Juul in denial? Crypto Cash Out, J&J Wait Continues and Healthcare’s Hard Times Continue | Seward & Kissel LLP

Below is our initial take on the latest bankruptcy-related developments:

Juul Prepares to Seek Funding for Potential Bankruptcy Process | The Wall Street Journal

Juul Labs Inc. has begun discussions with lenders for financing that could help the company through a potential Chapter 11 bankruptcy. Since June, Juul has been working with legal counsel to understand its options as disputes with the FDA intensified over whether Juul’s vaping products can remain on the U.S. market

S&K Roof: Juul is facing an FDA ban, as well as mounting lawsuits over its marketing practices. Depending on the outcome of the FDA appeal, it may be an open question whether this is a restructuring or a lawsuit. Altria (think Marlboro cigarettes) has already thrown up its hands and walked away from this one. This is a situation we will follow closely to see how things develop.

Celsius’ Top 3 Executives Cashed Out $42 Million In Crypto Before Bankruptcy | CoinDesk

According to new court records, three of Celsius’ top executives, including its former CEO and CSO, withdrew upwards of $42 million in cryptocurrency from escrow accounts just before the crypto lender suspended withdrawals and filed for bankruptcy.

S&K Roof: The Celsius situation seems to be moving forward at a much faster clip in recent weeks. Mashinsky resigned, and now a withdrawal of 10 million dollars is revealed on the eve of the trading halt. A sensor is also now in place, and the sensor report will be tense. On top of that looms a sales process. Lots of moving parts for sure. Hopefully, the end result is a material recovery for Celsius customers missing a significant amount of crypto.

US judge temporarily blocks two state lawsuits over J&J Talc Marketing | Reuters

A U.S. bankruptcy judge said the talc lawsuit against J&J must stay in New Mexico and Mississippi until an appeals court considers whether J&J can use its bankrupt subsidiary to settle claims against it.

S&K Roof: Judge Kaplan stayed lawsuits filed by New Mexico and Mississippi against J&J while we all await a decision from the Third Circuit regarding the viability of the “Texas Two-Step” bankruptcy that J&J is implementing. That decision will be massive, and could lead to the state’s legal proceedings being stayed. Unclear when the Third Circuit will rule, but the entire restructuring industry is certainly waiting with bated breath.

Hospital system for bad files bankrupt, blames on labor costs | The Bloomberg Act

Pipeline Health System, which operates hospitals and clinics for individuals on state insurance programs, filed for bankruptcy with plans to auction itself off in pieces or hand control to lenders.

S&K Roof: The wave of health-related restructuring continues. Pipeline serves communities in need of health care, so a quick bankruptcy is essential. The debtors have offered an exchange plan that would see the first mortgage lenders equity their debt or a sale of the debtor’s assets.