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
Alabama Federal Judge: City Of Prichard’s Chapter 9 Bankruptcy May Proceed
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
Jefferson County, Ala.: Creditor Lacks Standing For Automatic Stay Relief
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
Harrisburg City Council Seeks Subpoena Of Former Chapter 9 Receiver
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
Banker Assisted In Scheme Against Bankrupt Insurer, Bankruptcy Judge Rules
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
Judge: Fraud Action Against Refco Securities Insiders Belongs In Bankruptcy Court
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
Insurance Rights Can Be Assigned To Asbestos Trusts, 3rd Circuit Holds
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
DirecTV Tells Bankruptcy Court Capitol Infrastructure Contract Motion ‘Senseless’
WILMINGTON, Del. – Satellite television provider DirecTV LLC on May 9 filed a brief in the U.S. Bankruptcy Court for the District of Delaware, objecting to bankrupt Capitol Infrastructure's motion seeking authorization to reject certain executory contracts, arguing that to do so would be “senseless” (In Re: Capitol Infrastructure LLC, No. 12-11362, Chapter 11, D. Del. Bkcy.). Continue reading
Global Aviation Seeks Bankruptcy Court Approval To Reject Equipment Leases
BROOKLYN, NY – Bankrupt Global Aviation Holdings Inc. on May 7 filed an omnibus motion in the U.S. Bankruptcy Court for the Eastern District of New York seeking authorization to reject certain equipment leases related to its airline business (In Re: Global Aviation Holdings Inc., No. 12-40783, Chapter 11, E.D. N.Y. Bkcy.). Continue reading
6th Circuit: Pilots Fail To Show Northwest Bankruptcy Deal Administered Improperly
CINCINNATI – A panel of the Sixth Circuit U.S. Court of Appeals on May 7 ruled that a district court properly determined that a group of pilots who sued their union alleging discrimination for not getting a full payout of benefits from a bankruptcy agreement with Northwest Airlines did not show that there had been a violation of the Age Discrimination Employment Act (ADEA) (Frederick N. Bondurant, et al. v. Air Line Pilots Association International, et al., No. 10-1904, Chapter 11, 6th Cir.; 2012 U.S. App. LEXIS 9215). Continue reading
