All items from WSJ.com: Bankruptcy Beat

[Editor’s note: We received this post from five Weil, Gotshal & Manges partners in response to this Examiners blog post on the gender gap in the restructuring field.]

Weil Gotshal partners, clockwise from top left: Ronit J. Berkovich, Marcia L. Goldstein, Debra A. Dandeneau, Jacqueline Marcus and Lori R. Fife
Weil, Gotshal & Manges

It was disappointing to read Philip Dublin’s piece concluding that restructuring is likely to remain a male-dominated field. Mr. Dublin may be correct that bankruptcy is currently a male-dominated field. However, as five successful female bankruptcy partners at Weil, Gotshal & Manges, one of the leading restructuring practices in the world, we feel compelled to point out that it does not need to be this way.



Posted 5 weeks 6 days ago

[Editor’s note: We received this post in response to our series of Examiners’ posts on work-life balance.]



Posted 5 weeks 6 days ago

Reuters/Shannon Stapleton

RadioShack Corp. is in talks to shore up its finances but is warning it could be forced to file for bankruptcy protection if the talks don’t work out, The Wall Street Journal reports.
As Atlantic City, N.J., continues to reel from a string of casino closures and bankruptcies, several investors are circling the closed Revel Casino Hotel, including a Florida developer who has made a $90 million bid. WSJ 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 5 weeks 6 days ago

RadioShack , on the wrong side of history and struggling to turn itself around, said Thursday that it is in talks to raise more funds and hopes to announce an agreement soon. But it also said it’s about to run out of cash and could be forced to seek bankruptcy protection if the talks fail.
The company is considering just about anything–a sale, a short-term recapitalization, a debt restructuring–that might keep it afloat. RadioShack laid it all out in its quarterly filing with the Securities and Exchange Commission on Thursday. Here’s the relevant part:



Posted 5 weeks 6 days ago

Unsecured creditors of Lehman Brothers Holdings Inc.’s brokerage business will begin receiving their money back Wednesday, nearly six years after Lehman collapsed into bankruptcy and the brokerage was sold. 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 city of Detroit reached a tentative deal with Syncora that it hopes will ease its bankruptcy exit, WSJ reports.
WSJ takes a closer look into the bankruptcy of Trump Entertainment Resorts Inc. and how it will affect Atlantic City rivals.
Detroit is transferring its water department to regional authority, though the city will still maintain its own water and sewer system, WSJ reports.



Posted 6 weeks 8 hours ago

Wedbush analyst Michael Pachter and team lowered their price target on RadioShack (RSH) to $0. They explain why:

In May, RadioShack announced that it was unable to successfully negotiate consent from its lenders under the 2018 Credit Agreement and Term Loan to close up to 1,100 stores. The terms offered by lenders were not acceptable to the company. RadioShack’s operational decisions are now being vetted by creditors and equity investors are no longer relevant to management decisions—the creditors clearly are in control of the ship and, in our view, the ship is sinking. The credit agreement allows the closure of 200 stores per year or 600 over the life of the agreement. We believe a bankruptcy reorganization is imminent…



Posted 6 weeks 1 day ago

A federal appeals court recently overturned two of multiple fraud counts against the former chief executive of a bankrupt Indiana investment firm after prosecutors didn’t back up the charges with evidence.
Timothy Durham, the former chief executive of Indiana’s Fair Finance Co., in 2012 was convicted and sentenced to 50 years in prison for his role in a fraud that cheated some 5,000 investors out of more than $200 million.
The U.S. Court of Appeals for the Seventh Circuit on Thursday ruled that federal prosecutors’ failure to provide key evidence to back up two counts of wire fraud against Mr. Durham, while “clearly an oversight,” nevertheless warranted dropping the charges (h/t Indianapolis Star).
Specifically, Mr. Durham’s attorneys had argued that prosecutors didn’t provide evidence that a transfer of $250,000 and another of $50,000 constituted wire fraud. The appeals court agreed, citing the single-page printouts that showed that the transfers were made, but didn’t show how they were allegedly used to further the fraud.
“The government apparently intended to introduce additional evidence regarding the circumstances of these transfers but neglected to do so,” the court found. “Without the additional documentary evidence, the jury had no evidence about how the money was used.”



Posted 6 weeks 1 day ago

The Trump Plaza Hotel Casino in Atlantic City, N.J.
Associated Press

The Atlantic City Boardwalk casinos that bear the name of mogul Donald Trump returned to bankruptcy again Tuesday, in a filing that could mark the last effort to save the beaten-up casinos. 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 6 weeks 1 day ago

Over the years, Bankruptcy Beat has seen plenty of reasons offered as to why individuals and corporations file for bankruptcy. Recently, a peculiar one caught our eye.
In 2012, a New York man, Sultan Soliman, sought Chapter 7 protection in the face of a $110,000 court judgment issued against him following an incident in which he bit a neighbor (yes, bit him) on the nose in an elevator. In bankruptcy, many debts, including some court judgments, can be erased.
But the story didn’t end there. The man who unwittingly found himself in the crosshairs of Mr. Soliman’s teeth, Lev Vyshedsky, since last year has been urging a bankruptcy court judge to rule that Mr. Soliman still needs to pay the $110,000 bill.
In court filings, Mr. Vyshedsky points to a section of the bankruptcy code that prevents the discharge of debts that came about because of “willful and malicious injury by the debtor to another entity.”
So, is biting someone on the nose considered willful and malicious? It’s a question Judge Martin Glenn in New York is still grappling with. In a decision published Thursday, Judge Glenn said he needs to hear more evidence to determine whether Mr. Soliman’s actions were “a deliberate and intentional injury” to Mr. Vyshedsky, and “not merely a deliberate or intentional act that leads to injury.”



Posted 6 weeks 2 days ago

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 6 weeks 2 days ago