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Purdue Pleads Guilty; Theater Owner Cinemex to Exit Ch. 11; Trade Wars Drive Lumber Maker to Bankruptcy
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Good day. Purdue Pharma pleaded guilty to three federal felonies for its role in pushing OxyContin. Dine-in movie chain Cinemex Holdings USA won court approval for a restructuring plan that keeps the company under familiar ownership. And U.S.-China trade tensions helped drive lumber manufacturer Northwest Hardwoods into bankruptcy.
The WSJ Pro Bankruptcy newsletter is taking a break for the Thanksgiving holiday, but will be back in your inboxes on Monday.
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Jeffrey Rosen, deputy attorney general, spoke during a news conference at the Department of Justice in Washington on Oct. 21. YURI GRIPAS/BLOOMBERG NEWS
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Purdue Pharma Pleads Guilty to Felonies Over OxyContin Sales
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Purdue Pharma LP pleaded guilty Tuesday to three federal felonies related to the marketing and distribution of its powerful opioid painkiller OxyContin, ending the bankrupt company’s exposure to U.S. government action but leaving other liabilities to state and local governments looming. Read More.
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U.S. Unit of Mexico's Grupo Cinemex Gets Bankruptcy Plan Approval
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Dine-in movie-theater chain Cinemex Holdings USA Inc. won court approval for a bankruptcy plan under which it will operate under familiar ownership and with an expectation of business returning to pre-pandemic levels by the end of 2022. Read More.
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Northwest Hardwoods Files for Bankruptcy
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Private-equity-backed lumber manufacturer Northwest Hardwoods Inc. has filed for bankruptcy, saying its business has suffered from escalating trade disputes between the U.S. and China and a disruption to its operations caused by the Covid-19 pandemic. Read More.
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A parking lot at a J.C. Penney store was empty in Roseville, Mich., in May. PAUL SANCYA/ASSOCIATED PRESS
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J.C. Penney Wins Court Approval For Restructuring
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A judge signed off on department store J.C. Penney Co.'s restructuring plan, marking the last big step the company needs to take to close the chapter on bankruptcy. A deal to sell its operations to mall owners Simon Property Group Inc. and Brookfield Property Partners LP is likely to close Wednesday, Joshua Sussberg, the company's lawyer, said at a hearing Tuesday. Judge David Jones of the U.S. Bankruptcy Court in Corpus Christi, Texas, signed off on the sale to Simon and Brookfield earlier this month. — Soma Biswas
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Hertz Gets Greenlight for $4 Billion Fleet Financing
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Hertz Global Holdings Inc. got bankruptcy-court approval for $4 billion in new fleet financing. With full agreement from key parties in the chapter 11 case, Judge Mary Walrath in U.S. Bankruptcy Court in Wilmington, Del., signed off on the funds without holding a hearing.
Along with more than $1.6 billion in bankruptcy financing approved earlier, Hertz has the wherewithal to buy more than 200,000 new vehicles in 2021 to keep its fleet fresh and competitive, Hertz lawyer Tom Lauria said. He believes Hertz will emerge from bankruptcy with a cleaner balance sheet than its rivals. — Becky Yerak
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Bankrupt Off-Price Retailer Stein Mart Approved to Sell Branding
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Discount department-store chain Stein Mart won bankruptcy-court
approval to sell the bankrupt company's intellectual property for
about $6 million.
Judge Jerry Funk of U.S. Bankruptcy Court in Jacksonville, Fla., said Monday he would approve the sale to a venture backed by Retail Ecommerce Ventures LLC, the new owner of RadioShack, Modell's Sporting Goods, Pier 1 Imports and Dressbarn. After a bankruptcy auction last week, REV was named the winning bidder following an increase from its initial $4 million stalking horse bid.
The assets include the Stein Mart brand, other private-label brands, domain names, social-media assets and customer data. Stein Mart, which filed for chapter 11 bankruptcy in August, has liquidated most of its more than 275 stores. — Aisha Al-Muslim
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Muji U.S. to Poll Creditors on Chapter 11 Exit Plan
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A bankruptcy judge on Tuesday authorized Japanese home-goods retailer Muji U.S. to poll its creditors on its chapter 11 restructuring plan.
Muji has closed several of its retail locations since filing chapter 11 protection in July, including its stores in California and New Jersey, court papers say. The retailer, hit hard by the coronavirus pandemic, intends to operate fewer U.S. stores when it leaves chapter 11, which Muji anticipates could happen by the end of the year. — Jonathan Randles
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J.Crew Changes CEOs Again
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J.Crew Group replaced its chief executive after less than a year in the role, and just a few months after the apparel seller emerged from bankruptcy protection with new hedge-fund owners. Read More.
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Regulatory Pressure Mounts on Coal Miner that Rattled China’s Bond Market
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An investigation into a troubled Chinese state-owned coal miner was escalated to the country’s securities regulator, as authorities pile pressure on the company whose recent default rattled the bond market.
The National Association of Financial Market Institutional Investors, a self-regulating body supervised by China’s central bank, said late Tuesday that it had sent leads related to suspected violations of laws and regulations by Yongcheng Coal & Electricity Holding Group Co. to the China Securities Regulatory Commission. Read More.
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$8.34 Billion
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The size of the settlement between Purdue Pharma and the Justice Department
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Societe Generale recently attempted to auction off a portfolio of more than $1 billion in oil-and-gas revolving credit exposure, but found muted buyer interest at the mid-90s price point it was seeking. (Debtwire)
Cirque du Soleil emerged from bankruptcy protection Tuesday. (Reuters)
Party City recently posted a third quarter that beat analysts’ expectations and reported a smaller-than-feared drop in Halloween sales. (Bloomberg)
A judge ruled that a Manhattan landlord is on the hook for a tanning center lease inside a Town Sports International fitness center after the space was left behind in a chapter 11 lease rejection. (Law360)
The Federal Energy Regulatory Commission has sought to elevate a legal dispute over the line between its authorities and those of bankruptcy courts to the 5th U.S. Circuit Court of Appeals as part of an effort to resolve conflicting decisions about jurisdiction. (S&P Global Market Intelligence)
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