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(Reuters) - Here is a look at some upcoming events of interest to the bankruptcy law community. Unless otherwise noted, all times are local, and court appearances are virtual due to the COVID-19 pandemic.

Wednesday, July 7

3 p.m. Houston-based retail electric provider Griddy Energy will seek approval of its proposed liquidation plan. Griddy filed for bankruptcy after the winter storm in Texas that wiped out power for millions left it owing $29 million to the states grid operator. The liquidation plan forgives customers debts in exchange for release from legal claims. The case is In re Griddy Energy LLC, U.S. Bankruptcy Court, Southern District of Texas, No. 21-30923. For Griddy: David Eastlake, Robin Spigel and Chris Newcomb of Baker Botts.

Thursday, July 8

9:30 a.m. Mall operator Washington Prime Group will seek final approval of a $100 million loan to fund operations during its bankruptcy. The company will also request approval of its proposed sale procedures. The case is In re Washington Prime Group, U.S. Bankruptcy Court, Southern District of Texas, No. 21-31948. For Washington Prime: Chad Husnick of Kirkland & Ellis.

Friday, July 9

9:30 a.m. Boeing equipment supplier TECT Aerospace Group Holdings will hold a sale hearing for its Kansas manufacturing facilities and related business. An auctionwas scheduled for June 30. The case is In re TECT Aerospace Group Holdings Inc., U.S. Bankruptcy Court, District of Delaware, No. 21-10670. For TECT: Daniel DeFranceschi of Richards Layton & Finger.

Know of an event that could be included in Week Ahead in Bankruptcy? Contact Maria Chutchian at maria.chutchian@thomsonreuters.com

Maria Chutchian reports on corporate bankruptcies and restructurings. She can be reached at maria.chutchian@thomsonreuters.com.

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Week Ahead in Bankruptcy: July 6, 2021 - Reuters

07 July 2021

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The U.S. Bankruptcy Code (the "Code") 11 U.S.C. 362(a)(1) provides that when a party files for bankruptcy,an automatic stay is triggered. However, it turns out that thereare limitations to the type of cases that these automatic staysextends, and in the employment context, this may not necessarilyinclude wage and hour claims.

For example, in the recent case of Stewart v. Holland Acquisitions,Inc. Case No. 2:15-cv-01094 (W.D. Pa. Feb. 2,2021), the U.S. District Court for the Western District ofPennsylvania held that the U.S. Bankruptcy Code's automaticstay does not extend to enforcement actions brought by the U.S.Department of Labor (DOL) under the Fair Labor Standards Act(FLSA). In applying section 362(b)(4) of the Bankruptcy Code torenounce the application of the stay, the court rejected a contraryholding out of the Sixth Circuit (which hears appeals from districtcourts in Kentucky, Michigan, Ohio, and Tennessee) that an employercannot shield itself from FLSA enforcement actions brought by theDOL by seeking to trigger the automatic stay protection under theBankruptcy Code. The court is now persuasive authority in the ThirdCircuit (which hears appeals from district courts in areas ofPennsylvania, New Jersey, Delaware, and the Virgin Islands).

So, how did this happen? First, Section 362(b)(4) of the Codecarves out a number of exceptions to the reach of the automaticstay, including one for certain police and regulatory actions asfollows:

The filing of a petition...does not operate as a stay...of thecommencement or continuation of an action or proceeding by agovernmental unit...to enforce such governmentalunit's...police and regulatory power, including the enforcementof a judgment other than a money judgment, obtained in an action orproceeding by the governmental unit's...police or regulatorypower[.]

In Stewart, the DOL filed a civil complaint againstHolland Acquisitions, Inc. (Holland), claiming that Hollandwillfully and repeatedly failed to pay its employees overtime andmaintain proper wage and hour records in violation of the FLSA.Holland later filed for chapter 11 bankruptcy protection and soughtto have the FLSA action stayed under the automatic stay provisionof the Code.

The court first found the DOL fell within the definition of a"governmental unit" as defined by section 101(27) of theCode. The court then found that the DOL was not seeking to enforcea pre-existing monetary judgment. Rather, the DOL was seeking tostop further FLSA violations and obtain back wages and liquidateddamages on behalf of the impacted employees.

