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WILMINGTON, Del. – Bankrupt power company Beacon Power Corp. on Feb. 3 filed a notice in the U.S. Bankruptcy Court for the District of Delaware indicating that it had a $35.5 million stalking horse bid arranged (In Re: Beacon Power Corporation, No. 11-13450, Chapter 11, D. Del. Bkcy.). Full story on lexis.com Continue reading →

ATLANTA – A bankrupt software company on Feb. 6 moved in federal bankruptcy court for authorization of a $249.78 million stalking horse bid for the company's assets (In Re: CDC Corporation, No. 11-79079, Chapter 11, N.D. Ga. Bkcy.). Full story on lexis.com Continue reading →

WILMINGTON, Del. – Saab Cars North America Inc., which was the subject of an involuntary Chapter 11 bankruptcy petition filed by 41 creditors, on Feb. 6 moved in the U.S. Bankruptcy Court for the District of Delaware asking for the case to be transferred to a different bankruptcy court (In Re: Saab Cars North America Inc., No. 12-10344, Chapter 11, D. Del. Bkcy.). Full story on lexis.com Continue reading →

WILMINGTON, Del. – A putative class of employees of bankrupt Solyndra LLC on Jan. 31 moved in the U.S. Bankruptcy Court for the District of Delaware for an order striking a proposal that would release lenders who have provided post-petition funding from their fund obligations, arguing that such a release would affect the ability of the class to collect on its claim on unpaid wages against Solyndra (In Re: Solyndra LLC, No. 11-12799, Chapter 11, D. Del. Bkcy.). Full story on lexis.com Continue reading →

NEW YORK – The federal bankruptcy judge presiding over the Chapter 11 proceeding ofEner1 Inc. on Feb. 1 approved $13.5 million in debtor-in-possession financing to fund the bankruptcy proceeding (In Re: Ener1 Inc., No. 12-10299, Chapter 11, S.D. N.Y. Bkcy.). Full story on lexis.com Continue reading →

LOS ANGELES – A California homeowner filed a putative class action complaint on Feb. 7 against two mortgage companies, alleging that they have filed false documents in hundreds of bankruptcy cases nationwide (Mark Allan Hestrin v. American Home Mortgage Servicing Inc., et al., No. 12-01025, C.D. Calif.). Full story on lexis.com Continue reading →

RICHMOND, Va. – The Fourth Circuit U.S. Court of Appeals on Feb. 2 ruled that while a bankruptcy court and district court both erred in finding that claimants may not file class proofs of claim without first obtaining an order under Federal Rule of Bankruptcy Procedure 9014, in the present case, concerning a bankrupt chain's former employees seeking almost $150 million in unpaid overtime, the lower courts were correct in concluding that the bankruptcy claims process is the superior method (Robert Gentry, et al. v. Alfred H. Siegel, No. 10-2418, 4th Cir.; 2012 U.S. App. LEXIS 1934). Full story on lexis.com Continue reading →

BIRMINGHAM, Ala. – Bank of New York Mellon, in its capacity as indenture trustee for $3.6 billion in original principal amount of special revenue sewer warrants issued by bankrupt Jefferson County, Ala., on Feb. 3 filed an adversary complaint seeking a declaratory judgment that it is entitled to all revenues generated by the sewer system (The Bank of New York Mellon v. Jefferson County, Alabama [In Re: Jefferson County, Alabama], No. 11-05736, Adv. No. 12-00016, Chapter 9, N.D. Ala. Bkcy.). Full story on lexis.com Continue reading →

NEW ORLEANS – A panel of the Fifth Circuit U.S. Court of Appeals on Jan. 27 affirmed a ruling that awarded $3 million to a trustee on grounds that there was evidence that the debtor company had made fraudulent transfers before filing its petition (Guillermo De La Pena Stettner, et al. v. W. Steve Smith [In Re: IFS Financial Corporation], No. 10-20670, Chapter 7, 5th Cir.; 2012 U.S. App. LEXIS 1706). Full story on lexis.com Continue reading →

SAN FRANCISCO – A panel of the Ninth Circuit U.S. Court of Appeals on Jan. 27 ruled that a debtor, which was a subsidiary of a parent company in Chapter 11 bankruptcy, was a single asset real estate debtor under the Bankruptcy Code; therefore, the automatic stay was lifted (Meruelo Maddux Properties 760 Hill Street LLC, et al. v. Bank of America [In the Matter of Meruelo Maddux Properties Inc., No. 10-56128, Chapter 11, 9th Cir.; 2011 U.S. App. LEXIS 26125). Full story on lexis.com Continue reading →