December 8, 2025 - Spirit Airlines, SilverRock Development, The Stephan Company, First Brands Group, 23andMe

This episode covers key developments in five major restructuring and bankruptcy cases:

Spirit Airlines seeks court approval for a $140 million engine settlement with International Aero Engines to resolve disputes stemming from the Pratt & Whitney engine crisis that grounded much of its fleet. The agreement includes engine credits, replacement leases, and new purchase commitments as the airline works to stabilize operations.

SilverRock Development proposes a liquidation plan following the $65 million sale of its stalled luxury resort project in La Quinta, California, with secured creditors expected to recover in full and unsecured creditors receiving interests in a litigation trust.

The Stephan Company, a Florida-based beauty products holding company, files for Chapter 11 to address over 700 talc-related lawsuits, proposing a Section 524(g) trust funded by insurance proceeds to resolve long-running product liability claims.

First Brands Group seeks court approval of procedures to reconcile $2.5 billion in fraudulent customer invoices, after investigators uncovered extensive factoring irregularities that froze $250 million in payments and created chaos among lenders.

And a Missouri bankruptcy court caps a landlord’s $9.7 million claim against 23andMe—now Chrome Holding—at $5.6 million, reaffirming that Section 502(b)(6) limits on lease rejection damages apply even to solvent debtors.

💡 From aviation and luxury real estate to personal care and biotech, this episode explores how settlements, fraud investigations, and legal caps on creditor claims are shaping the latest wave of complex restructurings and bankruptcy rulings.

Thank you for listening! Visit stretto.com for more information.

Follow us on LinkedIn.