LexisNexis® Legal Newsroom
    Kodak Plans To Sell Imaging Businesses To Settle $2.8B In U.K. Pension Claims

    NEW YORK - Bankrupt Eastman Kodak Co. on April 29 announced that it has reached a comprehensive settlement agreement with the U.K. Kodak Pension Plan (KPP), its largest creditor, which will settle $2.8 billion in claims held by KPP against Kodak by transferring ownership of Kodak's personalized-imaging and document-imaging businesses to KPP (In Re: Eastman Kodak Company, No.12-10202, Chapter 11, S.D. N.Y. Bkcy.).

    6th Circuit Approves Couple's Mobile Home Debt Cramdown, Chapter 13 Plan

    CINCINNATI - A panel of the Sixth Circuit U.S. Court of Appeals on April 26 overruled a bankruptcy court and affirmed a debtor couple's Chapter 13 payment plan that proposed cramming down the debt on its mobile home (James A. Wallingford v. Green Tree Servicing LLC [In Re: James A. Wallingford], No. 12-4174, Chapter 13, 6th Cir.; 2013 U.S. App. LEXIS 8586).

    Supreme Court Will Not Hear Equitable Mootness Doctrine Appeal By Debenture Trust

    WASHINGTON, D.C. - The U.S. Supreme Court on April 29 denied a petition for certiorari in which a debenture trust company argued that the Second Circuit U.S. Court of Appeals inappropriately applied the doctrine of equitable mootness in affirming a bankruptcy court's decision that overruled its objections to the reorganization plan of Charter Communications Inc. (Law Debenture Trust Co. v. Charter Communications Inc., No. 12-847, Chapter 11, U.S. Sup.).

    AMR Says $3.25B In Financing Needed As It Tries To Exit Chapter 11 Bankruptcy

    NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines Inc., on April 25 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of its request for $3.25 billion in exit financing (In Re: AMR Corp., No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

    U.S. Trustee: Atari Bonuses Should Be Denied As 'Primarily Retentive'

    NEW YORK - The U.S. trustee in the Chapter 11 bankruptcy of video game maker Atari Inc. on April 24 filed a brief objecting to the company's plan to pay bonuses to key employees on grounds that the benchmarks for determining whether those bonuses should be paid were not challenging enough (In Re: Atari Inc., No. 13-10176, Chapter 11, S.D. N.Y. Bkcy.).

    8th Circuit: Debtor Fails To Show Undue Hardship; Loans Not Discharged

    ST. LOUIS - A panel of the Eighth Circuit U.S. Court of Appeals on April 25 affirmed a bankruptcy court's decision that a debtor was not entitled to discharge of his student loan obligations based on an "undue hardship" (Erik J. Nielsen v. ACS Inc. $(In Re: Erik J. Nielsen$), No. 12-2925, Chapter 13, 8th Cir.; 2013 U.S. App. LEXIS 8373).

    Bankrupt Recycling Company Synagro Seeks Up To $2.64M In Employee Bonuses

    WILMINGTON, Del. - Bankrupt Synagro Technologies Inc., which bills itself as the largest recycler of biosolids and organic residuals in the country, on April 25 moved in a bankruptcy court for approval of what could amount to more than $2.64 million in bonuses for executives and designated key employees (In Re: Synagro Technologies Inc., No. 13-11041, Chapter 11, D. Del. Bkcy.).

    Bankrupt OSG Seeks Injunction Prohibiting Asbestos Claims;

    WILMINGTON, Del. - Bankrupt Overseas Shipholding Group (OSG) on April 25 filed a complaint in the U.S. Bankruptcy Court for the District of Delaware seeking a ruling that lawsuits against the company related to asbestos exposure are stayed pending bankruptcy as per the automatic stay (In Re: Overseas Shipholding Group, No. 12-20000, Chapter 11, D. Del. Bkcy.).

