The SEC is expressing potential opposition to FTX’s plan to repay creditors using stablecoins, citing concerns about the legality of these transactions under federal securities laws. The regulator also highlighted the lack of a designated distribution agent for the stablecoin payments. This comes after FTX’s approved restructuring plan promised up to 118% repayment to creditors, a rare outcome in U.S. bankruptcies.
Brazil’s Chamber of Deputies has approved a major amendment to the National Civil Aviation Fund law, enabling a BRL 5 billion (USD 888 million) rescue package for struggling airlines. This will provide crucial financial support to carriers like LATAM and GOL, which have recently sought bankruptcy protection.
The Insolvency and Bankruptcy Board of India (IBBI) is seeking top institutions to offer postgraduate programs in insolvency resolution, aiming to address a shortage of qualified professionals in the country. The move is expected to expedite the resolution of distressed companies and improve the efficiency of the bankruptcy process.
Scandinavian Airlines System (SAS) has emerged from Chapter 11 bankruptcy proceedings and undergone a major restructuring, transitioning to new ownership led by Air France-KLM. This transformation includes joining SkyTeam alliance, fleet optimization, and cost reduction, resulting in record profitability.
Ault Disruptive Technologies Corp (ADRT) shares plummeted by 15.8% on Friday after the company terminated its merger agreement with Gresham, which recently filed for bankruptcy. The merger, initially agreed upon in June 2024, was canceled effective August 15. Despite the termination, Ault Alliance, Inc. will retain majority ownership of both companies and their boards will continue to share members.
Johnson & Johnson is expected to confirm a $6.48 billion settlement to resolve thousands of lawsuits alleging that its baby powder products cause cancer. The settlement plan requires the approval of over 75% of claimants, which has reportedly been reached. This will involve a subsidiary of Johnson & Johnson filing for bankruptcy protection to finalize the agreement. This represents a renewed effort by the company to resolve long-standing talc litigation after previous attempts were rejected by courts.
Supplement company Irwin Naturals is facing bankruptcy after failing to repay a $40 million loan from East West Bank. The bank is pursuing legal action, alleging self-dealing and diversion of funds by the company’s CEO, Klee Irwin. Irwin Naturals is attempting to reorganize under Chapter 11, but the future remains uncertain for the company and its creditors.
SunPower Corporation (SPWR) shares are plummeting after the company received a Nasdaq delisting notification. The delisting stems from SunPower’s inability to meet Nasdaq listing requirements following its Chapter 11 bankruptcy filing. Trading in SPWR will be suspended on August 16th, 2024, and the stock is expected to begin trading on the Pink Open Market. The news adds to SunPower’s recent struggles, as the solar company filed for bankruptcy last week and is in the process of selling off assets.
Bankrupt cryptocurrency exchange FTX will pay $12.7 billion in relief to its customers as part of a settlement with the Commodity Futures Trading Commission (CFTC). The settlement aims to compensate customers who lost deposits during the exchange’s collapse in late 2022.
IndusInd International Holdings (IIHL), owned by the Hinduja Group, has been granted an additional 18 days by the National Company Law Tribunal (NCLT) to complete the necessary procedures for implementing its resolution plan for the bankrupt Reliance Capital. The tribunal has also mandated that IIHL deposit the equity component of Rs 2,750 crore in an escrow account by July 31. IIHL’s proposed funding for the resolution plan includes Rs 7,300 crore in debt financing and Rs 2,750 crore in equity.
