Docket
The Daily Docket: Washington Mutual Appeals Bankruptcy Decision
Washington Mutual Inc., still reeling from a bankruptcy judge’s second rejection of its $ 7 billion creditor-payment plan, is appealing a ruling that paves the way for its shareholders to pursue insider-trading claims against prominent distressed-debt investors. Read the Daily Bankruptcy Review story here.
A judge denied a bid by Yellowstone Mountain Club LLC’s founder and former owner to sue a pair of parties: the Boston private-equity firm that took control of the club through a restructuring plan and the agent for the club’s lending syndicate. Read the Daily Bankruptcy Review Small Cap story here.
(The Daily Bankruptcy Review and DBR Small Cap are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial to DBR, click here. For DBR SC click here.)
Pennsylvania’s capital city filed for bankruptcy protection from creditors Wednesday, in a case closely watched by other cities and towns looking for ways out of dire financial troubles.Read The Wall Street Journal story here.
Swedish Automobile NV, owner of Saab Automobile AB, said Thursday it has received the first payment of a €70 million bridging loan from a Chinese partner, throwing a financial lifeline to the troubled car maker as it restructures its operations under bankruptcy protection, WSJ reports.
Lehman Brothers Holdings Inc., which lent $ 232.4 million for a resort in Hawaii in 2007, said it intends to take title to the Ritz-Carlton Kapalua after foreclosing on its loan, Bloomberg reports.
The liquidator of Bernard Madoff’s firm said people and companies he has sued in 247 actions are “eviscerating” the bankruptcy court and “perverting” the law by rushing to find new judges for their cases, says Bloomberg.
UBS AG is shutting down its money-making, stand-alone restructuring business, the New York Post reports, citing people with knowledge of the matter.
A Miami bankruptcy trustee has painstakingly tried to recover millions for dozens of investors bilked by convicted Ponzi schemer Nevin Shapiro, the rogue University of Miami booster, the Miami Herald reports.
The Daily Docket: Friendly’s Restaurants Preparing Bankruptcy Filing
The Friendly’s restaurant chain is preparing for a possible Chapter 11 bankruptcy filing and potential sale, The Wall Street Journal reports.
Lehman Brothers Holdings Inc. struck a deal with Bank of America Corp. and Merrill Lynch to reduce by more than $ 4 billion their derivatives claims against the liquidating investment bank, a key step for Lehman as it attempts to get its creditor-payback plan approved by a court later this year. Read the Daily Bankruptcy Review story here in WSJ.
(The Daily Bankruptcy Review and DBR Small Cap are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial to DBR, click here. For DBR SC click here.)
Solar-power equipment manufacturer Stirling Energy Systems Inc. has filed for bankruptcy, adding to a wave of troubles in the solar industry amid soft demand, falling prices and difficulty raising money, WSJ reports.
The Wilpon family, the owners of the troubled New York Mets baseball franchise, is said to be ecstatic that Madoff tustee Irving Picard can’t seek roughly $ 1 billion in principal, profits and damages from the Mets owners, the Journal reports.
The Federal Bureau of Investigation is looking into possible accounting fraud at Solyndra LLC as well as the accuracy of financial data the now-bankrupt maker of solar panels reported to its U.S. government lenders, Bloomberg News reports.
The Philadelphia Orchestra Association is seeking a loan to help fund operations through the end of its bankruptcy case and is seeking permission to assume $ 3.1 million in debt to pay operating costs, the Philadelphia Inquirer reports.
DealBook’s Stephen Lubben says Penn Central’s 1970 bankruptcy may give some insight into the fate that awaits Lehman Brothers Holdings Inc., even as it nears approval of its Chapter 11 plan.
The Daily Docket: Graceway Enters Bankruptcy
Graceway Pharmaceuticals LLC filed for Chapter 11 bankruptcy protection Thursday, one day after announcing its plans to seek a sale of its assets to Galderma S.A. Read the Daily Bankruptcy Review article here.
The lead bidder for Point Blank Solutions Inc.’s assets is dropping its offer by one-third after taking a closer look at the body-armor business. Click here for the DBR Small Cap article.
(The Daily Bankruptcy Review and DBR Small Cap are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial to DBR, click here. For DBR SC, click here.)
Lehman Brothers Holdings Inc. struck deals with Bank of America Corp. and Merrill Lynch, Reuters reports. The deals will reduce the claims against Lehman by $ 7.5 billion combined.
Lawmakers in Pennsylvania took another step toward putting the distressed capital city of Harrisburg into receivership Wednesday, Dow Jones Newswires reports.
