The case of H. Jason Gold v. First Tennessee Bank, N.A. (In re Taneja), Adversary Case No. 10-1225 (Bankr. E.D. Va. July 30 2012), concerns an elaborate fraud perpetrated by a mortgage broker, Financial Mortgage, Inc. (“FMI”), against various warehouse lenders, and a bankruptcy trustee’s later attempt to recover payments made by the mortgage broker to its innocent lenders as fraudulent conveyances. Facts […]
Read MoreWeighed down by debt, management turmoil, rising labor costs and the changing tastes of America, Hostess decided on November 16th that it could no longer restructure its obligations through a chapter 11 bankruptcy and, instead, must sell its assets and go out of business. This is not the sequence of events that the maker of Twinkies envisioned when it filed […]
Read MoreA decision by Warren Buffett’s Berkshire Hathaway Inc. to end a large wager on the municipal-bond market is deepening questions from some investors about the risks of buying debt issued by cities, states and other public entities. The Omaha, Neb., company recently terminated credit-default swaps insuring $8.25 billion of municipal debt. The termination, […]
Read MoreIn an appeal in ASARCO LLC’s chapter 11 bankruptcy case, pending in the Southern District of Texas, the U.S. District Court recently affirmed the Bankruptcy Court’s award of a fee enhancement, a.k.a. a fee bump, to ASARCO‘s bankruptcy counsel, which had obtained “extremely favorable” results for the Debtor and its creditors. See ASARCO LLC v. Baker Botts, L.L.P., Case No. 2:11-CV-290 (S.D.T.X. […]
Read More(Reuters) – A U.S. judge on Wednesday, August 15, denied a request by American Airlines’ parent AMR Corp. to abandon collective bargaining agreements with its pilots’ union, despite AMR’s goal to save more than $1 billion a year in labor costs. Judge Sean Lane, who is overseeing AMR’s bankruptcy restructuring, turned down AMR’s motion in part because it would give […]
Read MoreCity of Los Angeles Bankruptcy May be Coming. As reported: A City of Los Angeles bankruptcy could be nearing, with the city a victim of the same unfunded public pension liabilities that are crippling municipalities like Stockton and San Bernardino across California, and elsewhere as well. A Stanford study sums up the dismal figures. The percentage growth for […]
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