Bankruptcy

  • May 12, 2006

    J.P. Morgan To Reap $100M In Owens Corning Deal

    J.P. Morgan Securities Inc. may turn out to be the biggest winner in Owens Corning’s asbestos-related bankruptcy case, with the investment bank primed to receive $100 million for its part in the beleaguered fiberglass manufacturer’s upcoming Chapter 11 exit.

  • May 12, 2006

    Attorneys Rally Against New Bankruptcy Law

    Two bar associations are taking the nation's tough new bankruptcy law to court, saying the provisions censor attorneys and violate the rights of clients to receive constitutionally protected legal advice.

  • May 11, 2006

    Cautious Galvex Seeks Chapter 11 Plan Extension

    Embattled steel maker Galvex Holdings Ltd. is seeking bankruptcy court permission to retain exclusive control over its Chapter 11 case for another four months, arguing that additional time is needed while the sale of its assets to Silver Point Capital is being finalized.

  • May 11, 2006

    Bondholders Dealt Setback In Calpine Debt Struggle

    Tuning out the protests of Calpine Corp.’s first-lien bondholders, a federal bankruptcy judge has authorized the beleaguered power giant to repay all of its outstanding $646.1 million debt to the bondholder group, while temporarily suspending a $96 million prepayment penalty.

  • May 11, 2006

    Offshore Bank Files For U.S. Bankruptcy Protection

    The liquidator of a Cayman Islands bank has petitioned for U.S. Bankruptcy Court protection, saying the move is necessary in order to continue his investigation into the collapse of the offshore bank and its Dominican Republic-based parent, Banco Nacional de Credito SA, or Bancredito.

  • May 11, 2006

    Shareholders Want More Say As Foamex Soars

    One of the largest shareholders of bankrupt foam-cushion manufacturer Foamex International Inc. is seeking a seat at the bargaining table after an unexpected reversal of fortune turned Foamex stock into a hot commodity.

  • May 11, 2006

    Without A Buyer, PlusFunds Plans To Shut Down

    Although bankrupt hedge fund manager PlusFunds Group Inc. had fielded two promising bids from private equity firm FTVentures and Bear Stearns Asset Management Inc. to purchase its assets just weeks earlier, it failed to secure a buyer and announced its plan to wind down its business.

  • May 10, 2006

    Owens Corning To Pay Asbestos Victims $5.2B

    Owens Corning has reached agreements with six creditor groups that should allow the company to emerge from Chapter 11 bankruptcy by the end of 2006.

  • May 10, 2006

    SGI Bids To Limit Equity Trades, Info Sharing

    Two days after filing for Chapter 11 protection, high-performance computer maker Silicon Graphics Inc. has asked a bankruptcy court to limit large trades of its equity, saying it wants to protect about $1 billion in net operating loss carryforwards for tax purposes.

  • May 10, 2006

    J.L. French Amends Statement To Appease Lenders

    With trouble brewing with its first-lien lenders, bankrupt auto parts maker J.L. French has responded to their concerns with haste, in hopes of stopping the squabble before it starts.

  • May 10, 2006

    Calpine Gets OK To Repay $626.1M With DIP Loan

    Paying off a debt early has a $96 million price tag for Calpine Corporation, but the bankrupt power company has decided it is worth it. The company won authorization from its lenders on Tuesday to use its debtor-in-possession loan to repay $646.1 million to bondholders.

  • May 10, 2006

    Restructuring Firm Snapshot: Bridge Associates LLC

    For Bridge Associates LLC, a “willingness to think outside the box” has helped to make the firm one of the leaders in the turnaround and restructuring world over the past decade.

  • May 10, 2006

    Bankrupt Lender Seeks OK To Collect Loan Payments

    Bankrupt USA Commercial Mortgage Co. has filed motions asking for permission to suspend payments to investors and compel a disbursement agency to free up the lender's funds.

  • May 10, 2006

    Credit Suisse Unit Shells Out $90M To Stop Enron Suit

    Putting an end to Credit Suisse Group’s involvement in the “MegaClaims” litigation, a U.S. affiliate of the Swiss bank has decided to fork over $90 million to the bankruptcy estate of Enron Corp. to answer allegations stemming from the energy giant’s 2001 collapse.

  • May 9, 2006

    Silicon Graphics Seeks To Retain Weil Gotshal

    In lock step with its filing for Chapter 11 bankruptcy protection Monday, computer maker Silicon Graphics Inc. is seeking to retain Weil Gotshal & Manges LLP as counsel.

  • May 9, 2006

    J.L. French Lenders Angered By Disclosure Statement

    J.L. French cannot avoid feuding with various groups of creditors involved in its Chapter 11 proceedings. Just one week after settling a spat with creditors, the bankrupt auto parts maker has raised the ire of its first-lien lenders, including General Electric Capital Corp.

  • May 9, 2006

    OCA Reorganization Plan Spawns Objections

    Two groups of dentists have filed objections to bankrupt orthodontic services firm OCA Inc.’s proposed reorganization plan, in an attempt to stymie the restructuring model that was agreed to last week by OCA’s unsecured creditors and senior lenders.

  • May 9, 2006

    Consulting Firm Removes $1M Provision In Dana Case

    Under pressure from the U.S. Trustee, the restructuring firm hired by Dana Corp.’s unsecured creditors has decided to drop a contract provision that would have allowed it to collect a hefty $1 million completion fee.

  • May 9, 2006

    Regulators End J.P. Morgan Probe In Parmalat Case

    Italian investigators have completed their probe into investment bank J.P. Morgan Chase’s role in the collapse of dairy giant Parmalat, an inquest that has resulted in allegations of fraudulent bankruptcy levied against three former J.P. Morgan managers.

  • May 9, 2006

    Restructuring Firm Snapshot: AlixPartners

    When AlixPartners was founded by Jay Alix in 1981, the concept of a turnaround/restructuring firm was unfamiliar, if not totally unheard of. Today, Alix is widely regarded as one of the pioneers of the modern turnaround industry.