QVC files for Chapter 11 to implement RSA

BY Fraser Tennant

Citing major financial headwinds, US media conglomerate QVC Group – the parent company behind well-known shopping channels QVC and HSN – has filed for Chapter 11 bankruptcy protection.

The filing will allow QVC to implement a restructuring support agreement (RSA) with holders representing a significant majority of the company’s outstanding funded debt. No layoffs or furloughs are planned in connection with the financial restructuring process.

Aiming to cut its debt from $6.6bn to $1.3bn and exit bankruptcy within 90 days, the RSA outlines the terms of a comprehensive prepackaged financial restructuring plan that will substantially reduce the company’s debt and strengthen its financial position.

As of 31 December 2025, QVC had over $1bn in domestic cash and cash equivalents. Together with cash generated from ongoing operations, the company has ample liquidity to meet its business obligations during the court-supervised process. Under the terms of the RSA, all third-party general unsecured creditors will have their claims paid in full or reinstated.

Not included in the court-supervised process are QVC’s subsidiaries and entities outside of the US. The only exception is a non-operating subsidiary in Luxembourg that has no team members, customers, vendors or business partners.

The company’s global business operations are continuing as normal, including customer-facing operations in the UK, Germany, Japan and Italy, and paying vendors and suppliers as usual across all of these geographies.

“We have consolidated our HSN and QVC operations, struck new deals with critical social and media partners, and rebalanced sourcing to account for the changing tariff environment,” said David Rawlinson, president and chief executive of QVC Group. “We are uniquely positioned to compete and win in live social shopping, and are seeing early momentum in our WIN Growth Strategy.”

Launched in 2024, the WIN Growth Strategy aims to drive long-term growth and profitability by repositioning QVC as a cross-platform live shopping ecosystem, spanning social media, streaming services, e-commerce sites and traditional TV broadcast channels.

“We appreciate the ongoing support of our valued vendors and business partners, and we are grateful to our team members for their unwavering dedication to QVC Group and our customers,” concluded Mr Rawlinson. “The Chapter 11 process will allow for QVC Group to have the financial structure it needs to accelerate our return to growth.”

News: TV shopping empire behind QVC, HSN files for bankruptcy amid mounting losses

Crytpo lender BlockFills has filed for Chapter 11 protection

BY Richard Summerfield

Chicago-based crypto trading firm BlockFills has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware as it seeks to restructure its business and stabilise operations.

According to court filings, the company has assets between $50m and $1bn and liabilities ranging from $100m to $500m. Court documents show that BlockFills expects between 1000 and 5000 creditors as part of the bankruptcy proceedings. Meanwhile, the 30 largest unsecured claims exceed $119m, with most classified as unliquidated customer claims.

The largest creditor listed in the filings is 007 Capital LLC, which holds a claim of about $17m. Other major claims include the Richard E Ward Revocable Trust with $9.4m and Artha Investment Partners LLC with $6.9m. The creditor list includes both institutional investors and retail participants from the global crypto market.

On Sunday, the company issued a statement noting that filing for Chapter 11 was the most responsible step after discussions with investors, clients and creditors.

According to BlockFills, the court-supervised process will allow it to restructure its operations, stabilise the business and explore new sources of liquidity while continuing to engage with stakeholders. The filing was “the most responsible path forward” following extensive discussions with investors, clients and creditors.

“This filing will allow the firm to implement an orderly restructuring while maintaining transparency and oversight through the court-supervised process,” the company said. It added that the move was intended to “stabilize the business, pursue additional sources of liquidity and recovery, and explore potential strategic transactions”, while maintaining that protecting client interests “remains a priority”.

BlockFills’ Chapter 11 filing comes against a backdrop of worsening legal pressures. Earlier in March, a US federal judge issued a temporary restraining order against BlockFills in a lawsuit brought by Dominion Capital, temporarily freezing certain assets tied to the dispute.

