Bankruptcy Law360 provides breaking news and analysis on bankruptcy law. Coverage includes corporate bankruptcies and out-of-court restructurings, as well as corporate distress and imminent bankruptcy and policy developments that affect bankruptcy law.
Blaming an over-leveraged, $2.1 billion debt load and a tough retail environment, Claire's Stores Inc. drove its 7,500-location beauty, accessories and ear piercing business into Delaware bankruptcy court on Monday, proposing to restructure $1.9 billion in obligations.
Bankrupt distressed investment vehicles the Zohar Funds hit back Friday against a bid by their collateral manager to lift the automatic litigation stay, saying the litigation it wants to move forward is not a pressing matter in the Chapter 11 cases.
A Massachusetts federal judge denied bids by two alleged former promoters of TelexFree LLC to escape a U.S. Securities and Exchange Commission lawsuit on Friday, saying the government had identified specific statements both had made to members of the state’s Dominican community urging them to invest in a company authorities have called a $340 million pyramid scheme.
Pennsylvania revenue officials lodged a preemptive $3.8 billion tax claim against bankrupt Philadelphia Energy Solutions LLC on Friday, along with an objection to the big refinery’s prepackaged, high-speed Chapter 11 reorganization.
The IRS is pushing back against the $3.6 million clawback suit brought by the bankruptcy trustee of doomed Ponzi vehicle DBSI Inc., telling an Idaho federal court the tax agency is merely a “conduit,” no different from a bank, and therefore immune to this type of avoidance action.