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Judge Orders Accounting Firm's Insurer To Pay $10M To Bankruptcy Estate

FORT LAUDERDALE, Fla. - A Florida federal bankruptcy judge on April 9 granted a motion by the Chapter 11 trustee of the law firm once headed by convicted Ponzi scheme operator Scott Rothstein to compel the insurer of an accounting firm, which allegedly enabled the Ponzi scheme, to pay $10 million to...

Bankruptcy Judge: Insurance Carriers May Pay Defense Costs In MF Global Case

NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of MF Global Holdings Ltd. (MFGH) in the U.S. Bankruptcy Court for the Southern District of New York on April 10 ruled that the automatic stay could be lifted in the case to allow the payment of certain defense costs using...

Alternative Dispute Resolution Proposal By Hostess Should Be Changed, Insurers Say

NEW YORK - An insurance company and its affiliate on May 24 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to a motion by bankrupt Hostess Brands Inc. that seeks to use alternative dispute resolution (ADR) as a means of resolving various claims in its Chapter...

Delaware Federal Judge Amends Ruling But Still Confirms Grace's Chapter 11 Plan

WILMINGTON, Del. - A Delaware federal judge on June 11 granted requests to rehear arguments and alter his opinion confirming W.R. Grace & Co.'s Chapter 11 plan of reorganization and then filed an amended 228-page confirmation decision that also includes changes to reflect two recent federal circuit...

Delaware Federal Judge Denies Stay Of Bankrupt Company's Reorganization

WILMINGTON, Del. - Bankrupt asbestos products company Garlock Sealing Technologies LLC failed to show that its appeal of the confirmation of W.R. Grace & Co.'s Chapter 11 plan of reorganization is likely to succeed, and delaying implementation of the plan will harm Grace and people suffering...

Federal Bankruptcy Judge Dismisses Breach Of Contract, Subrogation Case

WILMINGTON, Del. - A bankruptcy judge in Delaware on Oct. 4 dismissed an insurance claims breach of contract case, saying the court lacked jurisdiction to hear the dispute ( In re Washington Mutual Inc., et al., No. 08-12229, D. Del. Bkcy.; 2012 Bankr. LEXIS 4673).

Insurers: Arbitration Needed In Hostess Bankruptcy To Resolve Contract Dispute

NEW YORK - A group of insurance companies on Dec. 7 moved in the U.S. Bankruptcy Court for the Southern District of New York to compel arbitration of a contract dispute related to an insurance agreement involving bankrupt Hostess Brands Inc. (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D...

Dewey & LeBoeuf Executives: $19.5M Deal With Insurer Lacks 'Supportable Basis'

NEW YORK - Two former executives with bankrupt law firm Dewey & LeBoeuf on May 2 filed a brief objecting to the more than $19.5 million settlement reached among the Dewey & LeBoeuf Liquidation Trust, XL Specialty Insurance Co. and Steven H. Davis, on grounds that the liquidating trustee has failed...

Insurer: U.S. High Court Must Vacate; Bankruptcy Courts Lack Judicial Power

WASHINGTON, D.C. - In a brief made available on Sept. 16, the Executive Benefits Insurance Agency (EBIA) argues that the U.S. Supreme Court should vacate a ruling by the Ninth Circuit U.S. Court of Appeals because Article III of the U.S. Constitution does not permit the exercise of the judicial power...