Holland relied on Chao v. Hospital Staffing Services,Inc., 270 F.3d 374 (6th Cir. 2001) in arguing that the FLSAaction was not rooted in public policy because the DOL was seekingback pay, which is a private right, not a public one. The courtrejected Holland's attempt to stay the FLSA action and foundthat the Sixth Circuit's reasoning in Chao conflictedwith Third Circuit principles and, if applied to Holland,would "substantially impair the core remedial purposes of theFLSA."

In other words, even though the FLSA litigation could result inan award of back pay to specific individuals, the DOL'senforcement power is there to bring violating employers intocompliance with the FLSA. Accordingly, the court held that the DOLcould proceed with its action against Holland, notwithstanding theautomatic stay, which was applicable to stay other claims. However,while the court noted that the automatic stay would not prevent thecourt from entering judgment against Holland, to the extent the DOLobtained any judgment against Holland, enforcement would have to beadjudicated by the bankruptcy court, meaning the collection of anysuch monetary award would be subject to creditor priority rights asotherwise structured under the Code.

Holland's application is limited. First, it onlyapplies to employers within the Third Circuit. Second, it islimited to only wage and hour enforcement actions brought by theDOL. It is not applicable to private causes of actions pursued byemployees directly. The Holland decision does, however,create a circuit split on this issue, which could drive the issueto the U.S. Supreme Court as more and more circuits have theopportunity to weigh in on this issue. So, while not bindingoutside the Third Circuit, the Holland decision willprovide persuasive authority within the Third Circuit that thepolice and regulatory exception under section 362(b)(4) extends toFLSA enforcement actions, meaning the Code's automatic stayprotections will not protect a violating employer from theDOL's wage and hour division's grasp.

The content of this article is intended to provide a generalguide to the subject matter. Specialist advice should be soughtabout your specific circumstances.

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During the second trimester of 2021, 9 petitions in bankruptcy were filed, notified, and registered on the Federal Insolvency Institute's records.

ABC Aerolneas, S. A. de C. V. (Interjet).

Although Interjet announced its plan to file a voluntary petition in bankruptcy, a creditor filed an involuntary petition against the airline before a District Court in Mexico City. The involuntary petition was admitted on Abril 24, 2021 and Interjet appeared voluntarily to be served to process on June 21, 2021.

Desarrolladora Inmobiliaria Hotelera Playa Mujeres, S. A. de C. V. (Hotelera).

Hotelera, a development company, was sued for an involuntary petition in bankruptcy brought by three creditors before a District Court in Quintana Roo. The involuntary petition was admitted on June 8, 2021.

Drebbel de Mxico, S. de R.L. de C.V. (Drebbel)

Drebbel, a company that provides offshore integral inspection, construction, and trenching services for the oil and gas industry, was sued for an involuntary petition in bankruptcy brought by three creditors before a District Court in Campeche. The involuntary petition was admitted on March 29 but notified to the Federal Insolvency Institute in April 2021.

Impulsora Promobien, S. A. de C. V. (Promobien).

Promobien, a subsidiary company of Famsa (also in bankruptcy), filed a voluntary petition in bankruptcy in the reorganization stage on May 26, 2021, before a District Court in Nuevo Len.

Industrial Elctrica San Agustn, S.A. de C.V. (Elctrica San Agustn)

Elctrica San Agustn, an electric machinery company, filed a voluntary petition in bankruptcy in the reorganization stage on June 11, 2021, before a District Court in Tamaulipas.

Procesadora de Cermica de Mxico, S. A. de C. V. (Procesadora)

Procesadora, a company pertaining to the China & Earthenware Plumbing Fixture Manufacturing Industry, has been sued to an involuntary petition in bankruptcy brought by a Mexican bank before a District Court in Guanajuato. The involuntary petition was admitted on May 4, 2021.

Tecmasat Digitalizacin, S. A. de C. V. (Tecmasat)

Tecmasat, a document digitalization company, filed a voluntary petition in bankruptcy in the liquidation stage on April 20, 2021, before a District Court in Mexico City.

Textiles Romatex, S. A. de C. V. (Textiles Romatex)

Textiles Romatex, a textile and clothing company, filed a voluntary petition in bankruptcy in the liquidation stage on April 30, 2021, before a District Court in Estado de Mxico.

