All items from WSJ.com: Bankruptcy Beat

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Brookfield Asset Management won the auction for Atlantic City, N.J.’s bankrupt Revel Casino Hotel with a winning bid of $110 million following a marathon session that ended Wednesday morning, according to a person familiar with the deal. 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 weeks 1 day ago

Associated Press

Billionaire Carl Icahn says he’d consider pumping $100 million into Trump Entertainment’s Taj Mahal if the casino’s union workers agree to another round of cuts. 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.”)
As DBR reports via The Wall Street Journal, A federal judge dismissed some of Thornburg Mortgage Inc.’s lawsuit against J.P. Morgan Chase  & Co. and other big Wall Street banks over margin calls that the subprime lender says pushed it into bankruptcy five years ago.



Posted 3 weeks 2 days ago

Melanie Cohen

As Crumbs Bake Shop Inc. began its final descent into bankruptcy late last year, the cupcake maker’s newly appointed chief executive, Ed Slezak, implemented a new strategy to help boost the company’s revenue: Sell Crumbs-branded products at everyday stores like Target and BJ’s Wholesale Club.
Crumbs collaborated with companies to create mass-market cupcakes and bake-at-home Crumbs mixes, but the new ventures had only been rolling a few months when Crumbs abruptly closed all its stores and sought Chapter 11 protection in July.



Posted 3 weeks 3 days ago

The exact circumstances behind Vision Industries Corp.’s Wednesday bankruptcy filing are still a little unknown, unlike the people directly and tangentially associated with the hybrid vehicle maker.
About five years ago, then-Gov. Arnold Schwarzenegger touted the company’s zero-emission semi-tractor trailer outside the California State Capitol.
“This is very exciting, this truck that is behind me here,” Mr. Schwarzenegger said, fumbling for a piece of paper from his pocket to remind himself of its name.
An approving nod from Vision Chief Executive Martin Schuermann—who used to lead the company that produced Arnold’s “Terminator 3″—reassured the governor he had pronounced the name of the truck, “Tyrano,” correctly.
Mr. Schuermann himself became a household name himself, thanks to a 2013 episode of “Celebrity Wife Swap” in which his wife, former MTV VJ Downtown Julie Brown, swapped places with WNBA legend Lisa Leslie.



Posted 3 weeks 3 days ago

A bankruptcy judge ruled Monday not to stop Detroit water shutoffs if people can’t pay their water bills, the Associated Press reports.
A federal appeals court on Friday ruled that a bankruptcy judge must review a bid to sell a $230 million claim in the Bernard Madoff liquidation, offering new hope to the seller’s bid to break off the deal. 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.”)
Lehman Brothers Holdings Inc. is suing Raymond James Financial Inc. to recover more than $2 million it says it is owed related to an old swap agreement, DBR reports via The Wall Street Journal.



Posted 3 weeks 3 days ago

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The search for buyers for the empty Revel Casino Hotel will begin again on Tuesday.
Bankruptcy lawyers will reopen the auction, which was cut short last week in observance of a Jewish holiday, at 9 a.m. at a Manhattan law firm’s office.
The 47-story-tall resort, which cost $2.4 billion to build, is expected to sell for a small fraction of that. Florida real estate developer Glenn Straub, for example, has offered $90 million in cash.
Rival bidders could include Richard Meruelo, whose family invests in real estate and unsuccessfully bid on the nearby Trump Plaza casino.
The top bid will need approval from U.S. Bankruptcy Judge Gloria Burns.
The casino and hotel shut its doors early this month after it couldn’t find a buyer to help it avoid its second bankruptcy since opening in 2012. Prior to shutting down, Revel had employed more than 3,000 people, according to documents filed in U.S. Bankruptcy Court in Camden, N.J.
Children’s clothing chain Naartjie Custom Kids Inc. plans to pick a liquidator next week to run going-out-of-business sales at the company’s 55 U.S. stores.



Posted 3 weeks 6 days ago

A seagull flies past the Trump Plaza Hotel and Casino, one of two casinos owned by Trump Entertainment Resorts, in Atlantic City, N.J.
Reuters

Even as Donald Trump considers buying back two Atlantic City, N.J., casinos that bear his name, the billionaire wants his name removed from the languishing properties as soon as possible—and he doesn’t think bankruptcy laws should get in his way. 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 weeks 6 days ago

The London and Frankfurt offices of law firm Bingham McCutchen, as well as a number of partners from the firm’s Hong Kong office, will join Akin Gump in a move that will open Akin Gump’s first office in Germany. The expanded corporate practice in London, Hong Kong and Germany will advise on corporate work including mergers and acquisitions, and the move unites Akin Gump’s U.S. financial restructuring practice with restructuring partners in London. The firm’s financial dispute resolution group will continue representing European and U.S. financial institutions, including hedge funds and investment management groups.



Posted 4 weeks 17 hours ago

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An auction to sell Atlantic City, N.J.’s Revel Casino Hotel will resume next week after no winner was chosen Wednesday afternoon. The Wall Street Journal has the Daily Bankruptcy Review article here.
The distribution of $7.3 billion raised in the international bankruptcy liquidation of Nortel Networks Corp. moved a step closer to fruition, but Justice Frank Newbould in Canada and Judge Kevin Gross in the U.S. will issue separate rulings. Read the DBR 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 weeks 21 hours ago

Marc Dreier
Associated Press

Imprisoned ex-lawyer Marc Dreier is back to writing legal pleas, this time on his own behalf.
Mr. Dreier, who is serving a 20-year prison sentence after pleading guilty to cheating investors out of hundreds of millions of dollars, faces a demand to testify in person in connection with a bankruptcy trial involving one of his former investors and his eponymous law firm.
But the one-time owner of multiple homes, an Aston Martin and 123-foot yacht doesn’t want to leave the confines of the low-security federal prison in Minnesota where he’s doing time to testify in the New York-based trial.



Posted 4 weeks 1 day ago