Chapter 15 Headlines

The insolvency administrator overseeing the restructuring of a German affiliate of Lehman Brothers Holdings Inc. has petitioned a federal bankruptcy court for protection of the investment firm’s assets in the United States, Bankruptcy Law360 reported. The Frankfurt-based company listed over $1 billion in assets and liabilities. Dr. Michael C.
Mexican paper manufacturer Corporacion Durango SAB, or Codusa, said Wednesday it has signed a debt restructuring agreement with a majority of its creditors that reduces its bond debt by more than half, Dow Jones Newswires reported. Once the restructuring is completed, the current controlling shareholder group will continue, directly or indirectly, to have a majority of Codusa shares, the company said. Codusa said existing and future inter-company debts will be subordinate to the new notes, and won't result in cash payments from the holding company.
Stanford Financial Group’s Antiguan receiver is asking a U.S. federal judge to let it go after assets in the U.S. by putting part of the company into bankruptcy, the Houston Chronicle reported. Nigel Hamilton-Smith, the Antiguan receiver claiming authority over Stanford International Bank in the Caribbean island nation, said in a filing he should have full responsibility over assets and liabilities tied to the bank, including the certificates of deposit that are at the center of claims the company was a massive Ponzi scheme.
Investors who filed to push Bernard Madoff into personal bankruptcy are now seeking to have the bankruptcy case of his business’s U.K. unit, Madoff Securities International Ltd., transferred from Florida to New York, Bloomberg reported. Madoff International filed for Chapter 15 bankruptcy protection in West Palm Beach, Florida, on April 14 and sued Bernard’s brother, Peter Madoff, to recover a $200,000 Aston Martin car, according to court documents. Madoff International listed assets of as much as $500 million and debt of more than $1 billion in its bankruptcy petition.
South Korea's seventh largest shipping line Samsun Logix has filed for Chapter 15 bankruptcy protection in Manhattan, Seatrade Asia reported. Samsun Logix has more than $100 million of assets and debts, the firm said in its filing. A series of firms failing to pay charter hire sent Samsun to the wall. It filed for court receivership in Seoul in February. Established in 1980 as Samsun Shipping Corporation, the firm maintains it was not paid fees worth $40 million by a Swiss company which filed for bankruptcy protection late last year.
A bankruptcy judge on Monday granted emergency relief to Redcorp Ventures Ltd. to protect the Canadian mining company's U.S. assets as the court considers whether to approve the company's petition for Chapter 15 protection, Bankruptcy Law360 reported. Judge Karen A. Overstreet of the U.S. District Court for the Western District of Washington issued an emergency order that grants an automatic stay of proceedings against the Vancouver-based Redcorp and its wholly owned subsidiary Redfern Resources Ltd, which filed for Chapter 15 protection Thursday.
Foundering under $1.2 billion in debts, Brazilian beef exporter Independencia SA has filed for Chapter 15 bankruptcy protection to shield its U.S. bank accounts from creditor actions as the company pursues reorganization at home, Bankruptcy Law360 reported. The petition, filed Friday in the U.S. Bankruptcy Court for the Southern District of New York, says Independencia has commenced restructuring "a crippling debt burden" under Brazilian insolvency law and requires court protection of its U.S. assets.
CPI Plastics Group Ltd., the plastics maker based in Mississauga, Ontario, sought bankruptcy protection in Canada and the U.S., blaming the deepening U.S. recession and rising prices of raw materials, Bloomberg reported. The 37-year-old firm and four of its units were forced into bankruptcy by the Bank of Montreal after CPI’s $3.4 million loss in the fourth quarter violated loan agreements with the bank. CPI, which has a facility in Pleasant Prairie, Wisconsin, has debt of about $54.4 million and estimated assets of less than $100 million, court papers show.
Glitnir Banki HF, the first of three major Icelandic banks to file Chapter 15 petitions following the country's financial crisis, won permission Tuesday to receive bankruptcy protection of its U.S. assets, Bankruptcy Law360 reported. Read more. (Subscription required.)
German reinsurer Global General and Reinsurance Co. Ltd., formerly the sixth largest reinsurance company in the world, has filed for Chapter 15 protection in the U.S., Bankruptcy Law360 reported. The filing indicated liabilities of more than $100 million and assets of more than $100 million. The company has estimated that it has between 50 and 99 creditors. Howard Seif, global chair of Chadbourne & Parke LLP’s bankruptcy and restructuring practice, is commandeering the U.S. proceedings. The U.K.