Vctima de la Moda, S. A. de C. V. (Vctima)

Vctima, a clothing retail company, filed a voluntary petition in bankruptcy in the liquidation stage on March 23, 2021, before a District Court in Estado de Mxico. The petition was admitted on March 25 but notified to the Federal Insolvency Institute in April 2021.

None of the abovementioned debtors has been adjudicated in bankruptcy yet.

For further information about bankruptcy law in Mexico, my work "Bankruptcy Law in Mexico", written in English, can be accessed at https://works.bepress.com/francisco-rodrigueznepote/4/, where it can be downloaded freely. A complete translation of the legal text can be found there, as well.

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Bankruptcies during the second trimester of 2021 in Mexico. - Lexology

Changing representation. Erika Jayne has hired a new attorney to represent her in her ongoing bankruptcy case, Us Weekly can confirm.

The Real Housewives of Beverly Hills star, 49, filed paperwork on Monday, July 5, notifying the court that her new lawyer, Evan C. Borges, will handle her case going forward.

Last month, her original attorney, Peter Mastan, filed a motion to be taken off the reality stars case after Hulu released The Housewife and the Hustler, a documentary about Erika and her estranged husband, Tom Girardi. The film included interviews with several clients who claimed that the Girardis had stolen settlement money earmarked for them.

The relationship of trust and confidence that is essential to a properly functioning attorney-client relationship has broken down and, in the good faith assessment of counsel, the relationship is irreparable, read the petition, filed on June 14. Three days later, however, Mastan filed another petition dismissing his original request to leave the case.

The hiring of Borges comes just days after a judge ordered the Pretty Mess author to turn over all of her financial records no later than Wednesday, July 21, at 5 p.m. The requested documents include bank statements, cashiers checks, money orders and any emails or texts related to her finances.

The Bravo personality had previously been accused of refusing to submit those documents during the ongoing bankruptcy case against Tom, 82. Erika has not been charged with any crime, but her legal woes have intensified as authorities investigate her exs finances amid her ongoing divorce proceedings.

Since filing for divorce from Tom in November 2020, the One Hot Pleasure singer has maintained that she did not know about her husbands financial troubles. The following month, however, she was hit with a lawsuit alleging that both she and her former spouse embezzled funds meant for the families of victims of the Lion Air Flight 610 crash.

In March, court documents revealed that Tom had been diagnosed with late-onset Alzheimers and dementia. He was placed under a temporary conservatorship, with his brother, Robert Girardi, taking control of his personal care and finances.

Three months later, however, he told the court that he wanted out of the conservatorship. Obviously, I disagree with the conservatorship altogether, he said during a hearing in June. I think that we should put together the reasons why the conservatorship should be dissolved, and then well address it, address the court.

With reporting by Marjorie Hernandez

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Erika Jayne Hires New Attorney After First Lawyer Briefly Dropped Her Amid Housewife and the Hustler Drama - Us Weekly

Five years ago, India came up with a legal answer to itsperennial economic challengeofrescuing the money stuck in zombie firms. Unlike China, which hasthe cushion of high savings, Indias inefficient use oflimited domestic capital has meant a chronic inability to put its swellingranks of youthto work. After toying with the ideafor more than a decade, the solution New Delhi hit upon was a modern bankruptcy code.

The numbers have beena mixed bag.According to an analysis by REDDIntelligence, of the 4,300-plus stressed debtors that have been taken through the 2016 corporate insolvency law, 48% were liquidated, half of them under 314 days. Of the 13% that got sold to bidders, half exitedbankruptcy in less than 425 days. These, as the REDD researchers note, arent bad outcomes, considering that wait times previously werefive-years-plus.

However, if the insolvency law did indeedlead to timely extractionof meaningfulsums, one shouldalso see redeployment of credit in new ventures. The evidence on this front is weak. At 6%, loangrowth is anemic.Companies dont want to borrow even at negative real interest rates; corporate leverage is at an all-time low of 0.46 times equity, according to the Boston Consulting Group.

