Subscribe: LexisNexis® Mealey's™ Bankruptcy Legal News
http://www.lexisnexis.com/mealeys/rss/legalnews_bankruptcy.xml
Added By: Feedage Forager Feedage Grade C rated
Language: English
Tags:
bankruptcy court  bankruptcy  bkcy  chapter bkcy  chapter  court  district  filed bankruptcy  filed  new york  new  york 
Rate this Feed
Rate this feedRate this feedRate this feedRate this feedRate this feed
Rate this feed 1 starRate this feed 2 starRate this feed 3 starRate this feed 4 starRate this feed 5 star

Comments (0)

Feed Details and Statistics Feed Statistics
Preview: LexisNexis® Mealey's™ Bankruptcy Legal News

LexisNexis® Mealey's™ Bankruptcy Legal News



Headline Bankruptcy Legal News from LexisNexis®



 



U.S. High Court: Inherited IRAs Not 'Retirement Funds,' Not Exempt In Bankruptcy
WASHINGTON, D.C. - The U.S. Supreme Court on June 12 ruled that funds held in inherited individual retirement accounts (IRAs) are not "retirement funds" within the meaning of the Bankruptcy Code because they represent an opportunity to use money immediately as opposed to a fund of retirement savings (Brandon Clark, et al. v. William Rameker, No. 13-299, Chapter 7, U.S. Sup.).



U.S. High Court Says District Court 'Cured' Bankruptcy Dispute With De Novo Review
WASHINGTON, D.C. - The U.S. Supreme Court on June 9 unanimously ruled that any potential error made by a bankruptcy court regarding its own judgment in a "core" proceeding under 28 U.S. Code Section 157(b) was "cured" by a district court's de novo review of the matter because the issue received the same review from the district court that it would have received had the bankruptcy court treated the claims as noncore proceedings (Executive Benefits Insurance Agency v. Arkinson, No. 12-1200, U.S. Sup.).



Bank Of America: High Court Must Hear Case Of Chapter 7 Bankruptcy Lien Issue
WASHINGTON, D.C. - Bank of America NA filed a petition for writ of certiorari with the U.S. Supreme Court that was made available on the docket June 5, in which it seeks high court review regarding whether the Bankruptcy Code permits a Chapter 7 debtor to "strip off" a junior mortgage lien in its entirety when the outstanding debt owed to a senior lienholder exceeds the current value of the collateral (Bank of America v. David B. Caulkett, No. 13-1421, Chapter 7, U.S. Sup.).



Creditor In Bitcoin Bankruptcy Agrees Not To Object To Venue, Chapter 15 Status
DALLAS - The foreign representative of bankrupt bitcoin exchange operator MtGox Co. Ltd. and creditor CoinLab Inc. on June 9 reached a stipulated agreement under which CoinLab agrees that it will not object to MtGox's Chapter 15 bankruptcy status or its choice of venue (In Re: MtGox Co. Ltd., No. 14-31229, Chapter 15, N.D. Texas Bkcy.).



12 Foundations: Syncora's Subpoenas Regarding Detroit Debt Plan Should Be Quashed
DETROIT - A group of foundations involved in community philanthropy for the bankrupt City of Detroit on June 13 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan supporting their motion to quash subpoenas filed by creditors Syncora Capital Assurance Inc. and Syncora Guarantee Inc. (the Syncora parties) (City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).



Michigan Legislature Passes, 'With Immediate Effect,' Law Giving Detroit $194.8M
LANSING, Mich. - The Michigan Senate on June 3 passed without amendment, and with "immediate effect," the Michigan Financial Review Commission Act (MFRCA), which will allocate $194.8 million in funds to the bankrupt City of Detroit to deal with its current debt, and would create the Financial Review Commission (FRC), which would have the power to approve the city's financial plan.



MF Global Trustee: $25M In WARN Act Claims Should Be Disallowed, Expunged
NEW YORK - The trustee in the Chapter 11 bankruptcy of MF Global Inc. (MFGI), the customer investment affiliate of MF Global Holdings Inc. (MFGH), on June 16 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, arguing that $25 million in claims filed by former employees of MFGI should be disallowed and expunged (In Re: MF Global Inc., 11-2790, Chapter 11, S.D. N.Y. Bkcy.).



ResCap Trust: $32.85M Claim Filed In 'Bad Faith' And Should Be Disallowed
NEW YORK - The Residential Capital Borrower Claims Trust on June 16 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, contending that a couple's $32.85 million claim against the bankruptcy estate should be disallowed because it was not timely filed and it demonstrates conduct that was "dilatory and in bad faith" (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).



'Girls Gone Wild' Trustee: Founder, Affiliate Should Be Held In Contempt
LOS ANGELES - The trustee in the Chapter 11 bankruptcy of GGW Brands LLC, which makes adult entertainment videos carrying the name "Girls Gone Wild," on June 2 filed a brief in the U.S. Bankruptcy Court for the Central District of California contending that the Bankruptcy Court should hold in contempt GGW, one of its affiliated companies and GGW's founder Joseph Francis (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).



