By Tom Hals
(Reuters) – Tribune Co, the owner of the Los Angeles Times and Chicago Tribune newspapers, suffered a legal defeat on Monday after a judge late Monday rejected its plan to end its three-year stay in bankruptcy.
The judge also rejected a competing plan from the company’s noteholders and but said the company’s plan had stronger creditor backing and could be way out of bankruptcy.
By George Hay and Margaret Doyle
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.
Barclays’ latest numbers add up to a curate’s egg. In a terrible third quarter for investment banks, Barclays did relatively well. But by the end of September, chief executive Bob Diamond had already axed 3,500 posts — 500 more than previously expected for the whole year. That’s inauspicious for rivals.
By Tom Hals and Roberta Rampton
(Reuters) – Beacon Power Corp filed for bankruptcy on Sunday, just a year after the energy storage company received a $43 million loan guarantee from a controversial Department of Energy program.
The bankruptcy comes about two months after Solyndra — a solar panel maker with a $535 million loan guarantee — also filed for Chapter 11, creating a political embarrassment for the administration of President Barack Obama, which has championed the loans as a way to create “green energy” jobs.
Oct 25 (Reuters) – Los Angeles Dodgers owner Frank McCourt
“looted” $190 million from the bankrupt team to fund his lavish
lifestyle, which includes eight homes, according to court
documents filed on Tuesday by Major League Baseball.
The league stepped up its battle to oust McCourt as owner of
the franchise by arguing he was draining the team’s financial
Oct 25 (Reuters) – The judges on Delaware’s prominent
business court are violating the First Amendment of the U.S.
Constitution by holding “secret” hearings, according to a
nonprofit group that sued to unseal the proceedings.
The Delaware Coalition for Open Government Inc sued the
five judges on the state’s Chancery Court to open the court’s
arbitration hearings to the public.
Oct 24 (Reuters) – Debt-laden independent power producer
Dynegy Inc has been discussing with bondholders a plan
to put a subsidiary into bankruptcy after bondholders shunned a
$1.25 billion refinancing, sources told Reuters.
The company has been struggling with a mountain of debt and
its power business has been squeezed by rock-bottom natural gas
, Oct 18 (Reuters) – Executives from
bankrupt Solyndra LLC testified on Tuesday that a flood of
cheap Chinese solar panels kept it from realizing $1.2 billion
in contracts it announced in 2008.
Three years after Solyndra announced those long-term
contracts, its cumulative sales total a mere $330 million,
company executives said in a meeting with creditors.
WILMINGTON, Delaware (Reuters) – A judge declined to appoint a trustee to replace Solyndra’s management who were accused of not answering questions about the bankruptcy of the government-backed solar panel maker.
“It’s clear this case does not rise to the level of failure to disclose that would mandate the appointment of a trustee,” said Delaware bankruptcy judge Mary Walrath.
By Tom Hals
(Reuters) – Pennsylvania blasted Harrisburg’s bankruptcy filing as “brazenly” disregarding state law and the mayor won a day in court Monday in her bid to throw out the City Council’s decision to seek bankruptcy protection.
The Pennsylvania state capital’s smoldering debt crisis spiraled into a battle for political control after Harrisburg filed for Chapter 9 bankruptcy following a 4-3 vote by the City Council on Tuesday.
By Edith Honan and Tom Hals
(Reuters) – Pennsylvania’s capital, Harrisburg, filed for a rare municipal bankruptcy on Wednesday in a desperate bid to resolve its debt crisis, but it now faces a showdown with the state over control of the city.
Harrisburg becomes one of the most-high profile cities to opt for the little-used chapter of the U.S. bankruptcy code, most notably used nearly 20 years ago by Orange County, California. Alabama’s Jefferson County last month settled with its creditors to avoid what would have been the biggest-ever municipal bankruptcy.