What we’re reading this week [March 16, 2021] – Insolvency/Bankruptcy


What we’re reading this week [March 16, 2021] – Insolvency/Bankruptcy

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reporting from CNBC points out that Purdue Pharma, the maker of OxyContin, has proposed a $10 billion plan to exit bankruptcy. Sources say the exit plan not only includes a significant contribution of more than $4 billion from members of the Sackler family who own the Connecticut-based pharma giant, but also calls for the pharma giant to transition into a different type of company plans to Winning to fight the country’s stubborn opioid crisis. [CNBC;
Mar. 16, 2021].

Bloomberg reports that the U.S. Supreme Court recently declined to hear an appeal over how the credit industry reported debt forgiveness in consumer credit reports, an issue central to the “fresh start” consumers face after bankruptcy receive. The appeal aimed to prevent consumers from joining forces in class action lawsuits accusing the banks of violating individuals’ bankruptcy reliefs by continuing to include old, settled debts on credit reports. By refusing to hear appeals from lower court decisions, the US Supreme Court left virtually untouched rulings that bankruptcy laws prevent banks from using terms in credit card agreements to force such claims into mandatory arbitration. [Bloomberg; March 8, 2021].

The Wall Street Journal reports that HighPoint Resources Corp. filed for Chapter 11 protection on March 15, 2021 in hopes that a quick Chapter 11 stint will encourage a merger with Bonanza Creek Energy Inc., another oil and gas operator in Colorado. Highpoint’s unmanageable $765 million debt burden and last year’s oil price war between Russia and Saudi Arabia prompted the filing of the filing on Sunday. Recent court documents indicate that HighPoint’s bankruptcy plan and merger with Bonanza Creek aims to swap $625 million in unsecured debt for the combined company’s equity. [WSJ; Mar. 15,
2021].

forbes analyzes the challenges and prospects of AMC Entertainment Holdings Inc., the country’s largest cinema chain, following a $917 million cash infusion completed in December 2020 and recent signs of the lifting of global lockdowns.
[Forbes; Mar. 5 2021].

Originally published by Mayer Brown, March 2021

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