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April 28, 2011

Bondholder group files new Lehman repayment plan

" *Three competing plans to go before bankruptcy judge

Bondholders fighting for control of Lehman Brothers Holdings Inc's (LEHMQ.PK) repayment plan have amended a proposal for the company's restructuring that would provide them a slightly higher recovery.

The bondholder group, led by hedge fund Paulson & Co and the California Public Employees Retirement System, filed the plan late on Wednesday in U.S. Bankruptcy Court in Manhattan.

The updated filing, which would allow 25.4 percent recovery for unsecured creditors, follows an initial proposal in December that called for recoupment of about 24.5 percent."

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April 28, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

Circor's unit emerges from bankruptcy protection

"Industrial machinery maker Circor International Inc said its valve manufacturing subsidiary, Leslie Controls Inc, has emerged from bankruptcy protection.

It had filed for bankruptcy protection in July in a bid to isolate and resolve asbestos-related personal injury claims as the claims had exceeded the unit's profit. [ID:nSGE66B0F6]

Circor said in July, that a trust would been formed to handle such litigation claims, with a fund of about $75 million.

Asbestos, once widely used in manufacturing, has been partially banned by the U.S. government after it was proven to cause cancer, often in people who were exposed by breathing in asbestos particles.

The company, which has a market value of about $784.8 million, said Circor and its unit Leslie Controls have funded trusts that will repay asbestos claims."

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April 28, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

April 27, 2011

Lehman strikes $144 mln settlement with NY state

"Cash-strapped New York state would receive about $144 million from Lehman Brothers Holdings Inc under a proposed settlement resolving tax claims against the defunct financial giant.

The payment of corporate back tax and interest would settle claims that initially sought $1.17 billion, according to a motion filed on Tuesday in U.S. Bankruptcy Court in Manhattan."

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April 27, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

Vallejo Municipal-Bankruptcy Morass Prompts U.S. States to Prevent Filings

"Soon after Indiana state Senator Ed Charbonneau introduced legislation in January to bolster cash- strapped cities on the verge of bankruptcy, he got an unexpected phone call.

It was Bill Cooper, city manager of Hamtramck, Michigan, whose own state has refused permission for the Detroit suburb to file for reorganization. Cooper urged sending state help to cities before they reach a crisis, Charbonneau said.

'We’re putting a process in place with the intent of avoiding the need for bankruptcy,” Charbonneau, a Valparaiso Republican, said in a telephone interview April 19. “The whole purpose of it is to try to get fiscal help to distressed local units of government so they can correct their situation before any need for bankruptcy would arise.' "

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April 27, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

April 26, 2011

Tuscaloosa attorney charged with bankruptcy fraud

"BIRMINGHAM, Ala. (AP) — Federal prosecutors have charged a Tuscaloosa attorney with bankruptcy fraud.

Authorities say 60-year-old Donald Dionne is charged with making a false oath or account.

Prosecutors say that between December 2008 and August 2010, Dionne included false information in five bankruptcy petitions in order to have those cases assigned to divisions they would not have been assigned to had the correct information been included.

In a plea agreement filed Tuesday, Dionne agreed not to practice law if on probation or supervised release. The maximum penalty for the charge is 5 years in prison and a $250,000 fine."

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April 26, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

Star Chef, Facing a Suit, Files for Bankruptcy

"GEOFFREY ZAKARIAN has made all the right moves for a celebrity chef. He is a fixture on four Food Network programs, including “Chopped.” Over the years, he has operated a number of high-profile restaurants, three of which have won three stars from The New York Times. He now has two places in fashionable New York hotels and a hand in hotels in Miami Beach and Atlantic City.

But his latest step doesn’t follow the script.

He has filed for personal bankruptcy, a move that could help fend off more than $1 million in legal claims from his kitchen staff at Country in the Carlton Hotel, along with a former partner in the restaurant, which closed nearly three years ago.

Of the 179 creditors listed in the Chapter 7 bankruptcy petition he filed on April 6 in federal court in Bridgeport, Conn., 152 are former cooks at Country. They are part of a class action lawsuit against Mr. Zakarian and his management firm that claims that when he was an owner of the restaurant and its chef, he failed to pay the workers time and a half for overtime, falsified pay records to shortchange them and deducted from their paychecks for staff meals they were not given. They are seeking $1 million in damages and $250,000 in penalties."

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April 26, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

Fed Seeks Comment on Bankruptcy Of Financial Firms

David P. Goch: "Yesterday, the Federal Reserve Board indicated it, in conjunction with
the Administrative Office of the United States Courts, will seek comment
on two Dodd-Frank required bankruptcy-related studies to determine
whether bankruptcy laws should be modified in light of potential
financial firm failures.

According to the proposal <http://op.bna.com/bar.nsf/r?Open=cbre-8g5qw3>
, one study will focus on whether changes are needed to Chapters 7 and
11 of the Bankruptcy Code, the other will ask whether more international
coordination is needed when the matter involves interconnected firms
with operations around the globe.

Comments are due 30 days following the future publication of the
proposal in the Federal Register."

A copy of the proposal is attached.

April 26, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack