March 17, 2009

The Daily Bankruptcy News

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Law:

'Medieval' U.S. Law-Firm Pay Structure Buckles Under Weight of Recession
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Ending Lockstep Salaries, But What About Billing?
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Broken Business Model of BigLaw Continues To Shine
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Billable Rates Now Under Siege Due to Recession
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The Human Toll
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A Really Bad Bet
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BigLaw's Harsh Winter Leaves Its Vendors Out in the Cold
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You Can't Wait It Out: The Collapse Will Shrink The Profession Forever
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Details emerge of payouts in Allen & Overy's layoff program
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Firm asks partners to take fixed-share status
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Lawyers Can't Even Find Work for Free
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Public Interest Jobs Won't Fall Into Your Lap
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Support staff at firms are feeling the brunt of the current downturn
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For law students . . . all the depressing info we could find on your future, all in one lace
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Stealth Layoff Watch: Alston & Bird
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Letter from London: U.K. Confidential
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s

Anatomy of a Dissolution: Morgan & Finnegan Still Hasn't Paid Severance
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How rising through the ranks is done now
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Recession Will Forever Change the Legal Profession
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For jobless lawyers, plan B includes good works
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Big-Firm Partners Go Small to Keep and Attract Frugal Clients
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Mass Attorney Layoffs Yet to Materialize in Valley
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The Ice Cream Defense
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Bankruptcy services companies find growth in downturn
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Firms Beefing Up Real Estate Practices to Cash In on Stimulus Bill Pork
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'Domino Effect' Hits Law-Related Business
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More Bankruptcies in Asia, Few Bankruptcy Lawyers
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Federal judge scolds prosecutor
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Judges:

Bankruptcy Judge Saves Little Girl’s ‘Twinn’
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Charges Against U.S. Bankruptcy Judge Accused of Hitting Wife Are Dropped
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New Book on Justice Kennedy Defends His Jurisprudence
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Wall Street:

Wall Street Set for Modestly Higher Opening
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Europe Stocks Fall for First Time in Six Days; Asia Shares Gain
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Brazil Stocks Retreat on Economic Concern, Petrobras Decline
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US Stocks Retreat as Rally in Financial Shares Fizzles
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US Stocks Fall Mon.
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GE shares back above $10
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MGM Mirage, GM Lead Wave of Filing Delays as Valuations Plummet
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New Bank Powers Have Wall Street Concerned
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A Year After Bear Stearns: The Amazing, Shrinking World of Wall Street
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Defense digs out of documents in Bear Stearns case
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Banking:

Wells Fargo Chief Blames TARP for Payout Cut, Calls Stress Test 'Asinine'
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Citigroup nominates 4 new independent directors
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Wachovia Sued Over 'Bad-Faith' Charging of Overdraft Fees
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Geithner Urges Banks to Go ‘Extra Mile’ to Boost Business Loans
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Alaska dodges banking collapse
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Small Banks Thrive As Giants Fall
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Humbled banker parts with yuppie past
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Goldman Offers Loans to Stretched Employees
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A slow motion implosion at Barclays
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Fraud:

US to seek Bernard and Ruth Madoff assets
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Trouble Ahead for Ruth? Handicapping the Madoff Forfeiture Battle
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Bernard Madoff's wife making moves to save money, Palm Beach mansion
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Madoffs' Palm Beach mansion gets tax break
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Madoff Ponzi Victims May Get Less Than $10 Million From Sale of Businesses
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Madoff Trustee Seeks to Recover Assets in Gibraltar
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Madoff Trustee Leaves No Stone Unturned
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Why no one defends Bernard Madoff
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Madoff spent nearly USD 1 mn on lobbying, Democrats
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Cough It Up, Bernie: Feds Look to Seize Homes, Boats, Pianos . . .
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With Madoff in Jail, What's Next for the Case?
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Bernie Madoff's Billionaire Victims
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How Mad Is Bernard Madoff?
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Building Supplies:

Masonite Files for Bankruptcy to Restructure Debts
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Insurance:

Worry Grows Over Insurers
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Taxpayers Unlikely to Be Fully Repaid in AIG Mess
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Another $8 Billion on the Line for AIG
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The Case for Letting AIG Fail
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Is AIG the Fall Guy for Goldman Sachs?
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AIG Bank Payments - Is the Media Missing the Point?
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Why did AIG pay its counterparties?
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Who's Who on AIG's List of Counterparties
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Bonus furor may prompt limits on AIG bailout money
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It Takes a Nation of Millions to Bail Us Out
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AIG Says $105 Billion Flowed to Goldman, US States
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AIG bailout: half trillion exposure for taxpayers
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"Time to fire some people" at AIG: Barney Frank
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AIG's Bailout and the Price of Doing Business
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The AIG Bailout: Why Was the Onus Placed on Taxpayers?
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Ashamed of AIG
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Life Insurers Lost $32 Billion in Capital in 2008
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Moody's Cuts Radian to Junk
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Publishing:

Publisher loses ground as sales decline
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Food/Drink:

PCA's Innocent Victims Go Beyond Consumers
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Town Pays Homage To Archway Cookies
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Agriculture:

Many farmers forced to find new careers
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Gambling:

Potential buyers looking at MGM Grand, report says
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Icahn group plans to bid on Tropicana casino
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Betting it all on bankruptcy ?
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MGM Grand, Greektown get bids
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Board to see MGM's cards
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Odds of an MGM bankruptcy are high
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Horse Racing:

Nasdaq removes shares of Magna Entertainment
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Derivatives:

I(r)(c)eland vs CDS, redux
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CDS pool deep, cross-Atlantic rules may vary
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Backing for AIG provides derivatives blueprint
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Finance:

Moody's Warns of Heightened Refunding Risk
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Treasury Moves to Break Credit Logjam
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Tech:

Spansion hires restructuring expert
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Qimonda keeps DIP details under wraps
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Dynaco prevails on cash use
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Accounting:

When Can an Asset Sale Become a "Merger?
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Politics:

Cincinnati Tea Party Draws Thousands
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M&A:

Done deals could be undone by US regulators
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Executive Compensation:

Lazard’s Wasserstein Takes Pay Cut to $20.5 Million
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Black & Decker CEO Earns $12.1 Million
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Wall Street Pursues Pay Loopholes
(WSJ: separate paid subscription required)

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Auctions:

Auctioneers bid slow times goodbye
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Bankruptcy Crimes:

Boy band mogul Pearlman sentenced to 25 years
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Farmer's wife sentenced to probation following guilty plea
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Peter Pocklington gives up passport
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Economy:

US Industrial Production Fell 1.4% in February
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New York Manufacturing Index Slumped to Record Low
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Surprise Jump in Housing Starts
(WSJ: separate paid subscription required)

Bernanke May Need ‘Massive’ Asset Buying to Counter Contraction
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Putting the federal debt in perspective
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Stimulus Plans Face Local Road Blocks
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Depression Fears Subside on Bernanke Remarks, Rally in Stocks
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Bernanke Sees Start of Recovery in 2010
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Bernanke Outshines Obama Team With Defense of Government Effort
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Obama’s Czars Breed Chain-of-Command Confusion
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Foreign investors slash US holdings
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The U.S. may have to put Yellowstone and the Washington Monument on the block
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Real Estate:

Homebuilder Confidence in U.S. Holds Close to Record Low as Slump Persists
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Housing Starts in U.S. Probably Slumped to Record as Foreclosures Climbed
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Mortgage fraud up in US but dips slightly in Florida
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Fraud hits FHA loans
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Thoughts on Walking Away From Your Home Loan
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PMI Group 4Q loss narrows on fewer charges
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Florida No. 2 in mortgage fraud
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Sister companies Anderson Homes, Vanguard Homes file for bankruptcy
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Developer Kelly exploring bankruptcy option, court told
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Thornburg Mortgage Announces Expiration of Company’s Override Agreement: Entry Into Forbearance Agreements With Counterparties: Engagement of Restructuring Advisors
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HOA moves to foreclose on 84 homes
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Federal Reserve Chairman Ben Bernanke's Childhood Home Sold After Foreclosure
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Locksmith hired to change locks shot by homeowner
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Executive Compensation:

Buffett goes 25 years with no raise
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Citi CEO Paid $38.2 Million in '08 in Mostly Stock
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Money Managers:

Fortress posts wider quarterly loss as funds shrink
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Manufacturing:

Illinois Tool Works slashes first-quarter outlook
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Retailing:

Ackman Will Nominate Himself to Target Board With Four Others
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Ackman Seeks General Growth Seat, Expects Bankruptcy
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General Growth gets some lender consents on waivers
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Men's Clothing Chain Files For Bankruptcy
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Jos. A. Bank offers suit guarantee in case of job loss
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Experts: Gottschalks likely to liquidate
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Bankruptcy Takes A Personal Toll On Retailer
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Bonuses:

JPMorgan Must Let Investors Vote on Executive Bonus Proposals
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AIG: Bankruptcy would have avoided the bonus debacle
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The Case for Paying Out Bonuses at A.I.G.
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Let's Hear It For Bankruptcy!
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Obama Orders Treasury Chief to Try to Block A.I.G. Bonuses
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Treasury to rework AIG aid to recoup bonuses
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AIG Pay Madness Needs a Stop From Geithner
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In the land of Oz, the wizard is a fraud
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"Lives in Danger" at AIG
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Grassley on AIG execs: Quit or suicide
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AIG disses Barack: King of the bailouts arrogantly blows off the President
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AIG’s Bonus Bonanza: Will the Government Get Its Money Back?
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AIG May Face Subpoena From New York’s Cuomo on Retention Payment
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Lame Excuses for AIG Bonuses
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Other types of bonuses deserve an examination
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AIG May Have to Reveal More Bonus Data, Faces Cuomo Subpoena
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AIG is a PIG
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AIG: Contractually Obligated to Spit in Face of Taxpayers
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Tar and Feathers for AIG
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AIG should hire me
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Frank Joins Chorus on AIG Bonus Outrage
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AIG demands ransom
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Shelby Assails Geithner's Handling of AIG Bonuses
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AIG's Bonuses Are an Absolute Joke
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AIG's arrogant lie
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The Real Harm Caused By the AIG Bonuses
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Bail Out AIG’s Workers, But Not GM’s?
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The sanctity of AIG's contracts
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Aviation:

Air Canada running out of ACEs
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Frontier Airlines, pilots fight over 401(k) match
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Theme Parks:

6 Flags CEO says debtholder refuses to talk
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Disney Halts Hong Kong Park Design Work, Cuts Jobs
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Shipping:

Add shipping exposure to banks’ woes
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Municipalities:

California's state work force grew despite budget woes and cut promises
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In a first, bankruptcy judge rules Calif. city can void union contracts
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Vallejo, unions hope to reach deal
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Trenton passes pension deferral
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Debt Collection:

Are Private Debt Collectors a Bad Bet for Cities?
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Newspapers:

Seattle Post-Intelligencer to go Web only
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Ex-Rocky Mountain News staffers plan news Web site
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Pelosi goes to bat to keep Bay Area papers alive
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'It's odd to cover your own funeral'
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The Demise of the Newspaper
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When newspapers fold
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Debt Exchange:

Fitch Releases Debt Exchange Criteria
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Corporate Reform:

Americans Are Rearing for a Fight with Corporate Power
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Health Care:

Ohio's Forum Health hospitals file for bankruptcy
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Reorganization of hospital system begins today in court
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American Legion commander 'deeply disappointed, concerned' after meeting with Obama... Plan to Charge Wounded Heroes for Treatment
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Medical center shuts doors
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NAS wins DIP loan approval
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Giftware:

Lenox emerges from Chapter 11 protection
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Chemicals:

LyondellBasell says not paid 2015 bond interest
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Ferries:

NY Waterway sends SOS, again
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NY Waterway reassures customers after report of financial problems
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Hedge Funds:

Bayou’s Samuel Israel Pleads Guilty to Bail-Jumping
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Pimco’s El-Erian Says Buyout, Hedge Funds May Shrink by Half
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Accounting:

FASB Moves Toward Giving Banks More Flexibility on Fair-Value
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A Fair Value Antidote Is Rushed by FASB
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Dennis M. Nally Selected as Global Chairman of PricewaterhouseCoopers
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Corporate Governance:

It's Fair to Blame Boards, CEOs for Financial Meltdown
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Distressed Investing:

Conflicts when PE firms start trading debt?
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Rating Agencies:

Rated F for Failure
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Biotech:

One in Five European Biotech Cos Could Fail in 2009
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Fashion:

Bye-Bye to Bling-Bling
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New Bankruptcy Opinions
(2 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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Bankruptcy Jobs:

(1)- (2)- (3)- (4)- (5)- (6)- (7)- (8)- (9)- (10)
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Weird News

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Bankruptcy Reform:

Bankruptcy Reform: A Necessary Component of Economic Recovery
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Foreclosure option on rocky turf in Senate
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Schumer rejects compromise on cramdown
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Bankruptcy Poetry:

Haiku
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Autos:

Obama auto task force: Bankruptcy not our goal
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Car team warns fed aid has limit
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AIG bonuses should outrage Detroiters
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Detroit's Pain Begins to Spread
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Auto crisis tests Obama adviser
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Auto Delinquency Rates Rise Nearly 9 Percent in 4Q
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Ford Europe to Cut Capacity, Costs
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Chief Doubts Chrysler Would Survive Bankruptcy
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Chrysler CEO: No Recovery Signs Yet
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Fighting for Time
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Interview Excerpts: Robert Nardelli
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Auto Bailout Political Dance Starts
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Obama to Avoid Auto Bankruptcies
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GM Bondholders: We're Working To Avoid Bankruptcy
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GM bondholders pitch plan to reduce debt
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Dana Holding Posts Loss on Weak Auto Sales
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Obama auto team still undecided on Chrysler-Fiat deal
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Chrysler Values Fiat Technology at Up to $10 Billion
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Govt carmaker bail-out 'doomed to fail'
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Visteon to cast doubts on ability to pay debts in regulatory filing
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Auto parts makers show they're suffering, too
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Creditors try to force Darrow Automotive into bankruptcy
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Opel Assistance Deal Thin On Details Says German Gov't
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German Govt Document: Full Opel-GM Split Impossible
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Directories:

Idearc's largest shareholder says bankruptcy avoidable
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Media:

Charter Communications' fourth-quarter loss widens on write-downs
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Charter Plans Bankruptcy Filing
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Video Rentals:

Former rival buys 5.7% stake in Blockbuster, says bankruptcy unlikely
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Trade Debt:

Trade Vendor Quarterly
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Claims Processing:

Bankruptcy Claims Processor Agrees to $97 Million Deal
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Australian company acquiring Kurtzman Carson
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Examiners:

Judge agrees to examiner in DBSI case
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Hotels:

Company associated with ESuites, hotelier eyeing RDU, files for Chapter 11
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Architecture:

Future of Many Architectural Firms in Doubt
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Telecoms:

Primus Telecommunications files for chapter 11 bankruptcy
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Primus, bondholders settle
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Private equity groups eye Motorola, Nortel assets
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Apparel:

Babylegs struggling to survive
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Credit Cards:

U.S. credit card defaults rise to 20 year-high
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American Express card defaults rise in February
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Cap One Reports Rise In February Net Charge-Off Rate
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Credit Card Issuers Choke U.S. Businesses With Higher Rates, Credit Limits
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Credit Card Cancer
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Mining:

Asarco plans bankruptcy settlements
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Lehman:

Lehman Matters!
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Lehman puts two bank units on market: source
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RVs:

Plaintiffs File Class Action Against Monaco Coach Corporation
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Fleetwood wins interim cash use
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Resorts:

Empire Resorts reports loss of $12.2M, might face bankruptcy
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Oil/Gas:

Oil Falls From a Two-Month High on Stockpile Gain Speculation
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Ethanol:

Aventine warns may need to seek bankruptcy protection
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Tax:

Barclays reaches for its lawyers to squelch publication of tax story
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Barclays probed on tax issues
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Tax Tips for an Economic Slump
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Layoffs:

Nokia to Cut 1,700 Jobs Globally as Market Contracts
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Worries about unemployment have tripled over the past year
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UK:

The legal actions against RBS
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Former RBS chief could face ruin
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England, Wales professional negligence cases rise
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Orchard Solicitors, Til debt do us part
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Friends Provident’s Loss Widens as Investments Drop
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JJB Sports extends 'standstill' agreement and explores 'solvent restructuring' options
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Barclays in talks with Treasury about ring-fencing Asset Protection Scheme
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EU:

EU Considers Higher Aid Ceiling for Stressed States
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Russia:

Oil producer Russneft faces bankruptcy
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Canada:

Complacent Canadians now deep in debt
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Canada’s February Existing Home Sales Rise as Prices Decline
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Canadians' Net Worth Declines the Most Since 1990 on Stocks
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Different approaches to insolvency
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Germany:

German Investor Confidence Unexpectedly Rises for Fifth Month
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Germany prepares to seize Hypo
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Mexico:

Mexican Banks ‘Party’ May End as Economy Shrinks
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Japan:

More than 1000 homeless ex-temp workers seek support in Tokyo
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Japan to Tighten Corporate Governance Rule
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BoJ to buy $10.2bn of bank subordinated debt
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Syria:

Syria suffers as economy dries up
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Latin America:

Latin America May Contract 4%, Morgan Stanley Says
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Hong Kong:

Hong Kong Jobless Rate Climbs to 32-Month High of 5%
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Switzerland:

Swiss Industrial Output Drops More Than Expected as Global Demand Weakens
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Swiss Government Cuts Outlook, Expects Economy to Shrink by 2.2% This Year
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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).