Creditors: OSG Not Permitted To Disallow Defense Costs In Underlying Litigation
WILMINGTON, Del. - A group of underwriters who are creditors in the Chapter 11 bankruptcy of Overseas Shipholding Group Inc. (OSG) on June 3 filed a brief in the U.S. Bankruptcy Court for the District of Delaware arguing that OSG should not be permitted to disallow their claims for defense costs in underlying securities litigation related to the bankruptcy (In Re: Overseas Shipholding Group Inc., No. 12-20000, Chapter 11, D. Del. Bkcy.).



5th Circuit: Debtor's Motion To Withdraw Plea In Fraud Case Denied Properly
NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on June 3 ruled that a lower court properly refused to grant a debtor's motion to withdraw a guilty plea concerning bankruptcy fraud because although his court-appointed counsel was "deficient," there was no evidence that the debtor would have pleaded differently if he had had better representation (United States of America v. Bobby D. Curtis, No. 12-30819, Chapter 13, 5th Cir.; 2014 U.S. App. LEXIS 10331).



Delaware Supreme Court Rejects Suit Arising From Washington Mutual Bankruptcy
WILMINGTON, Del. - The Delaware Supreme Court on May 28 found that a suit the Washington Mutual Inc. (WMI) liquidating trust filed seeking coverage from directors and officers insurers is not yet ripe for adjudication and reversed a lower court's ruling (XL Specialty Insurance Co., et al. v. WMI Liquidating Trust, No. 499, 2013, Del. Sup.; 2014 Del. LEXIS 230).



U.S. Supreme Court Denies Hearing On Tax Duty Of Bankrupt Airline Executive
WASHINGTON, D.C. - The U.S. Supreme Court on May 27 declined to hear a case in which the former chief financial officer of a bankrupt airline contended that he should not be personally liable for $8.5 million in federal excise taxes that were due when his company filed for bankruptcy (Raymond T. Nakano v. United States of America, No. 13-1278, Chapter 7, U.S. Sup.).



Chapter 13 Debtor Seeks High Court Ruling That She Has Right To Dismiss Bankruptcy
WASHINGTON, D.C. - A Chapter 13 debtor who contends that she should be permitted to voluntarily dismiss her bankruptcy petition filed a petition for rehearing regarding a writ of mandamus that the U.S. Supreme Court previously denied. In the petition for rehearing, posted to the docket May 20, the debtor argues that Chapter 13 bankruptcy is, by its nature, voluntary (Carole L. Taylor v. Judith K. Fitzgerald, No. 13-960, Chapter 13, U.S. Sup.).



Michigan House Passes Bill Creating Commission For Cities In Financial Crisis
LANSING, Mich. - The Michigan House of Representatives on May 22 passed the Michigan Financial Review Commission Act (MFRCA) by a vote of 103-7, establishing a commission within the Michigan Department of Treasury to assist cities facing financial emergencies. The measure awaits action in the Michigan Senate.



Detroit Creditor Says Its $26M Claim Valid; Should Be Allowed For Voting Purposes
DETROIT - The Macomb Interceptor Drain Drainage District (MIDDD), a creditor and party in interest in the Chapter 9 bankruptcy case of the City of Detroit, on May 30 moved in the U.S. Bankruptcy Court for the Eastern District of Michigan, seeking an order allowing its $26 million claim against the city for the purpose of voting to accept or reject the city's amended plan of adjustment for its debts (In Re: City of Detroit, No. 13-53046, Chapter 9, E.D. Mich. Bkcy.).



Detroit: 'Grounds' Exist To Treat Pensioners Differently From Other Creditors
DETROIT - The bankrupt City of Detroit on May 26 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan contending that its plan of adjustment is "fair and equitable" and that it has "reasonable grounds" to treat its pensioners differently from other unsecured creditors (In Re: City of Detroit, No, 13-53836, Chapter 9, E.D. Mich. Bkcy.).



Judge: MF Global Officers Get $43.8M From Insurance To Pay Defense Costs
NEW YORK - The federal bankruptcy judge in the U.S. Bankruptcy Court for the Southern District of New York presiding over the Chapter 11 case of MF Global Holdings Ltd. (MFGH) on May 30 issued an order increasing to $43.8 million the amount payable for the insurance costs of MFGH's executives and officers (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).



MF Global SIPA Trustee: More Than $1.99M In Claims Should Be Disallowed
NEW YORK - The trustee in the Securities Investor Protection Act (SIPA) litigation related to the Chapter 11 bankruptcy of MF Global Inc. (MFGI), the customer investing affiliate of bankrupt MF Global Holdings Ltd. (MFGH), on May 21 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to $1,990,768.53 in claims against the bankruptcy estate, arguing that they should be disallowed (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.).



