LexisNexis® Legal Newsroom
    W.R. Grace Asbestos Trust To Receive $900,000 From Deal With Insurer

    WILMINGTON, Del. - A federal bankruptcy judge in Delaware on April 17 approved a settlement agreement between Chapter 11 debtor W.R. Grace & Co. and one of its insurers that will provide more than $900,000 to the debtor's asbestos personal injury trust in one lump-sum payment rather than in installments (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.).

    5th Circuit: Debtor Company's Principal Lacks Standing; Claims Properly Dismissed

    NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on April 18 ruled that the claims made by a principal of a company that filed for bankruptcy were moot because they were derivative of other claims and he lacked standing to challenge the order dismissing those claims (Lewis Miller Smyth v. Simeon Land Development $(In Re: Escarent Entities$), No. 12-50297, Chapter 11, 5th Cir.; 2013 U.S. App. LEXIS 7779).

    Maritime Company In Asbestos MDL Files Chapter 7 Petition

    NEW YORK - A New York steamship and maritime company that is a defendant in 28 cases in a multidistrict asbestos litigation filed a notice April 16 in a Pennsylvania federal court that it has filed a voluntary Chapter 7 petition in New York federal bankruptcy court (In re: Asbestos Products Liability Litigation $(No. VI$), MDL No. 02-875, E.D. Pa.).

    Indenture Trustee: Tribune's Denial Of Fees 'Meritless'; Notions 'Preposterous'

    WILMINGTON, Del. - Deutsche Bank Trust Company Americas (DBTCA), as successor indenture trustee, on April 16 filed a brief in the U.S. Bankruptcy Court for the District of Delaware contending that the objection of the reorganized version of bankrupt Tribune Co. to its fee request is "meritless" (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.).

    11th Circuit: Property Sale Proceeds Belong To Estate Of Chapter 7 Debtor

    ATLANTA - A panel of the 11th Circuit U.S. Court of Appeals on April 16 ruled that the sale proceeds resulting from a transaction that was agreed to prior to a debtor's Chapter 7 bankruptcy petition were property of the bankruptcy estate (William Arthur Thomas III v. Theresa M. Bender $(In Re: William Arthur Thomas III$), No. 12-13936, Chapter 7, 11th Cir.; 2013 U.S. App. LEXIS 7542).

    Former FBI Special Agent Named As Trustee For 'Girls Gone Wild' Case

    LOS ANGELES - The federal bankruptcy judge presiding over the Chapter 11 proceeding of GGW Brands LLC, the parent company that produces adult-entertainment videos under the name "Girls Gone Wild," on April 16 named former FBI special agent R. Todd Nielson as the Chapter 11 trustee (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).

    Bankruptcy Judge: Insurer's $378M Fraud Case Against JPMorgan Stayed

    BIRMINGHAM, Ala. - The federal bankruptcy judge presiding over the Chapter 9 proceeding of Jefferson County, Ala., on April 15 ruled that an insurer who alleges that it was fraudulently induced to provide $378 million in insurance coverage could not pursue its lawsuit because of the automatic stay (In Re: Jefferson County, Ala., No. 11-05736, Chapter 9, N.D. Ala. Bkcy.).

    G-I Holdings Settles Environmental Claims For Tennessee Site

    NEWARK, N.J. - Reorganized Chapter 11 debtor G-I Holdings Inc. will pay $129,000 to settle claims related to environmental damage at a Tennessee site, according to a stipulation and order entered April 12 in New Jersey federal bankruptcy court (In re: G-I Holdings, Inc., et al., Nos. 01-30135 and 01-38790, D. N.J. Bkcy.).

    Kaye Scholer: $1.5M Deal With GSC Group Trustee Should Be Affirmed

    NEW YORK - The law firm representing bankrupt GSC Group Inc. on April 15 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that objections to the $1.5 million settlement reached between it and the U.S. trustee should be denied (In Re: GSC Group Inc., No. 10-14653, Chapter 11, S.D .N.Y. Bkcy.).

    AMR Examiner Seeks $749,271 Reduction Of Fees, Expenses By Counsel, Other Firms

    NEW YORK - The fee examiner in the Chapter 11 bankruptcy proceeding of AMR Corp., the parent company of American Airlines Inc., on April 16 filed a report proposing to reduce the fees and expenses for six firms involved in the litigation by a total of $749,271.81 (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

    Coalition: Peregrine Trustee's Compensation Application Is 'Inappropriate'

    CHICAGO - The Commodity Customer Coalition Inc. (CCC) on April 15 filed a brief in the U.S. Bankruptcy Court for the Northern District of Illinois objecting to the Chapter 7 trustee's first interim application for more than $1.23 million in compensation, contending that it is inappropriate under the provisions of the Bankruptcy Code (In Re: Peregrine Financial Group Inc., No. 12-27488, Chapter 7, N.D. Ill. Bkcy.).

    Bankrupt Firm Charged With Corruption To Pay $2.6M To State Of New Jersey

    TRENTON, N.J. - Bankrupt Birdsall Services Group Inc. (BSG) on April 15 reached an agreement with the State of New Jersey under which it will pay $2.6 million to settle claims the state made against the company as part of a forfeiture action (In Re: Birdsall Services Group Inc., No. 13-16743, Chapter 11, D. N.J. Bkcy.).

    Bankruptcy Judge: ResCap's $7.8M In Bonuses For Key Employees Approved

    NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 case of Residential Capital LLC (ResCap) on April 16 approved the payment of $7.8 million in bonuses (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).

