LexisNexis® Legal Newsroom
    Judge: Recoupment Of Medicare Payments Does Not Violate Bankruptcy Discharge

    AIKEN, S.C. - A South Carolina federal judge on March 22 affirmed a ruling by a bankruptcy judge that the withholding of post-petition Medicare reimbursement claims to recoup pre-petition Medicare reimbursement overpayments does not violate the Chapter 7 discharge injunction (In re: Gary T. Fischbach, Debtor, v. Centers for Medicare and Medicaid Services, et al., No. 12-513, D. S.C.; 2013 U.S. Dist. LEXIS 39855).

    U.S. Trustee: MF Global Liquidation Plan Fails To Meet Bankruptcy Code

    NEW YORK - The U.S. trustee in the Chapter 11 bankruptcy of MF Global Holdings Ltd. (MFGH) on March 25 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to the confirmation of MFGH's joint plan of liquidation on grounds it fails to satisfy the Bankruptcy Code (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).

    Revel AC Casino Files For Chapter 11 Bankruptcy, With $250M In Financing Lined Up

    TRENTON, N.J. - Bankrupt casino Revel AC Inc. on March 26 filed a disclosure statement for its joint plan of reorganization a day after it filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of New Jersey in which it says it has lined up $250 million in post-petition financing, also called debtor-in-possession (DIP) financing (In Re: Revel AC Inc., No. 13-16253, Chapter 11, D. N.J. Bkcy.).

    Ex-Partner: Dewey &LeBoeuf Not Allowed To Reclassify, Subordinate His Claim

    NEW YORK - A former partner of bankrupt law firm Dewey &LeBoeuf on March 25 filed a brief arguing that the firm's objection to his claims against the bankruptcy estate should not be granted because the firm seeks to improperly reclassify them as either equity interests or subordinated claims (In Re: Dewey &LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

    Creditor: Trustee Needed In Bankruptcy Of 'Girls Gone Wild' Video Producer

    LOS ANGELES - A creditor of bankrupt adult entertainment company GGW Brands Inc., the parent company for the maker of "Girls Gone Wild" videos, on March 21 filed a motion in the U.S. Bankruptcy Court for the Central District of California arguing that a Chapter 11 trustee should be appointed (In Re: GGW Brands Inc., No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).

    Shutterfly: Kodak Is Violating Noncompete Agreement Related To Asset Sale

    NEW YORK - Photography company Shutterfly Inc. on March 22 filed an adversary complaint against bankrupt Eastman Kodak Co. in the U.S. Bankruptcy Court for the Southern District of New York, seeking damages and injunctive relief for alleged violations of a noncompete covenant that was part of an agreement Kodak made when it sold an asset to Shutterfly (Shutterfly Inc. v. Kodak Imaging Network Inc, et al. $(Eastman Kodak Company$), No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).

    2 Creditor Groups Support AMR, US Airways Merger

    NEW YORK - Two committees in the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines Inc., on March 22 filed statements in the U.S. Bankruptcy Court for the Southern District of New York approving the merger of American Airlines and US Airways Group Inc. (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

    Reader's Digest Reorganization Plan Would Convert $475M In Debt To Equity

    NEW YORK - Bankrupt publishing company RDA Holding Co., the parent company for Reader's Digest, on March 21 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of its plan of reorganization (In Re: RDA Holding Co., No. 13-22233, Chapter 11, S.D. N.Y. Bkcy.).

    Peregrine Trustee Wants To Examine Former Accountant Regarding CEO's Fraud

    CHICAGO - The trustee in the Chapter 7 bankruptcy of former financial company Peregrine Financial Group Inc. on March 19 moved in the U.S. Bankruptcy Court for the Northern District of Illinois for authorization to examine Peregrine's former accountant and other entities with which the accountant is affiliated (In Re: Peregrine Financial Group Inc., No. 12-27488, Chapter 7, N.D. Ill. Bkcy.).

    MF Global SIPA Trustee, JPMorgan Reach Deal To Return $300M To Customers

    NEW YORK - The Securities Investor Protection Act (SIPA) trustee in the MF Global Inc. (MFGI) bankruptcy on March 19 announced that he had reached a settlement agreement with JP Morgan Chase Bank N.A. that will return $300 million to commodities customers who had money invested with MFGI (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.).

    Rothstein Trustee: Statement Pertaining To Liquidation Plan Should Be Approved

    FORT LAUDERDALE, Fla. - The Chapter 11 liquidating trustee in the bankruptcy case of former law firm Rothstein Rosenfeldt Adler on March 19 filed a brief in the U.S. Bankruptcy Court for the Southern District of Florida arguing that the Bankruptcy Court should approve his disclosure statement despite objections (In Re: Rothstein Rosenfeldt Adler, No. 09-34791, Chapter 11, S.D. Fla. Bkcy.).

    Federal Judge: Notice Of Appeal Not Timely Filed; Therefore, Leave Denied

    MINNEAPOLIS - A federal judge in Minnesota on March 18 denied a debtor leave to appeal a bankruptcy court's dismissal of his lawsuit against his former wife and her parents alleging willful violation of the automatic stay, ruling that his notice of appeal was not filed in a timely manner (Randy J. Krongard v. Laura L. Krongard Loban $(In Re: Randy J. Krongard$), No. 12-3129, Chapter 7, D. Minn.; 2013 U.S. Dist. LEXIS 36834).

