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Hedging Bets Former Dewey Partners File Claims Against Bankrupt Estate

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A review of more than 2,000 proofs of claim submitted in the Dewey & LeBoeuf bankruptcy shows that scores of former partners—many of whom have signed on to the so-called partner contribution plan—say that the estate owes them sums ranging from roughly $11,000 to more than $67 million, the American Law Daily reported today. The low-end figure belongs to former firm chairman Steven Davis, who was not allowed to participate in the settlement deal. Davis filed a claim for $11,725 against the estate August 2. At the other end of the spectrum, M&A heavyweight Morton Pierce, who is now at White & Case, submitted a claim for $67,334,183 on September 6. The two former firm leaders are among the more prominent names on the long list of onetime partners, vendors, former staffers, landlords, and various other creditors that have notified the court about their Dewey-incurred debts. Court filings show that at least 76 former partners have filed claims against the estate while also agreeing to take part in the proposed settlement, which would would give them waivers from Dewey-related liability in exchange for their contributions. The deadline for submitting proofs of claim was September 7; former partners who agreed to participate in the settlement had to do so by August 16 to avoid being hit with a late fee.

Florida Storage Facility RoboVault Files for Bankruptcy

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High-security storage facility RoboVault filed for bankruptcy protection in Florida as it faced losing its 155,000-square-foot location in Fort Lauderdale, Fla., to foreclosure, Dow Jones DBR Small Cap reported today. In its bankruptcy petition, the company said that it owed $20 million to BankAtlantic. RoboVault listed assets worth about $18.6 million in its chapter 11 petition.

BH Ocean Files Chapter 11 Plan That Liquidates Assets

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Tanker owner and operator B+H Ocean Carriers Ltd. filed a reorganization plan on Monday that liquidates its assets and distributes them to creditors, Dow Jones Newswires reported yesterday. B+H has already sold one of its ships, the Sakonnet, and is continuing to work to sell the other three, it said. The sale of the Sakonnet will go to satisfy Bank of Nova Scotia, which is owed $9.6 million secured by that ship. The sale of the others will go toward fulfilling Macquarie Bank Ltd.'s $23.6 million secured claim. Macquarie purchased this debt from Nordea Bank and Bank of Scotland. In the meantime, Macquarie is providing funding to keep the ships operational until they are sold.

Deal to Buy Vanns Still Possible Bankruptcy Trustee Appointed

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Montana retailer Vann's may have been given a brief reprieve after a bankruptcy court judge approved appointing a chapter 11 trustee yesterday, MTNews.com reported yesterday. The move means the Missoula-based company will not have to immediately head into chapter 7 bankruptcy and liquidation, and start closing their doors. Word came Monday that there may be a buyer in Bozeman who's interested in purchasing the electronics and appliance chain, which started in Missoula back in 1961. The interested party is mulling over a possible deal, but still has to finish reviewing some of the details of what may be involved in buying Vann's.

Ally Concerned ResCap Sale Could Impede Mortgage Deal

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Ally Financial Inc. is worried that the proposed sale of Residential Capital LLC's mortgage-servicing platform might hamstring ResCap's promise to abide by the terms of a landmark national mortgage settlement, Dow Jones Daily Bankruptcy Review reported today. Ally, ResCap's government-controlled parent, on Friday expressed concerns about whether Nationstar Mortgage LLC would fulfill ResCap's obligations under the settlement if it wins a coming auction for the bankrupt company's mortgage-servicing portfolio. Nationstar, a subsidiary of Fortress Investment Group, has been named the lead bidder in that contest, with a $2.5 billion bid. According to Ally, the tentative sale deal with Nationstar does not spell out that the prospective purchaser will "honor and perform all of the debtors' obligations" under a settlement the nation's largest mortgage lenders struck with the Department of Justice and scores of state attorneys general over alleged violations in mortgage origination and foreclosure practices. Ally said that it will not back the transaction unless ResCap's settlement responsibilities are preserved.

Vitro to Ask U.S. Court to Enforce Mexican Reorganization

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Vitro SAB, the Mexican glassmaker, will try to convince a U.S. appeals court today that its restructuring should be enforced in the U.S. in a case deciding how closely a foreign bankruptcy must conform to U.S. law, Bloomberg News reported today. Elliott Management Corp. and other holders of Vitro’s $1.2 billion in defaulted bonds won a victory in June when Bankruptcy Judge Harlin Hale ruled that the Mexican plan was “manifestly contrary” to U.S. policy. Vitro appealed directly to the U.S. Court of Appeals, where a three-judge panel is set to hear arguments today. Vitro, which makes glass containers and car windshields, defaulted on $1.5 billion of debt in 2009, including $1.2 billion of bonds, after construction and auto-glass sales plunged during the U.S.'s worst recession since the 1930s. The company also incurred $340 million of derivative losses from bad bets on natural gas prices and currencies.

NewPage Settles with Creditors over Bankruptcy Plan

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NewPage Corp., the largest U.S. coated-paper maker, settled with creditors over its plan to exit bankruptcy by agreeing to give first-lien noteholders all of the stock in the reorganized company, Bloomberg News reported yesterday. Lower-ranking noteholders and some other unsecured creditors will split $30 million in cash and the first $50 million that might come from any lawsuits filed by a litigation trust, NewPage said today. NewPage, based in Miamisburg, Ohio, filed for bankruptcy in September 2011, listing $3.4 billion in assets and $4.2 billion in debt.

Dynegy Emerges from Chapter 11

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U.S. power producer Dynegy Inc. said yesterday that it has emerged from chapter 11, less than a month after winning court approval for its bankruptcy plan, Reuters reported yesterday. The Houston-based company said it will have about $800 million in liquidity in the form of cash and will have eliminated more than $4 billion in debt through the chapter 11 process. In exchange for the elimination of debt and other obligations, unsecured creditors will receive equity representing a 99 percent stake in the reorganized company and $200 million in cash. Dynegy Inc. filed for bankruptcy in July while Dynegy Holdings filed for protection from creditors on November 7, burdened by costly power plant leases and amid a dispute over whether its parent had acted properly two months earlier in taking about $1.25 billion of its coal-powered plant assets.

Kodaks Cash Fell 21 Percent in August to 345.8 Million

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Eastman Kodak Co., which is under chapter 11 protection, said that cash fell 21 percent to $345.8 million in August, Bloomberg News reported yesterday. The net loss was $79.3 million after $12.6 million in interest expense and $11 million in reorganization costs. Sales were $168.4 million, and Kodak said that cash has increased among its foreign operations that are not in bankruptcy. Kodak on Sept. 28 filed a second request for an expansion of the exclusive right to propose a reorganization plan. If approved by the judge at an Oct. 17 hearing, the plan-filing deadline will become Feb. 28.

New Jersey Developer Files Reorganization Plan

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As Miami home builder Lennar Corp. tries to get Medford Village East Associate's chapter 11 case thrown out, the stalled New Jersey development owner filed a plan of reorganization on Friday that would maintain its ownership of the properties, Dow Jones DBR Small Cap reported today. The plan would pay Lennar $6.3 million, which includes some interest and the full return of a $6 million deposit, with yearly installments until March 2017. Lennar also would receive 2.5 percent interest until it has been repaid.