Redcon1 Dodges Chapter 7 Bankruptcy Fight

Seth Kleinman of Morrison & Foerster LLP spoke to Natural Products Insider about an involuntary Chapter 7 bankruptcy petition filed against sports nutrition brand Redcon1 by three of its creditors.

An involuntary bankruptcy petition is typically filed “when several unsecured creditors of a company believe that the management of the company itself is doing something with the funds of the company that are improper and that the company is already insolvent or will become insolvent because […]

By | Feb 23, 2024 ||

ISDA And SIFMA Back Dealers’ Bankruptcy Interest Swap Termination Claims Over Debtor Objection

The commencement of a bankruptcy case is a common event of default under executory contracts. To allow debtors to retain contract rights necessary to consummate an effective reorganization, however, the Bankruptcy Code prohibits the enforcement of a default based upon the bankruptcy filing—so called ipso facto defaults—with limited exceptions. These exceptions, or “safe harbors,” allow non-debtor counterparties to certain types of executory financial contracts, including swap agreements, to exercise rights after the commencement of a bankruptcy […]

By | Feb 21, 2024 ||

Crypto Platforms In Crisis: Bankruptcy Considerations

The crypto ecosystem is facing a full-blown financial crisis reminiscent of 2008. Numerous crypto companies have failed in the past few months, triggered in part by the collapse in cryptocurrency prices this year following their highs in 2021. These collapses have created a slow-moving contagion – again reminiscent of the 2008 financial crisis.

The collapse of the Terra/Luna “algorithmic stablecoin” ecosystem wiped out billions (if not tens of billions) of notional value – including the […]

By | Feb 19, 2024 ||