NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on Dec. 6 affirmed a district court's ruling that a creditor in the Chapter 11 bankruptcy proceeding of MF Global Holdings Ltd. (MFGH) did not have jurisdiction to direct the administration of the bankruptcy estate as it related to securing payment for commodities customers (Sapere Wealth Management v. MF Global Holdings Ltd., No. 12-4254, Chapter 11, 2nd Cir.; 2013 U.S. App. LEXIS 24267).
WASHINGTON, D.C. - U.S. Supreme Court Justice Ruth Bader Ginsburg on Dec. 8 denied an emergency application by individual airline customers seeking to prevent the merger of bankrupt American Airlines Inc. and US Airways Group Inc. The customers had argued that the merger violates federal antitrust laws (Carolyn Fjord v. AMR Corporation, No.13A579, U.S. Sup.).
NEW YORK - The class action plaintiffs that sued bankrupt AMR Corp., the parent company of American Airlines, on Dec. 4 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that the Bankruptcy Court should stay its decision approving the merger of American Airlines and US Airways Group Inc. pending appeal (Carolyn Fjord, et al. v. AMR Corporation, et al. $(In Re: AMR Corporation$), no. 11-15463, Adv. No. 13-01392, Chapter 11, S.D. N.Y. Bkcy.).
DETROIT - The federal bankruptcy judge who had previously issued a verbal ruling that the City of Detroit is eligible to file for Chapter 9 bankruptcy released a formal written opinion on Dec. 5, saying that while the concerns of objectors had merit, the evidence showed that the city negotiated in good faith before filing its petition (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
WASHINGTON, D.C. - The U.S. Supreme Court on Dec. 6 said it will review a patent case that resulted in a deeply divided decision by the Federal Circuit U.S. Court of Appeals that included six separate opinions and "additional reflections" on what constitutes patent-eligible subject matter in computer-implemented inventions (Alice Corporation Pty. Ltd. v. CLS Bank International and CLS Services Ltd., No. 13-298, U.S. Sup.).
DENVER - The 10th Circuit U.S. Court of Appeals on Dec. 5 partially affirmed and partially reversed a bankruptcy court's ruling, remanding it for further consideration regarding a creditor's claim that he has a valid judgment lien against a piece of real property that the debtor allegedly transferred fraudulently (Arthur Clark v. M. Stephen Peters $(In Re: Gary Lee Bryan$), No. 12-1485, Chapter 7, 10th Cir.; 2013 U.S. App. LEXIS 24178).
LOS ANGELES - The attorney representing bankrupt GGW Brands Inc., the producer of adult videos that carry the name "Girls Gone Wild," on Dec. 4 filed a notice that he was appealing the ruling issued by the bankruptcy judge in the U.S. Bankruptcy Court for the Central District of California ordering him to disgorge the majority of a $20,000 retainer related to his work for GGW (In Re: GGW Brands Inc., No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).
NEW YORK - Bankrupt Hawker Beechcraft Inc. on Dec. 4 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to a $2.2 billion claim filed by two employees of a subcontractor the company used to manufacture airplane parts, on grounds that they have not met their burden of proof (In Re: Hawker Beechcraft Inc., No. 12-11873, Chapter 11, S.D. N.Y. Bkcy.).
NEW YORK - The liquidation trustee in the Securities Investor Protection Act (SIPA) for MF Global Inc. (MFGI), an affiliate of bankrupt MF Global Holdings LLC (MFGH), on Dec. 4 filed an interim report in which he says there is a probability of a 100 percent recovery of allowed net equity claims for all commodities and securities customers (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.).
WILMINGTON, Del. - Bankrupt Revstone Industries LLC on Dec. 4 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to a motion filed by the Official Committee of Unsecured Creditors seeking to appoint a Chapter 11 trustee on grounds that an independent fiduciary other than the one that is currently in place is not needed (In Re: Revstone Industries LLC, No. 12-13262, Chapter 11, D. Del. Bkcy.).
WILMINGTON, Del. - US Bank National Association on Dec. 3 filed an adversary complaint in the U.S. Bankruptcy Court for the District of Delaware seeking declaratory relief against a creditor of bankrupt energy company Evergreen Solar Inc., contending that certain patents that were part of an asset purchase agreement (APA) belong to the bank (US Bank National Association v. Max Era Properties $(In Re: Evergreen Solar Inc.$), No. 11-12590, Chapter 11. D. Del. Bkcy.).
