February 20, 2009

The Daily Bankruptcy News

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Law:

Black Thursday, Redux? Allen & Overy to Trim Partner Headcount by 9%
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A&O Adds 2 Restructuring Attorneys
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Squire Sanders Adds Bankruptcy Attorney
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Cravath Profits Fall 24 Percent
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Cravath and Milbank see double-digit profit drops
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Partner Profit Watch: CravaTTTh?
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Profits Tumble 16 Percent at Milbank
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Revenue and profit down at Dechert
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Pillsbury Confirms Layoff Leak
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How do firms lay off lawyers? Very carefully.
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Morrison & Foerster Slashes Bonuses, Freezes Salaries
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Bonus Watch: MoFo Giveth, Then Taketh Away
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BigLaw Firm Axing 47 Partners, 200 Associates, 200 Staffers and Freezing Pay
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Layoff / Salary Freeze Watch: Allen & Overy Hits Us With Their Best Shot (Layoffs hit almost 10 percent of lawyers and staff.)
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That kitchen sink solution
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Layoffs Hit Conn. Law Firms
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Layoff Watch: Day (Pitney) of Reckoning (66 Staff Fired)
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Lawyer laid off six months ago finally gets a job interview
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Pepper's Profit Surge Nothing to Sneeze At
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Nobody Makes Top Tiers as Firm Reviews Partner Compensation
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Express to the Unemployment Line: BigLaw Layoffs Leaked By Loudmouth Partner Gabbing on Train
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The End of Lawyers?
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Buchanan Ingersoll Makes More Staff Cuts
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Akin Gump Sued by Famed San Diego Hotel Over Canceled Retreat
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Many From Defunct Thacher Still Job Hunting
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The Downside of Power and Ego
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Sizing up Thomas Sjoblom’s ‘Noisy Withdrawal’
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NY Attorney in Fraud Scandal Tells All
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Key Lawmaker Moves to Protect Privilege and Work-Product Doctrine
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3 more Cleveland area law firms cut attorneys, staff
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Embattled Ave Maria School of Law Wins Approval for Controversial Move to Florida
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Partners for Life
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Judge Throws Out Shareholder Suits Against Merrill Lynch Execs, Strips Shareholders of Standing
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When Law Schools Ignore Naughty Profs
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Law Review Subscriptions on the Decline
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Judges:

Texas Judge Charged With Blocking Execution Appeal
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Judge Kent Does Not Kiss and Tell
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Judge Positions Open in Riverside California
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Wall Street:

US Stock-Index Futures Decline
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Stocks Poised To Test New Bottom
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World Stocks Fall Sharply After Wall Street Tumble
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Europe Stocks: FTSE Down 2.7%
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Australia Stocks, Japan Futures Decline on Bad-Loan Concern
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HK index drops 2.5 pct amid economic fears
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US Stocks Decline, Dow Industrials Close at Six-Year Low
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Markets drown in dreadful news
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While New York Bleeds, Washington Thrives
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Bank of America, Citi Plummet
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The 10 Worst Recession Stocks
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Autos:

Auto Analyst: GM's Earning Potential is Enormous
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Is Bankruptcy the Answer for Automakers?
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GM's Dicey Recovery Plan
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Break-up of General Motors closer as Saab files for bankruptcy
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GM's Europe brands survival dependent on state aid
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Swedish Government Not Planning Support For Saab
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The $100 Billion Question
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The cost of saving Detroit's automakers is continuing to rise
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General Motors and Chrysler say they need more help. So do their suppliers
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GM restructuring not enough to attract private lenders
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Ford Benefits as GM, Chrysler Stumble
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Republican resists more bailout for automaker
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Trump: GM would be better off in bankruptcy
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Analyst: GM should file for Chapter 11
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Sen. Shelby Says GM, Chrysler Viability Plans ‘Fall Far Short’
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Auto Loan Debate: Will The Real Bond Holders Please Stand Up
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Is Keeping Detroit Auto Makers’ Profits in America Possible?
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Senator says US should consider Chrysler/Fiat
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Its Muscle Car Glory Faded, Pontiac Shrivels Up
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Fear grips Delphi retirees
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Emergency talks over the future of Saab stall
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Saab, Cut Loose by G.M., Files Bankruptcy
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Hyundai Motor to augment US incentive program
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German govt-No Opel guarantee request received
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GM's Opel needs 3.3 bln eur in liquidity - source
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Car plant closure to jeopardize 100,000 UK jobs
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UK Vehicle Output Drops Most Since 1970 as Plants Fall Silent
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Tax:

US Wants More Names From UBS
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UBS Settlement Not a Complete Win for Feds, Says Lawyer
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US Clients of UBS Mull Options as Feds Press Swiss Bank to Name More Names
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Bank kept 52,000 secret Swiss accounts for US taxpayers, IRS says
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Is Swiss banking a criminal enterprise?
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'Boldfaced names' in NY, LA, Miami
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Swiss banks look to more open future
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Newspapers:

Times Suspends Dividends to Shareholders
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NY Times Stock Now Costs Less Than Sunday Paper
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Newspapers in survival mode
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Maybe own job fear will put reporters on big story
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Lee refinances debt, amends bank credit agreement
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Travel:

Recession treats Expedia, Priceline differently
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Insurance:

Credit insurance may get more attention with economic recession
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Chancery Court Allows Claims To Proceed Against Greenberg, Other AIG Directors
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Prudential Parent Disqualified From Commercial Paper
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Axa Tumbles to Lowest Since 1995 as S&P Cuts Outlook
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Greeting Cards:

Court clears way for American Greetings acquisition
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Food/Drink:

Peanut Corporation's Bankruptcy Doesn't Stop Lawsuits
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Chiquita Brands Posts Sharply Wider 4Q Loss
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Tyson Foods Seeks Credit
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Layoffs:

More layoffs for AK Steel
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Avon Plans to Cut Up to 3,000 Jobs
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Anglo American Cuts 19,000 Jobs
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Embraer Slashes Work Force 20 Pct
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Autoliv Laying Off 250 Utah Workers
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Union anger as Hewlett-Packard proposes 5% pay cut for employees
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Feb. Could Be Worst Month Yet for Jobless Claims
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Microsoft, Intel Firings Stir Resentment Over Visas for Foreign Workers
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Coping When a Co-Worker is Laid Off
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Private Equity:

Allied Capital defaults on more than $1bn in debt
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Why buyout kings like Leon Black aren't going out of business
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Tech:

Chip-Equipment Orders Fall to Lowest Level Since 1991
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Poverty:

Newly Poor Swell Lines at Food Banks Nationwide
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Lehman:

Ex-Lehman Trader Sues Barclays For $19.6M
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Hotels:

Hotel operator files for Ch. 11, faces $10.8M in unpaid debt
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Economy:

Inflation Takes Biggest Jump In 6 Months
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No Inflation for Services
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Consumer Prices in U.S. Gained 0.3% in January, Unchanged Over 12 Months
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Stimulus Law Aids Small Business, but Benefits Are Not Easy to Find
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Policing TARP Proves Tricky
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Obama Team Has Billions to Spend, but Few Ready to Do It
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Leading Indicators Rise More Than Expected in Jan.
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Modest recovery still in cards, Fed's Lockhart says
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Fed Assets Rise to $1.92 Trillion After Mortgage Bond Purchases
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Traders Revolt: Calls For New 'Tea Party'
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Banks, investment firms borrow more from Fed
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Subsidize Bad Behavior?
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Bailouts, Class And Social Acrimony
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Rescues will push US debt towards crisis levels
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Levin says stimulus package necessary to get out of recession
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What's Triggered the Octo-Mom Backlash?
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'Stimulus' Saves Microsoft Billionaire -- Hundreds Of Millions
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Alan Greenspan's Change of Heart
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Greenberg slams pay cap plan, AIG bailout
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The Global Recession, Graded on a Curve
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US gold futures jump to above $993
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The Collapse of Manufacturing
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Real Estate:

January Foreclosure Filings Drop 10%
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Mr. Obama’s Foreclosure Plan
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Obama’s Housing Plan Will Slow, Not Stem, Flood of Foreclosures
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Winners and Losers in Obama’s Mortgage Fix
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Obama Housing Plan ‘Aims Straight at the Heartland’
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Obama Promises Housing Plan Will Help Only the Nice Homeowners
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Wilbur Ross: Home Loan Modification Program Falls Short
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The Housing Bailout: Do You Qualify?
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Freddie Mac: Rates on 30-year fixed mortgages fall
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Fannie Mae Rescue Hindered as Asians Seek Guarantee
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WL Homes Seeks Bankruptcy , Cites Market Collapse
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Builders, bankers locked in battle
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The Hamptons Half-Price Sale
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What’s in a Name? BofA says Goodbye to ‘Countrywide’
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Century 21 Town & County Files For Bankruptcy
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Half of Homeowners Default After Big Bank Refi; Some Payments No Lower
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Uncertainty Over Trump Marina Deal
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John Laing Homes seeks Chapter 11
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Tousa ceases talks on assets sale with Standard Pacific
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Bay Area's median home price at 9-year low
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SD's Medium Home Price Drops to $280,000
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Foreclosures hit home on Cape Ann
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Foreclosures court busy due to mortgage crisis
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Bank of America extends foreclosure moratorium
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Global property faces wave of distress
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Bankruptcy Policy:

Reorganization Is the Worst Option . . . Except For All Others
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Fraud:

Stanford Found by US Authorities in Virginia
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'Are you this guy?' FBI finds Stanford
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Found! Accused Scammer Stanford Turns in Passport in Washington; SEC Moving to Seize Billionaire's Planes, Yachts, Bank Accounts, Homes
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Stanford Owned $100 Million Aircraft Fleet, Castle, Court Records Show
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Authorities Widen Stanford Probe
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Stanford Receiver May Need a Decade to Finish Paying Victims, Experts Say
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Sir Allen Who? Stanford not on Houston's radar
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Billionaire in fraud case always saw bright future
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Stanford Charges Imperil Economy Built on $37 Steaks, $20 Million Cricket
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Stanford Employee Says He Was Forced Out After Questioning CD Returns
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Stanford Served by the FBI
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Stanford used TD Bank, HSBC's services
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At small Antigua accounting firm: Who's Stanford?
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Stanford's stamp seen all over island of Antigua
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Stanford Charges Imperil Antiguan Economy Hit by Tourism Slump
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Latin American regulators clamp down on Stanford
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Allen Stanford was poised to launch UK investment business
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Stanford scandal creates another alpha nightmare
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Venezuela seizes Stanford bank after online run
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Texas billionaire hasn't been charged with any crime
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Alarm bells sounded over Allen Stanford in 1995, but no one listened
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No joy in cricketville; mighty Texan struck out
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Stanford losses might be unrecoverable
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Stanford associate accuses ECB of 'naivety'
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Stanford revelations pile more pressure on US financial regulators
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Anatomy of Stanford's empire
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Stanford told clients probe was 'routine'
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Woods’s Agent Denies IMG Steered Clients to Stanford
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Calling Madoff Creditors: Trustee Wants to Talk to You
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Spanish Bank Says 70% of Clients Agreed to Madoff Settlement
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Criminal charges possible in JC Reed fraud case
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Auditor continues testimony in Day 9 of Sterling fraud trial
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Small Businesses Face More Fraud
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Distressed Investing:

Flowers, ‘Low-Life Grave Dancer,’ Sees Opportunity in Crisis
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Packaging:

Smurfit-Stone credit default swaps worth 8.88 pct
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Retailing:

Penney Reports 51 Percent Slide in 4Q Profit
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Westfield Will Shorten US Mall Hours to Help Retailers
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Some Marty’s Stores Reopening After Bankruptcy
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Fortunoff stops honoring gift cards
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Lowe’s Says Fourth-Quarter Profit Fell as Sales Decline 3.8%
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Telecoms:

Hawaii studies bid for phone operator
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Sprint Nextel: The Canary in Wireless's Coal Mine?
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Nortel continues to shed assets
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Music:

The Day the Muzak Died
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Aviation:

Pinnacle Air grounded for good
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Air Canada's problems pile up
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Religion:

Seattle U may be caught in Jesuit scandal
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How are you coping with collapse anxiety?
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Arts:

Sac Ballet braces for tough year
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Gambling:

Trump's Tantrum
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Casino operators only real gambling winners
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Executive Compensation:

Obama's $500,000 CEO pay limit is flawed. Here are four better ways to fix the executive-compensation debacle.
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Credit Counseling:

5 Reasons to Avoid Debt-Settlement Firms
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Horse Racing:

Magna Entertainment may not be able to pay off debt
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Bonds:

75 corporate bonds on brink of "junk" rating
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Corporate Governance:

‘Virgin’ North Dakota Draws Billionaire Icahn in Raider Quest
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Accounting:

Accountants: recovery to take longer
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Sports:

Sport: Is It Recession-Proof?
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New Bankruptcy Opinions
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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:

Troubled Homeowners May Get Help From Judges
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The proposed bankruptcy amendment will even help those who don't want to file
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Banks Win Reprieve On Bankruptcy Cramdowns
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Bankruptcy reform could help hard-up homeowners
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Finance:

U.S. Tries a Trillion-Dollar Key for Locked Lending
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How Obama Hopes to Kick Start Securitization
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The next challenge resides on balance sheets
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Santander’s Madoff Deal May Help End ‘Capital Famine,’ RBC Says
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Oil/Gas:

Oil up 14 pct on surprise draw
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Oil Falls as Equities Drop on Concern Recession Is Deepening
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Energy secretary predicts higher demand for oil
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Flying J to seek OK for DIP loan
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Health Care:

Commonwealth Medical Center
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State Kicks In $ As ER’s Shut Down
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WellCare Ordered to Halt Enrollment in Medicare Plans
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Municipalities:

California approves long-awaited budget
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California Budget Leaves Few Happy
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U.S. Aid Won't Prevent N.Y.C. Cuts
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Pension Obligation Bomb
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Life on the Island: Bankruptcy true or false
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Could Pawtucket Declare Bankruptcy ?
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Sovereign Debt:

Roubini Says a `Sovereign' May `Crack,' Hampering Efforts to Stem Crisis
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Personal Finance:

Financial Problems May be Cause for Family's Death
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Dave Ramsey cuts up credit card in Grand Rapids
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Greatest Depression Forces Men to Get Pretty
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Software:

Novell files objection to SCO bankruptcy plan
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Nonprofits:

Charities Now Seek Bankruptcy Protection
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Politics:

Democrats self-destructing over ethics
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Democrats Remix Stimulus Messages for Hometown Audience
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Republicans poised to leap on spending abuses
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ChangeTracker: Tracking Change in Washington
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Modeling:

South Beach modeling agency from TV show closes
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No Longer Working It
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Photography:

Polaroid for sale: Bidding starts at $42 million
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Mass Torts:

An ‘Uncivil Action’: Criminal Asbestos Trial Set to Begin in Montana
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Banking:

Bank stocks fall to 17-year low; Fears mount over nationalization
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US bank preferreds drop on nationalization fears
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BofA CEO subpoenaed, sees no nationalization
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Bank stress tests cause more stress
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Wells, other banks take bruising on Wall Street
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Whitney Says Banks Won’t Continue Existing Dividends
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Fidelity More Than Doubled Citigroup Stake in Quarter
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The End of Swiss Banking?
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Concerns about privacy rules hit Swiss banks' shares
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Fashion:

The Lapse of Luxury
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Resorts:

Judge rejects Yellowstone Club auction terms
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Media:

Traditional media now becoming history
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Scripps Reports Loss and Will Cut Pay
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Bankruptcy Litigation:

Trustee seeks to blame lender for company's demise
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UK:

Number of people seeking bankruptcy up by a third
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Courts issue 114,000 repossession orders and 20,000 bankruptcy petitions
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UK Home Repossessions Rise to 12-Year High as Recession Bites
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Golf Recession Hits Ireland, Scotland as Courses Cut Workers, Green Fees
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Bonus culture is skim, bribery, theft
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£2trillion - the terrifying total of our national debt
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BOE’s Gieve Sees Risk of Decade-Long Depression Like Japan
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Mortgage lending falls by 50%
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Allotments boom as thousands go to ground in recession
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Crunch hits young and old workers most
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The strain on the train from the economic pain
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EU:

ECB Officials Stuck on Next Move as Interest Rates Drop to Record Levels
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Germany eyeing help for euro zone states
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Eurozone in 'dire, breakneck' descent
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Euro May Rise for Second Day as European Bank Concern Eases
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Europe Services, Manufacturing Shrink at Record Pace
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Euro zone flash Feb PMIs sink to new record lows
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Romania:

Number of insolvency files to increase by 38%, to 20,000, in 2009
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Canada:

ABCP: Young tigers rise to the occasion
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CanWest Owners Seek Lifeline
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Canada's Consumer Prices Fall a Fourth Month, Longest Stretch Since 1931
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Marathon Pulp's massive debt surfaces
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Switzerland:

Bank's deal in fraud case shakes foundations of Swiss secrecy
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France:

French business morale hits record low in February
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Investors Balk At Saint-Gobain Cash Call
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French Jan. Inflation Near 10-Year Low
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ECB and France spar over future bank supervision
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Russia:

Russian president: government too slow in crisis
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Russian Spenders Guard Money as Crisis Evokes Memories of 1998 `Nightmare'
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Ireland:

Irish Mogul's Empire Totters
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Taiwan:

Taiwan in Recession as Economy Contracts Record 8.36%
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Germany:

US investor sets price for Hypo Real Estate nationalization
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Japan:

Japan turns to 'work-sharing' to avoid layoffs
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Hong Kong:

Hong Kong Jan bankruptcies rise 37 pct yr/yr
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Brazil:

Brazil's Jobless Rate Jumps Most in Seven Years as Commodities Prices Drop B
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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).