Headlines

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Format: 08-20-2014
August 19, 2014
The Federal Reserve must clarify its emergency lending authority rules to foreclose the possibility of “backdoor bailouts” in a future financial crisis, a bipartisan group of lawmakers said in a letter yesterday, Bloomberg News reported. The central bank’s proposed rules for emergency lending place...
August 19, 2014
Detroit’s leading tax estimator, appearing as part of the city’s historic bankruptcy trial, defended the 10-year revenue model used to help justify imposing $7.4 billion in cuts on creditors including bondholders and pensioners, Bloomberg News reported yesterday. Robert Cline, an economist hired to...
August 19, 2014
Bankrupt James River Coal Co., after repeatedly postponing an asset auction, chose a unit of Blackhawk Mining LLC as the lead bidder, with an opening offer of $50 million, Bloomberg News reported yesterday. The Blackhawk unit will be the stalking-horse bidder at the auction to be held today in New...
August 19, 2014
Revel AC Inc., the struggling Atlantic City, N.J.-based casino operator, is still pursuing potential sale offers as it plans to shut down operations by Sept. 2 to stanch its cash loss of about $2 million a week, Bloomberg News reported yesterday. “It is still our goal and hope that we will have a...
August 19, 2014
LightSquared lost $51.4 million in July, bringing Philip Falcone's wireless venture's total loss since its May 2012 bankruptcy filing to $1.51 billion, Dow Jones Daily Bankruptcy Review reported today. In a Friday filing with U.S. Bankruptcy Court in Manhattan, the company again attributed the bulk...
August 19, 2014
With American Apparel and its newly restructured management facing intense investor scrutiny, the company’s earnings for the second quarter reinforced the retailer’s troubled financial footing, the New York Times reported today. Sales at American Apparel were essentially flat, at $162 million, in...
August 19, 2014
A judge in Mexico ordered state oil company Petroleos Mexicanos not to cancel contracts with Oceanografia SA, the services provider that Citigroup Inc. says defrauded the bank of $400 million, Bloomberg News reported today. The Aug. 15 decision, released today on a Mexican judiciary agency’s...
August 18, 2014
Detroit plans to sell about $975 million in bonds for retirement costs and some creditor settlements as part of its bankruptcy restructuring plan awaiting approval by a federal judge, Bloomberg News reported on Friday. The Detroit City Council approved four issues on Thursday, including $632...
August 18, 2014
Momentive Performance Materials, the quartz and silicone maker owned by Apollo Global Management, will embark Monday on a week of hotly contested hearings seeking court approval of a plan to cut $3 billion in debt and exit bankruptcy, Reuters reported today. The Waterford, N.Y.-based company filed...
August 18, 2014
Bankruptcy lawyers for Crumbs Bake Shop Inc. are preparing to hold an auction on Thursday to see who else has a sweet tooth for the chain, whose 49 cupcake stores closed suddenly on July 7, the Wall Street Journal reported on Saturday. An investor group that includes Dippin’ Dots owner Fischer...
August 18, 2014
In the race to punish GM for the ­ignition-switch defect that prompted its recall of 2.6 million cars, some litigants are following their own roads through state courts rather than joining the New York litigation, in which more than 100 lawsuits have been coordinated for pretrial purposes under U.S...
August 18, 2014
PricewaterhouseCoopers — hired and paid by the banks it examines — has now landed in the regulatory spotlight for obscuring some of the same misconduct it was supposed to unearth, the New York Times reported today. New York State’s financial regulator is poised to announce a settlement with...