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Nortel Corp. US disabled workers won their fight in bankruptcy court this week over severance pay. A judge ruled that the disabled workers were entitled to collect severance pay. Nortel had argued that the US disabled workers were not employees and therefore not entitled to collect severance pay. However, the judge overruled Nortel’s objections based, in part, on the fact that Nortel had sent notices to the workers in 2010 stating that the disabled workers “were being terminated due to a … [Read more...]

The short answer to that question is “no” but the better answer to the question is “probably so.” If you are filing a very simple, no asset Chapter 7 bankruptcy case, you may be able to figure out the bankruptcy forms, exemptions and rules yourself. However, even the simplest bankruptcy case can become difficult quickly and you risk losing assets because you are not familiar with complicated bankruptcy laws. To read about reasons why you need a bankruptcy attorney see, “Filing for … [Read more...]

Detroit filed a Chapter 9 bankruptcy case this week and became the largest municipal bankruptcy case ever filed in the United States. The filing comes after years of struggling under billions of dollars in debt and poor management. Emergency Manager Kevyn Orr has been trying to restructure the city’s debt but has also been warning of a possible bankruptcy. If the court approves the bankruptcy, it would allow city assets to be sold in order to generate money to pay the city’s massive debt. … [Read more...]

The Bankruptcy Code requires that certain information, such as social security numbers, account numbers, and other personal information, be redacted from documents filed with the court. However, Citigroup failed to redact personal information on forms filed with bankruptcy courts all across the nation. Some 150,000 consumers were affected by this error. In a 2012 settlement that is just now being unsealed, Citigroup agreed to correct the filings, notify debtors and offer free credit … [Read more...]

The Chapter 9 bankruptcy filings by Stockton, California and Jefferson County, Alabama have been in the news lately and have called attention to the rarely used chapter of bankruptcy. Chapter 9 filings are rare and can be blocked by judges and, when allowed, typically involve special districts and utilities. However, because of the recession and the economy, more cities and counties are seeking bankruptcy protection under Chapter 9 of the Bankruptcy Code. To read about some of the more … [Read more...]

A bankruptcy judge approved the final agreement for The Royal Appliance Manufacturing Co.’s purchase of the assets of bankruptcy Oreck Corp. Oreck had tried to sell the company for months before filing the Chapter 11 bankruptcy case. Royal, a subsidiary of the China-based TTI Floor Care, will pay $17.25 million for the company in addition to assuming several of the company’s debts. It plans to retain the Oreck factory based in Cookeville, TN but will close the Nashville headquarters. For … [Read more...]

Tommy Thompson hit gold, literally tons of it, when he discovered the wreckage of the SS Central America in the 1980s. However, even the millions of dollars that came from that discovery did not keep his creditors from filing an involuntary bankruptcy petition to try to collect money owed to them by Thompson’s company. However, an Ohio judge ordered that a receiver take possession of the bankruptcy company this past May. The receiver has now requested that the bankruptcy case be dismissed. A … [Read more...]

Even with billions of dollars in oil reserves, Brazil billionaire Eike Batista’s OGX may not be able to pay its debts to stay clear of bankruptcy. The company owes $45 million in short term debt that will become due this October. However, there is another $3.6 billion owed that will be payable over the next 10 years. Moody’s delivered another crashing blow as it lowered OGX’s bond rate last week. The struggling company may be looking at a potential bankruptcy if Batista cannot pay the … [Read more...]

Churches are not immune to the lagging economy and the recession that still afflicts a large section of the American population. In Anderson, Indiana, the Madison Park Church of God filed for Chapter 11 bankruptcy protection citing the recession and the closing of a General Motor’s plan as reasons for the bankruptcy filing. According to court documents, the church lists assets of less than $10 million with debts exceeding the $10 million mark. For more on this story see, “Big Anderson … [Read more...]

After defaulting on a loan agreement and citing a dispute with Hormel Foods Corp. as the reason for the default, AgFeed USA filed for bankruptcy protection under Chapter11 this week. The company, which supplies hog feed to China as well as being a hog producer itself, is listing assets of up to $500 million with debts only topping out at $100 million. An offer is already on the table for a possible purchase of the company as part of its restructuring. For more read, “Hog Supplier AgFeed Seeks … [Read more...]