Bankruptcy Judge Denies Hawker Beechcraft Plan To Pay $5.32M In Bonuses

NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of aircraft company Hawker Beechcraft Inc. on Aug. 24 denied a plan to pay senior leaders in the company bonuses up to as much as $5.32 million, ruling that the requirements employees had to meet to get the bonuses were not challenging enough (In Re: Hawker Beechcraft Inc., No. 12-11873, Chapter 11, S.D. N.Y. Bkcy.).  Subscribers may view the opinion available within the full Mealey's article.

U.S. Trustee: Filene's Plan Of Reorganization Wrongly Exculpates Nonfiduciaries

WILMINGTON, Del. - The U.S. trustee in the Chapter 11 bankruptcy proceeding of Filene's Basement LLC on Aug. 24 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to Filene's second amended plan of reorganization on grounds that it attempts to exculpate parties other than bankruptcy estate fiduciaries (In Re: Filene's Basement LLC, No. 11-13511, Chapter 11, D. Del. Bkcy.). Subscribers may view the brief  available within the full Mealey's article.

California Appeals Panel Upholds Defense Verdict In Yamaha Rhino Injury Case

RIVERSIDE, Calif. - A California appeals court on Aug. 21 affirmed a defense verdict in a personal injury case involving an allegedly dangerous off-road vehicle, finding no error with the instructions to the jury (Jacob Daniel Lewis v. Yamaha Motor Corporation U.S.A., et al.,  No. E052318, Calif. App., 4th Dist.; 2012 Cal. App. Unpub. LEXIS 6135).

Bankruptcy Judge: Tribune Creditors' Stay Granted Pending $1.5B Bond

WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Tribune Co. on Aug. 22 stayed the implementation of the company's reorganization plan contingent upon two creditors that oppose Tribune's plan posting a $1.5 billion bond (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.). Subscribers may view the order available within the full article.

Wells Fargo, As Trustee, Seeks Stay Relief To Pay Fees On Municipal Bonds

SACRAMENTO, Calif. - The indenture trustee in the Chapter 9 bankruptcy of the City of Stockton, Calif., on Aug. 21 moved in the U.S. Bankruptcy Court for the Eastern District of California for relief from the automatic stay to apply certain indenture-held funds to satisfy municipal bonds (In Re: City of Stockton, California, No. 12-32118, Chapter 9, E.D. Calif. Bkcy.).

Insurer Objects To Filene's Chapter 11 Reorganization Plan, Says Rights Affected

WILMINGTON, Del. - Liberty Mutual Insurance Co., a creditor in the Chapter 11 bankruptcy of Filene's Basement LLC, on Aug. 22 filed a brief in the U.S. Bankruptcy Court for the District of Delaware, objecting to Filene's second amended plan of reorganization (In Re: Filene's Basement LLC, No. 11-13511, Chapter 11, D. Del. Bkcy.).

Solyndra Seeks Deal With Solar Panel Supplier To Avoid Arbitration

WILMINGTON, Del. - Bankrupt solar energy company Solyndra LLC on Aug. 20 moved in the U.S. Bankruptcy Court for the District of Delaware for an order approving an agreement with one of its creditors that supplied material for solar panels under which Solyndra agrees to surrender any claim to the material or the technology that was used to create it (In Re: Solyndra LLC, No. 11-12799, Chapter 11, D. Del. Bkcy.). Subscribers may view the motion available within the full article.

7th Circuit: Employee's 2nd Charge Was Untimely And Not An Amendment To 1st

CHICAGO - A maintenance mechanic's second administrative charge filed against his former employer for retaliation was a separate charge and not an amendment to his initial age discrimination charge, the Seventh Circuit U.S. Court of Appeals ruled Aug. 20, upholding a district court's finding that the retaliation claim was untimely (Mitchell Wojtanek v. Pactiv LLC, fka Pactiv Corporation, No. 12-1801, 7th Cir.; 2012 U.S. App. LEXIS 17491).

