NEW YORK - The Statutory Creditors' Committee of MF Global Holdings Ltd. (MFGH) on April 2 filed a brief supporting confirmation of the joint plan of liquidation in MFGH's Chapter 11 bankruptcy, contending that the plan should be confirmed because it will increase distributions to creditors (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).
CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on March 29 ruled that a debtor couple could not avoid a lien on their condominium and held that the bankruptcy and district courts had not abused their discretion (Bryan D. Hinnen, et al. v. Emerald Hills Condominium Association, No. 12-2922, Chapter 13, 7th Cir.; 2013 U.S. App. LEXIS 6304).
LOS ANGELES - Bankrupt adult entertainment company GGW Brands Inc., the parent company for the maker of "Girls Gone Wild" videos, on March 29 filed a brief contending that a creditor's motion seeking appointment of a trustee should not be granted because the creditor's allegations "distort or misrepresent the facts of the case" (In Re: GGW Brands Inc., No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).
SACRAMENTO, Calif. - A federal bankruptcy judge in California on April 1 ruled that the City of Stockton, Calif., which had filed for Chapter 9 bankruptcy in June, was eligible to seek bankruptcy because the city did not file its petition in bad faith and was indeed insolvent at the time it sought bankruptcy. The bankruptcy judge's decision makes Stockton the largest municipality in the country to file for bankruptcy (In Re: City of Stockton, California, No. 12-32118, Chapter 9, E.D. Calif. Bkcy.).
WILMINGTON, Del. - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy of WP Steel Venture on March 29 sued Cerberus Business Finance in its capacity as a second lien agent and sued the Renco Group Inc. in its capacity as WP Steel's third lien agent, seeking declaratory judgment that Cerberus and Renco do not have any interest in WP Steel's claims, rights and causes of action (In Re: WP Steel Venture, No. 12-11661, Chapter 11, D. Del. Bkcy.).
BOSTON - A panel of the First Circuit U.S. Court of Appeals on March 29 affirmed a bankruptcy court's ruling that a debtor's student loan debts were extinguished and held that the lender that tried to collect on the debt after it had been extinguished abused the bankruptcy process (Barbara J. Hann v. Educational Credit Management Corporation $(In Re: In Re: Barbara J. Hann$), No. 12-9006, Chapter 13, 1st Cir.).
NEW YORK - Capstone Advisory Group LLC, which is the financial advisor to bankrupt GSC Group Inc., on March 29 filed a brief opposing a call for sanctions made by an investment firm that contends that Capstone should be sanctioned for conflict of interest (In Re: GSC Group Inc., No. 10-14653, Chapter 11, S.D. N.Y. Bkcy.).
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of law firm Dewey & LeBoeuf on April 1 approved a settlement among the firm, the firm's former partners and law firm Paul Hastings LLP that will eliminate $41 million in claims against Dewey & LeBoeuf. The claims had been filed by the former partners who alleged that Dewey & LeBoeuf owed them for money the partners were required to pay to secure their partnership interest in the firm (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).
WILMINGTON, Del. - The reorganized version of bankrupt media entity Tribune Co. on March 28 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to $13.25 million in "substantial contribution" applications filed by the Law Debenture Trust Company of New York (LDTCNY) and the Wilmington Trust Co., contending that they are not entitled to fees and expenses for services rendered as indenture trustees (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.).
DENVER - A panel of the 10th Circuit U.S. Court of Appeals on March 28 ruled that a tax court properly upheld tax deficiency rulings against a debtor and said that doing so did not violate the automatic stay (John H. Schoppe v. Commissioner of Internal Revenue, No. 12-9010, Chapter 13, 10th Cir.; 2013 U.S. App. LEXIS 6266).
NEW YORK - The federal judge presiding over a class of investors who sued former MF Global Holdings Ltd. (MFGH) CEO Jon Corzine alleging violations under the Securities Investor Protection Act (SIPA) in the wake of MFGH's Chapter 11 bankruptcy granted preliminary approval March 28 to a settlement that MFGH reached with JP Morgan Chase Bank N.A. that will return $300 million to commodities customers who had money invested with MFGH's consumer investment affiliate MFGlobal Inc. (MFGI). The judge set July 3 as the date for the official hearing on the settlement (Joseph DeAngelis, et al. v. Jon S. Corzine, No. 12-2338, Chapter 11, S.D. N.Y.).
NEW YORK - Digital First Media (DFM), the parent company of bankrupt newspaper company Journal Register Co. (JRC), announced March 28 that the federal bankruptcy judge presiding over its case has granted approval of its motion to sell JRC's assets to 21st CMH Acquisition Co. (In Re: Journal Register Company, No. 12-13774, Chapter 11, S.D. N.Y. Bkcy.).
TRENTON, N.J. - The federal bankruptcy judge overseeing the Chapter 11 proceeding of casino Revel AC Inc. on March 27 approved $250 million in post-petition financing, also known as debtor-in-possession (DIP) financing (In Re: Revel AC Inc., No. 13-16253, Chapter 11, D. N.J. Bkcy.).
NEW YORK - Bankrupt grocer The Great Atlantic & Pacific Tea Co. Inc. (A&P) on March 27 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to certain proofs of claim and contending that they should be disallowed (In Re: The Great Atlantic & Pacific Tea Company Inc., No. 10-24549, Chapter 11, S.D. N.Y. Bkcy.).
CHICAGO - The trustee in the Chapter 7 bankruptcy of Peregrine Financial Group Inc. on March 25 moved in the U.S. Bankruptcy Court for the Northern District of Illinois to compel Halyard Capital Advisors LLC to produce documents pursuant to a subpoena related to the embezzlement of funds from Peregrine (In Re: Peregrine Financial Group Inc., No. 12-27488, Chapter 7, N.D. Ill. Bkcy.).
RIVERSIDE, Calif. - The bankrupt city of San Bernardino, Calif., on March 26 sued the State of California, contending that the state is violating the automatic stay by demanding payment from the city for services. The city also argues that the state cannot withhold revenue it owes the city from sales tax collected from various agencies (In Re: City of San Bernardino, Calif., No. 12-28006, Chapter 9, C.D. Calif. Bkcy.).
DANVILLE, Va. - A federal magistrate judge in Virginia has denied one tobacco company's attempt to collect more than $78,000 in attorney fees as a sanction from a bankrupt tobacco company for production failures, saying March 26 that the defendant's behavior did not warrant sanctions and that the plaintiff had failed to execute a writ of execution (Virginia Brands LLC v. Kingston Tobacco Company Inc., No.: 4:10-cv-9, W.D. Va., Danville Div.; 2013 U.S. Dist. LEXIS 42417).
SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on March 25 ruled that a debtor couple did not act in bad faith when it proposed their Chapter 13 payment plan despite the fact that they did not commit the entirety of their income to paying their creditors (Robert G. Drummond v. David C. Welsh, et al. $(In Re: David C. Welsh, et al.$), No. 12-60009, Chapter 13, 9th Cir.; 2013 U.S. App. LEXIS 5880).
CLEVELAND - Bankrupt holding company AmFin Financial Corp. (AFC) can keep a $195 million tax refund that the Federal Deposit Insurance Corp. argued belongs to an affiliate bank in the FDIC's receivership, a federal judge in Ohio ruled March 26, granting AFC's motion for judgment on the pleadings (Federal Deposit Insurance Corp. v. AmFin Financial Corporation, et al., No. 11-2574, N.D. Ohio; 2013 U.S. Dist. LEXIS 42488).
CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on March 26 ruled that a company that purchased the assets of an insolvent company also became liable for alleged violations of federal labor law that had been asserted by one of the company's employees (Brian Teed v. Thomas & Betts Power Solutions, No. 12-2440, Chapter 7, 7th Cir.).
WILMINGTON, Del. - Wireless communications company Otelco Inc. on March 24 filed a disclosure statement in the U.S. Bankruptcy Court for the District of Delaware, seeking acceptance of a prepackaged reorganization plan on the same day it filed for Chapter 11 bankruptcy (In Re: Otelco Inc., No. 13-10593, Chapter 11, D. Del. Bkcy.).
NEW YORK - The U.S. trustee in the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines Inc., on March 25 filed a sur-reply brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to the proposed $11 billion merger of AMR and US Airways Group Inc. (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).
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).
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.).
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.).