Help Center

Bankruptcy Headlines

RadioShack Creditors Sue Hedge Fund over Chain’s Collapse

RadioShack Corp., the iconic consumer electronics chain, was driven into bankruptcy because of a takeover scheme by hedge fund Standard General LP, according to a lawsuit by a committee for creditors who say they are owed more than $500 million, Bloomberg News reported yesterday. By delaying actions that might have preserved some of the chain’s value, Standard General allegedly sought to take over RadioShack at the lowest price possible. The creditors say that turmoil at the company last year, including an October loan transaction that paved the way for the hedge fund to win control, led to RadioShack’s February bankruptcy. The lawsuit targets Standard General, its principal investment officer, company lender Wells Fargo Bank and RadioShack’s former top managers, including Joseph Magnacca, the former chief executive.

Moody’s: Kentucky City Claiming Bankruptcy May Not Be Broke

Moody’s Investors Service said that Hillview, Ky., the first city to file for bankruptcy since Detroit, may struggle to prove it’s insolvent and in need of court protection, Bloomberg News reported yesterday. Because of an $11.4 million legal judgment to a local company, Hillview filed for protection Aug. 20. The locality of about 8,000 people has about $13.8 million in debt, compared with revenue of $2.5 million in the 2014 fiscal year. Though the burden seems insurmountable, Hillview under Kentucky law can issue bonds to cover losses in legal judgments and pay off the resolution over the course of a decade, Moody’s analyst Nathan Phelps said Monday in a report. The local company, Truck America Training LLC, has indicated it may fight the city’s bankruptcy by asking that the judge overseeing the case for permission to interview city officials under oath and to gain access to internal city financial documents.

After Losing Apple Deal, GT Advanced to Reduce Workforce by 40 Percent

GT Advanced Technologies Inc., which is trying to emerge from bankruptcy after losing its deal to supply scratch-resistant smartphone screens to Apple Inc., said yesterday that it was reducing its workforce by 40 percent in a bid to cut costs, MarketWatch.com reported yesterday. The company, which had already laid off nearly 700 workers at a former Arizona sapphire-manufacturing facility, said that the further cuts will save it $20 million a year and help it “right size” its costs after exiting chapter 11, according to court papers. A group of GT Advanced bondholders put up $95 million to fund the company’s bankruptcy restructuring. The company is using the cash to fund a revised plan that calls for the ex-Apple supplier to return to its roots of making industrial and solar equipment. A downsized GT Advanced still hopes to exit chapter 11 early next year.

Patriot Coal Cleared to Auction Remaining Assets

A bankruptcy judge cleared Patriot Coal Corp. to sell its remaining assets, including its Federal mining complex in West Virginia, at a September auction, Dow Jones Newswires reported yesterday. Bankruptcy Judge Keith Phillips yesterday said that he would sign off on the Sept. 9 auction. An affiliate of the Virginia Conservation Legacy Fund will lead off the bidding with its offer to take responsibility for $400 million in liabilities — workers' compensation, black lung and environmental — tied to the assets. The auction proposal had received objections from Patriot's unsecured creditors' committee and lender agent Barclays Bank PLC regarding the $5 million breakup fee Patriot sought to offer VCLF should it lose the bidding. However, those were resolved during the hearing with an agreement to require any winning bidder's offer to provide enough cash to cover the fee.

Univita Files for Chapter 7

Univita of Florida, a health company in Miramar, Fla., has filed for bankruptcy after closing abruptly and laying off hundreds of employees a month ago, the Sun Sentinel reported today. The home care product provider is seeking to liquidate its remaining assets under chapter 7. The company ceased operations with between 10,000 and 25,000 creditors, according to a checklist that accompanied more than 1,135 pages of court documents filed in Delaware. The company, which had Medicaid and Medicare contracts in Florida, estimated both its assets and liabilities were worth between $50 million to $100 million. Eleven Univita subsidiaries also filed for chapter 7 bankruptcy on Friday. Read more

For more on healthcare bankruptcies, be sure to pick up a copy of ABI’s Health Care Insolvency Manual, Third Edition

This is the first of three webinars stemming from ABI's recently published bookFraud and Forensics:  Piercing Through the Deception in a Commercial Fraud Case. Each webinar takes an in-depth look at areas of specialty, challenge and reward for forensic accountants and the professionals who work with them in commercial fraud cases. The second and third webinars will be:

  • Fraud and Forensics: The Expert Witness in a Commercial Fraud Case
  • Fraud and Forensics: The Lawyer and Forensic Accountant Working Together

This webinar will highlight important aspects of the investigation phase of a commercial fraud case from the perspective of a forensic accountant. Featuring three authors of the recently published Fraud and Forensics: Piercing the Deception in a Commercial Fraud Case, the presentation will cover different types of commercial fraud and how to detect it, along with the investigative techniques necessary to leverage witness information and the cache of data available on social media outlets. The panelists will also discuss cash-flow analysis, data-collection techniques, and methodologies for creating a database.

October 8, 2015

75 Minutes 1:30-2:45 pm ET

RATES

ABI Member
Webinar Bundle (includes all three webinars plus book): $225
One Webinar Only: $75
One Webinar with Book: $125

Non-Member
Webinar Bundle with Book: $345
One Webinar Only: $195
One Webinar Only with book: $245

SPEAKERS

Kathy Bazoian Phelps, Moderator
Diamond McCarthy LLP
Los Angeles

Gregory S. Hays
Hays Financial Consulting, LLC
Atlanta

Katya Hirose
FTI Consulting, Inc.
Los Angeles

Maryellen K. Sebold
BDO Consulting
Los Angeles

To register for ALL THREE WEBINARS please click here

 

 

 

 

Conference Address

Notice: Attendee information is not meant to be used for mass mailings, invitations, bulk emails, e-mail harvesting or any other commercial purpose. Personal or contact information on this list is intended solely for personal use and should not be duplicated, reproduced or distributed to a third party If you are interested in opting out of inclusion of either printed or online attendee lists, please send an email to meetings@abiworld.org.

Pages