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'Girls Gone Wild' Entities: Trustee Is 'Frankly Absurd' Regarding Marketing Group

LOS ANGELES - Three of the subsidiary parties associated with bankrupt GGW Brands LLC, the parent company of adult video maker "Girls Gone Wild," on May 20 filed an additional brief opposing the trustee's motion seeking authority to file a Chapter 11 petition on behalf of GGW Marketing LLC, arguing that the trustee's position is "frankly absurd" (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).

Bankrupt Oil Company GMX Seeks Bankruptcy Court's OK For $338M Asset Sale

OKLAHOMA CITY - Bankrupt oil and natural gas exploration company GMX Resources Inc. on May 16 moved in bankruptcy court for approval of its plan to sell all of its assets to a stalking horse bidder for $338 million (In Re: GMX Resources Inc., No. 13-11456, Chapter 11, W.D. Okla. Bkcy.).

MF Global Customers Say They Are Entitled To Recovery Of More Than $300M In Funds

NEW YORK - Commodities customers who invested money with MF Global Inc., an affiliate of bankrupt MF Global Holdings Ltd. (MFGH), on May 17 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, contending that their claim to more than $300 million in funds is "indisputably" valid (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).

'Girls Gone Wild' Parties: Transfers Not Fraudulent, Trustee's Motion 'Moot'

LOS ANGELES - Three of the subsidiary parties associated with bankrupt GGW Brands LLC, the parent company of adult video maker "Girls Gone Wild," on May 14 filed a brief opposing the trustee's motion seeking authority to revoke cancellation and file a Chapter 11 petition on behalf of GGW Marketing LLC. The subsidiaries argue that GGW Marketing is not a subsidiary of GGW Brands and, therefore, the trustee's allegations of fraudulent transfers "fail" (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).

Bankruptcy Court Approves Revel Casino's Plan Of Reorganization

TRENTON, N.J. - The federal bankruptcy judge presiding over the Chapter 11 case of casino Revel AC Inc. on May 15 filed a final confirmation order approving the casino's reorganization plan, resolving the objections of American International Group Inc. (AIG) pertaining to its $14 million claim and Konami Gaming Inc. regarding intellectual property rights (In Re: Revel AC Inc., No. 13-16253, Chapter 11, D. N.J. Bkcy.).

Insurer: ResCap's Motion To Strike Objection To Securities Deal Is 'Frivolous'

NEW YORK - MBIA Insurance Corp. (MBIA), an unsecured creditor in the Chapter 11 bankruptcy of Residential Capital LLC (ResCap), on May 14 filed a brief contending that as a member of the Committee of Unsecured Creditors, it had "every right" to express its views about the reasonableness and fairness of the proposed Residential Mortgage-Backed Securities settlement and that ResCap's motion to strike is "frivolous" (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).

AMR: $1.6B Deal With Some Creditors Paves Way For Reorganization Plan Approval

NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines Inc., on May 14 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of a $1.6 billion settlement with certain consenting creditors that the company says will help it win approval for its Chapter 11 plan of reorganization (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

Direct Purchasers Oppose Chinese Vitamin C Makers' Motion To Vacate Judgment

NEW YORK - A direct purchaser class on May 10 opposed Chinese vitamin C manufacturers' renewed motions for judgment and motion to reduce by $22.5 million a $253.3 million damages award in favor of the class on its allegations that Chinese corporations participated in an illegal cartel to fix prices and limit supply for exports of vitamin C to the United States (In re Vitamin C Antitrust Litigation $(Animal Science Products, Inc., et al. v. Hebei Welcome Pharmaceutical Co. Ltd., et al.$), No. 06-md-1738, No. 05-cv-0453, E.D. N.Y.).

Bankrupt Rotech Healthcare Gets Final Approval Of $30M In Post-Petition Funding

WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 11 proceeding of Rotech Healthcare Inc. on May 14 issued a final order approving $30 million in post-petition financing, also called debtor-in-possession (DIP) financing (In Re: Rotech Healthcare Inc., No. 13-10741, Chapter 11, D. Del. Bkcy.).

