Good day. A Johnson & Johnson lawyer floated the possibility of a bankruptcy filing covering a company unit, worrying personal-injury claimants suing the healthcare company over its talc-containing baby powder. And a collections agency, specializing in recovering Medicare payments, is targeting the nation's asbestos trusts.

A Johnson & Johnson legal representative said during settlement discussions over talcum-based baby powder that the company is considering placing a subsidiary in bankruptcy as part of a strategy to settle thousands of claims linking the product to ovarian cancer, according to people familiar with the matter.

A collection agent for Medicare service providers is suing one of the dozens of trusts established by bankrupt asbestos manufacturers and plans to pursue others, alleging they have systematically shifted the burden of treating asbestos-related illnesses to the public.

The extra return investors demand to hold lower-rated corporate bonds over ultrasafe Treasurys has fallen within striking distance of all-time lows, a sign of investors’ appetite for riskier assets and the changing composition of bond indexes.

Electric-truck startup Lordstown Motors Corp. confirmed the Justice Department is probing its business, investigating matters related to its reverse merger deal last year and preorders for its forthcoming pickup truck, the Endurance.

Washington Prime Group Inc. shareholders got an official voice in its bankruptcy case, according to court papers. The Justice Department's bankruptcy monitors appointed an official committee of equity holders on Thursday, signalling a belief that shareholders need their own representation.

Their legal fees will be covered by the company. Washington Prime has proposed a restructuring that would supply a recovery to preferred and common stockholders, assuming a sufficient number vote to back the commercial landlord's strategy. Under the proposal, if both classes of stockholders vote yes, they will split a pot of $40 million in cash or a 6% stake in the business.

Judge Marvin Isgur of the U.S. Bankruptcy Court in Houston has questioned the legality of such an outcome, which would override the preferred stockholders' liquidation preference. -- Andrew Scurria

The Education Department is routinely contesting requests for bankruptcy discharges from people deep in debt and short on resources, according to court documents. Consumer advocates say the practice runs counter to the Biden administration’s interest in helping distressed borrowers and undermines the department’s effort to reform its restrictive bankruptcy policy. (Washington Post)

Ruby Pipeline LLC, co-owned by Kinder Morgan Inc. and Pembina Pipeline Corp., is gearing up for talks with its bondholders over ways to tackle its high-debt load and improve its access to cash, according to people familiar with the matter. (Bloomberg)

A bankruptcy filing by the Norwich Diocese to shield its finances as it faces lawsuits over scores of sexual-abuse claims may deny full compensation to the victims, one of their lawyers said Friday. (Hartford Courant)

The archbishop of the Archdiocese of Agaña has encountered a setback in trying to argue that the assets of the Catholic church’s parishes and schools islandwide are off-limits from claims filed by nearly 300 sexual abuse claimants. (Guam Daily Post)

Connecticut's attorney general had harsh words Friday when attorneys representing the family who owns the bankrupt OxyContin maker Purdue Pharma threatened a demand for sanctions against four states and the District of Columbia. (Courthouse News)

With the peak of hurricane season less than two months away, many Puerto Ricans are concerned about the stability of the island’s electric grid -- a problem-plagued system that left millions without power during Hurricane Maria. (ABC News)

The Irish Christian Brothers Catholic religious order, which runs two high schools in the Chicago area, agreed to reforms as it faced bankruptcy as a result of sex-abuse lawsuits. But its transparency is limited. (Chicago Sun-Times)

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