Mealey's Bankruptcy - Residential Capital Affiliate: $500M Case Against UBS Should Not Be Remanded

    NEW YORK - Residential Funding Co. LLC (RFC), an affiliate of bankrupt Residential Capital LLC (ResCap), on May 28 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York opposing a motion by UBS Real Estate Securities Inc. (UBS) that seeks to remand RFC's adversary action related to loans valued in excess of $500 million that UBS sold to RFC prior to bankruptcy (Residential Funding Company LLC v. UBS Real Estate Securities Inc. [In Re: Residential Capital LLC], No. 12-12020, Adv. No. 14-01926, Chapter 11, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Company Seeks $50M In Damages For 'Wrongful' Involuntary Bankruptcy Petition

    PHILADELPHIA - National Medical Imaging LLC (NMI) on May 27 filed a lawsuit in the U.S. District Court for the Eastern District of Pennsylvania seeking $50 million in damages against U.S. Bank NA, contending that the bank wrongfully filed an involuntary bankruptcy petition against NMI and its affiliate (National Medical Imaging LLC v. US Bank NA, et al., No. 14-02974, Chapter 11, E.D. Pa.).

    Mealey's Bankruptcy - Bankruptcy Judge: Most Retiree Benefits Vested For American Airlines Employees

    NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of AMR Corp. in the U.S. Bankruptcy Court for the Southern District of New York on May 28 partially denied and partially granted a motion filed by AMR seeking a ruling that certain retiree benefits were not vested (AMR Corporation v. Committee of Retired Employees [In Re: AMR Corporation], No. 12-01744, Chapter 11, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - 2nd Circuit: Order Denying Withdrawal Of Fraudulent Conveyance Action Not Final

    NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on May 27 dismissed the appeals of a creditor and his attorney who sought to have the trustee's fraudulent conveyance action withdrawn to the U.S. Bankruptcy Court for the Eastern District of New York, ruling that a district court's order that initially dismissed the case was not a final judgment (Debra Kramer v. Tozammel H. Mahia [In Re: Shahara Kahn], No. 13-1930, Chapter 11, 2nd Cir.; 2014 U.S. App. LEXIS 9686).

    Mealey's Bankruptcy - Residential Capital Trust: Creditor's $29.84M Claim Should Not Be Reconsidered

    NEW YORK - The ResCap Borrower Claims Trust, as successor in interest to bankrupt Residential Capital LLC (ResCap), on May 23 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to the motion of a creditor who seeks reconsideration of her claim that she is entitled to $29,841,120.01 from ResCap's bankruptcy estate (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Creditor Appeals Sale Of $149M In Loan Assets Of Irish Bank Resolution Corporation

    WILMINGTON, Del. - A creditor in the Chapter 15 bankruptcy of Irish Bank Resolution Corp. (IBRC) on May 27 filed a notice of appeal concerning a decision by a federal bankruptcy judge to grant an order permitting the sale of $149 million in assets related to loans that the bank held before filing for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware (In Re: Irish Bank Resolution Corporation Ltd., No. 13-12159, Chapter 15, D. Del. Bkcy.).

    Mealey's Bankruptcy - GM Ignition Switch Plaintiffs Say Stay Should Not Apply To Their Claims

    NEW YORK - A group of plaintiffs that has a lawsuit pending against bankrupt General Motors LLC related to that company's defective ignition switches on May 27 moved in the U.S. Bankruptcy Court for the Southern District of New York for an order declaring that their lawsuit is not stayed in connection to a Bankruptcy Court injunction or a sale related to GM's Chapter 11 bankruptcy (In Re: Motors Liquidation Company, No. 09-50026, Chapter 11, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Bitcoin Investors: CoinLab's Objection To Sunlot Proposal 'Seriously Misplaced'

    DALLAS - Representatives of the class of investors suing bankrupt bitcoin exchange operator MtGox Inc. on May 24 filed a brief in the U.S. Bankruptcy Court for the Northern District of Texas contending that objections filed by creditor CoinLab Inc. in opposition to a portion of the company's proposed reorganization plan "are seriously misplaced" (In Re: MtGox Co. Ltd., No. 14-31229, Chapter 15, N.D. Texas Bkcy.).

    Mealey's Bankruptcy - Detroit: 'Grounds' Exist To Treat Pensioners Differently From Other Creditors

    DETROIT - The bankrupt City of Detroit on May 26 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan contending that its plan of adjustment is "fair and equitable" and that it has "reasonable grounds" to treat its pensioners differently from other unsecured creditors (In Re: City of Detroit, No, 13-53836, Chapter 9, E.D. Mich. Bkcy.).

    Mealey's Bankruptcy - U.S. Supreme Court Denies Hearing On Tax Duty Of Bankrupt Airline Executive

    WASHINGTON, D.C. - The U.S. Supreme Court on May 27 declined to hear a case in which the former chief financial officer of a bankrupt airline contended that he should not be personally liable for $8.5 million in federal excise taxes that were due when his company filed for bankruptcy (Raymond T. Nakano v. United States of America, No. 13-1278, Chapter 7, U.S. Sup.).

    Mealey's Bankruptcy - Bankruptcy Judge Approves $2.2M Settlement For Cost Of Environmental Cleanup

    WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 7 bankruptcy of alternative energy company Abound Solar Manufacturing LLC in the U.S. Bankruptcy Court for the District of Delaware on May 22 approved a settlement with Abound's insurer for $2.2 million to resolve the costs of environmental remediation (In Re: Abound Solar Manufacturing LLC, No. 12-11974, Chapter 7, D. Del. Bkcy.).

    Mealey's Bankruptcy - 4th Circuit: Subcontractors Have Interest In Debtor Contractor's Property

    RICHMOND, Va. - A panel of the Fourth Circuit U.S. Court of Appeals on May 22 affirmed a bankruptcy court ruling that held that subcontractors had a perfected interest in property belonging to a debtor construction company that acted as a general contractor (Branch Banking & Trust Company v. Construction Supervision Services Inc. $(In Re: Construction Supervision Services Inc.$), No. 13-1560, Chapter 11, 4th Cir.; 2014 U.S. App. LEXIS 9532).

    Mealey's Bankruptcy - Michigan House Passes Bill Creating Commission For Cities In Financial Crisis

    LANSING, Mich. - The Michigan House of Representatives on May 22 passed the Michigan Financial Review Commission Act (MFRCA) by a vote of 103-7, establishing a commission within the Michigan Department of Treasury to assist cities facing financial emergencies. The measure awaits action in the Michigan Senate.

    Mealey's Bankruptcy - MF Global SIPA Trustee: More Than $1.99M In Claims Should Be Disallowed

    NEW YORK - The trustee in the Securities Investor Protection Act (SIPA) litigation related to the Chapter 11 bankruptcy of MF Global Inc. (MFGI), the customer investing affiliate of bankrupt MF Global Holdings Ltd. (MFGH), on May 21 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to $1,990,768.53 in claims against the bankruptcy estate, arguing that they should be disallowed (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Debtor's Vehicles Not Marital Property, 3rd Circuit Says; Exemption Not Applicable

    PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on May 22 affirmed a bankruptcy court's decision that a debtor could not list three vehicles as exempt from his bankruptcy estate because they were not marital property as the debtor had claimed (In Re: Don Scioli, No. 13-2762, Chapter 7, 3rd Cir.; 2014 U.S. App. LEXIS 9525).

    Mealey's Bankruptcy - Bill Would Give $194.8M To Detroit To Aid Recovery From Chapter 9 Bankruptcy

    LANSING, Mich. - The Michigan House Committee on Detroit's Recovery and Michigan's Future on May 21 issued a report recommending for a second reading a group of bills that would authorize the distribution of $194.8 million from the state's budget stabilization fund (BSF) to the retirement systems for employees of the bankrupt City of Detroit.

    Mealey's Bankruptcy - Bankrupt Detroit Contests $26M Claim Filed By County Public Works Commissioner

    DETROIT - The bankrupt City of Detroit on May 20 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan objecting to a $26 million claim against it filed by the Macomb County public works commissioner related to a claim from an underlying lawsuit in which the commissioner contends that the city breached its contract with the public works department (In Re: City of Detroit, No. 13-53046, Chapter 9, E.D. Mich. Bkcy.).

    Mealey's Bankruptcy - Bankruptcy Judge Denies $10M Claim Against Arcapita Bank

    NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of Arcapita Bank BSC in the U.S. Bankruptcy Court for the Southern District of New York on May 20 denied a $10 million claim against the bank on grounds that the creditor was not entitled to a setoff pursuant to a stock purchase agreement between the parties (In Re: Arcapita Bank BSC, No. 12-11076, Chapter 11, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Chapter 13 Debtor Seeks High Court Ruling That She Has Right To Dismiss Bankruptcy

    WASHINGTON, D.C. - A Chapter 13 debtor who contends that she should be permitted to voluntarily dismiss her bankruptcy petition filed a petition for rehearing regarding a writ of mandamus that the U.S. Supreme Court previously denied. In the petition for rehearing, posted to the docket May 20, the debtor argues that Chapter 13 bankruptcy is, by its nature, voluntary (Carole L. Taylor v. Judith K. Fitzgerald, No. 13-960, Chapter 13, U.S. Sup.).

    Mealey's Bankruptcy - Wells Fargo: Financing In Coldwater Creek Case Is 'Fair, Reasonable, Customary'

    WILMINGTON, Del. - Wells Fargo Bank NA on May 19 filed a brief in the U.S. Bankruptcy Court for the District of Delaware, arguing that the Bankruptcy Court should deny a motion filed by the Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy of Coldwater Creek Inc. (CCI), which seeks reconsideration of the order that approved post-petition financing for the debtor on grounds that the committee asserted "unsubstantiated and baseless allegations" in its motion (In Re: Coldwater Creek Inc., No. 14-10867, Chapter 11, D. Del. Bkcy.).

    Mealey's Bankruptcy - 2nd Circuit: Sapere's Appeal In MF Global Proceeding Is 'Moot'; Payments Received

    NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on May 19 denied as moot an appeal by entities associated with Sapere Wealth Management LLC in the Chapter 11 bankruptcy of MF Global Holdings Ltd. (MFGH) on grounds that it was moot because the plaintiffs had received compensation for their vested rights that they said initially had been denied (Sapere Wealth Management LLC, et al. v. MF Global Holdings Ltd., No. 1204732, Chapter 11, 2nd Cir.; 2014 U.S. App. LEXIS 9188).

    Mealey's Bankruptcy - Tuscany International: Plan Modification 'Feasible'; Creditors Get 'Fair' Recovery

    WILMINGTON, Del. - Bankrupt Tuscany International Holdings Ltd. (TIH) on May 19 filed a brief in the U.S. Bankruptcy Court for the District of Delaware arguing that the Bankruptcy Court should permit it to modify its plan of reorganization because it is "feasible" under the Bankruptcy Code and provides recoveries similar to what creditors would receive if the company were liquidated (In Re: Tuscany International Holdings $(USA$) Ltd., No. 14-10193, Chapter 11, D. Del. Bkcy.).

    Mealey's Bankruptcy - U.S. High Court Denies Hearing On Liquidation Of Assets Belonging To Bankrupt Farm

    WASHINGTON, D.C. - The U.S. Supreme Court on May 19 refused to hear a case in which a Chapter 11 debtor, which was also a farm, argued that the Chapter 11 trustee wrongly liquidated its assets in violation of the Bankruptcy Code (Robert A. Sears, et al. v. Joseph H. Badami, No. 13-1229, Chapter 11, U.S. Sup.).

    Mealey's Bankruptcy - U.S. Supreme Court Refuses To Hear Creditor's Case Alleging Sale Violated Rights

    WASHINGTON, D.C. - The U.S. Supreme Court on May 19 denied certiorari in a bankruptcy case in which a creditor alleged that actual fraudulent conveyance of a debtor's assets was committed during the bankruptcy sale because his claim against the bankruptcy estate was not preserved (Robert White v. Kubotek Corporation, No. 13-1215, Chapter 7, U.S. Sup.).

    Mealey's Bankruptcy - Judge Approves Amended Deal Settling Filene's Property Dispute For $1.25M

    WILMINGTON, Del. - The federal bankruptcy judge in the U.S. Bankruptcy Court for the District of Delaware presiding over the Chapter 11 proceeding of Filene's Basement LLC on May 16 issued an order approving an amended deal in which a third party has agreed to pay the purchaser of a lease interest in property of Filene's affiliate Syms Corp. $1.25 million to settle claims pertaining to a dispute regarding the sale based on a competing price offer (In Re: Filene's Basement LLC, No. 11-13511, Chapter 11, D. Del. Bkcy.).