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<title>LexisNexis&#174; Mealey's&#8482; Bankruptcy Legal News</title>

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<description>Headline Bankruptcy Legal News from LexisNexis&#174;</description>

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<copyright>Copyright 2012</copyright>
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<title>Divided U.S. Supreme Court: Debtors' Farm Sale Tax Liability Not Dischargeable</title>
<description>WASHINGTON, D.C. - A divided U.S. Supreme Court on May 14 ruled 5-4 that the federal income tax liability that resulted from a debtor's post-petition farm sale is not "incurred by the estate" for the purposes of 11 U.S. Code Section 503(b); therefore, it is neither collectible nor dischargeable in a Chapter 12 bankruptcy proceeding (Hall v. United States, No. 10-875, Chapter 12, U.S. Sup.). </description>
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<title>Prince Sports Files For Chapter 11 Bankruptcy, Cites Secured Debt Of $65M</title>
<description>WILMINGTON, Del. - Sporting goods company Prince Sports Inc. on May 1 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, citing $65 million in secured debt and $10.2 million in trade debt (In Re: Prince Sports Inc., No. 12-11439, Chapter 11, D. Del. Bkcy.). </description>
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<title>Bankrupt Prince Sports Seeks Licensing Deal In Excess Of $3 Million</title>
<description>WILMINGTON, Del. - Bankrupt tennis racquet manufacturer Prince Sports Inc. on May 10 moved in the U.S. Bankruptcy Court for the District of Delaware for an order approving a licensing agreement worth more than $3 million and seeking permission to sell various assets free and clear of all liens (In Re: Prince Sports Inc., No. 12-11439, Chapter 11, D. Del. Bkcy.). </description>
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<title>GMAC Holding Company Files For Chapter 11 Despite Listing $1B In Assets</title>
<description>NEW YORK - GMAC-RFC Holding Co. LLC filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York on May 14 despite listing more than $1 billion in assets (In Re: GMAC-RFC Holding Company LLC, No. 12-12029, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Lightsquared Files For Chapter 11 With $2.29B Debt, Seeks Compensation For Counsel</title>
<description>NEW YORK - Lightsquared Inc., a wireless networking business venture, on May 14 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York, listing $2.29 billion in liabilities and $4.48 billion in assets (In Re: Lightsquared Inc., No. 12-12080, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Power Company Files For Chapter 11 Bankruptcy, Citing Debt Of $325.7M</title>
<description>WILMINGTON, Del. - Bicent Holdings LLC, a company that owns and operates power plants in the United States, on May 1 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, citing debt of $325.7 million (In Re: Bicent Holdings LLC, No. 12-11304, Chapter 11, D. Del. Bkcy.). </description>
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<title>Shutterfly: Automatic Stay Should Remain; Kodak May Not Pursue Patent Case</title>
<description>NEW YORK - Online photo sharing company Shutterfly Inc. on May 9 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York opposing bankrupt Eastman Kodak Co.'s motion for relief from the automatic stay, which it seeks to pursue a patent case against Shutterfly, contending that the only conclusion is that Kodak's motion should be denied (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Kodak Seeks Stay Relief To Pursue Patent Action Worth $100M To Bankruptcy Estate</title>
<description>NEW YORK - Bankrupt Eastman Kodak Co. on April 30 moved in the U.S. Bankruptcy Court for the Southern District of New York to modify the automatic stay to permit it to pursue a patent infringement action, which it contends will result in $100 million being added to its bankruptcy estate (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Kodak Objects To Lifting Of Automatic Stay To Allow State Court Injury Lawsuit</title>
<description>NEW YORK - Bankrupt Eastman Kodak Co. on May 7 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to a creditor's motion seeking to lift the automatic stay to pursue a state court lawsuit, arguing that the creditor shows no cause why the stay should be lifted (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>ConAgra: Hostess Should Not Be Allowed To Withdraw From Pension Funds</title>
<description>NEW YORK - ConAgra Foods Inc. on May 7 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to bankrupt Hostess Brands Inc.'s motion to withdraw from contributing to pension funds for its employees, contending that doing so would have "serious" financial consequences for other companies that contribute to the funds (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Federal Bankruptcy Judge: Tribune May Award $45M In Bonuses If Goal Is Met</title>
<description>WILIMINGTON, Del. - The bankruptcy judge presiding over the Chapter 11 proceeding of Tribune Co. in the U.S. Bankruptcy Court for the District of Delaware on May 4 approved the company's motion to award as much as $45 million in bonuses if financial goals are achieved (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.). </description>
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<title>Bankruptcy Judge: Getty May Reject 814 Gas Station Leases, Effective Immediately</title>
<description>NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 case of Getty Petroleum Marketing Inc. (GPMI) on May 1 authorized GPMI to reject property leases for 814 of its gas stations, effective immediately (In Re: Getty Petroleum Marketing Inc., No. 11-15606, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Borders Liquidating Trustee Objects To Proofs Of Claim</title>
<description>NEW YORK - The trustee for the Borders Group Inc. (BGI) Liquidating Trust, which was formed in the wake of the Chapter 11 bankruptcy filing of former bookseller Borders Group Inc., on May 1 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York opposing all proofs of claim asserted by its creditors (In Re: BGI Inc. f/k/a Borders Group Inc., No. 11-10614, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Bankruptcy Court OKs $2.5M In Post-Petition Funds For Fashion House Betsey Johnson</title>
