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Category Archives: Business Bankruptcy

American Airlines seeks to leave bankruptcy protection, merger possible

airplane mergerBankruptcy and the pilots

American Airlines, whose parent group is AMR, has been under Chapter 11 bankruptcy protection since 2011, according to a December 7, 2012 Thomson Reuters News & Insight article. The company filed for bankruptcy because it needed to cut costs, namely $1 billion per year, mostly in labor costs. The AMR pilots union, Allied Pilots’ Association, has agreed to, after extensive and trying negotiations, a new contract. This contract not only gives fair and standard pay, but also 13.5% equity in AMR.

One problem that has arisen, though, through lengthy negotiations, is that the pilots have little confidence in AMR’s management, which includes CEO Tom Horton.

Is a merger in sight?

U.S. Airways Group Inc has, after some speculation, given a merger proposal to AMR. This would help AMR get out of bankruptcy, so the company is now making two plans—one to leave bankruptcy protection alone and is also working on details of a merger. While U.S. Airways would like to see a company that is split 70-30, in terms of AMR creditors holding 70% of the stock and U.S. Airways shareholders holding 30%. Some from AMR say that the 70% number might need to be close to 80%. If the two companies merged, the resulting company would be worth about $8.5 billion, just as much as Delta Air Lines Inc. Not all AMR creditors are onboard with a merger, though. It remains to be seen how and when American Airlines will emerge out of bankruptcy and whether or not the two airlines will merge.

Bank of America still finds themselves in the courtroom for their 2008 actions

Withholding important information from their shareholders results in Bank of American Corporation paying a high monetary settlement, as reported by Reuters in an online article published September 28th, 2012. Bank of America will be paying $2.43 million to shareholders who bought shares of the investment bank Merrill Lynch & Co. as a settlement for holding…Continue Reading

Radio station may be playing their last tune after filing for bankruptcy

Pembrook Pines Mass Media a New York media company may be able to keep their radio station assets according to an October 2, 2012 New York Law Journal article. Back in 2009 a default judgment was entered against Pembrook Pines Mass Media and Pfuntner for defaulting on their loans. Along with the judgment a forbearance…Continue Reading

Bronx bankruptcy lawyer comments on New York business filing for bankruptcy

Another private New York business has filed for bankruptcy as reported by Reuters on August 29th, 2012. Bain Capital LLC filed a bankruptcy petition seeking a Chapter 11 protection for its small cable-box repair company. Although the company repairs roughly 2 million cable boxes yearly, they have found themselves in severe debt. The company listed…Continue Reading

Bankruptcy judge rules that company may not give large bonuses to their executives.

A federal bankruptcy judge denied Hawker Beechcraft Inc. its request to pay its top eight executives massive bonuses, as reported in an August 24th, 2012 online Reuters article. The company claimed that the bonuses were to be a reward to the executives for staying on with the company. However, the judge found that a $5.33…Continue Reading

Bankruptcy case was transferred out of New York for not being debtor’s primary residences

Judge Gerber, a Southern District Bankruptcy Court Judge which is located in New York, found that a textbook publisher’s bankruptcy will not be heard in a New York even though all parties involved agreed to such venue, as reported by the New York Law Journal in a June 26th, 2012 article. The judge found that…Continue Reading

Kodak’s financial struggle leads to the company having to sell part of its corporation

Eastman Kodak Company’s bankruptcy filing is finally coming to an end but it leaves the company having to sell pieces of their corporation off, as reported in an August 23rd, 2012 Reuters online article. Kodak announced in late August that they plan to sell a majority of their consumer imaging business to pay down their…Continue Reading

Ritz Camera & Image files Chapter 11 bankruptcy protection

Ritz Camera & Image filed for Chapter 11 bankruptcy protection in June 2012. Ritz Camera is the largest specialty camera store chain in the U.S. Chapter The retailer faced liquidity problems and also had unprofitable stores. Under Chapter 11 bankruptcy, a corporation is protected for creditors and must reorganize its business. For Ritz Camera, that…Continue Reading

Madoff bankruptcy trustee tries to take legal action to block hedge fund manager’s settlement

In 2009, Bernard Madoff pleaded guilty to conducting an illegal Ponzi scheme. He is currently in federal prison, serving a 150-year sentence. Now, Irving Picard, the trustee for the case, has asked a judge to stop a $410 million settlement. This settlement will clear the case of a hedge fund manager who supposedly invested in…Continue Reading

Large bankrupt New York law firm asks ex-partners for $104 million

A July 11, 2012 Thomson Reuters article discussed the reasons and conditions for the $103.6 million request by bankrupt law firm Dewey & LeBoeuf. The firm is the largest U.S. law firm to declare bankruptcy. It also had offices worldwide. In May, it filed for Chapter 11 bankruptcy. The chief restructuring officer held a meeting…Continue Reading

