January/February 2018

January/February 2018
Bankruptcy
Vol. 16, No. 1

When Is a Consignment Not a Consignment? A Look at the Ongoing Sports Authority Bankruptcy Case

In the world of bankruptcy, the definition of “consignment” is not as simple as it would seem. In the ongoing Sports Authority bankruptcy case, the company is trying to remain afloat by selling merchandise it obtained on consignment. The consigners, of course, want to be paid, as do the company’s lenders. Judge Cyganowski reviews the case, which has not yet been resolved, and explains the complexities of consignment.

ABI 2017 Chapter 11 Review: Large Company Filings Down, Retail & Oil Still Show Distress

Although a parade of Chapter 11 filings by major retailers grabbed the headlines in 2017, Samuel Gerdano and Ed Flynn of the American Bankruptcy Institute point out that, overall, large company filings were down compared to the previous two years. They predict 2018 will offer more of the same.

View from the Bench: One of the Nation’s Top Bankruptcy Judges Analyzes the Chapter 11 Landscape

Chapter 11 in 2017 seemed to be a paradox. On one hand, every day seemed to bring news of a national retailer filing for protection. On the other hand, the American Bankruptcy Institute, which monitors Chapter 11 commercial filings, contends that there were fewer filings because of the high cost. The Honorable Michael B. Kaplan, U.S. Bankruptcy Judge for the District of New Jersey, provides unvarnished answers to ABF Journal’s questions about the state of Chapter 11 today.

Toys ‘R’ Us Files Bankruptcy, JPMorgan-Led Syndicate Provides DIP

JPMorgan agented a $3 billion debtor-in-possession loan for bankrupt retailer Toys “R” Us. Illustrator Jerry Gonzalez depicts the lender as Santa with a generous gift for the ailing toy seller.

The Jevic Case: High Court Rejects Deviations to Chapter 11 Structured Dismissals

In March, the U.S. Supreme Court overruled the decision of three lower courts by determining the Bankruptcy Code does not permit “priority skipping” in Chapter 11 structured cases. Kurt Mayr and Shannon Wolf examine the pivotal Czyzewski v. Jevic Holding case and explain the implications for future structured dismissals in Chapter 11 cases.

Global Container Shipping Industry: Choppy Seas Ahead

AlixPartners’ Esben Christensen and Foster Finley examine the health of the global container shipping industry in the wake of the Hanjin bankruptcy. The industry desperately needs a change in the wind, but with more bankruptcies and continued consolidation on the horizon, this seems unlikely.

Bankruptcy Filings Decrease for Sixth Straight Year in 2016

For the sixth straight year, fewer bankruptcy cases were filed. American Bankruptcy Institute Executive Director Sam Gerdano and Consultant Ed Flynn provide a more nuanced look at the patterns that emerged in 2016 and predicts a quiet year ahead.

Retail Bankruptcy Cases: A Volatile Sector Faces More Turbulence

It’s no secret that brick-and-mortar retailers are struggling to stay in business. Stephen Selbst examines the factors that have created the current retail crisis. He explains why Chapter 11 does not effectively give retailers an opportunity to restructure and suggests avenues that lenders can take to protect themselves from exposure.

The American Apparel Show: A Rollercoaster Ride Through Bankruptcy and Back Again

American Apparel isn’t the only youth-oriented retailer that sought Chapter 11 protection in 2016, but its story is the most dramatic. Its first bankruptcy proceedings included a failed battle by ousted Founder and CEO Dov Charney to regain control. Six months after exiting Chapter 11, the company was back in bankruptcy with $30 million DIP financing from Encina Business Capital and a $66 million stalking horse bid from Canadian underwear manufacturer, Gildan. Is this American Apparel’s last stand?