Rothstein Ponzi Victims: Trustee's Liquidation Plan Unfairly Favors TD Bank

FORT LAUDERDALE, Fla. - Creditors of bankrupt law firm Rothstein Rosenfeldt Adler (RRA) who were victims of Scott Rothstein's $1.2 billion Ponzi scheme filed a brief on May 13 arguing that the trustee has proposed a liquidation plan that it too favorable to TD Bank NA, which the customers contend played a role in operating the Ponzi scheme (In Re: Rothstein Rosenfeldt Adler, No. 09-34791, Chapter 11, S.D. Fla. Bkcy.).

Magistrate Judge Limits Request For Deposition Witnesses From Government

WASHINGTON, D.C. - A federal magistrate judge in the District of Columbia on May 13 ruled that the federal government should produce a witness for a Federal Rule of Civil Procedure 30(b)(6) deposition in response to Lockheed Martin Corp.'s (LMC) request for information regarding the government's operation of Credit Cost Principle related to the company's lawsuit under the Comprehensive Environmental Response, Compensation, and Liability Act, but found that requests concerning five other topics were overbroad (Lockheed Martin Corporation v. United States of America, No. 08-1160, D. D.C.; 2013 U.S. Dist. LEXIS 674399).

Committee Movants In Rothstein Chapter 11 Bankruptcy Want Subpoenas Quashed

FORT LAUDERDALE, Fla. - A group called the Committee Movants in the Chapter 11 bankruptcy of Rothstein Rosenfeldt Adler (RRA), the former law firm of convicted Ponzi scheme operator Scott Rothstein, on May 13 moved in a Florida bankruptcy court to quash subpoenas on grounds that they do not identify who is seeking discovery and that some of the discovery sought is privileged (In Re: Rothstein Rosenfeldt Adler, No. 09-34791, Chapter 11, S.D. Fla. Bkcy.).

U.S. Trustee In GSC Group Case Says Financial Adviser Should Return $8.95M In Fees

NEW YORK - The U.S. trustee in the Chapter 11 bankruptcy of GSC Group Inc. on May 13 filed a brief in further support of a motion seeking disgorgement of $8.95 million in fees by GSC's financial adviser, Capstone Advisory Group LLC, for its failure to "make truthful and complete disclosures" regarding its relationship with the liquidating trustee (In Re: GSC Group Inc., No. 10-4653, Chapter 11, S.D. N.Y. Bkcy.).

Peregrine Financial Trustee: Commodities Customer Class Action Should Be Stayed

CHICAGO - The trustee in the Chapter 7 bankruptcy of former financial company Peregrine Financial Group on May 8 filed an adversary complaint in a federal bankruptcy court against a class of former Peregrine commodities customers, arguing that the class action should be stayed in order to allow maximum recovery for the former financial company's creditors (Ira Bodenstein v. Brian Pannkuk, et al. $(In Re: Peregrine Financial Group Inc.$), No. 12-27488, N.D. Ill. Bkcy.).

Dewey & LeBoeuf Trustee Says He Will Not Be 'Bullied' By Former Partners

NEW YORK - The liquidating trustee for the Dewey & LeBoeuf Liquidation Trust on May 10 filed a brief saying that he will "not be bullied" by two former executives of bankrupt firm Dewey & LeBoeuf who allege that he has a conflict of interest regarding the more than $19.5 million settlement reached among the Dewey & LeBoeuf Liquidation Trust, XL Specialty Insurance Co. and Steven H. Davis. The liquidation trustee contends that the former executives are trying to "aggravate" him into dropping a claw-back suit against them (In Re: Dewey & LeBoeuf, No. 12-12321, Chapter 11, S.D. N.Y. Bkcy.).

U.S. Supreme Court Remands Bankruptcy Defalcation Case, Says Higher Standard Needed

WASHINGTON, D.C. - The U.S. Supreme Court on May 13 unanimously vacated and remanded a case involving a bank's claim that a debtor who had acted as trustee for his father's insurance trust was guilty of defalcation for making loans to himself during the time he had control of the trust, ruling that the 11th Circuit U.S. Court of Appeals needed to review the case to determine if it should apply the higher standard of "defalcation" outlined by the high court (Randy Curtis Bullock v. BankChampaign, No. 11-1518, Chapter 7, U.S. Sup.).

