Commercial Bankruptcy

June 05, 2024

Wilmington Trust won the foreclosure judgment against a JV between Gateway at Wynwood and 2830 Wynwood Properties over a mortgage with $101.7 million in principal outstanding, plus interest and fees, for The Gateway at Wynwood office building and a neighboring bank office. The 14-story office building at 2916 N. Miami Ave. and the 5,187-square-foot bank branch at 2830 N. Miami Ave. will go to auction in July. The lender filed the foreclosure lawsuit in Mar., alleging the borrower started missing payments in Dec. 2023.

June 03, 2024

The firm signed a contract to buy the landmarked 95 Madison Ave. and plans to convert the office property to a 70-unit residential building. The building, owned by the Sklar family for over 80 years, slipped into bankruptcy in 2021 after the family was unable to decide what to do with it. The home was designated a New York City landmark in 2018 and is considered one of the earliest examples of a luxury residence atop a commercial building.

May 17, 2024

Tony Cheng’s Seafood Restaurant was sold at auction for $7.4 million a year after the business filed for Chapter 7. Baltimore Midtown emerged victorious after a flurry of 48 offers drove the price up from the stalking horse bid of $4.25 million. Marcus & Millichap’s The Zupancic Group marketed the property as part of the bankruptcy proceedings.

May 08, 2024

VMC TRS 4, in care of loan servicer Trimont, sold the 51-room hotel at 2216 Park Ave. to Blue Suede Hospitality Group. MVC TRS 4 seized the hotel in Apr. in a deed in lieu of foreclosure in exchange for releasing $13.68 million in mortgage debt to the prior owner. Totaling 25,931 square feet, the hotel was built on the 13,600-square-foot site in 1934 and renovated in 2014.

May 02, 2024

The company filed a foreclosure complaint in Palm Beach County Circuit Court against Coal Lake Worth, HFGC Florida, Coal Capital Holdings and Coal Capital Group. The suit targets the 69,533-square-foot, 109-bed treatment facility at 4140 Lake Worth Rd. Lapis says the borrowers defaulted on the mortgage by missing payments starting Dec. 31, 2023, and owe $17.3 million in principal, plus interest and fees.

April 30, 2024

The company scooped up 55 Eckford St. for $7.2 million in a foreclosure auction. The property was previously owned by Eckford-Greenpoint. The unfinished building on site consists of a six-story steel structure, which the buyer plans to develop into a residential property.

April 29, 2024

Foreclosure proceedings have started for a Marriott hotel in Raleigh and 29 other affiliated hotels across the U.S. which are part of a portfolio linked to an over $400 million mortgage. The Courtyard Raleigh Midtown hotel was categorized as "in foreclosure" by KeyBank National Association, the servicer assigned to the hotel's loan. The owner of the Raleigh property is Highgate. The Raleigh property is part of a 30-hotel portfolio that entered special servicing last August after the property's owner defaulted on its $415 million mortgage by missing payments in July and Aug.

April 09, 2024

HUSA LH VN deeded the 51-room Kayak Miami Beach hotel, located at 2216 Park Ave., to VMC TRS 4 in exchange for the release of a $13.68 million mortgage. The deal resolves a foreclosure lawsuit a lender filed against HUSA LH VN in April 2023 over the hotel. According to the complaint, the loan matured Dec. 31, 2022 and the borrower was not able to pay.

April 09, 2024

The company sold 3382 and 3394 Bailey Ave. to SSA REO Assets 06 in a deed in lieu of foreclosure. GNZR bought the roughly 25,000-square-foot building in July 2022 for $1.7 million, and it's anchored by 10 apartments.

April 02, 2024

The company completed a financial and corporate restructuring, marking the company's emergence from bankruptcy. PREIT filed for Ch. 11 bankruptcy protection in Dec. 2023 after the company's creditors agreeing to a "prepackaged" bankruptcy. PREIT reduced its total debt by roughly $835 million through a reorganization plan and commitments of $130 million of new money debtor-in-possession financing and exit revolver financing from a group of investors. The Pa.-based company owns and operates malls in N.J., Pa., Ma., Va., Mi., N.C. and S.C., in addition to properties in the multifamily, hotel and healthcare sectors.