Large New York law firm wants to award $700,000 in bonuses to employees that help it ‘wind down’ and finish the firm’s bankruptcy

The New York law firm Dewey and LeBoeuf, LLP went bankrupt for several reasons. One of the most prevalent reasons was its large guaranteed compensation packages and according to a July 5, 2012 Wall Street Journal article, the firm wants to keep it that way. The firm has 52 employees right now. Many attorneys and…Continue Reading

For American Airlines, layoffs, reduced benefits and greater productivity are not enough–retiree benefits are on the line

Since 2001, AMR, American Airlines parent company, has lost $10 billion while other airlines became profitable—at least for the past few years. Last November, the carrier filed for Chapter 11 bankruptcy protection. Now, AMR is suing to stop providing healthcare and life insurance benefits for its retired employees, according to a July 6, 2012 Washington…Continue Reading

Large New York-based multinational law firm tried to end its leases after it filed bankruptcy

Recently, the bankrupt law firm Dewey and LeBoeuf tried to terminate 25 leases. Fourteen of these leases were throughout the United States and the rest were in other countries according to a June 20, 2012 Thomson Reuters article. As the company shuts down, it has realized that it had no use for the office space,…Continue Reading

Bankruptcy does not prevent airline crash suit, judge rules

Air carriers Pinnacle Airlines Corp. and Colgan Air, filed for bankruptcy. The companies provided services for Continental Connection. A May 15, 2012 New York Law Journal article discussed a Continental Connection/Colgan flight that had crashed before the bankruptcy, near the Buffalo Niagara International Airport . The Chapter 11 bankruptcy was designed for airline reorganization. A…Continue Reading

In hopes of a management-union deal at American Airlines, judge delays ruling on union contracts

American Airlines, under Chapter 11 bankruptcy protection since November, is trying to save $1.25 billion in labor costs. According to a Thomson Reuters June 22, 2012 article, other airlines have gone through this process before and it made them more competitive. The labor cutting measures targets pilots, flight attendants and some ground crew. American Airlines…Continue Reading

Federal agency takes over pensions from large New York law firm during its bankruptcy

The Manhattan law firm Dewey & LeBoeuf recently filed for bankruptcy. Unfortunately, its pensions were underfunded by $80 million, according to a June 18, 2012 New York Law Journal article. The Pension Benefit Guaranty Corporation (PBGC) is the federal agency taking over Dewey and LeBoeuf pensions. The PBGC will provide benefits to Dewey and LeBoeuf…Continue Reading

A turnaround for American Airlines

Bankruptcy plans and American Airlines labor relations challenges were discussed in a past post, but a June 15, 2012 US News article discussed positive strives the carrier is making. While under Chapter 11 bankruptcy protection, the airline, a large company, is shielded from creditors while it restructures its business. Revenue from American’s Latin America flights…Continue Reading

Major American bus company files for bankruptcy

Numerous airlines have filed for bankruptcy and now the same troubles have reached ground transportation. In a January 3rd, 2012 New York Times article it was reported that Coach America filed for bankruptcy protection. The company, which is one of the country’s biggest bus operators, filed for a Chapter 11 protection in a Delaware bankruptcy…Continue Reading

Bronx bankruptcy lawyer comments on Lee Enterprises filing for bankruptcy

Bronx bankruptcy lawyer comments on Lee Enterprises filing for bankruptcy Bankruptcy protection hits the news. The New York Times reports in a December 12th, 2011 article that Lee Enterprises filed for Chapter 11 bankruptcy. Lee Enterprises the third-largest newspaper publisher, publishing 48 daily newspaper sought for the court’s protection to refinance nearly $1 billion in…Continue Reading

Mets bring in another player for financial support

New York Mets bring in another player for financial support The New York Mets baseball team announced that they have enlisted the help of CRG Partners, a company that assists in “special talents financial advisory work, restructuring and reorganization, and turnaround management.” The New York baseball team openly admitted that they were in need of…Continue Reading

Bankruptcy court appoints new leader for solar energy company

  After filing for bankruptcy the California energy company, Solyndra, struggles to restructure itself, as reported in an October 13th, 2011 New York Times article. In an effort to help the company with its financial struggles the bankruptcy court handling the case approved the hiring of a new officer, R. Todd Neilson. Mr. Neilson previously…Continue Reading

Bronx bankruptcy law firm shares news about a hacker attack in response to the arrest of members of an antipoverty group

A hacker group has been attacking websites for the City of Orlando in retaliation for the arrest of members of an antipoverty group, The New York Times reports. “Citing Homeless Law, Hackers Turn Sights on Orlando,” The New York Times, Friday, July 1, 2011. The hacker group is Anonymous. In the past they claimed responsibility…Continue Reading