Bankruptcy Judge In Landmark Johns-Manville, Madoff Cases Dies

NEW YORK - Longtime U.S. Bankruptcy Judge Burton R. Lifland of the Southern District of New York, who presided over several landmark cases, including Johns-Manville Corp.'s asbestos bankruptcy and the liquidation of the Bernard L. Madoff Investment Securities LLC estate following Madoff's Ponzi...

8th Circuit Says Debtor's Property Does Not Qualify For Homestead Exemption

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Jan. 13 affirmed a bankruptcy court's ruling that a debtor was not entitled to claim a homestead exemption for his property because he no longer lived there and had no intention of moving back (William Paul Jr. v. Forrest C. Allred $(In Re:...

Diocese Of Stockton Files For Bankruptcy Due To Costs Of Sex-Abuse Claims

SACRAMENTO, Calif. - The Roman Catholic Bishop of Stockton, Calif., the official name of the Diocese of Stockton, on Jan. 15 filed for Chapter 11 bankruptcy, citing debts ranging from $10 million to $50 million related to paying victims of sexual abuse by priests (In Re: The Roman Catholic Bishop of...

'Penthouse' Parent Company: Former Adviser's Claim For $3.43M Should Be Expunged

WILMINGTON, Del. - The adult entertainment company that produces material carrying the name "Penthouse" on Jan. 13 filed a brief in the U.S. Bankruptcy Court for the District of Delaware contending that claims asserted against its bankruptcy estate by its former financial adviser for $3,430...

Asset Sale, Reorganization Of JRC Conducted In 'Good Faith,' Bankruptcy Judge Says

NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 case of Pulp Finish 1 Co., formerly the Journal Register Co. (JRC), denied a creditor's motion to reconsider the order confirming the company's reorganization and denied the creditor's contention that the company's...

'Girls Gone Wild' Trustee: 'Prompt' Asset Sale Needed In Light Of 'Interference'

LOS ANGELES - The trustee in the Chapter 11 bankruptcy case of GGW Brands LLC, the parent of the adult entertainment company that produces videos carrying the name "Girls Gone Wild," on Jan. 16 filed a status report in which he says he is pursuing a "prompt" asset sale process in...

Creditors: Committee Needed For Valuation Of Works In Detroit Institute Of Arts

DETROIT - A group of creditors in the Chapter 9 bankruptcy of the City of Detroit, which includes the union representing city employees and retirees, on Jan. 16 filed a brief objecting to the city's opposition to a motion filed by a group seeking to assess the art collection at the Detroit Institute...

ResCap Liquidating Trust Seeks Mortgage Claim Settlement For Undisclosed Amount

NEW YORK - The liquidating trust for Residential Capital LLC (ResCap) on Jan. 15 moved in the U.S. Bankruptcy Court for the Southern District of New York for an order approving a settlement agreement among ResCap's bankrupt affiliate, Residential Funding Co. LLC (RFC) and CTX Mortgage Co., Pulte...

Split 1st Circuit: Property Rights Belong To Developers In Timeshare Bankruptcy

BOSTON - A divided panel of the First Circuit U.S. Court of Appeals on Jan. 16 ruled that two property developers had a secured interest in the real property of a bankrupt timeshare, over objections raised by the bank that financed the project (ScotiaBank de Puerto Rico v. Joseph Burgos $(In Re: The...

Bankruptcy Judge OKs W.R. Grace's $1.1B Settlement Of Final Reorganization Appeal

WILMINGTON, Del. - A Delaware federal bankruptcy judge on Jan. 17 approved a settlement agreement under which Chapter 11 debtor W.R. Grace & Co. will pay $1.1 billion to dozens of financial institutions and investment funds that are the only remaining objectors to Grace's plan of reorganization...

Creditor: Bankrupt Irish Bank Should Not Be Permitted To Sell Property Assets

WILMINGTON, Del. - A creditor in the Chapter 15 bankruptcy of Irish Bank Resolution Corp. Ltd. (IBRC) on Jan. 20 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to the sale of certain bank assets on grounds that IBRC owes it $27 million and that the motion to sell assets...

4th Circuit Reverses Ruling On Restitution For Alleged Victims Of Bankruptcy Fraud

RICHMOND, Va. - A panel of the Fourth Circuit U.S. Court of Appeals on Jan. 17 reversed a district court ruling that held that a debtor owed $631,050.52 in restitution related to his bankruptcy fraud, concluding that the government failed to show the debtor's lack of truthfulness in his bankruptcy...

Union: Detroit Emergency Manager Lacks Power To 'Diminish' Retiree Benefits

DETROIT - The union representing the employees of the bankrupt City of Detroit on Jan. 20 filed a brief in the adversary proceeding filed by the Official Committee of Retirees of the City of Detroit against the city, arguing that the emergency manager put in charge of the city's bankruptcy lacks...

Judge: Corzine's Motion To Dismiss Fraud Action Against Him 'Without Merit'

NEW YORK - A federal judge in New York on Jan. 17 issued a brief order denying Jon S. Corzine's motion for dismissal of the securities lawsuit filed against him for his role in the Chapter 11 bankruptcy of MF Global Holdings Ltd. (MFGH), finding his objection to be "without merit" (Joseph...

Lightsquared Stalking Horse Seeks To Withdraw Bid, Says Contract Is Not Binding

NEW YORK - A potential stalking horse bidder in the Chapter 11 bankruptcy of Lightsquared Inc. on Jan. 21 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to the Ad Hoc Secured Group of Lightsquared LP Lenders' (Ad Hoc Group) contention that the bidder was...

Financial Groups Say U.S. Supreme Court Should Not Hear Bankruptcy Transfer Case

WASHINGTON, D.C. - A group of insurance companies and financial institutions on Jan. 22 filed a brief in the U.S. Supreme Court arguing that it should not grant certiorari to an unsecured creditors committee that contends that 11 U.S. Code Section 546(e) permits it to recover transfers made by a debtor...

Bankruptcy Judge Denies Motion To Appoint Art Committee In Detroit Bankruptcy

DETROIT - The federal bankruptcy judge presiding over the Chapter 9 case of the City of Detroit on Jan. 22 issued a one-page order denying a motion by some of the city's creditors who sought the appointment of a committee to assess the value of the art collection at the Detroit Institute of Arts...

Trustee: 33 Brokers Entitled To $8.33M From MF Global For Unpaid Commissions

NEW YORK - The trustee in the liquidation of MF Global Inc. (MFGI), the customer investment affiliate of MF Global Holdings Ltd (MFGH), on Jan. 23 moved in the U.S. Bankruptcy Court for the Southern District of New York for an order allowing general creditor claims for 33 investment brokers for the total...

Split 3rd Circuit: Injury Claims Are Property Of Debtor's Bankruptcy Estate

PHILADELPHIA - A split panel of the Third Circuit U.S. Court of Appeals on Jan. 24 affirmed a ruling that the claims of personal injury plaintiffs against a debtor company belonged to the bankruptcy estate (In re: Emoral Inc., No. 13-1467, Chapter 11, 3rd Cir.).