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January 72008

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January 7, 2008


name='1'>
Merrill Lynch

Appeal of ResMae Plan Stayed Again

U.S. District Judge Mary Pat
Thynge of the

District of Delaware approved a stipulation between the parties to stay
creditor Merrill

Lynch's appeal until a mediation session scheduled for March 17,
Bankruptcy Law360 reported on Friday. In

June 2007,

Bankruptcy Judge Kevin J. Carey confirmed ResMae's reorganization plan,
allowing the

subprime lender to emerge from chapter 11 and be acquired by hedge fund
Citadel Investment

Group LLC. Merrill Lynch Bank
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Roman'

size='3'>USA, Merrill Lynch
Mortgage Lending Inc.

and Merrill Lynch Funding Corp. immediately appealed the decision. In
September, the

parties first agreed to stay mediation through Oct. 31, 2007, then
pushed back through Jan.

15. 

href='http://bankruptcy.law360.com/Secure/ViewArticle.aspx?id=43201'>Read

more. (Registration required.)

Automotive


name='2'>
Claimants Appeal

Dana's Chapter 11 Plan

A group of people who
claim they were

injured by asbestos in Dana Corp. products has appealed the confirmation

of the auto-parts

supplier's bankruptcy reorganization plan, the Associated Press reported

on Friday. The

asbestos claimants' committee argued that Dana's bankruptcy plan didn't
set aside enough

money to settle all the asbestos personal-injury claims against the
company. The company

agreed to pay a total of $2 million to a group of about 7,500 who claim
they were injured

by asbestos in Dana products. Dana's plan allows other asbestos
claimants to retain their

right to sue Dana once the company emerges from bankruptcy. The

w:st='on'>

size='3'>Toledo,
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face='Times New Roman' size='3'>Ohio

size='3'>,

company's bankruptcy plan was confirmed by Judge
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Roman' size='3'>Burton
Lifland

in December, which calls for unsecured creditors to be
repaid between 72 and

86 percent on their claims. 

href='http://www.portfolio.com/news-markets/national-news/ap/2008/01/04/claimants-appeal-da

nas-ch-11-plan'>Read more.


name='3'>
Meridian Bounces Back

from Bankruptcy, Eyes Expansion

Meridian Automotive
Systems Inc. CEO Richard

Newsted says he is proud of his company's ability to stabilize
itself after emerging

from chapter 11 bankruptcy a year ago, despite a challenging industry
environment,

Crain’s Detroit
Business

size='3'>reported today. Since

emerging from bankruptcy, the company has jumped into the plastic
chrome-plating business,

announced its intent to buy an
face='Times New Roman'

size='3'>Ohio plant from Automotive
Components Holdings

L.L.C. and is planning to open two plants in

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size='3'>Mexico.
Newsted said

that

size='3'>Meridian was
profitable and protected

its liquidity in 2007, even though sales declined by $100
million.

w:st='on'>

size='3'>Meridian is
expecting to end 2007

with sales of about $700 million, down from $800 million last
year. 

href='http://crainsdetroit.com/apps/pbcs.dll/article?AID=/20080107/SUB/801070325/1033/-/-/g

rowth-ahead-meridian-bounces-back-from-bankruptcy-eyes-expansion&template=printart'>Rea

d more.


name='4'>
Congress May Act to

Boost Economic Growth

Amid concerns about the
economy, House and

Senate Democrats are preparing legislation to increase growth this year,

putting pressure

on the White House as it mulls a plan of its own, the
face='Times New

Roman' size='3'>Wall Street Journal reported
today. However,

policy makers face a difficult choice in the coming weeks as they decide

whether to craft

narrow remedies to improve the housing sector or come up with broader
measures to try to

lift consumer spending and business investment. Senior Bush
administration officials have

consulted in the past month with Martin Feldstein, president of the
National Bureau of

Economic Research and chairman of the Council of Economic Advisers in
the Reagan

administration. Feldstein argued for tax cuts to stimulate consumer
spending and business

investment. He also is calling for the White House and congressional
leaders to work out

the details of a stimulus package now and not wait for more bad economic

data. 

