Bankruptcy

  • February 22, 2006

    Judge Close To Approving $5.8B Enron Deal

    In a deal that further swells record-setting payouts to aggrieved investors following Enron’s accounting scandal and bankruptcy, a federal judge in Houston is close to approving a $5.8 billion settlement from three investment banks accused of helping Enron hide massive financial losses.

  • February 21, 2006

    Calpine Asks Insurers To Cover Employee Defense Costs

    Looking to alleviate defense costs for several employees mired in class action securities litigation, bankrupt power company Calpine has asked a bankruptcy court judge to allow the company’s insurers to cover the litigation expenses so employees can focus on turning around the ailing company.

  • February 21, 2006

    Judge Rejects Owens Corning Shareholders’ Plea

    Delivering a devastating blow, a federal bankruptcy judge has rejected an ad hoc group of Owens Corning shareholders’ request for official representation in the fiberglass manufacturer’s long-standing bankruptcy case.

  • February 21, 2006

    Delta Fights For Executive Severance Plan

    Delta Airlines headed back to bankruptcy court this week, this time to defend its proposed severance package for company officers and directors. The plan has come under fire from the Delta pilot’s union, which asked the court to reject the $14.2 million proposal.

  • February 21, 2006

    GM Bids For Spot On Delphi Creditors Panel

    In the footsteps of the United Auto Workers union and the Pension Benefit Guaranty Corp., General Motors Corp. has made a bid to secure a seat on the creditors’ committee of scandal-ridden auto parts giant Delphi Corp., arguing that its appointment would “help to facilitate a consensual resolution.”

  • February 17, 2006

    Pliant Plucks Sonnenschein To Be Special Counsel

    Bankrupt Pliant Corp. has requested the services of Sonnenschein, Nath and Rosenthal LLP, hoping the firm can help navigate the beleaguered food packaging company through the often choppy waters of Chapter 11 proceedings.

  • February 17, 2006

    Enron To Fork Over $134M For Workers, Retirees

    Enron Corp.’s workers and retirees will receive approximately $134 million under the defunct energy company’s settlement of government and employee claims, the U.S. Department of Labor announced.

  • February 17, 2006

    Parishes Fight $45.7M Offering To Sex Abuse Victims

    Complicating the increasingly thorny wrangling between Roman Catholic officials and individual churches, an organization of 82 parishes in Eastern Washington is opposing a recent $45.7 million settlement offer by Bishop William Skylstad to sex abuse victims as part of the archdiocese's bankruptcy proceedings.

  • February 17, 2006

    Galvex Abandons Plan For Chapter 11 Dismissal

    In the face of strong opposition, embattled steel maker Galvex has withdrawn its request to dismiss Chapter 11 proceedings, retreating from the motion it filed two weeks ago.

  • February 17, 2006

    Refco Creditors Say No To A Forex Buyback

    Creditors of bankrupt commodities brokerage Refco Inc. have asked a judge to prohibit Forex Capital Market from buying back its shares, escalating a tug-of-war over Refco’s stake in the rival foreign exchange brokerage.

  • February 16, 2006

    Icahn’s Bid To Probe GB Holdings Denied

    Billionaire financier Carl Icahn has been barred from reviewing the books of bondholders and a minority shareholder of the bankrupt GB Holdings Inc., the owner-in-part of Atlantic City's Sands Casino.

  • February 16, 2006

    Refco Tries To Auction FX Unit, But No One Shows Up

    In an embarrassing setback for Refco Inc., the bankrupt futures and commodities brokerage was forced to cancel a planned auction Wednesday after only one company placed bids for its foreign exchange assets.

  • February 16, 2006

    Hedge Fund Wants Milbank Bounced From Chapter 11

    A hedge fund with a huge interest in Meridian Automotive System Inc.’s bankruptcy has accused Milbank Tweed Hadley & Co. of exploiting insider information in the case, demanding that the firm be ousted from the auto maker’s Chapter 11 proceedings.

  • February 16, 2006

    Lawyers, Others Seek $15M In Northwest Bankruptcy

    Lawyers, accountants, consultants and advisers to bankrupt Northwest Airlines have requested $15.1 million in fees for their work in the long-running bankruptcy proceedings amid increasing tension between the airline and its workers over collective bargaining agreements.

  • February 16, 2006

    Law Firm In $180M Boston Chicken Settlement

    Three investment banks and a major law firm have agreed to pay $180 million to settle allegations they played a role in the embarrassing collapse of once high-flying restaurant chain Boston Chicken Inc.

  • February 15, 2006

    Galvex Faces Opposition To Chapter 11 Dismissal

    Steel maker Galvex, which last week asked a bankruptcy court to dismiss its Chapter 11 proceedings, may not have the smooth exit it anticipated. U.S. Trustee Deirdre Martini has opposed the request, questioning the circumstances that would allow the dismissal of the bankruptcy.

  • February 15, 2006

    J.L. French Seeks To Hire In-Demand Miller Buckfire

    Bankrupt auto parts maker J.L. French Automotive is hoping that investment banking firm Miller Buckfire & Co. LLC can help steer it through the complexities of Chapter 11 proceedings.

  • February 15, 2006

    Judge Approves Stelco’s Reorganization Plan

    The Ontario Superior Court has approved bankrupt Canadian steel maker Stelco Inc.’s reorganization plan, propelling the company one step closer to emerging from bankruptcy protection.

  • February 15, 2006

    S&P: Calpine’s Bid To Toss Contracts Looks "Murky"

    Calpine Corp.’s recent attempts to scrap contracts signed before its bankruptcy may undermine bondholders' ability to recover their money from the power producer, according to a report released by Standard & Poor's this week.

  • February 15, 2006

    Hawaiian Says Rival Abused Bankruptcy Proceeding

    Fueling the debate over suspected abuse of bankruptcy proceedings, Hawaiian Airlines Inc. has sued rival Mesa Air Group Inc. for allegedly using confidential information obtained during bankruptcy proceedings to launch competing routes.