Kodak, Digital Camera Company Reach Deal On Trademark Payments, Bankruptcy Claims

    NEW YORK - Bankrupt Eastman Kodak Co. on Jan. 29 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, arguing that the Bankruptcy Court should approve a stipulation between it and a German company from which Kodak licensed certain trademarks in connection with digital camera lens systems (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).

    Mexican Bread Maker: Hostess Bread Sale Would Give Rival Too Much Market Share

    WASHINGTON, D.C. - Mexican bread maker Grupo Bimbo S.A.B. de C.V. on Jan. 29 filed a brief in the U.S. District Court for the District of Columbia arguing that the order requiring it to divest of certain assets should be temporarily suspended in light of a rival bread company's plan to purchase the bread assets of bankrupt Hostess Brands Inc., which would give it 87 percent of the bread market in California (United States of America v. Grupo Bimbo S.A.B. de C.V., No. 11-1857, D. D.C.).

    School Specialty Steering Committee Balks At $50M Post-Petition Loan Deal

    WILMINGTON, Del. - The Steering Committee of Convertible Noteholders of bankrupt School Specialty Inc. on Jan.29 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to the debtor's motion seeking $50 million in post-petition financing (In Re: School Specialty Inc., No. 13-10125, Chapter 11, D. Del. Bkcy.).

    7th Circuit: Citation Valid; Creditor Can Claim Money In Debtor's Bank Account

    CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on Jan. 28 ruled that a creditor who had won a state court judgment against a debtor had served a valid citation on the debtor's bank and was entitled to the money in the debtor's account (In the Matter of William N. Porayko, No. 12-2777, Chapter 13, 7th Cir.; 2013 U.S. App. LEXIS 1919).

    Government Pension Agency Sues Bankrupt RG Steel Parent Renco Group, Alleges Fraud

    NEW YORK - The Pension Benefit Guaranty Corp. (PBGC) sued The Renco Group Inc. in the U.S. District Court for the Southern District of New York on Jan. 28, alleging fraud and negligent misrepresentation regarding a deal it consummated just before the Chapter 11 bankruptcy filing of its subsidiary RG Steel LLC (Pension Benefit Guaranty Corporation v. The Renco Group Inc., No. 13-621, Chapter 11, S.D. N.Y.).

    Hostess Says $28.85M Offer For Selected Assets In Good Faith, Should Be Approved

    NEW YORK - Bankrupt Hostess Brands Inc. on Jan. 28 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that the bankruptcy court should approve the sale of some of its bakery assets for $28.85 million (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).

    Firm: Any Alleged Violations In GSC Bankruptcy Were Not Intentional

    NEW YORK - The law firm representing the liquidating trustee in the Chapter 11 bankruptcy of GSC Group Inc. on Jan. 28 filed a brief arguing that the bankruptcy judge should deny the U.S. trustee's motion seeking to have the liquidating trustee and the firm removed from the case (In Re: GSC Group Inc., No. 10-14653, Chapter 11, S.D. N.Y. Bkcy.).

    Hotel Entertainment Provider LodgeNet Files For Chapter 11 With $60M In Financing

    NEW YORK - LodgeNet Interactive Corp., a provider of hotel entertainment services, on Jan. 27 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York listing debts greater than $448.74 million and assets of slightly more than $291.72 million (In Re: LodgeNet Interactive Corporation, No. 13-10238, Chapter 11, S.D. N.Y. Bkcy.).

    Dewey & LeBoeuf, Former Partners Reach Agreement To Settle Unpaid Fees

    NEW YORK - Bankrupt law firm Dewey & LeBoeuf on Jan. 25 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of a settlement agreement with a group of lawyers who left the firm shortly before Dewey & LeBoeuf filed for Chapter 11, taking with them a client for which Dewey & LeBoeuf says it is owed fees and expenses (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

    Bankruptcy Judge: Hawker Beechcraft May Reject Some Contracts, Warranties

    NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Hawker Beechcraft Inc. on Jan. 28 partially granted the company's motion to reject some of its customer contracts and warranties, ruling that because they are executory in nature, the company has the right to reject them (In Re: Hawker Beechcraft Inc., No. 12-11873, Chapter 11, S.D. N.Y. Bkcy.).

