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Nine West’s Intellectual Property Sale to Authentic Brands Wins Court Approval

Nine West Holdings Inc. took steps forward in its bankruptcy case after winning court approval to sell its brands to licensing firm Authentic Brands Group Inc., WSJ Pro Bankruptcy reported. Bankruptcy Judge Shelley Chapman in New York signed off yesterday on the sale of the Nine West and Bandolino brands for $340 million. Last week Authentic Brands walked away the winning bidder for the assets, after going toe-to-toe with DSW Holdings Inc. The price tag was a considerable increase. Nine West sought bankruptcy protection in April with a $200 million baseline bid from Authentic Brands. The shoe retailer sought bankruptcy protection after seeing significant sales declines in recent years. In addition to selling off its intellectual property assets, Nine West’s remaining brands, including Gloria Vanderbilt, Jessica Simpson, Anne Klein and the Kasper Group, will be taken over by a group of its lenders.

U.S. Supreme Court Will Consider Narrowing Securities-Fraud Laws

The U.S. Supreme Court agreed to consider narrowing the nation’s securities-fraud laws, accepting an appeal from an investment banker found by the Securities and Exchange Commission to have duped investors about a startup company’s financial condition, Bloomberg News reported. The banker, Francisco V. Lorenzo, said the SEC didn’t have enough proof to hold him liable for taking part in a scheme to defraud investors. A divided federal appeals court said that it was enough that Lorenzo, who worked at Charles Vista LLC, sent two emails misrepresenting the financial condition of a client, Waste2Energy Holdings Inc. The company was seeking to develop a way to generate electricity from solid waste, but the technology never materialized. An in-house judge at the SEC concluded the emails were “staggering” in their falsity. In his appeal, Lorenzo says allegations of false statements, without more, aren’t enough to hold someone liable for a fraudulent scheme. Lorenzo was also accused of violating securities-fraud provisions that specifically concern false statements, but the appeals court threw those claims out. The panel said Lorenzo wasn’t the one who actually made false statements, because the emails were drafted by Lorenzo’s boss and sent at his direction.

Erin Energy Seeks Emergency Bankruptcy Loan

Erin Energy Corp. is seeking permission from a judge to take on a $1.1 million bankruptcy loan that the oil-and-gas producer says that it needs to avoid potential liquidation, WSJ Pro Bankruptcy reported. Erin Energy filed an emergency motion Friday in the U.S. Bankruptcy Court in Houston seeking permission from a judge to take on the loan. The money would be provided by an individual, Greg Holcombe. The Houston-based company said that it has already reduced its staff to the minimum needed to preserve its assets and that if the company isn’t given access to the financial lifeline it “will not have sufficient funds to finance these minimum operations and will be forced to cease all corporate activities.” The company said it would likely be forced to liquidate without continued financing. A judge is scheduled today to consider the request to enter into the loan.

Two Arizona Hospitals Abruptly Close after Entering Bankruptcy

Gilbert (Ariz.) Hospital and Florence (Ariz.) Hospital at Anthem, both owned by Gilbert-based New Vision Health, provided little notice before shutting down, Becker's Hospital Review reported. The two hospitals entered chapter 11 bankruptcy in late May after creditors filed involuntary bankruptcy petitions for the hospitals, seeking to collect $1.96 million they claim the hospitals owe. In court documents filed May 1, creditors claimed that the two Arizona hospitals failed to make lease payments for months and that the facilities are "on the brink of complete shutdown." The two Arizona hospitals failed to contest the petition within the required 21-day timeline, and the court subsequently granted creditors' request for relief through the chapter 11 bankruptcy process. The financial troubles forced the two hospitals to close. After initially announcing the two facilities would close June 15, officials slightly extended the timeline. Gilbert Hospital closed June 16 and Florence Hospital closed June 18, according to azcentral.com.

Analysis: Mulvaney Likely to Stick Around at the CFPB for a While

Mick Mulvaney could be around for a while as the acting chief of the Consumer Financial Protection Bureau, despite the Trump administration’s move to nominate a permanent successor, the Wall Street Journal reported. The White House yesterday said that it would nominate Kathy Kraninger to run the 1,700-person agency created after the financial crisis. Kraninger quickly ran into opposition from the left and right, with many critics saying that she wasn’t qualified for the job. She currently works as an associate director at the Office of Management and Budget for Mulvaney, who also serves as White House budget chief. Some experts said that it appeared the Trump administration was putting up a nominee who might not be confirmed by the Senate, effectively creating a pathway for Mulvaney to stay at the CFPB for as long as two more years. Kraninger’s nomination allows him to stay until at least the end of 2018 while her confirmation is pending in the Senate.

Harvey Weinstein Wants Jurors to Rule on Sex-Assault Insurance

Harvey Weinstein wants jurors to decide whether Chubb Ltd. and other insurers are acting in “bad faith” by refusing to pay to defend him against nearly a dozen lawsuits accusing him of assaulting or sexually harassing women over a period stretching four decades, Bloomberg News reported. Weinstein’s lawyers said in court filings yesterday that they want an eight-day trial in federal court in Manhattan on the issue of insurers’ refusals to pick up the tab for his defense under policies that exclude coverage for “sexual molestation.” A trial date hasn’t been set. Chubb, based in Zurich, filed a countersuit against Weinstein and said it won’t be paying him to defend against the women’s allegations. Karyn Faggello, A U.S.-based spokeswoman for the company, didn’t immediately respond to an emailed request for comment on the insurance dispute sent after normal business hours. Weinstein, whose studio sought bankruptcy protection in the wake of the scandal, was arrested in Manhattan in May on rape charges and released after posting $1 million bail and surrendering his passport. He denied the charges. That same month, his Weinstein Co. was sold to Lantern Entertainment in a deal worth about $437 million.

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