<description>NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of fashion house Betsey Johnson LLC on May 10 approved an additional $2.5 million in post-petition financing to be used strictly for payroll and working capital purposes (In Re: Betsey Johnson LLC, No. 12-11732, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Bankruptcy Judge Approves $300M In Financing For Bankrupt Hawker Beechcraft</title>
<description>NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Hawker Beechcraft Inc. in the U.S. Bankruptcy Court for the Southern District of New York on May 7 approved $300 million in post-petition financing (In Re: Hawker Beechcraft Inc., No. 12-11873, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Alabama Federal Judge: City Of Prichard's Chapter 9 Bankruptcy May Proceed</title>
<description>MONTGOMERY, Ala. - A federal judge in Alabama on May 7 reversed and remanded a decision by a bankruptcy judge and ruled that the City of Prichard, Ala., could file for Chapter 9 bankruptcy, based on a recent decision by the Alabama Supreme Court (In Re: City of Prichard, Alabama, No. 10-00622, Chapter 9, S.D. Ala.; 2012 U.S. Dist. LEXIS 64362). </description>
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<title>Jefferson County, Ala.: Creditor Lacks Standing For Automatic Stay Relief</title>
<description>BIRMINGHAM, Ala. - Bankrupt Jefferson County, Ala., on May 1 filed a brief in the U.S. Bankruptcy Court for the Northern District of Alabama objecting to a creditor's motion for relief from the automatic stay, contending that she lacked standing to seek stay relief in the first place (In Re: Jefferson County, Alabama, No. 11-05736, Chapter 9, N.D. Ala. Bkcy.). </description>
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<title>Harrisburg City Council Seeks Subpoena Of Former Chapter 9 Receiver</title>
<description>HARRISBURG, Pa. - The attorney representing the Harrisburg City Council in the city's disputed Chapter 9 bankruptcy proceeding on May 11 moved in the Pennsylvania Commonwealth Court for a subpoena of the former bankruptcy receiver and sought a stay on grounds that an investigation regarding his alleged conflicts of interest is needed (C. Alan Walker v. The City of Harrisburg, No. 569 MD 2011, Pa. Cmwlth.). </description>
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<title>Banker Assisted In Scheme Against Bankrupt Insurer, Bankruptcy Judge Rules</title>
<description>JACKSON, Miss. - An investment banker dishonestly assisted the president of a bankrupt insurer in the breach of the president's fiduciary duty to the insurer, a Mississippi bankruptcy judge held May 10, granting summary judgment to the insurer's liquidators on their dishonest-assistance claims regarding the alleged fraudulent transfer of the insurer's assets (In re: Condor Insurance Ltd. [in official liquidation]; Richard Fogerty and William Tacon in their capacity as the joint official liquidators of Condor Insurance Ltd. v. Condor Guaranty Inc., et al., No. 07-51045, Adv. Proc. No. 07-05049, S.D. Miss. Bkcy.; 2012 Bankr. LEXIS 2099). </description>
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<title>Judge: Fraud Action Against Refco Securities Insiders Belongs In Bankruptcy Court</title>
<description>NEW YORK - A federal judge in New York on May 9 ruled that an adversary action alleging fraud filed by the Chapter 11 trustee for Refco Securities LLC against former Refco insiders belongs in the U.S. Bankruptcy Court for the Southern District of New York (Mark S. Kirschner v. John D. Agoglia, et al., No. 11-8250, Chapter 11, S.D. N.Y.). </description>
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<title>Insurance Rights Can Be Assigned To Asbestos Trusts, 3rd Circuit Holds</title>
<description>PHILADELPHIA - The U.S. Bankruptcy Code trumps anti-assignment provisions in insurance policies, the Third Circuit U.S. Court of Appeals held May 1 (In re: Federal-Mogul Global Inc., et al., Nos. 09-2230 and 09-2231, 3rd Cir.; 2012 U.S. App. LEXIS 8814). </description>
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<title>DirecTV Tells Bankruptcy Court Capitol Infrastructure Contract Motion 'Senseless'</title>
<description>WILMINGTON, Del. - Satellite television provider DirecTV LLC on May 9 filed a brief in the U.S. Bankruptcy Court for the District of Delaware, objecting to bankrupt Capitol Infrastructure's motion seeking authorization to reject certain executory contracts, arguing that to do so would be "senseless" (In Re: Capitol Infrastructure LLC, No. 12-11362, Chapter 11, D. Del. Bkcy.). </description>
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<title>Global Aviation Seeks Bankruptcy Court Approval To Reject Equipment Leases</title>
<description>BROOKLYN, NY - Bankrupt Global Aviation Holdings Inc. on May 7 filed an omnibus motion in the U.S. Bankruptcy Court for the Eastern District of New York seeking authorization to reject certain equipment leases related to its airline business (In Re: Global Aviation Holdings Inc., No. 12-40783, Chapter 11, E.D. N.Y. Bkcy.). </description>
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<title>6th Circuit: Pilots Fail To Show Northwest Bankruptcy Deal Administered Improperly</title>
<description>CINCINNATI - A panel of the Sixth Circuit U.S. Court of Appeals on May 7 ruled that a district court properly determined that a group of pilots who sued their union alleging discrimination for not getting a full payout of benefits from a bankruptcy agreement with Northwest Airlines did not show that there had been a violation of the Age Discrimination Employment Act (ADEA) (Frederick N. Bondurant, et al. v. Air Line Pilots Association International, et al., No. 10-1904, Chapter 11, 6th Cir.; 2012 U.S. App. LEXIS 9215). </description>
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<title>6th Circuit: Bankruptcy Court Right To Deny Creditors' Claim; New Theory Improper</title>
