DETROIT - Bankrupt Capitol Bancorp Ltd. on Aug. 2 moved in the U.S. Bankruptcy Court for the Eastern District of Michigan for an order compelling the Federal Deposit Insurance Corp. to produce documents and to submit to examination through deposition testimony regarding allegations that the FDIC used its power to close - or pressured bank regulators to close - certain banks by seizing private property (In Re: Capitol Bancorp Ltd., No. 12-58409, Chapter 11, E.D. Mich. Bkcy.).
BRUSSELS, Belgium - The European Commission, a division of the European Union in charge of competition policy, on Aug. 5 announced that it had granted conditional approval to the proposed $11 billion merger between bankrupt American Airlines Inc. and US Airways.
CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on Aug. 2 reversed and remanded a case, holding that the claim made against a bankruptcy estate by the debtor's former wife was incorrectly granted by the bankruptcy court (In Re: Gary E. Peel, No. 13-1547, Chapter 7, 7th Cir.; 2013 U.S. App. LEXIS 16049).
NEW YORK - The liquidating trustee in the Chapter 11 proceeding of former law firm Dewey & LeBoeuf on Aug. 2 filed a brief arguing that the deadline upon which objections can be filed to claims made against the bankruptcy estate should be extended to Jan. 16 (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).
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 - 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.).
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.).
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.).
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).
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.).
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.).
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.).
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 - 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.).
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.).
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.).
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.).
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.).
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.).
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.).
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.).
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.).
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.).
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.).
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.).