March 28, 2024

Land in south Raleigh owned by David Phillips, owner of development company Phillips Enterprises, that was supposed to be part of a new subdivision has been foreclosed on and sold in a public auction. The highest bidder at the auction was 3513 Garner LLC, paying about $2.7 million. It is unclear who owns the LLC as the registration only shows a registered agent, not members. Phillips bought the land in June 2021 for $2.85 million from Prestige Construction and Land Development. Prestige filed a rezoning request for the property, along with two adjacent ones, in 2020. The rezoning was granted, adding a condition to preserve 20% as open space. After Phillips acquired it, a subdivision plan was filed by Tricor in Oct. 2022 for a 230-lot subdivision on the three parcels. City of Raleigh planning staff said the subdivision plan was withdrawn and there are no current plans or permits listed for the property.

March 25, 2024

LoanCore Capital, which extended a short-term mortgage to the apartment's owner in 2022, was the highest bidder at a foreclosure sale. Liquid Capital bought the 212-unit tower, called The Optimist Lofts, in 2022 but failed to pay debt payments starting in mid-2024, forcing LoanCore to push the property to foreclose. The Optimist Lofts was built in 2008.

March 25, 2024

Flushing Center Crossing picked up 34-20 Linden Place from Linden Center, a limited liability company. The 67,197-square-foot property, which has an alternative address of 33-37 Farrington St., is currently leased. 34-20 Linden Place's previous owner defaulted on a $16 million loan and filed for bankruptcy in May 2023.

March 19, 2024

Aventura MOB filed a foreclosure lawsuit against Aventura Eco-Offices Property Owner and loan guarantor Marlon Gomez concerning the 1.63-acre site at 21291 N.E. 28th Ave. The site was approved for a seven-story, 263,371-square-foot medical office building, which has been under construction since early 2023. According to the lawsuit, the borrower defaulted on the loan by missing payments starting in July 2023, and owes $15 million in principal, plus interest and fees. Gomez says he plans to repay the loan on Aventura Eco-Offices, but says he's faced hurdles obtaining construction financing to complete the project.

March 19, 2024

Stormfield SVP I filed a foreclosure lawsuit against Oasis Hospitality Partners II LLC and loan guarantor Mark McClure. The lawsuit concerns the 3,196-square-foot property at 1545 Meridian Ave. called Villa Merida, a bed-and-breakfast. Stormfield provided a $3.5 million mortgage to Oasis Hospitality Partners II in January 2023, but the borrower defaulted by failing to repay the loan at maturity on Jan. 15, 2024. The suit hopes to collect the owing mortgage and interest.

February 29, 2024

Formalized with a foreclosure notice, the company said it is exiting from a 50-year-old Georgetown office building its predecessor acquired ten years ago with CBRE Global Investment Partners as it looks to dispatch of "non-core assets." The Foundry, 1055 Thomas Jefferson St. NW, is to be auctioned during a foreclosure sale scheduled for Apr. 11. The notice lists $58 million is still owed to its lender, JPMorgan, who provided that portion of the $79.5 million needed to buy The Foundry in 2014.

February 21, 2024

The creditor acquired 41-60 Main St. in Flushing, Queens from Flushing Landmark Realty, which went bankrupt in 2020. The sale is part of Flushing's efforts to restructure its balance sheet. The property is a 100,500-square-foot commercial building.

February 14, 2024

The firm bought the foreclosed 41-unit apartment complex at 3052 Brighton 1st St. The seller was real estate developer Chaim Miller, who sold the property as part of bankruptcy procedures. Miller bought the land in 2012 from Brighton First for $827,000.

February 05, 2024

The company purchased the 9.21-acre property at 6650 Transit Rd. from USF Holland. USF is an affiliate of Yellow Corp., which closed abruptly in July 2023 due to financial problems and declared bankruptcy by August. Estes Express Lines did not divulge plans for the property.

January 22, 2024

Developer Yair Levy sold a Downtown Miami retail building, a 225,054-square-foot property, that was scheduled to be sold through a foreclosure auction. Called Time Century Jewelry Center, the five-story building spans 225,054 square feet at 1 NE First St. A JV between Elysee Investment Company and Pan Am Equities bought the space, with the purchase price almost equivalent to the loan that Levy defaulted on.

January 09, 2024

The company sold the six-story 74 Broad Street to Nassimi Realty in a deed in lieu of foreclosure sale. Caspi picked up the building for $14.3 million in 2014 and later redeveloped it into a boutique office building. However, Capsi defaulted on $17 million in loans and interest and was facing foreclosure from its lender, Pacific Western Bank. The buyer was undisclosed.

