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Apr 27, 2010

No secrets in asset valuation: Lehman former executive

NEW YORK (Reuters) – There were no secrets kept by those who scrambled to value Lehman Brothers <LEHMQ.PK> assets in the tumultuous hours before the collapsing U.S. investment firm sold its core U.S. brokerage to British bank Barclays Plc <BARC.L> in 2008, Lehman’s former president testified on Tuesday.

In a continuing trial over whether Barclays received an improper $11.2 billion windfall from its takeover of Lehman assets, former Lehman chief operating officer and president Herbert “Bart” McDade said in a response to a question that there was no effort to keep anything secret or private about the valuation process, and no effort to understate the assets.

Apr 27, 2010

Lehman former exec: no secrets in asset valuation

NEW YORK (Reuters) – There were no secrets kept by those who scrambled to value Lehman Brothers assets in the tumultuous hours before the collapsing U.S. investment firm sold its core U.S. brokerage to British bank Barclays Plc in 2008, Lehman’s former president testified on Tuesday.

In a continuing trial over whether Barclays received an improper $11.2 billion windfall from its takeover of Lehman assets, former Lehman chief operating officer and president Herbert “Bart” McDade said in a response to a question that there was no effort to keep anything secret or private about the valuation process, and no effort to understate the assets.

Apr 7, 2010

Smurfit equity holders object to reorg plan

NEW YORK, April 7 (Reuters) – Equity holders for bankrupt
Smurfit Stone Container Corp <SSCCQ.PK> object to the packaging
maker’s plan of reorganization, saying it could rob
shareholders of proceeds they might otherwise share with
creditors, according to court documents.

Bankruptcy Judge Brendan Shannon approved the company’s
disclosure statement in January, allowing Smurfit Stone to
solicit votes in favor of its plan.

Apr 6, 2010

Loehmann’s says fulfilling financial obligations

NEW YORK, April 6 (Reuters) – Off-price clothing chain
Loehmann’s said on Tuesday it was fulfilling its financial
obligations in response to new questions about its ability to
keep its operations afloat.

Loehmann’s, owned by Dubai investment group Istithmar,
denied a report in the New York Post on Tuesday that it had
missed a $6 million interest payment on its debt last week. But
a source briefed on the situation said the store chain had
delayed payments to CIT in order to make the interest payment.

Mar 30, 2010

Companies sell junk bonds to fund bankruptcy exit

NEW YORK (Reuters) – High-yield bonds may be “junk” but they can be golden for bankrupt companies seeking cash to fund their exit from bankruptcy and pay down debt.

Reader’s Digest Association Inc and chemicals maker Lyondell Chemical Co <ACCEIN.UL> are two formerly bankrupt companies that have tapped the high-yield market to benefit from ravenous demand from investors for higher interest payments. There will likely be more to come.

Mar 22, 2010

Rushed bankruptcy exits can hurt credit quality-S&P

NEW YORK, March 22 (Reuters) – More U.S. companies are
speeding through bankruptcy court, but that rush can backfire,
ratings agency Standard & Poor’s said in a recent report.

In increasing numbers, companies are turning to so-called
prepackaged or prearranged bankruptcies, in which a majority of
creditors sign off on a restructuring plan before the company
files its Chapter 11 petition.

Mar 9, 2010

Lyondell restructuring plan includes Apollo role

MUMBAI/NEW YORK, March 8 (Reuters) – LyondellBasell
[ACCEIN.UL] filed a restructuring plan on Monday, rejecting a
takeover bid from India’s Reliance Industries Ltd <RELI.BO> in
favor of commitments from investors, including Apollo
Management LP [APOLO.UL] and Access Industries, to help the
chemicals maker exit bankruptcy.

Lyondell filed for bankruptcy more than a year ago, hobbled
by billions in debt, a sharp increase in oil prices and a
decline in demand for its polymers and chemicals due to the
global economic crisis.

Mar 2, 2010

Business bankruptcies rise again in February

NEW YORK, March 2 (Reuters) – U.S. business bankruptcies
rose again in last month, marking the fifth-straight February
that such filings have increased, according to a bankruptcy
data provider on Tuesday.

Companies from a range of industries, including video
rental chain Movie Gallery Inc <MVGRQ.PK>, radio network Air
America and luxury ski resort developer East West Resort
Development V LP LLLP, were among the 6,557 businesses that
filed for relief from creditors in February, according to
Automated Access to Court Electronic Records (AACER), a
database of U.S. bankruptcy statistics.

Feb 23, 2010

Tavern On The Green creditors, city face off over name

NEW YORK (Reuters) – New York City’s claim to the name of the landmark Central Park restaurant Tavern on the Green has caused crippling delays and left some creditors with little chance of getting their money, the bankrupt restaurant’s unsecured creditors committee said.

The committee’s comments came in court documents that asked a judge to liquidate the company that owns the once-vaunted restaurant under Chapter 7 of U.S. Bankruptcy Code. The company originally sought to reorganize under a Chapter 11 filing.

Feb 22, 2010

Reader’s Digest emerges from bankruptcy

NEW YORK, Feb 22 (Reuters) – Magazine and website publisher
Reader’s Digest Association Inc emerged from bankruptcy after
cutting debt by 75 percent, the company said on Monday.

Reader’s Digest, which filed for Chapter 11 protection from
creditors in August, comes out of bankruptcy with $525 million
in exit financing and a new board of directors that includes
Fredric Reynolds, former chief financial officer of CBS Corp
<CBS.N>.

    • About Chelsea

      "Chelsea Emery joined Reuters in 2001. She wrote the daily stock market story during the dot.com era. She then moved to the aerospace desk to follow defense contractors during the Iraq war. When the U.S. economy began to crumble in 2008, Emery reported on corporate bankruptcy and restructuring for companies including Lehman Brothers and General Motors. While currently an editor, Emery continues to write chef and author profiles for the Reuters Life! wire. Emery is originally from Oregon. She has lived in Japan, Ireland and Hong Kong. She speaks Japanese and Spanish."
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