A federal judge on Wednesday said he was leaning toward dismissing Rudolph W. Giulianis request for bankruptcy protection after months in which the former New York mayor ignored court filing deadlines and evaded questions about his finances.

Should the judge follow through and dismiss the case, it would allow creditors to pursue foreclosures, repossessions and lawsuits that have been on hold for over six months as Mr. Giuliani, who served as a personal lawyer for former President Donald J. Trump, sought the protection of bankruptcy law.

In his latest shift in legal strategy, Mr. Giuliani himself asked the court in a filing on Wednesday morning, just minutes before a scheduled hearing, to dismiss his bankruptcy petition, which he filed after being held liable for $148 million in damages for defaming two Georgia election workers.

Im leaning toward dismissal, frankly, because I am concerned that the past is prologue, Judge Sean H. Lane of the U.S. Bankruptcy Court in the Southern District of New York said at the hearing, adding that he believed Mr. Giulianis lack of transparency with the court would continue.

Mr. Giuliani filed for bankruptcy in December, after a federal jury awarded the damages to the election workers, Ruby Freeman and Shaye Moss.

His main goal in bankruptcy was to hold off paying them without having to post a bond while he appealed the judgment. But the bankruptcy court did not allow him to do this.

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Excerpt from:

Judge Suggests He Is Likely to Dismiss Giulianis Bankruptcy Case - The New York Times

Basic Fun, a Florida-based toy design and development company that since 2019 has owned the Tonka toy brand, has filed for Chapter 11 bankruptcy protection as part of a financial restructuring plan.

Per regulatory filings with the U.S. Bankruptcy Court for the District of Delaware, leaders of the Boca Raton-based company estimated Basic Fun's debt to be between $50 million and $100 million, with fewer than 50 creditors. Its assets, the filing said, are less than $50,000.

The company is seeking approval of $50 million in debtor-in-possession financing, a specific type of financing for companies going through bankruptcy. The financing would come from affiliates of Great Rock Capital, plus a $15 million letter of credit from RBC and Basic Fun's founders, Jay Foreman and John MacDonald, to keep the business afloat during the restructuring proceedings, according to a release from the company.

Basic Fun acquired Tonka from Hasbro in 2019. Hasbro had owned the Tonka brand since 1991. Other toy brands owned by Basic Fun include My Little Pony, Lite Brite, Lincoln Logs, Care Bears and Tinkertoy.

In a statement, Foreman, also the company's chief executive and majority shareholder, said a number of setbacks led to financial distress for the business.

"Since the demise of our industry's largest toy retailer, Toys 'R' Us in 2018, through the tumult of the trade wars with China in 2019, COVID in 2020 through 2021, the travails of the supply chain crisis in 2022, inventory overstocks in 2023 and a consumer slowdown in the early part of 2024, our industry and Basic Fun have been through a gauntlet of challenges," he said. "We intend to use the restructuring process to put those challenges in the rear-view mirror, enabling us to secure a successful future and position us for growth and value creation."

Toys 'R' Us has reopened as a smaller player under new ownership.

Operated and based in Mound, a Twin Cities suburb, Tonka originally began in 1946 as Mound Metalcraft. Founders Al Tesch, Avery Crounse and Lynn Baker created the business to make metal items like tie racks and gardening tools. In 1947, Mound Metalcraft began manufacturing metal toys based on a toy steam shovel designed by Streater Industries, a Minnesota company later known for its retail merchandising displays.

The company gradually switched to predominantly toy manufacturing, with six employees assembling just two models, a steam shovel and a crane. Mound Metalcraft became Tonka Toys Inc. in 1948, named after nearby Lake Minnetonka.

By 1968, the company moved headquarters from Mound to offices just west of Minneapolis. Between 1974 and 1975, the company reached $102 million in annual sales and had facilities in eight countries. The Mound plant employed more than 2,000 people.

In 1983, Tonka closed the Mound plant and moved all manufacturing to El Paso, Texas, and Juarez, Mexico.

