U.S. Bankruptcy Court

8 Stories

Hostess Files for Bankruptcy

Second Chapter 11 filing in recent years

(Newser) - Bad news for Twinkies lovers: Hostess filed for Chapter 11 bankruptcy protection today. But never fear, the company will continue operating during bankruptcy proceedings with help from a $75 million loan. "We remain hopeful that we can reach an agreement that will allow us to amend our labor contracts... More »

Judge Blesses Chrysler Deal; Bankruptcy Could End Today

(Newser) - Chrysler could shed its bankruptcy protection as soon as today, the Wall Street Journal reports, after Judge Arthur Gonzalez greenlighted the sale of the automaker's assets. Some Chrysler dealers and a group of Indiana pension funds had opposed the deal, which will split Chrysler between Fiat, the UAW, and US... More »

GM Bankruptcy a Gold Rush ... for Lawyers

Most complex filing ever will net hundreds of millions in legal fees

(Newser) - GM's expected bankruptcy is bad news for thousands of auto workers, dealers and managers—but a bonanza for the lawyers and consultants orchestrating the most complicated Chapter 11 in history. Bankruptcy specialists who are already billing Chrysler, Lehman Brothers and the US government stand to make hundreds of millions of... More »

Chrysler Halts Production to Lower Inventory

Automaker also appears in court to lay out bankruptcy plan

(Newser) - Chrysler idled its plants today for 30 to 60 days to reduce inventory as the company’s lawyers appeared in a New York bankruptcy court, the Washington Post reports. The attorneys outlined a plan to emerge from bankruptcy within 2 months. “We are quite mindful of the view of... More »

Judge Holds Madoff Assets for Feds

Holdings may go to government through criminal forfeiture

(Newser) - A federal judge stopped Bernard Madoff's assets from moving into bankruptcy today, saying the government may claim them through criminal forfeiture because of Madoff's Ponzi scheme, Bloomberg reports. US District Judge Denny Chin blocked more than $100 million from being moved, a setback to investors who had won the right... More »

Vick Regrets 'Heinous' Dogfights

Disgraced QB testifies to being fleeced by financial advisers

(Newser) - Michael Vick showed contrition in bankruptcy court today for the dogfighting that landed him in federal prison, the Atlanta Journal-Constitution reports. “I committed a heinous act,” said the suspended NFL quarterback, moved from a Kansas prison to appear at the Virginia hearing. “It was very irresponsible.”... More »

Vick Leaves Prison ... for Bankruptcy Court

Judge orders him to pay for transport

(Newser) - Michael Vick is out of jail, the Atlanta Journal-Constitution reports—though he’s in transit from Kansas to Virginia, where he’s to appear next week at a bankruptcy hearing. To add insult to injury, a judge ordered the NFL star to foot the $3,600 it costs to transport... More »

Disgraced Lehman CEO Fired

Face of the financial crisis 'terminated,' will stay on board of directors

(Newser) - Lehman Brothers boss Richard Fuld, who led the giant 158-year-old Wall Street brokerage firm into bankruptcy, has been abruptly terminated. The 62-year-old Fuld, who earned $484 million from Lehman over the last eight years, won't receive a bonus or severance payments, but will keep his salaried post on the board... More »

8 Stories