In a recent decision, In re Orexigen Therapeutics, Inc., No. 18-10518 (KG) (Bankr. D. Del. Nov. 13, 2018), Judge Kevin Gross of the United States Bankruptcy Court for the District of Delaware held that the mutuality requirement of section 553 of the Bankruptcy Code must be strictly construed, declining to find mutuality in a triangular setoff between the debtor, a parent entity that owed the debtor money, and that entity’s subsidiary, which was a creditor.
During this mostly quiet week in restructuring, most of us are either away on vacation (think beach or ski) or home for the holidays, maybe back in our hometowns. For me, it’s always the latter, and home for the holidays is Virginia Beach, Virginia, where I sit while I write this blog post (alas, not the beach vacation some of you may be enjoying; my relatives live about 20 minutes from the beach and the high temperature this time of year is usually in the 40s).
In Judge Glenn’s recent lengthy decision recognizing and enforcing a restructuring plan in the chapter 15 proceedings of In re Agrokor1, a Croatian company in Croatian insolvency proceedings, he highlighted that the concept of comity – respect for rulings in other countries – remains an important U.S.
If you were to walk down Fifth Avenue and see a store displaying a white apple suspended in a large glass case, more likely than not you would immediately think of the California-based tech giant who shares its name with the nutritious snack. Similarly, if the person walking in front of you on your way to the Apple store lifted her heel to reveal a candy-apple red shoe sole, more likely than not the name Christian Louboutin would pop into your head.
In a recent decision, the Fifth Circuit narrowly held that federal law does not prevent a bona fide shareholder from exercising its voting right in the company’s charter to prevent the filing by the company of a bankruptcy petition merely because it is also an unsecured creditor. In re Franchise Servs. of N. Am., Inc., 891 F.3d 198, 203 (5th Cir. 2018).
695 Buggy Circle, LLC, along with six subsidiaries and affiliates, has filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware. All of the Debtors are affiliates of, and are seeking joint administration with, the Woodbridge Group of Companies, et al. (Lead Case No. 17-12560).
Candi Controls, Inc., an Oakland, CA-based provider of cloud-based services for energy and facilities management, has had an involuntary petition for relief under Chapter 11 filed against it in the Bankruptcy Court for the District of Delaware (Case No. 18-10679). The involuntary petition was filed by CGM Partners, Howard Elias and Kelly Yang Living Trust, who collectively assert $575,000 in note claims.
Bellflower Funding, LLC and Wall 123, LLC, two affiliates of the Woodbridge Group of Companies, LLC, have filed petitions for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Case Nos. 18-10507 & 18-10508).
Orexigen Therapeutics, a biopharmaceutical company focused on the treatment of obesity based in La Jolla, CA, has filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 18-10518). According to the Petition, as of November 30, 2017, Orexigen had $265.1 million in assets and $226.4 million in liabilities.
Zohar III, Corp., along with five of its subsidiaries and affiliates, has filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-10512).