Optim creditor says Bill Gates is owner, not lender: Bankruptcy roundup
By Bloomberg Writer; Bloomberg Writer, Bloomberg News | |
Proquest LLC |
Optim, a power-plant owner indirectly owned by the Gates foundation, filed for Chapter 11 protection in
Unsecured creditor
The mining company alleged an "inequitable scheme" through which Cascade transformed itself "from a mere equity holder to the secured lender."
Cascade's secured status allows it to claim payment from the estate before other parties, leaving little or nothing for unsecured creditors. Equity holders, on the other hand, are paid after most other claimants. So converting Cascade's claim into equity would leave more money for creditors such as Walnut Creek.
Walnut Creek asked the bankruptcy court to let it sue Cascade on behalf of all creditors, saying that
Claims for recharacterization of debt as equity, equitable subordination and damages for breach of fiduciary duty could all be raised, according to Cascade, which said there's no creditors' committee to do so.
Optim owns three plants with combined capacity of 1,455 megawatts. Two plants burn natural gas and the third uses coal. The company's petition listed assets of less than
The case is In re
Updates
Global Geophysical Settles Chapter 11 Loan Dispute
Based in
At an ensuing hearing, the bankruptcy judge sided with the company by granting interim approval for a
To avoid a bigger fight at an
The unsecured noteholders will pay off in full the
Including the amount to be used for paying off secured lenders, the noteholders will provide a
Secured lenders being paid off include
The new loan is being made by some holders of
Global said on filing under Chapter 11 that it intends to reorganize on its own or with additional capital. It listed assets of
Global said it had a cash crisis as a result of working capital demands arising from new business requiring large initial expenses. The secured lenders accelerated the debt when a forbearance agreement expired on
The
The case is In re
GM Soon to Raise Bankruptcy Shield against Lawsuits
New GM made the statement
Under the 2009 sale agreement, new GM accepted liability for product recalls and responsibility for repairing the Cobalts. The company contends that personal-injury claims are barred.
People injured or killed in Cobalt accidents must overcome several obstacles to mount valid claims against new GM.
To sue new GM, plaintiffs could try arguing that bankrupt
Still, a ruling that the claims survive by itself won't give rise to a claim against new GM because it's a different company, protected by the sale-approval order. Consequently, Cobalt plaintiffs might try to argue that new GM is a "successor" to old GM and therefore liable for personal-injury or death claims.
Old GM filed for reorganization under Chapter 11 on
One of the personal-injury cases is Maciel v.
The GM Chapter 11 case is In re
Detroit Settles on Police and Fire Department Pensions
Before the settlement, the city said it would cut police and fire pensions by 6 percent. The settlement avoids cuts and restores half of the cost-of-living adjustments that would have been eliminated under the city's proposed plan.
The settlement only works if the court approves settlements with the state and private philanthropies providing
U.S. Bankruptcy Judge
The judge called for having his own expert in March, saying he has "an independent duty" to determine whether the plan is feasible, "even if no party objects to plan confirmation."
The judge's statement implies that he might disapprove the plan even if all creditor groups settle.
That's what happened when U.S. Bankruptcy Judge
The Chapter 9 case is
Martifer Solar Plans to Auction Business by Mid-June
Martifer Aurora Solar, a builder of solar power projects, filed a Chapter 11 petition in January in
The
Martifer intends to file a proposed plan and disclosure statement before the end of April, so disclosure materials can be approved before the end of May. The company is seeking a confirmation hearing to approve the plan before June is over.
The company entered bankruptcy with 35 workers and is now down to 27. To stem departures, Martifer proposed an incentive- bonus plan for 18 workers. It would cost a maximum of
Two-thirds of the workers would have a bonus equal to 5 percent to 10 percent of a year's wages. For the others, the maximum would be 45 percent.
Martifer is asking the bankruptcy judge to hold a hearing by
Martifer is the U.S. side of the Portuguese solar power developer
The U.S. company listed assets of
Revenue shrank to
The Martifer parent entered the U.S. market in 2008 by acquiring
The case is In re
Event Rentals Lenders Give Creditors
The
The largest event-rental provider in the U.S. filed a Chapter 11 petition in mid-February planning on a sale to secured lenders in exchange for
If the creditors don't use the entire budget for their fees, as much as
In settlement, the committee dropped its opposition to the sale. The settlement comes to court for approval on
Known as
The lenders already agreed to provide as much as
The company serves 22 markets and generated
The case is In re
Atlantic Club Casino Confirms Liquidating Plan
The one-time owner of the
Unsecured creditors with claims of
The casino filed a Chapter 11 petition in early November and sold slot machines to Tropicana Atlantic City for
There were no secured claims left to deal with in the plan.