January 03, 2024

Calmwater Capital won a bankruptcy auction for the 200-acre property at 2020 Banyan Resort Way and took title to the land through Witkoff Group. The 150-room hotel on site wasn't completed by the prior owner before filing for Ch. 11 reorganization in March 2023. Witkoff plans to continue building the property, which will include three restaurants, a spa and fitness complex, a wedding venue, meeting space and a banquet facility for up to 200 people.

December 11, 2023

The Philadelphia-based trust filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Del. with a restructuring deal already in place with its lenders. If approved by the court, the company will be taken private and receive additional funding from a group of investors. PREIT expects to emerge from bankruptcy by early Feb., with the reorganization meant to reduce PREIT's debt by approximately $880 million and extend its maturity runway.

November 07, 2023

WeWork plans to use a restructuring support agreement with 92% of its noteholders to reduce its debt. Restructuring will include a "lease-rejection plan" allowing the company to terminate and reject leases at underused properties. The coworking organization has about 18 million square feet of office space in the U.S.

November 03, 2023

3034 Oak Park transferred the 35,850-square-foot site at 3034 Oak Ave. to Arbor Grove Development. The transfer is in lieu of foreclosure in exchange for the lender, Trez Capital, releasing $20.96 million in personal guarantees against 3034 Oak Park. Urban Atlantic Group and Oak Ventures are building the 52-unit Arbor condo in Coconut Grove, which broke ground in 2017 and is still not fully completed.

October 24, 2023

Blackstone is in discussions with CWCapital for "a possible deed-in-lieu" on the 1628 Chestnut St. hotel and four other Club Quarters properties in the U.S. A deed-in-lieu allows Blackstone to transfer ownership to their lender, Masterworks Development, and be relieved of their mortgage debt without going through formal foreclosure proceedings. Blackstone says hotel operations and workers at their properties will not be impacted by the expected transition.

October 12, 2023

O'Brien-Staley Partners acquired RDU Center III, an office building in Morrisville, offering the highest bid on a foreclosure sale, bidding $12.5 million. The Dilweg Companies of Durham, the previous owner, returned the building to its lender, First National Bank, after defaulting on loan payments. The office building was purchased by Dilweg for $23.25 million in 2014 as part of a portfolio deal.

September 22, 2023

Championship Academy of West Broward risks losing its charter school in Sunrise following a foreclosure lawsuit filed by UMB Bank. The bank filed the lawsuit as a trustee for investors in education facilities revenue bonds. Championship Academy acquired two educational facilities revenue bonds for a total of $8.8 million in 2018 when it acquired the property at 7100 W. Oakland Park Blvd. The lawsuit alleges that Championship Academy defaulted on that loan by failing to make payments beginning in July 2021.

August 31, 2023

The firm has taken control of the Whale Building, located at 14 53rd St. in Sunset Park. The company, which acquired the 500,000-square-foot building's debt from TPG Real Estate Finance Trust in early 2023, submitted the winning bid for the property at a foreclosure auction. Capstone plans an aggressive search to attract tenants to fill up the building, which is roughly 6% leased. The 7-story Whale Building was built in 1918 for the Whale Oil Co. and renovated in 2016.

August 24, 2023

Grace Apartment Homes at 609 Virginia Ave. is scheduled for an auction on Sept. 5, 2023. The complex, built in 1988, includes 270 units and borders the Atlanta BeltLine Eastside Trail. MSC Investment & Management, who bought the complex in 2022 for $81 million, did not specify the factors causing the foreclosure. The complex at 609 Virginia is not MSC's only apartment property up for foreclosure, as a 250-unit property in Sandy Springs with a $47.5 million loan will also go before an auction on Sept. 5.

August 18, 2023

U.S. Real Estate Credit Holdings was declared the winning bidder for the auction of The Banyan Cay hotel after the initial winner, Westside Investment Partners, failed to complete the transaction. Banyan Cay Resorts & Golf filed for Chapter 11 reorganization in Mar. to stay a $95.1-million foreclosure judgment from U.S. Real Estate, resulting in the company's latest build going up for sale. U.S. Real Estate was the main lender for the hotel build.

August 07, 2023

The developer claims an inability to obtain financing doomed the project and bankruptcy is necessary to sell the property. Casco purchased 540 W. 21st St. by 11th Avenue in 2014 and planned to build a 20-story project with 34 condos, 5,000 square feet of retail space and a 49,000-square-foot gallery on site. However, Casco has not been able to secure construction financing for the development, according to the bankruptcy notice. Casco has already found a potential buyer, 550W21 Owner, and hopes to complete proceedings later in 2023.

