LexisNexis® Legal Newsroom
    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.).

    Investors Offer $275M For Bankrupt Pharmaceutical Company K-V Discovery

    NEW YORK - A group of investors on May 29 made a $275 million offer to buy bankrupt K-V Discovery Solutions Inc. (In Re: K-V Discovery Solutions Inc., No. 12-13346, Chapter 11, S.D. N.Y. Bkcy.).

    Bankrupt K-V Discovery Seeks $3M Settlement Of Medication Overpricing Lawsuit

    NEW YORK - Bankrupt compounding pharmacy K-V Discovery Solutions Inc. on May 28 moved in New York federal bankruptcy court for approval of a $3 million settlement of claims asserted by the State of Texas related to alleged overpricing of medication (In Re: K-V Discovery Solutions Inc., No. 12-13346, Chapter 11, S.D. N.Y. Bkcy.).

    Class: Directors, Officers Of Bankrupt ATP Oil & Gas Violated Securities Law

    NEW ORLEANS - The Firefighters Pension & Relief Fund of the City of New Orleans (FPRF) on May 24 filed a class action against the directors and officers of bankrupt ATP Oil & Gas, alleging that they violated securities laws by providing misleading information before filing for Chapter 11 bankruptcy (Firefighters Pension & Relief Fund of the City of New Orleans v. T. Paul Bulmahn, et al., No. 13-03935, E.D. La.).

    Arcapita Bank Seeks $175M In Additional Financing To Exit Chapter 11 Bankruptcy

    NEW YORK - Bankrupt Arcapita Bank B.S.C. on May 28 moved in the U.S. Bankruptcy Court for the Southern District of New York for authorization to obtain an additional $175 million in post-petition financing, also called debtor-in-possession (DIP) financing, that would be used as replacement financing to repay existing DIP financing (In Re: Arcapita Bank, No. 12-11076, Chapter 11, S.D. N.Y. Bkcy.).

    4th Circuit Says Trustee May Not Recover Assets Of Bankrupt Derivium Capital

    RICHMOND, Va. - A panel of the Fourth Circuit U.S. Court of Appeals on May 24 affirmed a bankruptcy court's ruling and said assets the trustee claimed were fraudulently transferred could not be recovered (Grayson Consulting Inc. v. Wachovia Securities $(In Re: Derivium Capital LLC$), No. 12-1518, Chapter 7, 4th Cir.; 2013 U.S. App. LEXIS 10529).

    Kodak: Expense Claim Should Be Denied Firm For Failure To Perform Its Duties

    NEW YORK - Bankrupt Eastman Kodak Co. on May 24 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that the bankruptcy court should not allow a $258,968.43 administrative expense claim asserted by a firm Kodak hired to provide services related to underlying patent litigation because the firm failed to perform its duties under the contract (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).

    2nd Circuit Reverses; Creditor May Set Off Judgment She Owes Against Claim

    NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on May 28 reversed and remanded a bankruptcy court's ruling and determined that a creditor was entitled to have a $226,000 judgment she owes set off by her claim against the debtor's bankruptcy estate (Sally Ogden v. Ronald Ian Chorches $(In Re: Bolin & Co. LLC$), No. 12-1310, Chapter 7, 2nd Cir.; 2013 U.S. App. LEXIS 10614).

    Creditor: Bankruptcy Court Should Deny Cash Collateral For Bankrupt Laser Company

    FORT WORTH, Texas - A creditor of Primcogent Solutions LLC, a distributor of a non-invasive body contouring laser, on May 27 filed a brief in the U.S. Bankruptcy Court for the Northern District of Texas objecting to Primcogent's motion seeking cash collateral on grounds that the money should not be approved because the company is litigating a contract dispute with the supplier that makes Primcogent's business operation possible in the first place (In Re: Primcogent Solutions LLC, No. 13-42368, Chapter 11, N.D. Texas Bkcy.).

    Tribune: Claims Not Valid; $20M Related To Underlying Newspaper Case Has Expired

    WILMINGTON, Del. - The reorganized version of The Tribune Co. on May 24 filed a series of briefs objecting to assorted claims against the bankruptcy estate, most notably arguing that a $20 million claim asserted by the estate of Parren Mitchell, a former Maryland congressman, had expired (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.).

    U.S. Trustee: AMR Disclosure Statement Violates Bankruptcy Code, Should Be Denied

    NEW YORK - The U.S. trustee in the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines Inc., on May 24 filed a brief objecting to the company's motion seeking approval of its disclosure statement on grounds that it violates the Bankruptcy Code (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

    'Girls Gone Wild' Trustee Says Founder Cannot Stop Marketing Arm's Bankruptcy Case

    LOS ANGELES - The trustee in the Chapter 11 bankruptcy of GGW Brands LLC, the company that makes adult videos carrying the name "Girls Gone Wild," on May 23 filed a brief contending that GGW's founder cannot seek a stay of the bankruptcy court order authorizing him to force GGW Marketing LLC - an affiliate of GGW Brands - to file for Chapter 11 bankruptcy (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).

    Marketing Arm Of Bankrupt 'Girls Gone Wild' Video Maker Forced Into Chapter 11

    LOS ANGELES - The proposed counsel for GGW Marketing LLC, an affiliate of GGW Brands LLC - the maker of adult videos carrying the title "Girls Gone Wild" - on May 22 moved in the U.S. Bankruptcy Court for the Central District of California seeking to have its Chapter 11 case consolidated with that of GGW Brands after the trustee succeeded in forcing GGW Marketing to file for bankruptcy (In Re: GGW Marketing LLC, No. 13-23452, Chapter 11, C.D. Calif. Bkcy.).

