George's Feed
Sep 13, 2010

Tribune creditors want to pursue Zell over LBO

, Sept 13 (Reuters) – Creditors of Tribune
Co want to sue Sam Zell for his $8 billion leveraged buyout of
the company, which they blame for newspaper publisher’s
bankruptcy, according to court documents filed on Monday.

The official committee of unsecured creditors asked
Delaware’s bankruptcy court to allow it to sue the billionaire
as well as others who had a role in the 2007 buyout, such as
the board of directors, large shareholders and advisers.

Sep 9, 2010

eBay stake in Craigslist restored but no board seat

/SAN FRANCISCO (Reuters) – A judge on Thursday reinstated eBay Inc’s 28.4 percent stake in Craigslist, but allowed the classifieds site to keep eBay off its board.

The mixed ruling in Delaware’s Chancery Court gave no clear victory to either of the companies, whose relationship turned from cozy to competitive and ended up in court in 2008.

Sep 9, 2010

Court allows Dollar Thrifty vote on Hertz deal

, Sept 9 (Reuters) – Car rental company
Dollar Thrifty Group (DTG.N: Quote, Profile, Research, Stock Buzz) was cleared by a Delaware court to
put its agreed $1.1 billion merger with rival Hertz Global
Holdings (HTZ.N: Quote, Profile, Research, Stock Buzz) to a vote by shareholders next week.

In a decision late on Wednesday, Chancery Court Judge Leo
Strine refused to grant an injunction blocking the vote,
scheduled for Sept. 16.

Sep 7, 2010
via Breakingviews

Barclays’ Diamond choice spices up strategy debate

Bob Diamond’s promotion to chief executive of Barclays is no surprise. The driving force behind the UK bank’s investment banking arm was a candidate for the top job back in 2004, and Barclays Capital’s rise since then — it contributed over 80 percent of the group’s pre-tax profit in the first half of 2010 — made him a shoo-in.

The question is what the decision means for Barclays’ future structure. The UK banking commission, which reports next year, is examining whether to demand that lenders separate their retail and wholesale arms. Barclays’ leaders have to consider every possible scenario.

Sep 7, 2010

WaMu examiner requests more time to file report

WILMINGTON, Delaware (Reuters) – The court-appointed examiner investigating the collapse of Washington Mutual Inc said he would need several more weeks to complete his probe, according to court documents.

Joshua Hochberg, who was appointed examiner in July, said on Tuesday he needed to extend the deadline for his final report to November 1 from October 8 as he required “a significant number of additional documents” from JPMorgan Chase & Co, government agencies and others.

Sep 4, 2010

Exclusive: American Apparel in talks with restructuring firm

/SAN FRANCISCO (Reuters) – Hipster brand American Apparel Inc (APP.A: Quote, Profile, Research, Stock Buzz) is in talks to bring in an outside restructuring firm as the manufacturer and retailer struggles to fix its flagging operations, sources told Reuters on Friday.

Lender Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz) pressed American Apparel to hire the firm, a specialist in corporate turnarounds, according to people familiar with the matter. The firm is not being brought in to arrange a bankruptcy, sources said, but to help improve operations and its financial condition.

Sep 3, 2010

Tronox shareholders’ plan opens value fight

, Sept 3 (Reuters) – Shareholders of Tronox
Inc (TRXAQ.PK: Quote, Profile, Research, Stock Buzz) filed a rival reorganization plan, setting up a
battle that will turn on the chemical company’s worth.

The new plan, filed Thursday in Manhattan bankruptcy court,
puts a higher value on the business than the company’s plan,
allowing stockholders to claim a larger recovery. Shareholders
generally only get a recovery in bankruptcy after other
creditors are paid.

Sep 1, 2010

Pitcairn family firm fights takeover with bankruptcy

, Sept 1 (Reuters) – A property management
company that traces its blue-blood lineage to the earliest
existence of PPG Industries Inc and the American Revolution
opted to file for bankruptcy on Wednesday rather than be taken

Pitcairn Properties Holdings Inc, which traces its
corporate family tree back to 19th Century founding of
Pittsburgh Plate Glass Co by John Pitcairn, fled to bankruptcy
court for fear of losing its investments worth hundreds of
millions of dollars.

Sep 1, 2010

FDIC loses closely watched Colonial Bank case

, Sept 1 (Reuters) – The Federal Deposit
Insurance Corp is not entitled to $900 million it demanded from
the parent company of the failed Colonial Bank, in a court
ruling closely watched by other holding companies of failed

The federal bank regulator demanded the money which it said
represented the capital shortfall at Colonial Bank when it was
seized in the biggest bank failure of 2009.

Sep 1, 2010

Mediator will try to bring Tribune out of bankruptcy

, Sept 1 (Reuters) – A U.S. bankruptcy
judge was appointed mediator on Wednesday to broker peace among
Tribune Co’s creditors and find a way out of the media
company’s 20-month stay in Chapter 11.

Delaware Bankruptcy Judge Kevin Gross was charged with
finding a way to resolve legal claims stemming from the
disastrous 2007 leveraged buyout that put real estate developer
Sam Zell in charge of the Chicago Tribune, Los Angeles Times
and numerous broadcasters.

    • About George

      "George Hay writes about the banking and property sectors. He joined from Thomson Financial News, where he was a companies correspondent. Before that he worked at United Business Media, where he was news editor of Building Magazine. He has a first in English Literature from Edinburgh University, and was nominated in two categories at the 2009 Business Journalist of the Year Awards."
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