Mealey's Bankruptcy - Michigan Legislature Passes, 'With Immediate Effect,' Law Giving Detroit $194.8M

LANSING, Mich. - The Michigan Senate on June 3 passed without amendment, and with "immediate effect," the Michigan Financial Review Commission Act (MFRCA), which will allocate $194.8 million in funds to the bankrupt City of Detroit to deal with its current debt, and would create the Financial...

Mealey's Bankruptcy - 'Girls Gone Wild' Trustee: Founder, Affiliate Should Be Held In Contempt

LOS ANGELES - The trustee in the Chapter 11 bankruptcy of GGW Brands LLC, which makes adult entertainment videos carrying the name "Girls Gone Wild," on June 2 filed a brief in the U.S. Bankruptcy Court for the Central District of California contending that the Bankruptcy Court should hold...

Mealey's Bankruptcy - 5th Circuit: Debtor's Motion To Withdraw Plea In Fraud Case Denied Properly

NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on June 3 ruled that a lower court properly refused to grant a debtor's motion to withdraw a guilty plea concerning bankruptcy fraud because although his court-appointed counsel was "deficient," there was no evidence that...

Mealey's Bankruptcy - Bank Of America: High Court Must Hear Case Of Chapter 7 Bankruptcy Lien Issue

WASHINGTON, D.C. - Bank of America NA filed a petition for writ of certiorari with the U.S. Supreme Court that was made available on the docket June 5, in which it seeks high court review regarding whether the Bankruptcy Code permits a Chapter 7 debtor to "strip off" a junior mortgage lien...

Mealey's Bankruptcy - U.S. High Court Says District Court 'Cured' Bankruptcy Dispute With De Novo Review

WASHINGTON, D.C. - The U.S. Supreme Court on June 9 unanimously ruled that any potential error made by a bankruptcy court regarding its own judgment in a "core" proceeding under 28 U.S. Code Section 157(b) was "cured" by a district court's de novo review of the matter because...

Mealey's Bankruptcy - Creditor In Bitcoin Bankruptcy Agrees Not To Object To Venue, Chapter 15 Status

DALLAS - The foreign representative of bankrupt bitcoin exchange operator MtGox Co. Ltd. and creditor CoinLab Inc. on June 9 reached a stipulated agreement under which CoinLab agrees that it will not object to MtGox's Chapter 15 bankruptcy status or its choice of venue (In Re: MtGox Co. Ltd., No...

Mealey's Bankruptcy - U.S. High Court: Inherited IRAs Not 'Retirement Funds,' Not Exempt In Bankruptcy

WASHINGTON, D.C. - The U.S. Supreme Court on June 12 ruled that funds held in inherited individual retirement accounts (IRAs) are not "retirement funds" within the meaning of the Bankruptcy Code because they represent an opportunity to use money immediately as opposed to a fund of retirement...

Mealey's Bankruptcy - ResCap Trust: $32.85M Claim Filed In 'Bad Faith' And Should Be Disallowed

NEW YORK - The Residential Capital Borrower Claims Trust on June 16 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, contending that a couple's $32.85 million claim against the bankruptcy estate should be disallowed because it was not timely filed and it demonstrates...

Mealey's Bankruptcy - MF Global Trustee: $25M In WARN Act Claims Should Be Disallowed, Expunged

NEW YORK - The trustee in the Chapter 11 bankruptcy of MF Global Inc. (MFGI), the customer investment affiliate of MF Global Holdings Inc. (MFGH), on June 16 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, arguing that $25 million in claims filed by former employees...

Mealey's Bankruptcy - 12 Foundations: Syncora's Subpoenas Regarding Detroit Debt Plan Should Be Quashed

DETROIT - A group of foundations involved in community philanthropy for the bankrupt City of Detroit on June 13 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan supporting their motion to quash subpoenas filed by creditors Syncora Capital Assurance Inc. and Syncora Guarantee...

Mealey's Bankruptcy - Insurers Continue Pursuit To Audit THAN Trust For Evidence Of Fraud

WILMINGTON, Del. - Six insurance companies, having lost their recent bid to reopen the Chapter 11 case of T H Agriculture & Nutrition LLC (THAN) so they could audit the THAN asbestos trust for evidence of fraud, filed a complaint on July 2 in Delaware state court, alleging that THAN has breached...

Mealey's Bankruptcy - OSG's Plan Confirmed; Allowed Asbestos Injury Claims To Be Reinstated

WILMINGTON, Del. - A Delaware federal bankruptcy judge on July 18 confirmed a Chapter 11 plan of reorganization for Overseas Shipholding Group Inc. (OSG) under which personal injury claims, including asbestos claims, will be unimpaired and remain assertable against the reorganized company (In Re: Overseas...

Mealey's Bankruptcy - 2nd Circuit: Bankruptcy Court Order Final; Insurers' Deals With Claimants Valid

NEW YORK - The Second Circuit U.S. Court of Appeals on July 22 reinstated a federal bankruptcy court ruling requiring two insurance companies to pay $510 million to asbestos personal injury plaintiffs under decades-old settlements, finding that conditions precedent to payment under the settlement agreements...

