A U.S. bankruptcy-court judge postponed his ruling Wednesday on an application seeking to make the controversial Canadian restructuring plan for C$32 billion in toxic asset-backed commercial paper enforceable in the U.S., Dow Jones reported. Ernst & Young, which was appointed monitor by an Ontario court in March, petitioned the U.S. Bankruptcy Court for the southern district of New York to import, in its entirety, the restructuring plan under chapter 15 of the U.S. bankruptcy code. U.S.
The International Banking Corp., a Bahrain-based provider of commercial loans, filed a Chapter 15 bankruptcy petition, seeking protection from U.S. creditors, The China Post reported. TIBC had assets of US$4 billion and liabilities of US$2.6 billion as of July 31, according to documents filed in Manhattan court Monday. TIBC is under administration proceedings in Bahrain, with Trowers & Hamlins Services Ltd. acting as administrator, and Zolfo Cooper hired for restructuring work.
A federal judge has ruled that a London-based fur broker that filed the equivalent of bankruptcy in the U.K. can't stay a bid-rigging suit in the U.S. without first petitioning for recognition of the U.K. insolvency proceedings under Chapter 15, Bankruptcy Law360 reported. Read more. (Subscription required.)
W.C. Wood Corp., which owned a freezer factory in Ottawa, announced it couldn't find a buyer in time to avoid liquidating the entire company, Industrial Laser Solutions reported. A Canadian court placed the company in receivership, leaving the Ottawa plant's remaining 150 employees without a job. The company had been looking for a buyer since filing a Companies Creditors Arrangement Act in Canada in May. It received Chapter 15 protection in the United States in June.
Daewoo Logistics has sought Chapter 15 bankruptcy protection in New York, to avert what the court filing describes as a “race to the courthouse” over Daewoo’s unpaid bills while its main bankruptcy case unfolds in South Korea. The petition was sparked by a raft of Rule B attachment actions taken against Daewoo, Lloyd’s List reported. Read more. (Subscription required.)
Lehman Brothers Holdings Inc.'s Bermuda-based life insurance unit, Lehman Re, filed for bankruptcy protection, citing alleged shortfalls on its reinsurance obligations and lawsuits against it in the US, The Royal Gazette reported. The petition for Chapter 15 bankruptcy in Manhattan court on Thursday listed more than $1 billion in debts and as much as $1 billion in assets. Under Chapter 15, companies can win protection from US lawsuits and organise US creditors to help with the company's main bankruptcy in another country.
Fraser Papers Inc., a Toronto-based forestry company that's restructuring under bankruptcy protection from creditors, said its net loss for the second quarter narrowed by nearly half as the company booked a currency related one-time gain, The Canadian Press reported. Fraser said it lost US$8 million or 36 cents a share for the quarter ended June 30, down from US$15.6 million or 31 cents a share for the same 2008 period. During the second quarter, Fraser booked a net gain of $12.5 million from unwinding its foreign exchange hedging program.
Fraser Papers Inc. and its subsidiaries have initiated a court-supervised restructuring under Canada’s Companies' Creditors Arrangement Act and will seek similar relief pursuant to Chapter 15 of the U.S. Bankruptcy Code, Dow Jones Newswires reported. Fraser Papers, Toronto, said PricewaterhouseCoopers Inc. was appointed by the Ontario Superior Court of Justice as Monitor to assist the company through its restructuring process.
One of Putnam County's largest employers is seeking protection from its creditors in a Canadian court, LimaOhio.com reported. W.C. Wood Corp., a Canadian manufacturer with a plant in Ottawa, filed a Companies' Creditors Arrangement Act application for protection in the Canadian courts. It has also filed a Chapter 15 application, which assures that any action stemming from the CCAA would also apply to the company's U.S. plant. The action will allow W.C. Wood to hold off creditors while it works on a restructuring plan.
Paper International Inc., a U.S. subsidiary of bankrupt Mexican newsprint maker Corporacion Durango SAB, has received court approval for its disclosure statement and plan support agreement, paving the way for creditors to vote on a reorganization plan by June 8, Bankruptcy Law360 reported. If the creditors approve the proposal, the company will file a reorganization plan in Mexico, where Durango is undergoing bankruptcy proceedings under the country's Mexican Business Reorganization Act, Marinuzzi said. The plans, if approved, would go into effect simultaneously.