Vitro’s Troubles Continue

Dec 5 (Reuters) – The United States Bankruptcy Court for the Northern District of Texas ordered that 10 units of Mexican glassmaker Vitro S.A.B. de C.V. (“Vitro”) be put into U.S. bankruptcy, and found that several of them had taken secret steps to prevent creditors from collecting money owed to them. Several U.S. hedge funds, led […]

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Ninth Circuit Limits Bankruptcy Jurisdiction in Fraudulent Conveyance Cases

The Ninth Circuit Court of Appeals recently held that a bankruptcy judge does not have jurisdictional authority to enter a final judgment in a fraudulent conveyance action against a non-claimant to a bankruptcy estate.  See Executive Benefits Insurance Agency v. Arkison (In re Bellingham Insurance Agency, Inc.), No. 11-35162 (9th Cir. Dec. 4, 2012).   Such […]

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Fifth Circuit Rejects Foreign Restructuring Plan

The recent case of In re Vitro S.A.B. de C.V., No 12-10542 (5th Cir. Nov. 28, 2012) involves the recognition and enforcement by a United States Federal Court of a foreign bankruptcy proceeding and foreign plan of reorganization, pursuant to Chapter 15 of the Bankruptcy Code.  An earlier discussion of this case appears in a prior submission entitled […]

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Not Every Fraud is a Ponzi Scheme???

The case of H. Jason Gold v. First Tennessee Bank, N.A. (In re Taneja),  Adversary Case No. 10-1225 (Bankr. E.D. Va. July 30 2012), concerns an elaborate fraud perpetrated by a mortgage broker, Financial Mortgage, Inc. (“FMI”), against various warehouse lenders, and a bankruptcy trustee’s later attempt to recover payments made by the mortgage broker to its innocent lenders as fraudulent conveyances. Facts […]

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Is Hostess Going Out of Business?

Weighed down by debt, management turmoil, rising labor costs and the changing tastes of America, Hostess decided on November 16th that it could no longer restructure its obligations through a chapter 11 bankruptcy and, instead, must  sell its assets and go out of business. This is not the sequence of events that the maker of Twinkies envisioned when it filed […]

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Buffet Decides to Leave the Municipal Bond Market

    A decision by Warren Buffett’s Berkshire Hathaway Inc. to end a large wager on the municipal-bond market is deepening questions from some investors about the risks of buying debt issued by cities, states and other public entities.   The Omaha, Neb., company recently terminated credit-default swaps insuring $8.25 billion of municipal debt. The termination, […]

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