GM Ignition Switch Plaintiffs Say Stay Should Not Apply To Their Claims
NEW YORK - A group of plaintiffs that has a lawsuit pending against bankrupt General Motors LLC related to that company's defective ignition switches on May 27 moved in the U.S. Bankruptcy Court for the Southern District of New York for an order declaring that their lawsuit is not stayed in connection with a Bankruptcy Court injunction or a sale related to GM's Chapter 11 bankruptcy (In Re: Motors Liquidation Company, No. 09-50026, Chapter 11, S.D. N.Y. Bkcy.).



General Motors Seeks Transfer For Texas Ignition Switch Cases
AUSTIN, Texas - General Motors LLC (GM) and auto parts manufacturer Delphi Automotive Systems PLC on May 20 filed a motion with the Multi District Litigation Panel of Texas on, seeking to consolidate four Texas state court personal injury actions involving vehicles with faulty ignition switches (In re: General Motors Ignition Switch Litigation, No. 14-0399, MDLP Texas).



Bitcoin Investors: CoinLab's Objection To Sunlot Proposal 'Seriously Misplaced'
DALLAS - Representatives of the class of investors suing bankrupt bitcoin exchange operator MtGox Inc. on May 24 filed a brief in the U.S. Bankruptcy Court for the Northern District of Texas contending that objections filed by creditor CoinLab Inc. in opposition to a portion of the company's proposed reorganization plan "are seriously misplaced" (In Re: MtGox Co. Ltd., No. 14-31229, Chapter 15, N.D. Texas Bkcy.).



Creditor Appeals Sale Of $149M In Loan Assets Of Irish Bank Resolution Corporation
WILMINGTON, Del. - A creditor in the Chapter 15 bankruptcy of Irish Bank Resolution Corp. (IBRC) on May 27 filed a notice of appeal concerning a decision by a federal bankruptcy judge to grant an order permitting the sale of $149 million in assets related to loans that the bank held before filing for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware (In Re: Irish Bank Resolution Corporation Ltd., No. 13-12159, Chapter 15, D. Del. Bkcy.).



Irish Bank Creditor: Tampa Port Authority's Motion To Dismiss Should Be Denied
WILMINGTON, Del. - Liberty Channelside LLC (Liberty), a creditor in the Chapter 15 bankruptcy of Irish Bank Resolution Corp. Ltd. (IBRC), on May 29 filed a brief in the U.S. Bankruptcy Court for the District of Delaware opposing a motion to dismiss its lawsuit against the Irish Bank Resolution Trust Corporation Ltd. (IBRC) and Tampa Port Authority (TPA) (Liberty Channelside LLC v. Irish Bank Resolution Corporation Ltd., et al. $(In Re: Irish Bank Resolution Corporation Ltd.$), No. 13-12159, Adv. No. 13-52542, Chapter 15, D. Del. Bkcy.).



Residential Capital Affiliate: $500M Case Against UBS Should Not Be Remanded
NEW YORK - Residential Funding Co. LLC (RFC), an affiliate of bankrupt Residential Capital LLC (ResCap), on May 28 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York opposing a motion by UBS Real Estate Securities Inc. (UBS) that seeks to remand RFC's adversary action related to loans valued in excess of $500 million that UBS sold to RFC prior to bankruptcy (Residential Funding Company LLC v. UBS Real Estate Securities Inc. $(In Re: Residential Capital LLC$), No. 12-12020, Adv. No. 14-01926, Chapter 11, S.D. N.Y. Bkcy.).



Residential Capital Trust: Creditor's $29.84M Claim Should Not Be Reconsidered
NEW YORK - The ResCap Borrower Claims Trust, as successor in interest to bankrupt Residential Capital LLC (ResCap), on May 23 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to the motion of a creditor who seeks reconsideration of her claim that she is entitled to $29,841,120.01 from ResCap's bankruptcy estate (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).



Bankrupt Arcapita Seeks More Than $10.27M From Al Baraka Banking Group
NEW YORK - Bankrupt Arcapita Bank BSC on May 30 filed an adversary proceeding in the U.S. Bankruptcy Court for the Southern District of New York against Al Baraka Banking Group BSC seeking to recover $10,273,616.40 it contends was fraudulently transferred prior to Arcapita's bankruptcy filing (Arcapita Bank BSC v. Al Barak Banking Group BSC $(In Re: Arcapita Bank BSC$), No. 12-11076, Chapter 11, S.D. N.Y. Bkcy.).



Bankruptcy Judge Denies $10M Claim Against Arcapita Bank
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of Arcapita Bank BSC in the U.S. Bankruptcy Court for the Southern District of New York on May 20 denied a $10 million claim against the bank on grounds that the creditor was not entitled to a setoff pursuant to a stock purchase agreement between the parties (In Re: Arcapita Bank BSC, No. 12-11076, Chapter 11, S.D. N.Y. Bkcy.).



Bankruptcy Judge: Most Retiree Benefits Vested For American Airlines Employees
NEW YORK - The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of AMR Corp. in the U.S. Bankruptcy Court for the Southern District of New York on May 28 partially denied and partially granted a motion filed by AMR seeking a ruling that certain retiree benefits were not vested (AMR Corporation v. Committee of Retired Employees $(In Re: AMR Corporation$), No. 12-01744, Chapter 11, S.D. N.Y. Bkcy.).



