WASHINGTON, D.C. - A District of Columbia federal judge on Dec. 10 ruled that Bank of America could proceed with a lawsuit against the Federal Deposit Insurance Corp. to collect $1.7 billion related to the Chapter 11 bankruptcy of Taylor Bean Whitaker Mortgage Corp. (TBW) (Bank of America v. Federal Deposit Insurance Corporation, No. 10-1681, D. D.C.).
RIVERSIDE, Calif. - The bond creditors in the Chapter 9 bankruptcy of the City of San Bernardino, Calif., on Dec. 10 filed a brief in the U.S. Bankruptcy Court for the Central District of California arguing that the California Public Employees Retirement System (CalPERS) is not exempt from the automatic stay (In Re: City of San Bernardino, Calif., No. 12-28006, Chapter 9, C.D. Calif. Bkcy.).
ATLANTA - A panel of the 11th Circuit U.S. Court of Appeals on Dec. 11 affirmed a district court's ruling that held that a dismissal order in a bankruptcy proceeding was not final and, therefore, the case was not resolved (Terry L. Steffen v. Douglas N. Menchise [In Re: Terry L. Steffen], No. 11-15757, Chapter 7, 11th Cir.; 2012 U.S. App. LEXIS 25254).
SAN FRANCISCO - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy of Howrey LLP on Dec. 7 moved in the U.S. Bankruptcy Court for the Northern District of California to disqualify its former co-counsel and his firm from bringing a putative class action against 302 of Howrey's partners (In Re: Howrey LLP, No. 11-31376, Chapter 11, N.D. Calif. Bkcy.).
NEW YORK - Bankrupt energy company Dynegy Holdings LLC on Dec. 10 filed a notice that it had received successful bids for the sale of two of its power plants for a combined total of $23 million (In Re: Dynegy Holdings LLC, No. 11-38111, Chapter 11, S.D. N.Y. Bkcy.).
DALLAS - Fastbucks Holding Corp., a provider of payday loans and other forms of "fast cash," on Dec. 10 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Texas, listing debts between $10 million and $50 million (In Re: Fastbucks Holding Corporation, No. 12-37793, Chapter 11, N.D. Texas Bkcy.).
BUTTE, Mont. - A federal bankruptcy judge in Montana on Dec. 5 ruled that the founder of the bankrupt Yellowstone Mountain Club LLC (YMC), Timothy L. Blixseth, had to pay the liquidating trustee more than $40.99 million related to fraudulent conveyances Blixseth made before YMC's bankruptcy filing (Timothy L. Blixseth v. Marc S. Kirschner [Yellowstone Mountain Club LLC], 08-61570-11, Adv. No. 09-00014, Chapter 11, D. Mont. Bkcy.).
WILMINGTON, Del. - The U.S. Department of Energy (DOE) on Dec. 7 moved in the U.S. Bankruptcy Court for the District of Delaware for a protective order against a notice of deposition filed by the Unsecured Creditors Committee in the Chapter 11 bankruptcy of alternative energy company A123 Systems Inc. (In Re: A123 Systems Inc., No. 12-12859, Chapter 11, D. Del. Bkcy.).
NEW YORK - A group of insurance companies on Dec. 7 moved in the U.S. Bankruptcy Court for the Southern District of New York to compel arbitration of a contract dispute related to an insurance agreement involving bankrupt Hostess Brands Inc. (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).
WASHINGTON, D.C. - The U.S. Supreme Court on Dec. 10 declined to hear arguments in a case in which a company that had purchased a debtor's trademarks at an asset sale argued that those trademarks were being infringed upon by a third party that continued selling products under the debtor's name (Sunbeam Products Inc. v. Chicago American Manufacturing LLC, No. 12-431, U.S. Sup.).
WILMINGTON, Del. - Liberty Mutual Insurance Co. filed a brief in the U.S. Bankruptcy Court for the District of Delaware on Dec. 6 objecting to the reorganization plan filed by New Page Corp. on grounds that the plan does not adequately protect its interests (In Re: New Page Corporation, No. 11-12804, Chapter 11, D. Del. Bkcy.).
NEW YORK - Bankrupt pharmaceutical company K-V Discovery Solutions Inc. on Dec. 5 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of a $60 million settlement with Hologic Inc. that would dispose of Hologic's claims, which are valued at $95 million (In Re: K-V Discovery Solutions Inc., No. 12-13346, Chapter 11, S.D. N.Y. Bkcy.).
WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Vertis Holdings Inc. on Dec. 6 issued an order approving the sale of substantially all of the company's assets free and clear of all liens for $258.5 million (In Re: Vertis Holdings Inc., No. 12-12821, Chapter 11, D. Del. Bkcy.).
