Bankruptcy Law Community News Headlines

Primcogent Files Ch. 11 In Feud With Fat-Zapping Laser Maker

anonymous@localhost.com (Liz Barrett) — Fri, 24 May 2013 16:58:00 -0400

Primcogent Solutions LLC, former distributor of the Zerona cosmetic surgery laser, filed for bankruptcy in Texas this week and sued the laser’s manufacturer in an effort to revive a recently terminated licensing agreement at the center of its business. Read More...

US Trustee Can't Stall His Removal Over Improper Billing

anonymous@localhost.com (Liz Barrett) — Fri, 24 May 2013 15:32:00 -0400

A Texas federal judge on Wednesday denied a request by a McFall Breitbeil & Smith PC attorney to delay his removal as a U.S. trustee while he appeals his disqualification for allegedly attempting to bill personal vacation expenses to a bankruptcy estate. Read More...

Bankrupt Lender, Developers Settle $36M Loan Fight

anonymous@localhost.com (Liz Barrett) — Fri, 24 May 2013 15:18:00 -0400

The loan manager of bankrupt Mortgages Ltd. reached a $43 million settlement with shopping mall developer PDG Los Arcos LLC and others on Thursday, resolving its claims that the developers defaulted on $36 million in construction loans. Read More...

US Trustee, Banks Slam AMR Bankruptcy Exit Plan

anonymous@localhost.com (Liz Barrett) — Fri, 24 May 2013 14:28:00 -0400

The U.S. trustee in AMR Corp.’s bankruptcy Friday objected to the airliner’s disclosure statement and proposed reorganization plan, claiming the plan contained an improper $20 million severance payment to outgoing CEO Tom Horton and impermissibly covered certain creditors’ legal fees. Read More...

KidsPeace Gets OK To Continue Operations In Ch. 11

anonymous@localhost.com (Liz Barrett) — Fri, 24 May 2013 14:24:00 -0400

A Pennsylvania bankruptcy judge on Thursday allowed bankrupt nonprofit KidsPeace Corp. to continue operating its psychiatric facility for children, approving its use of up to $15 million in financing as it wrangles with more than $100 million in pension plan obligations and rollbacks to Medicaid. Read More...

Allied Seeks Permission For Asset Auction, New DIP Loan

anonymous@localhost.com (Liz Barrett) — Fri, 24 May 2013 14:09:00 -0400

Bankrupt Allied Systems Holdings Inc. has asked a Delaware bankruptcy judge to approve an auction of its assets, including a stalking horse bid and a $33.5 million replacement debtor-in-possession loan from its lenders Black Diamond Capital Management LLC and Spectrum Investment Partners LP. Read More...

US Calls On High Court To Snub Pfizer Asbestos Case

anonymous@localhost.com (Liz Barrett) — Fri, 24 May 2013 13:58:00 -0400

The U.S. solicitor general told the Supreme Court on Thursday that it should refuse to review the Second Circuit's ruling that a ban on asbestos claims during bankruptcy proceedings does not apply to allegations brought by Baltimore Orioles owner Peter Angelos' law firm against Pfizer Inc. Read More...

Tribune Co. Objects To Late Rep.'s $20M Ch. 11 Claim

anonymous@localhost.com (Liz Barrett) — Fri, 24 May 2013 13:09:00 -0400

Reorganized media conglomerate Tribune Co. objected Thursday to a $20 million claim in its bankruptcy case made by the estate of the late former U.S. Rep. Parren Mitchell over a dismissed 2002 invasion of privacy lawsuit against the Baltimore Sun and two reporters, saying the claim has no merit. Read More...

PBGC Wants Firm Stake In Revstone Aluminum Unit Sale

anonymous@localhost.com (Liz Barrett) — Fri, 24 May 2013 12:59:00 -0400

The Pension Benefit Guaranty Corp. asked a Delaware bankruptcy court to secure its stake in Revstone Industry LLC’s proposed sale of an aluminum forging affiliate’s assets Thursday, saying the sale plan fails to consider the interest of two pension plan creditors. Read More...

White & Case Can’t Rep Coda In Ch. 11, US Trustee Says

anonymous@localhost.com (Liz Barrett) — Fri, 24 May 2013 12:48:00 -0400

The U.S. Trustee on Friday asked a Delaware bankruptcy judge to bar White & Case LLP from representing Coda Holdings Inc. in its Chapter 11 case because one of the firm's partners recently held an executive position at the troubled electric car company. Read More...

AIG's National Union Dodges Some Empire Land Defense Costs

anonymous@localhost.com (Liz Barrett) — Fri, 24 May 2013 12:09:00 -0400

An American International Group Inc. affiliate doesn't have to pay $20 million more in defense costs to bankrupt land developer Empire Land LLC principals because of policy exclusions for related wrongful acts, a California federal judge ruled Thursday. Read More...

The Importance Of Morning Mist

anonymous@localhost.com (Liz Barrett) — Fri, 24 May 2013 12:06:00 -0400

Morning Mist Holdings Ltd. v. Krys provides guidance to courts that need to determine the location of a foreign debtor’s “center of main interests.” While not outcome-determinative in this case, in other cases, the Second Circuit’s decision may ultimately affect the scope of relief available under the Bankruptcy Code to a foreign debtor, says Alexander Woolverton of Weil Gotshal & Manges LLP. Read More...