Read more:

Toy company that owns Minnesota-made Tonka brand files for Chapter 11 bankruptcy protection - Star Tribune

Court proceedings in Rudy Giulianis bankruptcy case hit a boiling point Wednesday when lawyers for the creditors owed $148 million by the former New York City mayor floated the possibility of seeking jail time for his alleged bankruptcy crimes.

In New York federal court, Rachel Strickland, an attorney representing the two Georgia 2020 election workers who Giuliani defamed, pushed to have Giulianis Chapter 11 bankruptcy case thrown out, offering that Giuliani could receive a hall pass if the court did not do so, the Independent reported.

Strickland alleged Giuliani, the former attorney for Donald Trump, has used the proceedings to protect himself from the financial ramifications of the defamation case, and pointed to how he has time and again refused to follow requirements that he disclose his income and assets, according to Politico.

He regards this court as a pause button on his woes while he continues to live his life unbothered by creditors, Strickland added. If the case is dismissed, creditors will be able to hold Americas mayor accountable for the harms hes caused.

The assertion prompted Giuliani to interrupt on the call, characterize Stricklands statements as highly defamatory, and request a break, which U.S. Bankruptcy Judge Sean Lane declined to give.

Gary Fischoff, Giuliani's attorney, later clarified Giuliani would not be committing any bankruptcy crimes.

Lane indicated he was leaning toward dismissing the case, namely because of his concern Giuliani has used the matter to delay the payouts, per Politico.

I am concerned that the past is prologue, the judge said, adding he remains concerned the difficulties that weve encountered in this case in terms of transparency will continue and dog the case.

According to the Independent, Giuliani was initially seeking to convert the case from a Chapter 11 to a Chapter 7 to liquidate his assets.

But just before the hearing began, Giulianis legal team changed course and indicated it also supported dismissing the case. Fischoff said a dismissal would allow for the best chance for an appeals ruling in the defamation case.

Continued here:

Rudy Giulianis Bankruptcy Case Devolves Into Threats of Jail Time - The Daily Beast

Rudy Giuliani proposed to a judge he leave bankruptcy protection on Wednesday before a pivotal hearing where the former New York City mayor stands to potentially lose control of all of his assets, and he is already upset with how the proceedings are going.Related video above: Former Georgia election workers awarded $148M in civil suit against GiulianiHis two most significant creditors, Ruby Freeman and Shaye Moss, the Georgia election workers whom he defamed, asked the bankruptcy judge in recent days to toss Giuliani out of bankruptcy, so they can pursue his assets to begin to collect the $148 million he owes them.If the judge agrees with their plan which Giuliani says in his new court filing he is now on board with Freeman and Moss are entitled to take both of his homes immediately, in Florida and New York, their bankruptcy attorney Rachel Strickland told CNN.The next steps are being discussed at length in a court hearing that is ongoing in federal bankruptcy court in White Plains, New York.Giulianis attorney Gary Fischoff told the judge at the start of the hearing on Wednesday his team believed the purpose of Giuliani for being in bankruptcy has run its course.Fischoff added the assets Giuliani has that Freeman and Moss may be able to claim immediately are jewelry and his two apartments.Giuliani has piped up a few times in the hearing already after calling in via his iPhone, about 10 minutes late.He is currently trying to tell the judge he believes the creditors committee has been defaming him, but the judge, Sean Lane, asked him not to interrupt. If the judge does not agree to dismiss the bankruptcy case, Giuliani has asked the judge to change the classification of his bankruptcy, from Chapter 11 to Chapter 7, which would limit creditors ability to pursue his incoming income.Other creditors have been arguing to the judge to remove all of Giulianis accounts from his control and place them under the control of a Chapter 11 trustee. That committee does not wish for Giuliani to leave bankruptcy.This is slick maneuvering, Daniel Gielchinsky, a bankruptcy expert who isnt involved in the case but following it closely, said in response to Giulianis 11th-hour move.Giuliani has repeatedly said he plans to appeal the jury verdict Freeman and Moss won against him late last year, but cant while he is in Chapter 11 proceedings.Bernie Kerik, a close friend of Giulianis, told CNN on Wednesday morning that his spirits are great.But hes frustrated with the system, Kerik added. Hes really frustrated by frivolous , such as his many ongoing civil and criminal court proceedings.The two men had spoken Tuesday night, Kerik said, but hadnt discussed Giulianis bankruptcy situation.