According to The Wall Street Journal, a decision Tuesday by Judge Jed Rakoff of the U.S. District Court in Manhattan weakened Bernard Madoff trustee Irving Picard’s ability to recover money. However, the decision only directly applies to the lawsuit against the owners of the New York Mets.
Law professor Stephen Lubben discusses Rakoff’s decision via Credit Slips, suggesting that Congress needs to revisit the safe harbors that exempt many financial dealings from the Bankruptcy Code.
The Philadlephia bankruptcy court Wednesday approved a severance agreement between the Philadelphia Orchestra Association and Peter Nero and the Philly Pops, the Philadelphia Inquirer reports.
Investment group Sun European Partners bought distressed U.K. womenswear company Alexon Group Plc, Dow Jones Newswires reports.
The Daily Docket: Hedge Funds Appeal WaMu Ruling
Four hedge funds accused of insider trading in Washington Mutual Inc.’s bankruptcy case are appealing a ruling that denied confirmation of the company’s Chapter 11 plan and found they could be held to account to shareholders for alleged improper behavior. Read the Daily Bankruptcy Review article here.
Pennsylvania metal manufacturer Hussey Copper Ltd. filed for Chapter 11 bankruptcy protection Tuesday in U.S. Bankruptcy Court in Wilmington, Del., interrupting aggressive expansion at its flagship plant outside Pittsburgh. Click here for the DBR Small Cap article.
(The Daily Bankruptcy Review and DBR Small Cap are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial to DBR, click here. For DBR SC, click here.)
A judge struck down a big chunk of claims by Bernard Madoff trustee Irving Picard against New York Mets owners Fred Wilpon and Saul Katz, The Wall Street Journal reports. Picard is trying to recover about $ 1 billion from the pair.
Also according to WSJ, hedge-fund manager John Paulson is facing a bunch of rival investors who hope he’ll conduct a fire sale of debts and stock holdings.
Law professor Stephen Lubben writes in Dealbook about the possibility of sovereign bankruptcy in Europe.
A congressional proposal would make it harder for companies to enter bankruptcy protection in Wilmington, Del., the Philadelphia Inquirer reports. H.R. 2533 would make companies file for bankruptcy where their headquarters or assets are based, not where they’re incorporated.
According to the Los Angeles Times, some Los Angeles Dodgers season-ticket holders filed a motion in bankruptcy court seeking a say in the team’s bankruptcy case. The group includes Frank Sinatra’s family, which has held season tickets for over 50 years.
H. Ross Perot Jr.’s Hillwood Communities is hoping its Park Higlands development, which was placed in bankruptcy a second time this July, will thrive in an eventual rebound of the Las Vegas housing market, WSJ reports.
The Daily Docket: Judge Approves Borders IP Sale
A judge on Monday approved the $ 13.9 million sale of Borders.com and other Borders Group Inc. intellectual property to its once-fierce rival, Barnes & Noble Inc., after the two sides and a consumer advocate alleviated the judge’s concerns over the privacy rights of Borders’s customers. Read the Daily Bankruptcy Review article here.
Unsecured creditors are throwing their weight against Alexander Gallo Holdings LLC’s auction plans and bankruptcy financing deal, saying both proposals are designed to benefit the court-reporting firm’s lenders at the expense of creditors. Click here for the DBR Small Cap article.
(The Daily Bankruptcy Review and DBR Small Cap are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial to DBR, click here. For DBR SC, click here.)
A federal watchdog faulted Freddie Mac on mortgage reviews, saying it may have given up chances to get back billions of dollars in claims, The Wall Street Journal reports.
Also according to WSJ, the trustee in charge of Taylor Bean & Whitaker Mortgage Corp.’s bankruptcy cases sued law firm Deloitte & Touche LLP Monday. The suit said Taylor Bean’s “grossly negligent audits” contributed to its collapse.
Creditors of Tribune Co. seeking to claw back hundreds of millions of dollars from current and former managers want to let a small group off the hook, the Chicago Tribune reports.
According to the News Journal, the Roman Catholics Diocese of Wilmington, Del., has emerged from bankruptcy after having transferred more than $ 77 million to a fund for sexual-abuse survivors.
J.P. Morgan Chase & Co. wants to move an $ 8.6 billion lawsuit against Lehman Brothers Holdings Inc. to federal court from bankruptcy court, Reuters reports. J.P. Morgan cited the Anna Nicole Smith ruling in the Supreme Court.