BOSTON - More than 3,600 individuals and entities have filed proofs of claim against the bankrupt compounding pharmacy at the center of a deadly fungal meningitis outbreak, according to a March 5 report by a bankruptcy trustee and a committee of injured plaintiffs (In Re: New England Compounding Pharmacy, Inc. Products Liability Litigation, MDL Docket No. 1:13-md-2419, D. Mass.).
WAUKESHA, Wis. - A Wisconsin appeals panel on March 5 found that an insured's bankruptcy does not relieve a commercial general liability insurer of its obligation under a directors and officers (D&O) endorsement to the policy, reversing and remanding a lower court's ruling in favor the insurer (Guy Hollingsworth, et al. v. Landing Condominiums of Waukesha Association Inc., et al., Nos. 2013AP888, 2013AP1538, Wis. App., Dist. 2; 2014 Wisc. App. LEXIS 178.)
LOS ANGELES - The Chapter 11 trustee in the bankruptcy proceeding of GGW Brands LLC, the parent company for the producer of adult entertainment company that produces videos carrying the name "Girls Gone Wild," on March 6 filed a brief in the U.S. Bankruptcy Court for the Central District of California opposing a motion to compel GGW to surrender commercial property that operates as the company's office (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).
NEW YORK - Bankrupt MF Global Holdings Ltd. (MFGH) on March 6 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York seeking to subordinate and reclassify claims filed by a former employee based on money he says he is owed from the MFGH employee stock program (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).
WILMINGTON, Del. - Bankrupt Green Field Energy Services Inc. (GFES) on March 6 filed a liquidation plan disclosure statement in the U.S. Bankruptcy Court for the District of Delaware that proposes full recovery for most creditors (In Re: Green Field Energy Services Inc., No. 13-12783, Chapter 11, D. Del. Bkcy.).
NEW YORK - The U.S. Securities and Exchange Commission on March 6 filed a lawsuit in the U.S. District Court for the Southern District of New York against five former executives of bankrupt law firm Dewey & LeBoeuf, alleging that they engaged in a fraudulent bond offering to finance the ailing firm in violation of various federal laws governing the issuing of securities (Securities and Exchange Commission v. Steven H. Davis, et al., No. N/A, S.D. N.Y.).
WILMINGTON, Del. - A creditor in the Chapter 11 bankruptcy of Overseas Shipholding Co. (OSG) on March 6 filed a brief in the U.S. Bankruptcy Court for the District of Delaware, arguing that its claim of $2,101,449.45 should be permitted because OSG "cannot overcome the validity of the claim" (In Re: Overseas Shipholding Company, No. 12-20000, Chapter 11, D. Del. Bkcy.).
NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on March 5 affirmed a bankruptcy court ruling that the proceeds a debtor gained from selling his homestead were not exempt from the bankruptcy estate (Mary K. Viegelahn v. Mark Alan Frost $(In The Matter of: Mark Alan Frost$), No. 12-50811, Chapter 13, 5th Cir.; 2014 U.S. App. LEXIS 4158).
NEW YORK - Bankrupt Old HB Inc., formerly known as Hostess Brands Inc., on March 4 moved in the U.S. Bankruptcy Court for the Southern District of New York for an order compelling discovery from a group that acts as a third-party administrator of workers' compensation claims (In Re: Old HB Inc. f/k/a/ Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).
WILMINGTON, Del. - Bankrupt USEC Inc., a global energy company that provides low-enriched uranium (LEU) for commercial nuclear power plants, on March 5 moved in the U.S. Bankruptcy Court for the District of Delaware for approval of its Chapter 11 reorganization plan (In Re: USEC Inc., No. 14-10475, Chapter 11, D. Del. Bkcy.).
ST. LOUIS - A panel of the Eighth Circuit U.S. Court of Appeals on March 5 ruled that a bankruptcy court properly denied the attempt of creditors to collect on certain debts related to loans made to the debtor because they failed to carry their burden of proof to show that the obligations remained after the bankruptcy court had initially discharged the case (Stephen Sherman Wyse v. Chester Wayne King $(In Re: Chester Wayne King$), No. 12-3701, Chapter 7, 8th Cir.; 2024 U.S. App. LEXIS 4090).
WILMINGTON, Del. - A global energy company that provides low-enriched uranium (LEU) for commercial nuclear power plants on March 5 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, citing debts of $1.07 billion and assets of only $70 million (In Re: USEC Inc., No. 14-10475, Chapter 11, D. Del. Bkcy.).
CHICAGO - The investor who filed a putative class action against Mt. Gox Inc., the bankrupt operator of a bitcoin exchange, on March 4 moved in the U.S. District Court for the Northern District of Illinois for a temporary restraining order and a preliminary injunction preventing the company from "dissipating" its assets held in the United States (Gregory Greene v. Mt Gox, et al., No. 14-01437, N.D. Ill.).
WILMINGTON, Del. - Bankrupt oil and gas drilling company Tuscany International Holdings (USA) Ltd. (TIH) on March 3 filed a plan of reorganization in the U.S. Bankruptcy Court for the U.S. Bankruptcy Court for the District of Delaware that proposes full recovery for most of its creditors (In Re: Tuscany International Holdings [USA] Ltd., No. 14-10193, Chapter 11, D. Del. Bkcy.).
