February 12, 2009

The Daily Bankruptcy News

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Law:

Sheppard Mullin Names 3 New Bankruptcy Partners
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PEP down at Davis Polk and Skadden
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Revenue Flat, Profits Down at Skadden, S&C, Davis Polk and Dewey
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Two-thirds of partners support associate pay freeze
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McDermott launches layoff talks
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Suffering Across All Segments Of The Practice
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Will This Year Bring More Aggressive Partner Cuts?
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For Whom the Sun Still Shines (Thacher Partners Joined Sonnenschein for Seven-Figure Paydays)
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Feds to Target Lawyers in Fraud Cases
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My Rich Uncle's Liquidation Bad News for Law Firms
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Nationwide Dissolution Watch: Is Morgan & Finnegan Bouncing Checks?
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Freshfields has made its move on pay . . . so what about Linklaters?
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Linklaters chief rejects calls to cut legal fees
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Bingham Goes On Reaper Watch
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Reversed Perk Watch: Debevoise Does Drinks, No Dinner
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Corporate Practices Shift Gears to Restructuring and Fighting Bondholder Suits
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Transforming a Legal Department From Cost Center to Revenue Source
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How Are U.S. Firms Faring in London?
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Lovells to bolster US arm with full service push
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Baker Botts, Paul Hastings on Record $579 Million KBR-Halliburton FCPA Settlement
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Simpson Thacher Advising Sirius XM on Possible Bankruptcy Filing
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Perkins Coie Sues Ex-Associate Who Left Firm for Rival
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Where are first- and second-year associates safe?
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Marc Dreier Likely Returning to the High Life (With Guards, of Course)
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Dreier Tried to Sell Teachers’, BCE Notes, Globe and Mail Says
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The Likely Next U.S. Attorney for NY’s Southern District: Preet Bharara
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BigLaw Associates Sweat Out Bosses' Hesitation on Their Raises
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Prosecutors Behaving Badly? More Bad Acts Alleged in Stevens Case
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Muzzled Lawyer Gets the Boot, Threatens Suit
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Court Denies Billionaire's Request for Documents in Milberg Kickback Case
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Does an All-Knowing God Need Notice of a Lawsuit?
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From the Silver Screen to the Slammer: Famed Litigator Pleads Guilty to Mail Fraud
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New Report Shows Sharp Rise in Prison Time for Federal Offenders
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Ex- Associate Claims Fried Frank Didn't Promote Her Because She Is Gay
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Locked-Out Partner Pursues ‘Nuclear Option’
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Pls Hndle Thx: My Funny Valentine
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Oldest Federal Prosecutor Celebrates 80th Birthday
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Pa. Attorney Fatally Shot in Office Parking Lot
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How to sneak out of your office without being caught
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Judges:

Pa. judges accused of jailing kids for cash
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Judge and The Stripper: Who's disrobing whom?
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Lawyer-Litigant Files Defamation Suit Against Judge Over Stalking Allegations
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Law Profs, Former Judges, Attorneys Urge Major Reforms for Supreme Court
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Kozinski ‘Blows a Gasket’ in Prosecution Thwarted by Indian Definition
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Wall Street:

Futures Fall Ahead of Retail Sales
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Stimulus Deal Leaves Traders Wanting More
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World Stocks Down Amid Pessimism Over US Plans
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The real reason investors dislike TARP 2.0
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US Stocks Gain Weds. on Optimism Stimulus Plan to Pass; Banks Rise
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Wall Street CEOs humble before lawmakers
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NY securities sector may cut bonuses 45 pct-Assembly
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Cuomo Finds Big Bonuses for Many at Merrill
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Top Four Merrill Bonus Recipients Got $121 Million
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Nearly 700 at Merrill in Million-Dollar Club
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Cuomo: Merrill 'Secretly' Gave Bonuses
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Another Wall Street Casualty: 'Deal Toys'
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Wall Street ‘Swindle’ Gets Moore to Ask Bankers to Spill Beans
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Your Money...Swept Away
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Stop the Barbarians at the gate now
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Layoffs:

Caterpillar Inc. plans to rescind some of its 22,000 layoffs the firm recently announced - once the stimulus is signed into law
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Caterpillar Offers Retirement to 2,000 Employees
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Marsh & McLennan Rises After 2,200 Job Cuts Boost Profit at Brokerage
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Pioneer to cut 10,000 jobs as electronic sales slump
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Putnam to Fire 260 Workers as Losses Lower Assets
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United Technologies’ Pratt Canada to Cut 1,000 Jobs
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Laid-off employees are taking valuable trade secrets and IP right along with them
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Fraud:

Madoff's wife pulled out $15 million before his arrest
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Money Made Off With
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All Madoff, All the Time
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Daughter blames dad’s death on Madoff scheme
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Madoff Agrees to Another 30 Day Extension on Indictment
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Feds continue plea bargain talks with Madoff
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Madoff investors face 'mass confusion' over claims
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For Investing With Madoff, Private Foundations Could Face Tax Fines
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Madoff Hurt Funding For Health, Science
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Redemptorist Fathers embroiled in Madoff Ponzi Scheme
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Bernie’s Brooklyn victims
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Pressure mounts on Madoff middlemen
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On Street, Reluctance to Blow the Whistle
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Luxembourg Regulator to Seek to Close Second Madoff-Linked Fund
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The faces of greed and the victims left in their wake
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WexTrust Co-Founder Byers Is Jailed on Ponzi Scheme Charges
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California Man Arrested After Fleeing to Ireland, Lebanon
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Fraud Rises As Economy Turns Down
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FBI: 530 Corporate Fraud Probes in Progress
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Feds Set Sights on 'Gatekeepers' in Fraud Investigations
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Tourism:

Drop in LV visitors accelerates
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LV Mayor: Obama Should Apologize For Vegas Junket Quip
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Radio:

Sirius XM Possibly Bankrupt, Stern and Dylan Could Get Laid Off?
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Can Howard Stern save Sirius-XM?
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Power struggle might drive Sirius XM into bankruptcy
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Mogul Offers to Overhaul Sirius
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Echostar's Sirius Power Play
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Reports: DirecTV in talks with Sirius XM
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The Only Options for Sirius
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Because he's Charlie Ergen and you're not
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Corporate Reform:

KBR Fined $579 Million by US for Nigeria Bribes
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FBI, bailout watchdog expands criminal probes
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In enforcement era, communities prepare for raids
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Retailing:

Another Drop Expected in Retail Sales Report
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Mervyns family may resurrect department store
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The Future of Boscov's
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Barneys Buyers Said to Offer Half '07 Price as Dubai Seeks Cash
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Telecoms:

Nokia Layoffs Presage Grim Mobile Congress
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Middlemen in Prosser Bankruptcy Bill $34 Million
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Packaging:

Pliant files for Chapter 11 bankruptcy
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Sports:

NY House members defend Citigroup deal with Mets
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Lawmakers Urge Geithner to Let Citi Keep Mets Deal
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Enronball
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Construction:

James Hardie Profit Drops 56% on US Housing Slump
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Fletcher Profit Declines 27% as Construction Slows
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Distressed Investing:

Ross Says Investors to Wait for Banks to Write Down Mortgages
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Agriculture:

Chicken Housing Crisis Hits U.S.
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Fashion:

Fashion Label Scrambles to Survive
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Bankruptcy Litigation:

Creditors sue Catterton over Archway bankruptcy
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Venture Capital:

Redpoint Tells Startups to Cut Staff Amid Lack of IPOs, Mergers
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Economy:

Deal reached on $789 billion stimulus bill
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Treasury May Need More Funds
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Trillion Dollar Baby
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The Stimulus Deal: It’s All About Speed and Power
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The Open-Door Bailout
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So-called rescue plan isn't enough
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Where's the Outrage?
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Exactly How Does Stimulus Work?
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Big Tax Break: Workers Get $13 More A Week
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Little Direct Help for Small Cos. In Stimulus Plan
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Geithner Defends Lack of Details in Financial Plan
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Congress Scraps Business Tax Break in Stimulus
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Jan. foreclosures climb 18%, but fall from December
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Granite, AutoNation Make Final Push for Help in Stimulus Bill
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GM Wins, Loses in Stimulus Pact While Homebuilders Get Less Aid
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Geithner Is Pressed for Bailout Details
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Geithner should know better than to over-promise
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Geithner to Urge 'Bold' Actions at G-7 Meeting
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‘Where was Geithner the Technocrat’?
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Is the Worst Phase of the Economy Already Here?
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The Real Stimulus Burden
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Real Estate:

Foreclosures eased in January
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Treasury’s US Housing Plan to Fund Interest-Rate Reductions
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What a Surprise, the Ability to Pay Matters on Mortgage Modifications, Too.
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Heat on for foreclosure fix
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Mortgage applications at 8-year low
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Tax Break Divides Large, Small Builders
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Regulator urges suspension of home foreclosures
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Senate Stimulus Bill Cuts Low-Income Housing Funds
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‘Exponential Rise’ in Mortgage Fraud Seen by FBI, US Says
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CBRE earnings plunge 95% in 4Q
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Geithner’s $1 Trillion Plan May Not Save Commercial Real Estate
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Vacancy rate grows in Pittsburgh office buildings
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Toll Brothers’ Revenue Falls as Housing Slump Worsens
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AHM's amended plan confirmed
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Housing key to global economic recovery?
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For Some, Time to Dive Into Housing Market
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Rents Falling in New York’s Garment District
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Luxury Real Estate in Manhattan Drops Off
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Market Sours for Condo Kings
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Foreclosure 'Tsunami' Hits Mortgage Servicers
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15 people charged in Philly house stealing scheme
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Proposed $15,000 Tax Credit Likely to Shrink
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Zillow Report Shows Homeowners Facing Reality, Sort Of
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Fannie to Expand Mortgage Rules for Realty Investors
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LandAmerica unit wants funds access
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Koger Sentenced in Embezzlement
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Autos:

Obama seeks workable business plan from US automakers
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Automakers' Loans Hinge on 11th-Hour Talks With Unions
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Bondholders squeeze GM
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GM not intending to offer more buyouts
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GM Offering Retirement Incentives: Report
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Pelosi has eye on automakers
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GM talking with China's SAIC to raise cash-sources
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Ford, GM Execs See Auto Industry Sales Stabilizing
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Let Bankruptcy Courts Take the Wheel
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Detroit's crisis of confidence
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Seeking car czar? Try me
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GM reviews all business areas amid funding crisis
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GM’s Hummer Said to Attract China Company, Private-Equity Firm
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Modine Falls Most Since 1984 After Loan-Terms Breach
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Prebul Automotive Group Files for Chapter 7 Bankruptcy
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Prebul Brother-In-Law Apparently Helped Bring Him Down
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Delphi salaried retirees fighting back
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Retirees may feel Delphi pain
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GM Canada turns down bailout loan
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CAW worried GM will pull out of Canada
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GM Said to Seek Swedish Backing for $600 Million to Fix Saab
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GM Daewoo says asks S.Korean govt for support
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Sarkozy’s Peugeot Aid Fails to Stop French Job Cuts
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Hyundai CEO: Big change needed
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Fun With Dick and Jane:

I can't afford my lifestyle?
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Politics:

Obama’s Battle on Stimulus Shows Threats to His Agenda
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Will Any Other Republicans Support the Stimulus Deal?
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Opponents Line Up to Try to Oust Stimulus-Supporting Specter
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The Unseen Hand Of Arlen Specter?
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Senate Roll Vote: How they voted on stimulus bill
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Oil/Gas:

