January 26, 2009

The Daily Bankruptcy News

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Law:

As Mergers and Other Work Dry Up, Bankruptcy Becomes Lawyers’ Oasis
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Chill of Salary Freezes Reaches Top Law Firms
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Law Firms Keeping an Eye on Client IOUs
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2009: A tough year to make partner
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Recession Batters Law Firms, Triggers Layoffs
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Firms pin hopes on Obama
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2009 Corporate Restructurings: What To Expect
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Salary Freezes and Layoffs Don’t Keep Law Firms Off Best Places to Work List
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Despite Downturn, Skadden Soars: Top M&A Firm is Global, Countercyclical
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Report From London
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Midsize Firms Find the Only Certainty Is Uncertainty in 2009
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Lawyers' Indictment in Huge Ponzi Scheme Shocks Legal Circles
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Baker & McKenzie Lays Off 20 Legal Staff in London
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Boston’s Choate Lays Off 15 Attorneys and 23 Staff Members
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Bonus Watch And Nationwide Pay Freeze Watch: Chadbourne & Parke
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Bonus Watch: Latham & Watkins
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Linklaters: partners to go as firm prepares for associate job cuts
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Linklaters v Freshfields: the arms race starts here
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Cadwalader Axes Nine More Associates, Six in NY as Practice Leader Quits
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Cadwalader trio snubs offer to stay
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Usual increase in law firm billing rates not happening this year
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Perkins Coie's Vegas Vacation
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DLA Piper Among Firms Receiving Payments From Joe Bruno
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Back-office support for lawyers puts tech firm up front
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Optima brands law firm model 'unsustainable'
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MegaFirm Aims to Oust at Least 35 Partners, Ax Associates
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Burned investors turning to the courts for revenge
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Litigation Spurs Paul Weiss' Increase in Revenue, Profit Figures
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Lawyers Warned to Be Wary of Client E-Mail Scams
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Alumna of Davis Polk, Boies Schiller to Follow Clinton in Senate
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Case Proceeds Despite Typos, Failure to State Damages in Complaint
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Advertising Rules and the Problem of Ethics Laundering
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Circuit Skeptical Over Restoration Of Rules Curbing Content of Attorney Ads
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1st Oral Argument for Jenner Associate is in US Supreme Court
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How NY Lawyer Became the Pie Lady
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Lawyer, 73, Charged With Giving Man a Wild Ride on Mercedes Hood
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Lawyer of the Day: Diedre Dare
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Judges:

Convicted pump judge Donald Thompson faces battle for pension
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Disbarment Urged for Judge Convicted of Travel for Tryst With Underage Boy
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Masked Judge Orders Hotel Confinement, GPS Monitoring for TB Patient
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Wall Street:

Wall Street points higher as Pfizer buys Wyeth
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Wall Street Ends Fri. Mixed as Tech, Financials Rally
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Market Woes in January May Signal Rough 2009
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Why Wall Street still doesn't get it
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For $10, Fuld Sold Florida Mansion to His Wife
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GE profit down 46%
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General Electric sees more credit losses in 2009
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Xerox Profit Plunges, Missing Expectations
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Wall Street's Culture of Entitlement Hard to Shake
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Wall Street snookers another commercial bank
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Mack Tells Wife He May Lose Firm Before Staking All on Brokers
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DBRS downgrades Morgan Stanley
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Goldman Downgraded
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Layoffs:

Economic Storm Batters Ohio Town
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California unemployment rate jumps to 9.3 percent
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OH unemployment hits 23-year high
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Ga. unemployment rate hits 8.1 percent in December
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Central Florida jobless rate rises to 7.7%
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Texas unemployment rate shoots up to 6 percent
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Arizona jobless rate climbs to 6.9 pct in December
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Minn. jobless rate jumps to 6.9 pct in December
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NC Unemployment Rate Tops 8.7-percent
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NYS unemployment rate hits 7% in December
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After Profits Grow, IBM Quietly Lays Off Workers
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Harley to cut 1,100 jobs
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Comerica to trim another 570 jobs
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Steel maker Corus to cut 3,500 jobs
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ING Group to Cut 7,000 Jobs
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Philips Halts Buyback, Slashes 6,000 Jobs After Loss
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Starbucks To Cut Another 1,000
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Caterpillar to Cut 20,000 Jobs; 2009 Forecast Trails Estimates
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Air Canada cuts 375 jobs
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Schlumberger to Cut More Jobs After Profit Falls
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KB Toys employees still await severance package
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For Growing Ranks of the White-Collar Jobless, Support With a Touch of the Spur
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Companies in US to Slash More Jobs, Business Economists Say
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Bad Times Spur a Flight to Jobs Viewed as Safe
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A Long Hard Winter for Laid-Off Workers
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A Guide to Self-Employment
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Fraud:

Two US businessmen win a round in Madoff lawsuits
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Investing With Bernie Madoff
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The Talented Mr. Madoff
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Harvey Pitt on the implications of Madoff's scheme
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Some Madoff Investors Made Money—and Are Now Lying Low
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Madoff scandal 'clawbacks:' more legalized extortion of law-abiding citizens
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Every Man for Himself
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Missing trader's investors lost big
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Municipalities:

Illinois Typifies a Looming Pension Problem
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Harkey Says California in State of Undeclared Bankruptcy
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California is almost out of ways to pay bills, fund programs
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State Lawmakers Bet Gambling Can Help With Budgets
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Perdue cites '30s reform as blueprint for change
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Jefferson County doesn't need DC lobbyists
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Rio Vista - hard times in a small town
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Pension plan worse off than many
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Aviation:

Analysts' Pessimism Hits Southwest Airlines Shares
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The State of the Airline Industry
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The State of the Airline Industry--Page 2
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Economy leads to early departure for 500 American pilots
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Airlines Use Terrorism Law to Punish Unruly Passengers
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Swedish Airline Nordic Airways Looses License
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Lehman:

Lehman's Japan Real Estate Assets Now on Sale
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Credit Suisse compensates its Lehman investors
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Lehman's remains may help Barclays avoid nationalization
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Derivatives:

Time to Unravel the Knot of Credit-Default Swaps
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Apparel:

Hartmarx Files for Bankruptcy Amid Sales Decline
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Corporate Reform:

Obama Plans Fast Action to Tighten Financial Rules
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Harvey Pitt on Madoff and reforming regulation
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Where, amid the financial ruin, is the shame and catharsis?
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Former Brocade CEO's Play for Pardon Falls Short
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Retailing:

Bust-up in aisle 4: Retailers, vendors going at it
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Retail landlords holding the bag
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Customers frustrated with Circuit City liquidation sale prices
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The final moments of Circuit City
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If only Circuit City had known it was better
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Bankruptcies surge among national chains
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Retailer's bankruptcy raises questions about warranty status
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Royal Hawaiian slams door on Hilo Hattie
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Liquidation Nation
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Ailing retailers dig deep, go psychological
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US retail cuts helped some inventory companies
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Alternative Energy:

Ethanol's Woes: Northeast Biofuels' woes point to an industrywide problem
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Panda Ethanol Unit Files Chapter 11
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Credit Cards:

Credit Card Holders At Risk After Data Breach
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Credit Cards Deal a Losing Hand to Capital One
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Travel:

Luxury vacation club is financially threadbare
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Telecoms:

Nortel's workers without a safety net
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Gambling:

Dramatic downfall for Atlantic City's oldest casino
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MotorCity, Greektown deal with bad hands of debt
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MotorCity Lenders Call on Red Wings’ Ilitch for Cash
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Pool:

Economy Scratches Pool in the Side
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Debt Collection:

Preoccupations: In Tough Times, a Debt Collector Sees the Pain
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Economy:

Economy in U.S. Probably Contracted Most Since 1982 as Spending Collapsed
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Obama Signals Tough Restrictions on Banks in Rescue Package
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In Effort to Build Support, Obama Details Stimulus Plan
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Biden, Summers Sound Economic Warnings, Push Stimulus
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Economists: Recession getting worse
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Republicans Are Resistant to Obama’s Stimulus Plan
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Pelosi Says Birth Control Will Help Economy?
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Economist: Feds need to take over banks
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Bernanke Risks ‘Very Unstable’ Market as He Weighs Buying Bonds
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Federal Reserve May Take On Greater Oversight Role
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Obama Economic Adviser Predicts Relief Within Weeks of Stimulus
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Obama aide says bail-out may not be enough
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Business Seeks Stimulus Tax Cuts
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Fed Expected to Keep Rates at Record Lows
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Fed ready to pitch curve ball
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Summers Says TARP to Be ‘Very Different’ Under Obama
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Some Bailout Recipients Upped Lobby Spending in 4Q
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"Bad Bank", Bad News
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Some better plans for fixing the crisis
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Six Errors on the Path to the Financial Crisis
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Dr. Doom predicts more pain in 2009
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China, New US Administration Make Yuan First Row
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Weak economy strangling small businesses
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At Davos, Crisis Culls the Guest List
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Real Estate:

Freddie Mac to Ask for Billions ($35B) More in Funds
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US weighs strategies to stem home foreclosures
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Real estate reality
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Banks to unleash flood of REOs
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Foreclosure Rescue May Not Offer Help You Need
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Con artists take advantage of homeowners in trouble
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Highest Rates in Generation Confront Everyone Without Fed Funds
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Run the Refinancing Numbers, Then Run Them Again
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Crisis creeps to commercial property
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More Houston office space sitting empty
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House-Broke In The Hamptons
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‘Extreme Makeover’ Home Now in Bankruptcy
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Wall Homes the latest builder cursed by 'Extreme Makeover'?
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Who Owns My House?
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Your mortgage might not be what it seems
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The Wide And Lasting Impact Of Quitting A Mortgage
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Office Vacancy Rate In Sugar Land, Tx. Area Approaching 18%
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Dozens of Home Builders Suspend Operations
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Fees gone, host of developers left behind
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Developer of mixed-income housing village files for bankruptcy
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Stuy Town Troubles Deepen
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Wall Homes can use cash
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Survivors of Austin's late-1980s bust tell their tales
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Scaled-down houses spark home-value fears
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Busy Realtors ride rising tide of foreclosures
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Class Accuses Mortgage Companies of Fraud
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Personal Finance:

Bankruptcy as a Step to Solvency
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Surviving in a Financial World With Limits
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Deep in Debt, and Now Deep in Worry
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An Open Challenge To Dust Yourself Off
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Banking:

Bank nationalization by any other name
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IRS says WaMu owes $12.5 billion
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JPMorgan Chase has a WaMu identity crisis
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How to Improve the Bank Rescue
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US Banks May Be the ‘New Utilities,’ Goldman Says
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Citi Raises $12 Billion in Largest Offering of FDIC-Guaranteed Debt
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First Centennial Bank of California Closed, Third Failure This Year
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Cap One's Q4 Charge-Off Rate Jumps To 7.08%
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More than $1B in Q4 Loss Provisions, Write-Downs at Sun Trust
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Inside a Washington State Bank’s ‘Death Spiral’
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Some Banks Bailing on Bailout
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Regional Banks Reject TARP Funding
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Bank Woes: Worse and Worrisome
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Senior financial adviser accused in bank robbery
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How Citigroup Unraveled Under Geithner's Watch
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Price Paid for Merrill Is Rising
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BofA had role in Merrill bonuses
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The Deeper Truth About John Thain's Ouster From BofA
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Cuomo may take look at Merrill Lynch bonuses
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Lynched at Merrill
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Lawsuits could push Bank of America CEO out
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BNP Paribas sees Q4 loss of euro1.4 billion
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Motorcycles:

Harley Announces Job Cuts as Profit Slides
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Company Death Watch: Harley-Davidson
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Carpet:

Sudden shift in fortunes for Propex
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Finance:

Venture Capital Investments Fall 33 Percent in 4Q
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USDA accepting applications for rural loans and grants
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Debt Collection:

Collection agency threatens to take debtors' children away
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Ill. AG sues payday loan collection agency
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Non-Profits:

Credit Crisis Is Leaving Charities Low on Cash
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Student Debt:

College Financial Aid System Facing Stiff Test
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Tech:

Qimonda Insolvency Won’t Resolve Memory-Chip Glut
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Chemicals:

Lawsuit doubts LyondellBasell
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Chemical industry having a severe reaction
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Creditors choose advisers to retrieve $26bn at LyondellBasell
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Advertising:

Google Reports 18 Percent Leap in Q4 Revenues
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Food/Drink:

Ramsay's Goose Getting Cooked
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Wrangell Seafoods files for bankruptcy
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Applebee's closures caught workers by surprise
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Creditors, trustee impatient with USA Springs
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Software:

Software giant's shares plunge to 11-year low on surprise news
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Sovereign Debt:

US headed for bankruptcy
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BlackRock Buys Spanish Bonds on ‘Ridiculous’ Spreads
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Politics:

Tax woes may dog Geithner, even after confirmation
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Mining:

Mining industry faces woes worldwide
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Fitness:

Sweating out the slump
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Private Equity:

Cerberus forced to take own medicine
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The number of private equity portfolio companies that have crashed and sometimes burned keeps mounting.
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Tax:

Advisor pleads guilty in E&Y tax shelter case
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UBS Faces Pressure Over Tax Case
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Executive Compensation:

Geithner mulls capping exec pay tax deduction—for all U.S. companies
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Academia:

Helping Homeowners: Modification of Mortgages in Bankruptcy
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Moving Toward a Federal Law of Corporate Governance in Bankruptcy
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Equitable Mootness in Bankruptcy
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Discharge in Bankruptcy
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Distressed Investing:

From defense to offense
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Saybrook's Jonathan Rosenthal on distressed investing
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Packaging:

Smurfit-Stone, Cardboard Maker, Files for Bankruptcy
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M&A:

M&A Writedowns Led by Alcatel May Total $214 Billion
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Buses:

Motor Coach scores legal victory in reorganization plan
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Ratings:

S&P cites liquidation risks
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Construction:

Caterpillar Profit Declines as Construction Demand Slows
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Golf:

Heatherwood Country Club files Chapter 11 bankruptcy
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Greeting Cards:

Recycled Paper wins final DIP
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Celebs:

Vick Sues Former Financial Aide for $2 Million, Documents Say
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R'N'B Mega-Stars Fall Victim To Cash Crunch
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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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Weird News
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Bankruptcy Jobs:

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

Will Judges Rewrite America's Mortgages?
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Bankruptcy opponents' lobbying expenses
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Bankruptcy Modification and the Emperor's New Clothes
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Saginaw autoworker highlights fight over mortgages, bankruptcy
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Are you shovel-ready for a cramdown?
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Fight building over judges redoing mortgages
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The case for including bankruptcy reform in the stimulus package
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Mortgage Cramdown--Layering On Complexity
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Cramdown and Future Mortgage Credit Costs: Evidence and Theory
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Cram-Downs Will Drive MBS Downgrades, Analysts Say
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Judiciary Committee set to Markup H.R. 200 Bankruptcy Mortgage Modification Bill
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Foreclosure debate shifts to bankruptcy court
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Newspapers:

Bankruptcy Court Review of Cubs Team Sale Likely
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Tribune Co. sale of Chicago Cubs is still a game of wait and see
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What Does Carlos Slim Want With the NY Times?
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Is the New York Times Finding Its Way Out of Peril?
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Black and white and red all over
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Media struggle to reinvent business models to survive
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A free press needs to make a profit
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Exciting models for the future - but will they pay?
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France Expands Its Financial Support for Newspapers
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Autos:

Fiat's offer for Chrysler is a nonstarter
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US car industry should be allowed to fail
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Chrysler exec sees 'viable' company by spring
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So Who Owns Chrysler Now?
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Cash Strapped Fiat Dating Others Besides Chrysler?
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Chrysler Eliminates Jobs Bank for Now
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Fiat Says "Buon Giorno!" to Chrysler
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Chrysler May Have Fiat-Based Car in Less Than 2 Years
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Ford does not need US govt loans: CEO
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Car dealers try to survive as economy, sales drop
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GM Says Tight Credit Is ‘Biggest Issue’ for Dealers
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Press urges Chrysler dealers to keep ordering vehicles
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GM, Ford, Chrysler Lost About 988 Auto Dealers During 2008
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Towns Bail Out Auto Dealerships
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Chrysler Asks Dealers for Concessions to Help Meet Loan Plan
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As Car Owners Make Do, O'Reilly Automotive Could Jump 50 Pct
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Recession hits DIY auto repair
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Ten Hard Questions Facing the 'Car Czar'
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Buyers and sellers skeptical at auto show
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Car parts sector looks for $10bn bail-out
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Bankruptcy fears grip US auto-parts firms
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AutoNation’s Mike Jackson Calls New Incentives ‘Dangerous’
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Nissan chief Ghosn: Auto makers in defensive mode
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Toyota’s Japan Output May Fall to 3 Million Units
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UK’s Mandelson to Meet Automakers to Discuss Aid Package
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Obituaries:

F. Rodney Bernard Jr.
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Oil/Gas:

More layoffs, write-downs expected in energy industry
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Oil Falls From Two-Week High in New York on Demand Concerns
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Oil Back Over $46 Even as US Sees Deeper Recession
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Judge confirms PRB plan
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Halliburton Profit Falls on Oil’s Plunge, KBR Case
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Whether he's known as a boardroom brawler or maybe the savior of SemGroup LP, John Catsimatidis doesn't mind his reputation as a man of his convictions or contradictions
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Catsimatidis enlists help for SemGroup
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Ex-Semco treasurer is subpoenaed
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Health Care:

Hospital workers plan rally; hearing set for Tuesday
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Hospitals brace for economic hardship
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Locals Rally To Save Two Queens Hospitals
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$6 million in state cash for Caritas payroll
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Hospitals as charities and businesses
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Senate panel to consider 9-month COBRA subsidy
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Insurance:

AIG finds its Asian assets to be a tough sell
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ING Cuts 7,000 Jobs, Replaces Chief Tilmant, After Second Loss
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London-listed insurer provides fresh evidence premiums will climb
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Nebraska Sets Hearing into Grand Island Insurance, Lost $100 Million
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Accounting:

2 Price Waterhouse employees arrested in India
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PCAOB to Auditors: Focus on the CFO
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Forensic experts called on in downturn
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Role of bank auditors under spotlight
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Landscaping:

Permalife, Rubber Mulch Maker, Files for Bankruptcy
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UK:

Minister Says UK Banks Came Close to Collapse
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Blanchflower Says UK Rates Should Be Near Zero
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UK Gilts Advance on Speculation BOE Will Lower Rates to Zero
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British economy is on the brink
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Is Gordon Brown starting to panic about the recession?
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Gordon Brown warns economic pessimists
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Pound’s Plunge May Push Brown Into Moves That Hurt Predecessors
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UK House Prices Fell Annual 9.4% in January
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Debt Collectors 'Getting Heavy'
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Empire Direct in Administration - Update
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Men are more than twice as likely as women to go bust
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Lenders put squeeze on social housing
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Wolseley Slumps After Pound Decline Adds to Debt Covenant Woes
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More big companies consider UK tax exodus
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Steel Maker Corus to Cut 3,500 Jobs
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Administrators to close 33 Land of Leather stores
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British consumers pared debts further in Dec
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Barclays Says It Won’t Need More Capital
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______________

EU:

Once a Boon, Euro Now Burdens Some Nations
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In Europe, Moody's expects almost uniformly negative pressure on ratings, with more severe consequences for those on the low end of the rating scale
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Britain and Spain Show More Signs of a Slowdown
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Israel:

Israel Revises Forecast to Recession After Gaza War
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Canada:

Proposed Changes To The Bankruptcy And Insolvency Act
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Source fields bids for Canadian stores
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Iconic names salvaged from recession casualties
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China:

China Jittery About Obama Amid Signs of Harder Line
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Iceland:

Icelandic government becomes first to be brought down by credit crunch
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Icelanders flee country's woes and seek work abroad
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Ireland:

Unethical? What happened in that bank is criminal
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Middle East:

Kingdom Had reported $8.3B loss
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Prince Alwaleed claims profit after review
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China:

Even College-Educated Chinese Feel Job Pinch
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China to train jobless graduates as crisis bites
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Australia:

Australia May Cut Interest Rates Again
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India:

India Detains 2 Accountants for Satyam Probe
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Satyam's search for truth
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Satyam effect: Directors of 70 firms exit
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Satyam And The Recession
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India’s Economy May Grow at Slowest Pace Since 2003
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New Zealand:

New Zealand Services Industry Contracted for a Ninth Month
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Bahamas:

Bahamas Resort Lays Off 181 as Crisis Cuts Tourism
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Hong Kong:

As a new year begins, the party's over in Hong Kong
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South Africa:

Cash crisis hits Golden Arrow
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Norway:

Norway Cuts GDP Outlook, Raises Spending to Boost Employment
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______________

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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).