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Incomplete bankruptcy reform isntthe only reasonIndian banks arent lending more to new firms,choosing instead to finance unsecured personal credit, which doesnt create many more new jobs. Over the past year, itcouldbe seen as a confidence issue. As a deadly second bout of the pandemic recedes, firms probably need assurancethat the economy wont be hit by lockdowns again. That would require a far greater proportion of the population to be fully vaccinated than the less than5% at present.

Yetthe bankruptcy code doesnt deservethe full benefit of the doubt. Its biggest failing is its institutional infirmity. Leaving aside a fewbig-ticket sales, mostly of steelmakers such asEssar Steel India Ltd.,the recovery rate for creditors has been just24%, according to Macquarie. While India is perhapsable to extricate capital fasterthan before, it still cant get much out of dead firms.

Even the insolvency tribunal issurprised that metals magnate Anil Agarwal is paying almostnothing to wrest control of Videocon Industries Ltd., after creditorsaccepted just 4cents on the dollar for their 648 billion rupee ($8.7 billion) exposure to theconsumer-appliance maker and its 12 group companies. Bankers to Siva Industries and HoldingsLtd. approved a one-time settlement with thecontrolling shareholder of the investing firm, taking a 93.5%hit on theiroutstanding claims of $650 million.In the case ofRuchi Soya Industries Ltd., lendersfirst agreed to a harsh haircut. Then they gavemoneyto Yoga guruBaba Ramdevs Patanjali AyurvedLtd.to take over the bankrupt edible-oil maker.

The low recovery rate isntdoing any favors to Indias state-run banks, which hold most of the souredloans. Severalof them will now own astake in Jet Airways India Ltd., which last flew more than twoyears ago. The airlines landing slots at airports havebeen given to other carriers, andthe pandemic has ravaged the economics of aviation.All thisdrama to recoup5% of loanswhen creditors had only to oustNaresh Goyal,the founder of what was once Indias dominantairline, in time. They didnt.Even now, Vodafone Group Plcs India joint venture is struggling to stay afloatbecause of extractive government demands, but bankers arent doing much to protect their exposureto the debt-laden telecom operator.

Political constraints have never allowed Indias publicinstitutionsto save capitalism from powerful capitalists, something that a tough bankruptcy law was supposed to change. It hasnt.Soemployees and vendors suffer, asdotaxpayers who fillstate-run banks capital hole. For nine years, Punjab National Bank, the second-largest of them by assets, has only fleetinglytraded above its book value, a reflection of what investors makeof theasset quality of public-sectorlenders.

In hindsight, giving poorly governed state-runbanks the power over assets was a bad idea. A U.S.-styledebtor-in-possession bankruptcymay have been far more suitable to Indias on-the-ground reality. Abusingproductive capital to benefita small, politically connectedcapitalist class has exacerbatedunfairness, and loadedthe dice against workersin a labor-surplus country.

AsObservatoryGroup analyst Ananth Narayan notes, Indias employment-to-population ratio, which was a steady 55% in 2005, has fallen to 43%. Bangladesh and Vietnam have fared better. Not all of the blame for inhibited employment can be laid on the doorstop of a flawed bankruptcy law. By ignoring low-skill textile and shoe manufacturing and overemphasizing high-skillsoftware, India has scored an own goal.

Still, thelarge-scale gaming of insolvencyresolution hascost India. Even before the pandemic, the financial system was creaking, Now, its just being kept in a holding pattern. Banks have the assurance ofgovernment guarantees onloans to pandemic-hit small businesses. The interest they need to pay savers is also being kept artificially depressed by the central bank in the face of persistently stubborn inflation. Even then, 9.8% of their loan book could sour by March 2022, the central bank has warned. The plan now is to shift at least $11 billion in dud corporate loansfrom commercial lenders to a newly created bad bank.

A junkyard for firms that have very little salvageable capitalwont do much for newinvestments. Rehabilitating assets that still have some value will require an urgent fix to the law. A bankruptcy salon offering90% haircuts is a sad joke on on Indias taxpayers, savers and workers.

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

To contact the author of this story:Andy Mukherjee at amukherjee@bloomberg.net

To contact the editor responsible for this story:Patrick McDowell at pmcdowell10@bloomberg.net

Before it's here, it's on the Bloomberg Terminal.