Sbarro Emerges From Chapter 11 Bankruptcy As Reorganization Plan Becomes Effective
NEW YORK - Bankruptcy pizzeria chain Sbarro LLC on June 2 filed its official notice disclosing to all creditors that its Chapter 11 bankruptcy plan was effective as per the decision by the federal bankruptcy judge in the U.S. Bankruptcy Court for the Southern District of New York, who approved the reorganization plan on May 19 (In Re: Sbarro LLC, No. 14-10557, Chapter 11, S.D. N.Y. Bkcy.).



Bankrupt 'Penthouse' Says Creditor Cannot Compel It To Provide Financial Reserve
WILMINGTON, Del. - The adult entertainment company that produces material carrying the name "Penthouse" on June 2 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to a motion by its former financial advisor that seeks to compel the debtor to provide a financial reserve to cover the advisor's claims valued at $3,430,900 (In Re: PMGI Holdings Inc., No. 13-12404, Chapter 11, D. Del. Bkcy.).



Judge Denies 'Girls Gone Wild' Affiliate's Motion For Protection From Asset Sale
LOS ANGELES - The federal bankruptcy judge in the U.S. Bankruptcy Court for the Central District of California presiding over the Chapter 11 proceeding of GGW Brands LLC, the adult entertainment company that makes products carrying the name "Girls Gone Wild," on May 29 denied a motion by one of GGW's affiliates that sought protection of its property interests, trademarks and intellectual property that are being sold in GGW's asset sale (In Re: GGW Brands LLC, No. 13-15130, Chapter 11, C.D. Calif. Bkcy.).



Company Seeks $50M In Damages For 'Wrongful' Involuntary Bankruptcy Petition
PHILADELPHIA - National Medical Imaging LLC (NMI) on May 27 filed a lawsuit in the U.S. District Court for the Eastern District of Pennsylvania seeking $50 million in damages against U.S. Bank NA, contending that the bank wrongfully filed an involuntary bankruptcy petition against NMI and its affiliate (National Medical Imaging LLC v. US Bank NA, et al., No. 14-02974, Chapter 11, E.D. Pa.).



Hostess, Creditor Agree To Settle $30M Claim For Slightly More Than $2.02M
NEW YORK - Old HB Inc., the reorganized version of bankrupt Hostess Brands Inc., on May 19 moved in the U.S. Bankruptcy Court for the Southern District of New York for approval of a $2,023,712 settlement agreement with a man who alleged that he was injured when he was struck by a vehicle operated by a Hostess employee (In Re: Old HB Inc. f/k/a Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).



Creditors Of Broadcasting Company Want Art Gallery Owner's Testimony Rejected
NEW YORK - A group of creditors in the Chapter 11 bankruptcy of Inner City Broadcasting Corp. (ICBC) on May 30 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York objecting to ICBC's brief, which argued that the Bankruptcy Court should not grant the creditors' motion to strike the declaration of one of ICBC's witnesses in the adversary proceeding ICBC has brought against the creditors (Inner City Broadcasting Corporation v. YMF Media LLC, et al. $(In Re: Inner City Broadcasting Corporation$), No. 11-13967, Adv. No. 12-01796, Chapter 11, S.D. N.Y. Bkcy.).



Bankrupt Furniture Brands: Individual Retirees May Not Make Claims Against Estate
WILMINGTON, Del. - Bankrupt FBI Wind Down Inc. (FBI), formerly known as Furniture Brands International Inc., on June 2 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to individual pension claims filed against the bankruptcy estate on grounds they are not permitted under the Bankruptcy Code (In Re: FBI Wind Down Inc. f/k/a Furniture Brands International Inc., No. 13-12329, Chapter 11, D. Del. Bkcy.).



4th Circuit: Subcontractors Have Interest In Debtor Contractor's Property
RICHMOND, Va. - A panel of the Fourth Circuit U.S. Court of Appeals on May 22 affirmed a bankruptcy court ruling that held that subcontractors had a perfected interest in property belonging to a debtor construction company that acted as a general contractor (Branch Banking & Trust Company v. Construction Supervision Services Inc. $(In Re: Construction Supervision Services Inc.$), No. 13-1560, Chapter 11, 4th Cir.; 2014 U.S. App. LEXIS 9532).



10th Circuit: Debtor Not Entitled To Damages From Construction Project
DENVER - A panel of the 10th Circuit U.S. Court of Appeals on May 21 affirmed a bankruptcy court's decision that awarded damages to a creditor in a Chapter 11 bankruptcy on grounds that the debtor did not meet the definition of a "prevailing party" and could not sue to recover money for damages it suffered on a building project that involved the creditor prior to the bankruptcy filing (Central States Mechanical Inc. v. Agra Industries Inc. $(In Re: Central States Mechanical Inc.$), No. 12-3263, Chapter 11, 10th Cir.; 2014 U.S. App. LEXIS 9425).