Patriot Coal Can Subpoena Docs For Peabody Spinoff Probe

anonymous@localhost.com (Liz Barrett) — Fri, 24 May 2013 10:48:00 -0400

A Missouri bankruptcy judge on Wednesday gave Patriot Coal Corp. the green light to subpoena documents from Morgan Stanley and Duff & Phelps Corp. to further its investigation into Peabody Energy Corp.'s allegedly unfair spinoff of Patriot Coal in 2007. Read More...

Q&A With Polsinelli's Christopher Ward

anonymous@localhost.com (Liz Barrett) — Fri, 24 May 2013 10:21:00 -0400

There has been growing concern that state of incorporation should be removed from the venue statute. I do not think this is appropriate, says Christopher Ward, vice-chairman of bankruptcy and financial restructuring at Polsinelli PC. Read More...

Highway Tech Looks To Unload Equipment Quickly In Ch. 11

anonymous@localhost.com (Liz Barrett) — Thu, 23 May 2013 17:36:00 -0400

A Delaware bankruptcy judge gave the nod Thursday for many of Highway Technologies Inc.'s first-day requests, including up to $3 million in bankruptcy financing and permission to immediately sell signs and other equipment the company had left out on active roadway projects. Read More...

School Specialty Gets Ch. 11 Plan Confirmed

anonymous@localhost.com (Liz Barrett) — Thu, 23 May 2013 17:35:00 -0400

School Specialty Inc. won confirmation of its Chapter 11 plan Thursday, with a Delaware bankruptcy judge giving the green light to a reorganization that will see the educational supply company emerge from court protection owned by its noteholders. Read More...

Full Speed Ahead For Bankrupt PE-Owned Ohio Printers

anonymous@localhost.com (Liz Barrett) — Thu, 23 May 2013 17:14:00 -0400

A bankruptcy judge in Delaware on Thursday approved the first-day requests of Ohio-based sister commercial printing companies D.B. Hess and The Press of Ohio, both owned by private equity firm Wellspring Capital Management LLC, including up to $20 million in financing to help the firms sell off their assets. Read More...

9th Circ. Relieves Broke Law School Grad Of Student Debt

anonymous@localhost.com (Liz Barrett) — Thu, 23 May 2013 16:19:00 -0400

The Ninth Circuit ruled Thursday that a broke law school graduate who amassed $85,000 in student debt wasn't obligated to repay the loans because he couldn't find a job that would pay him enough to satisfy loan payments exceeding $800 per month. Read More...

Trustee Says 'Girls Gone Wild' Founder Can't Stop Ch. 11

anonymous@localhost.com (Liz Barrett) — Thu, 23 May 2013 15:10:00 -0400

The trustee overseeing the California "Girls Gone Wild" bankruptcy derided efforts by founder Joe Francis to halt the bankruptcy of a subsidiary involved in the purportedly fraudulent overseas transfer of company trademarks on Thursday, saying his emergency motion was filed an hour and a half too late. Read More...

FDIC Wins Malpractice Suit Against Law Firm Over $5M Loan

anonymous@localhost.com (Liz Barrett) — Thu, 23 May 2013 15:03:00 -0400

A Florida federal jury Wednesday sided with the Federal Deposit Insurance Corp. in its malpractice suit against Icard Merrill Cullis Timm Furen & Ginsburg over the firm's representation of a developer in a $5.3 million real estate loan. Read More...

China Natural Gas Demands Toss Of Involuntary Ch. 11

anonymous@localhost.com (Liz Barrett) — Thu, 23 May 2013 14:49:00 -0400

China Natural Gas Inc. on Wednesday urged a New York bankruptcy judge to throw out the involuntary Chapter 11 proceedings commenced by a hedge fund owned by one of its directors, saying the filing was part of the directors' effort to gain control of the company. Read More...

$22M Sale Of Bankrupt Big M's Assets Gets Judge's OK

anonymous@localhost.com (Liz Barrett) — Thu, 23 May 2013 14:07:00 -0400

A New Jersey bankruptcy judge on Thursday signed off on Canadian clothing retailer YM Inc.'s $22 million purchase of the assets of rival Big M Inc., the bankrupt owner of the clothing stores Mandee, Annie Sez and Afaze. Read More...

LeClairRyan Adds Litchfield Cavo Finance, Bankruptcy Atty

anonymous@localhost.com (Liz Barrett) — Thu, 23 May 2013 14:06:00 -0400

LeClairRyan said Monday it has landed for its Boston office a Litchfield Cavo LLP commercial litigator who specializes in lender liability and insurance defense as well as bankruptcy matters. Read More...

Grant Thornton Settles With Allianz In $1B Winstar Fraud Row

anonymous@localhost.com (Liz Barrett) — Thu, 23 May 2013 12:56:00 -0400

Affiliates of German insurer and financial services giant Allianz SE on Thursday settled their claims accusing accounting firm Grant Thornton LLP of helping to conceal a $1 billion revenue hole at now-bankrupt Internet company Winstar Communications Inc. Read More...

Atty Says Dewey Claims Hearing Delay Would Be Abusive

anonymous@localhost.com (Liz Barrett) — Thu, 23 May 2013 12:21:00 -0400

A former partner of Dewey Ballantine LLP — the predecessor of bankrupt Dewey & LeBoeuf LLP — with a pending claim against the firm for outstanding debt has called a proposed hearing delay abusive and unnecessary. Read More...