LexisNexis® Legal Newsroom
    U.K. Pension Claimants Make 'Unfounded Attacks' Against It, Committee, Nortel Says

    WILMINGTON, Del. - Bankrupt Nortel Networks Inc. and the Official Committee of Unsecured Creditors on June 6 filed a brief in the U.S. Bankruptcy Court for the District of Delaware, arguing that the U.K. pension claimants in Nortel's Chapter 11 bankruptcy "unfortunately have chosen to make unfounded attacks against" Nortel (In Re: Nortel Networks Inc., No. 09-10138, Chapter 11, D. Del. Bkcy.).

    5th Circuit: Wren Alexander Owes $173M In Taxes It Inherited Prior To Bankruptcy

    NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on June 4 affirmed a lower court's decision that held that a debtor company was liable for $173 million IRS tax lien despite that fact that the lien was originally levied against the previous owner of a property the debtor purchased prior to bankruptcy (Wren Alexander Investments LLC v. Internal Revenue Service $(In Re: Wren Alexander Investments LLC$), No. 12-50376, Chapter 11, 5th Cir.; 2013 U.S. App. LEXIS 11315).

    MFGI Customers: Insurance Payments For MFGH Officers Should Be Fixed At $40M

    NEW YORK - A group calling itself the customer representatives in an ongoing class action against former directors and officers of MF Global Inc. (MFGI), an affiliate of bankrupt MF Global Holdings Ltd. (MFGH), on June 6 filed a brief arguing that the cap on what insurers can pay defendants to cover defense costs should be set at a "hard cap" limit of $40 million (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).

    AMR Reorganization Plan Would Issue Stock In New Company To Satisfy Some Claims

    NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines Inc., on June 5 filed a declaration supporting its amended Chapter 11 reorganization plan that calls for the full satisfaction of general unsecured guaranteed claims by issuing new common stock in the company formed by the merger of American Airlines with US Airways Inc. (In Re: AMR Corp., No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

    Federal Agency: U.S. Bank Improperly Used Funds Of Bankrupt Peregrine Financial

    CEDAR RAPIDS, Iowa - The U.S. Commodities Futures Trading Commission (CFTC) sued U.S. Bank NA in the U.S. District Court for the Northern District of Iowa on June 5, seeking damages and restitution for money it says the bank improperly held in connection with the commodities violations and subsequent bankruptcy filing of Peregrine Financial Group Inc. (Commodity Futures Trading Commission v. U.S. Bank NA, No. 13-02041, N.D. Iowa).

    Sly And The Family Stone's Music Production Company Files For Bankruptcy

    LOS ANGELES - The former manager of musician Sly Stone, the frontman for Rock and Roll Hall of Fame inductees Sly and the Family Stone, on June 4 put Stone's production company into Chapter 11 bankruptcy, citing assets between $1 million and $10 million, as well as debts in that same range of value (In Re: Even St. Productions Ltd., No. 13-24363, Chapter 11, C.D. Calif. Bkcy.).

    San Bernardino Says It Has Complied With Eligibility Requirements For Bankruptcy

    RIVERSIDE, Calif. - The City of San Bernardino, Calif., on June 4 said it is eligible for Chapter 9 bankruptcy protection, despite objections from the California Public Employees Retirement System (CalPERS), because the city has complied with California Government Code Section 53760.5 (In Re: City of San Bernardino, Calif., No. 12-28006, Chapter 9, C.D. Calif. Bkcy.).

    CalPERS: San Bernardino Fails To Meet Burden Of Eligibility For Bankruptcy

    RIVERSIDE, Calif. - The California Public Employees' Retirement System (CalPERS) on June 3 filed a status report in the Chapter 9 bankruptcy of the City of San Bernardino, Calif., in which it claims that "it appears that the bankruptcy case was filed improperly for the purpose of delay" (In Re: City of San Bernardino, Calif., No. 12-28006, Chapter 9, C.D. Calif. Bkcy.).

