Endo Gets Out Smoking, Book of Mormon, 3M District Court Warning, Celsius BTC Mining Approved | Seward & Kissel LLP

Below is our initial take on recent bankruptcy-related developments:

Endo files for bankruptcy as US opioid litigation drags on | Reuters

Endo International Plc filed for bankruptcy this week, becoming the latest pharmaceutical company to file following opioid lawsuits. Endo reached a $6 billion deal with some of its creditors before declaring bankruptcy.

S&K Take: Another big opioid-related domino falls. Based on day one deposit activity, this one appears to be contentious. A group of unsecured noteholders are already challenging Endo’s exclusivity and pointing to a huge valuation problem. Buckle up.

Boy Scouts Walk Back $250 Million Abuse Settlement With Mormon Church | Reuters

A U.S. bankruptcy judge has rejected part of the Boy Scouts of America restructuring proposal that involved a $250 million payment from a Mormon church to the BSA settlement fund.

S&K Take: While Judge Silverstein approved the bulk of the Scouts’ plan, the releases related to the Mormon Church were not tailored enough to be accepted. These have been dropped from the plan to get things done, meaning the Mormon Church may have to revisit the negotiating table with the claimants. The continuation of the plan should continue, even if certain insurers continue to raise objections.

Judge rejects veteran’s bid to stop 3M from waiving responsibility for MDL earplugs | Reuters

A US judge has rejected a plaintiff’s bid to prevent 3M from escaping liability for claims against a bankrupt subsidiary responsible for producing inadequate earplugs.

S&K Take: The most recent case of the Texas Two-Step (esque) saw some interesting early moves. A Florida district judge has returned to bankruptcy court to determine whether a stay of claims against non-debtor 3M is appropriate, though the judge had harsh words about filing for bankruptcy. The judge decided that the bankruptcy could not be used to revive issues already decided by the MDL. The trial regarding 3M’s suspension began this week in bankruptcy court.

Crypto Lender Celsius Gets Court Approval to Sell Bitcoin, But Not Stocks or Debts | Reuters

U.S. Chief Bankruptcy Judge Martin Glenn has approved crypto lender Celsius to mine bitcoin for profit during its bankruptcy, but won’t allow the company to sell equity or debt investments in other crypto companies until they can provide more information about the assets they would like. sale.

S&K Take: Although Judge Glenn raised some concerns regarding the sale of mined BTC, he ultimately deferred to the business judgment of the debtors. It did, however, expressly limit the assets that could be sold, noting that if debtors sought to sell other assets such as debt securities and equity investments, they would have to return to court.

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