DETROIT - The union representing the employees of the bankrupt City of Detroit on Dec. 3 filed a brief objecting to the city's motion seeking permission to designate certain claims against the bankruptcy estate as being subject to Alternative Dispute Resolution (ADR) (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
WILMINGTON, Del. - Bankrupt Global Aviation Holdings Inc. on Dec. 3 moved in the U.S. Bankruptcy Court for the District of Delaware for approval to sell substantially all of its assets, saying it will provide $35 million in repayment to its creditors (In Re: Global Aviation Holdings Inc., No. 13-12945, Chapter 11, D. Del. Bkcy.).
DETROIT - The federal bankruptcy judge presiding over the Chapter 9 case filed by the City of Detroit issued a verbal ruling from the bench on Dec. 3, stating that the city is eligible to file for bankruptcy, a source said. The unions representing city employees immediately filed a notice of appeal (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
GREENBELT, Md. - A Maryland federal judge on Dec. 2 issued an order granting a motion to dismiss a claim for violation of the Racketeer Influenced and Corrupt Organizations Act asserted by a Dubai corporation against a former owner of a consultant firm for failure to state a claim upon which relief can be granted (Bhari Information Technology System Private Limited v. Komal Sriram, No. 13-1480, D. Md.; 2013 U.S. Dist. LEXIS 169622).
NEW YORK - The liquidating trustee in the Chapter 11 bankruptcy of former law firm Dewey & LeBoeuf on Dec. 2 filed an adversary complaint in the U.S. Bankruptcy Court for the Southern District of New York, seeking recovering of $2,856,880 he contends constitutes fraudulent transfers (Alan M. Jacobs v. Eric W. Blanchard $(In Re: Dewey & LeBoeuf$), No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 case of Residential Capital LLC (ResCap) on Nov. 27 expunged a claim valued at more than $646.87 million against the bankruptcy estate, finding that it was precluded by the doctrines of res judicata and collateral estoppel (In Re: Residential Capital LLC, No. 12-12020, Chapter 11. S.D. N.Y. Bkcy.).
NEW YORK - A former client of bankrupt law firm Dewey & LeBoeuf on Nov. 27 moved in the U.S. Bankruptcy Court for the Southern District of New York for permission to file a late claim on grounds that a former partner at the firm provided legal analysis related to investments for which the client is now being penalized $5.8 million by the IRS (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).
NEW HAVEN, Conn. - An insurer told a federal court in Connecticut on Nov. 27 that its reinsurer has failed to honor an asbestos-related reinsurance billing without explanation or excuse (Travelers Casualty & Surety Company v. Excalibur Reinsurance Corporation, No. 13-cv-01775, D. Conn.).
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 case of AMR Corp., the parent company of American Airlines Inc., on Nov. 27 approved a settlement between American Airlines and the U.S. Department of Justice (DOJ) that will allow the airline to merge with US Airways Inc. and emerge from Chapter 11 bankruptcy (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).
PHILADELPHIA - A claim by a woman who alleges that she had a therapeutic abortion because the antidepressant Paxil caused a heart defect in her unborn son missed a two-year statute of limitations and failed to show that the manufacturer fraudulently concealed the drug's birth defect risk, a Pennsylvania appeals court panel ruled Nov. 17 (Joanne Thomas, et al. v. Smith Kline Beecham Corporation, et al., No. 2461 EDA 2012, Pa. Super.).
DETROIT - Syncora Guarantee Inc., which insures municipal bonds, on Nov. 26 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan arguing that the bankrupt City of Detroit lacks standing to expedite the Bankruptcy Court's consideration of Syncora's state law action against nondebtor defendant banks related to contracts referred to as swap agreements that were negotiated and executed seven years before the city's bankruptcy (Syncora Guarantee Inc. v. UBS AG, et al. $(In Re: City of Detroit$), No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
NEW ORLEANS - A federal judge in Louisiana on Nov. 26 entered a 60-day stay in a Clean Water Act (CWA) suit against the owner and operator of a floating oil and gas production platform in the Gulf of Mexico for the government to conduct a criminal investigation into the company's operation of the ATP Innovator (United States of America v. ATP Oil & Gas Corporation, et al., No. 13-0262, E.D. La.; 2013 U.S. Dist. LEXIS 168061).
NEW YORK - The bankruptcy judge presiding over the Chapter 11 case of Hostess Brands Inc. on Nov. 26 approved $8,745,298.09 in fees and expenses for law firms and financial advisers, with the largest amount paid to the debtor's law firm (In Re: Old HB Inc. f/k/a/ Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).
WASHINGTON, D.C. - The U.S. Supreme Court on Nov. 26 granted certiorari in a case in which a debtor couple contend that high court review is needed to settle a split in the circuit courts regarding whether Chapter 7 debtors are permitted to exempt money in an inherited individual retirement account (IRA) from their bankruptcy estate (Brandon Clark, et al. v. William Rameker, No. 13-299, Chapter 7, U.S. Sup.).