Mealey's Bankruptcy - Bankruptcy Judge Confirms Plant Insulation's Revised Reorganization Plan

    SAN FRANCISCO - A California federal bankruptcy judge on Feb. 28 confirmed the modified plan of reorganization of Chapter 11 debtor Plant Insulation Co. on remand from the Ninth Circuit U.S. Court of Appeals, finding that the revised plan now satisfies the requirement of Section 524(g) of the U.S. Bankruptcy Code that the plan's asbestos trust is entitled to own a majority of voting shares in the reorganized debtor (In re Plant Insulation Company, No. 09-31347, N.D. Calif. Bkcy.).

    Mealey's Bankruptcy - Federal Judge Allows Trustee's Claims Against Bank Executives To Remain

    BALTIMORE - A federal judge in Maryland on Feb. 28 allowed breach of fiduciary duty claims to remain in a suit the Chapter 7 trustee for a failed bank's holding company filed against the bank's former directors and officers (Charles R. Goldstein v. David Berman, et al., No. 12-2507, D. Md.; 2014 U.S. Dist. LEXIS 26348).

    Mealey's Bankruptcy - Bankrupt Detroit Proposes To Pay $85M To Settle Claims Of UBS, Merrill Lynch

    DETROIT - The bankrupt City of Detroit moved in the U.S. Bankruptcy Court for the Eastern District of Michigan on March 3 for approval of an agreement with lenders UBS AG and Merrill Lynch Capital Services Inc. under which the city would pay an aggregate sum of $85 million in cash to satisfy the lenders' claims related to swap agreements valued at $288 million (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).

    Mealey's Bankruptcy - U.S. High Court Reverses; Assets Cannot Be Used To Pay Trustee's Attorney Fees

    WASHINGTON, D.C. - In a unanimous decision, the U.S. Supreme Court on March 4 reversed a Ninth Circuit U.S. Court of Appeals ruling and held that a bankruptcy court exceeded the limits of its authority when it ruled that $75,000 that was protected under the homestead exemption in a Chapter 7 bankruptcy should be used to pay the trustee's attorney fees (Stephen Law v. Alfred Siegel, No. 12-5196, Chapter 7, U.S. Sup.).

    Mealey's Bankruptcy - Lenders: City Of Stockton, Calif.'s Debt Plan Not Made In 'Good Faith'

    SACRAMENTO, Calif. - Two investment funds on Feb. 26 filed a brief in the U.S. Bankruptcy Court for the Eastern District of California, objecting to the Chapter 9 debt payment plan filed by the City of Stockton, Calif., on grounds that it is not in the best interests of the creditors and fails to provide the investment funds with "a reasonable recovery" (In Re: City of Stockton, Calif., No. 12-32118, Chapter 9, E.D. Calif. Bkcy.).

    Mealey's Bankruptcy - Kodak Trustee Seeks To Recover $2.5 Million In Fraudulent Transfers

    NEW YORK - The trustee in the Chapter 11 bankruptcy of Eastman Kodak Co. on Feb. 27 filed an adversary complaint in the U.S. Bankruptcy Court for the Southern District of New York, seeking recovery of $2,502,435.99 in what he contends are fraudulent transfers (The Kodak GUC Trust v. Sykes Enterprises Inc. $(In Re: Eastman Kodak Company$), No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Fisker's Post-Petition Lender: Committee Should Not Be Allowed To Prosecute Cases

    WILMINGTON, Del. - Hybrid Tech Holdings LLC, the firm that agreed to provide post-petition financing to bankrupt Fisker Automotive Holdings Inc., on March 2 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to the motion of the Official Committee of Unsecured Creditors (the committee) of Fisker, contending that the committee should be granted expedited consideration for its motion seeking leave and authority to prosecute various causes of action on behalf of Fisker's estate (In Re: Fisker Automotive Holdings Inc., No. 13-13087, Chapter 11, D. Del. Bkcy.).

    Mealey's Bankruptcy - Investors: Bankrupt Bitcoin Exchange Operator Mt. Gox Liable For $409.2M Fraud

    CHICAGO - A putative class of investors filed a lawsuit against bankrupt Mt. Gox Inc. on Feb. 27 in the U.S. District Court for the Northern District of Illinois, alleging fraud, breach of contract and other causes of action related to the loss of 744,000 bitcoins, a digital currency the investors say is valued at $409.2 million (Gregory Greene v. Mt Gox, et al., No. 14-01437, N.D. Ill.).