    Trinity Place Argues Bankrupt Clothing Store Syms Not Responsible To Pay Rent

    WILMINGTON, Del. - Trinity Place Holdings Inc., an entity formed out of bankrupt Syms Corp., on April 11 filed a brief in the U.S. Bankruptcy Court for the District of Delaware, arguing that Syms should not be required to pay rent on various buildings based on the wording of the leases (In Re: Filene's Basement LLC, No. 11-13511, Chapter 11, D. Del. Bkcy.).

    Former Dodgers Owner's Ex-Wife Objects To Enforcement Of Confidentiality Order

    WILMINGTON, Del. - Jamie McCourt, the ex-wife of the former owner of the Los Angeles Dodgers baseball team, Frank McCourt, on April 15 filed a brief in bankruptcy court objecting to a motion seeking to enforce a confirmation order that would rule that certain documents sought in discovery pertaining to her divorce action were privileged (In Re: Los Angeles Dodgers, No. 11-12010, Chapter 11, D. Del. Bkcy.).

    Bankruptcy Judge Denies $20M Bonus For AMR CEO, Says Bankruptcy Code Prohibits It

    NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of AMR Corp., the parent company of American Airlines Inc., on April 11 denied a $20 million bonus to AMR's CEO Thomas Horton, saying that the Bankruptcy Code "curtails payment of retention incentives or severance to insiders of a debtor" (In Re: AMR Corp., No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

    Rothstein Trustee: Privilege Prohibits Production Of Documents

    FORT LAUDERDALE, Fla. - The Chapter 11 trustee in the bankruptcy of former law firm Rothstein Rosenfeldt Adler (RRA), on April 12 filed a brief contending that a creditor's motion to compel documents should be denied because it sought documents that were privileged (In Re: Rothstein Rosenfeldt Adler, No. 09-34791, Chapter 11, S.D. Fla. Bkcy.).

    4th Circuit Affirms Bankruptcy Court Ruling That Conflict Of Interest Not Shown

    RICHMOND, Va. - A panel of the Fourth Circuit U.S. Court of Appeals on April 11 affirmed a bankruptcy court's ruling that there was no conflict of interest in a company's bankruptcy proceeding because a lawsuit that had been filed against a principal of the debtor company by the firm that was appointed as bankruptcy counsel was "an unrelated matter" to the bankruptcy at hand (Alex Rahmi v. Robert W. Trumble $(In Re: Bon-Air Partnership$), No. 12-1244, Chapter 7, 4th Cir.; 2013 U.S. App. LEXIS 7316).

    Bankruptcy Judge Sets Protocol For Production Of Claims Information To Garlock

    WILMINGTON, Del. - A federal bankruptcy judge in Delaware and Pennsylvania on April 9 established the protocol for debtor Garlock Sealing Technologies LLC to follow to obtain information about asbestos claimants filed in 12 other Chapter 11 cases, making clear that the information can be used only for the asbestos liability proceeding in Garlock's case (In re: W.R. Grace & Co., et al., No. 01-1139, D. Del. Bkcy.).

    'Girls Gone Wild' Video Maker Says Attorney Does Not Have Conflict Of Interest

    LOS ANGELES - Bankrupt adult entertainment company GGW Brands LLC, the parent company of the producer of videos called "Girls Gone Wild," on April 10 filed a brief in the U.S. Bankruptcy Court for the Central District of California contending that the attorney it seeks to permission to appoint does not pose a conflict of interest for the company (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).

    Bankruptcy Judge Appoints Chapter 11 Trustee In 'Girls Gone Wild' Video Maker Case

    LOS ANGELES - The federal bankruptcy judge presiding over the Chapter 11 proceeding of GGW Brands LLC, the parent company that produces adult entertainment videos under the name "Girls Gone Wild," on April 11 appointed a Chapter 11 trustee, overruling the company's objections (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).

    U.S. Trustee Says Tribune Indenture Trustees Not Entitled To Fees

    WILMINGTON, Del. - The U.S. trustee in the Chapter 11 bankruptcy of Tribune Co. on April 11 filed two briefs amending her objection to the Law Debenture Trust Company of New York (LDTCNY) and Wilmington Trust Co.'s applications for allowance of claims for fees valued at a combined total of more than $13.25 million, arguing that the fees are "unreasonable"(In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.).

    Rothstein Trustee Argues Chapter 7 Conversion Lacks 'Legitimate' Basis

    FORT LAUDERDALE, Fla. - The Chapter 11 trustee in the bankruptcy of law firm Rothstein Rosenfeldt Adler (RRA) filed a brief on April 10 in the U.S. Bankruptcy Court for the Southern District of Florida objecting to a motion by various creditors who seek to have the bankruptcy converted to Chapter 7, saying there is "absolutely no legitimate or statutory basis to convert the case" (In Re: Rothstein Rosenfeldt Adler, No. 09-34791, Chapter 11, S.D. Fla. Bkcy.).

    Landlords Object To Bidding Procedures For Bankrupt Clothier Big M Inc.

    TRENTON, N.J. - A group of landlords on April 10 filed a brief in the U.S. Bankruptcy Court for the District of New Jersey objecting to bidding procedures proposed by bankrupt clothier Big M Inc., the parent company for Mandee and Annie Sez (In Re: Big M Inc., No. 13-10233, Chapter 11, D. N.J. Bkcy.).

    Reader's Digest Amends Plan, Restructures More Than $513.62M In Secured Debt

    NEW YORK - Bankrupt RDA Holding Co., the parent company of Reader's Digest, on April 11 filed an amended plan of reorganization that calls for the restructuring of more than $513.62 million in secured debt (In Re: RDA Holding Co., No. 13-22233, Chapter 11, S.D. N.Y. Bkcy.).