LexisNexis® Legal Newsroom
    U.K. Trustee Of Nortel Pension Funds Says Claim For More Than $1.33B Is Valid

    WILMINGTON, Del. - The trustee of Nortel Networks Inc.'s U.K. pension plan, along with the Board of the Pension Protection Fund, on Feb. 8 filed a brief in the U.S. Bankruptcy Court for District of Delaware arguing that it has a valid claim of more than $1.33 billion (In Re: Nortel Networks Inc., No. 09-10138, Chapter 11, D. Del. Bkcy.).

    Bakers Unions Want Hostess Sale Agreements Wording Changed To Reserve Rights

    NEW YORK - The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) and the Bakery and Confectionery Union and Industry International Pension Fund (Fund) on Feb. 8 filed a brief reserving their rights with regard to the plan of bankrupt Hostess Brands Inc. to sell the majority of its snack cake business to affiliates of Apollo Global Management, LLC and Metropoulos & Co. (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).

    Dewey & LeBoeuf Proposes To Settle $80 Million In Partner Claims For $1.35 Million

    NEW YORK - Bankrupt law firm Dewey & LeBoeuf on Feb. 7 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York supporting an agreement between it and two different groups representing former partners that would settle $80 million in claims for $1.35 million (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

    Arcapita Reorganization Plan Relies On $185 Million To Wind Down Operations

    NEW YORK - Bankrupt Arcapita Bank BSC, a Bahrainian entity, on Feb. 8 filed its plan of reorganization in its Chapter 11 bankruptcy proceeding that calls for $185 million in exit financing that conforms with Shariah Law, which is required because the bank is headquartered in an Islamic country (In Re: Arcapita Bank BSC, No. 12-11076, Chapter 11, S.D. N.Y. Bkcy.).

    Elpida Asset Sale Proper; No Reconsideration Needed, Say Foreign Representatives

    WILMINGTON, Del. - The foreign representatives of bankrupt computer chip maker Elpida Memory Inc. on Feb. 8 filed a brief in the U.S. Bankruptcy Court for the District of Delaware contending that the bondholder's motion seeking reconsideration of the sale of Elpida's patents should be denied because there is no evidence to suggest that the sale agreement was not negotiated in good faith (In Re: Elpida Memory Inc., No. 12-10947, Chapter 15, D. Del. Bkcy.).

    U.S. Trustee: GSC's Law Firm Has 'Compromised' Integrity Of Bankruptcy Process

    NEW YORK - The U.S. trustee in the Chapter 11 bankruptcy of GSC Group Inc. on Feb. 7 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, arguing that GSC should not be permitted to retain the law firm representing it because of a conflict of interest (In Re: GSC Group Inc., No. 10-14653, Chapter 11, S.D. N.Y. Bkcy.).

    Curt Schilling May Use $10M Insurance Policy For Costs Of Bankruptcy-Related Case

    WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 7 proceeding of 38 Studios LLC, the former video game manufacturing company of retired Major League Baseball pitcher Curt Schilling, on Feb. 6 ordered that an directors and officers insurance policy could be used to pay defense costs up to $10 million in an underlying lawsuit in Rhode Island state court (In Re: 38 Studios LLC, No. 12-11743, Chapter 7, D. Del. Bkcy.).

    A123 Systems Liquidation Plan: Partial Recovery For Holders Of Subordinated Notes

    WILMINGTON, Del. - Bankrupt alternative energy company A123 Systems Inc. on Feb. 6 filed a liquidation plan under which most creditors would recover 100 percent of their claims, with subordinated noteholders recovering 65 percent of the money they are owed. However, creditor interests based on the issuance of stock in A123 Systems are slated for no recovery (In Re: A123 Systems Inc., No. 12-12859, Chapter 11, D. Del. Bkcy.).