<description>CINCINNATI - A panel of the Sixth Circuit U.S. Court of Appeals on May 8 ruled that a bankruptcy court properly denied a claim made by creditors who were not "clear" about their claim and on grounds that they improperly asserted a new claim in addition to their original case against the bankruptcy estate (Alison Gordon, et al. v. Official Committee of Unsecured Creditors [In Re: Royal Manor Management Inc.], No. 09-4432, Chapter 11, 6th Cir.; 2012 U.S. App. LEXIS 9451). </description>
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<title>3rd Circuit: Barton Doctrine Valid; Bankruptcy Court Right To Allow Lawsuit</title>
<description>PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on May 4 ruled that the Barton doctrine applied to Chapter 7 bankruptcy cases and held that a bankruptcy court properly determined that an interested party could proceed with a state court lawsuit against the trustee based on an agreement to sell certain properties that were part of the bankruptcy estate (In Re: VistaCare Group LLC, No. 11-2695, Chapter 7, 3rd Cir.; 2012 U.S. App. LEXIS 9147). </description>
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<title>4th Circuit Says Claim Was Time-Barred, Vacates Ruling On Damages</title>
<description>RICHMOND, Va. - In an unpublished opinion, the Fourth Circuit U.S. Court of Appeals on April 30 reversed a ruling, finding that the plaintiffs' West Virginia Uniform Fraudulent Transfer Act (WVUFTA) claim based on a corporation's drawdown on its line of credit and purchase of annuities was time-barred, and vacated the denial of a motion to increase a damage award (Joseph LaRosa, et al. v. Virgil D. LaRosa, et al., No. 11-1234, Chapter 7, 4th Cir.; 2012 U.S. App. LEXIS 8777). </description>
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<title>11th Circuit Reverses, Rules Lien On Debtor's Property Void</title>
<description>ATLANTA - A panel of the 11th Circuit U.S. Court of Appeals on May 11 reversed and remanded a case and concluded that a lien on a debtor's property was void (Lorraine McNeal v. GMAC Mortgage LLC [In Re: Lorraine McNeal], No. 11-11352, Chapter 7, 11th Cir.; 2012 U.S. App. LEXIS 9589). </description>
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<title>11th Circuit: Debtor's Action Against Employer Lacks Standing; Dismissal Affirmed</title>
<description>ATLANTA - A panel of the 11th Circuit U.S. Court of Appeals on May 2 ruled that a debtor's employment discrimination claim was properly dismissed because the only party with standing to pursue that action is the bankruptcy trustee (Zinnia I. Chen v. Siemens Energy Incorporated, No. 11-14372, Chapter 7, 11th Cir.; 2012 U.S. App. LEXIS 8936). </description>
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<title>11th Circuit Rules Creditors Failed To Demonstrate Debt Was Not Dischargeable</title>
<description>ATLANTA - A panel of the 11th Circuit U.S. Court of Appeals on May 4 ruled that a bankruptcy court properly concluded that a debtor's obligation to certain creditors was dischargeable because the creditors failed to show that it was nondischargeable under the Bankruptcy Code (Larry Gregory, et al. v. Ricky Leonard Beard [In Re: Ricky Leonard Beard], No. 11-14879, Chapter 7, 11th Cir.; 2012 U.S. App. LEXIS 9154). </description>
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<title>U.S. Supreme Court Considers Rights Of Secured Creditors In Chapter 11 Bankruptcy</title>
<description>WASHINGTON, D.C. - The U.S. Supreme Court on April 23 heard oral arguments in a dispute between a Chapter 11 debtor company and a creditor bank as to whether a secured creditor is permitted to credit-bid while the debtor company's collateral is being sold as part of the reorganization plan (RadLAX Gateway Hotel LLC v. Amalgamated Bank, No. 11-166, Chapter 11, U.S. Sup.). </description>
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<title>U.S. Supreme Court Refuses To Hear Idearc Shareholders' Objection To Bankruptcy</title>
<description>WASHINGTON, D.C. - The U.S. Supreme Court on April 30 denied certiorari to a class of shareholders in bankrupt Idearc Inc. who had objected to the confirmation of Idearc's Chapter 11 reorganization plan on grounds that its approval violated due process (Spencer Ad Hoc Equity Committee v. Idearc Inc. [In Re: Idearc Inc.], No. 11-874, Chapter 11, U.S. Sup.). </description>
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<title>Bankruptcy Judge: Stay Lifted; Insurers May Pay MF Global Defense Costs</title>
<description>NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of MF Global Holdings Ltd. (MFGH) on April 30 declined to grant a stay requested by a group of wealth management companies that objected to the bankruptcy court's decision to lift the automatic stay and permit certain insurers to pay the defense costs of current and former employees of MFGH (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>MF Global Trustees: Funds Moved Improperly; Liability Of Directors Being Probed</title>
<description>WASHINGTON, D.C. - The Chapter 11 bankruptcy trustee and the trustee for the Securities Investor Protection Act (SIPA) litigation involving MF Global Holdings Ltd. (MFGH) told a Senate committee on April 24 that the collapse of MFGH was the result of the improper transfer of funds but also said their respective investigations into the liability of the company's directors was just beginning (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>MF Global Trustee Wants To Subpoena All Parties With Information About MF Global</title>
<description>NEW YORK - The Chapter 11 trustee in the bankruptcy proceeding of MF Global Holdings Ltd. (MFGH) on April 19 moved in the U.S. Bankruptcy Court for the Southern District of New York for the authority to issue subpoenas for the production of documents to examine persons and entities he has determined possess information relevant to his investigation of MFGH and its affiliates (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Bankruptcy Judge: MF Global SIPA Trustee Distribution OK; Other Agreements Void</title>
