LexisNexis® Legal Newsroom
    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.).

    Hostess Unions Object To Asset Sale, Say Terms Violated, Jobs Not Preserved

    NEW YORK - Two unions filed a brief in the U.S. Bankruptcy Court for the Southern District of New York on March 12 objecting to the sale of certain assets by bankrupt Hostess Brands Inc. on grounds that the company violated its own terms in the sale and the purchasers have not agreed to preserve the jobs of union members (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).

    Equity Committee: Contract Cannot Be Rejected Under Bankruptcy Code

    WILMINGTON, Del. - The Official Committee of Equity Security Holders of bankrupt Tri-Valley Corp. (TVC) on March 12 filed a brief in the U.S. Bankruptcy Court for the District of Delaware contending that the Bankruptcy Court should rule that an agreement between TVC and another party is not an executory contract; therefore, it cannot be rejected pursuant to the Bankruptcy Code (In Re: Tri-Valley Corporation, No. 12-12291, Chapter 11, D. Del. Bkcy.).

    NECC Trustee Wants All Meningitis Outbreak MDL Cases Sent To Bankruptcy Court

    BOSTON - The trustee for the bankrupt New England Compounding Center (NECC) on March 10 asked a multidistrict litigation court overseeing federal meningitis outbreak injury cases to transfer all filed and unfiled, injury and noninjury, and party and nonparty claims to the bankruptcy court for equitable resolution (In Re: New England Compounding Pharmacy, Inc., Products Liability Litigation, MDL Docket No. 2419, No. 1:13-md-2419, D. Mass.).

    Wilmington Trust: ResCap Should Not Bear Costs Of Foreclosure

    NEW YORK - Wilmington Trust National Association, as the indenture trustee for bankrupt Residential Capital LLC (ResCap), on March 11 filed a brief supporting, but also objecting in a limited fashion, to ResCap's motion seeking a determination that the automatic stay prevents enforcement of a foreclosure review (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).

    10th Circuit: Fraudulently Transferred Property Not Part Of Bankruptcy Estate

    DENVER - A panel of the 10th Circuit U.S. Court of Appeals on March 12 ruled that fraudulently transferred property is not part of the bankruptcy estate until it is recovered (Eric C. Rajala v. Robert H. Gardner, et al., No. 12-3113, Chapter 7, 10th Cir.; 2013 U.S. App. LEXIS 4941).

    6th Circuit: Student Loans Nondischargeable Despite Initial, Opposite Decision

    CINCINNATI - A panel of the Sixth Circuit U.S. Court of Appeals on March 12 ruled that a debtor's student loans were nondischargeable despite an earlier decision by a bankruptcy court discharging those obligations (Thomas J. Alfes v. Educational Credit Management Corporation $(In Re: Thomas J. Alfes$), No. 11-2159, Chapter 7, 6th Cir.; 2013 U.S. App. LEXIS 4864).

    Fisker Automotive: Liquidation Plan For A123 Systems Lacks Needed Information

    WILMINGTON, Del. - Fisker Automotive Inc. on March 11 filed a brief in a federal bankruptcy court objecting to the Chapter 11 liquidation plan of alternative energy company A123 Systems Inc., arguing that the disclosure statement A123 has filed fails to provide adequate information (In Re: A123 Systems Inc., No. 12-12859, Chapter 11, D. Del. Bkcy.).

    Howrey Trustee Says Payments To Ex-Partners, Firms Are Fraudulent Transfers

    SAN FRANCISCO - The trustee in the Chapter 11 bankruptcy of Howrey LLP on March 11 filed six adversary complaints in bankruptcy court, seeking recovery of what he alleges are fraudulent transfers made to former partners and their successor law firms (In Re: Howrey LLP, No. 11031376, Chapter 11, N.D. Calif. Bkcy.).

    Geokinetics, Supplier Of Data For Oil Companies, Files For Chapter 11 Bankruptcy

    WILMINGTON, Del. - Geokinetics Inc., which provides seismic data for companies in the oil and natural gas industry, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on March 10, citing more than $350 million in debts (In Re: Geokinetics Inc., No. 13-10472, Chapter 11, D. Del. Bkcy.).

    MF Global Plan Proponents Seek Approval To Proceed With Disclosure, Liquidation

    NEW YORK - The plan proponents in the Chapter 11 proceeding of MF Global Holdings (MFGH) on March 8 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of the disclosure statement, which would allow the plan to proceed (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).

    Investors Say Bankrupt ATP Oil Fraudulently Sold Them $135M In Royalty Rights

    HOUSTON - An investment bank on March 6 filed an adversary complaint against bankrupt ATP Oil & Gas Corp. in the U.S. Bankruptcy Court for the Southern District of Texas, contending that ATP fraudulently sold it $110 million worth of royalty interests prior to filing for bankruptcy (MacQuarie Investments LLC $(In Re: ATP Oil & Gas Corporation$), No. 12-36187, Chapter 11, S.D. Texas Bkcy.).

