Bankruptcy

  • June 12, 2006

    Sphinx Wants Refco Transfer Mystery Revealed

    In free-fall since Refco Inc.’s collapse, several hedge funds once run by PlusFunds Group Inc. have sued the fund’s chairman and two directors for allegedly transferring money without their knowledge to an unregulated unit of the former brokerage giant.

  • June 12, 2006

    Aphton To Auction Off Assets

    Three weeks after filing for Chapter 11 bankruptcy protection, Aphton Corp. received permission on Friday from the U.S. Bankruptcy Court in Wilmington, Del., to auction its assets without a lead bidder.

  • June 12, 2006

    Calpine Creditors Seek Canadian Counsel

    The unsecured creditors committee in Calpine Corp.’s Chapter 11 case has asked the court for permission to retain a Canadian law firm to help deal with the bankrupt power company’s Canadian subsidiaries.

  • June 12, 2006

    Bank of America Punches Back At Parmalat

    As Parmalat Finanziaria SpA tries to cast doubt upon Bank of America Corp.’s countersuit, the nation’s number two bank is fighting back and lobbying the court to allow its $1 billion damages claim against the embattled Italian dairy giant to proceed.

  • June 12, 2006

    Werner Slips Into Chapter 11 With $99M DIP

    Werner Co., a leading ladder manufacturer, filed for Chapter 11 bankruptcy protection Monday as part of a reorganization plan intended to overcome skyrocketing costs for raw materials.

  • June 9, 2006

    Deal In Works For Troubled Biopharmaceutical Company

    A Canadian court has approved the plan sponsorship agreement between a troubled biopharmaceutical company, Hemosol Corp., its receiver and a potential buyer.

  • June 9, 2006

    Thaxton Noteholders Renew Charge Against Finova

    Fresh off a $10 million partial class action settlement, the noteholders of bankrupt financial services outfit Thaxton Group Inc. have relaunched their attack against a quintet of companies over the allegedly fraudulent sale of $120 million worth of debt to individuals.

  • June 9, 2006

    Dana Settles With Supplier

    Despite the objections of creditors, auto parts maker Dana Corp. has reached a settlement with supplier Toledo Press Co. in a dispute over equipment and shipping charges.

  • June 9, 2006

    Delphi, Union Sign Pact With GM Support

    Auto parts maker Delphi Corp. has penned a deal with its major union that will let seasoned workers take early retirement under a cost-cutting plan supported by the company’s biggest customer, General Motors.

  • June 9, 2006

    Two More Sphinx Funds Approved For Liquidation

    A U.S. bankruptcy court judge has approved the liquidation of two hedge funds run by PlusFunds Group Inc., as the fallout from the group’s ties to the collapse of futures broker Refco continues.

  • June 9, 2006

    Riverstone Seeks Overhaul Of Shareholder Deal

    Bankrupt ethernet provider Riverstone Networks Inc. has asked for court approval to revamp an old shareholder lawsuit settlement that would enable it to recoup nearly $1 million in fees originally paid to shareholders’ lawyers.

  • June 9, 2006

    USG Wins Approval Of Exit Financing Package

    Drywall maker USG Corp., bankrupted by asbestos-related personal injury claims, has won court approval for a $2.75 billion exit financing package—just in time for confirmation hearings over its proposed reorganization plan.

  • June 8, 2006

    Varig Employees Bid For Failed Airline

    The sale of Brazilian airline Varig is still up in the air, after an airline employees consortium came up over $400 million short in its bid for the bankrupt airline.

  • June 8, 2006

    Offshore Sphinx Fund Seeks Ch. 15 Protection

    One of Sphinx Managed Futures Fund’s offshore hedge funds ran for cover under Chapter 15 bankruptcy protection just a day before a bankruptcy judge signed off on Sphinx’s contested $263 million settlement with Refco Inc. creditors.

  • June 8, 2006

    Emergency Motion Filed To Stop Icahn Deposition

    Attorneys for billionaire and majority shareholder Carl Icahn’s are seeking a protective order that would thwart efforts by the unsecured creditors committee of bankrupt gaming company GB Holdings Inc. to have Icahn and three other individuals deposed in the company’s Chapter 11 proceedings.

  • June 8, 2006

    PBGC Won’t Back Down From Delta Fight

    Refusing to take no for an answer, government-backed insurer the Pension Benefit Guaranty Corp. has decided to appeal the bankruptcy court’s approval of Delta Air Lines Inc.’s new pilots’ contracts, maintaining that the agreement violates federal pension law.

  • June 8, 2006

    SEC Disputes Ch. 11 Plan For Three-Five

    The U.S. Securities and Exchange Commission has smacked down Three-Five Systems Inc.’s reorganization plan, arguing that it clears the way for an unauthorized “fresh start” to the company’s reorganized corporate shell.

  • June 8, 2006

    Judge Approves $263M Refco Settlement

    A U.S. bankruptcy court has approved the $263 million settlement between insolvent futures broker Refco Inc. and collapsing hedge fund Sphinx Managed Futures Fund, ignoring multiple objections and chastising those who attempted to thwart the deal.

  • June 8, 2006

    Pliant May Test Limits Of Executive Bonus Plans

    Some creditors for bankrupt food packaging company Pliant Corp. are crying foul on the executive bonus plan found in its proposed reorganization, arguing the incentives are tantamount to retention bonuses banned by recent revisions to bankruptcy law.

  • June 7, 2006

    Gordon Brothers Wins London Fog Spoils

    Beating out the front runner, Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC have won a heated auction over who will serve as liquidator for the assets of famed rainwear maker London Fog Group Inc.