Good day and welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Tuesday, Nov. 30. Here's what you need to know: Hertz Global Holdings showered more rewards on the investors who stuck with it through bankruptcy. The new Covid variant isn't scaring markets, which rebounded after a modest selloff last week.

And in bankruptcy court, fresh developments on the Boy Scouts, Mallinckrodt and Latam Airlines.

Hertz targets $2 billion in buybacks amid pandemic recovery. Hertz Global Holdings Inc. said Monday it would buy back as much as $2 billion of its stock, a move that would return more capital to investors who stood by the car-rental company through its bankruptcy filing last year.

As travel has rebounded, Hertz has found sounder footing in recent months, with greater revenue and a return to profitability. Its path through the past two years has traced markets’ unpredictable swings from pessimism to optimism and back again as the pandemic delivered investors a steady stream of surprises.

Markets shrug off Omicron worries. Stocks bounced back from Friday’s selloff, with investors betting the Omicron Covid-19 variant will cause less damage to the global economic recovery than initially feared. Oil prices stabilized as well, clawing back some of their losses from crude’s worst trading session since April 2020. Federal Reserve chairman Jerome Powell said the variant risks intensifying supply-chain disruptions that have fueled a surge in inflation this year.

Boy Scouts victim lawyers must divulge client-recruiting information. The judge overseeing the Boy Scouts of America's bankruptcy case said insurance companies can force sex-abuse victims' lawyers to turn over records and other information on how they signed up clients.

At a hearing in the U.S. Bankruptcy Court in Wilmington, Del., Judge Laurie Selber Silverstein said that insurers could carry out a probe of certain victims' lawyers who submitted claims against the Boy Scouts' on survivors' behalf. Records that show how the lawyers "formed that claim" are subject to discovery proceedings, Judge Silverstein said on Monday.

For months, insurers have raised doubts about how law firms signed up survivors as clients, and about the validity of thousands of claims. The Boy Scouts are pushing to exit chapter 11 under a sex-abuse settlement plan that relies heavily on insurance money. — Soma Biswas

Mallinckrodt wins longer pause on Acthar price-gouging lawsuits. A Delaware bankruptcy judge agreed Monday to extend for an additional 90 days an injunction pausing lawsuits accusing Mallinckrodt PLC of inflating prices for its flagship H.P. Acthar gel drug as well as other litigation.

Judge John Dorsey of the U.S. Bankruptcy Court in Willmington, Del. said that allowing the injunction to expire on Nov. 30 would disrupt an ongoing trial on Mallinckrodt's chapter 11 exit plan. A Mallinckrodt executive testified earlier Monday that Acthar represented the company's largest source of revenue and that defending the litigation now would consume a significant amount of management's time.

The drugmaker is currently defending its strategy to emerge from chapter 11, which includes a $1.72 billion settlement of unrelated liability over its manufacturing of generic opioids. The trial is anticipated to go several more weeks. — Jonathan Randles

Brazil's Azul says Latam bankruptcy plan doesn't allow for tie-up. Brazilian airline Azul SA said it offered to lift Latam Airlines Group SA out of bankruptcy through a proposed business combination, but that the Chilean competitor's chapter 11 exit plan won't allow for such a merger.

Azul said Sunday that the stated valuation in Latam's bankruptcy-exit plan "is higher than Azul believes to be credible given the continued uncertainties in the aviation industry, especially in the international long-haul markets."

Latam has proposed a restructuring that revolves around raising $8.2 billion in new debt and equity while fending off a takeover by Azul, which has been pushing for months to combine the two businesses. If approved in bankruptcy court, Latam's plan would hand majority control to creditors while maintaining a stake for current shareholders. The Wall Street Journal reported last week that Azul had been building support among Latam bondholders for an alternative restructuring, premised on a tie-up. — Andrew Scurria

GPB Capital preps investor payout from dealership sale. GPB Capital Holdings LLC has closed its sale of auto dealerships after settling a yearslong legal dispute tied to its acquisition of many of the same assets, paying a self-proclaimed whistleblower $30 million. The New York private-equity firm is working on distributing the proceeds to investors as its founders face criminal allegations over what the New York Attorney General’s office described as a “Ponzi-like scheme.”

Theranos founder Elizabeth Holmes testified her deputy Balwani abused her. The stunning testimony is likely to cap Elizabeth Holmes’s direct questioning from her lawyers, during which she endeavored to fill out a picture of her now-defunct startup as a company with bold ambitions and an admirable vision that struggled to meet technology deadlines.

Biden Administration to redirect rental assistance to areas with greater demand. The Treasury Department is redirecting rental-assistance money from some states and localities that haven’t used the bulk of their funds to others facing backlogs of aid requests, according to administration officials. Though just a fraction of the aid was distributed before a national eviction moratorium ended this summer, more money is now finding its way to tenants and landlords.

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