legal claims

Prison healthcare company restarts mediation after bankruptcy judge Jones quits

U.S. <a href=bankruptcy judge, under ethics review, steps back from major cases”/

U.S. Bankruptcy Judge David Jones speaks during an interview with Reuters in this screen grab taken from a Reuters video on October 13, 2023. REUTERS TV via REUTERS Acquire Licensing Rights

  • Mediator had resigned after admitting relationship with lawyer
  • Judge urged a full review of medical malpractice settlement
  • Tehum Care will renew mediation on Nov. 27

Nov 14 (Reuters) – Prison healthcare company Tehum Care Services received court approval on Tuesday to proceed with a new mediator who will replace former bankruptcy judge David Jones, who resigned from the bench over his romantic relationship with an attorney involved in the negotiations.

Tehum Care, which filed for bankruptcy in February to address prisoners’ medical malpractice lawsuits against its corporate predecessor Corizon Health, had reached a mediated bankruptcy settlement which would have allocated roughly $8.5 million to settle prisoners’ and former prisoners’ claims.

But before the deal was approved, attorneys for prisoners and the U.S. Department of Justice’s bankruptcy watchdog argued that the settlement was tainted because Jones, while serving as a mediator in the case, failed to disclose that he shared a home with attorney Liz Freeman, who represented Tehum’s

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Celsius Network chooses NovaWulf bid for bankruptcy exit

Feb 15 (Reuters) – Crypto lender Celsius Network will seek to exit bankruptcy under the guidance of asset manager NovaWulf Digital Management, which will take over the operations of a new company that will be owned by Celsius customers, the company said at a court hearing in Manhattan on Wednesday.

The proposed deal with NovaWulf should allow Celsius to exit Chapter 11 and begin returning crypto assets to customers in June, Celsius attorney Ross Kwasteniet said at Wednesday’s hearing.

Celsius selected NovaWulf’s bid out of more than 130 proposals received, saying that NovaWulf was the only finalist that intended to maintain long-term control over Celsius’ harder-to-liquidate assets, like its loan portfolio and bitcoin mining business.

Those assets would be owned by Celsius creditors and managed by NovaWulf under a profit-sharing agreement if U.S. Bankruptcy Judge Martin Glenn, who is overseeing Celsius’ Chapter 11 process, and creditors sign off on the deal.

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Crypto lenders such as Celsius boomed during the COVID-19 pandemic, drawing customers with the promise of high interest rates on their cryptocurrency deposits and the ability to borrow against their crypto assets. But many companies in the highly interconnected sector went bankrupt

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