Bankruptcy Judge Approves $2.2M Settlement For Cost Of Environmental Cleanup
WILMINGTON, Del. - The federal bankruptcy judge presiding over the Chapter 7 bankruptcy of alternative energy company Abound Solar Manufacturing LLC in the U.S. Bankruptcy Court for the District of Delaware on May 22 approved a settlement with Abound's insurer for $2.2 million to resolve the costs of environmental remediation (In Re: Abound Solar Manufacturing LLC, No. 12-11974, Chapter 7, D. Del. Bkcy.).



Delaware Supreme Court Rejects Suit Arising From Washington Mutual Bankruptcy
WILMINGTON, Del. - The Delaware Supreme Court on May 28 found that a suit the Washington Mutual Inc. (WMI) liquidating trust filed seeking coverage from directors and officers insurers is not yet ripe for adjudication and reversed a lower court's ruling (XL Specialty Insurance Co., et al. v. WMI Liquidating Trust, No. 499, 2013, Del. Sup.; 2014 Del. LEXIS 230).



Chapter 13 Debtor's Settlement Award Is Property Of The Estate, 11th Circuit Rules
ATLANTA - A panel of the 11th Circuit U.S. Court of Appeals on June 2 ruled that proceeds that a Chapter 13 debtor received after he settled a wrongful foreclosure action against his mortgage company were property of the bankruptcy estate (George Crouser v. BAC Home Loans Servicing LP $(In Re: George Crouser$), No.13-14304, Chapter 13, 11th Cir.; 2014 U.S. App. LEXIS 10144).



Debtor's Vehicles Not Marital Property, 3rd Circuit Says; Exemption Not Applicable
PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on May 22 affirmed a bankruptcy court's decision that a debtor could not list three vehicles as exempt from his bankruptcy estate because they were not marital property as the debtor had claimed (In Re: Don Scioli, No. 13-2762, Chapter 7, 3rd Cir.; 2014 U.S. App. LEXIS 9525).



2nd Circuit: Order Denying Withdrawal Of Fraudulent Conveyance Action Not Final
NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on May 27 dismissed the appeals of a creditor and his attorney who sought to have the trustee's fraudulent conveyance action withdrawn to the U.S. Bankruptcy Court for the Eastern District of New York, ruling that a district court's order that initially dismissed the case was not a final judgment (Debra Kramer v. Tozammel H. Mahia $(In Re: Shahara Kahn$), No. 13-1930, Chapter 11, 2nd Cir.; 2014 U.S. App. LEXIS 9686).



U.S. High Court Denies Hearing On Liquidation Of Assets Belonging To Bankrupt Farm
WASHINGTON, D.C. - The U.S. Supreme Court on May 19 refused to hear a case in which a Chapter 11 debtor, which was also a farm, argued that the Chapter 11 trustee wrongly liquidated its assets in violation of the Bankruptcy Code (Robert A. Sears, et al. v. Joseph H. Badami, No. 13-1229, Chapter 11, U.S. Sup.).



U.S. Supreme Court Refuses To Hear Creditor's Case Alleging Sale Violated Rights
WASHINGTON, D.C. - The U.S. Supreme Court on May 19 denied certiorari in a bankruptcy case in which a creditor alleged that actual fraudulent conveyance of a debtor's assets was committed during the bankruptcy sale because his claim against the bankruptcy estate was not preserved (Robert White v. Kubotek Corporation, No. 13-1215, Chapter 7, U.S. Sup.).



Judge In Bitcoin Investor Class Action Stays Case, Grants Stipulated Settlement
CHICAGO - The federal judge presiding over the putative investor class action against bitcoin exchange operator MtGox Inc. in the U.S. District Court for the Northern District of Illinois on May 9 issued an order staying the proceedings and granting a stipulated settlement between the class and principals of MtGox (Gregory Greene v. MtGox Inc., et al., No. 14-01437, N.D. Ill.).



MFGH's Counsel Opposes $10M Increase For Ex-Directors, Officers Defense Payments
NEW YORK - The law firm representing bankrupt MF Global Holdings Ltd. (MFGH) as the plan administrator under the company's plan of liquidation on May 12 sent a letter to the bankruptcy judge objecting to a motion seeking an insurance advancement of $10 million to pay the defense costs of former directors and officers of MFGH (In Re: MF Global Holdings Ltd., No. 11-15059, Chapter 11, S.D. N.Y. Bkcy.).



2nd Circuit: Sapere's Appeal In MF Global Proceeding Is 'Moot'; Payments Received
NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on May 19 denied as moot an appeal by entities associated with Sapere Wealth Management LLC in the Chapter 11 bankruptcy of MF Global Holdings Ltd. (MFGH) on grounds that it was moot because the plaintiffs had received compensation for their vested rights that they said initially had been denied (Sapere Wealth Management LLC, et al. v. MF Global Holdings Ltd., No. 1204732, Chapter 11, 2nd Cir.; 2014 U.S. App. LEXIS 9188).