Magistrate Judge: Plaintiffs Can't Share Discovery Across 5 Related MDLs

CHARLESTON, W. Va. - A West Virginia federal magistrate judge overseeing five pelvic mesh multidistrict litigations on May 9 denied a plaintiffs' motion to modify pretrial orders to allow them to exchange confidential information among MDLs (In Re: American Medical Systems, Inc., Pelvic Repair Systems Product Liability Litigation, MDL Docket No. 2325, No. 2:12-md-2325, In Re: C.R. Bard, Inc. Pelvic Repair System Products Liability Litigation, MDL Docket No. 2187, No. 2:10-md-2187, In Re: Boston Scientific Corporation Pelvic Repair System Products Liability Litigation, MDL Docket No. 2326, 2:12-md-2326, In Re: Ethicon, Inc., Pelvic Repair System Products Liability Litigation, MDL Docket No. 2327, No. 2:12-md-2327, In Re: Coloplast Pelvic Repair Systems Products Liability Litigation, MDL Docket No. 2387, No. 12-md-2387, S.D. W. Va., Charleston Div.).

Rooker-Feldman Doctrine Bars Creditor's Secured Claim, 8th Circuit Rules

ST. LOUIS - A panel of the Eighth Circuit U.S. Court of Appeals on May 9 ruled that a bankruptcy court properly applied the Rooker-Feldman doctrine in ruling that a creditor's administrative expense claim should be disallowed (Thomas P .Cawley v. Frank Celeste $(In Re: Athens/Alpha Gas Corporation$), No. 12-1555, Chapter 11, 8th Cir.; 2013 U.S. App. LEXIS 9446).

AMR Proposes Deal Cutting More Than $154.57 Million From Claims Asserted By FAA

NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines Inc., on May 9 moved for approval of a settlement with the Federal Aviation Administration that would reduce by $142,274,609 the allowed claims the FAA has related to litigation of alleged violations of federal aviation law and would reduce by $12.3 million the penalties associated with those alleged violations (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

New York Federal Judge Refuses To Certify Class Of Hearst Interns

NEW YORK - A New York federal judge on May 8 denied both a partial summary judgment motion and a class certification motion filed on behalf of interns at 19 magazines owned by The Hearst Corp. who seek unpaid compensation, abandoning a July 12 grant of conditional certification (Xuedan Wang, et al. v. The Hearst Corporation, No. 12-793, S.D. N.Y.; 2013 U.S. Dist. LEXIS 65869).

New Collective Bargaining Agreements Could Save $87M, AMR Contends

NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines Inc., on May 9 sought approval of a memorandum of understanding regarding contingent collective bargaining agreements (CBAs) among American Airlines, US Airways Inc. and two pilots unions that AMR contends could save the company $87 million (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.)

2nd Circuit Says Sanctions Affirmed Against Creditor Who Ignored Subpoena

NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on May 9 ruled that an order awarding sanctions was final and appealable and remanded the case to a district court with instructions to affirm the penalty against a creditor who failed to comply with a subpoena in the Chapter 11 bankruptcy of Lothian Oil USA Inc. (Lothian Oil USA Inc., et al. v. Jessica Mara Sokol, No. 11-3911, Chapter 11, 2nd Cir.; 2013 U.S. App. LEXIS 9377).

Bankruptcy Judge Confirms Thorpe Insulation Co.'s Reorganization Plan On Remand

LOS ANGELES - Reorganized Thorpe Insulation Co.'s Chapter 11 plan of reorganization, revised to reflect settlements reached on remand with all of the remaining insurance companies objecting to the plan, received confirmation again May 8 from a California federal bankruptcy judge, who said that once the plan is effective, the last appeals to the case in the Ninth Circuit U.S. Court of Appeals will be withdrawn (In re Thorpe Insulation Co., No. 2:07-bk-19271, C.D. Calif. Bkcy.).

Shareholders Say Presuit Demand On Company's Subsidiary Is Not Necessary

CHICAGO - Shareholders told an Illinois federal court on May 6 that presuit demand upon the board of a wholly owned subsidiary of a financial company is not required before filing suit against the subsidiary's parent corporation (James F. Groen, et al. v. David W. Nelms, et al., No. 12-cv-06436, N.D. Ill.).

Federal Agency: Commodities Claims Should Not Be Subordinated In MFGH Case

NEW YORK - The U.S. Commodity Futures Trading Commission (CFTC) on May 9 filed a brief in the Chapter 11 bankruptcy of MF Global Holdings Ltd. (MFGH) opposing the amended 13th objection of proponents of the company's liquidation plan, arguing that its claims on behalf of commodities that were damaged by MFGH's bankruptcy should not be subordinated (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).