Mealey's Bankruptcy - Federal Judge Reverses Confidentiality Rulings In Garlock's Bankruptcy Case

CHARLOTTE, N.C. - A North Carolina federal judge on July 23 reversed rulings by the bankruptcy judge in the Chapter 11 case of Garlock Sealing Technologies LLC sealing evidence and filings and excluding the news media from the hearing to estimate Garlock's liability for asbestos personal injury claims...

Mealey's Bankruptcy - RPM Announces $797 Million Deal For Reorganization Of Specialty Products, Bondex

MEDINA, Ohio - The corporate parent of Chapter 11 debtors Specialty Products Holding Corp. and Bondex International Inc. announced July 28 that it has reached an agreement with asbestos personal injury claimants under which the parents will pay $797.5 million to fund a trust to resolve current and future...

Mealey's Bankruptcy - Garlock Bankruptcy Judge Sets Protocol For Release Of Confidentiality Information

CHARLOTTE, N.C. - At the direction of a federal judge, the North Carolina federal bankruptcy judge overseeing the Chapter 11 case of Garlock Sealing Technologies LLC on Aug. 1 established a protocol for allowing public access to sealed documents and testimony from Garlock's asbestos liability hearing...

Mealey's Bankruptcy - Aetna Granted Access To Asbestos Claimant Information In Specialty Products Case

WILMINGTON, Del. - A Delaware federal bankruptcy judge on Aug. 12 granted a request by health insurer Aetna Inc. to access statements and exhibits filed in the Specialty Products Holding Corp. bankruptcy case to pursue subrogation claims against the debtor for payments made to asbestos personal injury...

Mealey's Bankruptcy - United Gilsonite Proposes Consensual Plan To Reorganize, Pay Asbestos Claims

WILKES-BARRE, Pa. - United Gilsonite Laboratories (UGL) on Aug. 14 filed a Chapter 11 plan of reorganization in federal bankruptcy court that includes establishment of a trust to benefit asbestos personal injury claimants that will be funded in part by $19 million in cash from the debtor and its shareholders...

Mealey's Bankruptcy - Judge Rejects Insurers' Challenge To Approval Of Plant's Revised Plan

SAN FRANCISCO - A bankruptcy court correctly held that changes made by Plant Insulation Co. to its Chapter 11 plan of reorganization on remand from the Ninth Circuit U.S. Court of Appeals are sufficient to satisfy a U.S. Bankruptcy Code requirement that the asbestos trust established by the plan has...

Mealey's Bankruptcy - Republic Powdered Metals Joins Affiliate Specialty Products In Bankruptcy

WILMINGTON, Del. - Roof coatings and restoration company Republic Powdered Metals Inc., an affiliate of Chapter 11 debtor Specialty Products Holding Corp., on Aug. 31 filed its own voluntary Chapter 11 petition in Delaware federal bankruptcy court, seeking to reorganize and resolve asbestos personal...

Mealey's Bankruptcy - Attorney Loses Bid To Force Asbestos Trusts To Process His Claims

WILMINGTON, Del. - A California attorney facing allegations that he filed fraudulent claims against asbestos personal injury trusts cannot pursue a lawsuit seeking to force six trusts that stopped offering settlements to his claimants to resume processing his claims, a Delaware federal judge ruled Sept...

Mealey's Bankruptcy - 3rd Circuit: Insurer Not Compelled To Arbitrate Based On Equitable Estoppel

PHILADELPHIA - An insurer is not equitably bound under Delaware law to arbitrate a coverage dispute with Chapter 11 debtor The Flintkote Co. because there is no evidence that the insurer "embraced" an arbitration agreement that it was not a signatory to and because the theory of detrimental...

Mealey's Bankruptcy - Bankruptcy Judge Unseals Record In Garlock's Estimation Proceeding

CHARLOTTE, N.C. - The North Carolina federal bankruptcy judge overseeing Garlock Sealing Technologies LLC's Chapter 11 case on Oct. 16 unsealed the entire record of last year's hearing to estimate Garlock's asbestos liability, saying he should have kept the proceeding open to the public in...

Mealey's Bankruptcy - Specialty Products' Disclosure Statement OK'd; Plan Calls For 2 Asbestos Accounts

WILMINGTON, Del. - U.S. Bankruptcy Judge Peter J. Walsh of the District of Delaware on Oct. 21 approved the disclosure statement for Chapter 11 debtor Specialty Products Holding Corp.'s plan of reorganization, which includes establishment of two asbestos personal injury trust accounts totaling nearly...

Mealey's Bankruptcy - Former Mineworkers Look To Sue W.R. Grace Insurer For Negligence, Bad Faith

WILMINGTON, Del. - Two men suffering from asbestos disease who worked at W.R. Grace & Co.'s mine and mill in Libby, Mont., sought authorization Oct. 21 in Delaware federal bankruptcy court to file a negligence and bad faith suit in state court against one of W.R. Grace's insurers, even though...