Help Center

Bankruptcy Headlines

Jumio Estate’s Bankruptcy Plan Wins Court Approval

A plan to wind down the estate of former Silicon Valley startup Jumio Inc. won final approval from a bankruptcy judge, bringing the contentious chapter 11 case nearer to a close, the Wall Street Journal reported today. Following a hearing on Wednesday, Bankruptcy Judge Brendan Shannon said that he would sign off on the identity-verification company’s debt-payment plan, overruling opposition from its former chief executive as well as some shareholders. The ruling represents a victory for early Jumio backers, such as venture-capital firm Andreessen Horowitz and Facebook co-founder Eduardo Saverin, who fought allegations that they had worked to rig the bankruptcy to their advantage. At the center of the plan is a settlement reached earlier this year that was backed by Saverin and Andreessen, as well as a committee representing shareholders. When it takes effect, the plan will largely shield Saverin and Andreessen from future lawsuits tied to the bankruptcy, although some shareholders retain the right to sue Saverin and others. One shareholder lawsuit against Saverin is already pending.

Detroit’s Home County Exits State Oversight as Finances Improve

Wayne County, Mich., the home of once-bankrupt Detroit, won release from its consent agreement with the state as its finances improved after 14 months of oversight, Bloomberg News reported yesterday. The county received formal notification from the state approving its request to be released from the pact, the county said yesterday. Michigan Treasurer Nick Khouri found the county met terms of the agreement by fixing its deficit and restoring fiscal stability. In June 2015, County Executive Warren Evans asked the state to declare a financial emergency to help Michigan’s largest county fix its budget crisis. He requested the consent pact, an initial step toward state oversight. That agreement, which became effective in August 2015, allowed the county to avoid bankruptcy. At the time, the county of 1.8 million residents faced a $52 million annual deficit because of rising costs and a declining population. Since then, county officials moved to reduce retiree health care bills, cut labor costs and turned once-chronic deficits into surpluses.

Stone Energy's Stock Plunges as RSA Agreement Contemplates Bankruptcy

Shares of Stone Energy Corp. lost half their value in premarket trade today after the oil and gas company announced a restructuring support agreement (RSA) with certain convertible noteholders as the company prepares for a bankruptcy filing, according to The RSA contemplates that the company will file for chapter 11 on or before Dec. 9, the company said yesterday. "The execution of the RSA is the culmination of months of hard work to right-size our balance sheet in response to a sustained period of low oil and natural gas commodity prices," said Chief Executive David Welch. Read more

Get a better understanding of what happens when an oil, gas or other natural resources company goes bankrupt. Order your copy of ABI's revised and expanded When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy, Second Edition

South Korea’s STX Offshore Files for U.S. Bankruptcy Protection

South Korea’s STX Offshore & Shipbuilding Co. filed for bankruptcy protection in Texas in a bid to stop creditors from trying to seize its assets in the U.S. as the troubled shipyard looks to sell its business overseas, the Wall Street Journal reported today. Bankruptcy Judge Jeff Bohm granted STX a temporary restraining order to block creditors from seizing U.S. assets at a hearing yesterday, one day after Yoon Keun Jang, the administrator overseeing STX Offshore’s Korean bankruptcy case, placed the company into chapter 15. Jang said that some creditors who hired STX to build vessels are trying to circumvent the Korean proceeding by seizing STX’s assets in the U.S. The shipbuilder would “suffer irreparable harm,” he said in court papers, absent a court order barring the asset seizures.

Hanjin Shipping in Talks to Sell Long Beach Terminal Stake to MSC

Hanjin Shipping Co. Ltd. is in talks to sell its stake in the Long Beach Terminal in California to Geneva-based Mediterranean Shipping Company S.A., Reuters reported today. Hanjin Shipping owns a 54 percent stake in Total Terminals International LLC, which operates Long Beach Terminal in the U.S. MSC owns the remaining 46 percent. It has appointed an advisor, an overseas firm specializing in shipping industry talks, to help with the negotiations, the court spokesman said. Hanjin, the first major shipping line to be dragged down by global industry overcapacity and low freight rates, put up other assets such as its U.S.-Asia route manpower and logistics systems, five container ships and 10 overseas businesses, for sale earlier this month. Hanjin, which filed for court receivership on Aug. 31 after its creditors cut off financial support for the firm, had total debt of 6.03 trillion won ($5.4 billion) as of the end of June.

Judge Urges Deal to Save Erie County Farms

The next two weeks will determine the financial future of Erie County Farms and owner Natalie Pacileo, reported yesterday. Bankruptcy Judge Thomas P. Agresti gave Pacileo until Nov. 3 to reach a deal with Erie County Farms' landlord, whose lawsuit over back rent led Pacileo and the grocery store to file for chapter 11 protection in December. Without a deal on Nov. 3, Pacileo and Erie County Farms likely would face chapter 7 liquidation, in which Erie County Farms would close after it and Pacileo sell their assets to satisfy creditors. Pacileo, 80, has operated Erie County Farms as a sole proprietorship for 50 years and never incorporated the business, which has put her house and other personal assets at risk in bankruptcy. Pacileo attended the hearing but did not testify. When Pacileo and Erie County Farms filed for bankruptcy in December, they owed Perry Plaza LP and other creditors a total of $1.7 million.