All items from WSJ.com: Bankruptcy Beat

International treaties take years to complete as it is, so imagine the complexities at play in a hypothetical international insolvency treaty.
But at least people are starting to talk about it.
On Friday, at the International Global Restructuring Organization’s annual conference in Modena, Italy, Chief New York Bankruptcy Judge Cecelia Morris will speak about the bankruptcy of the city of Detroit, insolvency risk in Puerto Rico and the ongoing problems in Argentina. Judge Morris told Bankruptcy Beat that while formal international insolvency agreements related to sovereign states may be a few years off, getting the restructuring experts in the same room as the financial players is a huge part of moving closer.
“Financial people want to know that they’re protected,” Judge Morris said.
The U.S. is of course a long way ahead of many countries in terms of corporate restructuring, and even has Chapter 15 of the Bankruptcy Code in place for foreign companies with U.S. interests. Educating people in other countries on working with a group of creditors, especially when politics are involved, can be difficult.



Posted 1 hour 51 min ago

The Backstreet Boys perform during a concert at the City Hall in Vienna on July 15.
European Pressphoto Agency

The Backstreet Boys’ bankruptcy battle is over.
New court filings show the pop singers have settled their claims against their creator, Lou Pearlman, whose bankruptcy filing preceded the onetime music mogul’s arrest on fraud charges.
The Boys (all of whom are well over the age of 30) said Mr. Pearlman and his Trans Continental Records owed them roughly $3.5 million. As we previously reported, those claims were challenged last year by a bankruptcy trustee on the grounds that they lacked the necessary proof to back them up.
The fighting continued into this year when a bankruptcy judge ordered lawyers for the band and the trustee to work it out. And so they did, according to papers filed Tuesday in a Florida bankruptcy court.



Posted 2 hours 47 min ago

Debt holder losses on defaulted debt were in line with Moody’s Investor Service predictions, a new analysis of hundreds of bankruptcies by the credit ratings agency showed. 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.”)
GT Advanced Technologies Inc. will stop making sapphire materials under its agreement with supplier Apple Inc., Reuters reports.
A Brazilian court accepted a request for bankruptcy by MMX Sudeste Mineracao SA, part of businessman Eike Batista’s mining company, The Wall Street Journal reports.
An expert said Detroit can survive after bankruptcy, but there are risks, Reuters reports.



Posted 3 hours 29 min 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, 2014.
Stephen Lam

GT Advanced Technologies has signed a pact with Apple Inc. for an “amicable parting of the ways,” Luc Despins, attorney for the bankrupt supplier to the technology giant, said Tuesday in the U.S. Bankruptcy Court in New Hampshire. 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 1 day 3 hours ago

This post was updated with new information at 11:39 a.m. EDT.
GT Advanced Technologies has, for the third time, asked a court to push back the deadline for Apple Inc. to state its case for keeping secret the causes of GT Advanced’s bankruptcy.
 



Posted 2 days 3 hours ago

LDK Solar  USA filed for Chapter 11 protection Tuesday to implement a debt-restructuring agreement with senior bondholders owed about $295 million. 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.”)
Texas entrepreneur Samuel E. Wyly filed for Chapter 11 bankruptcy protection on Sunday, weeks after a judge ordered him to pay several hundred million dollars in a civil fraud case. Read the DBR article in The Wall Street Journal.



Posted 2 days 3 hours ago

Chelsea Heath, Girls Gone Wild’s 2010 Hottest Girl in America.
Chris Lambeth

Lawyers who are settling old legal disputes involving Girls Gone Wild have reached a deal with Chelsea Heath—the company’s Hottest Girl in America 2010—over thousands of dollars in prize money that she was never paid.
Ms. Heath, 25, a Louisiana native, was picked from thousands of contestants with help from fans who vote, and she later appeared on the Girls Gone Wild magazine’s cover, according to a press release about the contest. (She even got a shout-out from Mark Cuban, whose later-renamed HDNet broadcast the search: “Congratulations to Chelsea for being named The Hottest Girl in America.”)



Posted 2 days 4 hours ago

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 2 days 21 hours 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 3 days 3 hours 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 5 days 19 hours ago