NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Eastman Kodak Co. on July 19 ordered that the claims of a creditor who sought $250 million would be reduced to $125 million solely for the purposes of voting on an amended plan of reorganization (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).
GREAT FALLS, Mont. - A group of insurance companies who are creditors in the Chapter 11 bankruptcy of the Southern Montana Electric Generation and Transmission Cooperative Southern Montana on July 18 filed a brief arguing that the motion of the Unsecured Creditors Committee to convert the bankruptcy to a Chapter 7 liquidation is "entirely unnecessary" (In Re: Southern Montana Electric Generation and Transmission Cooperative, No. 11-62031, Chapter 11, D. Mont.).
DETROIT - The City of Detroit, the largest municipality to file for Chapter 9 bankruptcy, on July 19 moved in bankruptcy court for application of the automatic stay to state entities, non-officer employees and agents and representatives of the city (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
CINCINNATI - A Sixth Circuit U.S. Court of Appeals panel on July 17 upheld a federal judge in Michigan's ruling refusing to reopen a woman's class action lawsuit challenging the foreclosure on her home, finding that consent orders entered into between two defendants and the Office of the Comptroller of the Currency (OCC) in April 2011 did not affect the outcome of her case (Patricia Green, et al. v. Bank of America Corporation, et al., No. 12-2275, 6th Cir.; 2013 U.S. App. LEXIS 14673).
NEW YORK - Four foreign shipping companies on July 17 filed a memorandum in a New York federal court in support of their petition to confirm a London arbitration award that was issued in their favor and against an oil corporation in a charterparty dispute (Roxy Inc., et al. v. International Oil Overseas Inc., et al., No. 1:12-cv-03625, S.D. N.Y.).
ST. LOUIS - A panel of the Eighth Circuit U.S. Court of Appeals on July 19 affirmed a district court's ruling that held that sanctions were appropriate against the president of a company that filed for Chapter 11 bankruptcy because she had been warned not to file briefs containing unsubstantiated allegations and did so anyway (Naomi Isaacson v. Nauni Jo Manty, No. 12-2384, Chapter 7, 8th Cir.; 2013 U.S. App. LEXIS 14629).
NEW HAVEN, Conn. - A reinsurer asked a Connecticut federal court on July 18 to stay or dismiss a reinsurance dispute because the reinsurer and its reinsured are allegedly bound by an arbitration clause to settle their dispute (Travelers Casualty & Surety Company f/k/a The Aetna Casualty and Surety Company v. Excalibur Reinsurance Corporation f/k/a PMA Capital Insurance Company, No. 13-cv-00752, D. Conn.).
NEW YORK - RDA Holding Co., the parent company for publisher Reader's Digest, on July 17 filed a brief in bankruptcy court objecting to employee indemnification claims on grounds that they should be expunged until there is an effective date when the reorganization plan will be implemented (In Re: RDA Holding Co., No. 13-22233, Chapter 11, S.D. N.Y. Bkcy.).
NEW YORK - Bankrupt Arcapita Bank B.S.C. on July 18 moved for bankruptcy court approval of its request to sell its nondebtor subsidiary 3PD Inc. to a logistics company for $365 million (In Re: Arcapita Bank B.S.C., No. 12-11076, Chapter 11, S.D. N.Y. Bkcy.).
DETROIT - The City of Detroit on July 18 filed for Chapter 9 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Michigan as its emergency manager declared that the city is insolvent and that, absent restructuring, he projects cash flows of negative $198.5 million in the current fiscal year, with that number likely to jump to negative $260.4 million in fiscal year 2015 (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).
NEW YORK - A creditor in the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines Inc., on July 17 filed a brief in bankruptcy court arguing that the bankruptcy court should deny the company's motion to set a maximum limit on the amount to be paid on disputed claims (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).
DENVER - A panel of the 10th Circuit U.S. Court of Appeals on July 17 partially reversed a ruling and held that a liquidating trustee had jurisdiction to sue the directors and officers of a Canadian company whose U.S. affiliate filed for bankruptcy on grounds that the officers did enough business in the United States for them to be sued in federal district court (P. David Newsome Jr. v. William Gallacher, et al., No. 12-5068, Chapter 11, 10th Cir.; 2013 U.S. App. LEXIS 14415).
RICHMOND, Va. - A Fourth Circuit U.S. Court of Appeals panel on July 17 upheld a ruling barring a co-defendant in an adversary proceeding to a bankruptcy case from testifying as a sanction for numerous discovery violations after finding that the decision was not prejudicial to the challenging defendant (Southern Management Corporation Retirement Trust v. Charles Timothy Jewell, et al., No. 12-2319, 4th Cir.; 2012 U.S. App. LEXIS 14434).
