October 16, 2008

The Daily Bankruptcy News

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Law:

Thelen Looks to Parcel Out Sections, Core Group May Stick Together
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Layoff Watch: The Sun Is Not Shining At Sonnenschein
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Report: Sonnenschein Axes 60
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Layoff Watch: Katten's Official Message
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Firms Snap Up Partners from Hot Heller Practices; Associates Struggle
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Barclays to roll out loan deal for cash-strapped law firms
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Weil Gotshal in post-crunch London finance shake-up
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The $700 Billion Bailout Bill: A Bailout for Law Firms?
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Lawyer of the Week: Tony Bugg
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What Will Bailout Plan Do for Smaller Bank Clients?
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Sidley Partner Headed to Trial for Tax Fraud
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Subprime Mortgage Lenders Not Popular With Potential Jurors
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Global 100 league shows UK closing gap on US
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Magic circle defies downturn as top billers bump up hourly rates
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Can Baker & McKenzie's international focus drive the firm into the global elite?
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Are Clients Too Lax on Conflicts, or Is the Government Too Harsh?
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Dying Lawyer's Son, Clintons Beg Biogen to Use Drug
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Attorney Launches Lienstripping.com
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High-Profile M&A Trio Leaves O'Melveny for Shearman
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Now, Lawsuits Concerning the Auction Rate Securities Settlements?
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Only 2% of BigLaw Partners are Minority Women
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Va. Law's Class of 1990: Happy in their Careers, but Less So in BigLaw
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Law firm directories as lame
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Lawyer: Raffaello's Road to Hell Was Paved With Good Intentions
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Did Lawyer Fight Too Hard to Win Cases?
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Lawsuit of the Day: God is Indemnified
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Judges:

Committee chooses Washington attorney for Porteous impeachment probe
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Chief Justice's Noir-Tinged Dissent Gets Mixed Reviews
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2nd Circuit Chief Judge Says Pro Bono Work is 'Anti-Social'
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The Funniest Justice: Week 2 standings
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Personal Finance:

"Saving is for losers"
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Wall Street:

US futures up Thurs. ; eyes on earnings from Citi, IBM
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Citigroup Posts Fourth Straight Loss
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US Stocks Drop Most Weds. Since Crash of 1987 on Recession Concerns
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Europe and Asia Follow Wall Street's Rout
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Australia Stocks Fall on Concern World Economy Will Deteriorate
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Stocks Collapse Into Close
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Most of Monday's Gain Is Erased
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Greenhill hires M&A bankers, opens Japan office
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Wall St plummets as data feeds recession worry
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VIX 'Exploding' as Stocks Plunge on Growing Recession Concern
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JPMorgan's Dimon Plans for More Loan Losses as Economy Weakens
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JPMorgan's $25 Billion
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Record $65bn pulled out of mutual funds
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Merrill Lynch reports fifth straight quarter of losses
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Repo Woes Continue, but Some Life Flickers
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Book Reviews:

Worst Timing Ever Award
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Autos:

GM: Better off bankrupt
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GM Survival Questioned as Chevy Trailblazer's Early Death Chills Ohio Town
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One plan: GM may absorb Chrysler
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GM ad campaign tells buyers they can still get loans
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Tighter Rules On Car Loans Could Slam GM's Sales
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Auto troubles scare buyers
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US Auto Lenders Aim To Be Part Of Federal Reserve Plan
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Honda CEO welcomes U.S. government auto loan
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GMAC's Bond With GM Is Tested
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US Auto Lenders Face `Hurdles' Into '09, S&P Says
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Lear to Cut Costs Through Layoffs; Draws Down $400 Million
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Micro-Heat seeks cash OK
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Electric car manufacturer hit by financial crisis
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German minister snubs carmakers' calls for state aid
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China's car sales boom runs out of steam
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Insider Compensation:

Blankfein's $70 Million Would Survive Paulson's Rules
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Will Bailout's Comp Rules Spread?
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AIG Bonuses, Retreats Violate State Law, Cuomo Says
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Citi Sorts Out Bonuses To Stop In-Fighting
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US should go further on bank boss pay
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Will executive pay limits change anything?
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Blanket payment set to terminate
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It will be bloody if regulators take an axe to bonuses
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Banking:

US eyeing which smaller banks should get capital
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Banks Brace for Slump as Economy Weakens
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Citigroup posts $2.82 bln loss
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FDIC Chief Criticizes Rescue
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Will Banks Blow Bailout Money?
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Washington Mutual's Failure Under US Investigation
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JPMorgan Grants WaMu Parent Access to $4.4 Billion
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Deposits Flowing to Healthier Banks
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Bank Of New York Mellon's 3Q Net Falls 53% Amid Charges
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Parent banks' problems hit home
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Banks got burned by their own 'innocent fraud'
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I.R.S. to Tighten Tax Oversight of Foreign Banks
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Fear is back, and the banks are among the most fearful,
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All's Well At Wells Fargo
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Switzerland Gives UBS a Bailout; Credit Suisse Raises Funds
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Retailing:

US retail sales slid in September
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US Retail Sales Slump 1.2%, Most in Three Years
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Wait begins for bidders on Boscov's
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Boscov's Bid For Boscov's
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Liz Claiborne drops like a rock
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Battered Consumers Push Retail Down
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Lehman:

US Lobbyists Push UK Regulators To Speed Lehman Bankruptcy
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Funds Worry About Lehman Margin Calls
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Lehman creditors fume
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About That Richard Fuld Punching Story
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Barclays weaves Lehman bankers into its senior ranks
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List Of Companies Reporting Lehman Bros Exposure
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Bernanke Says US Had `No Option' to Save Lehman
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Will Lehman bankruptcy drop a $400 billion shoe on October 21st?
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Venezuela banks hit by Lehman failure
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Creditors seek Lehman inquiry
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Chinalco's Rio Tinto stake frozen due to Lehman
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Accounting:

Where Were Auditors as Companies Collapsed?
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U.S. Treasury Committee Declines To Recommend Liability Protections For The Large Audit Firms
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Fair Value Tweaking on a Global Scale
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KPMG to appeal $41m negligence verdict
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The KPMG Trial Begins in Manhattan
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KPMG Executives Helped 'Richest' Evade Taxes, Prosecutor Says
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Debate to ease fair value accounting intensifies
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SEC Agrees to Accounting Shift Sought by US Banks
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KPMG makes new leadership appointments
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Gambling:

State freezes Tropicana sale process for 2 weeks
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Amended Tropicana DIP is OK'd
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Hedge Funds:

Lehman CEO: Treasury Wants to Kill Bad Hedge Funds
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Withdrawals from US hedge funds reach $43bn in September
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Citadel Hedge Fund Falls 30% in 2008
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SEC to Make Hedge Funds Report Short Sales Until 2009
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Hedge funds cut OTC contracts
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Citadel Dispels Web Rumors But Can't Mask a Bad Year
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Hedge funds fight Italian threat
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Food/Drink:

Pilgrim's Pride's future uncertain
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Credit Counseling:

McCollum goes after scamming 'debt-relief' companies
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Corporate Governance:

Boards braced for battle over pay packages
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Metals:

Mega Shredder: more jobs or more headaches
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Sports:

Sports leagues take a hit from bad economy
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Tax:

Bulk of U.S. corporations pay no taxes: GAO
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Executory Contracts:

'Unassumable' Executory Contracts
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Economy:

Bernanke Weighs Limiting Consolidation, Asset Bubbles
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Fed: Economic activity slowing nationwide
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Consumer prices flat in September
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Jobless claims drop more than expected
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Fedspeak Highlights: Bernanke on Lehman, House Prices, more
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Federal Reserve heavyweight Janet Yellen admits US is in recession
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Clause in US bill gave elbow room
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EU, US call for a global summit to reshape banking
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From Plan A to Plan G - The US has tried to stave off depression in half a dozen ways
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The Feds' Next Step After Rescuing Banks
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Drama Behind a $250 Billion Banking Deal
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Lawyers Hope Bailout Bill 'a Full Employment Act' for Law Firms
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Fed's Bernanke says government 'now has the tools it needs'
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Former Resolution Trust Corporation Experts Prepare for U.S. Financial Restructuring Effort
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Who got screwed by the bailout? Well, chances are good you did. But so did Goldman's Lloyd Blankfein and his banking colleagues
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The Long Road Back
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As Consumers Keep Wallets Shut, Economic Outlook Dims
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Global Confidence Plunged on Concerns About Recession
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Sharp slowdown under way, Beige Book finds
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How GMAC's Woes Foretell Consumer Pain
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Bush Says Taxpayers to Get Back 'Most' of Money in Bank Rescue
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Treasury officials trod tightrope for rescue deal
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New York Manufacturing Index Drops to Record Low as Orders Fall
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Global crisis 'failure of extreme capitalism'
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Clients 'don't want to look at long-term projects'
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Startups Feel the Squeeze
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Pensions:

The next bailout may be the PBGC
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Retirement hopes fading away for many
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Real Estate:

Home Prices Seem Far From Bottom
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Mortgage Applications Increase During Week of Oct. 6
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Refinancing Activity Soars
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Looking Out for the Homeowner
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$7,500 Home Buying Tax Break Not Working
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Sen. Chris Dodd declines to release more Countrywide Financial loan documents
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Concordia Homes of Nevada closes sales offices
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Cherokee sues NJMC for $8.85 million
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Barclays files LandSource plan
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Pacific Lifestyle Homes files for bankruptcy
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Fan-Fred Targeted in Mortgage Mess
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S&P Reviews $280.1 Billion of Alt-A Mortgage Debt
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S&P Warns on $351.7 Billion of Alt-A RMBS Secondary Market/Investors
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GE's 'Honey Pot' Properties Turn Sour
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California Home Prices Likely to Dip 6% Next Year
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Mortgage Inquiries Focusing on Florida
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Foreclosures May Blunt Treasury Aid
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Mass Torts:

Ohio asbestos evidence law retroactive: Court
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Aviation:

Airlines Set To Take Off If Oil Continues Retreat
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Airlines Differ on Their Profit Prospects
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AMR, Delta suffer third-quarter losses on fuel
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Sun Country to pay workers 70 percent of wages
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Southwest Posts Loss on Hedge Charge
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Airlines on edge even as crude falls
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Jet to cut 1900 jobs
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Oil/Gas:

Oil Falls on Doubts Rescue Will Avoid Recession, Bolster Demand
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Oil falls to 13-month low
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Oil & Gas Headed Lower as Economy Strikes Consumers
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SemGroup to sell its British fuel storage plant
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Biotech:

Carlsbad biotech company files bankruptcy
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Hotels:

Great Southern Hotel developer files Chapter 11
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Derivatives:

CDS-backed deals face downgrades on bank failures
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The $58 Trillion in the Room
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Regulation in the cards for debt insurance
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Lawmakers, regulators butt heads over swaps clearinghouses
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Clearing up the credit swaps fog
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Lehman shows that CDSs work
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Wall Street Skid Prompts Calls for Enron-Like Interest-Rate Swap Guarantee
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Fraud:

Assets of Petters co-defendents frozen
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Early signs of Petters debacle unheeded
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Petters' lawyer urges folks to avoid 'rush to judgment'
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PE:

Private equity firms struggle for new direction
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Mining:

Rio May Delay Sale, Vedanta Can't Close Asarco Deal
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Asarco will contest suitor bowing out of $2.6B bid in May
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Cross Lake gets a DIP
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Who will survive? Commodities collapse will take a mighty toll.
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Health Care:

Former Winona Hospital on the block
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Hospital strike had little effect
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AtheroGenics case moved to Ch. 11
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Enron:

Ex-Enron Broadband exec pleads guilty to wire fraud
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Credit Cards:

Visa, MasterCard Decline as Consumer Spending Slows
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Wells Fargo Q3 Card Charge-Offs Jump 105%
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Cap One Sees Jump in Card Charge-off, Delinquency Rates
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Defaults:

S&P says 139 companies now in danger of defaulting
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Bonds:

Emerging-Market Bonds Fall as Evidence of US Recession Grows
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Junk bonds signaling deep recession
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Apparel:

Jones Apparel Plunges Most in 10 Years After Lowering Outlook
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Shipping:

Ship Rates Plunge as Credit Freeze Strands Cargo, Demand Slumps
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Commodities:

Commodities join equities in downward spiral
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Commodities fall as investors flee
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Copper, Aluminum Drop in London as Recession May Erode Demand
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Reinhart, US Cotton Merchant, Seeks Protection From Creditors
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Corporate Reform:

Prosecutors Expand Staff, Use Enron, Refco Models in U.S. Subprime Probes
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Justice Tracking Mortgage Fraud Cases
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Broadcom Co-Founder, Federal Prosecutors Decline to Withdraw Plea Bargain in Backdating Case
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Newspapers:

A Triple Financial Whammy Afflicts Newspapers
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Advertising:

Persuading Companies to Keep Up Their Pitches During Hard Times
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High Fashion:

Hello, Customers. Are You Out There?
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Layoffs:

Archway Cookies, LLC Sued by Employees Under WARN Act
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Laid off Archway workers receive compensation
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Thousands at job fair, but few jobs
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Financial Literacy:

High schools in SD add crash course in finances
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Alternative Fuels:

Greater Ohio Ethanol files Chapter 11 bankruptcy
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Gambling:

Harrah's chief financial officer dismisses talk about cash woes
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Auto Racing:

Nascar Runs Into Economic Wall as Sponsorships Dry Up Amid Credit Crisis
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M&A:

Crisis sees collapse of $90bn M&A deals
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Celebs:

NFL Player Accused Of Bouncing $78K Check
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Turnarounds:

The 'hired guns' become the fired guns
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Predatory Lending:

Panel Orders Predatory Lending Claims Consolidated
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Electronics:

Rough Times Ahead for the Electronics Industry
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New Bankruptcy Opinions
(1 new opinion today) 

Bankruptcy Court Web/Pacer Site Directory

Chapter 7, 12 & 13 Private Trustee Locator
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Recent Ch. 11 Filings
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Bankruptcy Jobs:

(1), (2), (3), (4), (5), (6), (7), (8), (9), (10)
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Insurance:

New York's Cuomo probes "outrageous" AIG spending
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NY Asks AIG to Recover Payments
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Andrew Cuomo's Horrible Mistake :)
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AIG execs spent thousands during UK hunting trip
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AIG ends all activities not essential to conduct of business
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AIG Has Plenty of Assets to Cover Loan: Former CEO
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AIG's Breakup Sparks a Price War
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Protective Life Falls as Moody's Says It May Be Cut
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Allianz Doesn't See Need to Tap German Rescue Plan
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Health Insurers Earnings May Fall as Employers Lop Jobs
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Mortgage crisis unlikely to hit global insurers: S&P
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Politics:

Obama Widens Lead as Americans See 'Serious' Crisis
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Candidates Trade Jabs on Taxes, Tone
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Dodd wants new financial reform laws
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Reid unveils economic plan
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McCain's economic plan won't stop foreclosures
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Finance:

Credit Markets Improve, but New Troubles Emerging
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For Fast Cash, Firms Tap Revolving Loans
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What to Do About Libor
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LIBOR Shows Worst Is Yet to Come for Credit Markets
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Refinancing Debt Percolates as Big Worry
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Fed Offers GE, Citigroup Commercial Paper Subsidies
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Overnight Commercial Paper Yields Fall for Second Straight Day
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Will the Fed's commercial paper plan backfire?
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Lending Alternative Hits Hurdle
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What Will We Do With New Credit?
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GMAC Has Limited Funding, May Scale Back Outside US
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Interest-Rate Derivatives Signal Slow Thaw in Lending Freeze
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Bankruptcy Statistics:

September Consumer Bankruptcy Filings Up 28.6 Percent
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Utah Bankruptcies Jump
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Trucking:

Wachovia leads Gainey to file Ch. 11
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Gainey Corp. vows to regroup, stay in business
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Motorcycles:

Harley's $35000 Cruisers Caught in Credit Crunch
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Plastics:

Portola Packaging, Inc. Obtains Approval of Pre-Packaged Plan
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Valuation:

Companies That Sell for Less Than Their Cash
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Municipalities:

Riley says JeffCo bankruptcy would send wrong signals
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Governor says bankruptcy would harm Alabama
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Wall Street Job Losses Cause Citywide Panic
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Vallejo retirees to be represented in city bankruptcy decisions
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California Boosts Note Sale by $500 Million as Demand Soars
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Public finance borrowing costs rise to eight-year high
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Magnitude of Fiscal Crisis Hits State Budgets
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Funeral Service:

Lawyer says funeral home bankruptcy is bogus
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Dot-coms:

ClickableOil sale drawing near, trustee says
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Education:

As economy swoons, parents fret over higher college costs
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UK:

Brown Signals UK May Soften Dividend Limit on Rescued Banks
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Insolvency body aims to beef-up council's powers
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U.K. Bailout Shows Cracks
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RBS, Lloyds and HBOS push for revision of bailout plan
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FSA checks on insolvency protection
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BOE Curbs Disclosure, Cuts Penalty to Quash Stigma
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Plight worsens for commercial property sector
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Slim pickings for London bankers and recruiters alike
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Top bankers fall as state steps in
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Why regulating bankers' pay is still a bad idea
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Northern Rock faces struggle to repay £11bn loan
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Lenders reject 5m credit applications
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Audit Commission admits to £10m Iceland deposits
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Inflation soars to highest rate in 16 years
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Risky incentives as housebuilders battle to sell homes
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House prices to bounce back ... in 2023
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Sharp rise in number wanting to hand back their homes
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Business warns of bail-out loopholes
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Sorry not a word in bankers' vocabulary
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Insolvency boost for business park
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In distress? Call Savills
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KPMG in crunch talks with JJB bankers
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EU:

ECB Widens Collateral Rules, Slashes Required Ratings
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European rescue raises debt fear
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Europe's Central Banks Intensify Effort to Jolt Market to Life
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EBRD sees dire effects of borrowing freeze
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Iceland:

Iceland scouts for cash to ward off national bankruptcy
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Dramatic rate cut in Iceland as economy flirts with bankruptcy
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Battered Iceland battles for UN seat
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CDOs Have 'Substantial' Risks From Iceland Banks, S&P Says
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Threat to Dutch savers in Icesave
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Private equity firms circle Baugur debt
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E&Y ready to be Landsbanki administrator
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Canada:

Canada's Layton Calls for All-Party Talks on Financial Crisis
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Australia:

And by the way, we're going broke
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Egypt:

Egypt's new economic courts breed both confidence and ire
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Pakistan:

World Bank and allies pull Pakistan from brink of ruin
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China vows to help cash-strapped Pakistan
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Germany:

Tengelmann Sees `Severe Recession,' Says Discounters to Prosper
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Merkel Says Banks Must 'Offer Something in Return'
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German Schmuckkanal to go into liquidation
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Hungary:

Hungarian Stocks, Currency Drop on Icelandic Concern
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Ukraine:

Ukraine tries to stifle mounting run on banks
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Japan:

Japan's Bonds May Advance as Recession Concerns Weigh on Stocks
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Japan's Stock Futures Plunge on Worsening US Retail Sales
(DBN Subscription Required)

Japan Premier Aso Says US Must Expand Bailout Plan
(DBN Subscription Required)

If you must get sacked, try to do it in Japan
(DBN Subscription Required)

______________

Switzerland:

Switzerland to take on $60 billion of UBS assets
(DBN Subscription Required)

______________

China:

Business Bankruptcy In China. The Five Fold Path.
(DBN Subscription Required)

Online video firms under bankruptcy risks
(DBN Subscription Required)

______________

Spain:

Foundations of housing sector crumble
(DBN Subscription Required)

______________

South Korea:

South Korea's Store Sales Decline for First Time in Nine Months
(DBN Subscription Required)

35% of Profitable Firms Run Risk of Bankruptcy
(DBN Subscription Required)

______________

New Zealand:

NZ Consumer Borrowing Falls on Sliding Confidence, Turmoil
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New Zealand Manufacturing Shrinks for Fifth Month
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______________

Malaysia:

In Landmark Trial, Malaysia's Ex-King Is Ordered to Pay Debt
(DBN Subscription Required)

______________

Ireland:

The crisis caused by bankers may take us to the edge of bankruptcy
(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).