    Lawyers Denied Judgment On Most Of Garlock's Fraud, Conspiracy Claims

    CHARLOTTE, N.C. - All but one claim by Garlock Sealing Technologies LLC in an adversary action alleging that attorneys fraudulently obtained a settlement from Garlock for a mesothelioma victim have survived the attorneys' first bid to have the case dismissed, according to two orders issued Jan. 28 by a North Carolina federal bankruptcy judge (Garlock Sealing Technologies, LLC, et al. v. Chandler, et al., No. 12-03137, W.D. N.C. Bkcy.).

    More Than $2.46M Fraudulently Transferred To Peregrine CEO's Ex-Wife, Trustee Says

    CHICAGO - The Chapter 7 trustee in the bankruptcy case of Peregrine Financial Group Inc. on Jan. 25 filed an adversary complaint against Connie J. Wasendorf, the former wife of Peregrine CEO Russell Wasendorf Sr., seeking to recover more than $2.46 million in transfers that were part of the agreement the Wasendorfs reached regarding the dissolution of their marriage before the bankruptcy (Ira Bodenstein v. Connie J. Wasendorf $(In Re: Peregrine Financial Group Inc.$), No. 12-27488, Chapter 7, N.D. Ill. Bkcy.).

    2nd Circuit: Stay Relief Not Proper In Chapter 11 Case Of Grocery Chain A&P

    NEW YORK - A Second Circuit U.S. Court of Appeals panel on Jan. 24 ruled that a bankruptcy court correctly denied a creditor of bankrupt grocery chain the Great Atlantic & Pacific Tea Co. (A&P) relief from the automatic stay to pursue litigation against the company (Grocery Haulers Inc. v. The Great Atlantic & Pacific Tea Co. $(In Re: The Great Atlantic & Pacific Tea Co.$), No. 12-800, Chapter 11, 2nd Cir.).

    Dewey & LeBoeuf Nets More Than $7.16M In Settlement With Former Partners In Italy

    NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of law firm Dewey & LeBoeuf on Jan. 24 approved a settlement worth more than $7.16 million between the law firm and the former partners of its Italian practice who left Dewey & LeBoeuf prior to the firm's bankruptcy filing (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

    Casey Anthony Files For Chapter 7 Bankruptcy, Citing $792,119 In Debts

    TAMPA, Fla. - Casey Anthony, the Florida woman who, after a 2011 trial that garnered national attention, was acquitted of charges that she had murdered her 2-year-old daughter, on Jan. 25 filed for Chapter 7 bankruptcy, citing debts of $792,119.23 and assets of only $1,084 (In Re: Casey Anthony, No. 13-922, Chapter 7, M.D. Fla. Bkcy.).

    5th Circuit: Deadline Passed To Object To Oil Company's Bankruptcy Agreement

    NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on Jan. 23 affirmed a bankruptcy court's approval of settlement agreements despite allegations of fraud, ruling that the deadline for objections to the bankruptcy plan had passed (Anti Lothian Bankruptcy Fraud Committee, et al. v. Lothian Oil Inc, et al. $(In the Matter of: Lothian Oil Inc.$), No. 11-51082, 5th Cir.).

    Federal Law Would Make Private Student Loans Dischargeable In Consumer Bankruptcy

    WASHINGTON, D.C. - U.S. Sen. Richard Durbin, D-Ill., on Jan. 23 announced the re-introduction of legislation that would restore language in consumer bankruptcy law to allow private student loans to be dischargeable in bankruptcy like most other forms of private debt.

