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Bankruptcy

Texas Bankruptcy Expert: ‘Conditions Seem Ripe for Substantial Restructuring Activity in 2025’

The corporate bankruptcy practice faced some headwinds in 2024, including higher interest rates, an unsettled political environment and the judicial romance scandal that rocked the complex bankruptcy panel in the Southern District of Texas. 

The Texas Lawbook talked with Haynes Boone corporate bankruptcy and restructuring partner Ian Peck about trends in the world of complex business Chapter 11s in Texas.

Party City Hires Paul Weiss and Porter Hedges To Advise on Chapter 22 Bankruptcy

On Saturday, retailer Party City voluntarily filed for its second Chapter 11 bankruptcy in under two years in the Southern District of Texas. Following the filing and after being in business for nearly 40 years, it will officially look to close its business. As it begins to take the necessary steps to do so, it has selected New York’s Paul, Weiss, Rifkind, Wharton & Garrison as its legal counsel and Houston’s Porter Hedges as local counsel.

The Container Store Hires Latham, Hunton AK, Houlihan Lokey to Advise on Bankruptcy

The Container Store, a Coppell-headquartered retailer specializing in home organizing solutions, filed for Chapter 11 bankruptcy protection late Sunday in the Southern District of Texas, seeking to restructure its debt and address operating losses. Container Store CLO Tasha Grinnell hired Latham & Watkins and Hunton Andrews Kurth as legal advisors. The ad hoc committee of lenders is represented by Paul Hastings.

Law Professors Talk Possible Jackson Walker Defenses in Bankruptcy Fee Litigation

Two law professors recently shared their thoughts in interviews with The Texas Lawbook on what defenses Jackson Walker is likely to raise in litigation where the U.S. Trustee is attempting to claw back millions in fees awarded to the firm in cases where David Jones served as a mediator or judge. Jones resigned his bench last year after a secret romantic relationship with a former Jackson Walker bankruptcy professor came to light.

California Trucking Firm Files Bankruptcy in Houston

In its bankruptcy petition, Kal Freight cites between $100 million and $500 million in liabilities and provides the same range for its assets. Houston lawyer Benjamin Lawrence Wallen of Pachulski Stang Ziehl & Jones along with lawyers from the firm’s New York and California offices are listed as Kal Freight’s lead legal advisors.

Sidley Leads Independence Drilling’s Bankruptcy Restructuring in SDTX

Houston-based Independence Contract Drilling and its affiliated company, Sidewinder Drilling, filed for Chapter 11 bankruptcy protection late Monday in the Southern District of Texas. ICD leaders chose Sidley Austin as its lead legal advisor. Latham & Watkins is counsel for the noteholders. Piper Sandler is the investment bank advising ICD.

Foley Leads Vodka Maker’s Bankruptcy

The U.S. subsidiary of vodka producer Stoli Group and its sister company, whiskey maker Kentucky Owl, have filed for Chapter 11 bankruptcy protection in the Northern District of Texas.

Judge Isgur Tosses Insurers’ $1.3B Claims Against Zachry, Chiyoda

According to audio of the hearing available on the docket, Judge Isgur told counsel for the insurers about four minutes before he issued an oral ruling from the bench dismissing the subrogation that he wasn’t inclined to adopt his arguments. “I’m not even following a little bit of your argument, just so you know,” he said. “It seems obvious that you’re wrong.”

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