bankruptcy News

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 …

Bankrupt Dewey Law Firm Pitches New Deal to Ex-Partners

Bankrupt law firm Dewey & LeBoeuf revised its settlement offer to former partners on Thursday, dropping its potential recovery to $90.4 million from $103.6 million. The estate is seeking the money from the former partners in exchange for releasing the …

Judge Seeks More Details on Dewey Law Firm’s Bonuses

A judge on Wednesday demanded more detail on a plan by Dewey & LeBoeuf to pay out as much as $450,000 in performance-based bonuses to employees helping to wind down the bankrupt law firm’s operations. Judge Martin Glenn said he …

AMR Sues Retired Workers Over Health Benefits

Dallas-based American Airlines and its parent company are suing to stop providing health care and life insurance benefits to current retirees. AMR Corp. and American filed the lawsuit on July 6 as part of their bankruptcy case in federal court …