LexisNexis® Legal Newsroom
    MF Global Plan Proponents Seek Approval To Proceed With Disclosure, Liquidation

    NEW YORK - The plan proponents in the Chapter 11 proceeding of MF Global Holdings (MFGH) on March 8 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of the disclosure statement, which would allow the plan to proceed (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).

    Investors Say Bankrupt ATP Oil Fraudulently Sold Them $135M In Royalty Rights

    HOUSTON - An investment bank on March 6 filed an adversary complaint against bankrupt ATP Oil & Gas Corp. in the U.S. Bankruptcy Court for the Southern District of Texas, contending that ATP fraudulently sold it $110 million worth of royalty interests prior to filing for bankruptcy (MacQuarie Investments LLC $(In Re: ATP Oil & Gas Corporation$), No. 12-36187, Chapter 11, S.D. Texas Bkcy.).

    Ex-Dewey & LeBoeuf Executives Say Firm Promised Bonuses For Work In 2011

    NEW YORK - Former executives of bankrupt law firm Dewey & LeBoeuf on March 6 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York contending that they are entitled to bonuses they earned in 2011, prior to when the firm filed for Chapter 11 bankruptcy (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

    LodgeNet Chapter 11 Plan Gets OK Based On Exit Financing Greater Than $346.4M

    NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of LodgeNet Interactive Corp. on March 7 approved its reorganization plan that includes exit financing of more than $346.4 million (In Re: LodgeNet Interactive Corporation, No. 13-10238, Chapter 11, S.D. N.Y. Bkcy.).

    Former Tribune Executives: Claims Are Not Property Of Litigation Trustee

    WILMINGTON, Del. - Some former executives of bankrupt Tribune Co. on March 6 filed a brief in the U.S. Bankruptcy Court for the District of Delaware arguing that the litigation trustee should not be substituted as the plaintiff in adversary cases against them because the claims at issue in litigation between the former executives and the Official Committee of Unsecured Credfitors are not property of the litigation trustee (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.).

    Bankruptcy Judge Approves Reorganization Plan For Education Holdings

    WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Education Holdings 1 Inc., formerly known as the Princeton Review, on March 7 issued findings of fact approving Education Holdings' plan of reorganization (In Re: Education Holdings 1 Inc., No. 13-10101, Chapter 11, D. Del. Bkcy.).

    U.S. Trustee In Hostess Case: $8.89M In Fees Sought Are 'Unreasonable'

    NEW YORK - The U.S. trustee in the Chapter 11 bankruptcy of Hostess Brands Inc. on March 6 filed a brief arguing that the attorneys and professionals seeking more than $8.89 million in fees and expenses should receive only a percentage of that money because it is unclear at this stage if there will be enough funds in the bankruptcy estate to pay all the claims (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).

    9th Circuit: Debtor May Claim 'Wildcard Exemption' For Luxury Automobile

    SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on March 5 ruled that a debtor could claim an exemption for her car under both California law and federal bankruptcy law even though it was a luxury automobile (Orange County Credit Union v. Angie M. Garcia $(In Re: Angie M. Garcia$), No. 11-56076, Chapter 7, 9th Cir.).

    U.S. Government Objects To Southern Air Holdings Plan Of Chapter 11 Reorganization

    NEW YORK - The U.S. government on March 6 filed a brief in the U.S. Bankruptcy Court for the District of Delaware contending that the Chapter 11 reorganization plan of bankrupt Southern Air Holdings Inc. should be denied based on its treatment of administrative and subordinated claims against the bankruptcy estate (In Re: Southern Air Holdings Inc., No. 12-12690, Chapter 11, D. Del. Bkcy.).

    Solar Millennium To Cut $212.89M In Claims By Unnamed Amount In Solar Trust Case

    WILMINGTON, Del. - The restructuring officer of bankrupt alternative energy company Solar Trust America AG on March 5 filed a brief supporting the settlement of claims among Solar Trust, the Committee of Unsecured Creditors and Solar Trust's parent Solar Millennium AG (SMAG). Under the settlement, SMAG will reduce its claims against Solar Trust for an undisclosed amount and withdraw its opposition to Solar Trust's plan of reorganization (Official Committee of Unsecured Creditors v. Solar Millennium AG, et al. $(In Re: Solar Millennium AG$) $(In Re: Solar Trust of America LLC$), Adv No. 12-50979, No. 12-11712, No. 12-11136, Chapter 11, D. Del. Bkcy.).

    Pilots: Dispute Interferes With American Airlines Bankruptcy, US Airways Merger

    NEW YORK - A group of pilots for US Airways Group Inc. on March 6 filed an adversary complaint in the Chapter 11 bankruptcy proceeding of AMR Corp., contending that another group of pilots should not be permitted to file a lawsuit in bankruptcy court pertaining to claims that were part of a lawsuit filed prior to the bankruptcy petition because any such lawsuit would interfere with the bankruptcy and the planned merger of American Airlines Inc. and US Airways (US Airline Pilots Association v. Leonidas LLC $(In Re: AMR Corporation$), No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

    3rd Circuit: Creation Of Litigation Trust Does Not Constitute An Asset Sale

    PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on March 5 affirmed a bankruptcy court's decision that the creation of a litigation trust did not constitute an asset sale pursuant to the Bankruptcy Code (The Boeing Company v. In Re: Alabama Aircraft Industries Inc. $(In Re: Alabama Aircraft Industries Inc.$), No. 12-1290, Chapter 11, 3rd Cir.; 2013 U.S. App. LEXIS 4487).