Rudy Giuliani proposed to a judge he leave bankruptcy protection on Wednesday before a pivotal hearing where the former New York City mayor stands to potentially lose control of all of his assets, and he is already upset with how the proceedings are going.

Related video above: Former Georgia election workers awarded $148M in civil suit against Giuliani

His two most significant creditors, Ruby Freeman and Shaye Moss, the Georgia election workers whom he defamed, asked the bankruptcy judge in recent days to toss Giuliani out of bankruptcy, so they can pursue his assets to begin to collect the $148 million he owes them.

If the judge agrees with their plan which Giuliani says in his new court filing he is now on board with Freeman and Moss are entitled to take both of his homes immediately, in Florida and New York, their bankruptcy attorney Rachel Strickland told CNN.

The next steps are being discussed at length in a court hearing that is ongoing in federal bankruptcy court in White Plains, New York.

Giulianis attorney Gary Fischoff told the judge at the start of the hearing on Wednesday his team believed the purpose of Giuliani for being in bankruptcy has run its course.

Fischoff added the assets Giuliani has that Freeman and Moss may be able to claim immediately are jewelry and his two apartments.

Giuliani has piped up a few times in the hearing already after calling in via his iPhone, about 10 minutes late.

He is currently trying to tell the judge he believes the creditors committee has been defaming him, but the judge, Sean Lane, asked him not to interrupt.

If the judge does not agree to dismiss the bankruptcy case, Giuliani has asked the judge to change the classification of his bankruptcy, from Chapter 11 to Chapter 7, which would limit creditors ability to pursue his incoming income.

Other creditors have been arguing to the judge to remove all of Giulianis accounts from his control and place them under the control of a Chapter 11 trustee. That committee does not wish for Giuliani to leave bankruptcy.

This is slick maneuvering, Daniel Gielchinsky, a bankruptcy expert who isnt involved in the case but following it closely, said in response to Giulianis 11th-hour move.

Giuliani has repeatedly said he plans to appeal the jury verdict Freeman and Moss won against him late last year, but cant while he is in Chapter 11 proceedings.

Bernie Kerik, a close friend of Giulianis, told CNN on Wednesday morning that his spirits are great.

But hes frustrated with the system, Kerik added. Hes really frustrated by frivolous [expletive], such as his many ongoing civil and criminal court proceedings.

The two men had spoken Tuesday night, Kerik said, but hadnt discussed Giulianis bankruptcy situation.

More here:

Giuliani proposes leaving bankruptcy as creditors ask for a trustee to control his assets - WBAL TV Baltimore

Former Trump advisor and New York City mayor, Rudy Giuliani, is facing yet another financial and legal hurdle as a New York bankruptcy judge appears ready to toss out his 2021 bankruptcy, potentially allowing for a full liquidation.

Im leaning toward dismissal, frankly, because I am concerned that the past is prologue, U.S. Bankruptcy Judge Sean Lane said, per Politico. "The difficulties that weve encountered in this case in terms of transparency will continue and dog the case.

Giulianis bankruptcy, stemming from several costly settlements, still left the former NYC mayor with over $40,000 in monthly spending cash, a figure which he reportedly blew past since the December 2021 filing.

Giuliani has lost a number of gigs recently, including a spot on a conservative radio show and his license to practice law in New York, due to his promotion of election misinformation and illegal schemes to overturn the 2020 election.

If tossed, Giuliani would have to liquidate his assets to pay the staggering sums he owes to two Georgia election workers who he repeatedly defamed, leading to violent threats against the pair, among numerous other debtors.

He regards this court as a pause button on his woes while he continues to live his life unbothered by creditors, an attorney for the Georgia election workers said in court. If the case is dismissed, creditors will be able to hold Americas mayor accountable for the harms hes caused. Its time for Mr. Giuliani to go back to the real world.

