Fraud Isn’t the Only Ground for Revoking Chapter 13 Confirmation
Court in the Ninth Circuit takes more flexible approach to revoking confirmation.
Judge Name - Do not use it.
Ann Aiken
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Bankruptcy Code
Court Rules Relativity Media Can Exit Bankruptcy
A bankruptcy court judge on Friday approved Relativity Media LLC’s reorganization plan, clearing the way for the film company to emerge from chapter 11 protection, L.A. Biz reported on Friday. The ruling from the U.S. Bankruptcy Court for the Southern District of New York comes about a month after the judge conditionally approved Relativity’s reorganization plan, contingent on the company raising $80 million in new funding and getting a deal that would give actor Kevin Spacey and producer Dana Brunetti creative control of the studio. The Beverly Hills-based company secured $75 million in loans and debt financing and signed Brunetti as president of production, although Spacey has backed out of leading the studio, citing his busy schedule. Relativity says new financing will come in the form of a $40 million loan from Midcap Financial Trust and $35 million in convertible debt financing from hedge fund founder Joseph Nicholas.
Judge Approves GT Advanced Bankruptcy-Exit Plan
A bankruptcy judge approved GT Advanced's plan to exit chapter 11 protection, closing the book on the New Hampshire's manufacturer's case that began with a disastrous run-in with smartphone giant Apple Inc., Dow Jones Daily Bankruptcy Review reported today. Bankruptcy Judge Henry J. Boroff on Tuesday signed off on GT Advanced’s exit from bankruptcy, which was triggered by the collapse of a supply deal with Apple Inc. Tapped as a supplier of scratch- and shatter-resistant sapphire screen material for Apple's smartphones, GT Advanced piled on debt and transformed its business operation. Apple rejected the material GT Advanced produced, for reasons that were disputed. GT Advanced resorted to bankruptcy in October 2014 to repair its tattered finances. The company is returning to its roots as a manufacturer of industrial equipment. It reached a settlement with Apple that resolves the smartphone giant's claim to be owed $439 million due to the failed sapphire supply venture.
Courts Split on Stripping Down Residential Mortgages in Chapter 11
Ninth Circuit B.A.P. and Third Circuit duke it out over Section 1123(b)(5).
Judge Name - Do not use it.
Richard Seeborg
Magnetation Will Emerge from Bankruptcy
Magnetation LLC expects to emerge from bankruptcy sometime during the middle of the year, said Matt Lehtinen, the company’s CFO, the Grand Rapids (Minn.) Herald Review reported today. Magnetation, LLC last May filed for chapter 11 protection to restructure financially amid a tough global iron ore and steel marketplace. The company, which recovers iron ore concentrate from taconite waste tailings, secured $135 million in financing from certain holders of senior secured notes to implement a restructuring as part of the chapter 11 filing.
Trump's Former Atlantic City Jewel Exits Bankruptcy, Now Icahn's
Trump Entertainment Resorts Inc., the casino operator founded by Republican presidential candidate Donald Trump, emerged from bankruptcy court protection on Friday and is now a subsidiary of billionaire Carl Icahn’s Icahn Enterprises LP, Bloomberg News reported. While Trump hasn’t owned the parent of the Taj Mahal casino for years, his record in Atlantic City, N.J., has become a topic on the campaign trail. Trump opened the Taj Mahal in 1990. The parent company continually struggled with debt, and Trump Entertainment filed for bankruptcy court protection in September 2014. The filing coincided with a protracted downturn in betting in Atlantic City that led four of the city’s 12 casinos to close. It was the Trump casino businesses’ fourth time in bankruptcy.
Nationwide Class Suits Barred; Loophole Found for Fee-Only Chapter 13 Plans
Consumer debtors bat 500 last week in significant cases.
Judge Name - Do not use it.
Jack B. Schmetterer and James L. Robinson
Claim Buyer Doesn’t Acquire Seller’s Insider Status, Ninth Circuit Holds
Debtor-friendly opinion validates strategy for cramming down on secured lender.
Judge Name - Do not use it.
N. Randy Smith