Corporate Bankruptcy

Purdue Continues to Peddle Malarkey About Why It's in White Plains

07/29/21

Purdue Pharma continues to peddle some malarkey about why it filed for bankruptcy in White Plains, New York.  In response to my House Judiciary testimony yesterday, Purdue told the Stamford Advocate:

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Nondischargeability and the Sacklers

07/28/21

In the wake of today's House Judiciary Committee hearing, I got a text from an attorney who pointed out that if the Sacklers themselves filed for bankruptcy, creditors could raise non-dischargeability challenges under section 523, including for "willful and malicious injury by the debtor to another entity or to the property of another entity" or, or under section 1141(d)(6) for false claims acts violations.

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Is DOJ Supporting the Purdue Pharma Plan? Or Not?

07/27/21

The Department of Justice appears to be mumbling out of both sides of its mouth in the Purdue Pharma bankruptcy.  On July 19, DOJ filed a "statement" regarding the release of the Sacklers.

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House Judiciary Testimony on Chapter 11 Abuses

07/27/21

I'm testifying before the House Judiciary Committee on Wednesday at a hearing entitled "Confronting Abuses of the Chapter 11 System."  My written testimony can be found here. It touches on six topics:

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The Texas Two-Step: The New Fad in Fraudulent Transfers

07/19/21

There's a new fad in fraudulent transfers. It's called the Texas Two-Step. Here's how it goes. A company has a lot of tort liabilities (e.g., asbestos, talc, benzene, Roundup). The company transforms into a Texas corporate entity (the particular type doesn't matter). The new Texas entity then undertakes a "divisive merger" that splits the company into two companies, and it allocates the assets and liabilities as it pleases among the successor entities.

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Sacklers Withdraw Their Threatened Sanctions Motion

07/16/21

The Sacklers decided not to proceed with their threatened sanctions motion. Their counsel wrote to the case distribution list:

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The Sacklers Try to Strong Arm the Non-Consenting States with a Threat of Sanctions

07/15/21

Every time I think the Purdue Pharma bankruptcy couldn't get crazier, it does. The latest development is that some of the Sacklers (the Raymond branch) are seeking sanctions against five of the holdout non-consenting states for allegedly false statements in the states' proofs of claim. It's a blatant litigation tactic.

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Available now, wherever books are sold.

07/08/21

I'm pleased to announce the publication of the second edition of American Business Bankruptcy. Now featuring coverage of the Small Business Reorganization Act (subchapter V) and a nifty endorsement from a fellow Slipster.

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Purdue Retaliates Against the Parent of an Opioid Victim Who Dares to Speak Out

07/03/21

Another recent Purdue docket item caught my notice. It is an order approving a settlement between Peter Jackson, the parent of a teenage opioid overdose victim, and Purdue and the Personal Injury Ad Hoc Committee regarding discovery requests that Purdue and the PI Ad Hoc Committee served on Mr. Jackson.

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District Judge to Purdue: "You Don't Get to Choose Your Judge"

07/01/21

"[Y]ou don't get to choose your judge." That's what US District Judge Colleen McMahon wrote to Purdue Pharma, in response to a letter Purdue had written to her addressing a possible motion to withdraw the reference to the bankruptcy court for a third-party release and injunction. 

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