According to a 27 February court filing, Dominion accused BlockFills of misappropriating customer assets and refusing to return millions of dollars’ worth of cryptoassets that Dominion had stored on the BlockFills platform. According to Dominion, BlockFills had a balance sheet shortfall of roughly $77m by the end of 2025. Dominion alleged that BlockFills used those pooled assets to cover its own operating costs, including crypto mining operations, equipment purchases and settlements with other firms.

In light of its financial challenges, BlockFills suspended customer deposits and withdrawals on 11 February. The company has been dealing with financial pressure and legal issues tied to alleged asset misappropriation involving Dominion Capital. As a result, the company announced it was temporarily suspending client deposits and withdrawals “in light of recent market and financial conditions, and to further the protection of clients and the firm”.

According to BlockFills’ 2025 review, it processed over $61bn in transaction volume in 2025, up 28 percent from the previous year, and served over 20,000 institutional clients, including hedge funds and asset managers, across more than 95 countries.

News: Crypto Selloff Sends Trading Platform BlockFills To Ch. 11es/2453372/crypto-selloff-sends-trading-platform-blockfills-to-ch-11

Azul Airlines emerges from Chapter 11

BY Fraser Tennant

Marking a pivotal moment in the company's transformational journey, Brazilian airline Azul has completed its voluntary financial restructuring process and emerged from Chapter 11 bankruptcy protection.

The airline, which filed in May 2025 citing pandemic-related debt and operational costs, has strengthened its balance sheet, enhanced liquidity, reduced lease expense and liabilities, and improved every aspect of its operations to support long-term sustainability and sustainable growth.

Azul’s restructuring was supported by key financial stakeholders, including its existing bondholders, its largest lessor AerCap (representing the majority of the company's aircraft lease liability) and other lessors, original equipment manufacturers, and suppliers counterparties, and its strategic partners, United Airlines and American Airlines.

“This is a defining milestone for Azul,” said John Rodgerson, chief executive of Azul. “In just under nine months, we completed a comprehensive restructuring that has materially strengthened our balance sheet and positioned Azul for long-term stability. We are emerging from Chapter 11 with the support of some of the most respected financial and strategic partners in global aviation.”

This support includes $850m of new equity investments at emergence, including from existing bondholders and $100m from United Airlines, as well as commitment with American Airlines for an incremental $100m equity investment, subject to antitrust approval.

With a strengthened financial position and the continued support of its stakeholders, Azul is entering its next phase from a position of strength, and remains focused on connecting Brazil like no other airline while delivering industry-leading service, reliability and value to customers.

The largest airline in Brazil in terms of cities served, Azul offers more than 800 daily flights to 137 destinations. With an operational fleet of around 200 aircraft and over 15,000 crew members, the company operates a network of 250 direct routes.

Ranked by aviation data analytics company Cirium as the second most punctual airline in the world in 2023, Azul was also lauded as the best airline in the world by TripAdvisor in 2020, marking the first time a Brazilian airline achieved first place in the Traveler's Choice Awards.

“I am especially proud of our crew members, whose dedication and resilience allowed us to continue operating at a high level throughout this process,” added Mr Rodgerson. “Their unwavering commitment to our customers ensured Azul never lost focus on what matters most: connecting Brazil with excellence and reliability.”

News: Azul completes Chapter 11 restructuring, reduces debt by $2.5 billion

Spirit agrees Chapter 11 exit plan

BY Richard Summerfield

Spirit Airlines expects to emerge from Chapter 11 bankruptcy in late spring or early summer after reaching an agreement in principle with its existing debtor‑in‑possession lenders and secured noteholders. According to a company statement, this agreement will provide the financial support required to complete its restructuring and finalise changes intended to optimise its fleet, network and cost base. Spirit aims to return to the market as a strengthened low‑cost carrier offering both basic and premium options at the lowest possible fares.

