Bankrupt casual eatery chain Ruby Tuesday received court approval Friday for its plan to pay bonuses to a handful of key executives after a Delaware judge said the benchmarks for earning the extra pay provided a performance incentive.
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Mallinckrodt Ch. 11 Talks Stalled Amid Fee Row, Judge Told
Law360 (January 14, 2021, 10:43 PM EST) A consultant for global drug giant Mallinckrodt PLC told a Delaware judge Thursday that movement toward a Chapter 11 plan has virtually come to a standstill as a dispute rages on over whether the drugmaker should reimburse fees for certain restructuring professionals.
During a virtual hearing in front of U.S. Bankruptcy Judge John T. Dorsey, a restructuring consultant and financial adviser for Mallinckrodt testified that negotiations with stakeholders on a Chapter 11 plan have come to a near halt amid the fee row. Activity has virtually come to a standstill, Randall S. Eisenberg of AlixPartners LLP said.
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Del. Judge Nixes Equity Panel For Insolvent Mallinckrodt PLC
Law360 (December 22, 2020, 8:48 PM EST) Citing evidence that Irish-domiciled drugmaker Mallinckrodt PLC and its affiliates are hopelessly insolvent and potentially exposed to claims worth trillions, a Delaware bankruptcy judge on Tuesday rejected a call to form an equity committee for stockholders facing a total wipeout.
Ruling during a teleconference hearing, U.S. Bankruptcy Judge John T. Dorsey said an expert commissioned by an ad hoc equity group had failed to carry arguments that something could be left for stockholders after other creditor payoffs if the Chapter 11 reorganization spun away Mallinckrodt s embattled generics affiliates.
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Lucky s Market Gets OK On Ch. 11 Plan In Del.
Law360 (December 23, 2020, 5:43 PM EST) A Delaware judge on Wednesday approved the Chapter 11 liquidation plan for organic food retailer Lucky s Market with creditors positioned to receive distributions following the roughly $50 million sale of most of its assets through a series of transactions earlier this year.
During a virtual hearing, U.S. Bankruptcy Judge John T. Dorsey gave his nod to the plan, ruling it is in the best interest of creditors and was proposed in good faith. This is a fairly standard liquidating plan, Lucky s attorney Christopher A. Ward of Polsinelli PC told the judge.
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Mallinckrodt Says Market Bodes Ill For Ch. 11 Equity Salvage
Law360 (December 16, 2020, 8:50 PM EST) An attorney for global drug giant Mallinckrodt PLC told a bankruptcy judge in Delaware Wednesday that market signals and looming risks of massive damage awards provide ample evidence that stockholders are out of the money in the company s $5.3 billion Chapter 11.
Arguing for a second day before U.S. Bankruptcy Judge John T. Dorsey on a contested motion for an official committee of equity holders, Christopher Harris of Latham & Watkins LLP, counsel to Mallinckrodt, said stockholders relied on an analysis that assumes away all the problems with claims that a company reorganization based on different litigation strategies can save current.