    Dewey & LeBoeuf: Microsoft Software Licensing Claim Should Be Cut By $576,704.97

    NEW YORK - Bankrupt law firm Dewey & LeBoeuf on Feb. 6 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that a claim filed by Banc of America Leasing & Capital LLC (BALC), as collection agent for fees owed to Microsoft Corp., should be reduced by $576,704.97 (In Re: Dewey & LeBoeuf LLP, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

    Bankruptcy Judge Approves $36 Million Settlement Between Thorpe, Insurers

    LOS ANGELES - Reorganized Chapter 11 debtor Thorpe Insulation Co. and its asbestos trust received approval Feb. 6 from a California federal bankruptcy judge of a settlement with three insurance companies that have opposed Thorpe's reorganization. The deal covers three insurance policies and includes a $36 million payment by the insurers to the asbestos trust (In re Thorpe Insulation Co., No. 2:07-bk-19271, C.D. Calif. Bkcy.).

    Nortel Networks Says Claims Against Estate Redundant, Not Supported By Evidence

    WILMINGTON, Del. - Bankrupt Nortel Networks Inc. on Feb. 5 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to claims against the estate on grounds that they were redundant or not supported by the evidence (In Re: Nortel Networks Inc., No. 09-10138, Chapter 11, D. Del. Bkcy.).

    6th Circuit: Debtor Owes No Money; Lender Overbid On Property At Sheriff's Sale

    CINCINNATI - A panel of the Sixth Circuit U.S. Court of Appeals on Feb. 5 affirmed a bankruptcy court's ruling that a debtor did not owe the bank that acted as his mortgage lender any money after the bank overbid for some of the debtor's property that was sold at a sheriff's sale (State Bank of Florence v. Richard K. Miller $(In Re: Richard K. Miller$), No. 11-2357, Chapter 13, 6th Cir.; 2013 U.S. App. LEXIS 2582).

    $72.45M TD Bank Deal Would Bar Other Creditors' Claims In Rothstein Bankruptcy

    FORT LAUDERDALE, Fla. - The trustee overseeing the Chapter 11 liquidation of Rothstein Rosenfeldt Adler (RRA), the bankrupt law firm of convicted Ponzi scheme operator Scott Rothstein, on Feb. 5 filed a liquidation plan that includes a $72.45 million settlement with TD Bank that bars all parties and creditors from asserting claims against the bank or the bankruptcy estate (In Re: Rothstein Rosenfeldt Adler, No. 09-34791, Chapter 11, S.D. Fla. Bkcy.).

    Solyndra Trusts Seek Deal To Resolve White Arrow Claims Valued At $958,760.25

    WILMINGTON, Del. - The Solyndra Residual Trust and the Solyndra Settlement Trust, which are both part of the Chapter 11 bankruptcy proceeding of alternative energy company Solyndra LLC, on Feb. 5 filed a joint motion in the U.S. Bankruptcy Court for the District of Delaware, seeking approval of a stipulation that would resolve claims against the bankruptcy estate by recharacterizing the claims (In Re: Solyndra LLC, No. 11-12799, Chapter 11, D. Del. Bkcy.).

    Bankruptcy Court Approves $25M In Financing For Shipping Company OSG

    WILMINGTON, Del. - The bankruptcy judge presiding over the Chapter 11 proceeding of Overseas Shipholding Group Inc. (OSG) on Feb. 5 issued two orders approving post-petition financing, also known as debtor-in-possession (DIP) financing, worth $25 million (In Re: Overseas Shipholding Group Inc., No. 12-20000, Chapter 11, D. Del. Bkcy.).

    Alternative Energy Company Satcon Seeks Emergency Chapter 7 Conversion

    WILMINGTON, Del. - Bankrupt alternative energy company Satcon Technology Corp. on Feb. 5 filed an emergency motion for an order converting its proceeding to a Chapter 7 bankruptcy because it has received no viable offers for selling its assets (In Re: Satcon Technology Corporation, No. 12-12869, Chapter 11, D. Del. Bkcy.).

    Committee In Allied Chapter 11 Bankruptcy Seeks More Than $57.35M From Creditors

    WILMINGTON, Del. - The Official Committee of Unsecured Creditors for bankrupt Allied Systems Holdings Inc. on Feb. 1 filed a complaint in the U.S. Bankruptcy Court for the District of Delaware, seeking more than $57.35 million in damages against some of the creditors who filed an involuntary Chapter 11 bankruptcy against Allied, claiming that the creditors breached their fiduciary duties (The Official Committee of Unsecured Creditors of Allied Systems Holdings Inc. v. Yucaipa American Alliance Fund $(In Re: Allied Systems Holdings Inc.$), No. 12-11564, Chapter 11, D. Del. Bkcy.).

