All items from WSJ.com: Bankruptcy Beat

Laurie Selber Silverstein

Nearly a decade ago, attorney Laurie Selber Silverstein played a role in naming four new judges to sit on the Delaware bankruptcy bar in the largest expansion of the court’s history. Soon, Ms. Silverstein could sit alongside the judges she helped select.
The Third U.S. Circuit Court of Appeals said last week that it’s vetting Ms. Silverstein, 54, to become the next bankruptcy judge in Wilmington, Del. If selected, Ms. Silverstein will fill a vacancy created when Judge Peter Walsh retires at the end of the year from one of the nation’s busiest bankruptcy courts.



Posted 11 hours 5 min ago

In this Thursday, April 5, 1990 file photo, Donald Trump ascends the stairs with his fist raised after the opening of the Trump Taj Mahal Casino Resort in Atlantic City, N.J. Trump Plaza closed Sept. 16.
Associated Press

A bankruptcy judge Friday said he would grant Trump Entertainment Resort Inc.’s request to terminate its contract with the union representing more than 1,100 casino workers at the Trump Taj Mahal. The Wall Street Journal has the Daily Bankruptcy Review article here.
(Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)



Posted 16 hours 51 min ago

The Delaware Supreme Court Friday weighed in on a key issue in a battle over a $1.5 billion loan tied to the bankruptcy of General Motors Corp., and the word that came down is not good for the company’s lenders.
Asked to advise a federal appeals court in New York that will make the final call, the Delaware high court said creditors are entitled to rely on formal loan documents authorized by secured lenders—even if there’s a big mistake in the documents.
The decision hands an advantage to lower-ranking unsecured creditors in GM’s bankruptcy, who challenged the validity of the security anchoring a $1.5 billion loan from a syndicate of lenders, led by J.P. Morgan Chase & Co. Action continues in the New York court, which had consulted the Delaware court on a fine point of the law that governs loan documents filings.
Lawyers for GM creditors are attempting to persuade the U.S. Court of Appeals for the Second Circuit to rule that a mistake in the paperwork involving the payoff of a different loan effectively rendered the $1.5 billion bank loan an unsecured debt.



Posted 3 days 8 hours ago

This week on The Broke and the Beautiful, one-half of a “Real Housewives of New Jersey” couple gets another jail sentence, and Crumbs reopened in midtown Manhattan. Also, 38 Studios’ bankruptcy trustee is looking for $232,800.



Posted 3 days 12 hours ago

The new Apple Watch is pictured during an Apple event at the Flint Center for the Performing Arts in Cupertino, Calif., in this file picture taken Sept. 9.
Reuters

A much-anticipated hearing in the nascent bankruptcy of Apple Inc. supplier GT Advanced Technologies Inc. is scheduled to take place Tuesday in U.S. Bankruptcy Court in Springfield, Mass. At the hearing, a judge will hear why GT Advanced believes it should be allowed to file information about what led to the sapphire producer’s bankruptcy under seal and out of the public eye.
U.S. Bankruptcy Judge Henry Boroff said at a Wednesday hearing that he is having difficulty understanding what should be kept confidential in the documents, saying he is leaning toward unsealing as much as he can.



Posted 3 days 16 hours ago

Joe Louis Arena in Detroit
Getty Images

The city of Detroit is tearing down the Joe Louis Arena, where the Detroit Red Wings play, and giving the redevelopment efforts to its holdout creditor, The Wall Street Journal reports.
The public bus operator in Santiago, Chile, filed for bankruptcy Thursday with plans to restructure $368 million in debt. Read the Daily Bankruptcy Review article here.
(Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)



Posted 3 days 16 hours ago

The new Apple Watch is pictured during an Apple event at the Flint Center for the Performing Arts in Cupertino, California, in this file picture taken Sept. 9, 2014.
Reuters

Apple Inc. supplier GT Advanced Technologies Inc. has delayed a challenge to a court order cloaking information about the troubles believed to be responsible for the sapphire producer’s bankruptcy. The Wall Street Journal has the Daily Bankruptcy Review article here.
(Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)



Posted 4 days 16 hours ago

Rhode Island’s Donald W. Wyatt Detention Facility has struggled since officials at U.S. Immigration and Customs Enforcement pulled out their detainees in 2008, following the death of a Chinese national held there. That pullout happened shortly after the facility expanded to hold 770 detained people.
The detention center, which owes about $97.3 million in bonds, was taken over by an outside financial professional earlier this year.
The facility is supposed to kick in money to the city of Central Falls, R.I., which had its own financial problems and eventually filed for bankruptcy in 2011. When the city’s lawyers redrew revenue forecasts as part of its financial revival, lawyers pointed out that they hadn’t been getting—nor did they expect to receive—payments from the facility, which takes in detained people from Rhode Island, Connecticut, Massachusetts, New Hampshire, Maine and Vermont, according to its website.
An article in Wednesday’s Wall Street Journal shows how some cities and states that took on risk to build jails or prisons are hurting after crime unexpectedly fell and the inmate population declined.



Posted 5 days 12 hours ago

Marc Dreier
Associated Press

Marc Dreier won’t be leaving prison after all.
As Bankruptcy Beat has detailed, the disgraced former lawyer was scheduled to appear later this month in a New York courtroom to testify in a lawsuit tied to the bankruptcy of Mr. Dreier’s defunct law firm.
The suit, against a hedge fund that allegedly profited from Mr. Dreier’s long-running fraud, was settled Wednesday. The deal means Mr. Dreier can stay in the low-security federal prison in Minnesota where he’s serving out a 20-year sentence—the outcome he had been hoping for all along.



Posted 5 days 13 hours ago

Tundra, the wolf grabs a popsicle made of chicken broth at Oatland Island Wildlife Center in Savannah, Ga., on July 2, 2014.
Steve Bisson/Associated Press

A Colorado wolf sanctuary filed for bankruptcy, blaming the devastation from the High Park wildfire that scorched roughly a third of the 162-acre property where its 30 wolves roam.
Sanctuary officials had to leave the nonprofit’s LaPorte, Colo., property for nearly a month after the fire broke out in June 2012, said W.O.L.F. Sanctuary (Wolves Offered Life & Friendship) executive director Shelley J. Coldiron.
The fire—one of the worst in the state’s history—burned about 87,000 acres and destroyed more than 250 homes. The sanctuary lost several sheds and storage facilities to the blaze and is still fighting an insurer to pay for $60,000 to cover the damage. The property has also flooded; some of the fire-scorched earth no longer absorbs water.



Posted 5 days 14 hours ago