creditors committee

Corizon Reaches Bankruptcy Deal That May Allow It to “Profit at the Expense of Creditors”

    • Leading prison health provider Corizon Health split last year and filed one company, called Tehum, into bankruptcy
    • Sources tell Insider the parties reached a tentative settlement of $30 million, a small fraction of the company’s debt
    • That deal could leave hospitals and hundreds of prisoners who claim they were harmed by Corizon with tiny settlements
    • Sen. Elizabeth Warren is now looking into Corizon’s use of a controversial legal maneuver called the Texas Two-Step

Corizon Health, once the nation’s largest prison healthcare provider, reached a tentative bankruptcy deal last week that could leave hundreds of prisoners with pennies on the dollar for their medical malpractice claims. 

If the settlement is approved, it would mean that Corizon’s owners succeeded in their use of a controversial financial maneuver called the Texas Two-Step. In a recent civil complaint, Isaac Lefkowitz, a company representative, said the Two-Step is used to “force plaintiffs into accepting lower payments.”

Sen. Elizabeth Warren has called Corizon’s use of the Two-Step “an alarming red flag.”

According to two people close to the negotiations, the settlement figure

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Revealing FTX Customer Names Would Hurt ‘Potential Reboot’, Bankruptcy Lawyer Says

Releasing the names of bankrupt crypto exchange FTX’s 9 million customers could harm a “potential reboot” of the company, attorneys for the creditors committee argued on Wednesday.

It’s the latest development in an ongoing dispute over whether the names of FTX’s creditors ought to be made available to the public. Beyond privacy concerns, lawyers for the creditors committee are now arguing that revealing those names could further harm the value of the company, and therefore harm creditors.

“There were an awful lot of retail investors here and so there is inherent value within those lists and that’s uncontroverted—I think everyone agrees with that,” Paul Hastings partner Kris Hansen, an attorney representing the creditors committee, said during a court hearing in Delaware.

“So in balancing that, we looked at it and said we’ve got two major tasks here,” said Hansen. “One is to assess the value associated with these assets from a sale perspective and to assess the value associated with these assets for a potential reboot is how we’ve been referring to it on our side. The reboot is complicated,” he said.

Hastings’s referral to the “value” of the list has to do with one of the arguments being

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