Headlines

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Format: 08-28-2014
August 28, 2014
A ruling Tuesday by U.S. Bankruptcy Court Judge Robert Drain in the case of Momentive Performance Materials Inc. has shaken up the distressed investing world, Dow Jones Daily Bankruptcy Review reported yesterday. Momentive’s bankruptcy pits its owner, private-equity firm Apollo Global Management...
August 28, 2014
The U.S. Securities and Exchange Commission, while expanding disclosure requirements for one set of asset-backed securities, has stepped back from a plan to shed more light on a major part of the market, Bloomberg reported today. The five SEC commissioners unanimously approved a rule yesterday to...
August 28, 2014
Energy Future Holdings, the Texas power company that filed for bankruptcy last April, said that it will present a proposal for auctioning the company after it scrapped an earlier plan to exit chapter 11 under control of unsecured creditors, Reuters reported yesterday. The company was evaluating...
August 28, 2014
Scranton, Pa., could be bankrupt in three to five years because its pension funds are poised to run out of money, state Auditor General Eugene DePasquale warned Wednesday, The Scranton Times-Tribune reported today. That dire prediction could be optimistic, as the pension funds face paying out as...
August 28, 2014
A federal judge on Wednesday ordered PricewaterhouseCoopers to face a $1 billion lawsuit claiming that its bad accounting advice was a substantial cause of the October 2011 bankruptcy of MF Global Holdings Ltd., a brokerage run by former New Jersey Gov. Jon Corzine, Reuters reported yesterday. U.S...
August 28, 2014
Former Federal Reserve Chairman Ben Bernanke said that the 2008 financial crisis was the worst in global history, surpassing even the Great Depression, CNNMoney reported yesterday. While the "Great Recession" was scary, there's a reason it wasn't dubbed a depression: Bernanke's policy response. The...
August 28, 2014
Among the thorny issues surrounding the shutdown of Revel at the end of Labor Day weekend is the fate of its $129 million utility plant, The Philadelphia Inquirer reported today. It's not unusual in bankruptcy for the prosaic matter of utility bills to capture a lot of attention because electricity...
August 28, 2014
A bankruptcy judge has approved the sale of three James River Coal Co. mining complexes to a subsidiary of Kentucky-based Blackhawk Mining LLC, The Associated Press reported yesterday. The sale includes the Hampden complex in West Virginia, the Hazard complex in Kentucky but excludes the assets of...
August 28, 2014
Officials in Villa Park are considering pulling the tiny California city from California Public Employees' Retirement System (CalPERS), saying that the monthly costs of the state's giant public pension system are crippling the municipal budget, Reuters reported yesterday. Villa Park fears that...
August 28, 2014
French authorities placed the chief of the International Monetary Fund under official investigation on Wednesday, The New York Daily News reported yesterday. Christine Lagarde is being questioned over her role in a $531 million (400 million euro) payment to business tycoon Bernard Tapie in 2008. At...
August 27, 2014
Detroit sold about $1.8 billion in bonds tied to its water-and-sewer system on Tuesday, marking a key part of the city's efforts to improve its finances since filing for bankruptcy last year, The Wall Street Journal reported yesterday. Proceeds will be used to buy back existing debt and make...
August 27, 2014
Detroit and its major hold-out creditors were ordered on Tuesday into mediation, just a week before a key federal court hearing is to start in the city's historic bankruptcy case, Reuters reported yesterday. The move followed a Monday hearing before Hon. Steven Rhodes on Detroit's objection to bond...