All items from WSJ.com: Bankruptcy Beat

Unsecured creditors are campaigning to stop, or at least slow, Energy Future Holdings Corp.’s plan to auction its stake in the Texas transmission business Oncor, a sale the company says is crucial to resolving one of the biggest bankruptcies on record. 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.”)
Detroit’s bankruptcy case could end up as one of the fastest compared with other struggling big communities, with a judge set to rule on Nov. 7, The Wall Street Journal reports.
According to Bloomberg, fertilizer phosphate maker Mississippi Phosphates Corp. filed for Chapter 11 protection with more than $100 million in debt.



Posted 3 days 7 hours ago

Marussia’s British driver Max Chilton takes part in the first practice session of the inaugural Russian Grand Prix at the F1 Autodrome in Sochi on Oct. 10, 2014
Agence France-Presse/Getty Images

The U.K.-based Formula One team Marussia filed for the equivalent of Chapter 11 bankruptcy Monday, joining Caterham as the circuit’s second team to seek protection from creditors in less than a week.
Administrators from London-based restructuring firm FRP Advisory said the Marussia Formula One team was placed in administration, a process similar to Chapter 11 in the U.S., on Monday. In a statement, FRP Advisory partner Geoff Rowley said the team would skip the United States Grand Prix, scheduled for this weekend in Austin, Texas.



Posted 4 days 3 hours ago

An attendee demonstrates the Apple Watch after a product announcement at Flint Center in Cupertino, Calif., on Sept. 9.
Bloomberg

Some of the army of bankruptcy advisers guiding GT Advanced Technologies Inc. through bankruptcy by way of a fast settlement with Apple Inc. have counted Apple as a client, or still do, and those connections call for a close look, legal experts say. 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 4 days 6 hours ago

This week on The Broke and the Beautiful, Teresa Giudice will serve time in the prison that was the setting for “Orange Is the New Black,” and the Backstreet Boys settled with former boy-band mogul Lou Pearlman. Also, Girls Gone Wild made a settlement with the Hottest Girl in America 2010.



Posted 1 week 57 min ago

Fireworks burst over the Detroit city skyline during the annual Ford Fireworks show in downtown, Monday, June 23, 2014.
Associated Press

After a weekslong trial on the viability and fairness of Detroit’s restructuring plan, U.S. Bankruptcy Judge Steven Rhodes will hear closing arguments in the case on Monday.
A ruling could follow within several weeks, and city officials hope Detroit could be out of bankruptcy court as soon as Thanksgiving.
Most of the city’s creditors, including municipal employees and retired workers, have agreed to settle. Some individual objectors remain, arguing in part that the city’s emergency manager acted improperly to cut any benefits to pensioners.
The city’s largest holdout creditor unveiled a deal last week to stop fighting and instead take a major stake in the city’s revival.
Detroit filed for bankruptcy protection in July 2013 with an estimated $18 billion in long-term obligations.



Posted 1 week 6 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.
Stephen Lam

GT Advanced Technologies Inc. and Apple Inc. announced Thursday they reached an agreement on terms for the wind-down of sapphire-materials production in GT’s Mesa, Ariz., and Salem, Mass., locations. 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 week 6 hours ago

Texas entrepreneur Sam Wyly arrives at federal court in New York in May for closing arguments at his civil trial.
Associated Press

Samuel Wyly, the 80-year-old onetime Texas billionaire who recently filed for bankruptcy, wants to continue writing books that will “leave for the future what he has learned,” his lawyer said.
But for a man hit with $198.1 million judgment for securities fraud, paying two personal writing assistants at $32,000 a month might not be in the budget, a federal bankruptcy judge said on Wednesday.
Chief Judge Barbara Houser said Wednesday that Mr. Wyly’s budget “needs to be carefully scrubbed” and she wants to know if Mr. Wyly will make any money from his endeavor.
“Unless that’s a profit center, that may not be an appropriate use of funds during a Chapter 11 case,” Judge Houser said at a hearing in the U.S. Bankruptcy Court in Dallas, Texas.



Posted 1 week 1 day ago

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 week 1 day 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 1 week 1 day 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 1 week 1 day ago