Bankruptcy

  • May 16, 2007

    Musicland's Creditors Sue Banks Over $25M Loan

    A group of entertainment companies have sued two banks over a last-minute $25 million loan paid to Musicland Holding Corp. four months before the retailer filed for bankruptcy.

  • May 16, 2007

    Oracle Joins Opposition To New Century Sale

    Oracle USA has joined others in objecting to New Century's bid to sell its loan servicing business to Carrington Capital Mortgage LLC and Carrington Mortgage Services LLC unless a higher bidder is found.

  • May 16, 2007

    SEC Adds Defendant In NJ Affordable Case

    The $40 million Ponzi scheme scandal that felled NJ Affordable Homes Corp. widened on Monday, with the U.S. Securities and Exchange Commission adding a defendant to its fraud case against the bankrupt real estate company.

  • May 16, 2007

    Dickstein Snatches Lawyers From Orrick

    Dickstein Shapiro LLP has nabbed two attorneys from Orrick, Herrington & Sutcliffe LLP to launch a bankruptcy practice in New York, a development that one former Orrick lawyer says reflects a dwindling headcount at Orrick’s New York bankruptcy group.

  • May 16, 2007

    All American Semiconductor Creditors Object To Loan

    The unsecured creditors of All American Semiconductor Inc. have filed a motion objecting to the company’s request to use cash collateral, claiming it will only benefit All American’s secured lenders.

  • May 17, 2007

    Judge Grants Bid To Toss BioSafe's Ch. 11 Case

    BioSafe Medical Technologies Inc. has ducked out of bankruptcy after a judge on Tuesday granted a joint motion to dismiss an involuntary Chapter 11 petition filed on behalf of the home medical testing company’s creditors.

  • May 15, 2007

    Creditors Defend Northwest Plan

    Responding swiftly to objections of Northwest Airlines Corp.’s strategy for exiting bankruptcy, a creditors group has thrown its weight behind the plan, saying the carrier is poised to emerge a healthy and viable company.

  • May 15, 2007

    Calpine Settles With Canadian Subsidiaries

    Bankrupt energy company Calpine Corp. has reached a settlement with its Canadian subsidiaries which, if approved, will eliminate $1.1 billion in claims in the company’s Chapter 11 proceedings.

  • May 15, 2007

    Banks Balk At New Century’s Foreclosure Proposal

    HSBC Bank USA and Washington Mutual have objected to New Century’s motion for relief from its automatic stay, arguing that the company’s suggested protocol for handling foreclosure proceedings is unfair.

  • May 16, 2007

    Bondholders Blast Pacific Lumber's Extension Bid

    Joining a growing chorus of opponents, Pacific Lumber Co.’s bondholders have objected to the company’s request to retain exclusive control over its Chapter 11 case for another four months, arguing that the timber company still has no idea about what type of plan to propose.

  • May 16, 2007

    New Century Requests Skadden, Irell & Manella

    Subprime lender New Century Financial Corp. has asked the bankruptcy court overseeing its Chapter 11 proceedings to approve the employment of two high-profile law firms for specialized services, including regulatory and employee benefit counsel.

  • May 14, 2007

    Bingham, Auditor Spar Over Owens Corning Fees

    Owens Corning may be out of bankruptcy, but Bingham McCutchen LLP, which served as special international counsel and co-counsel to the debtors, is still sparring with the fee auditor in the case over its final fee application.

  • May 14, 2007

    Dana, Creditors Say Goodyear's Claim Too Late

    Bankrupt auto parts maker Dana Corp. and its official committee of unsecured creditors have filed objections to claims filed by Goodyear Tire and Rubber Company in March, about six months after the deadline to file claims had passed.

  • May 14, 2007

    St. Vincent Trustee Objects To Disclosure Statement

    A U.S. Trustee has urged a bankruptcy court to deny approval of St. Vincent Catholic Medical Center's disclosure statement, arguing in court documents Friday that the bankrupt health care system’s statement is “deficient."

  • May 14, 2007

    Northwest Wants Report Kept Under Wraps

    An examiner appointed by the bankruptcy court to investigate allegations that Northwest Airlines Corp. is considering a merger behind shareholders’ backs has asked that his report be kept confidential at the behest of the airline.

  • May 14, 2007

    Fox Seeks More Than $30M From Musicland

    Twentieth Century Fox Home Entertainment LLC, a vendor in Musicland Holding Corp.’s bankruptcy case, has asked the bankruptcy court to overrule the official committee of unsecured creditors’ objection to Fox’s proof of claim of more than $30 million.

  • May 15, 2007

    King & Spalding Opens Bankruptcy Practice In Texas

    International law firm King & Spalding LLP has recruited two veteran Texan bankruptcy attorneys to head up its financial restructuring practice in Houston.

  • May 15, 2007

    Judge Squashes Request For New Century Trustee

    A bankruptcy judge has rejected a government request that a U.S. Trustee be appointed to oversee subprime lender New Century Financial Corp.’s Chapter 11 case.

  • May 14, 2007

    Judge Rejects Congoleum’s $25M Pact With Insurers

    Delivering another blow to Congoleum Corp., a bankruptcy judge has denied the flooring manufacturer’s request for approval of a $25 million settlement with a band of its insurers, unconvinced that it would be a good deal for creditors.

  • May 14, 2007

    Delphi Reaches Truce With Electronic Data Systems

    After much wrangling, Delphi Corp. has asked a bankruptcy court to approve a settlement with Electronic Data Systems Corp., the creditor that helped unravel an alleged accounting fraud at the beleaguered auto parts company.