The official lists showed assets of
The case is In re
Fletcher's Settlement With Skadden Arps Law Firm Approved
The trustee for the
Skadden said there was no basis for liability, contending that its representation was limited to certain proceedings in
According to
Davis was appointed as trustee in
According to Davis, four public pension funds that invested
Fletcher initially listed assets of
The Chapter 11 case is In re
Cooper-Booth Has
A bankruptcy judge in
The plan will be financed with a new
The new loan will pay off
Unsecured creditors with claims totaling
The owners can retain the equity because everyone is paid in full, with interest.
Closely held Cooper-Booth initially listed
The case is In re
Allonhill and Aurora Will Complete Appeal on Judgment
The agreement allows the appeals court to determine whether the judgment is valid. Aurora won't be allowed to jump ahead of other creditors if it wins.
The petition listed assets of
Allonhill is appealing the Aurora judgment. The company said it's "likely" money will be left over from the Stewart contract to pay shareholders, who include some of the company's former employees.
The case is In re
Statistics
Sufficient Liquidity Portends No Increase in Defaults
The junk-bond default rate declined in the first quarter to 1.7 percent among non-financial U.S. companies, compared with a default rate of 2.2 percent at the end of 2013, according to a report this week from
The first quarter had seven defaults: five bankruptcies and two so-called distressed exchanges.
Defaulted debt totaled
Moody's ascribed the low default rate to "issuer-friendly credit markets" allowing companies with B3 or Caa1 ratings to refinance maturing debt.
Liquidity remains strong even among junk-rated companies. Moody's liquidity-stress index, measuring the percentage of companies with the weakest liquidity, stood at 4.4 percent at the close of the first quarter, below the 7 percent average since 2002.
At quarter's end, there were 37 companies in the category of most- likely-to-default, with default probability ratings of Caa2 or lower. The number was unchanged since December.
Moody's predicted that the junk default rate will rise to 2.4 percent by the end of 2014 before declining once again to 2.4 percent a year from now. The long-term average default rate is 4.5 percent. The highest was 14 percent in late 2009.
Downgrade
Moody's action was based on rising operating costs resulting from increased requirements from the
The downgrade was also influenced by last year's
New Filing
Beverly Hills Bancorp Files to Preserve Tax Losses
The bank subsidiary was taken over by regulators in
The balance sheet has assets of
The company has
The company had been deferring payments on the trust- preferred securities until
The case is In re
Watch List
Energy Future Misses Deadline for Filing 10-K
The company didn't make a
Negotiations with creditors on a prepackaged Chapter 11 filing continue.
The company was named
Advance Sheets
Court Apportions Burdens of Proof in Asbestos Cases
Although a bankruptcy court confirmed a Chapter 11 plan dealing with asbestos liability, the trust created to compensate creditors for their claims bore the ultimate burden of showing settlements are reasonable.
The case involved
The insurance companies sued in federal district court in
U.S. District Judge
Blake's opinion
Assuming the insurers shoulder their burdens, the asbestos trust has "the ultimate burden of persuasion to show that the settlements are reasonable."
The case is National Fire Insurance Co of Pittsburgh v.
Vexatious Litigant Determined by Objective Standard
A "vexatious litigant" can't be let off the hook because her feelings were "heartfelt," the
The case involved a woman whose Chapter 11 plan was set aside in the court of appeals. Her case was converted to a Chapter 7 litigation where she fought the trustee for five years, opposing almost every initiative and repeatedly appealing or seeking rehearing.
Frustrated, the trustee went to the bankruptcy judge and sought a ruling denying her standing, or the right to appear in any matter that didn't involve her directly. The bankruptcy judge denied the motion, and the trustee appealed.
The unsigned opinion by the three-judge
The bankruptcy judge declined to enjoin vexatious litigation because he said he believed her filings were "heartfelt."
The bankruptcy judge "abused its discretion and clearly erred" by not enjoining five years of vexatious litigation, the panel said.
The case is Richardson v. Melcher (In re Melcher), 13-1168,
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