All items from WSJ.com: Bankruptcy Beat

LightSquared burned through $59.1 million in May, bringing its total losses to $1.41 billion since Phil Falcone ’s wireless venture filed for bankruptcy in May 2012. 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.”)
General Motors Co. recalled even more vehicles because of ignition-switch problems, The Wall Street Journal reports.
A trustee sued Energy Future Holdings Corp. over a payment on $2.2 billion in loans, Bloomberg reports.
Quebec wants C$409 million ($376 million) from defunct railroad Montreal Maine & Atlantic Railway Ltd., WSJ reports.



Posted 5 weeks 2 days ago

Bloomberg News

The U.S. Supreme Court on Monday weighed in on a 13-year dispute between Argentina and investors who own the country’s defaulted bonds, and essentially ruled in favor of the bondholders. Here’s a primer for those who haven’t been following the case.
#1: What is at the center of the dispute?
In 2001, Argentina defaulted on its sovereign debt and declared a moratorium on repaying more than $80 billion in outstanding bonds. In 2005 and again in 2010, it offered current bondholders new debt that was worth about 30 cents on the dollar. Ultimately, investors holding about 93% of Argentina’s old bonds agreed, but some investors refused the swap, hoping to get a better deal at a later date. Argentina has not made payments on its old bonds since 2001, though it has been making payments on its new bonds.

Associated Press

#2: How did the dispute reach the Supreme Court?



Posted 5 weeks 2 days ago

Scottie Pippen in March 2012
Rick Bowmer/Associated Press

Retired basketball star Scottie Pippen didn’t score a slam dunk at the U.S. Supreme Court Monday.
The high court said it wouldn’t let the ex-Chicago Bulls player continue pressing forward with a defamation lawsuit against media outlets that falsely reported he had filed for bankruptcy, the Associated Press reports (via ESPN).
By declining to grant cert, the Supreme Court will let lower courts’ decisions dismissing the defamation suit stand.
Attorneys for Mr. Pippen and the media outlets weren’t immediately available to comment.



Posted 5 weeks 2 days ago

Momentive Performance Materials Inc. will likely revise its restructuring plan outline after a federal bankruptcy watchdog called it “woefully inadequate.” 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.”)
The city of Detroit reached new deals with its biggest municipal union and some bondholders, WSJ reports.
Auto company General Motors Co. is arguing that it had a shield from some liabilities that come from its ignition-switch recall issues, WSJ reports.
According to Reuters, Abu Dhabi-based conglomerate Al Jaber Group sign a restructuring deal with bank creditors.



Posted 5 weeks 3 days ago

Owners of a Delaware daycare center whose workers pushed three-year-old boys into a fistfight and then captured the event on a cell phone video can’t use bankruptcy to get out from under a possible damage award, a judge said this week.
The ruling, from U.S. Bankruptcy Judge Brendan Shannon, came in the Chapter 13 cases of daycare owners Colleen M. Grosso and Teresa Perez, who filed for bankruptcy last year after being sued for damages by families of the two little boys in the video.
Workers responsible for the March 6, 2012, forced fight between the toddlers have pleaded guilty to felonious second-degree assault and second-degree conspiracy charges. They have received probation, the Associated Press reported in June 2013.
The video itself has never been officially released, but, according to the Associated Press, police alleged that one child is shown screaming, crying and holding his face while being punched by the other, who is also punched.



Posted 5 weeks 5 days ago

This week on The Broke and the Beautiful, a New Orleans celebrity chef put his business ventures in bankruptcy, and the rescuer of Twinkies may be eyeing an NFL creampuff. Also, Alec Baldwin got a key to the city.
Scott Boswell owns some restaurants in the Big Easy, but it hasn’t been an easy week for the New Orleans chef. The brains behind fine-dining establishment Stella! and casual restaurant Stanley put some of his businesses in bankruptcy Thursday, Bankruptcy Beat reported. The businesses, which employ about 120 people, operate Stanley and, until recently, Stella!, which closed Wednesday. The two restaurants survived Hurricane Katrina in 2005, and Stanley was the first restaurant to reopen in the French Quarter after the storm.
A bankruptcy lawyer for the businesses and a representative for the companies couldn’t be reached for comment by Bankruptcy Beat. According to court papers, though, Stella! “has not in recent years been…financially successful” despite being “critically acclaimed and [a] culinary success.”



Posted 5 weeks 5 days ago

On Monday, a bankruptcy judge could clear Platinum Partners Value Arbitrage Fund LP to take over struggling Glacial Energy Holdings Inc. after winning a bankruptcy auction earlier this month.
The value of Platinum Partners’ winning offer hasn’t been disclosed in documents filed to the U.S. Bankruptcy Court in Wilmington, Del. Throughout the case, Glacial Energy was able to spend a $122 million bankruptcy loan from a senior lender, which had also offered to purchase Glacial Energy out of bankruptcy but lost at auction.
Judge Christopher Sontchi needs to approve the Platinum Partners deal before it can close.
Glacial Energy buys energy from other providers and then markets it to both commercial and residential customers. It serves 200,000 residential electric customers and 55,000 residential gas customers, according to court papers.
The energy company, founded in 2005, blamed its financial difficulties on changes in consumer behavior and increased market completion, which have taken a significant bite out of its revenue.
On Tuesday, a Dallas bankruptcy judge could allow Japanese bitcoin exchange Mt. Gox to keep the protections that it got when it filed for Chapter 15 bankruptcy in March.



Posted 5 weeks 5 days ago

Time & Life Pictures/Getty Image

The U.S. Supreme Court ruled that certain money inherited from individual retirement accounts can be taken by creditors to cover the debts of people in bankruptcy proceedings. 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 5 weeks 6 days ago

A New Orleans chef whose beloved restaurants rode out Hurricane Katrina put a handful of his business ventures into bankruptcy Thursday.
Scott Boswell, the brains behind the casual restaurant Stanley and the recently closed fine-dining restaurant Stella!, signed the Chapter 11 petitions of four companies that sought protection in the U.S. Bankruptcy Court in New Orleans. The businesses are Stanley of New Orleans LLC, Scott Boswell Enterprises LLC, The Paint Factory LLC and The New World Labor Force LLC.
Together, the businesses manage and operate Stanley and, until recently, Stella! and employ about 120 people. Court papers show that the companies aim to continue operating during the Chapter 11 restructuring.



Posted 5 weeks 6 days ago

A former law partner of Ponzi-scheme operator Scott Rothstein pleaded guilty to a criminal charge this week.
With Stuart Rosenfeldt’s guilty plea, to a count of criminal conspiracy, all three name partners of the now-defunct Florida law firm Rothstein Rosenfeldt Adler have admitted to criminal activity.
Mr. Rothstein, of course, notoriously admitted to operate a Ponzi scheme that bilked investors in bogus legal settlements out of well over $1 billion. He’s currently serving a 50-year prison sentence. And earlier this year, Russell Adler pleaded guilty to breaking federal election laws.
According to the Sun Sentinel, prosecutors said Mr. Rosenfeldt indirectly helped Mr. Rothstein’s Ponzi scheme through a conspiracy to engage in bank fraud. They also accused him of making tens of thousands of dollars in political campaign contributions, including to U.S. Sen. John McCain’s (R., Ariz.) presidential campaign, for which the law firm reimbursed him.



Posted 5 weeks 6 days ago