Good day and welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Monday, June 1. In today's briefing, a U.S. bankruptcy judge has dealt a blow to residents of the Buckingham Senior Living Community by barring them from suing bondholders to recover $147 million in life savings, ruling that their refund claims are subordinate to senior secured lenders in the facility’s chapter 11 case.

A bankruptcy judge has blocked residents of a luxury Houston retirement community from suing bondholders, dealing a blow to hundreds of seniors and their heirs fighting to claw back $147 million in life savings trapped in the facility’s second chapter 11 case.

On Friday, U.S. Bankruptcy Judge Michelle Larson in Dallas rejected a bid by residents of the bankrupt Buckingham Senior Living Community to assert claims ahead of the community’s senior secured lenders, finding that the residents’ refund claims rank below those of the bondholders.

“This is undoubtedly a weighty decision. However, it would be equally unfair for the court to saddle this [bankruptcy] estate with years of what the court would view as hopeless litigation,” the judge said, adding that it would also be unfair to the lenders “to be leveraged at best and penalized at worst for what is the entire industry’s woes.”

New Fortress Energy's affiliates have filed for chapter 15 bankruptcy protection, seeking U.S. recognition of a U.K. restructuring that covers more than $8 billion of debt.

Under the proposal, NFE Global Holdings, a unit of the New York-based company, would reduce its debt by exchanging existing liabilities for a combination of new debt and equity.

NFE would split into two entities: a Brazilian company and a company with the remainder of its operations. Creditors would receive 65% of the holding company's equity, while existing shareholders would retain a 35% stake, subject to potential future dilution.

The restructuring follows a period of significant financial pressure for the energy infrastructure company due to unfavorable liquefied natural gas pricing and a heavy debt burden. NFE launched the U.K. restructuring process in March.

–Becky Yerak

Private credit is already past the worst of its investor sentiment crisis, says Blue Owl Co-Chief Executive Marc Lipschultz at the Bernstein Strategic Decisions Conference. He says there will likely be elevated redemption requests and moderated inflows for the rest of the year but that "the super cycle is already behind us." The company is seeing a change in tone from investors. "People are interested in investing again across the board," he says. "It's not the same freakout conversation." It takes time for sentiment to return to normal, but "the tone actually is healing faster than even I would have expected," he says. Shares rise 3.9%.

–Nicholas Miller

One number released this past week says inflation is running away from the Federal Reserve’s 2% target. Another says it’s nearly there.

The Commerce Department said Thursday that a widely watched measure of “core” consumer inflation, which excludes volatile food and energy items, was 3.3% over the last year. But a lesser known gauge called “trimmed mean” inflation, which filters out the most extreme price moves, was just 2.3%.

The U.S. economy grew more slowly during the first three months of the year, updated government data showed Thursday.

Gross domestic product, a broad measure of the goods and services produced across the U.S., rose at a 1.6% seasonally and inflation-adjusted annual rate in January through March, the Commerce Department said Thursday.

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