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Citing the low prices for aluminum and increased utility costs, Ormet Corp filed its petition for protection under Chapter 11 of the Bankruptcy Code.  The aluminum producer has received approximately $90 million in bankruptcy financing in order to continue operating while it is restructuring its debt within the bankruptcy.  Bankruptcy court documents show Ormet owes over $400 million in debts.  The debtor anticipates selling to a third party and will solicit bids from potential buyers while it … [Read more...]

GGW Brands LLC and several other related companies filed for protection under Chapter 11 of the Bankruptcy Code last week. Joe Francis, founder of the Girls Gone Wild franchise, and Steven Wynn’s Las Vegas Resort have been warring over an alleged $2 million gambling debt owed by Francis to the resort. The resort obtained a defamation judgment against Francis and began attacking assets to collect on the judgment. The bankruptcy filing has stopped collection efforts by the resort and placed … [Read more...]

ResCap has been granted two extensions on its exclusive right to file a plan of reorganization under its current Chapter 11 bankruptcy.  The debtor is now asking for a third extension that would allow it an additional 90 days to file a proposed plan of reorganization.  Bondholders argue that granting the extension will create a “nuclear war” and will only cause creditors to become more rigid in their current positions on restructuring.  Mediation has failed to produce a consensus on a bankruptcy … [Read more...]

Bankruptcy Judge Kevin J. Carey approved a $155 million loan by a bondholder group that allows School Specialty, Inc. to continue operations and to pay off a $50 million bankruptcy loan it had received from Bayside Capital.  The judge granted a request by the debtor to draw $129 million from the loan proceeds to continue operations while it restructures under Chapter 11 bankruptcy. Some unsecured creditors had argued that the loan by Bayside Capital was not sufficient and would force the debtor … [Read more...]

April 15 is right around the corner.  As taxpayers rush to file their tax returns, homeowners should not forget that they might be entitled to tax creditors for owning their home.  Because owning your home is a large investment, you should use it to your advantage when it comes to preparing your personal income tax returns.  Because the tax laws change each year, you may want to consider using a tax preparer to make sure you take every credit allowed for owning your home.  If you prepare your … [Read more...]

PowerWave, the wireless carrier responsible for installing the wireless infrastructure in Washington’s underground metro, asked a bankruptcy judge for permission to drop the Washington metro project because it was not profitable to the company.  Other wireless carriers have stepped in to request that the bankruptcy court allow them to finish the project alleging that PowerWave’s actions are a risk to public safety.  In court papers, wireless carriers allege that PowerWave instructed a contractor … [Read more...]

Last week, Detroit was declared to be in financial crisis by a state-appointed panel of experts.  The governor of Michigan is expected to appoint a financial manager to assume the city’s functions based on the findings of the panel of experts.  City officials oppose the financial manager, as the plan would result in a loss of power on that level.  Filing for bankruptcy relief under Chapter 9 of the Bankruptcy Code may be an option for Detroit; however, there would be disadvantages to the city … [Read more...]

The bankruptcy code does not change as often as some other types of laws; however, there was a major change to the Bankruptcy Code in 2005.  Smaller changes in local rules take place often but the Bankruptcy Code affects all consumers because that is federal law.  Major changes in the Bankruptcy Code included the addition of a means test, credit counseling and mandatory consumer financial management courses.  Some protections offered by the bankruptcy stay were eliminated with the changes to the … [Read more...]

Rhythm & Hues, which filed for Chapter 11 bankruptcy relief earlier this month, has said that it is unable to finish its project for the film ‘Seventh Son’ that was due this past December.  In order to keep the company working on the project, the film’s producer has offered to extend the bankrupt company $4.9 million in credit so that the artists working on the project can finish almost 200 shots that still need to be created under the contract. To read the complete story see, “Rhythm … [Read more...]

In the wake of the horrific murders at Sandy Hook, one lawmaker has proposed a tax designed to help develop and disseminate educational material to educate the public about video game addition and antisocial behavior. The 10% sales tax would be added to video games that contain an “M” rating. The “M” rating is assigned by the ESRB and means that the content in the video game is intended for mature audiences only. For more you can read, “Newtown Lawmaker Proposes 'Sin Tax' On Violent Video … [Read more...]