Class Counsel In GM Ignition Switch Case Seek Stay Of Bankruptcy Proceeding
NEW YORK - The law firm representing the lead plaintiffs in a class action against General Motors on May 15 sent a letter to the bankruptcy judge in the U.S. Bankruptcy Court for the Southern District of New York presiding over the Chapter 11 case of GM, contending that the Bankruptcy Court should stay an asset sale order (In Re: Motors Liquidation Company, No. 09-50026, Chapter 11, S.D. N.Y. Bkcy.).



Irish Bank Representatives: Bankruptcy Court Should Deny Asset Sale Objection
WILMINGTON, Del. - The foreign representatives of bankrupt Irish Bank Resolution Corp. (IBRC) on May 8 filed a brief in the U.S. Bankruptcy Court for the District of Delaware arguing that the Bankruptcy Court should deny the objections to their motion seeking to sell assets valued at $149 million (In Re: Irish Bank Resolution Corporation Ltd., No. 13-12159, Chapter 15, D. Del. Bkcy.).



Port Authority: Irish Bank Creditor Lacks Standing To Bring Lease Lawsuit
WILMINGTON, Del. - The Tampa Port Authority (TPA) on May 15 filed a brief in the U.S. Bankruptcy Court for the District of Delaware supporting its motion to dismiss an adversary proceeding filed by Liberty Channelside LLC, a creditor in the Chapter 15 bankruptcy of Irish Bank Resolution Corp. Ltd. (IBRC), arguing that Liberty Channelside lacks standing to bring a cause of action based on the lease agreement that is the subject of its dispute with the TPA (Liberty Channelside LLC v. Irish Bank Resolution Corporation Ltd. $(In Re: Irish Bank Resolution Corporation Ltd.$), No. 13-12159, Adv. No. 13-52542, Chapter 15, D. Del. Bkcy.).



Bond Insurer Ambac: Detroit's Discovery Requests 'Simply Have No Applicability'
DETROIT - Ambac Assurance Corp. on May 6 filed a brief in the U.S. Bankruptcy Court for the Eastern District of Michigan objecting to discovery requests made by the bankrupt City of Detroit on grounds that they "simply have no applicability" to it as a bond insurer (In Re: City of Detroit, No. 13-53846, Chapter 9, E.D. Mich. Bkcy.).



Kodak Creditor: $49M Deal For Environmental Cleanup Is 'Grossly Unfair'
NEW YORK - A creditor of bankrupt Eastman Kodak Co. on May 6 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York, objecting to a settlement agreement between Kodak and both federal and state environmental authorities on grounds that the $49 million trust fund established by the agreement is "grossly unfair" (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).



Indenture Trustee Of $2.15B In Lien Notes Seeks Order Extending Deadline
WILMINGTON, Del. - The indenture trustee for $2,156,000,000 in what are called second lien notes issued by bankrupt Energy Future Intermediate Holdings Co. LLC (EFIH) on May 14 moved in the U.S. Bankruptcy Court for the District of Delaware for an emergency ruling by the Bankruptcy Court (In Re: Energy Future Holdings Corp., No. 14-10979, Chapter 11, D. Del. Bkcy.).



Energy Future Holdings: Bankruptcy Should Not Be Transferred To Texas
WILMINGTON, Del. - Bankrupt Energy Future Holdings Corp. (EFH) on May 8 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to a motion to transfer the proceeding to a bankruptcy court in Texas on grounds that the location of EFH's assets favors keeping the case in Delaware (In Re: Energy Future Holdings Corp., No. 14-10979, Chapter 11, D. Del. Bkcy.).



3rd Circuit: Creditor's Claims 'Plainly' Disallowed Under Bankruptcy Code
PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on May 6 affirmed a ruling that denied a creditor's claim in a Chapter 11 bankruptcy on grounds that the claims "plainly satisfy the criteria for disallowance" under 11 U.S. Code Section 502(e)(1)(B) (In Re: Caribbean Petroleum Corp., No. 13-2326, Chapter 11, 3rd Cir.; 2014 U.S. App. LEXIS 8471).



Tuscany International: Plan Modification 'Feasible'; Creditors Get 'Fair' Recovery
WILMINGTON, Del. - Bankrupt Tuscany International Holdings Ltd. (TIH) on May 19 filed a brief in the U.S. Bankruptcy Court for the District of Delaware arguing that the Bankruptcy Court should permit it to modify its plan of reorganization because it is "feasible" under the Bankruptcy Code and provides recoveries similar to what creditors would receive if the company were liquidated (In Re: Tuscany International Holdings $(USA$) Ltd., No. 14-10193, Chapter 11, D. Del. Bkcy.).



Quiznos: Reorganization Plan Complies With Bankruptcy Code, Should Be Approved
WILMINGTON, Del. - QCE Finance LLC, an affiliate of bankrupt restaurant chain Quiznos Global LLC, on May 8 filed a brief in the U.S. Bankruptcy Court for the District of Delaware arguing that its prepackaged plan of reorganization complies with the Bankruptcy Code and should be confirmed (In Re: QCE Finance LLC, No. 14-10543, Chapter 11, D. Del. Bkcy.).



