

German Crypto Bank Nuri Files For Insolvency, Says “All Funds Safe” | Decrypt

The latest crypto-related firm to file for bankruptcy is German crypto exchange Nuri, which filed a case in a Berlin court and assured its customers that they would still have access to their funds and accounts.

Crypto Futures Exchange CoinFLEX Files for Seychelles Restructuring | CoinDesk

After suspending withdrawals in June, CoinFLEX is now seeking creditor approval to begin its restructuring process.

S&K Take: Two new crypto-related insolvencies, though they look quite different. The Nuri procedure, unlike others in the United States and abroad, promises the return of crypto-assets and customer money. It seems that Nuri had a real custodial relationship with its customers, unlike Voyager and Celsius. CoinFLEX, on the other hand, seems to be the most typical case, where the platform runs out of crypto for customers.

Ripple Labs takes an interest in the assets of bankrupt crypto lender Celsius | Reuters

Blockchain payments company Ripple Labs has maintained continued growth throughout the crypto meltdown and has now opened investigations into the acquisition of Celsius, the crypto lender that filed for bankruptcy in July.

S&K Take: Interest in company assets is good for Celsius customers, although we are far from understanding what a sale transaction would look like.

Earplugs judge can’t stop 3M bankruptcy plan, company says | Reuters

3M Co, the parent company of allegedly inadequate military earplugs, has asked a federal judge to clear its plan, putting their subsidiary into bankruptcy in order to transfer claims for damages to bankruptcy court, to go forward without interference.

S&K Take: This case is fascinating as plaintiffs in federal court litigation seek to prevent the bankruptcy court from issuing a stay of pursuit of their claims. This marks a new strategy in the mass bankruptcies playbook. It could have legs depending on what the federal judge overseeing the litigation thinks of the filing. Debtors criticized the litigation process during the day one hearing, will this impact an impending decision? Take your popcorn.

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