Comcast Tells High Court That Class Certification Was Improper Under Dukes

WASHINGTON, D.C. - The Third Circuit U.S. Court of Appeals erred in affirming the certification of a class of approximately 2 million non-basic cable television customers in the Philadelphia market on its claims that Comcast Corp. worked to establish a monopoly in the Philadelphia market and then increased prices once it had eliminated competition, Comcast argues in its merits brief filed Aug. 17 in the U.S. Supreme Court (Comcast Corporation, et al. v. Caroline Behrend, et al., No. 11-864, U.S. Sup.).  View related prior history,  2012 U.S. LEXIS 4754.

Gas And Oil Company Files For Chapter 11 Bankruptcy, Cites $1.9B In Debt

HOUSTON - Oil and gas exploration company ATP Oil & Gas Corp. on Aug. 17 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas, citing an aggregate debt of $1.9 billion brought on by the drilling prohibition instituted in the Gulf of Mexico after the Deepwater Horizon oil spill incident (In Re: ATP Oil & Gas Corporation, No. 12-36287, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the petition available within the full article.

4th Circuit Affirms Dismissal Of Medicaid Fraud Case For Lack Of Jurisdiction

RICHMOND, Va. - In a per curiam unpublished opinion, a panel of the Fourth Circuit U.S. Court of Appeals on Aug. 17 affirmed the dismissal of a qui tam action brought against an Indiana nursing home for alleged Medicaid violations, agreeing that the lower court lacked jurisdiction to hear the case (United States of America ex rel. Paul R. Black v. Health & Hospital Corporation of Marion County, et al.,  No. 11-1726, 4th Cir.; 2012 U.S. App. LEXIS 17398).

Bankrupt Hostess CEO: Deal With Union Close, May Pave Way Out Of Chapter 11

NEW YORK - The CEO of bankrupt Hostess Brands Inc. on Aug. 20 sent a letter to employees indicating that the company had reached a breakthrough with its largest union regarding modification to the collective bargaining agreement (CBA), which may help pave the way for Hostess to emerge from bankruptcy (In Re:  Hostess Brands Inc.,  No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).

Kodak Renews Motion, Seeks Ruling That It Owns Disputed Digital Photography Patents

NEW YORK - Bankrupt Eastman Kodak Co. on Aug. 17 filed a renewed motion for summary judgment in the U.S. Bankruptcy Court for the Southern District of New York, seeking a ruling that it owns eight patents to digital photography that are disputed by Apple Inc. and FlashPoint Technology Inc. (Eastman Kodak Company v. Apple Inc., et al. (In Re: Eastman Kodak Company), Adv. No. 12-01720, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the motion available within the full article.

Dynegy Seeks Approval For Asset Sale To Unload 2 Power Plants

NEW YORK - Bankrupt energy company Dynegy Holdings LLC on Aug. 16 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval to proceed with an asset sale that would allow it to unload two power plants (In Re: Dynegy Holdings LLC, No. 11-38111, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the motion available within the full article.

American Airlines Seeks Approval Of CBA With Pilots

NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines, on Aug. 17 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York supporting American Airlines' motion to renew the collective bargaining agreement (CBA) it has with American Airlines pilots (In Re:  AMR Corporation,  No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

Creditor: MF Global Claim To $20M Loan Repayment Should Be Denied

NEW YORK - A creditor in the Chapter 11 bankruptcy proceeding of MF Global Holdings Ltd. (MFGH) on Aug. 16 filed an adversary complaint in the U.S. Bankruptcy Court for the Southern District of New York against two of MFGH's entities, seeking declaratory judgment resolving a controversy related to a $20 million loan, the money from which was used for trading with MFGH (Mercuria Energy America Inc. v. MF Global Finance USA Inc., et al. (In Re: MF Global Holdings Ltd.), No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.). View related prior history, 2012 U.S. Dist. LEXIS 73993.