href='http://online.wsj.com/article_print/SB119967266887071397.html'>Read

more. (Registration required.)


name='5'>
Global Home Chapter 11

Plan to Go Up for Vote

Bankruptcy Judge
Kevin Gross signed off on
Global Home’s

disclosure statement on Dec. 28, giving creditors the chance to vote on
the chapter 11 exit

plan, Bankruptcy
Law360

size='3'>reported yesterday. Unsecured creditors that incurred total
losses between $80

million and $100 million are on deck to collect a smaller recovery of $1

million, which is

1 to 1.5 percent of their claims. Under the amended plan filed in
November, unsecured

creditors will also gain a portion of the 18.5 percent of litigation
proceeds that Global

Home can recover. The plan outlines a payment of $4 million to resolve
priority and secured

claims, and $3.5 million to pay off administrative claims in
full. 

href='http://bankruptcy.law360.com/secure/ViewArticle.aspx?Id=43196'>Read

more. (Registration required.)


name='6'>
Pacific Lumber Hearings

Scheduled, Plan Withdrawn

Following an order to
terminate Pacific

Lumber's exclusive period for filing a plan of reorganization, the U.S.
Bankruptcy Court in

Corpus

size='3'>Christi, Texas, has
scheduled a Feb. 28

hearing to consider approving any disclosure statements filed in the
case,

BankruptcyData.com reported today. The court also scheduled an April 1
hearing to consider

confirming any plans. The company had previously filed a notice to
withdrawal its chapter

11 plan on Dec. 20.

Delta

Air Studies Comair

Sale While Merger Options Are Reviewed

Delta Air Lines Inc., the

third-biggest
w:st='on'>U.S.

size='3'>carrier,

said it's still studying a possible sale of its Comair regional unit
even as a board

committee considers merger alternatives, Bloomberg News reported today.
A tie-up with a

rival and a Comair sale are among the most significant decisions pending

for Chief

Executive Officer Richard Anderson, who took over on Sept. 1. Delta had
left Comair's fate

to be resolved after leaving bankruptcy last year. 
size='3'>Delta

announced the board panel on Nov. 14, a day after hedge fund Pardus
Capital Management LP

wrote to Delta to urge a merger with United Airlines parent UAL Corp.
Pardus, which owns

shares in both carriers, said a merger would save money as jet- fuel
prices surge. 

href='http://www.bloomberg.com/apps/news?pid=20601109&sid=aWIwtWQaX_Lg&refer=home'>

Read more.


name='8'>
H&H Meat Files for

Bankruptcy

Texas-based meat
distribution company

H&H Foods has filed for bankruptcy, WKGBT.com reported on Friday.
Documents filed in a

federal bankruptcy court in
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size='3'>McAllen

size='3'>,

size='3'>Texas show that
the company is more

than $9 million in debt. Rep. Ruben Hinojosa's father, Salvador
Hinojosa, founded the

chorizo and meat distribution company in 1966. His sons, including
Congressman Hinojosa,

are owners of the establishment. A written statement from the

company indicated that the Mercedes-based business has a
reorganization plan that will

allow them to remain operating.

href='http://www.team4news.com/Global/story.asp?S=7580027&nav=0w0v'>Read

more.

href='http://www.team4news.com/Global/story.asp?S=7580027&nav=0w0v'>


name='9'>
Hawaiian Developer Files

for Bankruptcy

The developer of a Hawaiian
Home Lands project

declared bankruptcy a few weeks after abandoning construction because of

rising costs, the

Associated Press reported yesterday. Owners Fred and Gwen Yamashiro of
Menehune Development

Co. and Fredco Inc. declared bankruptcy on Dec. 31, putting into
question the development

of 132 homes on three islands, all in various stages of completion. Fred

Yamashiro last

month said that he bid $125 per square foot for the contracts two or
three years ago, but

costs have risen to $165 per square foot because of increases in
construction materials and

labor costs.