June 17, 2002 

Daily Bankruptcy News

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Also available on the Web (with links to the news stories)  at: http://bkinformation.com/News/DailyNews.htm

Prior editions available at http://bkinformation.com/bankruptcy_news.htm

         
Bankrupt Lottery winner rolls dice at auction - Lucky once again, Mackey Brown may take home half a million
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Asbestos lawsuits choking courts, putting companies in jeopardy
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Comdisco reorganization gets nod
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Enron:

V&E Reacts to Enron Shareholders' Latest Allegations
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$680 million paid to top Enron execs in '01
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Enron faces 'hornet's nest' of charges
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Enron: the hard fall
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Congressmen Held Stock in Target Firms
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Enron's legal fees are piling up
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Enron's Severance Pay
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Two Firms Bill $28.5 Million on Enron Matters
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Andersen Verdict Will Likely Help U.S. Government's Probe of Enron
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Andersen verdict may aid government's Enron case
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Andersen verdict may not help Enron probe
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New board rules: Directors face mounting scrutiny in Enron's wake
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CUB, industry backing privatization plan for PGE
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PUC tells cost of Enron's moves
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Andersen Trial Yields Evidence in Enron's Fall
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'Enronitis' leads to audit committee scrutiny
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Industry Insight: Hatchet job
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Telecoms:

XO Communications Initiates Dual Track Chapter 11 Filing to Implement Recapitalization
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Regional Carriers Thriving Amid National CLEC Wreckage
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New bid for Ebone emerged Friday say KPNQwest staff
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Dead Telecoms Networks Coming Back To Haunt Survivors
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Birch trying to hold off bankruptcy
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Global Crossing Faces Unusual Claim
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Teleglobe Units Seek OK Of Auction Rules For US Assets
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Preliminary deal reached with KPNQwest workers
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Noted company facing reorganization woes
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Qwest CEO Nacchio Resigns Amid Telecom Firm's Mounting Financial Troubles
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Court Grants Flag Telecom Fourth Interim OK To Fund Units
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When tech companies hit the skids, some good ideas remain
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Judge approves Pinnacle DIP
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Safety-Kleen Creditor Panel Sues Pre-Petition Lenders
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Adelphia:

Another Adelphia default looms
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Adelphia Moves to Cover Loans
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Adelphia taps PWC
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Adelphia's Orlando, Fla., Operations in Limbo During Firm's Financial Woes
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Adelphia: Says Deloitte To Send Response Letter To SEC
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Company's Ills Further Deflate Buffalo's Hopes
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Cable Operators Scramble To Avoid Adelphia Stigma
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SEC filing cites more Adelphia woes
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Insurers' Fiscal Troubles Stay Litigation - Reliance, Phico, Legion cases in limbo
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Banks see bad loans rising: Yet profits continue to fatten bottom line of banks here and elsewhere
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Onyx to bid again on Safety-Kleen asset
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Burlington Industries eyes sleeker, tech-savvy model
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There's a fungus among us: Mold attacks real estate
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Steel:

Gov't Secures Steel Worker Benefits
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MCA/RIMCO: Cash crunch doomed plan
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Economy:

Weak Stock Market Threatens To Unwind Economic Recovery
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Levitt Rails Against Lax Ethics
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  Accounting:

Andersen Will End Audits After Jury's Guilty Verdict
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Andersen guilty
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Jurors find Andersen guilty; say shredding meant nothing
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The jury makes the firm's best grounds for appeal moot
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Former Sidley Austin Partner Called Key to Andersen Verdict
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Memo Turned the Tide in Andersen Trial
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Response from Arthur Andersen LLP on verdict
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Andersen Jury Wins Lawyers Admiration

Deliberations came down to just one juror holding out
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Andersen guilty of obstruction
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A New Accounting: Andersen Resumes on the Move
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Andersen's Battles May Continue
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Q&A: What now for Andersen?
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Andersen Staff Ties Up Loose Ends
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Paydays Won't End for Lawyers
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Impact to reverberate from Wall Street to D.C.
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Analysts: It's the end of Andersen
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An Unlikely Clarion Calls for Change
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Half of Jury Began Deliberations Backing Andersen, but Support Gradually Eroded
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Roll of dice pays off for Justice
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Jurors Tell of Emotional Days in a Small Room
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Andersen appeal to decry focus on firm's past problems
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After Andersen, the Big Four poised for more hiring, more clients, more caution
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Crucial Misunderstanding or a Calculated Gamble?
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Jury ignored shredding, deleted e-mails in convicting Andersen
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Markets Did Not Reward Decision to 'Dump Andersen'