June 22, 2023

A federal bankruptcy judge says can enter into a $21.5 million deal with Bed Bath & Beyond to buy certain assets, nearly two months after the home goods retailer filed for Ch. 11 protection with $5.2 billion in debt. Bed Bath & Beyond is still seeking final approval for JOWA Brands to purchase certain intellectual property assets of Bed Bath & Beyond's Wamsutta brand, and for Ten Twenty Four to acquire the retailer's website domain, As part of its purchase, will assume all liabilities arising from the ownership of the acquired assets and cure costs.

June 06, 2023

Royal Ridge, a six-story, 160,539 square foot office building was acquired by Lockwood Development Partners. The previous owner, Richmond Honan, filed for bankruptcy, stopping a foreclosure sale in October of last year. Located at 11680 Great Oaks Way in Apharetta, Ga., the property features a fitness center, restaurant, shipping and receiving dock, showers and lockers.

May 25, 2023

The 275-room Club Quarters Philadelphia hotel is heading into foreclosure after negotiations stalled on a delinquent commercial mortgage-backed securities loan valued at $274 million. CWCapital, which has been the special servicer on the loan since mid-2020, is "pursuing foreclosure" for the hotel located at 1628 Chestnut St. and three other Club Quarters hotels in Chicago, Boston and San Francisco secured by the loan. The loan was originated by Bank of America in 2017 to the hotels' owner, and has been on a watchlist since early in the pandemic and been delinquent for 34 months.

May 15, 2023

The company says the filing is the fallout of having to cut costs to survive a weak advertising market amid slowing economic growth. Vice Media Group filed for bankruptcy protection in order to engineer its sale to a group of lenders. Vice's lenders, Fortress Investment Group, Soros Fund Management and Monroe Capital, agreed to make a $225-million credit bid for the company's assets plus its liabilities, plus provide a $20-million cash infusion to keep the business running, though during this time the company can receive other bids. Vice says that it's business as usual at the company and that it expects to emerge from the Chapter 11 bankruptcy auction in as little as two to three months.

May 04, 2023

Shops@Birds & 89 submitted the petition to the U.S. Bankruptcy Court in Miami for its 6,926-square-foot retail center at 8934 S.W. 40th St./Bird Road. In 2022, Red Oak Capital Fund filed a foreclosure lawsuit against Shops@Bird & 89 over the property concerning a mortgage with $4.42 million in principal outstanding, plus interest and fees. The Ch. 11 filing put on hold an auction of the property by the current lender, with Shops@Bird & 89 trying to sell it instead in order to pay off creditors.

April 24, 2023

The big box retailer filed for bankruptcy protection following years of dismal sales and losses and numerous failed turnaround plans. The company will start winding down its operations while seeking a buyer for all or some of its businesses. In the bankruptcy filing, the retailer listed estimated assets and liabilities in the range of $1 billion to $10 billion and said it anticipates closing all of its stores by June 30. For now, the company's 360 Bed Bath & Beyond stores and its 120 Buy Buy Baby sites as well as its websites will remain open to serve customers.

April 17, 2023

The brand filed voluntary petitions for relief under Chapter 11. It is seeking authorizations to continue payments of employee wages and benefits, maintain customer programs and honor vendor obligations. Physical stores and online platforms will remain open as it evaluates its physical footprint and explores the sale of assets.

April 05, 2023

The company agreed to pay $8.9 billion to settle tens of thousands of lawsuits alleging that talc in its iconic Baby Powder and other products caused cancer. The J&J subsidiary, LTL Management, filed for bankruptcy protection for a second time with the intent to present a reorganization plan containing the proposed settlement, adding that 60,000 talc claimants had agreed to the proposal. The agreement follows an appeals court ruling invalidating J&J's controversial "Texas two-step" bankruptcy maneuver, in which it sought to offload the talc liability onto a subsidiary that immediately filed for Chapter 11.

April 04, 2023

The 29-unit, apartment hotel was won in bankruptcy court by 942 Pennsylvania Owner. Sitting on a 7,000 square foot site, the unit at 942 Pennsylvania Ave. is set up for short term rentals. The previous owner, 942 Penn RR, filed for Ch. 11 reorganization in Miami in May of 2022.