Sbarro Files Modification To Plan, Classifies Claims By Legal Nature, Priority
NEW YORK - Bankrupt Sbarro LLC on May 15 filed a modification to the restructuring plan in the U.S. Bankruptcy Court for the Southern District of New York, contending that the Bankruptcy Code provides for the separate classification of claims and interests into seven classes, based on differences in legal nature or priority (In Re: Sbarro LLC, No. 14-10557, Chapter 11, S.D. N.Y. Bkcy.).



Genco Committee: Hearing To Confirm Reorganization Plan Should Be Postponed
NEW YORK - The Official Committee of Equity Security Holders in the Chapter 11 bankruptcy of Genco Shipping & Trading Ltd. on May 13 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York opposing the hearing on the disclosure statement for the company's Chapter 11 plan, contending that "it is a non-consensual plan designed to cram down the equity security holders" (In Re: Genco Shipping & Trading Ltd., No. 14-11108, Chapter 11, S.D. N.Y. Bkcy.).



Cigna: Brookstone Disclosure Fails To Adequately Deal With Benefits Contract
WILMINGTON, Del. - Cigna Health and Life Insurance Co., a creditor in the Chapter 11 bankruptcy of Brookstone Holdings Corp., on May 12 filed a brief in the U.S. Bankruptcy Court for the District of Delaware objecting to the company's disclosure statement pertaining to the plan of reorganization on grounds that it fails to adequately explain what will happen to the contract between Cigna and Brookstone related to employee health benefits (In Re: Brookstone Holdings Corp., No. 14-10752, Chapter 11, D. Del. Bkcy.).



Brookstone Reorganization Plan Calls For Stock Purchase Of More Than $146.26M
WILMINGTON, Del. - Bankrupt Brookstone Holdings Corp. on May 7 filed a disclosure statement for its Chapter 11 plan of reorganization in which new common stock in a reorganized version of the company would be sold for $146,265,000 (In Re: Brookstone Holdings Corp., No. 14-10752, Chapter 11, D. Del. Bkcy.).



ResCap: Bank Of America, Others Sold It 'Defective' Loans, Liable For 'Billions'
NEW YORK - The ResCap Liquidating Trust, as successor to Residential Funding Co. (RFC), an affiliate of bankrupt Residential Capital LLC (ResCap), on May 13 filed an adversary complaint against Bank of America and another bank in the U.S. Bankruptcy Court for the Southern District of New York, seeking to recover money connected to what it says are "defective" residential mortgage loans Bank of America sold to RFC (In Re: Residential Capital LLC, No. 12-12020, Chapter 11, S.D. N.Y. Bkcy.).



Defendant In Revstone Transfer Action Says Case Should Be Moved To Kentucky
WILMINGTON, Del. - A defendant in the lawsuit brought by bankrupt Revstone Industries LLC against its former manager alleging that he made fraudulent transfers on May 7 filed a brief in the U.S. Bankruptcy Court for the District of Delaware arguing that the Bankruptcy Court should transfer the case to a district court in Kentucky because the transactions at issue occurred in Kentucky (Revstone Industries LLC v. George S. Hofmeister, et al. $(In Re: Revstone Industries LLC$), No. 12-13262, Adv. No. 14-50033, Chapter 11, D. Del. Bkcy.).



Bankrupt GSE Environmental: Immediate Access Needed To $45 Million In Financing
WILMINGTON, Del. - Bankrupt GSE Environmental Inc. on May 5 moved in the U.S. Bankruptcy Court for the District of Delaware for approval of $45 million in post-petition financing, also called debtor-in-possession (DIP) financing (In Re: GSE Environmental Inc., No. 14-11126, Chapter 11, D. Del. Bkcy.).



Bankrupt Coldwater Creek Wants To File Employee Bonus Information Under Seal
WILMINGTON, Del. - Bankrupt Coldwater Creek Inc. (CCI) on May 12 moved in the U.S. Bankruptcy Court for the District of Delaware for permission to file under seal its motion seeking approval to pay employee bonuses on grounds that it contains sensitive information regarding employee salaries and other confidential information that could potentially harm the company (In Re: Coldwater Creek Inc., No. 14-10867, Chapter 11, D. Del. Bkcy.).



Wells Fargo: Financing In Coldwater Creek Case Is 'Fair, Reasonable, Customary'
WILMINGTON, Del. - Wells Fargo Bank NA on May 19 filed a brief in the U.S. Bankruptcy Court for the District of Delaware, arguing that the Bankruptcy Court should deny a motion filed by the Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy of Coldwater Creek Inc. (CCI), which seeks reconsideration of the order that approved post-petition financing for the debtor on grounds that the committee asserted "unsubstantiated and baseless allegations" in its motion (In Re: Coldwater Creek Inc., No. 14-10867, Chapter 11, D. Del. Bkcy.).



