There is something for everyone in the suitably named Worker, Homeownership, and Business Assistance Act of 2009–including potential recoveries for unsecured creditors of a debtor reorganizing or liquidating pursuant to the United States Bankruptcy Code.

Background

On Sunday, Citadel Broadcasting, the nation’s third largest radio station operator, filed for Chapter 11 bankruptcy protection after reaching a pre-negotiated restructuring agreement with creditors that hold 60% of the company’s secured debt. Citadel owns and operates 224 AM and FM radio stations that include KABC-AM in Los Angeles, WLS-AM in Chicago, and WPLJ-FM in New York City. New York’s WABC-AM, which is owned by Citadel, is the home of ABC Radio News and also hosts several syndicated radio personalities, including Don Imus and Rush Limbaugh. In documents filed with the U.S.

The Supreme Court declines to review a circuit court decision in Oneida Ltd., which held that a debtor cannot discharge in bankruptcy, as a prepetition claim, premiums it owes to the Pension Benefit Guaranty Corporation in connection with the termination of a pension plan.

Introduction

Hedge funds and other investors in debt or equity securities often form unofficial “ad hoc” committees through which they actively participate in chapter 11 cases. Recent decisions affirm that such ad hoc committees must comply with the disclosure requirements of Bankruptcy Rule 2019 – including the nature and amounts of claims or interests held by members and other details. What about a “group” that says it’s a lot less than an ad hoc committee and therefore, outside the Rule?

In a recent decision from the United States Bankruptcy Court for the District of Delaware, Judge Mary Walrath has required that members of an informal committee of noteholders comply with expansive disclosure requirements beyond the standard established for official committees. In a written opinion issued on December 2, 2009 in the case of In re Washington Mutual, Inc., Case No. 08-12229 (MFW), Judge Walrath granted a motion to require an informal group of noteholders to comply with Rule 2019 of the Federal Rules of Bankruptcy Procedure.

Intercreditor Agreement in ION Media requires Second Lien Lenders “Be Silent” — precludes challenge to validity of liens; deprives junior creditors of standing to object to plan of reorganization.

Charter Communications stepped closer to emerging from Chapter 11 protection as a New York bankruptcy judge approved the company’s pre-arranged plan of reorganization on Tuesday. Based in St. Louis, Charter ranks as the nation’s fourth largest cable system operator with 4.9 million subscribers across 27 states. Straining under a debt load of $21.7 billion, Charter filed for bankruptcy protection in March after bondholders in possession of $8 billion of the company’s debt agreed to exchange their debt for equity in the reorganized entity. The plan endorsed by U.S.

Governors of three New England states have vowed to monitor Chapter 11 proceedings launched on Monday by Fairpoint Communications, which paid $2.3 billion last year to acquire New England fixed line telephone infrastructure owned previously by Verizon Communications.

Citing a slowdown in its business caused, in part, by the recent global credit crunch, Sea Launch has filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Based in Long Beach, California, Sea Launch is owned by Boeing (40%) and by foreign partners that include RSC-Energia of Russia, Kvaener ASA of Norway, and SDO Yuzhnoye/PO Yuzhmash of the Ukraine. In addition to operating its seagoing launch platform in the equatorial waters of the Pacific Ocean, the company has started offering landbased launches from the Baikonur Space Center in Kazakhstan.

On August 30, 2008, the United States District Court for the District of Northern Texas issued its ruling on whether Americas Mining Corporation (“AMC”) (and its parent Grupo Mexico) had caused ASARCO LLC (“ASARCO”), a wholly owned subsidiary of Grupo Mexico, to fraudulently transfer stock of Southern Peru Copper Company (“SPCC”) from ASARCO to AMC. The Court determined that AMC was liable for (1) intentional fraudulent transfer, (2) aiding and abetting breach of fiduciary duty under New Jersey law; and (3) civil conspiracy under Arizona law. See ASARCO LLC v.