January 13, 2009

The Daily Bankruptcy News

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Law:

O'Melveny Bankruptcy Co-Chair Leaves for Dechert
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Orrick and MoFo post double-digit PEP falls as US financials emerge
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Kirkland, Sidley Pick Up Bankruptcy Assignments
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DLA Piper Names New Bankruptcy Partners
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Greenberg Traurig adds restructuring heavy hitters
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Practitioners Play Musical Chairs Amidst Biggest Bankruptcy Boom in 20 Years
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Cadwalader Profits Fall 30 Percent
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Clifford Chance warns partners: profits will plummet by a third
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Clifford Chance's London layoffs set off dot com bomb
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Clifford Chance to elect representatives to assist in layoffs
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Clifford Chance redundancy details
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Market reaction to the announcement of job cuts at CC
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Is the magic rubbing off?
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Lessons From the Depression
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Contract Lawyers: Cheaper by the Hour
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Associates fall into line as layoff fears cast shadow over legal market
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Layoff Watch: Cahill Gordon
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20 per cent of associates would refuse retraining in a new practice area
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Top-tier firms mull associate pay freezes
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Pay Freeze Watch: Brrr! Things are getting chilly beneath the Mason-Dixon Line
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Six NY Associates Axed in Layoff
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Baker & Mckenzie announces associate layoffs in New York
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Axe Alternative: Should Firm Cut Associate Hours Instead of Layoffs?
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Bonuses are Bigger in Texas
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Littler Leaves Left Coast Firms in the Dust
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Kill the Billable Hour? Not so Fast, Some Say
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Don’t Do it for Profit
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Economic woes lead to bankruptcy boom
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A Mark to Market Rule for Lawsuits?
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Credit Crisis, Madoff Litigation Waves Roll On
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$15 million judgment against DA's office has new DA on the financial ropes, and that may only be the beginning
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Firm Disqualified for Delay in Walling Off Conflicted Attorney
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Obama's Solicitor General Pick Has One Glaring Gap on Resume: No Appellate Experience
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Demand high for pro bono work
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Should Ability to Pay Have Anything to do with Pro Bono Work?
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Recession-Era Juries a Hurdle for Business
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The Case of the Stinky Juror
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Judges:

Chief Justice 'Definitely a Gentleman,' Says Process Server
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'Worst Day of My Life': New Judge 'Forgot' DUI on Application, Resigns
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Wall Street:

US Stock-Index Futures Decline
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German Stocks Decline for Fifth Day
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Stocks Close Down Mon. On Economic Pessimism
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Japan Stocks Fall a Third Day
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Morgan Stanley Bulls Could Get Gored by Citigroup Deal
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M.Stanley and Citi plan $3 billion broker bonuses
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5 stocks for even-gloomier times
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Wall Street: It's payback time
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Autos:

Wagoner Says G.M. Is Working on an Overhaul Tied to the Bailout
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Detroit critic headed to Detroit
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Big Three can't dodge financial questions
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Detroit Auto Show: Who is the car czar?
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A glitz-free Detroit motor show? Some car makers didn't get the memo
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Recession got you down? Buy a hybrid
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Automakers put on brave face at tense Detroit auto show
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Ford confident could secure gov't credit line
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Ford eyes concession parity in UAW talks-exec
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Detroit Three let UAW take the fall
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UAW Backs Idea of 'Car Czar'
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US car workers protest against wage cuts at glitzy launch
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Judge denies GM injunction to end union blockade
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GM Backtracks, Admits To Possibly Needing More Than $13.4 Billion
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GM is $5 Billion Away from Salvation
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GM's Cash Level Stable For Now
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GM could have trouble hitting bailout targets
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GM studying further reductions in factory capacity
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GM's Garage Sale
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Wagoner Says GM Is Focused on Restructuring
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UAW, Bondholder Talks Slow GM's Revamp
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Expert says UAW will fight concessions
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Chrysler stung by $6B federal help for GMAC
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What to Call the Auto Bailout? AARGH!
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77% auto executives expect more bankruptcies
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Tony March bankruptcy has local victims
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Have you seen how bad things are in car rental? Bankruptcies expected
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AutoNation says truck demand up despite order cut
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GM May Lose as Many as 500 Dealers in US This Year
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S&P sends Visteon deeper into 'junk' status
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Lamborghini Sets Sales Record, Defies Slump With $200,000 Cars
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China's SAIC Motor assessing Ssangyong bankruptcy impact
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S.Korea's Ssangyong Motor says suspends production
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Daimler cuts pay as €50bn stimulus sought
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BMW hits out at aid 'distorting competition'
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Peugeot Citroen vehicle sales drop in 2008
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Judges:

Obstruction Charge Against Judge Kent Raises Constitutional Issue
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Courts:

Chattanooga: Bankruptcy court to remain in historic Customs House
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Metals:

Alcoa racks up $1.2 billion loss for quarter
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Alcoa Says More Output Cuts May Be Needed After Loss
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Apex Silver plans to file bankruptcy this week
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Pan American shares fall after analyst downgrade
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Bankruptcy Prediction:

Corporate bankruptcy, restructuring view for 2009
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Bankruptcy boom seen in 2009, no sector spared
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Survey Finds Many Consumers Considering Bankruptcy
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Retailing:

US Retail Bankruptcy Wave Expected, Last-Minute Shopping Saves UK
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Retailers must invest to beat recession: Deloitte
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Retailers see lighter traffic
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The Companies That Will Dominate Retail Job Cuts
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Wave of Bankruptcies Hitting Retail Sector
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Bracing for the Wave of Retail Bankruptcies
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Wal-Mart CEO says retailers can help economy
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Toys R Us to accept KB Toys’ gift cards
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Regional Retailers Feel the Pinch
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Circuit City Gift Card Holders May Face Deadline
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Retailer wins interim cash use
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Retailers brace for another tough year
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Newspapers:

Tweeting on the brink of bankruptcy
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Sun-Sentinel Publisher: Tribune Bankruptcy Has No Effect On Newspapers
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The blue-collar Star Tribune cuts are the deepest
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Friday is next deadline for Star's parent company
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Newspapers a dying breed?
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Finance:

Frozen Credit Markets: Pinking Up
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Taking a path back to the credit markets
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Debt is the pariah in the new economic order
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Art:

Christie’s Plans Cuts as Auctions Slow
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Religion:

Dalai Lama Blames Financial Crisis on Spiritual Fall
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Commodities:

Commodities Tumble as Recession Erodes Grain, Energy Demand
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Sovereign Debt:

The U.S. is borrowing like mad. Will we default?
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Spain’s Long-Term Sovereign Ratings May Be Cut by S&P
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Personal Finance:

Banks Make Rewards Plans Less Rewarding
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Do 401(k) plans still make sense?
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Even With Her Bill Cut in Half, Woman Feels Overwhelmed
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Finger length may predict financial success
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Motorcycles:

Harley shares fall after gloomy analysts reports
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RVs:

Monaco Coach warned of NYSE delisting
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More RV Companies Bite the Dust
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Sales:

Buyer Beware: Free and Clear May Not be Free and Clear on Appeal
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Economy:

Obama seeks release of remaining $350bn TARP
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Obama Wants Second Half of TARP Funds as ‘Ammunition’
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Obama Will Use TARP Funds to Stem Foreclosures, Summers Says
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Obama Team Promises Bailout Changes
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Sen. Dodd: No exec comp caps, no more rescue cash
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Dimon Says US Recession May Last 2 More Quarters
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Even 'Scrooges' See Need For Obama's Fiscal Stimulus Plan
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Does the Fed have any credibility for forecasting market turnarounds?
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Call It Hurricane Alan
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Mending the TARP
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Consumer-Loan Bond Spreads Fall as Hopes for Federal Plan Rise
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More TARP Programs, More Policy by Deal
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Economy Will Be Slow To Bounce Back
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Depression already here
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Central bankers expect global recovery in 2010
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Real Estate:

TARP spending could shift to housing
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New Data Say House Prices May Be Nearing a Bottom
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Loan relief reaches few who need it
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Mortgage Modification and Moral Hazard
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Columbia Profs Tackle Loan Mods
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LandMar subsidiary defaults on its Durango project
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Tarragon files for Ch. 11
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Patriot Homes closes division
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Test cases ahead for LandAmerica
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NAHB: Problem is Foreclosures, Not Overbuilding
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Over 300 Mortgage-Related Failures
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Fraud:

Madoff’s Freedom Ignites Rage of Neighbors Who Want Him Jailed
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US prosecutor to appeal judge's ruling on Madoff
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Giant Bank in Probe Over Ties to Madoff
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Signs Seen of Plea Deal
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Calm Judicial Eye in Storm Over Bail
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Court Decision Explained
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New restrictions on Madoff, but no jail
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Mackenzie Fund Had Exposure to Madoff
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What It Feels Like To Be Ruined By Madoff
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Bernie Madoff's Victims: Why Some Have No Recourse
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How Many Madoff Red Flags Can You Count?
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Madoff Sparks French Fund Lawsuit to Pry EU30 Million From UBS
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Bernie Madoff's bagman had everything to lose
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A Madoff Fakeout for the Press Scrum
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Madoff fraud forces Planned Parenthood layoffs
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Madoff Firm Trustee Gets Subpoena Power for Broad Investigation
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Santander Falls on Report of Probe Over Clients’ Madoff Losses
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Pilot bails out of plane to fake death
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Layoffs:

Seagate to lay off 10 percent of US workers
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Pilgrim's Pride laying off 450 in Nacogdoches
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Patriot Homes to lay off 125 workers
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Textron’s Cessna to Cut 2,700 Jobs, 17% of Workforce
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2,000 jobs to go after bank merger
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GM laying off 797 in Brazil
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Mosaic laying off 1,000 in Canada
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Jobs market seen to further weaken
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Job Losses Loom as Recession Hits Texas
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"New" Alternatives to Layoffs
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Tech:

KLA-Tencor cuts outlook, warns on business climate
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Lexmark lowers 4Q guidance, adds to restructuring
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DIP Financing:

Bankruptcy financing seen more costly as wave hits
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Jewelry:

Shane Co files for Chapter 11 bankruptcy
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Apparel:

Searle Blatt files for bankruptcy protection
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Mining:

Exxaro JV partner files for bankruptcy protection
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Health Care:

Ensnared by Medical Debt
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Covenant South Hills files for bankruptcy
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Medical Device Developer Files for Chapter 11
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Aliquippa hospital workers who were stiffed for paychecks rally
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Grace to buy Doctors Hospital
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Covenant wants cash use
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What To Do When Your Health Care Is Cut
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Obama announces plan for electronic health records for everyone
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Gambling:

Tropicana Offers 2 Percent Repayment to Noteholders
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Harrah's delays Caesars Palace tower expansion
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Harrah's is on the Brink of Insolvency, Shareholders Say
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Trucking:

Gainey to Operate Through Bankruptcy
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YRC Worldwide shares plunge after ratings action
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Recession Creates Loads of Problems for truckers
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Software:

SCO announces public auction of core products
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Retail Pro gets a stalking-horse bid
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Resorts:

Yellowstone Club's money woes traced to 2005 loan
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Great Wolf shares fall on mortgage loan concerns
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Greenbrier resort to lay off half its employees
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ML&P lands new lenders to complete project at Kapalua
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Oil/Gas:

Flying J California refinery remains closed after 10-day shutdown
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Tronox bankruptcy is a sign of the times
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Oil Extends Slump to Sixth Day on Speculation Stockpiles Rising
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SemGroup plan may be ready by Jan. 31
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Oil's Sinking Fortunes
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Did Speculation Fuel Oil Price Swings?
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60 Minutes on Oil: Did Anyone Verify Anything?
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Construction:

Taxpayers on the Hook for Republic's Failure
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Lehman:

Feinstein bill seeks to help cities, including Long Beach, who lost on Lehman bankruptcy
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Richemont unit, Lehman Brothers in buyout talks
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Malvey, Former Lehman Strategist, to Leave Barclays
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PBGC moves to take over underfunded pension plan of Lehman Brothers
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Insurance:

Names return to Lloyd's in downturn
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AIG gets ILFC bids, to shop asset mgt unit-sources
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AIG still looking to sell aircraft leasing company
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AIG asset sales may erode shareholder value: Citigroup
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Hartford Falls as Plea for Speedier Reform Rebuffed
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Celebs:

Bids for Vick’s Sugarloaf home start at $3.2 million
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History:

More historical crisis comparisons
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Corporate Governance:

CEO Firings on the Rise
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Delaware's rivals
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Accounting:

India’s Enron Puts Auditors Back Under Scrutiny
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Satyam to appoint new auditor
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Satyam Scam - PwC Still in Focus
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Hedge Funds:

Hedge funds, battered in '08, brace for more pain
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How hedge fund manager John Paulson made more than $3 billion betting against you
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Blackstone's GSO hedge fund shuts Asia desk
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Beware The 2009 Hedge Fund Overhang
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Academia:

Survival of the Fittest? Financial and Economic Distress and Restructuring Outcomes in Chapter 11
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Credit Reporting:

Lenders Look Beyond Credit Scores to Gauge Who's a Risk
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Environmental:

Cleanup costs cited in Tronox bankruptcy
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Hockey:

Coyotes may be first in NHL bankruptcy stakes
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Furniture:

Jeffery Bros. files for bankruptcy
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Tax:

Corporate tax benefits may disappear under Obama
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New Bankruptcy Opinions
(No new opinions 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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Bankruptcy Jobs:

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

Mortgage bankruptcy reform may speed losses
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Citigroup Deal May Push All Mortgage Rates Higher
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Banks That Got Bailout Money Still Oppose Bankruptcy Reform
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What Is Worse - Personal Bankruptcy Or Foreclosure?
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Cramdown Controversy #2--Will I "Succeed?"
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Bankruptcy Bill Pact Pits Citi vs. Banks
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Let bankruptcy judge alter mortgage terms
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US bankruptcy code bill rattles MBS market
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Citi's Flip-Flop on Mortgage Cramdowns: A Really Bad Idea
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Mortgage Modification Madness: Wealth Redistribution By Judges
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Bills could let judges rework mortgages
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Citigroup and Durbin Rewrite Bankruptcy, But What About the Investors?
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Bankruptcy Statistics:

Iowa bankruptcy filings jump 14 percent
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Banking:

A Cash Machine Runs Low
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Citi: The Losses Keep Coming
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Citi Board Backs CEO as Outlook Worsens
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Citi inches toward deal but shares off on fear of Q4 loss
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Citi, Morgan To Gain From JV; Citi Needs Capital
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Investors gave a clear thumbs down to Citi selling its brokerage business to Morgan Stanley
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Citi to Close China Private Banking Unit
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Earnings season for banks looks 'frightful'
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Royal Bank of Scotland Selling $2.3 Billion Bank of China Stake
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Allegations Against Wachovia Continue In $500M Fraud
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FDIC Pushes Banks to Monitor Use of Government Funds
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Obama to Restrict Dividends for Banks Getting ‘Exceptional’ Aid
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Analyst cuts estimates on banks
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Bankruptcy court approves PFF Bancorp asset sale
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FDIC Faces $10 Billion Blast on IndyMac Loans
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Bank Failures in 2008 and a Look Ahead to 2009
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Citi sees $3.6bn Q4 loss at Bank of America
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California United Says No Thanks to Treasury Money
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Financial Rescue Bill Would Expand FDIC Consumer Aid
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Credit Suisse, Barclays Say They’re Cooperating With NY Probe
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Food/Drink:

Twinkie-maker still in bankruptcy limbo
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Pilgrim's Pride to be de-listed from New York Stock Exchange
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Pilgrim's Pride loses nearly $1 billion in past year
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Johnson Dairy looks to milk cash
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Building on Agriprocessor's Strength, Trustee Points Way to Sale
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Pilgrim's Pride Corporation receives final court approval for DIP
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Landry’s Falls Most Since 1993 as Takeover Canceled
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Ruth's shares sink on 4Q sales, debt covenant
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Texas Roadhouse declines after analyst downgrade
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Municipalities:

State Bankruptcy Fears May Be Overstated
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Californians look for the exit
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New Orleans DA's Chapter 9?
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Texas comptroller says state revenue to drop $9B
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JeffCo Judge: Occupational tax and business license fees illegal
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Lawmakers looking to help Jefferson County should start with governor's sewer plan
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Aviation:

Airlines, Small-Jet Owners Seek $4 Billion in US Stimulus Aid
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Alitalia Sells a Stake as It Makes Its Return
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Bankrupt Alitalia sells off artwork from its heyday
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Why Air France-KLM Bought 25% of Alitalia
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Frontier not as shaky any more
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Chemicals:

RBS reveals $3.5bn loans to bankrupt US chemicals firm
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LyondellBasell to exit Chap 11 in 1-2 yrs
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Tronox blames Kerr-McGee for debts in bankruptcy filing
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Distressed Investing:

Distressed investing outlook for 2009
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Horticulture:

Bordier's seeks final OK to use cash
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Textiles:

Suppliers Faced Difficult '08
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UK:

British retailers suffer worst December on record
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Banks rise amid hopes of more government support
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Brown promises not on his watch as jobs disaster mushrooms
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Brown Loses Credibility on Economy as Recession Deepens in UK
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Ashurst wins lead on latest retail insolvency
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Former Halliwells partner launches insolvency team at JMW
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Home Retail to Cut 210 Jobs at Manchester Distribution Center
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Boot Hill Biofuels lists $4 million in debt
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UK Slumps Most Since 1989 as Home Sales Drop
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Economic conditions tumble to two-decade low
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Profit warnings highest for seven years
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Foxtons Breaches Its Banking Covenants
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Shattered over Waterford
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Northern Rock shareholders seek redress in court
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Payout hopes rise over Equitable Life
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Taylor Wimpey Home Sales Fell 35%, Plans Writedowns
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Canada:

Canada’s C$32 Billion Debt Plan Is Approved by Judge
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Canadian Investors Plan Dinners, Vacations After Swap Completed
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Newlook's Wireless Age Subsidiaries Forced Into Receivership
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Bell Aliant to Cut 500 Positions, 5% of Workforce
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Bank of Canada Survey Finds Worst Climate in a Decade
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Canada Should Impose National Securities Regulator, Panel Finds
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Japan:

Japan Corporate Bankruptcies Rose Most in Eight Years in 2008
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Japan Loses Big, Making Up For Lost Time
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Japan Bank Lending Accelerates
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Tokyo Electron Shares Fall After Orders Decline 81%
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Sony tumbles on loss report
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Sony expected to report operating loss
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Sony's woes point to deeper Japanese malaise
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Creed, Toshin Bankruptcies Drag Down Property Shares
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Germany:

Merkel’s Coalition Forges Stimulus Plan for Extra $66.8 Billion
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Town Mourns Typical Businessman Who Took Untypical Risks
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China:

Trade Losses Rise in China, Threatening More Jobs
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India:

Board Tries to Chart Recovery for Scandal-Ridden Indian Firm
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Satyam to Replace Auditor
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India Orders Fraud Office Probe Into Satyam Computer Accounts
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Specter of government rescue buoys Satyam
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Denmark:

Furniture retailer saved from bankruptcy
(DBN Subscription Required)

______________

Sweden:

Swedish glassmaker teeters on bankruptcy
(DBN Subscription Required)

______________

Brazil:

Brazilian Stocks Drop on Lower Growth Prospects
(DBN Subscription Required)

______________

Iceland:

Iceland faces the worst of times
(DBN Subscription Required)

______________

Russia:

Tycoon Faces Trials After Failure of US Operation
(DBN Subscription Required)

______________

Argentina:

Argentina Bond Holdouts ‘Tighten Noose,’ Lawyer Says
(DBN Subscription Required)

______________

Ecuador:

Ecuador Bank Says Economy to Slow on Banks, Building
(DBN Subscription Required)

_____________

Africa:

Congo Central Bank Raises Main Interest Rate to 55%
(DBN Subscription Required)

_____________

S. Korea:

South Korea Announces Economic Emergency
(DBN Subscription Required)

______________

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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).