The financial issues add to his mounting legal troubles, as he doubles down on election denialism amidst an Arizona prosecution of his false elector role.

Judge Lane reportedly plans to have a ruling in by Friday.

Link:

"Back to the real world": Court set to toss Giuliani bankruptcy - Salon

Fisker Inc. co-founders Henrik Fisker and his wife, Geeta Gupta-Fisker, are lowering their salaries to $1 in order to keep their failed EV startups bankruptcy proceedings funded, as lawyers work to complete a sale of its remaining inventory.

Fisker Inc.s restructuring officer, John DiDonato, said in a Tuesday morning filing that the couple, who co-founded the startup in 2016, made the decision July 8 just five days after he was grilled about the issue by Linda Richenderfer, a lawyer for the office of the U.S. Trustee.

In that July 3 hearing, Richenderfer asked DiDonato whether the Fiskers were still on the payroll. Richenderfer wanted to be sure that every other option had been exhausted given that the lawyers for the company were asking the court to approve an expedited sale of Fiskers EVs (at least the ones designed for North America) in order to fund the rest of the Chapter 11 case. Those funds are meant to cover legal proceedings and the wind-down of the company.

DiDonato stumbled trying to recall what Henrik and Geeta were currently being paid but told Richenderfer that their salaries were undertaking a modification and possibly some deferrals.

Its still not clear what the couple were being paid every other week as the company slid into bankruptcy. The company said in a regulatory filing last year that it paid them a minimum-wage salary in 2022, which at the time in California was $62,400. But they were each additionally paid cash bonuses of $710,000.

In addition to the salary reductions, DiDonato said in Tuesdays filing that Fisker will defer certain severance payments, certain employee healthcare benefits, and vehicle sale incentive bonuses that have not yet been paid. Most of Fiskers workforce, which was around 1,300 in September 2023, has been whittled down to about 130 people.

All of this comes as the company is pushing to sell more than 3,000 of its remaining Ocean SUVs to American Lease, a New York-area company that mainly serves ride-hail drivers, in a deal that is supposed to net around $46.25 million. And while Fisker is in agreement to make that sale to American Lease, another potential buyer has approached the startup but that unknown party is under NDA and its not been made clear what, exactly, they might want and what theyd be willing to pay.

A lawyer for Fisker said at the July 3 hearing that the plan was to parcel out about 200 Oceans to American Lease at a time, due, in part, to a problem with the EVs water pump that can cause the high-voltage battery to lose power. Fisker needs to fix that problem on every car before it can be sold because the part is now under an official recall with the National Highway Traffic Safety Administration.

With the cost-saving measures DiDonato laid out, along with additional cash coming in from prior vehicle auctions and interest on bank accounts, Fisker now thinks it can fund the case over the next few weeks. A final decision on the approval of the sale to American Lease is now not expected until July 16.

I think holding the hearing on that date allows a little more breathing room for the parties and potential other events, Brian Resnick of Davis Polk, who represents Fisker in the bankruptcy case, said in a hearing Tuesday morning. That includes the potential new buyer for Fiskers assets, Resnick said, but he added: Were certainly not taking our eye off the ball on the American Lease transaction.

In the interim, the fight between Fiskers lone secured creditor Heights Capital Management, an affiliate of financial services company Susquehanna International Group and its many unsecured lenders continues. A committee of unsecured creditors was finally formed last week, and their legal representation got its first chance to speak at Tuesdays hearing.

That lawyer, Doug Mannal of Morrison Foerster LLP, didnt waste the moment. He spent about 10 minutes of the roughly 30-minute hearing building on claims, frustrations and allegations made by another lawyer who spoke on behalf of an unsecured creditor in the first Chapter 11 hearing on June 21. Mannals speech aimed to deliver the court a message: The committee of unsecured creditors is uncomfortable with the way that Heights wound up first in line for all of Fiskers assets.

Heights extended around $500 million worth of loans to Fisker in 2023. That debt was not secured by any collateral, but instead could be converted into Fisker stock. When Fisker was late in filing its third-quarter financial results in late 2023, that breached one of the covenants of the deal with Heights.

