bankruptcy News

Bankrupt Detroit, Bond Insurer Reach Agreement

Detroit and Syncora Guarantee Inc. reached an agreement in their dispute over claims in the city’s $7 billion debt-reduction program that the two sides said may “profoundly alter” the city’s bankruptcy-exit plan. Detroit and Syncora today requested the postponement of …

Detroit Bankruptcy Judge Rejects Insurer Requests

Detroit overcame efforts by bond insurers that might have slowed its plan to exit bankruptcy before the end of the year, while the judge on the case said he was open to taking a bus tour to see what shape …

Bond Insurer Syncora Fighting City’s Plans in Detroit Bankruptcy

Bond insurer Syncora Guarantee Inc has emerged as Detroit, Mich.’s chief nemesis in the city’s historic bankruptcy case and is fighting as if its financial life depends on a decent recovery on its $400 million exposure to the city. Since …

California Diocese Files For Bankruptcy Due to Sex Abuse Payouts

A Roman Catholic diocese in Central California filed for bankruptcy protection on Wednesday after paying out millions of dollars to plaintiffs who made sexual abuse allegations during the past two decades. The Diocese of Stockton, which filed for Chapter 11 …

As Bond Insurers Drop Objections, Detroit Bankruptcy Progresses

Detroit’s path through bankruptcy began to take shape on Dec. 17, with a second bond insurance firm ready to drop its objections to a controversial city financing plan, joining another bond insurer, bondholders and a committee of retired city workers …

Judge Blocks Lawsuits Challenging Detroit Bankruptcy

A federal judge has agreed with Detroit, Mich., and stopped any lawsuits challenging the city’s bankruptcy, declaring his courtroom the exclusive venue for legal action in the largest filing by a local government in U.S. history. The decision by U.S. …

Court: California City May Proceed With Bankruptcy

A U.S. federal judge on Monday approved the city of Stockton’s petition for bankruptcy in a case that sets the stage for a lengthy battle between bondholders and the California pension system. In a case being studied by other cash-strapped …

County May Sue Bankrupt Southern California City

County supervisors have voted to join the long list of San Bernardino, Calif. creditors and may sue the bankrupt city. The city 60 miles east of Los Angeles filed for Chapter 9 bankruptcy protection in August after learning it faced a …

3 Nebraska Insurance Execs Sent to Prison for Investment Scheme

Three people, including two principals of an insurance firm, who were convicted in a fraudulent Nebraska investment scheme have been sentenced to prison and ordered to make restitution of more than $16.6 million. The three were sentenced in U.S. District …

U.S. Judge OKs $71.5M Dewey & LeBouef Bankruptcy Deal

A U.S. bankruptcy judge approved a $71.5 million settlement on Tuesday between former partners of Dewey & LeBoeuf and the estate of the law firm whose demise in May constituted the largest law-firm bankruptcy in U.S. history. The settlement requires …