All items from Bankruptcy Beat

Apple Inc. won’t be using GT Advanced sapphire in its iPhones.

Apple Inc. sapphire partner GT Advanced Technologies Inc. filed for bankruptcy following a payment dispute, which was said to be the final straw for the company, The Wall Street Journal reports.
Trump Entertainment Resorts Inc. Monday failed to persuade a bankruptcy judge to sign off on an agreement with Carl Icahn that would have allowed the beleaguered gambling company to use its scarce cash as it attempts to survive in Chapter 11, Daily Bankruptcy Review reports via WSJ.

Posted 3 weeks 2 days ago

Associated Press

Trump Entertainment Resorts lost a bid Friday to pull out immediately from the pension fund for 1,135 unionized employees at the Trump Taj Mahal, a decision that could mean only a brief reprieve for casino workers on the hard-hit Atlantic City Boardwalk. 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.”)
The trustee tracking down funds to repay creditors and investors of convicted Ponzi scheme operator Tom Petters has struck a deal to settle a $3.2 billion lawsuit for more than $322 million. Read the DBR article in WSJ.

Posted 3 weeks 3 days ago

Going-out-of-business sales are scheduled to begin this weekend at children’s clothing chain Naartjie Kids, which sought bankruptcy protection in mid-September.
The sales will take place at all 55 of Naartjie’s U.S. stores, in states including California, Georgia, Utah, New York, Texas and Virginia. Founded in South Africa in 1989, Naartjie makes clothing, accessories and shoes for newborns through tweens that embrace bright, colorful designs. The company debuted to American shoppers in 2001.
Great American Group LLC will run the sales after beating out two competitors during 12 hours of bidding at a Thursday bankruptcy auction. Friday, a bankruptcy court judge in Utah signed off on Great American’s hire and authorized the company to begin the sales. Great American’s offer—to pay Naartjie 116.8% of the cost value of the merchandise—is expected to bring in $8.1 million to help pay back lenders and creditors.
In court filings, Naartjie says it expects the sales to run until mid-January.

Posted 3 weeks 6 days ago

This week on The Broke and the Beautiful, a judge handed down prison sentences to “Real Housewives of New Jersey” stars Teresa and Joe Giudice, and some other “RHONJ” stars are in the news as well. Also, Detroit has made a major impression on Ben Affleck, who’s filming the latest “Batman” installment in the bankrupt city.

Posted 3 weeks 6 days ago

Associated Press

In what’s expected to be a contested sale hearing, Revel Casino Hotel in Atlantic City, N.J., will ask a bankruptcy court judge on Tuesday to approve a $110 million sale to Brookfield Property Partners .
Brookfield Property Partners was declared winning bidder on Wednesday at the end of a three-day auction for the property that began last week and continued into this week.
But a Florida real-estate developer has vowed to continue to fight Brookfield for the property. Glenn Straub, who led the bidding for Revel, said the bid from Brookfield was conditioned—a violation of the casino’s court-approved bid rules. Mr. Straub started bidding at $90 million in cash and was bid up to $95.4 million before he was topped by Brookfield’s $110 million offer.
Built at a cost of $2.4 billion, 47-story beachfront tower made its boardwalk debut in 2012 but failed to turn a profit, filing its second Chapter 11 case in June.

Posted 3 weeks 6 days ago

The slow-but-sure liquidation of Lehman Brothers Holdings Inc.’s assets continued during the first half of 2014, as the failed investment bank still had more than $4 billion in private equity and real estate assets as of June 30. Read the Daily Bankruptcy Review article in Private Equity Beat.
(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. doesn’t have to name names of the contenders as it searches for a lead bidder to open an auction for rights to its valuable Oncor stake, a bankruptcy judge said Thursday. Read the DBR article in The Wall Street Journal.

Posted 3 weeks 6 days ago

Teresa and Joe Giudice arrive in court on March 4.
Eduardo Munoz/Reuters

“Real Housewives of New Jersey” star Teresa Giudice said filing for bankruptcy made her and her husband stronger. Committing bankruptcy fraud made them inmates.
Judge Esther Salas sentenced Ms. Giudice to 15 months in federal prison Thursday after giving husband Joe Giudice 41 months and ordering him to pay restitution. The judge said they can serve time separately, meaning one of them will be home with their four daughters.

Posted 4 weeks 15 hours ago

Brothers Sandy Rosen, left, and Ken Rosen

Growing up in northern New Jersey, fraternal twin brothers Ken and Sandy Rosen didn’t share a dream of becoming bankruptcy lawyers. But since the late 1970s, the siblings have led parallel careers in the New York and New Jersey restructuring scenes—so parallel, in fact, that many in the profession don’t actually know they’re related.
Sandy forged the family path into bankruptcy law, deciding in law school that he liked how the practice “dealt with solutions to actual problems in real time.” He joined a creditors’ rights firm in 1978 and branched out on his own eight years later. Now, he represents small- and mid-market debtors as well as parties in bankruptcy-related litigation at his own law firm.

Posted 4 weeks 19 hours ago

Bankruptcy Beat’s panel of restructuring experts, The Examiners, this month will weigh in on Puerto Rico’s ongoing turnaround efforts.
In June, the Puerto Rican government approved a new law allowing the island’s public corporations to restructure their debts, although investors have lined up to challenge the law. Since then, one of those public corporations—the cash-strapped Puerto Rico Electric Power Authority utility—has grappled with its lenders over how to restructure some $9 billion in total debt. Known as Prepa, the utility’s troubles caused credit-rating agencies to push its bonds deeper into junk territory and sent bond prices plummeting.
Prepa’s woes come as Puerto Rico—which, including Prepa’s debt, owes mutual funds, individuals and others more than $70 billion—confronts high unemployment and an economy that hasn’t bounced back from the downturn. In this context, Prepa’s woes aren’t just affecting financial creditors; they’re also hitting Puerto Ricans hard.

Posted 4 weeks 21 hours ago

A question from Jeopardy about Elizabeth Warren
Jeopardy Productions Inc.

The nexus between the TV game show Jeopardy! and prominent Washington figures involved in financial regulation continued this week, with contestants testing their knowledge of facts about Sen. Elizabeth Warren (D., Mass.).
Contestants on Tuesday night’s show were confronted with a category entitled “Mrs. Warren’s Profession.” It was the second time this year that one of the creators of the U.S. Consumer Financial Protection Bureau, which Ms. Warren led in its early days, has made Jeopardy-related news.
The CFPB’s director, Richard Cordray, is a five-time Jeopardy champion who tried — but failed — earlier this year to recreate his winning ways.
While the five Warren-related questions posed by host Alex Trebek would not stump many Beltway insiders, not all contestants fared well. Here’s a recap:

Posted 4 weeks 22 hours ago