    ResCap To Pay Fannie Mae $297.6M To Settle Claims Related To Contracts

    NEW YORK - Bankrupt Residential Capital LLC (ResCap) on Jan. 24 filed a stipulated agreement with the U.S. Bankruptcy Court for the Southern District of New York under which ResCap's subsidiary - GMAC Mortgage LLC - will pay Fannie Mae $297.6 million to settle Fannie Mae's claims (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).

    Steroid Plaintiffs Seek To Freeze $21M Paid Out By Compounding Pharmacy

    BOSTON - A Massachusetts bankruptcy judge on Jan. 23 scheduled a hearing on an emergency motion by unsecured creditors to try to freeze $21 million the creditors say was transferred in the past year to insiders of New England Compounding Pharmacy Inc. (NECP), the company at the center of a fungal meningitis outbreak (In Re: New England Compounding Pharmacy, Inc., No. 12-19882, D. Mass., E. Div.).

    Asset Auction For Videogame Maker THQ Nets More Than $71.69 Million

    WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 11 proceeding of videogame maker THQ Inc. on Jan. 23 approved an auction of the company's assets that garnered $71,694,000 (In Re: THQ Inc., No. 12-13398, Chapter 11, D. Del. Bkcy.).

    Land America Trustee Says $70.2M Asset Sale Is In Best Interest Of Creditors

    RICHMOND, Va. - The dissolution trustee in the Chapter 11 bankruptcy of Land America Financial Group Inc. on Jan. 22 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Virginia supporting a sale of Land America's assets for $70.2 million (In Re: Land America Financial Group Inc., No. 08-35994, Chapter 11, E.D. Va. Bkcy.).

    U.S. Government Seeks Life In Prison For Fraud By Peregrine CEO Russell Wasendorf

    CEDAR RAPIDS, Iowa - The U.S. government, which sued Peregrine Financial Group Inc. CEO Russell R. Wasendorf Sr. alleging securities fraud related to Peregrine's Chapter 7 bankruptcy filing, on Jan. 22 filed a memo in federal court calling for Wasendorf to be sentenced to life in prison (United States of America v. Russell R. Wasendorf Sr., No. 12-2021, N.D. Iowa).

    Videogame Maker Atari Files For Chapter 11 Bankruptcy

    NEW YORK - Videogame manufacturer Atari Inc. filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York on Jan. 21, despite listing assets between $10 million and $50 million and liabilities between only $100,000 and $500,000 (In Re: Atari Inc., No. 13-10177, Chapter 11, S.D. N.Y. Bkcy.).

    Malpractice Case Tied To Bankruptcy May Proceed In State Court, Judge Says

    PHILADELPHIA - A federal judge in Pennsylvania on Jan. 18 ruled that a malpractice lawsuit related to the underlying Chapter 11 bankruptcy proceeding of mortgage company Taylor Bean & Whitaker (TBW) could proceed in Pennsylvania state court (Stradley Ronon Steven & Young v. Sovereign Bank NA, No. 12-2466, E.D. Pa.).

    Bankruptcy Judge Denies Dismissal Of Insurer's Aiding, Abetting Claim

    WEST PALM BEACH, Fla. - A federal bankruptcy judge in Florida on Jan. 18 refused to dismiss bankrupt insurers' claims for aiding and abetting and breach of fiduciary duty against companies regarding real estate investments; however, the judge did dismiss the insurers' rescission claim under the claim preclusion doctrine (In re: British American Insurance Co. Ltd., No. 09-31881 & 09-35888, In re: British American Isle of Venice $(BVI$) Ltd., No. 10-21627, British American Isle of Venice $(BVI$) and British American Insurance Co. Ltd. v. Robert Fullerton, et al., Adv. Proc. No. 11-03117, British American Insurance Co. Ltd. v. Robert Fullerton, et al., Adv. Proc. No. 11-03118, Chapter 15, S.D. Fla. Bkcy.; 2013 Bankr. LEXIS 217).