'Pink Slime' Maker May Not Recover $93,575.03 Under Bankruptcy Code, Creditor Says
WILMINGTON, Del. - A creditor in the Chapter 11 bankruptcy of AFA Investment Inc., the maker of the "pink slime" that is added to some ground beef, on May 7 filed an answer in the U.S. Bankruptcy Court for the District of Delaware contending that AFA is not entitled to recover $93,575.03 that it alleges was fraudulently transferred prior to the bankruptcy filing (AFA Investment Inc. v. Marten Transport Services Ltd. $(In Re: AFA Investment Inc.$), No. 12-11127, Chapter 11, D. Del. Bkcy.).



Judge Approves Amended Deal Settling Filene's Property Dispute For $1.25M
WILMINGTON, Del. - The federal bankruptcy judge in the U.S. Bankruptcy Court for the District of Delaware presiding over the Chapter 11 proceeding of Filene's Basement LLC on May 16 issued an order approving an amended deal in which a third party has agreed to pay the purchaser of a lease interest in property of Filene's affiliate Syms Corp. $1.25 million to settle claims pertaining to a dispute regarding the sale based on a competing price offer (In Re: Filene's Basement LLC, No. 11-13511, Chapter 11, D. Del. Bkcy.).



1st Circuit: Debtor's Plan In Chapter 13 Not Feasible Under The Bankruptcy Code
BOSTON - A panel of the First Circuit U.S. Court of Appeals on May 14 affirmed dismissal of a Chapter 13 debtor's payment plan, ruling that his plan to bifurcate his mortgage loan debt into secured and unsecured portions was not feasible under the Bankruptcy Code (Louis B. Bullard v. Hyde Park Savings Bank $(In Re: Louis B. Bullard$), No. 13-9009, Chapter 13, 1st Cir.; 2014 U.S. App. LEXIS 8995).



Absolute-Priority Rule Applies In Chapter 11 Cases, 6th Circuit Says
CINCINNATI - A panel of the Sixth Circuit U.S. Court of Appeals on May 13 reversed a ruling and held that the absolute-priority rule applies to individual debtors in Chapter 11 proceedings (Ice House America v. Charles Cardin, No. 13-5764, Chapter 11, 6th Cir.; 2014 U.S. App. LEXIS 8882).



Dolan Company Seeks Approval Of Deal Reducing $3.8M In Claims By Former Executives
WILMINGTON, Del. - The Dolan Co. (TDC), the bankrupt parent company for various entities that provide business and professional services for legal, financial and real estate companies, on May 13 filed a brief in the U.S. Bankruptcy Court for the District of Delaware, seeking approval of a settlement with former executives to reduce $3.8 million potential claims against the bankruptcy estate (In Re: The Dolan Company, No. 14-10614, Chapter 11, D. Del. Bkcy.).



11th Circuit: District Court Did Not Err; Loan Servicers Had Right To Stay Relief
ATLANTA - A panel of the 11th Circuit U.S. Court of Appeals on May 8 affirmed a lower court and determined that loan servicing agencies were allowed to have relief from the automatic stay to pursue foreclosure against a Chapter 13 debtor couple (Kenneth Lodge v. Kondaur Capital Corporation, No. 13-10919, Chapter 13, 11th Cir.; 2014 U.S. App. LEXIS 8632).



Judge Dismisses Insolvent Insurer's Trust's Breach Of Fiduciary Duty Claim
SAN FERNANDO VALLEY, Calif. - A trust for an insolvent insurance company failed to allege that banks breached a fiduciary duty by managing the insurer's tax attributes to benefit the banks at the expense of the trust and the insurer's other stakeholders, a California federal judge held May 8, dismissing a breach of fiduciary duty claim (In re: Superior National Insurance; The Litigation Trust for the Trust Beneficiaries of SNTL Corp. and certain affiliates v. JP Morgan Chase and JP Morgan Chase Bank N.A., Chapter 11, Nos. 00-14099 & 13-01099, C.D. Calif. Bky.; 2014 Bankr. LEXIS 2071).



Savient Liquidation Officer: Plan Meets Criteria, Should Be Granted Approval
WILMINGTON, Del. - The chief liquidation officer in the Chapter 11 bankruptcy of Savient Pharmaceuticals Inc. on May 15 filed a declaration in the U.S. Bankruptcy Court for the District of Delaware contending that the company's plan of liquidation should be approved because it satisfies all requirements for confirmation under the Bankruptcy Code (In Re: Savient Pharmaceuticals Inc., No. 13-12680, Chapter 11, D. Del. Bkcy.).



NECC, Insiders, Insurers Pay $100M For Victims Of 2012 Fungal Meningitis Outbreak
BOSTON - The bankruptcy trustee for New England Compounding Pharmacy (also known as New England Compounding Center, or NECC) on May 6 filed motions formalizing a previously announced $100 million settlement with the company, its insiders and some of its insurers to pay patients who were injured or killed by fungal meningitis allegedly caused by the pharmacy's contaminated steroid (In Re: New England Compounding Pharmacy, Inc., No. 12-19882, D. Mass. Bkcy.).