April 15, 2003 

Daily Bankruptcy News

Brought to you by BKINFORMATION.COM - The Source for Business Bankruptcy Information on the Internet 

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

         
Bankruptcy Reform:

Senate Democrats ask SEC to Examine Bankruptcy Bill's Easing of Conflict Rule
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Airlines:

American Airlines Waits for Labor Vote
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American Airlines to File for Bankruptcy Unless All Union Concessions Stand
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Union votes could send American Air to bankruptcy
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Troubled airline industry bracing for tough week
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AMR Again at Bankruptcy's Door
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Air Canada laying off 200 attendants
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Airlines can't get a break
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Mechanics begin to face future without United hub
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Pilots denied vote delay on givebacks
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AMR Readies Bankruptcy Finances as Deadline Nears
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Facing lease rejection, Pittsburgh International Airport chief woos Southwest
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Northwest Airlines mechanics protest layoff plans
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Atlantic Coast Airlines to Cut 330 Jobs
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Judge OKs National Airlines Liquidation
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Congress Eases Compensation Limits in Airline Aid Plan
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Zip model might solve some Air Canada woes but unions remain suspicious
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Fund Manager Buys Stake in Midwest Airlines
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Philip Morris:

Philip Morris and 46 states dodge financial woes as bond slashed by half
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Farmland Industries Posts $80 Million Improvement in Second Quarter
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Judge Won't Transfer DirecTV Latin America Case To Fla
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Judge approves Graham-Field asset sale
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HealthSouth:

Scrushy was faced with rebellion by investors
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Accountant details Scrushy finance setup
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Schools fear losing HealthSouth-paid trainers
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Scrushy Reaps $17.5 Million From Healthcare Realty Trust
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HealthSouth probe may widen
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Covert HealthSouth Tape Is Reflecting Some Doubt
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A diagnosis of fraud at HealthSouth
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Energy:

Power traders say California tactics not illegal
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Heartland Sec. Wins Sale Approval Over Creds' Objections
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Corporate Reform:

Transatlantic rift over fraud law
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Reforms have gone too far
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Corporate boards are taking a fresh look at virtually every aspect of CEO pay; CEOs may not like the result
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  Judge denies Conseco rival plan request
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Bid for Worldwide Medical goes unchallenged
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Enron:

JP Morgan alerted over likely SEC legal action
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Law Firms:

Cieri jumps to Gibson Dunn
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Gibson Dunn Adds Leading Bankruptcy Lawyer To New York Office
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Jones Day Bankruptcy Chair Defects
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A Top Partner Quits Law Firm After 38 Years
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M&A Attorney Fraidin Moves To Kirkland & Ellis Law Firm
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Fried Frank loses rainmaker ahead of Ashursts vote
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Lawyer pays hefty price for embezzling
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Crossroads
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Defector Who Killed Firm Says He Did Partners a Favor
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Firm Expands Midtown Office
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Two Atlanta Firms Seek Merger Partners
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Brobeck Brass Get Starring Role in Battle of Defunct Firms
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Tobacco Decision Gives Bond Lawyers Breathing Room
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Allou Prepares For Quick Sale
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FAO:

Lenders withdraw FAO exit financing
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FAO Inc. Hits Bump on Road to Recovery
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FAO faces closing its doors
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Playing For Keeps
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New battles to come over punitives ruling
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Kmart:

Most creditors back Kmart
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Kmart Set To Exit Bankruptcy
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Critical Vendor Opinion
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Court to Review Kmart Reorganization
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Kmart Wins Round Against Creditors
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American CEOs deserve no glory
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Debtors, beware: Not all credit-counseling agencies honest
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Accounting:

91-year-old CPA finds some things never change
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Reporting Earnings - A New Model
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Europe Asks Compromise on Auditors
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EU threatens reciprocal controls on US firms
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IRS Audits of Corporates Down
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New IRS Deal Latest Step to Crack Down on Offshore Tax Avoidance
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E&Y named in billion dollar AOL lawsuit
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FleetBoston profits fall 23%
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New Bankruptcy Opinions
(No new opinions today)

Bankruptcy Jobs 871 Jobs - Last Updated February 3, 2003
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Bankruptcy Court Web/Pacer Site Directory

Weird News
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Steel:

2 more bids possible in sale of Beth Steel
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Steel union backs strike
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Steelworkers Union Files Objection to AK Steel's Bid for National Steel
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Telecoms:

WorldCom plan riles MCI creditors
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WorldCom outlines plans to exit Chap. 11
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WorldCom Reorganization Plan Sets Ambitious Growth Goals
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New WorldCom Seen Shaking but Not Breaking Rivals
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Enemies Waiting For Worldcom's Return
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WorldCom, Pacific Bell Reach Settlement of Some Disputes
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New MCI Greeted by Skepticism
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Slowdown forces U.S. wireless firm to seek protection
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Superior TeleCom sells property in Elizabethtown
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AT&T Latin America Continues Restructuring Plan - Begins Chapter 11 Process
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Leap files for Chapter 11 bankruptcy
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Leap's steps to reorganization
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Asbestos:

ABB move to cover asbestos liabilities
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ABB punished as it seeks share issue
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Judge Approves Payment Plan for Hospital in California's Santa Clarita Valley
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Recoton Gets Interim OK Of DIP Loan, Cash Collateral Use
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Bankruptcy filings rise by 16 percent in North Carolina
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Washington DC Marathon Organizer Files for Bankruptcy
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Laidlaw Reports Results for Second Quarter 2003
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Hayes Lemmerz Files Motion to Preserve Exclusivity on Previously Filed Plan of Reorganization
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Banks Can't Declare Victory Over Bad Loans Yet
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England:

Downgrade spells trouble at Telegraph group
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Insurers oppose FSA plan to regulate Lloyd's
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Korea:

Another Korean broadband provider fails
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Germany:

Grundig seeks bankruptcy as bid to sell fails
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Japan:

Corporate bankruptcies record 5.6% slide in fiscal 2002
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Top Japanese Banks Report Collective Losses of 3.7 Trillion Yen in 2002
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