Judge Michael B. Kaplan, Vegas Squeeze & the First Brands Conspiracy

This week’s episode of The Octus Download brings together judicial perspective on bankruptcy pressure points, tourism market stress signals, and pop culture’s take on financial collapse.

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Inside the Bankruptcy Courtroom with Judge Kaplan

New Jersey bankruptcy court. U.S. Bankruptcy Judge Michael B. Kaplan joins hosts Jason Sanjana and Kevin Eckhardt to discuss how bankruptcy really works when systems are under stress. Include:

Who is involved: Judge Kaplan has presided over major Chapter 11 cases including LTL Management, Rite Aid (both filings), and Invitae since joining the bench in 2006.

What makes this conversation unique: The judge addresses criticism over Chapter 22 filings and explains why borderline feasibility often leads to plan confirmation rather than rejection.

Legal and practical stakes: Thousands of jobs, millions of patients, and vendor relationships hang in the balance when judges evaluate reorganization plans.

Guest Analysis: Judge Kaplan explains his philosophy on giving debtors “the benefit of the doubt” when extensive pre-filing work and expert testimony support reorganization efforts, comparing Chapter 11 confirmation standards to the more forgiving approach used in consumer Chapter 13 cases.

Vegas Tourism Under Structural Pressure

The discussion shifts to Las Vegas tourism data revealing continued market strain. Cover:

Economic backdrop: October visitor volume dropped 4.4% year-over-year to 3.41 million, with year-to-date numbers down 7.6% from 2024.

Trends and market shifts: Hotel occupancy fell to 87.7% while Strip average daily rates declined 6% to $203 per night, indicating pricing pressure despite the city’s premium positioning.

Winners vs. losers analysis: High-end experiences maintain demand during special events like F1, while middle-market and budget travelers increasingly stay home, creating a hollowed-out customer base.

Key tensions: The city’s shift toward luxury tourism conflicts with its traditional volume-based business model, leading to job cuts (4,300 lost from July to August) and service reductions at major properties.

First Brands DIP Mystery and Landman’s Bankruptcy Plot

The episode closes with financial market puzzles and cultural commentary:

DIP financing anomaly: First Brands’ structurally senior DIP financing trades in the 30s despite traditional bankruptcy protections, sparking theories about strategic behavior, funding constraints, and market manipulation.

Pop culture analysis: The hosts dissect a bankruptcy subplot in Paramount+’s “Landman,” where fictional oil company Emtex considers Chapter 11 to access $400 million trapped in a captive insurance company, examining the plan’s legal feasibility and dramatic purpose.

Cultural significance: The show’s sophisticated treatment of captive insurance, fraudulent transfers, and corporate structure demonstrates how bankruptcy serves as both practical tool and dramatic device in storytelling about financial pressure.

Listen & Subscribe

Listen now on Apple Podcasts, Spotify, Amazon Music, or wherever you get your podcasts.

Produced and edited by two-time Emmy Award-winning producer Tanya Hubbard.