WILMINGTON, Del. - The U.S. trustee in the Chapter 11 bankruptcy of Overseas Shipholding Group Inc. (OSG) on Dec. 3 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to OSG's request for a waiver of requirements under the Bankruptcy Code governing the deposit and investment of $320 million in estate funds (In Re: Overseas Shipholding Group Inc., No. 12-20000, Chapter 11, D. Del. Bkcy.).
OAKLAND, Calif. - The Federal Trade Commission on Dec. 4 filed a brief in the U.S. Bankruptcy Court for the Northern District of California arguing that the Chapter 11 case of investment scheme operator John N. Beck II should be dismissed or converted because it was filed in bad faith (In Re: John N. Beck II, No. 12-47882, Chapter 11, N.D. Calif. Bkcy.).
DALLAS - A federal bankruptcy judge in Texas on Dec. 4 ruled that 10 affiliates of bankrupt Mexican glassmaker Vitro Asset Corp. could be forced into Chapter 11 bankruptcy involuntarily because all affiliates of the company are jointly and severally liable for the debts created when the parent company defaulted (In Re: Vitro Asset Corp., No. 11-32600, Chapter 11, N.D. Texas Bkcy.).
WILMINGTON, Del. - Walt Disney Studios Motion Picture Production on Dec. 3 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to bankrupt Digital Domain Media Group's (DDMG) motion seeking approval to sell assets and contracts free and clear of all liens, contending that Disney still has patent rights (In Re: DDMG Estate, No. 12-12568, Chapter 11, D. Del. Bkcy.).
CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on Nov. 30 withdrew and vacated its own decision in which it had previously concluded that the liquidation trustee in the Chapter 11 bankruptcy proceeding of an investment management company failed to show that fraud had been committed in connection with a $312 million loan it obtained from the Bank of New York Mellon (In Re: Sentinel Management Group Inc., No. 11-1123, Chapter 11, 7th Cir.).
RICHMOND, Va. - The trustee in the Chapter 11 bankruptcy of Circuit City Stores Inc. on Dec. 3 moved in the U.S. Bankruptcy Court for the Eastern District of Virginia seeking an order under which Toshiba America Information Systems Inc. will make a confidential payment to the Circuit City Liquidating Trust to avoid litigation over disputed claims against the estate (In Re: Circuit City Stores Inc., No. 08-35653, Chapter 11, E.D. Va. Bkcy.).
WASHINGTON, D.C. - The U.S. Supreme Court on Dec. 3 asked the U.S. solicitor general to provide perspective on whether a bankruptcy court has the power to levy a financial charge against a Chapter 7 debtor's residential property, which he has claimed falls under the homestead exemption (Stephen Law v. Alfred Siegel, No. 12-5196, U.S. Sup.).
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WILMINGTON, Del. - The foreign representatives of bankrupt Japanese microchip manufacturer Elpida Memory Inc. on Dec. 3 filed a brief in the U.S. Bankruptcy Court for the District of Delaware arguing that the court should approve its motion to sell certain assets to speed the company's global reorganization process (In Re: Elpida Memory Inc., No. 12-10947, Chapter 15, D. Del. Bkcy.).
LOS ANGELES - The federal judge in California presiding over the bankruptcy fraud proceeding of former Major League Baseball player Lenny Dykstra has sentenced him to 6-1/2 months in federal prison, a source told Mealey Publications Dec. 4. The sentence was handed down Dec. 3 (U.S. v. Lenny Kyle Dykstra, No. 11-00415, Chapter 7, C.D. Calif.).
BALTIMORE - A Maryland federal bankruptcy judge on Nov. 29 lifted the automatic stay in Lloyd E. Mitchell Inc.'s (LEM) Chapter 11 case so a confidential settlement among the debtor, two insurers and a law firm representing 9,000 asbestos personal injury claimants can be implemented, over the objections of attorneys representing thousands of other asbestos claimants (In re: Lloyd E. Mitchell Inc., No. 06-13250, D. Md. Bkcy.; 2012 Bankr. LEXIS 5531).
PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Nov. 29 ruled that a debtor owed taxes to the U.S. government because the statute of limitations had been suspended during the time she filed two bankruptcies (United States of America v. Marion Balice, No. 12-2765, Chapter 13, 3rd. Cir.; 2012 U.S. App. LEXIS 24567).
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of law firm Dewey & LeBoeuf on Nov. 29 gave the Official Committee of Unsecured Creditors authority to prosecute three former partners in connection with the collapse of the firm, which led to its bankruptcy (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the order available within the full article.