Adult Firms Adequately Pleaded Antitrust In .XXX Domain Dispute, Judge Finds

LOS ANGELES - Two adult entertainment firms have sufficiently pleaded claims for conspiracy and monopolization against the International Corporation for Assigned Names and Numbers (ICANN) and a company that it contracted to be registry of the newly approved .XXX top-level domain (TLD) on the Internet, a California federal judge held Aug. 14, partly denying a motion to dismiss the firms' antitrust claims (Manwin Licensing International S.A.R.L., et al. v. ICM Registry LLC, et al., No. 2:11-cv-09514, C.D. Calif.). Subscribers may view the in chambers order available within the full Mealey's article.

$300,000 Claim Against Kodak Should Be Allowed, Creditor Tells Bankruptcy Court

NEW YORK - A creditor in the Chapter 11 bankruptcy of Eastman Kodak Co. on Aug. 15 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, contending that its $300,000 claim should be allowed based on an accurate definition of the actual value of the goods it provided Kodak in the operation of its business (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.). View related prior history, 2012 Bankr. LEXIS 2944.

Bankruptcy Judge: American Airlines May Not Reject Union Agreements

NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines Inc., on Aug. 15 denied the airline's motion to reject collective bargaining agreements with its unions (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the opinion available within the full article.

Bankruptcy Judge Approves $14.9M In Bonuses To Key Employees Of ResCap

NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Residential Capital LLC (ResCap) on Aug. 15 approved $14.9 million in bonuses to key employees (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the order available within the full article.

Federal Circuit Affirms: MIT Patent Invalid For Lack Of Enablement

WASHINGTON, D.C. - A Delaware federal judge properly granted summary judgment of patent invalidity in a dispute over read-write sensors for computer hard disk drive storage systems, the Federal Circuit U.S. Court of Appeals ruled Aug. 14 (Magsil Corporation and Massachusetts Institute of Technology v. Hitachi Global Storage Technologies Inc., , No. 11-1221, Fed. Cir.).

11th Circuit Upholds Dismissal Of 2 Trasylol MDL Cases For Lack Of Service

ATLANTA - Two Trasylol plaintiffs failed to serve Bayer Corp. with complaints and properly had their cases dismissed without prejudice, even if that meant their cases would be barred by the statute of limitations, a panel of the 11th Circuit U.S. Court of Appeals ruled Aug. 14 (Douglas Moore, et al. v. Bayer Corporation, et al.,  No. 11-14546, 11th Cir.).

Bankrupt Media Company Sued; Parent Company Says $1.1M In Artwork Taken Wrongfully

NEW YORK - Inner City Broadcasting Corp. (ICBC), the parent company of bankrupt Inner City Media Corp. (ICMC), on Aug. 13 sued the company's senior lenders, the chief restructuring officer and others in the U.S. Bankruptcy Court for the Southern District of New York, arguing that they wrongfully removed $1.1 million in artwork from ICMC's offices (Inner City Broadcasting Corporation v. YMF Media LLC, et al. (In Re: Inner City Media Corporation), No. 12-01796, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the complaint available within the full Mealey's article.

NewPage Reorganization Plan: $13.8M To Some Creditors; Others Control Company

WILMINGTON, Del. - Bankrupt paper company NewPage Corp. on Aug. 13 filed its Chapter 11 reorganization plan in the U.S. Bankruptcy Court for the District of Delaware under which junior creditors would receive $13.8 million, while senior noteholders would gain control of the company (In Re: NewPage Corporation, No. 11-12804, Chapter 11, D. Del. Bkcy.). Subscribers may view the reorganization plan available within the full article.

Grand Jury Indicts Bankrupt Peregrine's CEO On 31 Counts Of Commodities Fraud

WATERLOO, Iowa - A federal grand jury in Waterloo, Iowa, on Aug. 13 handed down an indictment against Robert Wasendorf Sr., the CEO of bankrupt Peregrine Financial Group Inc., on 31 counts of fraud related to official reports he filed with the U.S. Commodity Futures Trading Commission (CFTC) (United States of America v. Russell R. Wasendorf Sr., No. 12-2021, N.D. Iowa).  Subscribers may view the indictment available within the full Mealey's article.