LexisNexis® Legal Newsroom
3rd Circuit Upholds Conversion Of Skinner Bankruptcy To Chapter 7

PHILADELPHIA - (Mealey's) A bankruptcy court has the authority to determine at the disclosure statement stage that a Chapter 11 reorganization plan is unconfirmable without first holding a confirmation hearing if it is obvious that the plan is patently unconfirmable, the Third Circuit U.S. Court...

SAAB Sues General Motors For $3 Billion, Says Interference Resulted In Chapter 11 Bankruptcy

DETRIOT - (Mealey's) SAAB Automobiles AB and its Dutch owner, Spyker NV, on Aug. 6 sued General Motors Co. in the U.S. District Court for the Eastern District of Michigan, seeking $3 billion in damages for allegations that GM took actions that "had the direct and intended" result of driving...

Gibraltar Pays $65 Million To Settle Rothstein Ponzi Claims

FORT LAUDERDALE, Fla. - (Mealey's) The trustee for a bankrupt feeder fund and the trustee of convicted Ponzi schemer Scott W. Rothstein's law firm have agreed to an amended $65 million settlement with Gibraltar Private Bank and Trust Co., a bank Rothstein is alleged to have used in his scam,...

Bankruptcy's Unique Characteristics Prompt Special Guidance From ABA Working Group

Earlier this year the ABA ESI in Bankruptcy Working Group issued interim guidelines on the "scope and timing" of a party's obligation to preserve ESI in bankruptcy cases. The group comprises both sitting and former judges, bankruptcy and litigation attorneys, law professors and a representative...

Delaware Federal Judge Grants Debtor Access To Asbestos Claimant Information

WILMINGTON, Del. - (Mealey's) A Delaware federal judge on March 1 ruled that Chapter 11 debtor Garlock Sealing Technologies LLC can obtain documents filed by asbestos claimants' attorneys in nine other asbestos-related bankruptcy cases, finding that a bankruptcy judge erred and abused her discretion...

MF Global SIPA Trustee, JPMorgan Reach Settlement That Will Return $300 Million To Commodities Customers

NEW YORK - (Mealey's) The Securities Investor Protection Act (SIPA) trustee in the MF Global Inc. (MFGI) bankruptcy on March 19 announced that he had reached a settlement agreement with JP Morgan Chase Bank N.A. that will return $300 million to commodities customers who had money invested with MFGI...

Bankruptcy Judge Sets Specialty Products' Asbestos Liability At $1.16 Billion

WILMINGTON, Del. -- (Mealey's) Former joint compound producer Bondex International Inc. and its related holding company Specialty Products Holding Corp. face an estimated $1.16 billion in pending and future asbestos personal injury claims, about double what the companies estimate their asbestos liabilities...

3rd Circuit Rejects Garlock’s Appeal Of Grace’s Plan For Lack Of Injury, Standing

PHILADELPHIA — (Mealey’s) Chapter 11 debtor Garlock Sealing Technologies Inc. does not have standing to object to fellow debtor W.R. Grace & Co.’s confirmed plan of reorganization because Garlock cannot show that it will be harmed by the plan, the Third Circuit U.S. Court of Appeals...

U.S. Government, 6 States Seek Injunction Blocking Merger of American, US Airways

WASHINGTON, D.C. — (Mealey’s) The U.S. Department of Justice on Aug. 13 filed a lawsuit against US Airways Group Inc. and AMR Corp., the parent company of American Airlines Inc., seeking a full injunction to prevent the proposed merger of the two airlines on grounds that it violates federal...

Garlock Sues Law Firms, Alleging Fraud Over Asbestos Claims

CHARLOTTE, N.C. — (Mealey’s) Chapter 11 debtor Garlock Sealing Technologies LLC filed four adversary complaints Jan. 9 in a North Carolina federal bankruptcy court against several law firms and attorneys, alleging conspiracy, fraud and violations of the Racketeer Influenced and Corrupt Organizations...

Bankruptcy Judge: Plaintiffs, Lawyers Covered Up Evidence In Garlock Mesothelioma Cases

CHARLOTTE, N.C. —(Mealey’s) Chapter 11 debtor Garlock Sealing Technologies LLC’s total estimated liability for present and future mesothelioma claims is only $125 million, not $1.2 billion as asbestos personal injury claimants argued, because Garlock’s history of settling mesothelioma...

Supreme Court To Decide If Bankruptcy Lawyers Can Get Fees For Pursuing Bonus Fees

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court on Oct. 2 agreed to decide whether the U.S. Bankruptcy Code gives bankruptcy courts discretion to award lawyers their fees for successfully defending applications for enhanced attorney fees ( Baker Botts, LLP, et al. v. ASARCO, LLC , No...

Payment Of Attorneys For Defending Fee Requests Debated In Supreme Court

WASHINGTON, D.C. — (Mealey’s) There is no basis in the law for categorically denying payment to lawyers for successfully defending their fee applications in bankruptcy cases, attorney Aaron M. Streett of Texas law firm Baker Botts LLP told the U.S. Supreme Court Feb. 25 in a case in which...

Supreme Court: Bankruptcy Lawyers Not Entitled To Fees For Defending Fee Requests

WASHINGTON, D.C. — (Mealey’s) The U.S. Bankruptcy Code does not allow bankruptcy courts to award fees to attorneys for successfully defending their fee applications, the U.S. Supreme Court held June 15 in a 6-3 decision, affirming a Fifth Circuit U.S. Court of Appeals ruling denying a $5...