LexisNexis® Legal Newsroom
    Bankrupt WP Steel, EPA Agree: Agency's Claims Are Valued At More Than $19.88M

    WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 11 proceeding of WP Steel Venture LLC on Aug. 2 approved an agreement under which the environmental claims held by the U.S. Environmental Protection Agency will be allowed against the bankruptcy estate as general unsecured claims valued at more than $19.88 million (In Re: WP Steel Venture LLC, No. 12-11661, Chapter 11, D. Del. Bkcy.).

    Detroit: Tax Appeals Should Be Allowed During Ordinary Course Of Bankruptcy

    DETROIT - The bankrupt City of Detroit on Aug. 2 moved for relief from the automatic stay in order to permit appeals of city property tax assessments, which it claims is appropriate on grounds that the equities weigh in favor of it and because it will cost the city less in the long run (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).

    Garlock Bankruptcy Judge Denies News Site's Bid To Open Estimation Proceeding

    CHARLOTTE, N.C. - The "significant" privacy rights of asbestos claimants and their attorneys outweigh the public's interest in certain evidence deemed confidential in the asbestos liability estimation trial for Chapter 11 debtor Garlock Sealing Technologies LLC, a North Carolina federal bankruptcy judge ruled July 31 in denying a bid by a news organization to open the entire estimation proceeding to the public (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).

    Massachusetts Federal Judge Dismisses 1 Defendant From Copyright Case

    BOSTON - Allegations that several defendants reproduced, displayed, advertised and distributed a plaintiff's copyrighted works after ousting the plaintiff from their organization will largely proceed, a Massachusetts federal judge ruled July 25 (Smith Vil v. Jacky Poteau, et al., No. 11-11622, D. Mass.).

    9th Circuit Reverses, Remands; Creditor Couple Not Allowed To File Adversary Case

    SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on July 25 vacated and remanded a bankruptcy case, ruling that a creditor couple should not have been permitted to file an adversary complaint objecting to the discharge of the bankruptcy because the couple failed to explain why they were unable to meet the deadline for filing the complaint in the first place (Hank Willms, et al. v. Rowe Sanderson III, No. 12-35135, Chapter 7, 9th Cir.; 2013 U.S. App. LEXIS 15187).

    Bankruptcy Judge Nixes Garlock Appeal Of Pittsburgh Corning's Plan Confirmation

    PITTSBURGH - An appeal of confirmation of Pittsburgh Corning Corp.'s Chapter 11 plan of reorganization by fellow asbestos bankruptcy debtor Garlock Sealing Technologies LLC was rejected July 23 by a Pennsylvania federal bankruptcy judge, who found the appeal to be a "nullity" pending a motion by two insurers to reconsider the plan confirmation (In re: Pittsburgh Corning Corporation, No. 00-22876, W.D. Pa. Bkcy.).

    Operator Of Tunnel Between Detroit And Windsor, Ontario, Files For Bankruptcy

    NEW YORK - The private company that owns and operates the tunnel between the City of Detroit and Windsor, Ontario - as well as other toll roads in the United States - filed a prepackaged Chapter 11 bankruptcy on July 25 under which the debtor would emerge from bankruptcy under the ownership of Syncora Holdings Inc. with no outstanding debt (In Re: American Rodes LLC, No. 13-12412, Chapter 11, S.D. N.Y. Bkcy.).

    Bankruptcy Judge Stays All Litigation Pending Against City Of Detroit

    DETROIT - The federal bankruptcy judge presiding over the Chapter 9 case of the City of Detroit on July 25 granted the city's request and ordered all lawsuits pending against the city stayed (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).

    'Girls Gone Wild' Debtors Owe More Than $1.55M From Underlying Case, Class Says

    LOS ANGELES - A class that won a judgment worth more than $1.55 million against now-bankrupt GGW Brands LLC, the producer of adult videos that carry the name "Girls Gone Wild," on July 24 filed an adversary complaint in bankruptcy court seeking payment of the award, which the class has never been able to collect (Judgment Creditors In 'In Re: Girls Gone Wild Class Action Litigation' v. GGW Brands LLC, et al. $(In Re: GGW Brands LLC, et al.$), No. 13-15130, Adv. No. 13-01746, Chapter 11, C.D. Calif. Bkcy.).

    Detroit Seeks Termination Of Contracts With Lenders To Save $1.45 Billion

    DETROIT - The bankrupt City of Detroit on July 24 moved for bankruptcy court authorization to terminate an agreement with lenders related to what are called swap obligations in an attempt to save $1.45 billion (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).

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

    PHILADELPHIA - 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 held July 24 (In re: W.R. Grace & Co., et al. $(Garlock Sealing Technologies LLC, et al. v. W.R. Grace & Co., et al.$), No. 12-2807, 3rd Cir.).

    Corzine, MF Global Executives: Trustee Fails To State Claim; Bad Faith Not Shown

    NEW YORK - Jon S. Corzine, former CEO of bankrupt MF Global Holdings (MFGH) Ltd., and his co-defendants on July 22 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that the lawsuit filed against them by the trustee should be dismissed because the complaint fails to state a claim (Louis J. Freeh v. Jon S. Corzine, et al. $(In Re: MF Global Holdings Ltd., Adv. No. 13-01333, No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).

    Garlock Loses Bid To Unseal Evidence Of Trust Claims, Asbestos Exposures

    CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on July 23 denied a request by Chapter 11 debtor Garlock Sealing Technologies LLC to make public evidentiary documents that were filed under seal for Garlock's asbestos liability estimation trial, including evidence that Garlock says shows that some claimants lied about their exposures to asbestos products to boost their judgments or settlements against Garlock in the tort system (In re: Garlock Sealing Technologies, LLC, No. 10-31607, W.D. N.C. Bkcy.).

    Revstone Affiliate Metavation Seeks OK To Sell Assets For More Than $25 Million

    WILMINGTON, Del. - Metavation LLC, an affiliate of bankrupt Revstone Industries LLC, on July 23 moved in the U.S. Bankruptcy Court for the District of Delaware for approval to enter into an asset purchase agreement in which it would sell substantially all of its assets for more than $25 million (In Re: Metavation LLC, No. 13-11831, Chapter 11, D. Del. Bkcy.).

    Bankrupt MSR Hotels Seeks OK For Deal On Allocation Of Trademark Sale Proceeds

    NEW YORK - Bankrupt Real Estate Investment Trust (REIT) MSR Hotels & Resorts Inc. on July 22 moved for bankruptcy court approval of a stipulation between itself and two other parties pertaining to the allocation of proceeds from the sale of intellectual property assets (In Re: MSR Hotels & Resorts Inc., No. 13-11512, Chapter 11, S.D. N.Y. Bkcy.).

    Retirement Plans: Detroit's Bankruptcy Not Valid; Stay Extension Inapplicable

    DETROIT - Two groups representing the retirement plans for employees of the bankrupt City of Detroit on July 23 filed a brief arguing that the Michigan governor's authorization of the bankruptcy should be treated as if it never occurred (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).

    AMR Committee: $424M In Tax Claims Should Be Disallowed, Expunged

    NEW YORK - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy case of AMR Corp., the parent company of American Airlines Inc., on July 22 filed a brief objecting to the proof of claim submitted by some aircraft finance parties on account of tax indemnity agreements (TIA claims) that are valued at $424 million, arguing that the claims should be disallowed (In Re: AMR Corp., No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

    Union: Detroit's Desire To Extend Automatic Stay Is 'Improper, Unprecedented'

    DETROIT - Unions opposing the Chapter 9 bankruptcy filing of the City of Detroit on July 22 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan objecting to the city's motion seeking application of the automatic stay to prevent lawsuits against the city while its bankruptcy proceeds (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).

    Tribune: Los Angeles County Agency May Not Collect Pre-Petition Taxes

    WILMINGTON, Del. - The reorganized version of Tribune Co. on July 19 filed a brief objecting to a motion filed by the Los Angeles County Treasurer and Tax Collector (LATTC) which sought relief from the permanent injunction contained in the debtor's reorganization plan, arguing that collection was barred by the bankruptcy court's discharge injunction (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.).

    Lightsquared Creditor: Sale Or Restructuring Of Company Should Be Ordered

    NEW YORK - Creditor SP Special Opportunities LLC (SPSO) filed a brief on July 23 in the Chapter 11 bankruptcy of Lightsquared Inc. in which it joined the Ad Hoc Group of Lightsquared Lenders in objecting to the debtor's motion seeking to extend the exclusivity period related to filing a Chapter 11 plan of reorganization. SPSO contends that the bankruptcy court should order an expeditious sale or restructuring of the company (In Re: Lightsquared Inc., No. 12-12080, Chapter 11, S.D. N.Y. Bkcy.).

    Bankruptcy Judge Give Hostess Right To Refuse Bids For Assets If Less Than $40M

    NEW YORK - The federal bankruptcy judge in New York presiding over the Chapter 11 proceeding of Old HB Inc., formerly known as Hostess Brands Inc., on July 19 granted the company approval to proceed with an auction of its remaining assets in which the company will have the right to determine that no bid is qualified if it is for less than $40 million (In Re: Old HB Inc. f/k/a Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).

    2nd Circuit Reverses, Remands; Bankrupt Worldcom Must Pay Taxes, IRS Claim

    NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on July 22 reversed and remanded a case in which a bankruptcy court had granted bankrupt Worldcom Inc.'s objection to a claim filed by the Internal Revenue Service and had said that the IRS should refund Worldcom the amount it paid in excise taxes (Internal Revenue Service v. Worldcom Inc. $(In Re: Worldcom Inc.$), No. 12-803, 2nd Cir.; 2013 U.S. App. LEXIS 14763).

    Bankruptcy Judge Expedites Detroit Proceeding, Says He Alone Has Jurisdiction

    DETROIT - The federal bankruptcy judge presiding over the Chapter 9 case of the City of Detroit on July 22 granted the city's motion for an expedited hearing and said that he has jurisdiction over the bankruptcy case despite objections from pension funds that sought to delay the bankruptcy proceeding (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).

    Kodak Bankruptcy Judge Values $250M Claim At $125M For For Plan Voting Purposes

    NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Eastman Kodak Co. on July 19 ordered that the claims of a creditor who sought $250 million would be reduced to $125 million solely for the purposes of voting on an amended plan of reorganization (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).

    Insurers: Conversion Of Power Company Case To Chapter 7 'Entirely Unnecessary'

    GREAT FALLS, Mont. - A group of insurance companies who are creditors in the Chapter 11 bankruptcy of the Southern Montana Electric Generation and Transmission Cooperative Southern Montana on July 18 filed a brief arguing that the motion of the Unsecured Creditors Committee to convert the bankruptcy to a Chapter 7 liquidation is "entirely unnecessary" (In Re: Southern Montana Electric Generation and Transmission Cooperative, No. 11-62031, Chapter 11, D. Mont.).