All items from WSJ.com: Bankruptcy Beat

An investment fund that parked all of its money with Bernard Madoff has agreed to give up $95 million for the benefit of Mr. Madoff’s victims in the second major settlement announced this week by the court-appointed official tracking down money tied to the biggest Ponzi scheme ever. Read Sara Randazzo’s Daily Bankruptcy Review story in The Wall Street Journal.
(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.”)
Philip Falcone ’s Harbinger Capital Partners is urging a Colorado judge not to throw out its lawsuit against Dish Network Corp. and Dish Chairman Charlie Ergen, saying they “fraudulently deprived Harbinger of control of LightSquared when it was needed most,” writes DBR’s Joe Checkler in the Journal.



Posted 6 days 9 hours ago

A new legal settlement will bring in nearly $500 million for Bernard Madoff ’s cheated investors, putting their total recovery to date above $10 billion. Read Jacqueline Palank’s Daily Bankruptcy Review story in The Wall Street Journal.
(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.”)
Dynamic Oil Trading Singapore Pte. Ltd. filed for liquidation on Tuesday, making it the second Singapore subsidiary of bankrupt Danish fuel supplier OW Bunker A/S to go bust, WSJ reports.
The country’s top court Monday agreed to hear arguments on whether homeowners can cancel their second mortgages in bankruptcy when their properties aren’t even worth the value of the first mortgage, DBR’s Katy Stech reports in the Journal



Posted 1 week 9 hours ago

The crisis experts this week were tasked with parsing the statements made by Apple Inc. related to its court fight with GT Advanced Technologies Inc.



Posted 1 week 10 hours ago

Mutual fund giant Franklin Templeton Investments is appealing a judge’s decision to allow the city of Stockton, Calif., to exit bankruptcy under a plan that pays Franklin-managed funds a fraction of the $37 million owed them but makes full payments for the city’s pensions. Read the Daily Bankruptcy Review story in The Wall Street Journal.
(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.”)
Trump Entertainment Resorts Inc.’s last remaining Atlantic City boardwalk casino, the Trump Taj Mahal, is almost certainly going to close, DBR reports via the Journal.
Altegrity Inc.’s senior creditors in July negotiated a “make-whole” provision designed to increase their odds of a large payout if the company files for bankruptcy, according to WSJ.



Posted 1 week 1 day ago

“New Jersey champagne” might sound like a sarcastic joke, but it’s really a thing, and the winery that invented it filed for Chapter 11 Thursday.
Renault Winery Inc. became so prominent among New Jerseyans for its champagne and other wines, in fact, that it earned Egg Harbor City, N.J. the unlikely nickname of “Wine City,” despite a very un-Napa like location 20 miles from Atlantic City.
By filing bankruptcy, Renault—which also runs a 50-room resort, two restaurants and a 7,200-yard golf course—narrowly escaped a scheduled sheriff’s sale Thursday brought on by a foreclosure by lender Ocean First Bank.
In Chapter 11, Renault plans to keep operating, and LivingSocial Inc. even emailed customers a discounted offer for a one- or two-night stay at Renault on Friday afternoon, with a “limited time extra discount” for those who clicked immediately.
Renault operating chief Dennis Del Vecchio in court papers blamed the bankruptcy on bad investment advice from a prior manager, who allegedly urged the company not to pay its mortgage or taxes while it sought a sale of the company. That sale falling through, and Hurricane Sandy ravaging the Jersey Shore and temporarily closing Renault, put the company on a path that eventually led to Chapter 11, Mr. Del Vecchio said.
Renault, the oldest winery in New Jersey, has had to reinvent its business before.



Posted 1 week 4 days ago

In this Nov. 8, 2012, photo, singer Ginuwine performs onstage at the Soul Train Awards at Planet Hollywood Resort and Casino in Las Vegas.
Jeff Bottari/Invision/Associated Press

This week on The Broke and the Beautiful, Ginuwine dismisses bankruptcy rumors, and Sister2Sister magazine had a short stay in Chapter 11.



Posted 1 week 4 days ago

A Manhattan bankruptcy judge will consider a settlement Tuesday that raises millions of dollars for Bernard Madoff‘s cheated investors.
Under the deal, real-estate developer Edward Blumenfeld, as well as his family and company, will return $32.75 million in cash that they received from investing with Mr. Madoff before the 2008 collapse of his Ponzi scheme.
They’ll also surrender $29.35 million in claims against Mr. Madoff’s investment firm.
The settlement, the product of multiple mediation sessions, resolves litigation that trustee Irving Picard brought in December 2010 to recover $88 million that Mr. Blumenfeld and the other defendants received from Mr. Madoff in the six years before his arrest, including $27 million in false profits. The lawsuit also sought to knock out the claims the defendants brought against Mr. Madoff’s firm.
Mr. Blumenfeld and his fellow defendants disputed the lawsuit and denied that they received the payments from Mr. Madoff’s investment firm with any knowledge or suspicion of fraud.
Mr. Picard, who is overseeing the liquidation of Mr. Madoff’s firm, says the deal will avoid the need for costly and time-consuming litigation.
Mr. Picard has recovered or struck deals to recover more than $9.8 billion of the $17.3 billion in principal that Mr. Madoff was convicted of stealing from investors. More than half of the recovered funds have been returned to investors.



Posted 1 week 4 days ago

OW Bunker vessels in Singapore.
O.W. Bunker

Denmark’s O.W. Bunker AS on Thursday placed its U.S. subsidiaries in Chapter 11 bankruptcy, just days after the shipping fuel supplier said it had discovered a $125 million fraud committed by senior employees at its Singapore unit. Read the Daily Bankruptcy Review story in the Wall Street Journal.
(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 week 4 days ago

Much to our delight, Wednesday night’s “Jeopardy!” episode included a category seemingly custom made for Bankruptcy Beat readers. For those who missed it, “Cause of Debt” included five debt-laden questions that at times stumped the contestants (Tournament of Champions contestants, no less).
How would you have done on last night’s show? Take the quiz to find out.

Courtesy Jeopardy Productions Inc.

$400 Question: One analysis says that those who graduated in 2012 with these had an average of almost $30,000.
Answer: What are student loans?
$800 Question: Be careful with getting a heloc, this type of “line of credit”; your house could go bye-bye.
Answer: What is home equity?
$1,200 Question (and a Daily Double! Risk it all!): The national council on the problem type of this activity says it affects six [million] to nine million Americans.
Answer: What is gambling?



Posted 1 week 5 days ago

Dendreon Corp. on Wednesday cleared its first bankruptcy court hearing, launching a process in which lenders owed $620 million have agreed to take less than half that amount from anyone willing to buy the cancer-drug-making business. 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.”)
The Securities and Exchange Commission wants $329 million from Samuel Wyly and his brother Charles’s estate, Bloomberg reports.
Denmark-based OW Bunker ’s bankruptcy has hit Singapore’s shipping-fuel dealers hard, The Wall Street Journal reports.



Posted 1 week 5 days ago