June 01, 2021

What We’re Reading This Week [June 1, 2021]

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Reuters reports that eleven U.S. airlines collectively issued $12.84 billion in cash refunds to customers in 2020 for flights canceled during the pandemic.  The cash refunds come on top of billions of dollars of travel credits that are now being used at a rapid pace.  [Reuters; May 28, 2021]

The New York Times reports that the New York bankruptcy judge overseeing Purdue Pharma’s Chapter 11 cases provisionally approved the OxyContin manufacturer’s disclosure statement, subject to resolution of a handful of issues, setting up Purdue’s restructuring proposal to be put to a vote of creditors.  While major issues remain for the upcoming confirmation hearing, the most contentious being whether or not the Sackler family who owns Purdue should be released from all opioid-related lawsuits in exchange for its financial contributions to Purdue’s plan, approval of the disclosure statement is a major milestone in the case.  Once the information packets on Purdue’s proposal are mailed out, voting is scheduled to conclude by July 14 and a confirmation hearing is scheduled for August 9.  [The New York Times; May 26, 2021]

Bloomberg reports that Western Community Energy, a local government agency that provides electricity in California, filed for Chapter 9 bankruptcy protection.  In explaining its reasons for filing, the agency blamed the ongoing impacts of Covid-19, its inability to shut off customers with late bills and unexpected energy costs from a 2020 heat wave.  [Bloomberg; May 25, 2021]

The Wall Street Journal discusses the bankruptcy court’s recent decision to reject Sears’ request to increase compensation for three adviser firms that were hired to pursue the retailer’s lawsuits to recover money paid to third parties within three months prior to its bankruptcy filing.  The adviser firms reportedly collected $16 million so far, far short of the initially anticipated $100 million.  [WSJ; May 25, 2021]

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