If the past few years have taught us anything, it’s that things can change drastically in a short amount of time. That’s why its important to keep track of what is happening in the economy and with bankruptcy laws – after all, some court decisions may influence your case. Keep reading for important bankruptcy news.
Purdue Pharma
If you haven’t been keeping up with the opioid epidemic, the pharmaceutical company responsible for false advertising and endangering patients is having its day in bankruptcy court. Purdue Pharma, the home of Oxycontin and other medications will be having a pretrial conference to finalize their reorganization plan.
Purdue Pharma is filing for Chapter 11 bankruptcy which is like Chapter 13 for consumers. As a part of their case, they are required to draft a plan that will address how the company intends to pay any claims and settlements over the next few years.
Brazos Electric Power Cooperative
Early in 2021, Texas was hit with a series of devastating ice storms that destroyed the power infrastructure and led to massive outages and eventually several deaths. Brazos Electric Power Cooperative will hold a conference this month to update creditors on the massive bills that came after the ice storms blew over.
So far, creditors have attempted to investigate the matter and have come up empty handed. The co-op will need to provide evidence and status updates regarding the matter and their strategy for paying off these bills.
CBL & Associates Properties
A mall operator will be seeking court approval of its reorganization plan this month. CBL & Associates Properties is a struggling mall operator who is the most recent group to go under during the long and agonizing death of America’s shopping malls.
Since the 2010s, malls have declined rapidly as online shopping and boutique shops increased in popularity. Now, many massive mall complexes are sitting vacant and crumbling as their property managers scramble to find other investment opportunities to stay afloat. Now, many of them are filing for bankruptcy to buy time or cut their losses.
Looking Ahead
While these cases involve large-scale corporate entities, it’s important to understand how one law can influence another. Many of the cases in court today are heavily influenced by legal decisions from the past.
The Bankruptcy Code is the basis for nearly every bankruptcy case, and as such, provides the blueprint for all bankruptcy cases including civil and corporate.
When you file a case, the bankruptcy court follows the Bankruptcy code to determine how your case will proceed. Sometimes, court decisions from other cases can influence how the judge interprets the code, which can change your case significantly.
In large scale cases like Purdue Pharma or Brazos Electrical, the court’s final call could alter the court process for other corporate entities that file for bankruptcy. Particularly in the Purdue Pharma case, there is a human rights concern that is just as important as the bankruptcy filing. The judge will need to navigate the complexities of this case as they hear closing arguments this month.
Buchalter & Pelphrey Attorneys At Law will continue to follow these cases as they develop.