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Supreme Court Won't Hear Appeal by Tribune Creditors; Bankrupt Consulate Health Unit Seeks Sale
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Good day. The Supreme Court declined to hear an appeal by creditors of the former Tribune Co. seeking to claw back billions of dollars in shareholder profits before the publisher filed for bankruptcy. And a bankrupt unit of nursing home operator Consulate Health Care won court approval to put itself up for sale, along with the rights to collect on a whistleblower judgment against corporate affiliates.
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The publisher of the Chicago Tribune filed for bankruptcy about a year after its 2007 leveraged buyout. PHOTO: SCOTT OLSON/GETTY IMAGES
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Supreme Court Declines to Hear Tribune Co. Creditors’ Challenge to 2007 Buyout
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The U.S. Supreme Court has closed the door on an attempt by creditors of the former Tribune Co. to claw back billions of dollars in shareholder profits that flowed from its 2007 leveraged buyout, about a year before the publisher filed for bankruptcy. Read More.
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Bankrupt Consulate Health Unit Seeks Sale of Itself and Whistleblower Litigation Claims
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A bankrupt unit of nursing-home operator Consulate Health Care won court approval to put itself up for sale, along with the rights to try to collect on a $258 million whistleblower judgment against its other nonbankrupt corporate affiliates. Read More.
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An image of an Intelsat satellite taken in February 2020. PHOTO: ASSOCIATED PRESS
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Bankruptcy Judge Shields Satellite Operator Intelsat From Public View
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Satellite operator Intelsat SA is huddled behind closed courtroom doors, trying to cling to control of its nearly $15 billion bankruptcy proceeding. In a motion filed Friday afternoon, Intelsat said only it wanted to discuss “sensitive, non-public information” related to the company’s U.S. and international operations.
Judge Keith Phillips of the U.S. Bankruptcy Court in Richmond granted the request minutes into a Monday hearing and removed the proceedings from public view. Ken Whitehurst, a Justice Department lawyer, remarked that it was no surprise that those with a financial interest in the bankruptcy case want to keep some matters secret. — Peg Brickley
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Senior Care Centers Files for Bankruptcy Again Over Landlord Dispute
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Nursing home operator Senior Care Centers LLC, a subsidiary of Abri Health Services LLC, has filed for bankruptcy for a second time, after a dispute with landlord TXMS Real Estate Investments Inc. over a master lease and the transfer of operations of 11 of its facilities.
Abri filed for chapter 11 protection Friday in the U.S. Bankruptcy Court in Dallas after experiencing significant distress in responding to the Covid-19 pandemic, which led the company to request rent concessions from its landlords.
In court papers, the company valued its assets at about $3.6 million and listed total unsecured trade debt of $2.7 million. Senior Care had filed for chapter 11 in 2018 and emerged from bankruptcy in March 2020 with 22 of its skilled nursing facilities operating only in Texas, down from more than 100 facilities pre-bankruptcy across various states. — Aisha Al-Muslim
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Caliber Violated Rights of Bankrupt Nine Point, Judge Says
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A judge ruled Caliber Midstream Partners LP violated the automatic stay of bankrupt Nine Point Energy by sending threatening letters to suppliers of the reorganizing business.
Before filing for bankruptcy, Nine Point sent a termination notice to transportation provider Caliber, saying others could provide service on better terms.
Nine Point said Caliber then violated the protection that bankrupt companies get by sending letters to new suppliers, saying they were interfering in the relationship. Judge Mary Walrath said Caliber, if it believes it retains rights under the agreement, should take action in the bankruptcy case instead of against third parties. — Becky Yerak
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Drugmakers Accused of Causing Opioid Addiction in Trial
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A lawyer for several large California communities accused four drugmakers of causing a deadly wave of opioid addiction with their aggressive marketing of pain pills, while defense attorneys said the firms followed the law, in the opening day of a trial being closely watched by the pharmaceutical industry.
The months-long trial launched Monday with opening remarks from plaintiffs’ lawyer Fidelma Fitzpatrick and attorneys for the drugmakers accused of misconduct — Johnson & Johnson, Teva Pharmaceutical Ltd., Endo International PLC and Abbvie Inc.’s Allergan. Read More.
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$8 Billion
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The amount of the shareholder payout from the Tribune leveraged buyout that creditors are still fighting over.
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Barclays Plc pulled out of its role as lead underwriter of a municipal bond sale to build prisons in Alabama after getting hit with criticism that the bank was backtracking on a pledge not to finance the for-profit prison industry. (Bloomberg)
Alamo Drafthouse said Monday that it will reopen its Brooklyn location on May 7. (Variety)
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