Oil Tumbles Below $36
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Crescent Oil bankruptcy case moves forward
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Apex Oil stung by bankruptcy
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SemGroup Subsidiary Warns Against Unit Selloff
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SemGroup execs sue suitor
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Decision in SemCrude Interprets "Mutuality" Requirement for Setoffs Under Section 553 of the Bankruptcy Code
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Sale plans may alter SemGroup finances
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Foothills Resources, Inc. Files for Reorganization
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More layoffs at Big West
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Media:

Moody's cuts Charter, cites bankruptcy expectation
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MFC Global, Barclays among big Sirius XM debtholders
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The Media Says Au Revoir to All That
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Viacom Profit Drops on Job Reduction Costs, Writedown, Ad Slump
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Viacom Earnings Tumble 69%
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Big Media Debt Headaches: Clear Channel Today, CBS Next Week?
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Food/Drink:

That’s How The Cookie Crumbles
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Gambling:

Trump wins another extension from bondholders
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The Chips are down for casino workers
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Casinos sue over dead man's debts
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Insurance:

Marsh & McLennan’s Duperreault Sees Insurance Price Increases
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Swiss Re CEO Steps Down
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Insurer's exit leaves Florida on the brink
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Aetna 4Q Profit Slides on Rising Care Costs
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Lehman:

Lehman judge says examiner can subpoena documents
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Finance:

Dollar Libor Rises on Concern US Bank-Rescue Plan Will Fail
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Hedge Funds:

No Performance Fees for 80% of Asia Hedge Funds After 2008 Drop
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Art:

Christie’s Fails to Sell $12.2 Million Rothko, Bacon
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Advertising:

Publicis chief gloomy on ad market recovery
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Bonds:

Forensic skills at a premium as investors turn to bonds
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Opera:

Opera Closes, Won't Refund Tickets
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RVs:

Country Coach creditor seeks stay relief
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Monaco extends furlough another two weeks, citing weak market
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Accounting:

Satyam picks KPMG for clean-up job
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Huge demand for flexible working at KPMG
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GSI Group widens internal accounting probe
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Administrative Claims:

Decision in Goody's Holds That Administrative Claims Under 503(b)(9) Apply to Goods, Not Services
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Corporate Governance:

Early line on annual meetings: It's going to be ugly
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New Bankruptcy Opinions
(1 new opinion today)

Bankruptcy Court Web/Pacer Site Directory

Chapter 7, 12 & 13 Private Trustee Locator
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Recent Ch. 11 Filings
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Weird News

Bankruptcy Jobs:

(1)- (2)- (3)- (4)- (5)- (6)- (7)- (8)- (9)- (10)
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Bankruptcy Reform:

Judicial Mortgage Modification, Lobby Day in DC
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Bank CEOs other than Citi lukewarm to reform
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Personal Finance:

If You Knew Suze Like We Know Suze. You wouldn't listen to her advice.
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Forget about how much money you want. Now it's about how little you can survive on
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Banking:

Lawmakers Challenge Bankers on Bailout
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CEOs Defend
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Citigroup’s Vikram Pandit to Take $1 Salary, No Bonus
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Bank Test May Expand U.S. Regulators’ Role
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RBS Chief Says Bank Pay Is Too High, Needs to Fall
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Let them eat cake: The banking chief who thought that $2m was a modest salary
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Bank of America’s Bernstein Says Bank Plan Won’t Work
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Paper: European banks sitting on $24 trillion of toxic assets
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BNP Paribas takeover plan for Fortis Bank in doubt
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Shareholders reject break-up of ailing Fortis bank
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France imposes limits on bank bonuses
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Credit Cards:

Credit-Card Issuers: Buy Something or Else!
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Shipping:

Golden Ocean Group Is Taking On Water
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Fredriksen eyes cancellations
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Aviation:

British Airways Debt Rating Cut to ‘Junk’ at Moody’s
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Hungarian national airline cannot pay staff on time
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Health Care:

Mary Immaculate, St. John’s to close in next 30 days
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Official: State has no immediate relief for hospital woes
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Queens leaders fear impact from closing of hospitals
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Queens Residents Protest Hospital Closures
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NRMC announces bankruptcy plans
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Tales of the Health Care System Destitute
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Hospitals Face Capital Budget Woes
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HCA to tap revived high-yield market
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Municipalities:

The Privileged Public Sector
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After one year, is Jefferson County any closer to solving its problems
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Half-done coastal project symbolizes California budget paralysis
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Governor: New York faces ' bankruptcy '
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Venue:

Bankruptcies to Prompt Venue Fights
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Alternative Energy:

Ethanol, Just Recently a Savior, Is Struggling
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Ohio ethanol plant investors won't get money back
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Grassley Willing to Concede to Oil and Ethanol Mix
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Apparel:

Jones Apparel Group Posts Wider 4Q Loss
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Auto Racing:

Nascar's Engine Hasn't Died
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Tech:

More Tech Start-Ups Call It Quits
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Mining:

Judge OKs Asarco settlement for E. Helena cleanup
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Motorcycles:

Yamaha Motor to Post First Loss in 26 Years on Slump
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DIP Financing:

Aladdin Capital to Launch Debtor-in-Possession Fund
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UK:

Brittain's defection is a major coup for Deloitte
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Profession profits from soaring insolvencies
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For some, Britain's insolvency laws add to pain
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U.K. venture firms push for $1.4B gov't fund-of-funds
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British Bank Regulator Quits in Uproar
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British Bank Chief’s View Is Bleaker Than Economists’
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Evidence triggered Crosby's departure
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Lloyds chief admits reduced diligence
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London cooling
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Downturn forces hundreds of cuts at Foster
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Dickie Dees to cut more jobs with 90 under threat
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Half-year reports improving says Deloitte
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New university bankruptcy fears in fees row
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Unemployment nears 2 million
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House prices rise in prime London areas
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More families than ever are struggling under a mountain of debt.
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Restaurants begin to feel the crunch
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HMRC defends debt collection outsourcing
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Antarctic Jobs Await Credit Crunch-Hit UK Chefs, Plumbers
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PwC moves to secure Icelandic Baugur holdings
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EU:

Banks’ Disarray Grows in Europe
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ECB’s Papademos Says Rate Cut May Be Appropriate
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Europe Industrial Production Declines Most on Record
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Russia:

Russian Bond Market Facing Yields Above 80%
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Mirax Group under threat of bankruptcy
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China:

China’s New Loans Rise by Record on Stimulus Efforts
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Sanlu Group ordered bankrupt by court
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Milk Victims Push Suit Via Courier After Court Snub
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Mexico:

Texas crafts plan for Mexico collapse
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Canada:

Federal RRSP protection legislation stirs controversy
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How an alleged con preyed on the BCE deal
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Winnipeg takes financial hit with bankruptcy of kiosk company
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Vancouver struggling to cover cost of Winter Olympics
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Banks to Lend Vancouver C$800 Million for Olympics, Globe Says
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Cross Lake to sell key asset
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S. Korea:

South Korea May Cut Interest Rate to Record 2% as Slump Deepens
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S.Korea needs more than rate cuts to revive economy
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Asia:

Asia's chipmakers reach crisis point
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JPMorgan's Asian arm sees 25 pct upside for H-shares
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Italy:

Italy's first fashion victim
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UniCredit Said to Plan Merger of Units, May Cut Jobs
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Germany:

German Government Gives More Billions to Hypo Real Estate
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Japan:

Japan’s Economy Probably Contracted Most Since 1974 Oil Crisis
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New Zealand:

New Zealand’s Manufacturing Contracts Amid Recession
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New Zealand’s Biggest City Freezes Salaries, Limits Land Tax
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Australia:

Australia Senate Rejects A$42 Billion Stimulus Plan
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Ireland:

Allied Irish, Bank of Ireland Get EU7 Billion Government Rescue
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Spain:

Spain’s Economy Shrinks Most in More Than 15 Years
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Spain’s Millionaire Soccer Players Paid Late Amid Credit Crunch
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Middle East:

Laid-Off Foreigners Flee as Dubai Spirals Down
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Please note that the Daily Bankruptcy News is primarily a news link gathering service.   This means that most of the headlines contained in the publication are a collection of links to stories posted on the Internet by various third party publications.  Such content is owned by third party sources, not the Daily Bankruptcy News, and in some cases, these links change or expire, which means you may not be able to view some news stories in prior editions of the Daily Bankruptcy News. The DBN subscription fee for access to certain links is not a fee for access to the content of the links, but is a charge for the considerable work involved in gathering, organizing and presenting the links. Use of this site and The Daily Bankruptcy News is subject to our Terms of Use.If you received the Daily Bankruptcy News via email (and you have a paid subscription account), to view a news story, click on the headline, and the story should open in your web browser. To view additional stories, click back to the email and click on additional headlines, which will cause new stories to open in your web browser.  You can view the Daily Bankruptcy News on the web by clicking here, or by going to BKINFORMATION.COM and clicking on the Bankruptcy News button.  Note that the Daily Bankruptcy News is distributed via "HTML email" in which the links to the news stories are embedded in the headlines.  The email you receive should look like a 3-column newspaper, with headlines for each story. If you receive the Daily Bankruptcy News by email and the copy you receive is not formatted like a 3-column newspaper, or does not seem to contain links to the news stories, you may have an email client that is not capable of receiving HTML email, or is not configured to display such email.  You can however, receive a daily email notifying you when the Daily Bankruptcy News is updated on the web site. If you would like to receive such an email, please let us know at admin@bkinformation.com.You can search the headlines from prior editions of the Daily Bankruptcy News by clicking here.

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Passwords
Access to certain links in the Daily Bankruptcy News is available only to readers holding a paid subscription.  These links are currently marked with a "DBN Subscription Required" notation. The cost of a subscription is $55/year, payable annually.  Volume discounts are available for sites with multiple users. Click here to see a schedule of discounts. Complimentary subscriptions are available for full-time educational and governmental employees and for full time students. For information about discounts or educational/governmental subscriptions, contact us by clicking here. A separate password is required for each member of a firm wishing access to restricted links. New readers can receive a free password good for 30 days by going to http://bkinformation.com/RegistrationForm.cfm. Refunds are not available after purchase. Readers who wish to change their passwords should go to http://bkinformation.com/ChangePasswordForm.cfm. Readers who have forgotten their password should go to http://bkinformation.com/GetPassword.cfm

Adding Your Email Address To The Distribution List
If you would like to start receiving the Daily Bankruptcy News by email each day, go to http://bkinformation.com/SubscribeDBNForm.cfm  and fill in the information requested.  There is no charge to be placed on the distribution list to receive the headlines, although access to many of the links behind the headlines requires a paid subscription (see above, under Passwords). If, after adding your email address to the distribution list, you do not receive an email confirming the addition, please contact us by clicking here for help.  

Removing Your Email Address From The Distribution List
If you already receive Daily Bankruptcy News by email and you wish to remove your email address from the distribution list, click here and send the email that should appear.  Note that the email must be sent from the same email address at which you are receiving the Daily Bankruptcy News. You do not need to type anything in the body of the email message.   If you do not receive an email confirming deletion of your email address from the distribution list  for the publication, contact us by clicking here for help.

Daily Bankruptcy News is published each business day by BKINFORMATION.COM, L.L.C.  You can reach us at 281-402-3957 or at accounting@bkinformation.com (email inquiries are usually answered substantially more quickly than phone inquiries).