    Company Seeks Stay Relief To Pursue $17.7M Patent Claim Against Bankrupt AMR Corp.

    NEW YORK - A company that claims bankrupt AMR Corp., the parent company of American Airlines Inc., is infringing on its patents by operating certain boarding pass and flight check-in systems, on April 24 moved for relief from the automatic stay to sue the airline for $17.7 million in damages related to alleged post-petition patent infringement (In Re: AMR Corp., No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

    Ritz Camera Trustee Must Sell Asset To Higher Bidder, Says Buyer With $1.9M Offer

    WILMINGTON, Del. - A potential buyer of one of bankrupt Ritz Camera & Image LLC's assets on April 22 filed a brief objecting to the Chapter 7 trustee's motion seeking authorization to sell the asset, a piece of real property, to a different purchaser for $100,000 less (In Re: Ritz Camera & Image LLC, No. 12-11868, Chapter 7, D. Del. Bkcy.).

    Tribune Indenture Trustee Defends Fee Request Of More Than $6.1 Million

    WILMINGTON, Del. - The Law Debenture Trust Company of New York (LDTCNY) on April 23 filed a brief contending that its request for fees and expenses related to the bankruptcy of media giant Tribune Co. is appropriate because LDTCNY made "substantial contributions" to the case (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.).

    'Girls Gone Wild' Trustee Sues Founder For Intimidating Employees, Violating Stay

    LOS ANGELES - The Chapter 11 trustee in the bankruptcy of GGW Brands Inc., the parent company for the company that produces adult videos under the name "Girls Gone Wild," on April 23 sued GGW's founder seeking sanctions and damages for allegedly interfering with the trustee's attempts to conduct the bankruptcy (In Re: Todd Nielson v. Joseph Francis [In Re: GGW Brands Inc.], No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).

    Committee In Rhythm And Hues Case Opposes $425,000 Break-Up Fee For Failed Bid

    LOS ANGELES - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy of Rhythm And Hues Inc. (RAH), which provided the visual special effects for the film "Life of Pi," on April 22 filed a brief contending that a stalking horse bidder is not entitled to a $425,000 break-up fee (In Re: Rhythm And Hues Inc., No. 13-13775, Chapter 11, C.D. Calif. Bkcy.).

    11th Circuit: Trustee May Not Recover $536,686.91 Debtor Transferred To IRS

    ATLANTA - A panel of the 11th Circuit on April 23 ruled that the Internal Revenue Service was entitled to the good faith defense regarding the prepetition transfer of $536,686.91 it received from a debtor company and, therefore, the trustee could not recover the money for the bankruptcy estate (Soneet R. Kapula v. Internal Revenue Service $(In Re: ATM Financial Services LLC$), No. 12-11690, Chapter 11, 11th Cir.; 2013 U.S. App. LEXIS 8129).

    Asbestos Claims Force Former Manufacturer Into Bankruptcy

    WILMINGTON, Del. - Yarway Corp., a former Pennsylvania company that manufactured pipe clamps, steam traps, valves and controls, filed for Chapter 11 protection April 22 in Delaware federal bankruptcy court due to thousands of asbestos personal injury claims combined with the depletion of insurance assets to pay the claims (In re: Yarway Corporation, No. 13-11025, D. Del. Bkcy.).

    Dewey & LeBoeuf Trustee Seeks Approval Of Deal With CEO Valued At More Than $19.5M

    NEW YORK - The Dewey & LeBoeuf Liquidating Trust on April 22 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of a settlement valued at more than $19.5 million between the trust, Dewey & LeBoeuf's former CEO and his insurance company (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

    Michigan Grand Jury To Probe Possible Crimes In Fungal Meningitis Outbreak

    GRAND RAPIDS, Mich. - A Michigan appeals court on April 19 granted a petition by the state attorney general for a four-county grand jury to investigate whether crimes were committed during the manufacturing and distribution of a contaminated injectable steroid that is linked to a deadly outbreak of fungal meningitis that hit Michigan the hardest (In the Matter of a Petition for a Multi-County Citizens' Grand Jury for Genesee, Grand Traverse, Livingston, and Macomb Counties, No. 315393, Mich. App.).