    4th Circuit: Debtor Owes Damages For Fraud Based On Breach Of Business Contract

    RICHMOND, Va. - A panel of the Fourth Circuit U.S. Court of Appeals on June 4 ruled that damages awarded as the result of fraud in a business arrangement were not dischargeable in the personal bankruptcy of man who held a 50 percent stake in the company that committed the fraud (SG Homes Associates LP v. Michael J. Marinucci, No. 12-1621, Chapter 11, 4th Cir.; 2013 U.S. App. LEXIS 11176).

    Bankruptcy Judge Rejects Barclays' Fee Enhancement For Work On ASARCO Case

    CORPUS CHRISTI, Texas - Barclays Capital Inc. was adequately compensated for the 14 months of financial advisory services it provided in ASARCO LLC's bankruptcy case and is not entitled to a fee enhancement because Barclays should have anticipated the complicated developments in the case when it was hired, a Texas federal bankruptcy judge held May 30 in taking away a previously approved $975,000 fee enhancement award on remand (In re: ASARCO LLC, et al., No. 05-21207, S.D. Texas Bkcy.).

    'Girls Gone Wild' Founder: Appeal Must Not Be Heard By Bankruptcy Appellate Panel

    LOS ANGELES - Joseph Francis, the founder of bankrupt GGW Brands LLC, the parent company of the maker of adult videos carrying the name "Girls Gone Wild," on June 3 filed a statement that the appeal of the order that authorized the trustee to file a voluntary Chapter 11 petition for GGW Marketing LLC should be heard in the district court because he does not consent to the jurisdiction of the U.S. Bankruptcy Appellate Panel (BAP) for the Central District of California (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).

    2nd Circuit: Allegations Of Fraudulent Conveyance Belong To Bankruptcy Trustee

    NEW YORK - The Second Circuit U.S. Court of Appeals on June 3 affirmed a district court's ruling determining that allegations of fraudulent conveyances by directors of a bankrupt company were the property of the bankruptcy trustee, not individual investors in the debtor company (D. Kent Sissel, et al. v. Maxine Eimicke, et al., No.12-952, Chapter 11, 2nd Cir.; 2013 U.S. App. LEXIS 11059).

    MF Global, Bank Of America Agree That $4M Claim Is Allowed

    NEW YORK - Bankrupt MF Global Holdings Ltd.(MFGH) and Bank of America on May 31 stipulated to an agreement in a federal bankruptcy court in New York in which the bank will be allowed to make an unsecured claim for $4 million against MFGH (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).

    Meningitis Outbreak MDL Judge Centralizes Most Injury Cases In Bankruptcy Court

    BOSTON - All federal and state personal injury and wrongful death lawsuits against New England Compounding Pharmacy and related entities and persons on May 31 were ordered transferred into a federal bankruptcy court, but state court cases that don't name the bankrupt defendant can stay where they are for now (In Re: New England Compounding Pharmacy, Inc., Products Liability Litigation, MDL Docket No. 2419, No. 1:13-md-2419, D. Mass.).

    Lender Says It Has Standing To Oppose Rothstein Trustee's Deal On Versace Mansion

    FORT LAUDERDALE, Fla. - The lender that holds a $25 million first mortgage on the former mansion of designer Gianni Versace on May 30 filed a brief arguing that it has standing to object to the agreement entered into by the trustee in the Chapter 11 bankruptcy of Rothstein Rosenfeldt Adler (RRA) regarding the sale of the property (In Re: Rothstein Rosenfeldt Adler, No. 09-34791, Chapter 11, S.D. Fla. Bkcy.).

    Creditor: ATP Owes More Than $87.62M; Asset Sale Motion Should Be Denied

    HOUSTON - Creditor Statoil USA E&P on May 31 filed a brief objecting to a motion by bankrupt ATP Oil & Gas Corp. (ATP) that seeks approval of bidding procedures in its Chapter 11 proceeding, arguing that ATP has failed to post supplemental bond for more than $87.62 million related to deep-water drilling assets ATP is attempting to sell (In Re: ATP Oil & Gas Corporation, No. 12-36287, Chapter 11, S.D. Texas Bkcy.).

