Bankruptcy & Restructuring >>>

    San Bernardino Curbs Retiree Benefits in Plan

    San Bernardino will put off paying $13 million to California’s retirement system and $3.4 million for pension bonds issued in 2005, in a provisional spending plan. The City Council voted 5-2 for the fiscal road map yesterday to meet a court imposed Nov. 30 deadline for a balanced interim municipal budget while in bankruptcy proceedings. In addition [...]

    AMR Seeks to End Pilots’ Lump-Sum Retirement Option

    AMR Corp. filed papers asking the bankruptcy court to prevent pilots from retiring and taking lump-sum payment of retirement benefits. Even if pilots vote in favor of a new contract when ballots are tabulated on Dec. 2, the airline could be thrown into chaos when the company emerges from bankruptcy protection, AMR said in Nov. 23 [...]

    Hostess to Ask Judge for Shutdown Approval

    Hostess Brands Inc. will ask a bankruptcy judge today for permission to shut down permanently, costing more than 18,000 jobs, after mediation with its bakers’ union failed to resolve a contract dispute. “A mediation today with the Bakery, Confectionary, Tobacco and Grain Millers Union was unsuccessful,” Hostess said yesterday in a statement. The company said it wouldn’t comment further until today’s court hearing. Continue reading

    Overseas Shipholding Files in Delaware

    Overseas Shipholding Group Inc., the largest U.S. tanker operator, filed for bankruptcy protection after global shipping rates declined and demand for oil fell in North America and Europe. The 64-year-old company, based in New York, listed assets of $4.15 billion and debt of $2.67 billion in a Chapter 11 filing today in U.S. Bankruptcy Court in Wilmington, Delaware. Read more>>

    Courts Test Universality of U.S. Bankruptcy Law

    The notion that courts in one country will enforce bankruptcy court orders from another country was dealt a blow by the highest court in the U.K. In the next few weeks, the idea of universalism in bankruptcy may be defeated a second time when the U.S. Court of Appeals in New Orleans hands down a decision in a case involving Mexican glassmaker Vitro [...]

    American Airlines Union Sees Contract Agreement Soon

    American Airlines’ pilot union said there’s a chance a contract agreement may be reached soon and told members it’s urging creditors to appoint new directors for bankrupt parent AMR Corp. Allied Pilots Association advisers are “confident” that some major AMR creditors agree on the need for a new board that would then “appoint management to lead the [...]

    Berkshire Hathaway to Open ResCap Loan Bids

    Berkshire Hathaway Inc. is the opening bidder today for a portfolio of Residential Capital LLC’s whole loans, a day after Res-Cap auctioned its mortgage servicing business to Ocwen Financial Corp. for $3 billion. Berkshire will start tomorrow’s auction for the loan portfolio, competing against a consortium of financial investors, according to a person familiar with the matter. Yesterday Ocwen [...]

    ResCap Auction Is Key for Servicer Supremacy

    Nationstar Mortgage Holdings Inc. and Ocwen Financial Corp., which have seen their share prices more than double this year, are battling to become the largest non-bank home-loan servicers in a consolidating industry. They’ll resume bidding today in a bankruptcy auction in a midtown Manhattan hotel for Residential Capital LLC’s loan- servicing unit after trading competing offers in a session that lasted into the evening. [...]

    Mexican Government Sides With Vitro in U.S. Appeal

    Bill Rochelle’s Wire Mexican Government Sides With Vitro in U.S. Appeal The Mexican government filed papers urging a U.S. appeals court to reverse a lower court and enforce the reorganization of Vitro SAB in the U.S. Continuing to side with holders of $1.2 billion in defaulted Vitro bonds “may substantially complicate further bankruptcy cooperation between courts in [...]

    Queen of Hawaii Claims to Own Grand Wailea Resort

    Paulson & Co. and Winthrop Realty Trust don’t own the land underneath the bankrupt Grand Wailea Resort Hotel and Spa in Hawaii, at least according to Sir Edward Cooper, whose letterhead says he is the Diplomatic Emissary for the Sovereign Nation of Akua. Cooper wrote in September to U.S. Bankruptcy Judge Sean Lane, telling him [...]

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