<description>NEW YORK - The bankruptcy judge in the Securities Investor Protection Act (SIPA) litigation related to the Chapter 11 proceeding of MF Global Inc. (MFGI) on April 24 granted the SIPA trustee's claims distribution motion but ruled that agreements the SIPA trustee entered with certain claimants were void and had to be revised (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>MF Global SIPA Trustee To File Suit In United Kingdom, Seeking Recovery Of $700M</title>
<description>NEW YORK - The trustee in the Securities Investor Protection Act (SIPA) litigation that arose from the Chapter 11 bankruptcy filing of MF Global Holdings Ltd. (MFGH) in the U.S. Bankruptcy Court for the Southern District of New York on April 18 released a statement on his website indicating that he is pursuing litigation in the United Kingdom to recover roughly $700 million that belonged to investors who had their money in MFGH accounts before the firm's bankruptcy (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Bankruptcy Judge: Creditors May Not Appeal MF Global Ruling To 2nd Circuit</title>
<description>NEW YORK - The bankruptcy judge presiding over the Chapter 11 proceeding of MF Global Holdings Ltd. (MFGH) on April 25 ruled that creditors who sought a specific type of asset distribution from MFGH's estate could not appeal the opinion that denied their motion directly to the Second Circuit U.S. Court of Appeals on procedural grounds (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Bankruptcy Judge Approves $13.5M In Bonuses For Some Kodak Employees</title>
<description>NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of the Eastman Kodak Co. on April 30 approved the company's plan to pay certain employees $13.5 million in bonuses (In Re: Eastman Kodak Company, No. 12-20202, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>U.S. Trustee: Kodak's Motion To Pay $13.5M In Bonuses Fails Legal Standard</title>
<description>NEW YORK - The U.S. trustee in the Chapter 11 bankruptcy case of Eastman Kodak Co. on April 23 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to Kodak's motion seeking an order authorizing it to pay its employees $13.5 million in bonuses (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Kodak Seeks Committee To Address Retiree Benefits With Cost Parameters</title>
<description>NEW YORK - The bankrupt Eastman Kodak Co. on April 16 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, arguing that the appointment of a committee pursuant to 11 U.S. Code Section 1114 to deal with issues pertaining to retiree benefits is appropriate with cost parameters (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Employee Committee: AMR Not Allowed To Unilaterally Change Employment Terms</title>
<description>NEW YORK - The Ad Hoc Committee of passenger service agents in the Chapter 11 bankruptcy proceeding of AMR Corp., the parent company of American Airlines, on April 19 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, arguing that AMR should be restrained from making unilateral changes in the terms and conditions of employment (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>AMR Corp. Objects To Trustees' Motion To Include Items In Record Of Appeal</title>
<description>NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines, on April 25 moved in the U.S. Bankruptcy Court for the Southern District of New York to strike certain items designated by the collateral and indenture trustees to be included in their appeal of a bankruptcy court ruling that denied those trustees relief from the automatic stay (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Security Company That Works For White House, Other Agencies, Files For Bankruptcy</title>
<description>GREENBELT, Md. - A private company that provides security for the White House and other government agencies filed for Chapter 11 bankruptcy on April 18 in the U.S. Bankruptcy Court for the District of Maryland, citing liabilities of more than $12.9 million and assets of only $7.36 million (In Re: TW &amp; Company Inc., No. 12-17363, Chapter 11, D. Md. Bkcy.). </description>
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<title>Professional Basketball Team Sacramento Kings Files For Chapter 11 Bankruptcy</title>
<description>SACRAMENTO, Calif. - The Sacramento Kings professional basketball team of the National Basketball Association on April 24 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of California, listing debts between $1 million and $10 million (In Re: Kings Professional Basketball Club, No. 12-27935, Chapter 11, E.D. Calif. Bkcy.). </description>
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<title>Northern Mariana Islands Retirement Fund Files For Chapter 11 Bankruptcy</title>
<description>SAIPAN, Northern Mariana Islands - The Northern Mariana Islands Retirement Fund filed for Chapter 11 bankruptcy on April 17 in the U.S. Bankruptcy Court for the District of the Northern Mariana Islands, listing liabilities between $500 million and $1 billion (In Re: Northern Mariana Islands Retirement Fund, No. 12-00003, Chapter 11, D. N.M.I. Bkcy.). </description>
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<title>A&amp;P: Landlord's Claim Not Valid; Lease Has Been Rejected By Bankruptcy Court</title>
<description>NEW YORK - Bankrupt grocer the Great Atlantic &amp; Pacific Tea Co. (A&amp;P) on April 17 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to a motion filed by one of its creditors that seeks an order from the Bankruptcy Court that would authorize direct payment of expense claims (In Re: The Great Atlantic &amp; Pacific Tea Company, No. 10-24549, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Alabama High Court: Bonds Not Needed For Municipal Bankruptcy Under Chapter 9</title>
<description>MONTGOMERY, Ala. - The en banc Alabama Supreme Court ruled unanimously April 20 that municipalities are not required to have indebtedness in the form of refunding bonds or funding bonds as a condition to eligibility to file for Chapter 9 bankruptcy (City of Prichard v. Scott A. Balzer, No. 11-00950, Chapter 9, Ala. Sup.). </description>
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<title>Harrisburg Mayor Calls Bankruptcy Appeal 'Frivolous,' Seeks Sanctions</title>
