Jace Ferraez is a lawyer and bankruptcy clerk in Columbus, MS. We asked Mr Ferraez what are the top current cases that readers should know about, and Jace lists the following: Boy Scouts of America, Johnson & Johnson and the Queen Mary.
These cases range from individual bankruptcy filings to large organizations trying to reorganize with bankruptcy protection. Read on to learn from Jace Ferraez what is happening in the big bankruptcy news.
Former Queen Mary operators speak out on bankruptcy case
Former Queen Mary operator Taylor Woods faces multiple fraud lawsuits for the way he manages his finances, including asking for a Paycheck Protection Program loan of $ 2.4 billion on behalf of Urban Commons Queensway.
Jace Ferraez notes that this recent court appearance of Woods and his partner Howard Wu reveals that the loan was obtained in error when Woods made a clerical error while applying for the loan. This led to Woods securing $ 2.4 billion in Covid-19 relief funds.
This appearance came after Judge Christopher Sontchi found the two individuals in contempt of court. Sontchi found a problem with the way Woods and Wu got away with the funds and haven’t paid anything back yet.
According to Woods, $ 1 million went to the City of Long Beach to cover rent and taxes, and the rest went to Urban Commons to reimburse the company for all expenses related to Queen Mary.
There is no evidence yet of exactly how the money was handled.
Woods and Wu have said they intend to use the equity in the Wager Hotel in New York which the two partly own. Urban Commons filed for bankruptcy in January and has since returned control of the Queen Mary to the city of Long Beach.
Johnson & Johnson bankruptcy case moved to New Jersey
Johnson & Johnson’s has filed for bankruptcy in North Carolina following several lawsuits over the brand’s baby powder containing asbestos that causes malignant tumors in people exposed to it. Over 36,000 lawsuits are pending against this large company.
Cory Ferraez, brother of Jace and personal injury lawyer at Ferraez & Associates, says the lawsuits have cost the company more than $ 3.5 billion in settlements to date, not to mention the billion dollars spent in defense costs. Johnson & Johnson tries a Chapter 11 bankruptcy plan, also known as “reorganization” bankruptcy.
This type of plan would save the company billions by reducing the possibility of future lawsuits regarding talc containing asbestos and any subsequent medical issues.
The Johnson & Johnson plan would go through North Carolina bankruptcy courts, but bankruptcy judge Craig Whitley said he felt compelled to move the case from state to New Jersey. This is where Johnson & Johnson is headquartered and also where thousands of lawsuits await.
Cory Ferraez notes that by moving the case to New Jersey, Johnson & Johnson is in a less favorable position to end future talc-related lawsuits. Based on past cases handled in the state, J&J is unlikely to use bankruptcy to block or delay further lawsuits.
Boy Scouts of America come up with plan to avoid bankruptcy
The Boy Scouts of America have proposed a new plan to avoid bankruptcy following several lawsuits that expose decades of sexual abuse within the organization. The Boy Scouts of America initially filed for bankruptcy in February 2020 with the intention of using funds to compensate survivors.
The new plan proposed by the Boy Scouts of America involves the use of settlements with other businesses and organizations, such as The Church of Jesus Christ of Latter-day Saints, to fund compensation for survivors, according to Cory Ferraez .
Jace Ferraez relays that this plan also proposes that benefits be provided to various organizations that have assisted BSA in its activities, including schools and churches.
All troop sponsors would be released from their responsibility for sexual abuse and they would cede their rights to insurance coverage to a trust that would be used to compensate survivors.
Critics of this plan claim that the Boy Scouts of America are abusing the bankruptcy system to avoid responsibility for crimes committed under their watch. The next court hearing for this case is scheduled for January 2022.
At this point, the judge may not approve the BSA’s proposed plan and the bankruptcy case will proceed as originally planned.
Jace Ferraez and Cory Ferraez on the future
These cases are not likely to resolve anytime soon, so Jace Ferraez says to keep an eye out for new developments in the bankruptcy cases of Taylor Woods and Howard Wu, Johnson & Johnson and The Boy Scouts of America. Expect Jace and Cory to take a look at how they anticipate business advancement and research potential summaries in the months to come.