March 31, 2023

The company will sell up to $300 million of its stock to repay creditors and fund its business as it struggles to avoid bankruptcy. Bed Bath & Beyond was able to initially avoid bankruptcy by completing a complex stock offering that gave it both an immediate injection of cash and a pledge for more funding to pay down its debt. That offering was backed by private equity group Hudson Bay Capital, but Bed Bath & Beyond said it was terminating the deal for future funding and is turning to the public market.

March 30, 2023

Banyan Cay Resort & Golf filed the Ch. 11 petition in U.S. Bankruptcy Court in West Palm Beach, owing over $100 million to assorted investors. The Fla.-based debtor owns the 150-room Hyatt-branded hotel at 2020 Banyan Resort Way, a 130-acre golf course, and multiple development sites approved for 179 condo units, 28 single-family homes and 22 villas. Banyan Cay says the filing will give the company time to plan an exit from bankruptcy without having to sell properties.

February 27, 2023

The Fort Lauderdale firm filed for Chapter 11 reorganization in a Fla. federal court, claiming the bankruptcy occurred after the company's former president and only shareholder, James DeRosa, used money earmarked for client use to pay off the company's ongoing losses. JDI Data says DeRosa and the company's former CEO participated in a Ponzi-type scheme to convert the clients' funds to personal funds without the client's knowledge. The firm is surrendering its leased office at 100 W. Cypress Creek Road and has not determined if it will re-open a physical location.

February 21, 2023

The developer of Banyan Cay Resort in West Palm Beach filed for bankruptcy after facing foreclosure actions from two lenders that seek to recoup $100.4 million. Banyan Cay's parent company submitted its Chapter 11 petition the same day Calmwater Capital won a final judgment for $94.1 million against the development entity, Banyan Cay Resort & Golf, in Palm Beach County Circuit Court. That judgment is tied to an unpaid $61 million construction loan for Banyan Cay. The Banyan Cay Resort Fund is also after a repayment of a $6.3 million messanine loan. Both parties are seeking to acquire an unfinished Banyan Cay hotel project in Miami to sell at auction to help recoup money owed.

February 16, 2023

The company has filed for Chapter 11 bankruptcy protection for the second time in three years, and secured $51 million in financing to keep its stores open. The company has almost 500 stores, down from about 700 stores in 2020, and it plans to close more. Unpredictable retail spending, which crashed during COVID, is cited as one of the reasons for the bankruptcy filing.

January 31, 2023

The Third Circuit dismissed the Chapter 11 case of Johnson & Johnson's talc unit that used a controversial "Texas two-step" maneuver, saying the company was not in financial distress and lacked the required good faith to commence its bankruptcy case. The decision reverses rulings from a N.J. bankruptcy judge that allowed the case of LTL Management to proceed as the company tried to deal with billions of dollars in liability related to its talc products, with tens of thousands of claimants alleging it caused deadly diseases including mesothelioma and ovarian cancer. Johnson & Johnson will likely appeal, stating that bankruptcy remains the most fair and efficient way to administer the talc claims.

January 22, 2023

Ramarama, a Durham real estate developer, has again filed for Chapter 11 bankruptcy protection, listing both assets and liabilities as ranging between $1 million and $10 million. Ramarama's attorney says the company is "committed" to repaying its creditors in a way that maximizes the value of its two building development projects in downtown Durham. Ramarama previously filed for bankruptcy, but it was dismissed with prejudice in 2021 after the company failed to participate in the case. A judge accepted the company's latest filing, but noted that creditors have been harmed by Ramarama's previous bankruptcy filing and unwillingness to participate in the processes necessary for a successful reorganization, and barred Ramarama from refiling any bankruptcy proceeding for one year.

January 19, 2023

The restructuring process is expected to reduce the company's debt and optimize its capital structure and liquidity. Party City expects to complete the restructuring process in the second quarter of this year. Party City's says its over 800 stores will remain open during the bankruptcy process and it will continue with business as usual. Party City cited pandemic headwinds, a global supply chain crisis and other macroeconomic challenges as the reasons for filing.

January 05, 2023

Bed Bath & Beyond is preparing to seek bankruptcy protection in coming weeks, following poor sales and an inability to compete with large online and big-box retailers. The retailer is considering skipping debt payments due Feb. 1. The company said it was exploring a range of options to address its plunging sales that included declaring bankruptcy. The retailer said it has not made any final decisions on which course to take.