Following its second bankruptcy filing in a year, the airline intends to reshape its business by expanding premium seating and focusing on routes with consistently strong demand. Under the restructuring plan, Spirit estimates that its debt and lease obligations will fall from $7.4bn to $2.1bn dollars. Spirit’s lawyer, Marshall Huebner of Davis Polk, confirmed that secured lenders will also release cash collateral to provide additional liquidity. The company entered bankruptcy again in August after experiencing falling cash reserves and ongoing losses.

“This agreement in principle is the result of months of hard work and allows Spirit to move toward completing its transformation,” said Dave Davis, president and chief executive of Spirit. “Spirit will emerge as a strong, leaner competitor that is positioned to profitably deliver the value American consumers expect at a price they want to pay.

“I am grateful to our Team Members for their dedication and unwavering commitment to our Guests throughout our restructuring. I also want to thank our Guests for continuing to choose Spirit to connect them to the people and places that matter most,” he added.

As part of its recovery, Spirit will reconfigure its schedule to increase aircraft utilisation during peak periods and on consistently popular routes, while reducing activity during times of lower demand. The carrier also plans to expand Spirit First and premium economy offerings and make improvements to its loyalty programme. Much of the future fleet will consist of older Airbus aircraft. Mr Huebner stated that annual fleet costs are expected to fall by $550m, a reduction of around 65 percent compared with levels before last year’s bankruptcy filing. The airline’s debtors are also pursuing a further $300m in non‑fleet cost savings.

To contain expenses during restructuring, Spirit has already reduced the size of its Airbus fleet and furloughed pilots and flight attendants, some of whom have since been recalled. The airline has faced persistent financial pressure as a result of a major Pratt & Whitney engine recall and the collapse of a planned acquisition by JetBlue Airways, which was blocked by a federal judge in early 2024.

Although Spirit forecast a net profit of $252m for 2025 in a December 2024 court filing, it reported losses of nearly $257m between 13 March 2025, when it exited its first Chapter 11 process, and the end of June. The company filed for bankruptcy protection for a second time shortly afterwards.

News: Spirit seals deal with lenders to emerge from bankruptcy as smaller airline

North Star Health Alliance files for Chapter 11

BY Fraser Tennant

Following a dispute with the New York State Department of Health over missing financial disclosures, home healthcare agency the North Star Health Alliance (NSHA), and three of its affiliates, has filed for Chapter 11 bankruptcy protection.

The decision to file was driven by complex events that generated a gap between the cost of services rendered and revenue received – a gap caused by, among other things, delays in payments while transitioning to a critical access hospital reimbursement model, increased operating expenses and multiple cyber attacks.

In addition to over 120 job cuts and the inoperability of several local clinics, the severe financial instability experienced by the NSHA in recent months also led to the resignation of its chief executive.

The Chapter 11 filing will allow the NSHA to commence a bankruptcy court restructuring process for itself and affiliates Carthage Area Hospital, Claxton-Hepburn Medical Center in Ogdensburg, and Meadowbrook Terrace, an assisted living facility in Carthage. 

The restructuring process is being undertaken as a voluntary, strategic and proactive action to realign financial obligations, ensure long‑term sustainability, and preserve the NSHA’s deep community roots and ability to provide quality healthcare. The NSHA plans to keep its hospitals and clinics open during the restructuring.

“We are taking this step to safeguard what matters most: quality driven care available close to home and the preservation of essential healthcare careers that support local families and anchor our North Country economy,” said Chet Truskowski, chairman of the NSHA board. “This court‑supervised restructuring puts us on a path to stabilise our finances while preserving essential services and protecting our workforce.”

The NHSA has stated that patients and their families can expect normal operations, access to appointments and continuity of all essential medical, surgical, behavioural health and assisted living services. In addition, employees will continue to receive regular pay and benefits throughout the Chapter 11 process.

“Providing for our patients and their families, caregivers and our staff that make up our community, is central to our mission,” concluded Mr Truskowski. “The Chapter 11 process is designed to ensure we can continue serving our neighbours for years to come.”

News: North Star Health Alliance files for Chapter 11 bankruptcy