Four banks have been subpoenaed in connection with a federal investigation into whether Honolulu's Aloha Airlines illegally used employee pension funds to pay off bank loans prior to its Chapter 11 bankruptcy filing in December 2004.
Companies experiencing financial difficulties may benefit from filing for bankruptcy sooner rather than later if insolvency is inevitable, according to a recently released report by Moody’s Investor Services.
In the latest development of the Anchor Glass Container Corp.’s Chapter 11 case, the U.S. Trustee objected Wednesday to the company’s disclosure statement on grounds that it lacks vital information.
A major shareholder of Riverstone Networks Inc. has asked the court to dismiss the telecommunication company’s bankruptcy case amid accusations that the bankruptcy was not initiated in good faith.
The unsecured creditors in the Integrated Electrical Services bankruptcy have brought in Weil, Gotshal & Manges to go to bat for them, after a bankruptcy court judge approved an $810 an hour fee for Weil partner Marcia Goldstein.
Bankruptcy attorneys at law firm Winston & Strawn LLP have been accused of potential bias for allegedly declining to sue a debtor who is also a witness in the firm’s high-profile defense of former Illinois governor George H. Ryan.
A federal judge in New York has rejected a bid by creditors of bankrupt cable company Adelphia Communications Corp. to tear up a $715 million settlement with the U.S. Securities and Exchange Commission penned after the company’s accounting scandal.
Last year's bankruptcy reform—pushed through Congress to crack down on deadbeats—is creating headaches for people with legitimate financial problems, according to a damning report by a group of bankruptcy attorneys.
Bloated compensation packages for executives at the helm of bankrupt companies are increasingly drawing fire from creditors and workers, who question why executives should earn huge bonuses while employees are asked to sacrifice pay and benefits.
International accounting firm BDO Seidman and two of its CPA partners have been sued for malpractice by a federal court-appointed officer, who is seeking $170 million in damages on charges of unfair business practices and securities fraud.
The United Kingdom is gearing up to adopt a new cross-border bankruptcy law that will likely ease international disputes over which nation’s solvency laws will apply to bankrupt companies that have a global footprint.
Delphi Corp. retained the services of Cadwalader, Wickersham and Taft LLP, in the hope that the firm can help steer the embattled company through its Chapter 11 bankruptcy proceedings.
In a victory for Musicland, a federal judge has approved the bankrupt entertainment retailer’s financing plans, paving the way for the company to fully use a $75 million debtor in possession loan to fund ongoing operations.
The bankruptcy judge overseeing Delta Airlines’ Chapter 11 filing approved a contentious plan on Wednesday for executive severance packages intended to stem the drain of management as the carrier works toward solvency.
A judge has granted several requests made by newly bankrupt Integrated Electrical Services, clearing the way for the company to seek permission to solicit creditor support for its reorganization plan as early as next month.
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.
Only moments after Adelphia Communications Corp. announced its agreement with lenders to amend its $1.3 billion debtor-in-possession loan Wednesday, broadcaster NBC fired off its objections to the deal.
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.”
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.
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.