<description>PHILADELPHIA - The mayor of the City of Harrisburg, Pa., on April 25 moved in the Third Circuit U.S. Court of Appeals for sanctions against the attorney who represents the Harrisburg City Council, arguing that the council's appeal of a bankruptcy court's dismissal of the Chapter 9 bankruptcy petition the council filed is frivolous (In Re: City of Harrisburg, No. 12-1541, Chapter 9, 3rd Cir.). </description>
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<title>Insurer Of Rothstein's Accounting Firm Opposes $10M Settlement Order</title>
<description>FORT LAUDERDALE, Fla. - The liability insurer for the accounting firm of convicted Ponzi scheme operator Scott Rothstein, whose law firm Rothstein Rosenfeldt Adler (RRA) filed for Chapter 11 bankruptcy, on April 17 moved in the U.S. Bankruptcy Court for the Southern District of Florida for a new trial regarding the Bankruptcy Court's ruling that the insurer pay $10 million to settle claims against the accounting firm (In Re: Rothstein Rosenfeldt Adler, No. 09-34791, Chapter 11, S.D. Fla. Bkcy.). </description>
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<title>Dynegy: Creditor Lacks Ground To Compel Testimony In Chapter 11 Bankruptcy</title>
<description>NEW YORK - Bankrupt energy company Dynegy Holdings LLC on April 27 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, objecting to a creditor's motion seeking to compel testimony and the production of documents from Dynegy and two of its principals (In Re: Dynegy Holdings LLC, No. 11-38111, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Unsecured Creditors Committee: Getty Must Reject Lease For Gas Station Properties</title>
<description>NEW YORK - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy case of Getty Petroleum Marketing Inc. (GPMI) on April 20 filed a brief arguing that the U.S. Bankruptcy Court for the Southern District of New York should issue an order rejecting the master lease between GPMI and the entity that manages the debtor's properties (In Re: Getty Petroleum Marketing Inc., No. 11-15606, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Broadcasting Company Seeks Approval Of $11M Stalking Horse Deal With Hotwire</title>
<description>WILMINGTON, Del. - Bankrupt broadcasting company Capitol Infrastructure LLC on April 27 moved in the U.S. Bankruptcy Court for the District of Delaware for approval of an $11 million Stalking Horse agreement for the sale of the company (In Re: Capitol Infrastructure LLC, No. 12-11362, Chapter 11, D. Del. Bkcy.). </description>
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<title>Fashion House Betsey Johnson Receives $2.5M Financing For Chapter 11 Bankruptcy</title>
<description>NEW YORK - A federal bankruptcy judge in the U.S. Bankruptcy Court for the Southern District of New York on April 30 approved $2.5 million in debtor-in-possession (DIP) financing for bankrupt fashion house Betsey Johnson LLC as it attempts to restructure debts listed between $10 million and $50 million (In Re: Betsey Johnson LLC, No. 12-11732, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Syms Equity Holders Committee: Examiner For D&amp;O Claims Not Needed; Power Limited</title>
<description>WILMINGTON, Del. - The Official Committee of Equity Security Holders in bankrupt Syms Corp. on April 25 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to Syms' motion for appointment of an examiner to investigate potential estate causes of action related to the company's directors and officers, contending that the examiner's report will be of no value (In Re: Filene's Basement LLC, No. 11-13511, Chapter 11, D. Del. Bkcy.). </description>
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<title>6th Circuit BAP Rules Sanctions Proper For Serial Bankruptcy Filer</title>
<description>CINCINNATI - A U.S. Bankruptcy Appellate Panel (BAP) for the Sixth Circuit on April 18 ruled that a debtor's Chapter 11 bankruptcy petition was properly dismissed and that she was appropriately sanctioned for being a serial bankruptcy filer who did not act in good faith (In Re: Martha Lee, No. 11-8053, Chapter 11, 6th Cir. BAP; 2012 Bank. LEXIS 1682). </description>
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<title>New Stream Financial Amends Reorganization Plan Based On Creditor Claims Deal</title>
<description>WILMINGTON, Del. - Bankrupt financial group New Stream Secured Capital on April 19 filed its brief in the U.S. Bankruptcy Court for the District of Delaware seeking confirmation of its second amended plan of reorganization, contending that it meets all requirements of the Bankruptcy Code (In Re: New Stream Secured Capital Inc., No. 11-10753, Chapter 11, D. Del. Bkcy.). </description>
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<title>3rd Circuit: Settlement Was Not Reached In Error In Bankruptcy Case</title>
<description>PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on April 17 affirmed a bankruptcy court's ruling that approved a settlement between a company's bankruptcy estate and a party against whom the estate had a claim, ruling that no error was committed in reaching the agreement (In Re: Summit Metals Inc., No. 11-2112, Chapter 11, 3rd Cir.; 2012 U.S. App. LEXIS 7640). </description>
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<title>7th Circuit: Debtor Cannot Discharge Damages Award Owed To Former Wife</title>
<description>CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on April 18 affirmed a ruling that a man convicted of attempting to murder his former wife could not discharge the punitive damages debt he owes her in his Chapter 7 bankruptcy (Teri Jendusa-Nicolai v. David M. Larsen, No. 11-1256, Chapter 7, 7th Cir.; 2012 U.S. App. LEXIS 7793). </description>
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<title>6th Circuit: Jurisdiction Lacking; Appeal Denied; Order At Issue Not Final</title>
<description>CINCINNATI - A panel of the Sixth Circuit U.S. Court of Appeals on April 25 ruled that a bankruptcy court order denying a creditor's attempt to transfer his adversary action to the district court was not a final order; therefore, the appellate court lacked jurisdiction and the appeal was dismissed (Demetrious Yadirf Smith v. Bluegrass Mortgage Services Inc., No. 10-5785, Chapter 7, 6th Cir.; 2012 U.S. App. LEXIS 8391). </description>
