All items from WSJ.com: Bankruptcy Beat

Armand Assante attends Kazakhstan Fashion Week in October 2010.
Reuters

Actor Armand Assante says he’s the unlikely face of predatory lending. The tough-guy actor’s attempts to save his Hudson Valley mansion—which could be sold at a May 6 auction—have been well-documented.
Now, his lawyers are pushing a New York judge to reconsider her 2011 decision to let the bank foreclose on the 7,000-square foot home, where Mr. Assante, 64, worked on the “American Gangster” script and rehearsed his role as the Gambino family boss in the 1996 HBO movie “Gotti.” Indeed, his lawyers almost appear to be relying on the elements of a well-plotted screenplay in their push for the judge to change her mind.



Posted 5 weeks 5 hours ago

Some of Bitcoin enthusiast Mike Caldwell’s coins are pictured at his office in this file photo illustration in Sandy, Utah.
Reuters

Alydian couldn’t make money off its bitcoin mining rigs, but maybe someone else can.
Fresh out of bankruptcy, Alydian is looking for a buyer to purchase its bitcoin mining rigs and equipment while company leaders prepare to shutter the two-year-old start-up.
Alydian officials put a roughly $1 million minimum price tag on the company’s hardware, which is located in several U.S. data centers. The equipment is currently mining for bitcoins at 218 terrahashes per second, which is bitcoinspeak for how powerfully a mining system operates.
Interested bidders have until March 25 to put in offers. And payments for Alydian’s mining equipment—of course—can be made in bitcoin as well as regulated currencies like the good ol’ U.S. dollar.



Posted 5 weeks 7 hours ago

M*Modal Inc., a medical-services company owned by J.P. Morgan Chase & Co.’s private-equity arm, filed for Chapter 11 bankruptcy protection Thursday, following a decline in sales and mounting debt. Read the Daily Bankruptcy Review article via The Wall Street Journal.
(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.”)
According to Bloomberg, lawyers trying to sue General Motors Co. following the faulty ignition switch debacle might face being blocked by a judge’s order five years ago.
SecondMarket Inc. wants to open a private bitcoin investment fund to ordinary investors, The Wall Street Journal reports.
British Virgin Island resort owner Scrub Island Development Group Ltd. filed a restructuring plan, Bloomberg reports.



Posted 5 weeks 10 hours ago

Arcapita Bank is suing two Arab banks to recover a total of $45.3 million the investment firm transferred to them just before its 2012 bankruptcy filing. Read the Daily Bankruptcy Review article via The Wall Street Journal.
Comcast Corp., which once pushed for the opportunity to buy Houston’s struggling sports channel, has changed its mind. The DBR article is available 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.”)
Detroit wants to consolidate seven cases that are looking to overturn a ruling making the city eligible for Chapter 9 bankruptcy protection, Reuters reports.
China real estate developer Zhejiang Xingrun Properties is on the verge of bankruptcy and is expected to default on millions of dollars in debt, CNNMoney reports.



Posted 5 weeks 1 day ago

Creditors of Jacoby & Meyers Bankruptcy LLP want to push the firm into involuntary bankruptcy so they can get paid. Read the Daily Bankruptcy Review article via Law Blog.
The maker of Prime Time Flavored Cigars was unable to refinance its debt and has filed for Chapter 11 bankruptcy as it battles with the U.S. Department of Agriculture over how its products are taxed. The DBR article is available via The Wall Street Journal.
(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.”)
According to WSJ, bond insurer Financial Guarantee Insurance Co. wants to intervene in a lawsuit the city of Detroit filed to try getting out of a $1.4 billion debt payment agreement.



Posted 5 weeks 2 days ago

A sign hangs in front of a Quiznos shop in Richmond, Calif.
Justin Sullivan/Getty Images

Sandwich chain Quiznos filed for Chapter 11 bankruptcy protection Friday after reaching a deal to cut its debt by more than $400 million, or about two-thirds. Read the Daily Bankruptcy Review article via The Wall Street Journal.
(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.”)
According to Bloomberg, creditors of Jacoby & Meyers Bankruptcy LLP are trying to force the law firm into liquidation.



Posted 5 weeks 3 days ago

This week on The Broke and the Beautiful, production company Prospect Park filed for bankruptcy, Woody Harrelson now owns a hotel with a bankrupt past, and Backstreet’s back in bankruptcy court.



Posted 5 weeks 6 days ago

Justin Sullivan/Getty Images

Quiznos may have filed for bankruptcy Friday, but don’t despair, toasty-sub lovers. The sandwich chain will honor your gift cards and Groupons.
Lawyers for Quiznos are asking a bankruptcy judge to allow the company’s more-than 2,000 stores to honor gift certificates, Groupons and other promotional discounts.
Gift cards, gift certificates and coupons can pose a thorny problem in bankruptcy. Not only can companies choose whether or not to continue honoring outstanding cards after they file for bankruptcy, but the Bankruptcy Code also caps claims for unredeemed gift cards.



Posted 5 weeks 6 days ago

LightSquared has a busy week in bankruptcy court next week as a trial over Dish Network Corp. Chairman Charles Ergen‘s debt comes to a close and what is expected to be a weeks-long plan-confirmation trial begins.
Closing arguments are expected Monday in a trial over whether Mr. Ergen improperly acquired LightSquared debt for Dish Network rather than on his own behalf. The decision could bolster Mr. Ergen’s recoveries as a major LightSquared debt-holder or leave him lower on the totem pole if it is found his debt wasn’t properly acquired.
Although closing arguments are Monday, a decision isn’t expected right away. Nevertheless, LightSquared is kicking off its confirmation hearing on Wednesday. The hearings are expected to continue through the end of March.
The company is pursuing a plan led by Fortress Investment Group LLC that calls for a $1.65 billion loan while the company is in bankruptcy, and then a fresh $1 billion loan to finance the company once it exits Chapter 11.



Posted 5 weeks 6 days ago

The liquidators of Hellas Telecommunications (Luxembourg) II SCA, which was once the third-largest cellular service provider in Greece, are suing its former private-equity owners TPG Capital Management LP and Apax Partners LLP for what it calls “one of the very worst abuses of the private equity industry.” Read the Daily Bankruptcy Review article via The Wall Street Journal.
Textbook publisher Cengage Learning Inc. on Thursday received court approval of its bankruptcy-exit plan and said it is on track to emerge from Chapter 11 on March 31. The DBR is available via WSJ.
(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.”)
According to WSJ, Austria’s Hypo-Alpe-Adra-Bank AG is getting wound down but won’t file for insolvency.



Posted 5 weeks 6 days ago