Good day and welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Friday, May 13. A Dallas homecare provider hired restructuring advisers as it struggles with rising labor costs, WSJ Pro reported exclusively. Pipeline inspection company Cypress Environmental revised its chapter 11 plan to address judge's concerns. And crypto carnege continued with stable coin tanking further.

EXCLUSIVE: Jordan Health lenders gear up for talks amid debt, wage pressures. Lenders to Jordan Health Services, a Dallas-based home healthcare provider, have hired restructuring advisers in anticipation of negotiations on the company’s debt as it struggles with rising labor costs, according to people familiar with the matter.

Jordan Health, which in 2018 combined with two other home health service providers, is grappling with the pressures of rising wages and the challenges of a merger integration process as well as about $1 billion in debt, the people also said.

A group of senior lenders have hired law firm Gibson Dunn & Crutcher LLP and financial adviser PJT Partners Inc., these people said.

Facing court's pushback, bankrupt Cypress Environmental revises plans. Bankrupt pipeline-inspection company Cypress Environmental Partners LP revised its chapter 11 plan in response to a bankruptcy judge's concerns over the treatment of general unsecured creditors.

Cypress, which filed for bankruptcy on Sunday, initially submitted a plan that would pay nothing to the pool of creditors while requiring them to discharge their claims.

Judge Marvin Isgur of the U.S. Bankruptcy Court in Houston said during a hearing earlier this week that he wouldn't take away those creditors' rights while paying them zero. Cypress on Wednesday told the judge that it revised the plan to pay the pool of creditors $250,000, while allowing them to opt out releases. Judge Isgur said he was pleased with the change. "You sure have addressed what I needed so that I feel comfortable saying we can move ahead," he said. – Akiko Matsuda

Crash of TerraUSD shakes crypto. ‘There was a run on the bank.’ The cryptocurrency TerraUSD had one job: Maintain its value at $1 per coin.

Since it launched in 2020, it had mostly done that, rarely straying more than a fraction of a penny from its intended price. That made it an island of stability, a place where traders and investors could stash their funds in between forays into the otherwise frenzied crypto market.

This week TerraUSD became part of the frenzy too, slumping by more than a third on Monday and then tumbling as low as 23 cents on Wednesday.

Sri Lankan President appoints new Prime Minister after protests turn deadly. Sri Lanka’s president appointed an opposition politician as prime minister in an effort to appease protesters, as monthslong demonstrations over an economic crisis turned deadly this week.

President Gotabaya Rajapaksa appointed Ranil Wickremesinghe to the post on Thursday after his older brother, Mahinda Rajapaksa, stepped down.

The move followed a spate of violence that began on Monday when hundreds of ruling party supporters rallied outside the prime minister’s official residence in Colombo, the capital, before marching toward sites where antigovernment protesters had been demonstrating peacefully for weeks. News footage showed groups of men, some armed with metal bars, attacking antigovernment protesters and setting fire to their tents.

• Sri Lankan Prime Minister Mahinda Rajapaksa Resigns
• Sri Lanka’s Finance Minister Says Country’s Available Reserves Near Zero

Chinese dollar-bond defaults mount as another large developer fails to pay. Sunac China, once one of the country’s best-performing developers, failed to make an overdue interest payment on a U.S. dollar bond, marking a comedown for founder Sun Hongbin, who had tried for months to prevent his property giant from spiraling into default.

Tianjin-based Sunac on Thursday said it couldn’t cobble together enough money to make a $29.5 million bond-coupon payment by the end of a 30-day grace period. The nonpayment could trigger cross-defaults on Sunac’s international bonds with a total face value of $7.7 billion, according to the note’s prospectus.

The company’s international-bond default would further dampen investors’ confidence in the property sector. Before this month, 17 Chinese developers with a total of $51.4 billion in hard-currency debt had defaulted since the start of 2021, according to a Goldman Sachs research report.

Armstrong Flooring Inc., 10 a.m. ET: The flooring manufacturer has a hearing for bankruptcy loan, funds to pay critical vendors. The company filed for bankruptcy Sunday. On Wednesday, it won an interim funding and extra time until Friday to convince its secured lenders, which want the business to liquidate, to support the financing for a robust sale process. 

InfoWars, 2 p.m. ET: Families of the Sandy Hook victims appear in court for their motion to withdraw lawsuits against the right-wing broadcaster in bankruptcy so that their defamation suits can move forward. 

Cypress Environmental Partners LP, 2:30 p.m. ET: The pipeline-inspection company has a hearing for bankruptcy loan. Cypress filed for prepackaged chapter 11 protection Monday, unable to refinance a roughly $58 million loan maturing at the end of this month.

Producer price gains slowed in April but remain elevated. U.S. suppliers’ price increases eased in April as energy and food costs dropped, but producer-level inflation remained close to historical highs.

• Senate Confirms Jerome Powell to Second Term Leading Federal Reserve
• Inflation Is Headed Lower—but Maybe Not Low Enough

Coinbase bonds are sinking. Blame the crypto crash and creditors’ concerns. (Barron's)

Obamacare insurance mandate deemed ‘tax’ under bankruptcy law. (Bloomberg)

Boy scout case could change large bankruptcy cases forever. (Axios)

Share your tips, suggestions and feedback with the WSJ Pro Bankruptcy team: Soma Biswas; Alexander Gladstone; Jodi Xu Klein; Akiko Matsuda; Jonathan Randles; Alexander Saeedy; Andrew Scurria; Becky Yerak. 

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