    MF Global Trustee Sues Corzine And Other Directors For Breaches Causing Bankruptcy

    NEW YORK - The Chapter 11 trustee in the bankruptcy proceeding of MF Global Holdings Ltd. (MFGH) on April 22 sued former MFGH CEO Jon Corzine and other top executives in the U.S. Bankruptcy Court for the Southern District of New York, alleging that they breached their fiduciary duties and led MFGH into bankruptcy (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).

    Liquor Company's $172M Deal Prohibited By Bankruptcy Code, U.S. Trustee Argues

    WILMINGTON, Del. - The U.S. trustee in the Chapter 11 bankruptcy of liquor company Central European Distribution Corp. (CEDC) on April 22 filed a brief objecting to the debtor's motion seeking approval a $172 million investment agreement on grounds that the assumption of the contract at the heart of the investment agreement is prohibited by the Bankruptcy Code (In Re: Central European Distribution Corporation, No. 13-10738, Chapter 11, D. Del. Bkcy.).

    3rd Circuit: TD Bank Cannot Obtain Relief From Order Confirming Chapter 13 Plan

    PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on April 22 ruled that a bankruptcy court properly held that creditor TD Bank could not obtain relief from the order confirming a debtor couple's Chapter 13 payment plan (In Re: Richard Rodriguez and Claribel Rodriguez d/b/a Cr. Fun Development LLC d/b/a The Little Gym, No. 12-2146, Chapter 11, 3rd Cir.; 2013 U.S. App. LEXIS 7985).

    Bankruptcy Judge OKs $17.55M Asset Sale, Takeover Of Entertainment Publications

    WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 7 proceeding of Entertainment Publications LLC on April 22 authorized the sale of the company's assets to a stalking horse bidder for $17.55 million and authorized the trustee to take over operations of the debtor company (In Re: Entertainment Publications LLC, No. 13-10496, Chapter 7, D. Del. Bkcy.).

    9th Circuit Says Deloitte Not Liable; Misconduct Imputed To Debtor Company

    SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on April 22 ruled that a liquidating trust's claims against a debtor's former auditor failed because any misconduct related to the concealment of financial information in the bankruptcy was imputed to the debtor company and not the auditor (USACM Liquidating Trust v. Deloitte & Touche, No. 11-15626, Chapter 11, 9th Cir.).

    Bankruptcy Judge: $35M Claim Against MF Global 'Frivolous'; Sanctions Imposed

    NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 case of MF Global Holdings Ltd. (MFGH) on April 18 expunged a $35 million claim against the financial services company and sanctioned the woman who brought the claim $250 because it was "frivolous" (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).

    5th Circuit: Liquidation Plan Does Not Confer Standing To Bring Derivative Claims

    NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on April 18 ruled that two creditors lacked standing to bring derivative claims against a debtor company because the liquidation plan and the disclosure statement did not state with specificity that they had the right to bring the claims in question (John C. Wooley, et al. v. Haynes & Boone $(In The Matter of SI Restruction Inc.$), No. 11-51106, Chapter 11, 5th Cir.; 2013 U.S. App. LEXIS 7828).

    Ricoh Sues Kodak, Alleges Post-Petition Copyright Infringement

    NEW YORK- Ricoh Co. Ltd. on April 19 sued bankrupt Eastman Kodak Co. in the U.S. Bankruptcy Court for the Southern District of New York, seeking declaratory and injunctive relief for alleged post-petition patent infringement (Ricoh Company Ltd. v. Eastman Kodak Company $(In Re: Eastman Kodak Company$), No. 12-10202, Adv. No. 13-01332, Chapter 11, S.D. N.Y. Bkcy.).