NEW YORK - The liquidating trustee for the Chapter 11 bankruptcy of Getty Petroleum Marketing Inc.(GPMI) on July 17 moved in bankruptcy court for approval of a deal in which Lukoil Americas Corp. would pay $93 million to GPMI to settle claims related to allegedly fraudulent transfers before GPMI filed for bankruptcy (Getty Petroleum Marketing Inc. v. Lukoil Americas Corporation, et al. $(In Re: Getty Petroleum Marketing Inc.$), Adv. No. 11-02942, No. 11-15606, Chapter 11, S.D. N.Y. Bkcy.).
PHILADELPHIA - A federal judge in Pennsylvania confirmed an arbitration award on June 15, finding that the award was rational and that the arbitration panel did not exceed its power (Platinum Underwriters Bermuda, Ltd. v. Excalibur Reinsurance Corporation, No. 12-mc-00070, E.D. Pa.; 2013 U.S. Dist. LEXIS 98671).
LOS ANGELES - The trustee of Bankrupt GGW Brands LLC, the producer of adult videos carrying the name "Girls Gone Wild," on July 15 moved for bankruptcy court approval of a stipulated agreement that would resolve a $31 million claim against the GGW bankruptcy estate made by Wynn Las Vegas LLC and its principal, Stephen A. Wynn (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).
MINNEAPOLIS - A Minnesota federal judge on July 15 conditionally certified a class of beauty school admissions representatives seeking overtime compensation after first dismissing the reps' record-keeping claims (Michelle Le, et al. v. Regency Corporation d/b/a Regency Beauty Institute, et al., No. 13-391, D. Minn.; 2013 U.S. Dist. LEXIS 98276).
NEW YORK - Creditors of bankrupt law firm Dewey & LeBoeuf on July 16 filed a brief arguing that the bankruptcy court should permit them to file a late claim for $15 million as a result of alleged malpractice by one of the firm's attorneys (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).
NEW HAVEN, Conn. - A federal judge in Connecticut on July 12 granted a motion to dismiss and compel arbitration, holding that a valid arbitration agreement exists between a reinsurer and a nonsignatory to a reinsurance agreement (Trenwick America Reinsurance Corporation v. Unionamerica Insurance Company Limited, No. 13-cv-00094, D. Conn.; 2013 U.S. Dist. LEXIS 97518).
WILMINGTON, Del. - The Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy of Exide Technologies on July 16 filed a brief objecting to the company's request for bankruptcy court approval of $500 million in post-petition financing, also known as debtor-in-possession (DIP) financing, on grounds that the case control milestones encompassed in the loan are "extremely prejudicial" (In Re: Exide Technologies, No. 13-11482, Chapter 11, D. Del. Bkcy.).
TRENTON, N.J. - Directors and officers of a company told a New Jersey federal court on July 11 that they have remedied a shareholder's complained-of issues and that the shareholder's suit against them is therefore moot (Justin Holland v. New Jersey Resources Corporation, et al., No. 12-cv-07858, D. N.J.).
ATLANTA - The 11th Circuit U.S. Court of Appeals on July 15 affirmed the dismissal of attempted monopolization claims brought by the losing bidder in a bankruptcy auction of a steel mill's assets against the successful bidder, finding that there was high cross-elasticity of supply, which deters monopoly pricing (Gulf States Reorganization Group, Inc. v. Nucor Corporation, No. 11-14983, 11th Cir.; 2013 U.S. App. LEXIS 14187).
NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on July 15 reversed a District Court ruling and held that more evidence was needed to determine whether the automatic stay applied in a case where the Federal Housing Finance Agency (FHFA) sued the parent and affiliates of Bankrupt Residential Capital (ResCap) related to home loans (Residential Capital v. Federal Housing Finance Agency $(In Re: Residential Capital LLC$), No. 12-3342, Chapter 11, 2nd Cir.).
SAN FRANCISCO - An insurer has no duty to defend its insured against counterclaims as they are currently pleaded in an underlying patent infringement lawsuit, a California federal judge ruled July 12 (Travelers Property Casualty Company of America v. KFx Medical Corporation, No. C 13-00710 JSW, N.D. Calif.; 2013 U.S. Dist. LEXIS 97777).
WILMINGTON, Del. - The U.S. trustee in the Chapter 11 bankruptcy case of OnCure Holdings Inc. on July 12 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to the more than $425,000 retainer the company proposes to pay its bankruptcy counsel, on grounds that it does not meet the criteria for what is called an evergreen retainer (In Re: OnCure Holdings Inc., No. 13-11540, Chapter 11, D. Del. Bkcy.).