    Mealey's Bankruptcy - D.C. Circuit: Bankruptcy Court Properly Held That Debtor Lacked Standing

    WASHINGTON, D.C. - A panel of the District of Columbia Circuit U.S. Court of Appeals on Feb. 28 held that a Bankruptcy Court ruled properly when it concluded that a debtor company lacked standing to challenge a settlement agreement that was part of the proceeding (Hope 7 Monroe Street Limited Partnership v. RIASO LLC [In Re: Hope 7 Monroe Street Limited Partnership], No.12-7054, D.C. Cir; 2014 U.S. App. LEXIS 3809).

    Mealey's Bankruptcy - Irish Bank Representatives: Lawsuit Should Be Dismissed As 'Collateral Attack'

    WILMINGTON, Del. - The foreign representatives of bankrupt Irish Bank Resolution Trust Corp. Ltd. (IBRC) on Feb. 27 filed a brief in the U.S. Bankruptcy Court for the District of Delaware, arguing that a creditor should not be permitted to file a separate lawsuit in federal court in New York because it constitutes "the same collateral attack" on the bankruptcy proceeding that was earlier filed and ruled upon (Kieran Wallace, et al. v. John Flynn [In Re: Irish Bank Resolution Trust Corporation Ltd.], No. 13-12159, Adv. No. 13-52547, Chapter 15, D. Del. Bkcy.).

    Mealey's Bankruptcy - Judge Rejects 'Innuendo' Regarding In re: Garlock But Partially Grants Motions

    RALEIGH, N.C. - Allegations of improper settlement practices raised in the In Re: Garlock Sealing Technologies, LLC, et al. bankruptcy case are irrelevant to summary judgment motions in a civil asbestos action, a North Carolina federal judge held Feb. 21 in nonetheless partially granting the motions (Graham Yates and Becky Yates v. Air & Liquid Systems Corp., et al., No. 12-752, E.D. N.C.).

    Mealey's Bankruptcy - Bankruptcy Court Sets Date For Asset Sale In Chapter 11 Case Of 'Girls Gone Wild'

    LOS ANGELES - The federal bankruptcy judge in California presiding over the Chapter 11 case of GGW Brands LLC, the parent company for the maker of adult videos carrying the name "Girls Gone Wild," on Feb. 24 issued an order establishing the date for a sale of GGW's assets, as well as a minimum price of $2,025,000 (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).

    Mealey's Bankruptcy - Bankrupt Arcapita Bank: Claim For More Than $3.53 Million Should Be Denied

    NEW YORK - Bankrupt Arcapita Bank B.S.C. on Feb. 25 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, contending that the Bankruptcy Court should deny a claim by creditor Bahrain Cinema Co. (BCC) for $3,539,810.74 (In Re Arcapita Bank B.S.C., No. 12-11076, Chapter 11, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Bankruptcy Judge Denies Claim For More Than $29.84M Against Residential Capital

    NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 case of Residential Capital LLC (ResCap) in the U.S. Bankruptcy Court for the Southern District of New York on Feb. 26 denied a creditor's claim for $29,841,120.01 because the creditor is not entitled to distribution under the Chapter 11 plan or pursuant to federal rules governing bankruptcy procedure (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Bankrupt Nortel: Escrow Agreements Related To Asset Sales Need Changes

    WILMINGTON, Del. - Bankrupt Nortel Networks Inc. (NNI) on Feb. 25 moved in the U.S. Bankruptcy Court for the District of Delaware for an order approving the issuance of joint escrow instructions and certain modifications to sale escrow agreements (In Re: Nortel Networks Inc., No. 09-10138, Chapter 11, D. Del. Bkcy.).

    Mealey's Bankruptcy - Bankrupt Dewey & LeBoeuf: Proper Notification Given In Termination Of Employees

    NEW YORK - Bankrupt law firm Dewey & LeBoeuf on Feb. 24 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York contending that the Bankruptcy Court should deny a motion by a class of former employees that claims that the firm violated federal law when it terminated their employment (Vittoria Conn v. Dewey & LeBoeuf [In Re: Dewey & LeBoeuf], No. 12-12321, Adv. No. 12-01672, Chapter 11, S.D. N.Y. Bkcy.).

    Mealey's Bankruptcy - Bankrupt Global Aviation: Deal Calling For $7.5M In Union Concessions Is Valid

    WILMINGTON, Del. - Bankrupt Global Aviation Holdings Inc. on Feb. 24 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to the brief of the International Brotherhood of Teamsters (IBT) and arguing that its Chapter 11 plan support agreement, which would require unionized employees to make $7.5 million in concessions, should be confirmed (In Re: Global Aviation Holdings Inc., No. 13-12945, Chapter 11, D. Del. Bkcy.).

