LexisNexis® Legal Newsroom
In Demand LLC Sues Trustee, Subsidiary In Bankruptcy Of 'Girls Gone Wild'

LOS ANGELES - In Demand LLC, a video entertainment conglomerate, on May 21filed an adversary complaint in the Chapter 11 proceeding of GGW Brands LLC, the parent company of adult video maker "Girls Gone Wild," seeking $118,000 which it says is overdue pursuant to a licensing agreement with GGW. On the same day, a bankruptcy judge granted the trustee's motion to file for Chapter 11 bankruptcy on behalf of GGW Marketing LLC (In Demand LLC v. Argyle Media Sales LLC, et al. $(In Re: GGW Brands LLC$), No 13-15130, Chapter 11, C.D. Calif. Bkcy.).

Bankruptcy Judge Sets Specialty Products' Asbestos Liability At $1.16 Billion

WILMINGTON, Del. - Former joint compound producer Bondex International Inc. and its related holding company Specialty Products Holding Corp. face an estimated $1.16 billion in pending and future asbestos personal injury claims, about double what the companies estimate their asbestos liabilities at, a federal bankruptcy judge in Delaware overseeing the companies' joint Chapter 11 case ruled May 20 (In re: Specialty Products Holding Corp., et al., No. 10-11780, D. Del. Bkcy.; 2013 Bankr. LEXIS 2051).

7th Circuit Rules Clause In Loan Contract With Debtor Couple Proper

CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on May 20 reversed a district court ruling and held that a cross-colleteralization clause in a loan agreement between a bank and a debtor couple was not invalid (Peoples National Bank v. Banterra Bank, No. 12-3079, Chapter 11, 7th Cir.; 2013 U.S. App. LEXIS 10034).

Bankruptcy Judge OKs A123's Liquidation Plan; Most Claims Repaid In Full

WILMINGTON, Del. - The bankruptcy judge presiding over the Chapter 11 liquidation of alternative energy company A123 Systems Inc. on May 20 confirmed the company's 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 (In Re: A123 Systems Inc., No. 12-12859, Chapter 11, D. Del. Bkcy.).

AMF Bowling Seeks Approval Of $310M Loan With Credit Suisse, Merger With Bowlmor

RICHMOND, Va. - Bankrupt AMF Bowling Worldwide Inc. on May 18 moved in the U.S. Bankruptcy Court for the Eastern District of Virginia for authorization to enter a credit agreement with Credit Suisse Securities LLC with a total value of $310 million that would also merge the company with Bowlmor, an independent operator of bowling centers (In Re: AMF Bowling Worldwide Inc., No. 12-36495, Chapter 11, E.D .Va. Bkcy.).

Tax Refunds Belong To Bank's Holding Company, Not FDIC, Judge Finds

SAN DIEGO - The Federal Deposit Insurance Corp., as the receiver for the failed Imperial Capital Bank, is not entitled to $30 million in tax refunds, a federal judge in California ruled May 16, finding that the funds instead belong to the bank's holding company (Imperial Capital Bancorp Inc. v. Federal Deposit Insurance Corp., No. 10-1991, N.D. Calif.).

Howrey Committee, Trustee Want To Sue Law Firms For 'Unfinished Business'

SAN FRANCISCO - The Official Committee of Unsecured Creditors and the trustee in the Chapter 11 bankruptcy of former law firm Howrey LLP on May 20 moved in bankruptcy court for permission to prosecute and settle various pending causes of action that are potential assets of the bankruptcy estate (In Re: Howrey LLP, No.11-31376, Chapter 11, N.D. Calif. Bkcy.).

Viacom Wins Dismissal Of Contributory, Vicarious Trademark Allegations

LOS ANGELES - Claims by Gibson Guitar Corp. that Viacom International Inc. committed contributory and vicarious infringement of Gibson's "Flying V" trademark were dismissed with prejudice May 17 by a California federal judge (Gibson Guitar Corporation v. Viacom International Inc. and John Hornby Skewes & Co. Ltd., No. 12-10870, C.D. Calif.).

3rd Circuit: Debtors Should Have Disclosed Claims In Bankruptcy Proceeding

PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on May 17 affirmed a lower court's ruling that a debtor couple were responsible for inconsistencies in their bankruptcy petition as well as the nondisclosure of claims that should have been included in their bankruptcy schedules (J.H. Group LLC d/b/a Ocean Rolling Chairs, et al. v. Royal Rolling Chairs LLC, No. 12-3476, Chapter 11, 3rd Cir.; 2013 U.S. App. LEXIS 9898).

U.S. Supreme Court Refuses To Review Dismissal Of Village's Environmental Suit

WASHINGTON, D.C. - The U.S. Supreme Court on May 20 denied an Alaska village's petition for review of a Ninth Circuit U.S. Court of Appeals decision affirming the dismissal of its suit claiming that emissions from a number of power companies have resulted in erosion that threatens its existence (Native Village of Kivalina, et al. v. ExxonMobil Corporation, et al., No. 12-1072, U.S. Sup.).

Pittsburgh Corning's Chapter 11 Reorganization Plan Confirmed

PITTSBURGH - Thirteen years after seeking bankruptcy protection from hundreds of thousands of asbestos personal injury claims, building products manufacturer Pittsburgh Corning Corp. (PCC) on May 16 received confirmation from a Pennsylvania federal bankruptcy judge for a plan of reorganization that establishes a more than $2 billion trust to pay those claims and future asbestos demands (In re: Pittsburgh Corning Corporation, No. 00-22876, W.D. Pa. Bkcy.; 2013 Bankr. LEXIS 2030).

'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.).