Non-Debtor Parents Beware: Bankruptcy Court Denies Extending MDL Injunction

On August 26, Indiana Bankruptcy Court Judge Jeffrey J. Graham issued an order in the bankruptcy cases of Aearo Technologies (“Aearo” and, together with its affiliate debtors, the “Debtors”), denying the Debtors’ motion for a preliminary injunction protecting non-debtor parent 3M Company (“3M”) against a slew of litigation related to hearing-protection devices that were allegedly defective and resulted in hearing loss and related injuries. The ruling highlights the risks inherent to the “Texas two-step” […]

By | September 11th, 2022 ||

Practical And Legal Considerations For Extending Cash Runway In A Changing Economy

The funding environment for emerging companies has fundamentally shifted in 2022 for both venture capital and IPOs, particularly after a banner year in 2021. Whether these headwinds suggest significant economic changes or a return to previous valuation levels, companies need to be realistic about adapting their business processes to ensure they have sufficient cash runway to succeed through the next 2-3 years.

This article provides a comprehensive set of tactics that can be used to extend cash runway, both […]

By | September 6th, 2022 ||

Bankruptcy Discharge Trumps PACA, But Does It Really?

In a case of first impression, the 11th Circuit Court of Appeals ruled in Spring Valley Produce, Inc. et al. vs. Forrest, ____ F.3d____(11th Cir. Case Number 21-12133) on August 31, 2022, that the right to a discharge in bankruptcy trumps the longstanding language of the Perishable Agricultural Commodities Act (“PACA”)(7 U.S.C. §499a-499t) which purports to bar bankruptcy relief under theories of fiduciary duties owed to certain sellers of agricultural products. PACA was first enacted […]

By | September 3rd, 2022 ||