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India Needs a New Round of Bankruptcy Reform That Won't Stiff Creditors - Bloomberg

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The COVID-19 pandemic was not kind to car rental company Hertz, at least not at the beginning. When regular travel pretty much halted in the early part of 2020, Hertz filed for Chapter 11 bankruptcy. But as with so much during the pandemic, things evened out and then started to turn around for Hertz, and the company announced last week that it has emerged from bankruptcy as "a financially and operationally stronger company that is well positioned for the future."

As a customer loyalty move, Hertz said it will upgrade customers who join its rewards program, Hertz Gold Plus Rewards, to Five Star Elite through the end of 2021, and will offer double points on rentals by existing members through September 30.

The rebound was indeed dramatic, and the group of investors that ended up providing Hertz with $5.9 billion in capital was led by Knighthead Capital Management and Certares Management. Each of these investment firms will now get two representatives on the new Hertz board of directors, according to the Wall Street Journal, which also reported that one of the board's new independent directors is former Ford CEO Mark Fields.

The Journal called the bidding war for Hertz that played out this past May a "rarity in corporate Chapter 11 cases." In fact, the paper reported that in April, Hertz was telling its shareholders that they should expect to get nothing for their stock. But people were optimistic enough about Hertz not only to bring the company out of bankruptcy but to also drive the share price from under $2 during the pandemic to just under $9 this past week. Hertz shares, which trade on the over-the-counter market, were trading at over $15 before the pandemic, according to the New York Times. Hertz common stock started trading under a new ticker symbol, HTZZ, on July 1.

One reason Hertz managed this turnaround was the fact that it sold more than 200,000 of its 650,000 vehicles during the pandemic when demand for used cars was strong and Hertz wasn't earning money from at the time, since people, for the most part, stopped traveling.

"When the economy began to show signs of recovery earlier this year, we were perfectly positioned to drive a competitive process that would maximize recoveries," outgoing board chairperson Henry Keizer said in a statement. "The resultpaying our nearly $19 billion of creditors in full and returning substantial value to our shareholdersis remarkable."

Looking forward, the new Hertz will look a bit different than the old, bankrupt company. The new board chairman, Gregory O'Hara, told the Journal that new customer service models will be coming that eliminate the need for people to stand in line to get the keys to a rental car. He also said that Hertz will add more electric and alternative-fuel vehicles to its fleet. Hertz is now confident enough in the changes it has gone through, including reducing costs, negotiating cost concessions at some airport locations, and selling its Donlen fleet leasing business for $891 million in cash, mean Hertz is "on track for strong financial results in 2021."

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Hertz Exits Bankruptcy and Expects 'Strong Financial Results' in 2021 - Car and Driver

CNN Many consumer are still buying cars, despite the global shortage of car computer chips. General Motors reported a 40% jump in sales in the second quarter, compared to last year. The company also showed a 7% increase, compared to the first quarter this year. Toyota sales were up a whopping 73% compared to a year ago, and 14% compared to the first quarter.

Hertz has emerged from bankruptcy just in time to benefit from the rebound in travel across the U.S. The car rental company announced its bankruptcy has officially ended after more than a year. Hertz filed for Chapter 11 bankruptcy in May 2020, and sold more than 180,000 of its vehicles by the end of 2020, just as the prices of used cars climbed from a shortage of new cars.

Both the roads and the skies are expected to be busier than ever this Fourth of July. AAA says more than 635,000 South Carolinians are expected to travel for the holiday weekend. Thats up more than 35% from last year, amid the pandemic. Overall, more than 47 million Americans are expected to travel this Independence Day weekend.

ABC NEWS It is prime grilling season, especially heading into this holiday weekend. How do you know if your grill needs an upgrade? ABCs Dierdre Bolton has the details.

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Consumer News: GM reports jump in car sales, Hertz emerges from bankruptcy and more! - Abccolumbia.com

In todays automotive market, Ford Taurus is not your flashiest vehicle out there, but the history it carries with it is quite impressive. The Taurus car had a development budget of $3 billion and managed to save the company from bankruptcy in the early 80s.

The original Taurus family sedan was a godsend in 1980 when Ford had incurred $3 billion in losses and was desperate to climb back the stairs of success. In a final and desperate attempt to recover, Ford invested the equivalent of todays $7 billion in a new, revolutionary design that gave birth to the first generation of Taurus vehicles.