    OSG Defends Awarding Up To $12.2M In Bonuses, Dismisses U.S. Trustee's Objection

    WILMINGTON, Del. - Bankrupt shipping company Overseas Shipholding Group Inc. (OSG) on March 18 defended its request for approval of up to $12.2 million in bonuses for non-executive employees despite objections of the U.S. trustee (In Re: Overseas Shipholding Group Inc., No. 12-20000, Chapter 11, D. Del. Bkcy.).

    U.S. Supreme Court Hears Arguments In Case Of Debtor's Alleged Defalcation

    WASHINGTON, D.C. - The U.S. Supreme Court on March 18 heard oral arguments in a case involving a bank's claim that a debtor who had acted as trustee for his father's insurance trust acted recklessly and was guilty of defalcation for making loans to himself during the time he had control of the trust (Randy Curtis Bullock v. BankChampaign, No. 11-1518, Chapter 7, U.S. Sup.).

    MF Global Seeks $70M In Exit Financing To Fund Liquidation Process

    NEW YORK - Bankrupt MF Global Holdings Ltd. (MFGH) on March 15 filed a supplement to its Chapter 11 plan of liquidation requesting $70 million in exit financing to complete the liquidation process (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).

    6th Circuit Rules Bankruptcy Fraud Conviction Stands; Evidence 'Overwhelming'

    CINCINNATI - A panel of the Sixth Circuit U.S. Court of Appeals on March 14 affirmed a district court's ruling that a debtor committed bankruptcy fraud, saying there was "overwhelming" evidence he made multiple false statements during the proceeding (Douglas Anthony Dale v. United States of America, No. 12-3206, Chapter 13, 6th Cir.; 2013 U.S. App. LEXIS 5266).

    Committee: Ormet's Bidding Procedures Unfairly Benefit Stalking Horse

    WILMINGTON, Del. - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy of Ormet Corp. on March 15 filed an objection in the U.S. Bankruptcy Court for the District of Delaware contending that Ormet's bidding procedures unfairly favor the stalking horse (In Re: Ormet Corporation, No. 13-10334, Chapter 11, D. Del. Bkcy.).

    Federal Judge Affirms Ruling; Debtor Must Turn Over Property To Trustees

    ST. THOMAS, Virgin Islands - A federal judge in the Virgin Islands on March 14 ruled that a bankruptcy court had jurisdiction to order a debtor to turn over property to the trustees in his personal bankruptcy as well as in the corporate bankruptcy of the company he founded (In Re: Jeffrey J. Prosser, No. 06-30009, Chapter 7; In Re: Innovative Communications Corporation, No. 07-30012, Chapter 11; Stan Springel, et al. v. Jeffrey J. Prosser, et al, No. 2011-113, D. V.I., St. Thomas/St. John; 2013 U.S. Dist. LEXIS 35311).

    Hawker Beechcraft Trustee Says Some Of $19.31M In Fees Are 'Unreasonable'

    NEW YORK - The U.S. trustee in the Chapter 11 bankruptcy of Hawker Beechcraft Inc. on March 14 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to various firms' applications for more than $19.31 million in compensation and reimbursement of expenses (In Re: Hawker Beechcraft, No. 12-11873, Chapter 11, S.D. N.Y. Bkcy.).

    Federal Judge: Debtor's Case Against Employer Barred By Judicial Estoppel

    WILMINGTON, Del. - A federal judge in Delaware on March 14 ruled that a debtor's lawsuit against his former employer was barred by judicial estoppel because he failed to indicate the lawsuit on his bankruptcy schedules (David J. Yetter v. Wise Power Systems Inc., No. 11-00040, Chapter 7, D. Del.).

    Michigan Governor Names Detroit's Emergency Financial Manager

    DETROIT - The Michigan Local Financial Emergency Assistance Board on March 14 approved Gov. Rick Snyder's appointment of bankruptcy attorney Kevyn Orr as the emergency financial manager for the City of Detroit.

    Dewey & LeBoeuf Cannot Disallow More Than $12.94M Claim, Former Partner Says

    NEW YORK - A creditor in the Chapter 11 bankruptcy proceeding for former law firm Dewey & LeBoeuf on March 14 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to the firm's objection to the claims asserted by himself and other former partners in the firm (In Re: Dewey & LeBoeuf, No 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

    Bankruptcy Judge Approves Plan Allowing For MF Global To Proceed With Liquidation

    NEW YORK - The bankruptcy judge presiding over the Chapter 11 proceeding of MF Global Holdings Ltd. on March 13 approved a plan put forth by the plan proponents that would make it possible for the liquidation to proceed (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).

    GM Says Revstone's Choice Of Restructuring Officer Is 'Unquestionably Conflicted'

    NEW YORK - General Motors LLC (GM) on March 13 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to Revstone Industries LLC's application to employ Huron Consulting Services LLC as a financial adviser, on grounds it is not an independent fiduciary (In Re: Revstone Industries LLC, No. 12-13262, Chapter 11, S.D. N.Y. Bkcy.).

    Bankruptcy Judge OKs Tribune Liquidation Of Retiree Claims For More Than $12.12M

    WILMINGTON, Del. - The bankruptcy judge presiding over the Chapter 11 bankruptcy of Tribune Co. on March 12 issued an order permitting Tribune to liquidate 86 claims brought by retirees of the company by paying $12,120,472.90 (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.).