In glory days, Andersen led from the front
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Many Change Auditors With Ease
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Blast From Ex-SEC Cop Shows Shift in SEC's Strategy

Paper cuts are bleeding Andersen to death
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A Victory Against Andersen, and a Signal to Witnesses
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Deloitte-Andersen deal limps to finish line
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Andersen workers say they're getting bad rap
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Attorneys, accountants work together, apart
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Verdict Does Little to Advance Reform of the Audit Industry
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Accounting Market to Be Tense As Andersen Found Guilty
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Andersen, Partners and Staff May Face More Legal Battles
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Employees see verdict as 'a kick in the teeth'
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Lawyer Defends Her Andersen Role
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Federal legislation would rein in accounting firms
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Judge Instructs Andersen Jury; Defense Calls for Mistrial
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Audit industry faces tough road to reform
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Big Four Feel Andersen Fallout
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Andersen defender Hardin follows his own path
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Hardin loses battle, but wins stardom
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Even in defeat, Rusty Hardin receives high praise
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Calpers Considers Options Accounting
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Bidding opens for Pentacon
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Changing economic fortunes give lift to bankruptcy filings
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Bank listed as biggest Lansdale Medical creditor
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Securities brokerage ratings come under fire
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Sunterra:

Sunterra's $300M DIP approved
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Sunterra Sues Andersen
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Kmart:

Kmart Reports Huge Loss
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Seven Named To New Equity Committee In Kmart Bankruptcy
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Kmart: 'Some Improvement' In May Comp Sales From April
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Kmart Available Cash $1.1B At May 1
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New Bankruptcy Opinions
(No new opinions today)

Bankruptcy Jobs - 152 Jobs - Last Updated June 10, 2002
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Bankruptcy Court Web/Pacer Site Directory

ImClone:

Martha Stewart Living Ads May Decline in Inquiry
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Martha’s Tabloid Dish - Questions about her ties, financial and otherwise, to a CEO accused of insider trading have hurt her stock
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Law Firms:

Perkins Coie steels itself for longer recession: The law firm's business remains flat, but it is preparing for an economic turnaround in 2003
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Pillsbury Loses Two Litigators to Latham - Firm also plans to delay the start date for associates in several offices
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Big-Firm Partners Worry About Liability - Restructuring is a hot topic again
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Consultants increasingly more important to law firms
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"Unsexy" Firms On the Make in DC
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New bar code: Law firms shed 'democratic' structure in favor of corporate governance models
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Defections Come as Firm Delays New Associates Coming Aboard
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Holland & Knight Absorbs Seattle Law Firm
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Lawyers discover risk, reward in branching out on their own
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Tech downturn has area law firms refocusing
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The Lure of the Bay Area
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Lenders must be prepared to act aggressively in loan workout process
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Bankrupt Cancer Treatment Firm to Go Out of Business
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Bankruptcy Hearings Begin for Denver-Area Rock Promoter
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No Market Rebound Until Companies Come Clean
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Airlines:

From the start, the federal government's airline bailout was a bad idea
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Airlines cut deep to stay aloft
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US Airways Could Seek Bankruptcy unless Employees, Suppliers Make Concessions
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UAL, Pilots Reach Cost Accord
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Pittsburgh Region's Fate Closely Linked to Economic Health of US Airways
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Winter's Frustrations Linger for U.S. Airline Industry
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TWA Wins Confirmation Of Chapter 11 Liquidation Plan
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Bankruptcy Court approves Marc Resorts sale
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Ramo Defense Systems files for reorganization: Chapter 11 follows litigation loss to former financier
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Electricity:

PG&E decision to mark milestone in deregulation
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PG&E's Creditors Planning Future
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Causes, consequences of PG&E's financial troubles
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Bankrupt PG&E's creditors begin determining utility's future
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Utilities Deny Knowledge of Enron Schemes
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Williams: Anti-Enron' Wobbling After Collapse
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A Look at PG&E's Bankruptcy
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NewPower Gets Approval Of First Day Motions
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Exide Tech Gets OK To Make Retention Payment To Workers
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Four ideas for reforming corporate governance
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Dotting the 'i's
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Bondholders Watch Farmland Bankruptcy
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Hayes Lemmerz Wants To Block Bondholder, Stkholder Suits
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Germany:

Consortium to bid for key Kirch unit
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England:

Enterprise Bill insolvency reforms

Protecting employees’ salaries when an employer becomes insolvent

Schemes of arrangement

Directive on financial collateral arrangements

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Indonesia:

Manulife Fights to Stay In Business in Indonesia
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