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October 5, 2006
Group
Expects Bankruptcy Filings to Hit Pre-BAPCPA Levels
The National Association of
Consumer Bankruptcy Attorneys (NACBA) says that according to a survey of
its members, bankruptcy filings are on the rise again, United Press
International reported yesterday. NACBA reported Wednesday that a survey
of 700 lawyers shows that 68.5 percent of those surveyed said their
bankruptcy filings are up in the third quarter of 2006 compared to the
first half of the year. Almost three out of five bankruptcy lawyers
reported that they expect filings to reach pre-bankruptcy reform
levels by or before the law's second anniversary in 2007, NACBA said,
adding that the new law's effect so far appears to be, primarily,
to create more paperwork.
href='http://www.upi.com/NewsTrack/view.php?StoryID=20061004-042948-4791r'>Read
more.
href='http://www.nacba.org/files/main_page/100406NACBAsurveynewsrelease.doc'>Click
here to read NACBA’s press release.
Loss
of High-Paying Manufacturing Jobs Forces Tough Decisions for
Idahoans
Like many other states,
Idaho has been experiencing a trend where good-paying
manufacturing jobs are being replaced with service-industry jobs,
which has been creating growing financial stress among its
residents, the Idaho
Statesman reported yesterday.
size='3'>Idaho
more than 8,000 manufacturing jobs since 2000; more than 22,000
lower-paying service jobs were created over the same period. As a
result, 34 percent of the state's working-age population went without
health insurance during all or part of 2002-03, and lingering credit
problems forced many families deeper into debt and contributed to a
record 9,000 bankruptcy filings in 2003. ABI ranks
w:st='on'>
size='3'>Idaho
ninth in the nation in households per filing, with one filing for every
55 homes.
href='http://www.idahostatesman.com/apps/pbcs.dll/article?AID=/20061004/NEWS0…'>Read
more.
size='3'>Autos
id='3'>Suppliers Object to Dana's Bifurcation Bid
Auto parts suppliers are
lashing out at Dana Corp., filing multiple objections to the bankrupt
company’s bid to bifurcate issues relating to reclamation
claims, Portfolio
Media reported yesterday. The suppliers,
including SKF USA Inc., Daido Metal Bellefontaine LLC, and Air Hydro
Power Inc., among others, filed their limited objections on Tuesday in
the U.S. Bankruptcy Court for the Southern District of New
w:st='on'>
size='3'>York
seeking to bifurcate issues relating to reclamation claims, arguing in
court papers filed Sept. 20 that all reclamation claims are invalid as a
result of the prior lien defense. However, Dana’s suppliers said
it is unclear whether Dana is also asserting that all creditors who
delivered goods during the 20 days preceding the bankruptcy filing
are not entitled to an administrative expense claim “simply
because a secured party held an alleged security interest in the
debtors’ inventory,” according to court documents. The
suppliers are arguing that all reclamation claims are entitled to
administrative expense status pursuant to federal bankruptcy rules
without regard to whether the goods are subject to a security
interest.
id='4'>GM’s Talks on a Partner Fall Apart
Talks among the
General Motors, Nissan and Renault on a three-way alliance ended
yesterday with a phone call from GM’s chief executive, Rick
Wagoner, to Carlos Ghosn, who runs both the French and Japanese auto
companies, the New York
Times reported. Experts pointed out that any
real chance for a deal ended a week earlier, when GM effectively
demanded the equivalent of a dowry from the two other companies in a
meeting at Renault headquarters. Still, the two sides had continued the
pretense that they would keep talking up to an Oct. 15 deadline until
yesterday, when Wagoner called Ghosn in Paris yesterday to bid him
goodbye.
href='http://www.nytimes.com/2006/10/05/business/05auto.html?_r=1&oref=slogin…'>Read
more.
id='5'>Creditors Ask Foamex to Speed Up Chapter 11
Proceedings
Unhappy with the speed of
Foamex International LP’s chapter 11 proceedings, a major creditor
has asked the bankruptcy court to deny the foam products company another
90 days to exclusively file its reorganization plan,
face='Times New Roman' size='3'>Portfolio Media
size='3'>reported yesterday. Murray Capital Management Inc., a
distressed-debt investor, said in court papers that the company had been
in bankruptcy long enough and noted that Foamex already had a fully
committed exit-financing package. Foamex has enjoyed a significant
windfall due to improved business since it filed its original
reorganization plan—a plan that would have cancelled all equity
interests and distributed the bulk of new equity to secured
creditors.
