In Trinseo’s bankruptcy cases, a key fight between the company and certain lenders excluded from two financing transactions escalated. On Monday (22 June), the company asked its bankruptcy judge to strike all four counts in litigation brought by the minority lenders seeking to unwind the transactions from 2023 and 2025. Trinseo argued that the excluded lenders, led by CastleKnight Management, violated the automatic stay by asserting claims that should have been brought before the Chapter 11 filing, or which rightly belong to the estates. As the week went on, the excluded lenders also battled with the secured lenders targeted in the litigation over discovery, and filed an opposition to a motion for dismissal of their lawsuit alongside an amended complaint, deepening their claims.

Elsewhere in the world of controversial financial exchanges, Optimum Communications, formerly Altice USA, saw a challenge to a proposed tender offer dropped by one of its shareholders. Paul Berger, as trustee for a revocable trust and on behalf of similarly situated stockholders, sued in Delaware Chancery Court on 9 June seeking to enjoin the tender offer and criticizing it as a “paltry” offer to shareholders. He argued that the USD 2.50 per share was not supported by typical disclosures from the company, just days after insiders were allowed to swap their shares for more valuable preferred units. However, after additional regulatory filings by the company, he wrote a letter stating he decided “not to seek to enjoin the tender offer or to take any action to impede its closing.”

Del Monte Foods Corporation, meanwhile, saw movement in its own minority lender-driven challenges. In its bankruptcy case, a group of lenders moved for direct appeal of the food producer’s confirmation order but was denied today (26 June). The alleged issues include whether creditors can be treated as retaining property under Bankruptcy Code section 1126(g) based on setoff and recoupment rights and a possible waterfall recovery; whether a bankruptcy court can require creditors to prove disputed administrative expense claims when weighing plan feasibility; and whether claims can be classified in a way that avoids creating a rejecting class.

Dipping further into the litigation pool, Genesis Healthcare yesterday (25 June) filed another lawsuit accusing insider Joel Landau and associate David Gefner of self-dealing. Those two were also subject to a separate complaint earlier in the bankruptcy which was ultimately settled. In this one, they were accused of severely harming the value of debtor leases by negotiating their transfer to a new holder, and in the process granting a short-term termination right which significantly damaged the leases’ value. The debtors have estimated the damages from Landau’s actions at roughly USD 50m.

Multiple companies also received confirmation of their Chapter 11 plans this week, including Hispanic-market broadcaster Spanish Broadcasting Systems (SBS) yesterday. SBS entered bankruptcy with a prearranged plan which broadly cancels existing notes in exchange for the issuance of new secured notes and new common stock, with the existing indenture continuing in effect – essentially, handing the company to bondholders. General unsecured claims will ride through unimpaired.

Earlier in the week, US Magnesium scored confirmation of a liquidation plan which broadly distributes the proceeds of multiple asset sales by the magnesium producer. The company’s plan was proposed by its unsecured creditors committee, which said in early May that proceeds totaled roughly USD 45m. Axip Energy Services also received confirmation this week of a plan which puts the estate into a wind-down led by a plan administrator to oversee claims. The plan is supported by a key UCC settlement distributing some sale proceeds to those creditors with the backing of the debtors’ ABL lenders.

Commercial flight trainer Avenger Flight Group also secured approval of a liquidation plan this week. It largely incorporates a waterfall for the distribution of proceeds from litigation claims held by a trust.

Looking abroad, New Fortress Energy affiliate NFE Global Holdings received Chapter 15 recognition of its UK-based restructuring today. Earlier this month, New Fortress received the English High Court’s sanction for two debt equitization plans. Proposed under Part 26A of the Companies Act 2006, the parallel plans are designed to hand ownership of the New York-listed integrated gas-to-power company to its creditors and significantly trim its debt pile, while shoring up the liquidity position through injection of around USD 885m of fresh funds in the form of new bond debt. Debtwire profiled the restructuring ahead of the Chapter 15 filing.

Among notable new filings this week is Camp Mystic, which owns a Christian summer camp at which several girls died in July 2025 following catastrophic flooding. While it has not yet filed key bankruptcy documents and thus not yet been profiled by Debtwire, the company ostensibly faces significant litigation liabilities from lawsuits filed by the families of flooding victims. Those lawsuits targeted the camp as well as its managers, alleging gross negligence. 28 in total died including campers and counselors, and according to national news coverage, families of 15 of them have since sued.

View all Debtwire coverage.

Next week, Debtwire subscribers can look forward to our coverage of confirmation hearings for TGI Friday’s and TPI Composites, plus Saks Global Enterprises’ sale hearing, and much more.

Six Month Lookback

The following table illustrates the number of Chapter 11 cases profiled by the Debtwire team during the last six-month period. Debtwire profiles cases for debtors that have at least USD 10m in funded debt or are otherwise significant.

The Week Ahead