    Ex-Dewey & LeBoeuf Executives Say Firm Promised Bonuses For Work In 2011

    NEW YORK - Former executives of bankrupt law firm Dewey & LeBoeuf on March 6 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York contending that they are entitled to bonuses they earned in 2011, prior to when the firm filed for Chapter 11 bankruptcy (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

    LodgeNet Chapter 11 Plan Gets OK Based On Exit Financing Greater Than $346.4M

    NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of LodgeNet Interactive Corp. on March 7 approved its reorganization plan that includes exit financing of more than $346.4 million (In Re: LodgeNet Interactive Corporation, No. 13-10238, Chapter 11, S.D. N.Y. Bkcy.).

    Former Tribune Executives: Claims Are Not Property Of Litigation Trustee

    WILMINGTON, Del. - Some former executives of bankrupt Tribune Co. on March 6 filed a brief in the U.S. Bankruptcy Court for the District of Delaware arguing that the litigation trustee should not be substituted as the plaintiff in adversary cases against them because the claims at issue in litigation between the former executives and the Official Committee of Unsecured Credfitors are not property of the litigation trustee (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.).

    Bankruptcy Judge Approves Reorganization Plan For Education Holdings

    WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Education Holdings 1 Inc., formerly known as the Princeton Review, on March 7 issued findings of fact approving Education Holdings' plan of reorganization (In Re: Education Holdings 1 Inc., No. 13-10101, Chapter 11, D. Del. Bkcy.).

    U.S. Trustee In Hostess Case: $8.89M In Fees Sought Are 'Unreasonable'

    NEW YORK - The U.S. trustee in the Chapter 11 bankruptcy of Hostess Brands Inc. on March 6 filed a brief arguing that the attorneys and professionals seeking more than $8.89 million in fees and expenses should receive only a percentage of that money because it is unclear at this stage if there will be enough funds in the bankruptcy estate to pay all the claims (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).

    9th Circuit: Debtor May Claim 'Wildcard Exemption' For Luxury Automobile

    SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on March 5 ruled that a debtor could claim an exemption for her car under both California law and federal bankruptcy law even though it was a luxury automobile (Orange County Credit Union v. Angie M. Garcia $(In Re: Angie M. Garcia$), No. 11-56076, Chapter 7, 9th Cir.).

    U.S. Government Objects To Southern Air Holdings Plan Of Chapter 11 Reorganization

    NEW YORK - The U.S. government on March 6 filed a brief in the U.S. Bankruptcy Court for the District of Delaware contending that the Chapter 11 reorganization plan of bankrupt Southern Air Holdings Inc. should be denied based on its treatment of administrative and subordinated claims against the bankruptcy estate (In Re: Southern Air Holdings Inc., No. 12-12690, Chapter 11, D. Del. Bkcy.).

    Solar Millennium To Cut $212.89M In Claims By Unnamed Amount In Solar Trust Case

    WILMINGTON, Del. - The restructuring officer of bankrupt alternative energy company Solar Trust America AG on March 5 filed a brief supporting the settlement of claims among Solar Trust, the Committee of Unsecured Creditors and Solar Trust's parent Solar Millennium AG (SMAG). Under the settlement, SMAG will reduce its claims against Solar Trust for an undisclosed amount and withdraw its opposition to Solar Trust's plan of reorganization (Official Committee of Unsecured Creditors v. Solar Millennium AG, et al. $(In Re: Solar Millennium AG$) $(In Re: Solar Trust of America LLC$), Adv No. 12-50979, No. 12-11712, No. 12-11136, Chapter 11, D. Del. Bkcy.).

    Pilots: Dispute Interferes With American Airlines Bankruptcy, US Airways Merger

    NEW YORK - A group of pilots for US Airways Group Inc. on March 6 filed an adversary complaint in the Chapter 11 bankruptcy proceeding of AMR Corp., contending that another group of pilots should not be permitted to file a lawsuit in bankruptcy court pertaining to claims that were part of a lawsuit filed prior to the bankruptcy petition because any such lawsuit would interfere with the bankruptcy and the planned merger of American Airlines Inc. and US Airways (US Airline Pilots Association v. Leonidas LLC $(In Re: AMR Corporation$), No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

    3rd Circuit: Creation Of Litigation Trust Does Not Constitute An Asset Sale

    PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on March 5 affirmed a bankruptcy court's decision that the creation of a litigation trust did not constitute an asset sale pursuant to the Bankruptcy Code (The Boeing Company v. In Re: Alabama Aircraft Industries Inc. $(In Re: Alabama Aircraft Industries Inc.$), No. 12-1290, Chapter 11, 3rd Cir.; 2013 U.S. App. LEXIS 4487).

    Bankruptcy Court Erred, Syms Affiliate Argues; Rent Not Owed Under New Mortgage

    WILMINGTON, Del. - Trinity Place Holdings Inc., an entity formed out of bankrupt Syms Corp., on March 5 moved in the U.S. Bankruptcy Court for the District of Delaware for reconsideration of its ruling that Syms was responsible for rent on a property in connection with a loan tied to a mortgage refinancing deal. Trinity Place Holdings maintains that the type of mortgage involved does not obligate Syms to pay rent (In Re: Filene's Basement LLC, No. 11-13511, Chapter 11, D. Del. Bkcy.).