WASHINGTON, D.C. - W.R. Grace & Co.'s emergence from Chapter 11 bankruptcy protection included a payment of more than $63 million to the U.S. government to resolve claims for cleanup and restoration of hazardous waste sites in 21 states, the U.S. Department of Justice and U.S. Environmental Protection Agency announced Feb. 5.
WILMINGTON, Del. - A Delaware bankruptcy judge on Feb. 3 allowed the trustee for affiliates of an insolvent insurer to have immediate access to the insurer's offices and records but limited the involvement of the insurer's founder in the retrieval of the documents (In re: The Agency LLC, No. 14-10118, In re: Insurance Designers of Maryland Inc., No. 14-10119, D. Del. Bkcy.).
SACRAMENTO, Calif. - The bankrupt City of Stockton, Calif., on Feb. 3 filed a brief in the U.S. Bankruptcy Court for the Central District of California supporting the confirmation of its financial plan, which it says will raise $28 million annually in new revenue based on a 0.75 percent sales tax increase (In Re: City of Stockton, Calif., No. 12-32118, Chapter 9, C.D. Calif. Bkcy.).
WILMINGTON, Del. - Liberty Channelside LLC, a creditor in the Chapter 15 bankruptcy of Irish Bank Resolution Corp. Ltd. (IBRC), on Feb. 5 filed a brief in the U.S. Bankruptcy Court for the District of Delaware arguing that the Bankruptcy Court should order the Tampa Port Authority (TPA) to respond to the adversary complaint Liberty Channelside filed against the IBRC based on the TPA's involvement with a lease agreement between IBRC and Liberty Channelside (Liberty Channelside LLC v. Irish Bank Resolution Corporation Ltd. $(In Re: Irish Bank Resolution Corporation Ltd.$), No. 13-12159, Adv. No. 13-52542, Chapter 15, D. Del. Bkcy.).
LOS ANGELES - Alternative energy company Element Solar LLC on Feb. 5 filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the Central District of California, citing debts of $195,666.92 (In Re: Element Solar LLC, No. 14-10232, Chapter 7, C.D. Calif. Bkcy.).
RALEIGH, N.C. - A North Carolina federal judge on Jan. 31 granted six unopposed motions for summary judgment but held in abeyance two opposed motions so that Ford Motor Co. could argue the importance of a recent ruling in Garlock Sealing Technologies' asbestos bankruptcy (Graham Yates and Becky Yates v. Air & Liquid Systems Corp., et al., No. 12-752, E.D. N.C.; 2014 U.S. Dist. LEXIS 12295).
NEW YORK - Former CEO of bankrupt MF Global Holdings Ltd. (MFGH) Jon S. Corzine, along with other principals in MFGH, on Feb. 4 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, contending that the trustee in the Securities Investor Protection Act (SIPA) litigation related to MFGH's affiliate MF Global Inc. should not be permitted to decommission computers because it will interfere with discovery being conducted in related litigation (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.).
WILMINGTON, Del. - Bankrupt Revstone Industries Inc. on Feb. 4 filed a supplemental brief in the U.S. Bankruptcy Court for the District of Delaware opposing the motion of the Official Committee of Unsecured Creditors seeking to appoint a Chapter 11 trustee or convert the case to Chapter 7 bankruptcy (In Re: Revstone Industries LLC, No. 12-13262, Chapter 11, D. Del. Bkcy.).
DETROIT - The bankrupt City of Detroit on Feb. 4 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan opposing the motion by a group of prepetition claimants who contend that the city violated their civil rights when it filed for Chapter 9 bankruptcy (In Re: City of Detroit, No 13-53846, Chapter 9, E.D. Mich. Bkcy.).
WILMINGTON, Del. - Bankrupt Overseas Shipholding Group Inc. (OSG) on Feb. 3 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to a motion to dismiss filed by the law firm that OSG accuses of legal malpractice in connection with the company's bankruptcy filing (Overseas Shipholding Group Inc. v. Alan P. Parnes, et al. $(In Re: Overseas Shipholdings Group Inc.$), No. 12-20000, Adv. No. 13-52492, Chapter 11, D. Del. Bkcy.).
WILMINGTON, Del. - Nearly 13 years after filing for Chapter 11 protection to resolve hundreds of thousands of asbestos personal injury claims, global chemical and materials producer W.R. Grace & Co. filed notice Feb. 3 in Delaware federal bankruptcy court that its plan of reorganization had become effective, the same day the Third Circuit U.S. Court of Appeals granted a stipulation dismissing the final appeal to the plan's confirmation (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.; In re: W.R. Grace & Co., et al., Nos. 12-1402, 12-1403, 12-1404, 12-1405, 12-2924, 3rd Cir.).
CINCINNATI - A panel of the Sixth Circuit U.S. Court of Appeals on Feb. 3 remanded a case to a district court with instructions that it should enter judgment in favor of a debtor who sued his former employer alleging violations of the Employee Retirement Income Security Act of 1974 when it denied him long-term disability benefits. The panel also ruled that the debtor's lawsuit was not barred by judicial estoppel despite the fact that he failed to list it in his bankruptcy schedules when he filed his petition (Nilratan Javery v. Lucent Technologies Inc., No. 12-3834, Chapter 13, 6th Cir.; 2014 U.S. App. LEXIS 1992).