Saint
Vincent Bids to Sell Nursing Schools
Saint Vincent Catholic
Medical Centers filed a motion Tuesday asking Judge
face='Times New Roman' size='3'>Adlai
face='Times New Roman'>Hardin,
Jr. of the U.S. Bankruptcy Court for the
Southern District of New York to approve bidding procedures for an
auction to sell off its nursing schools in Queens and
w:st='on'>Staten
Island
size='3'>Portfolio Media reported yesterday.
Objections to the motion must be filed with the U.S. Trustee overseeing
the case by Oct. 9 and a hearing on the motion is scheduled for Oct. 11.
Saint Vincent’s motion for an order approving a settlement with
the City of
face='Times New Roman' size='3'>New York
will also be considered at that
hearing.
id='7'>Asarco Granted Extension to File Chapter 11
Plan
Copper miner Asarco has
received an additional three months to file its chapter 11 plan to deal
with its labor unions and to address its asbestos and environmental
liabilities, the Associated Press reported yesterday. The Tucson,
Ariz.-based company, which filed for chapter 11 last year, has
nearly 2,000 employees primarily in
face='Times New Roman' size='3'>Arizona
size='3'>and
w:st='on'>Texas
bankruptcy court judge has approved the extension for the company to
file a reorganization plan to Jan. 5.
href='http://www.kold.com/global/story.asp?s=5498959&ClientType=Printable'>Read
more.
Labor
Department Tosses FLYi Whistleblower Case
Air carrier FLYi Inc. has
prevailed in one of the first whistleblower lawsuits filed under
provisions of the Sarbanes Oxley Act, after the U.S. Department of Labor
rejected a former employee’s claim that she was sacked for
uncovering a payroll scheme,
size='3'>Portfolio Media reported yesterday.
The former employee filed the complaint in April 2003, accusing the
carrier of violating Title VIII of SOX. She claimed FLYi fired her when
she pointed out a pilots’ plot to manipulate a payroll agreement
between the carrier and the union. The decision, issued Sept. 29 by an
administrative review board at the Department of Labor, overturned two
earlier decisions by an administrative law judge that laid blame on FLYi
and awarded damages and attorneys' fees. The review board said the
plaintiff, former FLYi labor relations manager Stacy M. Platone, failed
to establish that she was fired due to activities protected under
SOX’s whistleblower provisions.
Judge
Orders Ex-Kmart Execs to Trial
A federal judge has
ordered former Kmart Chief Executive Charles Conaway and former
financial chief John McDonald to stand trial on accusations that they
misled investors about the retailer's financial problems before its 2002
bankruptcy filing, the Associated Press reported yesterday. In an order
on Friday, U.S. District Judge Paul Gadola in
w:st='on'>
size='3'>Flint
w:st='on'>
size='3'>Mich.
Conaway and McDonald's request to dismiss a civil complaint that the
Securities and Exchange Commission filed in August 2005. Kmart Corp.
filed for bankruptcy on Jan. 22, 2002, leading to the closing of about
600 stores, termination of 57,000 Kmart employees and cancellation of
company stock. The Troy, Mich.-based retailer reorganized as Kmart
Holding Corp. in 2003.
href='http://www.nytimes.com/aponline/business/AP-SEC-Kmart-Execs.html?pagewa…'>Read
more.
International
w:st='on'>
id='10'>Germany
face='Times New Roman' size='3'> Says Corporate Bankruptcies
Down
The number of German
businesses filing for bankruptcy declined by a quarter in July, boosting
optimism that
size='3'>Europe
strengthening, the Associated Press reported today. A total of 2,327
firms went bankrupt in July representing a decline of 25.4 percent from
the same month last year, the German Federal Statistics Office said.
Over the first seven months of the year, the number of corporate
bankruptcies fell by 16.5 percent to 18,592. The latest figures continue
a trend that started in early 2005. Over the course of last year, 6
percent fewer businesses went bankrupt than in 2004.
href='http://biz.yahoo.com/ap/061005/germany_economy.html?.v=1'>Read
more.
href='http://biz.yahoo.com/ap/061005/germany_economy.html?.v=1'>