SAN FRANCISCO - A California federal bankruptcy judge on Feb. 28 confirmed the modified plan of reorganization of Chapter 11 debtor Plant Insulation Co. on remand from the Ninth Circuit U.S. Court of Appeals, finding that the revised plan now satisfies the requirement of Section 524(g) of the U.S. Bankruptcy Code that the plan's asbestos trust is entitled to own a majority of voting shares in the reorganized debtor (In re Plant Insulation Company, No. 09-31347, N.D. Calif. Bkcy.).
BALTIMORE - A federal judge in Maryland on Feb. 28 allowed breach of fiduciary duty claims to remain in a suit the Chapter 7 trustee for a failed bank's holding company filed against the bank's former directors and officers (Charles R. Goldstein v. David Berman, et al., No. 12-2507, D. Md.; 2014 U.S. Dist. LEXIS 26348).
DETROIT - The bankrupt City of Detroit moved in the U.S. Bankruptcy Court for the Eastern District of Michigan on March 3 for approval of an agreement with lenders UBS AG and Merrill Lynch Capital Services Inc. under which the city would pay an aggregate sum of $85 million in cash to satisfy the lenders' claims related to swap agreements valued at $288 million (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
WASHINGTON, D.C. - In a unanimous decision, the U.S. Supreme Court on March 4 reversed a Ninth Circuit U.S. Court of Appeals ruling and held that a bankruptcy court exceeded the limits of its authority when it ruled that $75,000 that was protected under the homestead exemption in a Chapter 7 bankruptcy should be used to pay the trustee's attorney fees (Stephen Law v. Alfred Siegel, No. 12-5196, Chapter 7, U.S. Sup.).
SACRAMENTO, Calif. - Two investment funds on Feb. 26 filed a brief in the U.S. Bankruptcy Court for the Eastern District of California, objecting to the Chapter 9 debt payment plan filed by the City of Stockton, Calif., on grounds that it is not in the best interests of the creditors and fails to provide the investment funds with "a reasonable recovery" (In Re: City of Stockton, Calif., No. 12-32118, Chapter 9, E.D. Calif. Bkcy.).
NEW YORK - The trustee in the Chapter 11 bankruptcy of Eastman Kodak Co. on Feb. 27 filed an adversary complaint in the U.S. Bankruptcy Court for the Southern District of New York, seeking recovery of $2,502,435.99 in what he contends are fraudulent transfers (The Kodak GUC Trust v. Sykes Enterprises Inc. $(In Re: Eastman Kodak Company$), No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).
WILMINGTON, Del. - Hybrid Tech Holdings LLC, the firm that agreed to provide post-petition financing to bankrupt Fisker Automotive Holdings Inc., on March 2 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to the motion of the Official Committee of Unsecured Creditors (the committee) of Fisker, contending that the committee should be granted expedited consideration for its motion seeking leave and authority to prosecute various causes of action on behalf of Fisker's estate (In Re: Fisker Automotive Holdings Inc., No. 13-13087, Chapter 11, D. Del. Bkcy.).
CHICAGO - A putative class of investors filed a lawsuit against bankrupt Mt. Gox Inc. on Feb. 27 in the U.S. District Court for the Northern District of Illinois, alleging fraud, breach of contract and other causes of action related to the loss of 744,000 bitcoins, a digital currency the investors say is valued at $409.2 million (Gregory Greene v. Mt Gox, et al., No. 14-01437, N.D. Ill.).
WASHINGTON, D.C. - A panel of the District of Columbia Circuit U.S. Court of Appeals on Feb. 28 held that a Bankruptcy Court ruled properly when it concluded that a debtor company lacked standing to challenge a settlement agreement that was part of the proceeding (Hope 7 Monroe Street Limited Partnership v. RIASO LLC [In Re: Hope 7 Monroe Street Limited Partnership], No.12-7054, D.C. Cir; 2014 U.S. App. LEXIS 3809).
WILMINGTON, Del. - The foreign representatives of bankrupt Irish Bank Resolution Trust Corp. Ltd. (IBRC) on Feb. 27 filed a brief in the U.S. Bankruptcy Court for the District of Delaware, arguing that a creditor should not be permitted to file a separate lawsuit in federal court in New York because it constitutes "the same collateral attack" on the bankruptcy proceeding that was earlier filed and ruled upon (Kieran Wallace, et al. v. John Flynn [In Re: Irish Bank Resolution Trust Corporation Ltd.], No. 13-12159, Adv. No. 13-52547, Chapter 15, D. Del. Bkcy.).
RALEIGH, N.C. - Allegations of improper settlement practices raised in the In Re: Garlock Sealing Technologies, LLC, et al. bankruptcy case are irrelevant to summary judgment motions in a civil asbestos action, a North Carolina federal judge held Feb. 21 in nonetheless partially granting the motions (Graham Yates and Becky Yates v. Air & Liquid Systems Corp., et al., No. 12-752, E.D. N.C.).