    California Judge Interprets Asbestos Liability Policies In Insurers' Favor

    SAN FRANCISCO - A California judge on Jan. 31 sided with insurance companies in a long-running dispute with Chapter 11 bankruptcy debtor Plant Insulation Co. over insurance policy coverage for asbestos personal injury claims, finding that the "completed operations" and "products hazard" definitions of the policies apply only where the bodily injury in a given policy period occurs after the operations have been completed or possession of the product has been relinquished (Plant Insulation Company v. Fireman's Fund Insurance Company, et al., No. 06-448618, Calif. Super., San Francisco Co.).

    Bankrupt Video Game Maker THQ Seeks Approval To Settle With Terminated Employees

    WILMINGTON, Del. - Bankrupt video game maker THQ Inc. on Jan. 31 moved in the U.S. Bankruptcy Court for the District of Delaware for authorization to enter into a settlement agreement with some of its terminated employees (In Re: THQ Inc., No. 12-13398, Chapter 11, D. Del. Bkcy.).

    Creditors Withdraw Fraud Case Against Bankrupt WP Steel's Parent Company

    WILMINGTON, Del. - The agent for second lien lenders in the Chapter 11 bankruptcy of RG Steel LLP on Jan. 31 withdrew its motion seeking permission to sue Ira L. Rennert, the principal in charge of Renco Group, which is WP Steel's parent company; the Official Committee of Unsecured Creditors had contended that Rennert breached his fiduciary duties in the course of WP Steel's filing for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware (In Re: WP Steel Venture LLC, No. 12-11661, Chapter 11, D. Del. Bkcy.).

    Bankrupt Powerwave CEO Says Cash Needed, Lender 'Swept' $8.3M From Bank Accounts

    WILMINGTON, Del. - The president of Powerwave Technologies Inc. on Jan. 30 filed a brief in the U.S. Bankruptcy Court for the District of Delaware arguing that the company needs immediate cash to finance its Chapter 11 bankruptcy proceeding because one of its lenders took $8.3 million from Powerwave's accounts without notice (In re: Powerwave Technologies Inc., No. 13-10134, Chapter 11, D. Del. Bkcy.).

    Elpida Ad Hoc Group Says Bankruptcy Court Should Reconsider Asset Sale

    WILMINGTON, Del. - The Steering Committee of the Ad Hoc Group of Bondholders of bankrupt Elpida Memory Inc. on Jan. 30 moved in the U.S. Bankruptcy Court for the District of Delaware for reconsideration of the court's order granting foreign representatives' motion to approve the sale of certain patents (In Re: Elpida Memory Inc., No. 12-10947, Chapter 15, D. Del. Bkcy.).

    5th Circuit: Creditors' Claim Against Bankrupt Pilgrim's Pride Barred By Contract

    NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on Jan. 31 affirmed a bankruptcy court's ruling that claims of estoppel brought by creditors who claimed a breach of contract by bankrupt Pilgrim's Pride Corp. were barred (Clinton Growers v. Pilgrim's Pride Corporation $(In the Matter of: Pilgrim's Pride Corporation$), No. 12-109063, Chapter 11, 5th Cir.; 2013 U.S. App. LEXIS 2201).

    Russell Wasendorf Gets 50-Year Sentence For Fraud Related To Peregrine Bankruptcy

    CEDAR FALLS, Iowa - A federal judge in Iowa on Jan. 31 sentenced Russell R. Wasendorf, the former CEO of bankrupt Peregrine Financial Group Inc., to 50 years in federal prison for stealing more than $215.53 million in customer funds while he operated his commodities futures business (USA v. Russell R. Wasendorf Sr., No. 12-131, N.D. Iowa).

    2nd Circuit Reverses: Creditor In Trafalgar Bankruptcy Can Claim Settlement Money

    NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on Jan. 30 reversed and remanded a bankruptcy court and held that a creditor had a right to claim the money a bankrupt power company won in a settlement with the engineering firm it sued for work done prior to the bankruptcy filing (Algonquin Power Income Fund v. Christine Falls of NY, Inc., et al., No. 11-4945, Chapter 11, 2nd Cir.).