    China Natural Gas Inc. Wants Involuntary Chapter 11 Case Dismissed, Seeks Damages

    NEW YORK - China Natural Gas Inc.(CNG) on May 22 moved in the U.S. Bankruptcy Court for the Southern District of New York for dismissal of an involuntary Chapter 11 bankruptcy petition filed by a member of the company's board of directors and a group of creditors on grounds that it was improperly filed (In Re: China Natural Gas Inc., No. 13-10419, Chapter 11, S.D. N.Y. Bkcy.).

    ResCap Seeks $2.1B Deal With Ally Financial To End Dispute, Speed Chapter 11 Exit

    NEW YORK - Bankrupt Residential Capital LLC on May 23 moved in the U.S. Bankruptcy Court for the Southern District of New York for authorization to enter into a settlement agreement with Ally Financial Inc. under which Ally would pay an additional $1.35 billion, for a total of $2.1 billion, to settle claims ResCap had against Ally (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).

    9th Circuit: Student Loan Debt Discharge Proper; Debtor Acted In Good Faith

    SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on May 22 reversed a district court and held that a bankruptcy court's decision that a debtor was entitled to discharge of his student loan debt was proper (Michael Eric Hedlund v. The Educational Resources Institute Inc., No. 12-35258, Chapter 7, 9th Cir.; 2013 U.S. App. LEXIS 10294).

    Elpida Foreign Representatives Seek OK Of Micron's 200B Yen Reorganization Offer

    WILMINGTON, Del. - The foreign representatives of bankrupt computer chip maker Elpida Memory Inc. on May 22 moved in the U.S. Bankruptcy Court for the District of Delaware for an order enforcing Micron Technology Inc.'s 200 billion yen Japanese reorganization plan for the company (In Re: Elpida Memory Inc., No. 12-10947, Chapter 15, D. Del. Bkcy.).

    3rd Circuit: Debtor's Change In Tax Status Not Property; Transfer Not Fraudulent

    PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on May 21 vacated and remanded a ruling that a debtor could not treat its parent company's change in corporate tax status, which changed the debtor's tax obligation, as a fraudulent transfer (The Majestic Star LLC v. Barden Development Inc., et al. $(In Re: The Majestic Star Casinio LLC$), No. 12-3201, Chapter 11, 3rd Cir.; 2013 U.S. App. LEXIS 10186).

    Nonprofit KidsPeace Corp. Files For Chapter 11, Citing $100M In Pension Plan Debt

    PHILADELPHIA - KidsPeace Corp., a nonprofit that operates a 96-bed psychiatric hospital and provides what it calls "acute behavioral healthcare" to children and young adults, among other services, on May 22 filed for Chapter 11 bankruptcy, citing debt of $100 million related to its pension plan alone (In Re: KidsPeace, No. 13-14509, E.D. Pa. Bkcy.).

    Bankruptcy Judge Approves $9.5M In DIP Funding For Oreck Corp.

    NASHVILLE, Tenn. - The federal bankruptcy judge in the Chapter 11 case of Oreck Corp. on May 21 approved $9.5 million in post-petition financing, also called debtor-in-possession (DIP) financing (In Re: Oreck Corporation, No. 13-04006, Chapter 11, M.D. Tenn. Bkcy.).

    In Demand LLC Sues Trustee, Subsidiary In Bankruptcy Of 'Girls Gone Wild'

    LOS ANGELES - In Demand LLC, a video entertainment conglomerate, on May 21filed an adversary complaint in the Chapter 11 proceeding of GGW Brands LLC, the parent company of adult video maker "Girls Gone Wild," seeking $118,000 which it says is overdue pursuant to a licensing agreement with GGW. On the same day, a bankruptcy judge granted the trustee's motion to file for Chapter 11 bankruptcy on behalf of GGW Marketing LLC (In Demand LLC v. Argyle Media Sales LLC, et al. $(In Re: GGW Brands LLC$), No 13-15130, Chapter 11, C.D. Calif. Bkcy.).

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

    WILMINGTON, Del. - 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 at, a federal bankruptcy judge in Delaware overseeing the companies' joint Chapter 11 case ruled May 20 (In re: Specialty Products Holding Corp., et al., No. 10-11780, D. Del. Bkcy.; 2013 Bankr. LEXIS 2051).

    7th Circuit Rules Clause In Loan Contract With Debtor Couple Proper

    CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on May 20 reversed a district court ruling and held that a cross-colleteralization clause in a loan agreement between a bank and a debtor couple was not invalid (Peoples National Bank v. Banterra Bank, No. 12-3079, Chapter 11, 7th Cir.; 2013 U.S. App. LEXIS 10034).

    Bankruptcy Judge OKs A123's Liquidation Plan; Most Claims Repaid In Full

    WILMINGTON, Del. - The bankruptcy judge presiding over the Chapter 11 liquidation of alternative energy company A123 Systems Inc. on May 20 confirmed the company's liquidation plan under which most creditors would recover 100 percent of their claims, with subordinated noteholders recovering 65 percent of the money they are owed (In Re: A123 Systems Inc., No. 12-12859, Chapter 11, D. Del. Bkcy.).

    AMF Bowling Seeks Approval Of $310M Loan With Credit Suisse, Merger With Bowlmor

    RICHMOND, Va. - Bankrupt AMF Bowling Worldwide Inc. on May 18 moved in the U.S. Bankruptcy Court for the Eastern District of Virginia for authorization to enter a credit agreement with Credit Suisse Securities LLC with a total value of $310 million that would also merge the company with Bowlmor, an independent operator of bowling centers (In Re: AMF Bowling Worldwide Inc., No. 12-36495, Chapter 11, E.D .Va. Bkcy.).