    Mealey's Bankruptcy - Detroit Retiree Groups: City's Chapter 9 Plan 'Not Yet Ready For Prime Time'

    DETROIT - Two groups of retirees on Feb. 25 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan objecting to the Chapter 9 bankruptcy plan proposed by the City of Detroit, arguing that the city's plan is "not yet ready for prime-time consideration" (In Re: City of Detroit, No. 13-53946, Chapter 9, E.D. Mich. Bkcy.).

    Mealey's Bankruptcy - High Court Won't Hear Case Involving Cross-Elasticity Of Supply

    WASHINGTON, D.C. - The U.S. Supreme Court on Feb. 24 declined to review an 11th Circuit U.S. Court of Appeals ruling that affirmed the dismissal of attempted monopolization claims brought by the losing bidder in a bankruptcy auction of a steel mill's assets against the successful bidder, based on a finding that there was high cross-elasticity of supply, which deters monopoly pricing (Gulf States Reorganization Group, Inc. v. Nucor Corporation, No. 13-717, U.S. Sup.; 2013 U.S. Briefs 717; 2013 U.S. S. Ct. Briefs LEXIS 5120).

    Mealey's Bankruptcy - Alabama County Objects To $1.63B Claim, Says Taxpayers Are Not Creditors

    BIRMINGHAM, Ala. - Bankrupt Jefferson County, Ala., on Feb. 20 filed a brief in the U.S. Bankruptcy Court for the Northern District of Alabama objecting to the allowance of an administrative claim filed by a class of taxpayers who as residents of the county allege that they are due $1.63 billion in overages charged by the county sewer department. The county maintains that the claim must fail because the taxpayers are not creditors (In Re: Jefferson County, Ala., No. 11-5736, Chapter 9, N.D. Ala. Bkcy.).

    Mealey's Bankruptcy - Company That Shares Office With 'Girls Gone Wild' Seeks Surrender Of Property

    LOS ANGELES - Perfect Science Labs LLC, an affiliate of bankrupt GGW Brands LLC - the parent company of the maker of adult videos carrying the name "Girls Gone Wild" - on Feb. 21 moved in the U.S. Bankruptcy Court for the Central District of California to compel GGW to surrender commercial property that Perfect Science and GGW use for office space (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).

    Mealey's Bankruptcy - U.S. High Court Will Not Hear Case On Transfers Made Under Bankruptcy Code

    WASHINGTON, D.C. - The U.S. Supreme Court on Feb. 24 declined to hear a case in which an unsecured creditors committee had argued that 11 U.S. Code Section 546(e) permits it to recover transfers made by a debtor company to stockbrokers, financial institutions and other "qualified" entities (The Official Committee of Unsecured Creditors of Quebecor World (USA) Inc. v. American United Life Insurance Company, et al., No. 13-455, Chapter 11, U.S. Sup.).

    Mealey's Bankruptcy - Detroit's Chapter 9 Plan Would Invest $1.5B In The City; Retirement Benefits Safe

    DETROIT - The bankrupt City of Detroit on Feb. 21 filed its Chapter 9 payment plan in the U.S. Bankruptcy Court for the Eastern District of Michigan; the city says the plan will provide $1.5 billion for investment in the city and will allow it to emerge from bankruptcy this year (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).

    Mealey's Bankruptcy - IRS: Liquidation Plan Of 'Pink Slime' Maker Violates Bankruptcy Code

    WILMINGTON, Del. - The Internal Revenue Service on Feb. 21 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to the plan of liquidation filed by bankrupt AFA Investment Inc. - the maker of the "pink slime" additive to ground beef - contending that the plan amounts to "essentially a discharge" in violation of the Bankruptcy Code (In Re: AFA Investment Inc., No.12-11127, Chapter 11, D. Del. Bkcy.).

    Mealey's Bankruptcy - 3rd Circuit: Bankruptcy Deal Proper; Litigation Would Have Been 'Complex'

    PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeal on Feb. 19 ruled that a bankruptcy court ruled properly when it approved a settlement in a company's Chapter 11 bankruptcy because the litigation to dispute various claims would have been "complex," and collection of an eventual judgment would have been difficult (Ross J. Mangano v. John C. Warriner, et al. $(In Re: ID Liquidation One LLC$), No. 13-3386, Chapter 11, 3rd Cir.; 2014 U.S. App. LEXIS 2971).