The design of the Taurus was so groundbreaking that the 1986 Ford Taurus was featured in every movie depicting the future.

The company had so little faith in its new endeavor that it even kept its LTD mid-size range in production, just in case their new plan failed. But it didnt. Not only that, but it even became the bestselling car in America back then.

However, the so-called jelly bean or flying potato car didnt come with the most performance-orientated features. Hence the Taurus SHO was developed, as the performance version of the Taurus, with a Yamaha-built V-6 engine, four overhead cams, and 24 valves. The SHO used a Mazda-sourced 5-speed manual and was the most powerful front-wheel-drive sedan in the world.

But the SHO didnt have the success of its predecessor, with the original Taurus selling in 400,000 units per year. The SHO didnt even manage to get close to the companys target of 20,000 cars sold annually. Well let you find out for yourself why, in Jason Cammisas Revelations video.

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A Lesson on the Flying Potato That Saved Ford From Bankruptcy in the 80s - autoevolution

RHOBH fans will finally know how XXPEN$IVE it is to be Erika Jayne.

The reality star, 49, was ordered to cough up her financial records as part of her estranged husband Tom Girardis bankruptcy case, per court documents obtained by Page Six on Wednesday.

Jaynes divorce attorney, Larry A. Ginsburg, was ordered to produce the records by 5 p.m. on July 21.

However, the star may be able to buy some time as she was given until 4 p.m. on July 16 to file an opposition to the order if necessary. And, Ronald Richards, the lawyer for the trustee overseeing the bankruptcy case, was given until July 23 to file a response if needed.

The How Many Fks singer was previously accused of refusing to turn over her bank records and using her glam lifestyle to cover up assets throughout law firm Girardi Keeses bankruptcy case.

She was also accused of creating a new company to funnel money through after filing for divorce from Girardi, 82, in November 2020 and before he was publicly accused of embezzling funds meant for Lion Air Flight 610 victims.

However, she fired back in legal documents that she has been and remains willing to cooperate fully with the investigation and asked for Richards to be removed from the case for making false and inflammatory social media posts and public statements about her and Girardi.

She also alleged that Richards continued to harass her publicly through extra-judicial statements, including social media to his over 16,000 followers and that he was engaging in YouTube interviews that harm the case.

Richards shot back in a statement to us, It is laughable to suggest that our 16,000 followers compared to Erikas 417,000 followers in a City of 12,500,000 would somehow would have an impact on anything. The first amendment does not leave itself in the doorways of the courthouse and the motion is a transparent attempt to interfere with the Trustees choice of counsel. These first amendment arguments were previously raised by her other counsel and rejected. No gag order was issued. Simply submitting innocuous and inadmissible hearsay comments on publicly filed documents does not create any relevant or actionable information.

The case is ongoing and it is still unclear if Jayne knew whether now-disgraced attorney Girardi had allegedly stolen money from his clients to fund their lavish lifestyles.

She denied having knowledge of his alleged crimes in the RHOBH Season 11 trailer, telling her co-stars that no one knows the answer [about what is going on] but him.

Jaynes lawyer didnt immediately get back to us.

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Erika Jayne ordered to turn over financial records in Tom Girardi bankruptcy case - Page Six

John McPherson was almost certain hed get rich from the Securities and Exchange Commissions whistleblower program. Instead, he ended up bankrupt and embittered.

Despite what the SEC called his extraordinary and continuing assistance in helping the agency shut down an alleged $1.4 billion investment scam, Mr. McPherson was notified last year that his whistleblower award would likely be close to zero.

The reason? The target company, Life Partners Holdings Inc., had declared bankruptcy, and the SEC never collected financial penalties it was owed. Investors, however, were able to recoup more than $1 billion through the bankruptcy process.

Mr. McPhersons experience illustrates a little-known facet of the SECs whistleblower program: The regulator wont pay awards for financial recoveries in bankruptcy proceedings, even if the affected company entered bankruptcy as a result of the agencys enforcement actions.

Some critics say that discourages people from reporting the most egregious fraudsPonzi schemes and companies with major accounting chicanerywhich often collapse or end up in bankruptcy court.

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Whistleblower Thought He Would Get a Big Payout. Instead He Got Nothing and Went Broke - The Wall Street Journal