    Successor Future Claimants' Representative Appointed In W.R. Grace Case

    WILMINGTON, Del. - The attorney for the longtime future claimants' representative (FCR) in W.R. Grace and Co.'s bankruptcy case will now represent the claimants following the death of the FCR, a federal bankruptcy judge in Delaware ruled May 30 (In re: W.R. Grace & Co., et al., No. 01-1139, D. Del. Bkcy.).

    Retiring Bankruptcy Judge Transfers Pittsburgh Corning Chapter 11 Case

    PITTSBURGH - Seven days after issuing final rulings confirming the plan of reorganization for Chapter 11 debtor Pittsburgh Corning Corp. (PCC), Pennsylvania federal Bankruptcy Judge Judith K. Fitzgerald, who is retiring from the bench, on May 31 transferred the case to another bankruptcy judge (In re: Pittsburgh Corning Corporation, No. 00-22876, W.D. Pa. Bkcy.).

    Bankruptcy Judge Allows FAA Claims Of More Than $20M Against AMR Corp.

    NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of AMR Corp., the parent company of American Airlines Inc., on May 31 ruled that the Federal Aviation Administration has allowed claims of more than $20 million against AMR and its affiliates (In Re: AMR Corp., No.11-15463, Chapter 11, S.D. N.Y. Bkcy.).

    Debtor: U.S. High Court Must Resolve Circuit Court Split On Homestead Exemptions

    WASHINGTON, D.C. - A Chapter 7 debtor who asserts that a financial charge that was levied against his residential property should not be permitted because of the homestead exemption on May 29 filed an additional brief in the U.S. Supreme Court arguing that only the high court can solve the split that exists among circuit courts regarding the applicability of the exemption in question (Stephen Law v. Alfred Siegel, No. 12-5196, U.S. Sup.).

    2nd Circuit Says Affiliate Of Bankrupt A&P Did Not Violate Lease

    NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on May 29 ruled that an affiliate of bankrupt The Great Atlantic & Pacific Tea Co. Inc. did not violate its lease by failing to get consent from its landlord to sublet part of its storefront to another business (Gator Monument Partners v. The Great Atlantic & Pacific Tea Company Inc. $(In Re: The Great Atlantic & Pacific Tea Company Inc.$), No. 12-3466, Chapter 11, 2nd Cir.; 2013 U.S. App. LEXIS 10741).

    San Bernardino Creditor: Law Firm Disqualification Only For 'Most Extreme' Cases

    RIVERSIDE, Calif. - Creditor National Public Finance Guarantee Corp. on May 30 filed a brief opposing the motion of the California Public Employees' Retirement System (CalPERS) that seeks to disqualify a law firm in the Chapter 9 bankruptcy of the City of San Bernardino, Calif., on grounds that the firm switched sides in what parties it now represents. National contends that disqualification is warranted only in the "most extreme" cases (In Re: City of San Bernardino, Calif., No. 12-28006, Chapter 9, C.D. Calif. Bkcy.).

    Bankruptcy Judge OKs Deal With Dewey & LeBoeuf CEO, Insurer For More Than $19.5M

    NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy case of former law firm Dewey & LeBoeuf on May 30 approved a settlement valued at more than $19.5 million reached among the Dewey & LeBoeuf Liquidation Trust, XL Specialty Insurance Co. and Steven H. Davis, which resolves all claims held by the Liquidation Trust against Davis and XL (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

    GE Capital Seeks Stay Relief To Pursue More Than $1.34M From Bankrupt Kodak

    NEW YORK - General Electric Capital Corp. (GECC) on May 29 moved in the U.S. Bankruptcy Court for the Southern District of New York for relief from the automatic stay in the Chapter 11 proceeding of Eastman Kodak Co. in order to pursue collection of more than $1.34 million in contract fees and damages pertaining to an aviation lease agreement between the parties (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).

    Solyndra Creditor: $785M In Disputed Mechanics Liens Should Be Litigated

    WILMINGTON, Del. - Kinetic Systems Inc., a creditor of bankrupt alternative energy company Solyndra LLC, on May 29 moved in the U.S. Bankruptcy Court for the District of Delaware for a ruling that it could pursue collecting on $785 million in mechanics liens it holds against Solyndra (In Re: Solyndra LLC, No. 11-12799, Chapter 11, D. Del. Bkcy.).