    Bankruptcy Court Erred, Syms Affiliate Argues; Rent Not Owed Under New Mortgage

    WILMINGTON, Del. - Trinity Place Holdings Inc., an entity formed out of bankrupt Syms Corp., on March 5 moved in the U.S. Bankruptcy Court for the District of Delaware for reconsideration of its ruling that Syms was responsible for rent on a property in connection with a loan tied to a mortgage refinancing deal. Trinity Place Holdings maintains that the type of mortgage involved does not obligate Syms to pay rent (In Re: Filene's Basement LLC, No. 11-13511, Chapter 11, D. Del. Bkcy.).

    Dewey & LeBoeuf Seeks Approval Of $41M Deal To Settle Claims By Former Partners

    NEW YORK - Bankrupt law firm Dewey & LeBoeuf on March 4 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of a settlement agreement among the firm, Paul Hastings LLP and some former partners that would eliminate $41 million in claims against Dewey & LeBoeuf (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

    San Bernardino Wants To Reject Collective Bargaining Deals With Some Unions

    RIVERSIDE, Calif. - The bankrupt City of San Bernardino, Calif., on March 4 moved in the U.S. Bankruptcy Court for the Central District of California for approval to reject collective bargaining agreements with its unionized employees, including police officers and firefighters (In Re: City of San Bernardino, California, No. 12-28006, Chapter 9, C.D. Calif. Bkcy.).

    2 Tribune Trustees Want More Than $13.25M For Leveraged Buyout Investigation

    WILMINGTON, Del. - Wilmington Trust Co., as indenture trustee for bankrupt media entity Tribune Co., on March 1 asserted a claim for more than $7.14 million related to costs it incurred related to an examiner's investigation of Tribune's failed leveraged buyout (LBO). Wilmington Trust argues that the examiner's work resulted in catching fraud as well as renegotiating Tribune's successful plan of reorganization (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.).

    U.S. Government: Bread Sale Would Let Hostess Avoid Environmental Liability

    NEW YORK - The U.S. attorney for the Southern District of New York on March 1 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to Hostess Brands Inc.'s motion to sell its bread assets, contending that it would improperly release the purchaser of those assets from potential environmental liability related to properties that would be sold as part of the transaction (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).

    Judge: Jurisdiction Exists Over Insolvent Insurer's Breach Of Fiduciary Duty Claim

    WEST PALM BEACH, Fla. - There is "related to" jurisdiction over an insolvent insurer's breach of fiduciary duty claim against its former directors, a Florida federal bankruptcy judge held Feb. 28, refusing to dismiss the claim (In re: British American Insurance Company Ltd., Chapter 15, Nos. 09-31881 & 09-35888; British American Insurance Company Ltd. v. Robert Fullerton, et al., Adv. Proc. No. 11-03118, S.D. Fla. Bkcy.; 2013 Bankr. LEXIS 758).

    Kodak Seeks Approval Of $600M Financing Deal Linked To Asset Sale

    NEW YORK - Bankrupt Eastman Kodak Co. on March 1 moved in the U.S. Bankruptcy Court for the Southern District of New York for authorization to secure $600 million in additional post-petition financing the company says will speed its exit from Chapter 11 bankruptcy (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).

    Delaware Federal Judge Grants Debtor Access To Asbestos Claimant Information

    WILMINGTON, Del. - A Delaware federal judge on March 1 ruled that Chapter 11 debtor Garlock Sealing Technologies LLC can obtain documents filed by asbestos claimants' attorneys in nine other asbestos-related bankruptcy cases, finding that a bankruptcy judge erred and abused her discretion in denying Garlock access to the exhibits (In Re: Motions for Access of Garlock Sealing Technologies LLC, No. 11-1130, D. Del.; 2013 U.S. Dist. LEXIS 28283).

    Committee: Banks' Claims To ResCap Assets Disallowed As Preferential Transfers

    NEW YORK - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy of Residential Capital LLC on Feb. 28 sued UMB Bank NA and Wells Fargo Bank in the U.S. Bankruptcy Court for the Southern District of New York, arguing that the claim asserted by the banks should be disallowed (Official Committee of Unsecured Creditors v. UMB Bank, et al. $(In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).

    Creditors' Committee Seeks To Delay Hearing On K-V Discovery's Reorganization Plan

    NEW YORK - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy of pharmaceutical company K-V Discovery Solutions Inc. on Feb. 28 moved in the U.S. Bankruptcy Court for the Southern District of New York for an order adjourning the hearing to consider the company's disclosure statement, contending that the current plan of reorganization does not provide sufficient recovery for creditors (In Re: K-V Discovery Solutions Inc., No. 12-13346, Chapter 11, S.D. N.Y. Bkcy.).

    U.S. Trustee: Nortel's Motion To Waive Disclosure Rules In Bankruptcy Not Proper

    WILMINGTON, Del. - The U.S. trustee in the Chapter 11 bankruptcy of Nortel Networks Inc. on Feb. 27 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to Nortel's motion seeking modification of the disclosure requirements of local bankruptcy rules (In Re: Nortel Networks Inc., No. 09-10138, Chapter 11, D. Del. Bkcy.).

    Bankruptcy Judge Approves Dewey & LeBoeuf's Plan Of Liquidation

    NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of former law firm Dewey & LeBoeuf on Feb. 27 approved the firm's second amended plan of liquidation (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

    TD Bank, Rothstein Creditor Reach $41M Deal To Resolve Ponzi Scheme Claims

    FORT LAUDERDALE, Fla. - The federal bankruptcy judge presiding over the Chapter 11 proceeding of former law firm Rothstein Rosenfeldt Adler (RRA) on Feb. 26 agreed to a settlement in which TD Bank will pay $41 million to resolve allegations that it committed fraud and aided in money laundering as part of Scott Rothstein's Ponzi scheme that led to RRA's bankruptcy (In Re: Rothstein Rosenfeldt Adler, No.09-34791, S.D. Fla. Bkcy.).