Somehow and its still unclear exactly what happened here Fiskers way of making good with Heights was to pledge all of its assets as collateral for the remaining debt. What would be a relatively benign event in most other situations has had a dramatic impact on Fisker, Mannal said in the hearing. He also noted that the covenant breach allowed Heights to convert and sell Fisker stock at a juicy premium, essentially turning $1 into $1.60 by flipping it on the open market.

Mannal accused Heights of using Fisker as a money tree and claimed theyve already made back far more than the value of the original loans. He therefore questioned why Heights is still claiming to be owed more than $180 million debt that remains collateralized by all of Fiskers assets when the unsecured creditors are collectively owed around $1 billion.

Scott Greissman, a partner at White & Case LLP who represents Heights, said the firm has at all times acted within the four corners of a series of contracts with Fisker. He reminded the court that Fisker was a publicly traded company with a board of directors and fine counsel, all of whom oversaw the negotiations of the original loans and the agreement to repair the breach.

Your Honor, similar to the first day hearing, different law firm, same allegations, perhaps a little more dramatic, we dont think its appropriate necessarily at all to respond to any of these allegations that Mr. Mannal has stated on the record almost in the form of testimony, Greissman said. We are very concerned that the [unsecured creditors] committees approach to the case will destroy value rather than enhance it.

(One way the committee of unsecured creditors is already trying to enhance the value of whats left at Fisker: It was the one that found the new potential buyer.)

Whichever way the next few weeks go, Greissman stressed the point that, though Fisker entered a Chapter 11 proceeding, Heights sees this as a liquidation and little else. Every dollar expended is unrecoverable, he said. Even an approved sale wont necessarily sustain a Chapter 11 case, especially a highly litigious one.

Originally posted here:

Henrik Fisker drops salary to $1 to keep Fisker Inc. bankruptcy case alive - TechCrunch

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Rudy Giuliani warned by judge at chaotic bankruptcy hearing - The Daily News Online

Redbox and its parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy in a Delaware court June 29 and claimed nearly $1 billion in debt. Its a reorganization, not a dissolution, so the red refrigerator-sized kiosks often found outside drug stores and in-grocery vestibules are not (yet) going the way of the VHS. However, its already bad news for physical media.

The obituary for physical movie rental has long been a work in progress, dating back to Blockbuster Video filing for bankruptcy protection in 2010. Netflix, then primarily a DVD-by-mail service, destroyed the brick-and-mortar business. Within a few years, it was clear that streaming was Netflixs future although it didnt mail its last DVD until September 2023.

This year, we saw Best Buy stop carrying DVDs and Blu-rays while Disney pulled the plug on its own physical home-entertainment business, outsourcing production to Sony. Walmart, Target, and Barnes & Noble still carry a torch for physical media, but DVDs increasingly populate their bargain bins. With Prime Video, Amazon has a homegrown incentive to move toward digital delivery. Next-gen video-game consoles wont even have disc slots, which means a lot fewer homes will have DVD players.

If retailers cant be bothered, why should studios continue making DVDs? Rather than see it as a death knell, some wonder if this shift in the market opens a door for physical media enthusiasts.

Im really hoping they see it as an opportunity. If Disney can outsource to Sony, why couldnt the studios outsource to places like Criterion or Kino Lorber? said Leah Aldridge, a professor of Film and Media Studies in Chapmans Dodge College told IndieWire. Im banking on an entrepreneur to come through and say, Let us do it. Well take it on. Well do it cheaper than Sony.'

Joe Rubin, co-founder anddirector of acquisitions at cult DVD distributor Vinegar Syndrome, said the upheaval has some advantages. Studios now seem more willing to license their titles for collectors editions; in the past the answer would be a flat no or an impractical yes the kind that comes with astronomical expectations.

The reduction in interest in physical media at studios has been something of a blessing, because its made those titles available, Rubin said.

