Bankruptcy

  • February 24, 2006

    Aloha Airlines Probe Targets Four Banks

    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.

  • February 24, 2006

    Moody's Sees Benefits In Early Chapter 11 Filings

    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.

  • February 24, 2006

    Trustee Opposes Anchor Glass Disclosure Statement

    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.

  • February 24, 2006

    Investor Asks Judge To Dismiss Riverstone Bankruptcy

    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.

  • February 24, 2006

    IES Unsecured Creditors Tap Weil Gotshal

    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.

  • February 24, 2006

    Bankruptcy Haunts Winston & Strawn In Corruption Case

    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.

  • February 23, 2006

    Adelphia Creditors Lose Battle Over $715M SEC Deal

    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.

  • February 23, 2006

    Study Says Bankruptcy Law Hurts Rather Than Helps

    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.

  • February 23, 2006

    Bloated Pay For Execs Draws Ire In Chapter 11 Cases

    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.

  • February 23, 2006

    BDO Seidman Faces $170M Suit Over Bankest Bust

    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.

  • February 23, 2006

    U.K. To Adopt Cross-Border Insolvency Law

    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.

  • February 22, 2006

    Delphi Corp. Retains Cadwalader As Special Counsel

    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.

  • February 22, 2006

    Judge Greenlights Musicland’s DIP Financing

    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.

  • February 22, 2006

    Delta's $14M Executive Severance Plan Approved

    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.

  • February 22, 2006

    IES Looks For Speedy Bankruptcy Exit

    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.

  • 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 22, 2006

    NBC Objects To Adelphia's Chapter 11 Plan

    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.

  • 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 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

    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.