Category Archives: Bankruptcy News

PHILADELPHIA – The U.S. Bankruptcy Code trumps anti-assignment provisions in insurance policies, the Third Circuit U.S. Court of Appeals held May 1 (In re: Federal-Mogul Global Inc., et al., Nos. 09-2230 and 09-2231, 3rd Cir.; 2012 U.S. App. LEXIS 8814). Continue reading →

NEW YORK – A federal judge in New York on May 9 ruled that an adversary action alleging fraud filed by the Chapter 11 trustee for Refco Securities LLC against former Refco insiders belongs in the U.S. Bankruptcy Court for the Southern District of New York (Mark S. Kirschner v. John D. Agoglia, et al., No. 11-8250, Chapter 11, S.D. N.Y.). Continue reading →

JACKSON, Miss. – An investment banker dishonestly assisted the president of a bankrupt insurer in the breach of the president's fiduciary duty to the insurer, a Mississippi bankruptcy judge held May 10, granting summary judgment to the insurer's liquidators on their dishonest-assistance claims regarding the alleged fraudulent transfer of the insurer's assets (In re: Condor Insurance Ltd. [in official liquidation]; Richard Fogerty and William Tacon in their capacity as the joint official liquidators of Condor Insurance Ltd. v. Condor Guaranty Inc., et al., No. 07-51045, Adv. Proc. No. 07-05049, S.D. Miss. Bkcy.; 2012 Bankr. LEXIS 2099). Continue reading →

HARRISBURG, Pa. – The attorney representing the Harrisburg City Council in the city's disputed Chapter 9 bankruptcy proceeding on May 11 moved in the Pennsylvania Commonwealth Court for a subpoena of the former bankruptcy receiver and sought a stay on grounds that an investigation regarding his alleged conflicts of interest is needed (C. Alan Walker v. The City of Harrisburg, No. 569 MD 2011, Pa. Cmwlth.). Continue reading →

BIRMINGHAM, Ala. – Bankrupt Jefferson County, Ala., on May 1 filed a brief in the U.S. Bankruptcy Court for the Northern District of Alabama objecting to a creditor's motion for relief from the automatic stay, contending that she lacked standing to seek stay relief in the first place (In Re: Jefferson County, Alabama, No. 11-05736, Chapter 9, N.D. Ala. Bkcy.). Continue reading →

MONTGOMERY, Ala. – A federal judge in Alabama on May 7 reversed and remanded a decision by a bankruptcy judge and ruled that the City of Prichard, Ala., could file for Chapter 9 bankruptcy, based on a recent decision by the Alabama Supreme Court (In Re: City of Prichard, Alabama, No. 10-00622, Chapter 9, S.D. Ala.; 2012 U.S. Dist. LEXIS 64362). Continue reading →

NEW YORK – The federal bankruptcy judge presiding over the Chapter 11 proceeding of Hawker Beechcraft Inc. in the U.S. Bankruptcy Court for the Southern District of New York on May 7 approved $300 million in post-petition financing (In Re: Hawker Beechcraft Inc., No. 12-11873, Chapter 11, S.D. N.Y. Bkcy.). Continue reading →

NEW YORK – The federal bankruptcy judge presiding over the Chapter 11 bankruptcy of fashion house Betsey Johnson LLC on May 10 approved an additional $2.5 million in post-petition financing to be used strictly for payroll and working capital purposes (In Re: Betsey Johnson LLC, No. 12-11732, Chapter 11, S.D. N.Y. Bkcy.). Continue reading →

NEW YORK – The trustee for the Borders Group Inc. (BGI) Liquidating Trust, which was formed in the wake of the Chapter 11 bankruptcy filing of former bookseller Borders Group Inc., on May 1 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York opposing all proofs of claim asserted by its creditors (In Re: BGI Inc. f/k/a Borders Group Inc., No. 11-10614, Chapter 11, S.D. N.Y. Bkcy.). Continue reading →

NEW YORK – The federal bankruptcy judge presiding over the Chapter 11 case of Getty Petroleum Marketing Inc. (GPMI) on May 1 authorized GPMI to reject property leases for 814 of its gas stations, effective immediately (In Re: Getty Petroleum Marketing Inc., No. 11-15606, Chapter 11, S.D. N.Y. Bkcy.). Continue reading →