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<title>9th Circuit: Exemption Denied For Homestead; Debtor Not Owner Of Property</title>
<description>SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on April 23 ruled that a bankruptcy court properly determined that a debtor was not entitled to claim a homestead exemption because she was not actually the rightful owner of the property in question (Ramona G. Fontaine v. Robert L. Conn [In Re: Ramona G. Fontaine], No. 10-609050, Chapter 7, 9th Cir.; 2012 U.S. App. LEXIS 8146). </description>
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<title>9th Circuit Reverses; Rent Proceeds Do Not Belong In Bankruptcy Estate</title>
<description>SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on April 23 partially reversed and remanded a bankruptcy court's ruling and concluded that rental proceeds from a property owned by a debtor's husband were not part of the bankruptcy estate (John M. Wolfe v. Myrna Jacobson [In Re: Myrna Jacobson], No. 10-60040, Chapter 7, 9th Cir.; 2012 U.S. App. LEXIS 8103). </description>
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<title>6th Circuit BAP: Debtor Must Pay Creditor Under Contractual Agreement</title>
<description>ST. LOUIS - A U.S. Bankruptcy Appellate Panel (BAP) for the Eighth Circuit on April 26 affirmed a bankruptcy court's ruling and held that a debtor owed a creditor a payment pertaining to a contractual agreement that would not be avoided (Steven Christopher Potts v. Gary Guilford [In Re: Steven Christopher Potts], No. 11-6057, Chapter 12, 8th Cir. BAP; 2012 Bankr. LEXIS 1828). </description>
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<title>10th Circuit Rules Debtor's Retirement Funds Exempt From Bankruptcy Estate</title>
<description>DENVER - The 10th Circuit U.S. Court of Appeals on April 24 ruled that a debtor could claim certain funds in a Keogh retirement plan as exempt from his bankruptcy estate (David L. Gladwell v. Douglas James Reinhart [In Re: Douglas James Reinhart], No. 09-4028, Chapter 7, 10th Cir.; 2012 U.S. App. LEXIS 8251). </description>
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<title>Gingrich Group Files For Bankruptcy, Lists Debts Between $1M And $10M</title>
<description>ATLANTA - A bankruptcy judge in the U.S. Bankruptcy Court for the Northern District of Georgia on April 5 issued a deficiency notice and gave the Gingrich Group LLC, which operated a health care think tank founded by Republican presidential candidate Newt Gingrich, 14 days to file a statement of financial affairs - and other documents - or risk dismissal of its Chapter 7 bankruptcy petition (In Re: The Gingrich Group LLC d/b/a Center for Health Transformation, No. 12-59065, Chapter 7, N.D. Ga. Bkcy.). </description>
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<title>Ambassador Media Group Files For Bankruptcy, Cites Debts More Than $10.3M</title>
<description>NEW YORK - Ambassador Media Group LLC on April 6 filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York, citing debts more than $10.3 million and assets of only $4.59 million (In Re: Ambassador Media Group LLC d/b/a Ambassador Yellow Pages, No. 12-11445, Chapter 7, S.D. N.Y. Bkcy.). </description>
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<title>Reddy Ice Files For Chapter 11, Cites Debts of $530M, Seeks Money To Purchase Rival</title>
<description>DALLAS - Reddy Ice Holdings Inc., the largest manufacturer and distributor of packaged ice in the United States, filed for Chapter 11 bankruptcy April 12 in the U.S. Bankruptcy Court for the Northern District of Texas, listing liabilities of more than $530 million and assets of $434 million (In Re: Reddy Ice Holdings Inc., No. 12-32349, Chapter 11, N.D. Texas Bkcy.). </description>
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<title>Direct Marketer Velo Holdings Files For Chapter 11 Bankruptcy With Debts Of $713M</title>
<description>NEW YORK - Velo Holdings Inc., the parent company of direct marketing services company V2V Holdings LLC, on April 2 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York, citing $713 million in liabilities and only $350 million in assets (In Re: Velo Holdings Inc., No. 12-11384, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Bankruptcy Judge: Insurance Carriers May Pay Defense Costs In MF Global Case</title>
<description>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 money from insurance policies (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>MF Global Trustee: Wealth Managers Cannot Appeal Administration Of Estate</title>
<description>NEW YORK - The Chapter 11 trustee in the bankruptcy of MF Global Holdings Ltd. (MFGH) on April 13 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, objecting to a motion by three wealth management firms seeking certification of their appeal of the Bankruptcy Court's order that denied their motion to have MFGH's estate administered pursuant to 11 U.S. Code Section 761-767 (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Bankruptcy Judge Approves MFGI SIPA Trustee's Bulk Asset Sale Order</title>
<description>NEW YORK - The bankruptcy judge presiding over the securities lawsuit of MF Global Inc. (MFGI), which is affiliated with the Chapter 11 bankruptcy proceeding of parent company MF Global Holdings Ltd. (MFGH) in the U.S. Bankruptcy Court for the Southern District of New York, on April 6 approved an asset sale agreement under 11 U.S. Code Section 363 pertaining to investor accounts (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.; 2012 Bankr. LEXIS 1490). </description>
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<title>AMR Modifies Stay; Couple's Injury Claim May Proceed Against American Airlines</title>
<description>NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines, on April 12 agreed to modify the automatic stay in its bankruptcy proceeding to allow a couple to pursue its personal injury lawsuit against the company (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>AMR Collective Bargaining Agreement Should Not Be Rejected, Pilots Group Says</title>
<description>NEW YORK - Pilots for the former Trans World Airlines (TWA) on April 3 filed a brief in the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines, arguing that the U.S. Bankruptcy Court for the Southern District of New York should not reject the collective bargaining agreements between the airline and its pilots (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Kodak: Shareholders Have Not Shown Equity Committee Is Warranted Or Needed</title>
<description>NEW YORK - Bankrupt Eastman Kodak Co. on April 10 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to a motion by the company's shareholders that sought the appointment of an official committee of equity security holders pursuant to 11 U.S. Code Section 1102(a) (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Kodak Seeks Appointment Of Committee To Help Adjust Retiree Benefits</title>
<description>NEW YORK - Bankruptcy Eastman Kodak Co. on April 4 moved in the U.S. Bankruptcy Court for the Southern District of New York seeking an order directing the appointment of a committee of retired employees pursuant to 11 U.S. Code Section 1114(d) (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>Teamsters Offer Rival Plan In Hostess Chapter 11 Case, Call For Equal Sacrifice</title>
<description>NEW YORK - The International Brotherhood of Teamsters on April 15 proposed a rival restructuring plan in the Chapter 11 bankruptcy of Hostess Brands Inc., calling for equal sacrifice from workers and management rather than the abandonment of the company's collective bargaining agreement with unionized workers (In Re: Hostess Brands Inc., No. 12-22052, S.D. N.Y. Bkcy.). </description>
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<title>Hostess, Union Agree To Limited Stay Relief For Pension Fund Adjustments</title>
<description>NEW YORK - Bankrupt baking company Hostess Brands Inc. on April 6 filed a stipulation in the U.S. Bankruptcy Court for the Southern District of New York granting limited relief from the automatic stay to allow the pension fund belonging to its bakery employees' union to serve notice of accruals of pension credits to participants covered by the collective bargaining agreement (CBA) between Hostess and the union (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.). </description>
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<title>DirecTV Files Complaint With FCC Over Bankrupt Tribune's Alleged Contract Failure</title>
<description>WASHINGTON, D.C - DirecTV LLC filed a complaint with the Federal Communications Commission on April 2, contending that bankrupt Tribune Co. is reneging on its broadcast carriage agreement between the two companies, resulting in millions of DirecTV customers losing access to programming Tribune said it would provide (DirecTV LLC v. Tribune Company, No. N/A, FCC). </description>
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<title>Tribune's 4th Amended Plan Of Reorganization Addresses Allocation To Noteholders</title>
<description>WILMINGTON, Del. - Bankrupt media organization Tribune Co. on April 15 filed a supplemental brief in the U.S. Bankruptcy Court for the District of Delaware supporting a fourth amended plan of reorganization, contending that issues regarding the allocation of funds to certain Tribune investors, namely the holders of so-called PHONES Notes, have been remedied (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.). </description>
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<title>Bankruptcy Judge Rules Equal Distribution Of Tribune's Assets Not Discriminatory</title>
<description>WILMINGTON, Del. - A bankruptcy judge in the U.S. Bankruptcy Court for the District of Delaware on April 9 issued an opinion detailing some of the allocation of assets in the bankruptcy proceeding of Tribune Co., ruling that equal treatment of the debt held by different groups that hold debentures in the company did not amount to unfair discrimination under 11 U.S. Code Section 1129 (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.). </description>
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<title>Dodgers Amend Reorganization Plan Based On Proposed $2B Purchase By Guggenheim</title>
<description>WILMINGTON, Del. - The bankrupt Los Angeles Dodgers on April 6 filed a second amended reorganization plan in the U.S. Bankruptcy Court for the District of Delaware that relies on the sale of the team to Guggenheim Baseball Management LP for $2 billion to pay all claims and liens against the team in full (In Re: Los Angeles Dodgers LLC, No. 11-12010, Chapter 11, D. Del. Bkcy.). </description>
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<title>Fox Sports Seeks Protection Of Dodgers Broadcast Rights, Objects To Sale Of Team</title>
<description>WILMINGTON, Del. - Fox Sports Net 2 LLC filed an objection to the amended reorganization plan for the bankrupt Los Angeles Dodgers on April 10, arguing that the proposed plan, which hinges on the sale of the team for $2 billion to an investment group, will impair the network's rights under the existing telecast agreement (In Re: Los Angeles Dodgers LLC, No. 11-12010, Chapter 11, D. Del. Bkcy.). </description>
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<title>Judge Orders Accounting Firm's Insurer To Pay $10M To Bankruptcy Estate</title>
<description>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 the bankruptcy estate (In Re: Rothstein Rosenfeldt Adler, No. 09-34791, Chapter 11, S.D. Fla. Bkcy.). </description>
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<title>3rd Circuit Refuses To Deport Jamaican-Born U.S. Citizen For Bankruptcy Fraud</title>
<description>PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on April 16 vacated an order from the U.S. Bureau of Immigration Affairs (BIA) that called for the deportation of a Jamaican-born U.S. citizen who had committed bankruptcy fraud, holding that the loss the BIA premised its removal order upon did not actually occur (Nigel St. Ivan Singh v. Attorney General of the United States, No. 11-1988, Chapter 11, 3rd Cir.; 2012 U.S. App. LEXIS 7544). </description>
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<title>Insurer: Stay In Jefferson County Bankruptcy Case Not Applicable To Fraud Action</title>
<description>BIRMINGHAM, Ala. - One of the municipal insurers in the Chapter 9 bankruptcy proceeding of Jefferson County, Ala., on April 11 filed a brief in the U.S. Bankruptcy Court for the Northern District of Alabama, arguing that the automatic stay does not apply to a related action pending in New York state court (In Re: Jefferson County, Alabama, No. 11-5736, Chapter 9, N.D. Ala. Bkcy.). </description>
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<title>4th Circuit Reverses Award; Deal With Unions Does Not Favor Debtor Company</title>
<description>RICHMOND, Va. - A panel of the Fourth Circuit U.S. Court of Appeals on April 5 reversed and remanded a district court's ruling that had affirmed an arbitrators' award to a debtor company after two unions sued the company seeking payment for vacation benefits accrued prior to the plant's closing. The Fourth Circuit said that the collective bargaining agreement (CBA) between the parties did not address whether the benefits survived following the closing of the plant (Intermet Corporation v. United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, No. 11-1766, Chapter 11, 4th Cir; 2012 U.S. App. LEXIS 7001). </description>
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<title>Bankrupt Land America Proposes New $37.85M Deal With Insurers</title>
<description>RICHMOND, Va. - Bankrupt Land America Financial Group Inc. on March 30 moved in the U.S. Bankruptcy Court for the Eastern District of Virginia for approval of a modified settlement agreement of $37.85 million with Certain Underwriters of Lloyd's, London, contending that initial objections to the deal had been addressed (In Re: Land America Financial Group Inc., No. 08-35994, Chapter 11, E.D. Va. Bkcy.). </description>
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<title>Attorneys: Bankrupt Company's Founder May Not File Separate Conspiracy Action</title>
<description>BUTTE, Mont. - The attorneys appointed by the U.S. Bankruptcy Court for the District of Montana to represent the bankruptcy attorneys in the Chapter 11 bankruptcy proceeding of the Yellowstone Mountain Club LLC (YMC) on April 11 filed a brief in the Bankruptcy Court opposing the former president of YMC's motion for leave to file a lawsuit in district court alleging a conspiracy against him by the bankruptcy attorneys (In Re: Yellowstone Mountain Club LLC, No. 08-61570, D. Mont. Bkcy.). </description>
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<title>Bankruptcy Judge Awards $314M To Liquidators Of Bankrupt Insurer</title>
<description>JACKSON, Miss. - A bankruptcy judge in Mississippi on April 11 granted summary judgment to the liquidators of a bankrupt insurer on their dishonest-assistance claims regarding the alleged fraudulent transfer of the insurer's assets and awarded $314,313,191 to the liquidators (In re: Condor Insurance Ltd. [in official liquidation]; Richard Fogerty and William Tacon in their capacity as the joint official liquidators of Condor Insurance Ltd. v. Condor Guaranty Inc., et al., No. 07-51045, Adv. Proc. No. 07-05049, S.D. Miss. Bkcy.; 2012 Bankr. LEXIS 931). </description>
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<title>7th Circuit Vacates Dismissal Of Suit Against Ponzi Victim's Auditor</title>
<description>CHICAGO - The Seventh Circuit U.S. Court of Appeals on April 3 vacated a district court's dismissal of a suit filed by the bankruptcy trustee of a Ponzi scheme victim mutual funds group against the group's auditor, ruling that the claim against the auditor is sufficient (Ronald R. Peterson, as Chapter 7 trustee for the estates of Lancelot Investors Fund, L.P., et al., v. McGladrey &amp; Pullen, LLP, et al., No.10-3770, 7th Cir.; 2012 U.S. App. LEXIS 6608). </description>
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<title>High Court Will Not Address Whether Asset Purchase Agreement Can Amend ERISA Plan</title>
<description>WASHINGTON, D.C. - The U.S. Supreme Court of March 19 declined to review a Fifth Circuit U.S. Court of Appeals' Oct. 13 ruling that a retiree benefits-related provision included in an asset purchase agreement constituted a valid plan amendment (Sterling Chemical Inc., et al. v. Robert E. Evans, No. 10-1001, U.S. Sup.). </description>
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<title>5th Circuit: Debtor Breached Deal; Creditors May Recoup Money For Royalties</title>
<description>NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on April 9 affirmed a bankruptcy court's ruling that allowed a creditor to recoup a monetary judgment for music royalties from a debtor on grounds that he had breached a settlement agreement before filing for bankruptcy (Harold F. Eggers Jr. v. John Townes Van Zandt II [In Re: Harold F. Eggers Jr.], No. 11-50217, Chapter 13, 5th Cir.; 2012 U.S. App. LEXIS 7089). </description>
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<title>8th Circuit: Debtor Failed To Show Properties Qualified For Homestead Exemption</title>
<description>ST. LOUIS - A panel of the Eighth Circuit U.S. Court of Appeals on April 9 affirmed a ruling that held that a debtor failed to show that numerous properties she owned qualified for the homestead exemption in the Bankruptcy Code (Jody May Walters v. Bank of the West [In Re: Jody May Walters], No. 11-2449, Chapter 7, 8th Cir.; 2012 U.S. App. LEXIS 7071). </description>
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<title>5th Circuit: Bankruptcy Court Did Not Abuse Discretion; Dismissal Was Proper</title>
<description>NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on April 16 ruled that a bankruptcy court did not abuse its discretion in dismissing a debtor's case after he failed to make payments on the approved Chapter 13 plan (Joel Donald Mallory Jr. v. William E. Heitkamp [In the Matter of Joel Donald Mallory Jr.], No. 11-20192, Chapter 13, 5th Cir.; 2012 U.S. App. LEXIS 7575). </description>
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