All items from WSJ.com: Bankruptcy Beat

A bankruptcy judge said he would allow Jon S. Corzine and other former MF Global Holdings Ltd. executives and employees to tap the rest of their insurance money to pay for defense costs, but he is “concerned” with how quickly the money is being spent—though it isn’t within his power to stop it. 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.”)
Energy Future Holdings Corp. bondholders are asking what happened to a proposal from NextEra Energy Inc . that would have meant more money for creditors of the Texas energy seller, which is working out its financial troubles in bankruptcy, DBR reports via WSJ.
The Detroit News looks at the city entering the second week of its bankruptcy trial.



Posted 1 week 1 day ago

This week on The Broke and the Beautiful, Teresa and Joe Giudice’s bankruptcy case could soon come to an end, and Girls Gone Wild founder Joe Francis has a $500,000 warrant out for his arrest. Also, Todd-Soundelux is selling its California sound studio.



Posted 1 week 4 days ago

What factors can make restructuring a difficult field in which to balance work and family obligations, and what should professional firms be doing to help employees? 
Business is a competitive sport, but restructuring has an added level of difficulty that strains any professional’s ability to balance work and family obligations. Of course, this assumes the playing field is level for all professionals, but we know by looking around us that it’s not. As the father of two teenage daughters, I want them to have the same opportunities to succeed and become a leader that my son has. To make that happen, we need a change in thought leadership on gender equality.



Posted 1 week 4 days ago

What factors can make restructuring a difficult field in which to balance work and family obligations, and what should professional firms be doing to help employees? 
Restructuring work is typically fast-paced, fluid and unpredictable (other than its unpredictability), with serious issues arising on a moment’s notice. Therefore, restructuring professionals are never “off the clock,” and many issues cannot wait until tomorrow. And if we are being honest, restructuring professionals often choose the work because the speed and seriousness of the consequences make the work more interesting and exciting than the same corporate transaction or litigation that develops at a slower, perhaps more rational, pace. However, being an “adrenaline junkie” in a practice where speed to a solution is often an important component of the solution itself, does not, simply put, lend itself to a lifestyle that caters to personal time or health goals.



Posted 1 week 4 days ago

Tuesday in White Plains, N.Y., Momentive Performance Materials Inc.’s first-lien lenders will ask a bankruptcy judge if they can vote “yes” to the company’s restructuring plan even though they already voted no.
Changing the vote to yes would pay those bondholders in full, in cash, the nearly $1.5 billion they are owed. Previously, more than 80% of them voted to reject the plan, as part of an argument to collect so-called make-whole payments, or premiums they felt Momentum owed them for refinancing their bonds.
The “no” vote would give the first-lien lenders replacement notes instead of cash, which Judge Robert Drain said should be subject to higher interest rates. Momentive has built those higher interest rates into its newest plan, but if the judge allows the vote change, the interest fight becomes moot.
Either way, Tuesday should move the silicone and quartz maker closer to final approval on its restructuring proposal, which would cut $3 billion from its balance sheet.
The 70-year-old company, owned by Apollo Global Management, filed for Chapter 11 protection in April as it faced a $60 million interest payment to creditors.
On Tuesday in Camden, N.J., the owner of two clubs inside the shuttered Revel Casino Hotel will fight to remain open.



Posted 1 week 4 days ago

The owner of the HQ Night Club and HQ Beach Club at the Revel Casino Hotel is suing the closed company, saying the clubs should remain open while their owner scrambles for approval of independent liquor licenses and access to a different parking lot for its patrons. 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.”)
A pharmacist linked to a deadly 2012 meningitis outbreak at New England Compounding Center was arrested in Boston Thursday, The Wall Street Journal reports.
Puerto Rico’s power company has hired AlixPartners to help its restructuring, DealBook reports.
Read DBR’s update on the Chapter 11 bankruptcy of oil and gas developer Matagorda Island in The Wall Street Journal.



Posted 1 week 4 days ago

This March 22, 2012, photo shows U.S. Bankruptcy Court Judge Steven Rhodes in Detroit.
Associated Press

Detroit’s historic bankruptcy trial began this week, and now everyone’s trying to read the mind of the bankruptcy judge who can approve or deny the city’s plan to eliminate $7 billion in debt.
For most of the opening statements from Detroit’s lawyers, U.S. Bankruptcy Judge Steven Rhodes was an observer. But the second day brought two tense moments as Judge Rhodes questioned Wall Street creditors who are fighting the plan with the argument that it treats the city’s retirees more favorably than other creditors.



Posted 1 week 5 days ago

This image released by HBO shows Natalie Dormer, left, and Diana Rigg in a scene from “Game of Thrones.” Todd-Soundelux, which is in bankruptcy, has done sound for the TV show.
Macall B. Polay/Associated Press

Sound equipment company Todd-Soundelux LLC is selling all of its sound equipment, including the Burbank, Calif., studio responsible for the postproduction sound of hit shows like “Mad Men” and “Game of Thrones.”
A bankruptcy judge last week gave Tiger Group and GA Global Partners the right to sell the 25,000-square foot studio, including all the equipment inside. Buyers can bid on the facilities and equipment on either floor, or both, and enter new lease agreements. The studio is “ready to operate,” Tiger said in a press release issued Wednesday.



Posted 1 week 5 days ago

What factors can make restructuring a difficult field in which to balance work and family obligations, and what should professional firms be doing to help employees? 

Over the course of more than two decades of distressed investing, I’ve learned two incontrovertible truths: (1) turning around troubled companies is intense, time-consuming and challenging; and (2) there is no greater reward than giving hope to a business that had been counted out.
The early stages of a turnaround can feel like a trauma center, as there is a fierce urgency to stabilize the business. This requires intense focus on critical decisions about cost structures, working capital and the strategic direction of the business. For a distressed investor, not only is the life of the business at stake, but so are the livelihoods of its employees. Frequently, this means sacrifices must be made on weekends and evenings to complete the hard work that is necessary. It certainly helps to have an understanding family.



Posted 1 week 5 days ago

What factors can make restructuring a difficult field in which to balance work and family obligations, and what should professional firms be doing to help employees? 
Discussions on the difficulty of “balancing” (or more accurately, juggling) work and personal obligations often assume that the problem is the professional’s dilemma. If it is, it’s certainly not a predicament an individual should have to solve alone. Perhaps the right question is how restructuring firms should adapt so that the firm and its employees can thrive.



Posted 1 week 5 days ago