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    What is happening to AIG?
    2009-03-02

    This morning, March 2, 2009, American International Group, Inc. ("AIG") announced a loss of $61.7 billion for the fourth quarter of 2008, a total net loss for 2008 of $99.29 billion, and a major restructuring of its operations, including a new federal infusion of $30 billion, forgiveness of certain debts, and relaxation of prior bailout terms. For comparison purposes, all insured losses for all insurance companies (not just AIG) relating to Hurricane Katrina are estimated at slightly more than $40 billion.

    Filed under:
    USA, Insolvency & Restructuring, Insurance, Reed Smith LLP, Bond market, Bankruptcy, Debt, Bailout, Holding company, Subsidiary, Preferred stock, Casualty insurance, Mortgage-backed security, US Department of the Treasury, American International Group, Federal Reserve (USA), MetLife, Moody's Investors Service
    Authors:
    Ann V. Kramer , Paul Walker-Bright , Timothy P. Law
    Location:
    USA
    Firm:
    Reed Smith LLP
    House delays vote on mortgage relief legislation
    2009-02-27

    Yesterday afternoon, the House delayed a vote on H.R. 1106, “Helping Families Save Their Homes Act of 2009” (the “Act”) after a little over an hour of debate, amidst unexpected opposition from some Democrats.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Real Estate, Alston & Bird LLP, Bankruptcy, Debtor, Fraud, Mortgage loan, Foreclosure, Deposit insurance, US Department of Justice, Federal Deposit Insurance Corporation (USA), Government Accountability Office, US House of Representatives, Congressional Budget Office, Federal Housing Administration, US Secretary of the Treasury, United States bankruptcy court
    Location:
    USA
    Firm:
    Alston & Bird LLP
    New bankruptcy cram down and foreclosure prevention legislation introduced
    2009-02-26

    This week, Representative John Conyers introduced the “Helping Families Save Their Homes Act of 2009” (H.R. 1106) (the “Act”), which has been circulated in advance of a vote by the House of Representatives anticipated as early as today. Additional amendments have been offered to the bill, but it is unclear which, if any, will be incorporated into the final text. It is not expected that the Senate will consider its version of the bill until mid-March.

    Filed under:
    USA, Insolvency & Restructuring, Securitization & Structured Finance, Cadwalader Wickersham & Taft LLP, Bankruptcy, Debtor, Unsecured debt, Collateral (finance), Mortgage loan, Foreclosure, Bond credit rating, Mortgage-backed security, Pro rata, US House of Representatives, US Department of Veterans Affairs, United States bankruptcy court
    Location:
    USA
    Firm:
    Cadwalader Wickersham & Taft LLP
    Recent significant commercial bankruptcy filings
    2009-02-24

    The following is a list of some recent larger U.S. bankruptcy filings in various industries. To the extent you are a creditor to any of these debtors, or other entities which may have filed for bankruptcy protection, you as a creditor are entitled to certain protections under the Bankruptcy Code.  

    ALUMINIUM

    Aleris International U.S. operations file under Chapter 11; DIP financing approved.  

    AUTOMOTIVE  

    Court approves Key Plastics’ joint plan; Michigan company emerges from Chapter 11.  

    Filed under:
    USA, Insolvency & Restructuring, Masuda Funai Eifert & Mitchell Ltd, Bankruptcy, Debtor, Unsecured debt, Video game, Subsidiary, Title 11 of the US Code, United States bankruptcy court
    Location:
    USA
    Firm:
    Masuda Funai Eifert & Mitchell Ltd
    Fourth Circuit reverses bankruptcy court's narrow reading of "swap agreements"
    2009-02-18

    The Fourth Circuit’s reversal of the bankruptcy court’s narrow reading of swap agreement clarifies the nature of agreements entitled to broad protections under the Bankruptcy Code, but until the decision is fully implemented on remand, swap participants will bear increased risk in hedging transactions.

    Filed under:
    USA, Derivatives, Insolvency & Restructuring, Litigation, McDermott Will & Emery, Bankruptcy, Natural gas, Swap (finance), Commodity, Remand (court procedure), US Congress, DuPont, International Swaps and Derivatives Association, Title 11 of the US Code, Trustee, United States bankruptcy court, Fourth Circuit
    Location:
    USA
    Firm:
    McDermott Will & Emery
    GM and Chrysler submit restructuring plans and request additional government assistance
    2009-02-18

    As required by the terms of the emergency assistance provided by Treasury last December, General Motors Corp.

    Filed under:
    USA, Insolvency & Restructuring, Alston & Bird LLP, Bankruptcy, Debtor, Accounts receivable, EBITDA, US Federal Government, US Department of Energy, United Automobile Workers, General Motors, European Investment Bank, Chrysler
    Location:
    USA
    Firm:
    Alston & Bird LLP
    Recent significant commercial bankruptcy filings
    2009-02-17

    The following is a list of some recent larger U.S. bankruptcy filings in various industries. To the extent you are a creditor to any of these debtors, or other entities which may have filed for bankruptcy protection, you as a creditor are entitled to certain protections under the Bankruptcy Code.  

    AUTOMOTIVE

    Auto parts maker Contech U.S., LLC, subsidiaries file for Chapter 11 protection in Michigan.  

    Fluid Routing Solutions, Inc., subsidiaries file Chapter 11 in Delaware.  

    GROCERY STORES

    Filed under:
    USA, Insolvency & Restructuring, Masuda Funai Eifert & Mitchell Ltd, Bankruptcy, Debtor, Subsidiary, Title 11 of the US Code
    Location:
    USA
    Firm:
    Masuda Funai Eifert & Mitchell Ltd
    GM auditor opinion expresses doubts about "going concern"
    2009-03-07

    On Thursday, General Motors Corporation (GM) filed its Annual Report on Form 10-K with the Securities and Exchange Commission which notably included an opinion of its auditors on its financial statements in which the auditors stated that GM’s “recurring losses from operations, stockholders’ deficit, and inabili

    Filed under:
    USA, Insolvency & Restructuring, Alston & Bird LLP, Bankruptcy, Shareholder, Audit, Cashflow, Form 10-K, Subsidiary, US Securities and Exchange Commission, European Commission, US Congress, General Motors, Chrysler
    Authors:
    Tara Castillo
    Location:
    USA
    Firm:
    Alston & Bird LLP
    Hainan Airlines settlement to result in full payment of claims in Dornier Aviation liquidation
    2009-03-06

    When H. Jason Gold was appointed liquidating trustee for the bankruptcy estate of Dornier Aviation (North America), Inc., (DANA) in early 2003, creditors were expected to receive as little as three cents per claim dollar. Despite these daunting prospects, Mr.

    Filed under:
    USA, Virginia, Aviation, Insolvency & Restructuring, Litigation, Wiley Rein LLP, Bankruptcy, Fraud, Condominium, Liquidation, Digital television, Trustee, United States bankruptcy court, US District Court for Eastern District of Virginia
    Location:
    USA
    Firm:
    Wiley Rein LLP
    House passes bankruptcy cramdown legislation: significant upheaval in mortgage foreclosure rights
    2009-03-06

    For the first time, individuals filing for bankruptcy protection may soon be able to reduce principal and interest on home mortgage obligations and prevent enforcement of certain mortgages even after entry of a foreclosure judgment.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Jorden Burt LLP, Bankruptcy, Debtor, Debt, Mortgage loan, Foreclosure, Secured loan, Mortgage Bankers Association, Truth in Lending Act 1968 (USA), United States bankruptcy court
    Authors:
    Elizabeth Bohn
    Location:
    USA
    Firm:
    Jorden Burt LLP

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