January 04, 2023

O'My Foods, which makes O'My Dairy Free Gelato, filed for reorganization in the Eastern District of Virginia. The company listed 50-99 creditors and liabilities between $1 million and $10 million. It listed assets at between $500,000 and $1 million.

January 05, 2023

Madera Community Hospital, a Madera, Calif.-based healthcare provider with over $200 million in total patient revenue and 106 staffed beds, filed for Chapter 11 bankruptcy and will be permanently closing its doors on Jan. 10, 2023. Madera Community Hospital had previously entered into an agreement with Trinity Health, whereby Trinity would've acquired the struggling hospital. Trinity ultimately decided not to go ahead with the partnership. All patients remaining at the hospital on the closing day will be transferred to other hospitals by Jan. 17, 2023.

January 04, 2023

An Illinois-based Burger King franchisee put its subsidiaries operating 90 stores in bankruptcy, citing a pandemic-driven revenue decline and increased overhead costs. The Chapter 11 filings submitted by TOMS King Holdings' operating subsidiaries reveal they owe about $35.5 million in secured debt to Bank of America. They owe another $14 million of unsecured debt to certain vendors, landlords and Burger King Corp., according to the filings in the U.S. Bankruptcy Court for the Northern District of Ohio.

December 30, 2022

Argent Ventures wants to reorganize the finances of the hotel's home, 1601 Broadway, having gained control of the 46-story tower in the heart of Times Square by vanquishing office giant SL Green in court and replacing Vornado Realty Trust. Penson had elbowed his way into the property via the purchase of the $526-million mezzanine debt on which Vornado had defaulted. The 795-room hotel offers 196,300 square feet of office space and 17,800 square feet of retail. The hotel, which occupies floors 15 through 46, closed when COVID arrived, but reopened last month. 

December 29, 2022

Although Aeromexico had successfully emerged from the Chapter 11 process in March 2022, the case was still open. The court closed the case considering, among other things, that Aeromexico's plan of reorganization was substantially consummated. The Mexican carrier first filed for bankruptcy proceedings in June 2020, in the midst of the COVID-19 pandemic.

December 28, 2022

A group of four FTX customers asked a bankruptcy judge to rule their holdings in the Bahamas-based exchange belong to them, rather than FTX. They want the judge to give customers repayment priority over other FTX creditors, according to a Delaware bankruptcy court filing. The group is also asking to have the suit certified as a class-action case. Authorities accuse the exchange's founder, Sam Bankman-Fried, of fraudulently raising $1.8 billion from investors and using FTX funds to make high-risk bets at his hedge fund, Alameda Research, and cover personal expenses. 

December 28, 2022

More companies backed by PE firms filed for bankruptcy in the U.S. in 2022 compared to the previous year, but the total number of restructurings remained relatively low, according to data from S&P Global Market Intelligence. The tally increased to 49 in 2022 from 42 in 2021. Among the 49 PE portfolio companies that went bankrupt in 2022, the consumer sector accounted for 15 bankruptcies as the most impacted subsector, followed by 11 deals from the healthcare sector.

December 27, 2022

Davenport Extreme Pools & Spas filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Western District of Kentucky. The company has nearly 100 creditors with an approximate $50,000 in assets and under $50,000 in estimated liabilities.

December 22, 2022

Keen-Summit Capital Partners confirmed the U.S. Bankruptcy Court for the Western District of Texas, Austin Division, approved bid procedures and an auction related to the approximate $75-million stalking horse contract for the sale of 13 single-story office buildings and one retail strip center in Austin, Tx. The portfolio includes approximately 545,000 square feet of office space and 15,300 square feet of retail. The property owner, WC Braker Portfolio LLC, filed Chapter 11 on May 2, 2022.

December 23, 2022

3M can't shift responsibility for more than $300 million in damages awarded to veterans over defective combat earplugs to a unit that filed for bankruptcy, a judge ruled. The court sanctioned 3M by ordering it to accept all liability for the faulty ear-protection. The judge said 3M attempted to switch its litigation position in bad faith after almost four years of legal wrangling over more than 230,000 lawsuits involving the products. Analysts say 3M faces more than $7 billion in liabilities over the faulty products. More than a dozen juries have found veterans’ hearing loss was tied to the defective earplugs and ordered the company to pay more than $300 million in damages. 3M also has won six defense verdicts in so-called test trials. 3M said it would appeal the ruling.