Bankruptcy

  • January 24, 2006

    Bankruptcy Looms For Alitalia

    With shaky finances and labor problems growing more severe by the day, Italian airline Alitalia is scrambling to come up with a restructuring plan that will appease both union workers and creditors and allow the airline to escape bankruptcy.

  • January 24, 2006

    Delphi Faces $19 Billion Debt Plus Environmental Charges

    Scandal-ridden auto parts giant Delphi Corp. has admitted that it is facing at least $19 billion in liabilities, a plethora of unresolved environmental pollution charges, and unspecified income tax debts owed to states and cities nationwide.

  • January 24, 2006

    Refco Trustee Asks Judge To Reconsider Ruling

    Although a judge denied her demand for control of the bankruptcy proceedings for futures broker Refco, U.S. Trustee Deirdre Martini has refused to concede, asking the judge to reconsider her proposal that she take command of the case.

  • January 23, 2006

    Eyeing Chapter 11 Emergence, ATA Adds Routes, Flights

    33-year-old ATA Airlines is readying to step into second adulthood this spring, when the bankrupt airline expects to emerge from Chapter 11 protection, add four new routes, and increase flights to Hawaii, its signature leisure destination.

  • January 23, 2006

    Supreme Court Nixes State Immunity in Bankruptcy Case

    In a decision reached by a single-vote margin, the Supreme Court has ruled that states can be sued in certain bankruptcy cases.

  • January 23, 2006

    Dissatisfied, Delphi Investors Appeal Deloitte Ruling

    Delphi Corp. shareholders refuse to take no for an answer. Investors in the embattled auto parts maker have appealed last week’s ruling, which allowed a Deloitte & Touche audit of the company’s 2005 books, alleging that the firm signed off on accounting improprieties.

  • January 23, 2006

    Northwest Strikes Pension Deal With Retirees

    A deal has been finalized in the battle between Northwest Airlines Corp. and the committee representing its retirees over the company’s proposal to cut labor and retiree costs as it reorganizes under Chapter 11 bankruptcy.

  • January 23, 2006

    Adelphia Creditors Urge Rejection Of Plan

    Although Adelphia is working toward emerging from Chapter 11 bankruptcy protection, obstacles continue to slow the struggling cable company’s progress.

  • January 23, 2006

    Personal Bankruptcies Gauge Bank of America Profits

    A surge in consumer bankruptcy filings has unexpectedly forced Bank of America Corp., the second-largest U.S. bank, to report its first profit decline in more than four years, losses felt by many consumer lenders in the wake of the new bankruptcy law.

  • January 23, 2006

    Kirkland & Ellis Biggest Winner In United Bankruptcy

    As bankrupt United Airlines Corp. emerges from Chapter 11 protection, it has become clear the biggest winner in the debacle is not the airline or its workers’ unions, but the law firm that oversaw the reorganization.

  • January 20, 2006

    Ex-Schlotsky’s Deli Execs Ask For Chapter 7

    There doesn’t seem to be an end in sight to the money woes plaguing Schlotzsky's Deli. Two former executives of the franchise have asked a bankruptcy court judge to convert the company’s bankruptcy proceedings from Chapter 11 to Chapter 7, claiming attorney and creditor fees are draining the company’s already dry coffers.

  • January 20, 2006

    Four Years Later, United To Emerge From Bankruptcy

    Almost four years after entering Chapter 11 bankruptcy protection, United Airlines’ reemergence plan has been approved, putting an end to the tumultuous reorganization and leaving some parties still unsatisfied.

  • January 20, 2006

    Delta Expects To Emerge From Chapter 11 In 2007

    Setting an example for a host of U.S. airlines that have opted for bankruptcy to fend off high fuel prices and ravaging competition, Delta Air Lines Inc. said it has achieved about 70% of the financial goals in its Chapter 11 recovery plan. It expects to emerge from bankruptcy a little over a year from now.

  • January 20, 2006

    AOL Latin America Offers Creditors Deal

    Shareholders of America Online’s bankrupt Latin American division have proposed a liquidation plan that will allow unsecured creditors to recover 100% of their claims, but only if they agree not to hold them liable for the Internet unit’s collapse.

  • January 19, 2006

    Deutsche To Pay $147M To Settle Fraud Charges

    Deutsche Bank AG agreed Thursday to pay $147.5 million to settle charges it participated in complex securities fraud that bankrupted a brokerage firm in September 2001.

  • January 19, 2006

    Judge Denies Request to Question Delphi Executives

    In a blow to Delphi Corporation shareholders, a federal bankruptcy judge has rejected a request, spearheaded by a group of pension funds, to question former executives of the auto parts giant about allegations of accounting fraud in the company’s upcoming bankruptcy trial.

  • January 19, 2006

    Varig Presents Swap Plan To Creditors

    The largest airline in Latin America, which has been operating under bankruptcy protection since last year, will present its creditors with a plan to swap credits for holdings in a fund that will assume control over the troubled company.

  • January 19, 2006

    Flight Attendants Blast Northwest Over Labor Plans

    Igniting the anger of its flight attendants union, bankrupt Northwest Airlines Corp. has proposed to replace a large number of American flight attendants with workers from Asian countries, in a bid to slash labor costs by $1.4 billion and ward off major downsizing, layoffs, and liquidation.

  • January 19, 2006

    Judge OKs $1.4M In Bonuses For Refco Employees

    Desperate to keep current employees from jumping ship, futures broker Refco got the green light from a bankruptcy court judge to pay $1.4 million in retention bonuses to 32 employees.

  • January 18, 2006

    United Reaches Deal With Flight Attendants Union

    United Airlines Corp. has cleared a major hurdle in its march toward emerging from bankruptcy, after the union representing its 17,000 flight attendants agreed to a reduced pension plan on Wednesday.