That doesnt mean were in for a boon of opportunity for indie DVD distributors. Theres a growing gap between the casual movie fans who want their own copy of Barbie and the collectors who want the 4K edition of the 1986 Chuck Norris thriller Invasion U.S.A.

I dont think that the home video or physical media market is expanding, Rubin said. Its hit its peak. Its plateaued. If anything, its going to start contracting. And this may not be a true sign of death for it, but its definitely not getting any bigger. Were not seeing growth.

Vinegar Syndrome handles home video and DVD sales for smaller distributors. It has about 30 independent partners, including the smallest niche distributors and more mid-sized players like Utopia and IFC Films. Rubin said many other niche DVD distributors have cropped up to fill the void left by the major studios, but none of them operate on a scale that could handle outsourcing for an entire studio.

I dont know that we or any of the other companies of our size are really set up for it, he said. The logistics of working with a major studio is always going to be more difficult than working with an independent filmmaker or a smaller distribution company just because of how their own businesses are structured more departments to go through, more clearances, more strictness.

Its been a long time since DVDs were a key revenue stream for studios, but DVD production is very cheap. If a movie can justify the cost, studios will still make the effort. Aldridge said some international markets havent fully matured with streaming and still need discs, as do some pockets of the U.S.

If places like Redbox go out of business entirely, those consumers could be completely out of luck for new movies outside of first-run theaters (and some regions dont even have that). With more forced to pay monthly streamer subscription fees, score that as another reason for studios to lose interest in physical media. Places like Vinegar Syndrome have anticipated some of these changes and moved more of their operations to their website and DTC offerings rather than rely on third-party sellers.

Maybe theres a possibility that DVDs could become the new vinyl another outdated format, which turned its impracticality into cachet. However, LPs have an advantage that DVDs do not: Record stores exist across the country; specialty video stores are few and far between. As much as Rubin said hed like to champion more obscure titles in need of discovery and preservation, the DVD releases most likely to see a return have a built-in audience.

Redbox could have been a solution, but it still required you to leave your home in an age when everything is available at your fingertips. According to Rubin, Redbox courted Vinegar Syndrome to supply the kiosks with more niche offerings. But Redbox required scale thousands of discs sans packaging to pack their kiosks. The partnership never came to pass, and the movie selection at most Redbox locations remained limited to more recent, forgettable studio movies you probably wouldnt watch if they were available on a streamer for free.

Shortly after the now-ousted Redbox CEO Bill Rouhana acquired Redbox in May 2022, he told IndieWire that there was absolutely nothing in [the kiosks] today that youd want to watch. Now Redbox feels as antiquated as the Blockbuster video stores it was meant to replace.

See more here:

Why the Redbox Bankruptcy Is Very Bad News for DVD and Blu-ray Collectors - IndieWire

Former New York City Mayor Rudy Giuliani faced a threat of jail during a chaotic bankruptcy hearing on Wednesday (July 10). Judge Sean Lane, who presided over the hearing, warned Giuliani that his microphone could be cut off due to repeated interjections.

The judge also indicated that he was leaning towards dismissing Giuliani's bankruptcy case, with a final ruling expected later this week.

Giuliani's bankruptcy was triggered by a $148 million verdict against him after he falsely accused Georgia election workers Shaye Moss and Ruby Freeman of 2020 election fraud. During the hearing, Giuliani contested his creditors' allegations of bankruptcy crimes.

Highly defamatory, your honor! Giuliani exclaimed.

The former mayor's creditors, including the electronic voting machine company Dominion Voting Systems and former employee Noelle Dunphy, accuse him of using bankruptcy as a delay tactic while hiding assets and spending extravagantly. They propose appointing a bankruptcy trustee to take control of Giuliani's assets and monitor his finances.

Giuliani's team agreed with the election workers' proposal to dismiss the bankruptcy less than an hour before the hearing. However, the official creditors committee wants to remain in the bankruptcy system, fearing they would otherwise be left with nothing. The case continues to unfold, with the final ruling expected on Friday.

Read the rest here:

Rudy Giuliani Threatened With Jail By Opposing Lawyer At Bankruptcy Hearing - KFI AM 640