HELENA, Mont. - The Roman Catholic bishop of Helena, Mont., on Feb. 2 issued a statement that the Diocese of Helena had filed for Chapter 11 bankruptcy as part of a settlement agreement that will provide $15 million as compensation for the victims of clergy sexual abuse. The diocese officially filed its Chapter 11 petition on Jan. 31 (In Re: Roman Catholic Bishop of Helena, Montana, a Montana Religious Corporation Sole $(Diocese of Helena$), No. 14-60074, Chapter 11, D. Bkcy. Mont.).
NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on Jan. 31 affirmed a woman's sentence for bankruptcy fraud, concluding that a district court properly applied the factors of the Bankruptcy Code that pertained to sentencing guidelines for fraud (United States of America v. Gwendolyn M. Walker, No. 13-30483, Chapter 13, 5th Cir.; 2014 U.S. App. LEXIS 1913).
ST. LOUIS - A panel of the Eighth Circuit U.S. Court of Appeals on Jan. 31 affirmed a lower court's finding that a debtor couple's Chapter 13 payment plan was not filed in good faith because it proposed to pay some creditors at the expense of the most vulnerable creditors (Shawn C. Copeland, et al. v. Richard V. Fink $(In Re: Shawn C. Copeland$), No. 12-4018, Chapter 13, 8th Cir.; 2014 U.S. App. LEXIS 1898).
DETROIT - The bankrupt City of Detroit on Jan. 31 moved in the U.S. Bankruptcy Court for the Eastern District of Michigan for an order vacating the appointment of an Official Committee of Unsecured Creditors on grounds that it is "neither necessary nor prudent" (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
WILMINGTON, Del. - Oil and gas drilling company Tuscany International Holdings (USA) Ltd. (TIH) on Feb. 2 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware and sought a total of $70 million in post-petition financing, consisting of $35 million in debtor-in-possession (DIP) financing and $35 million in what is referred to as a "roll up of pre-petition debt" (In Re: Tuscany International Holdings $(USA$) Ltd., No. 14-10193, Chapter 11, D. Del. Bkcy.).
LOS ANGELES - The founder of bankrupt GGW Brands LLC, the producer of adult entertainment videos that carry the name "Girls Gone Wild," on Jan. 30 filed a brief in the U.S. District Court for the Central District of California contending that the bankruptcy court's decision to force its affiliate GGW Marketing LLC into Chapter 11 bankruptcy was not valid (R. Todd Neilson v. Path Media Holdings LLC, et al. [In Re: GGW Brands LLC], No. 13-07666, Chapter 11, C.D. Calif.).
DETROIT - A federal judge in Michigan on Jan. 30 ruled that a bankruptcy court did not err when it dismissed a debtor's adversary complaint against federal lender Fannie Mae, determining that its foreclosure on the debtor's property did not violate the due process clause of the U.S. Constitution because Fannie Mae was not "a government actor" (David C. Kapla v. Federal National Mortgage $(In Re: David C. Kapla$), No. 13-13095, Chapter 7, E.D. Mich.).
WILMINGTON, Del. - A Delaware federal bankruptcy judge on Jan. 28 ruled that Chapter 11 debtor W.R. Grace & Co. can obtain up to $1.55 billion in financing from a dozen banks and financial institutions to support the company's operating needs as it emerges from bankruptcy (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.).
WILMINGTON, Del. - TPOP LLC, formerly known as bankrupt Revstone Industries LLC's affiliate Metavation LLC, on Jan. 29 served an adversary complaint on JPMorgan Chase Bank NA and Revstone's former chairman, George S. Hofmeister, seeking $2 million it says constitutes a fraudulent transfer (TPOP LLC v. JPMorgan Chase Bank NA $(In Re: TPOP LLC$), No. 13-11831, Adv. No. 14-50032, Chapter 11, D. Del. Bkcy.).
DETROIT - The federal bankruptcy judge presiding over the Chapter 9 case of the City of Detroit on Jan. 29 denied a motion filed by the governor of Michigan and the state treasurer seeking to stay an underlying case against them brought by residents who contend that Detroit's bankruptcy filing violates state law and the U.S. Constitution (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
WILMINGTON, Del. - Bankrupt Revstone Industries LLC on Jan. 27 filed an adversary complaint in the U.S. Bankruptcy Court for the District of Delaware seeking to recover $12.9 million in allegedly fraudulent transfers from George S. Hofmeister, its former manager, contending that Hofmeister stole the money (Revstone Industries LLC v. George S. Hofmeister, et al. $(In Re: Revstone Industries LLC$), No. 12-13262, Adv. No. 14-50033, Chapter 11, D. Del. Bkcy.).
NEW YORK - The liquidation trusetee for MF Global Inc. (MFGI), the customer investment affiliate of parent company MF Global Holdings Inc. (MFGH), on Jan. 29 filed a brief supporting a stipulation with CME Group Inc. under which CME's claim against the MFGI bankruptcy estate would be deemed a single, unsecured claim for $29 million with a higher priority than all other allowed unsecured claims (In Re: MF Global Inc., No. 11-02790, Chapter 11, S.D. N.Y. Bkcy.).
WILMINGTON, Del. - Bankrupt oil and gas company Green Field Energy Services Inc. (GFES) on Jan. 28 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to a motion for relief from the automatic stay filed by a creditor that wants to repossess leased equipment or pursue final payment for that equipment (In Re: Green Field Energy Services Inc., No. 13-12783, Chapter 11, D. Del. Bkcy.).