United States

Chemtura Corp. has struck a deal to avoid bankruptcy-court litigation over claims tied to the pension plan covering hundreds of its United Kingdom workers, which faces a funding deficit of more than $150 million, Dow Jones Daily Bankruptcy Review reported. The maker of specialty chemicals, agrochemicals and consumer products, which emerged from Chapter 11 protection last week, said the deal preserves its right to dispute the pension claims outside of bankruptcy court, which it has sought to do for months.

A decision in proceedings taken by a US bankruptcy trustee involving Anglo Irish Bank chief executive David Drumm was adjourned yesterday to allow the judge time to consider matters, the Irish Times reported. Ms Justice Elizabeth Dunne reserved her decision on an application on behalf of Massachusetts trustee Kathleen Dwyer for an “order in aid” from the High Court to assist her in administering Mr Drumm’s bankruptcy. The judge said she needed time to consider the case. Mr Drumm filed for bankruptcy in Massachusetts on October 14th.

China's biggest auto maker is close to finalizing a plan to buy a stake in General Motors Co., which is preparing for an initial public offering next week, according to people familiar with the discussions, Dow Jones Daily Bankruptcy Review reported. SAIC Motor Corp., which has built cars with GM in China since the 1990s, is among foreign entities that will become part owners of GM when the auto maker returns to the public markets, these people said. A final decision could come within the next couple of days.

Lehman Brothers Holdings Inc. is seeking court approval to sell its Brazil investment business, Libro Companhia Securitizadora de Creditos Financeiros, to a firm called Jive Investments Holding Ltd., Dow Jones Daily Bankruptcy Review reported. Jive, which is based in the British Virgin Islands, will buy Lehman's equity stake and notes in Libro, which maintains portfolios of fixed income, distressed and loan assets. The sale price is nearly $15.9 million, after Jive outbid an unidentified competitor. Lehman is asking Judge James Peck of the U.S.

The London-based administrator for Bahrain's Awal Bank BSC said it needs more time to talk with creditors before determining whether to continue the Chapter 11 case it filed last month with the U.S. Bankruptcy Court in Manhattan, Dow Jones Daily Bankruptcy Review reported. In court papers filed in New York Thursday, Awal asked Judge Allan L. Gropper for an extension to file financial statements required under the U.S. bankruptcy law. The bank has so far been hesitant to publicly disclose specifics on its finances.

ECB President Jean-Claude Trichet declined to inject new stimulus into the euro zone despite signs of fragility in the currency bloc, further distancing the European Central Bank from other big central banks such as the Federal Reserve that are taking aggressive action to safeguard growth, The Wall Street Journal reported. Mr. Trichet provided some verbal support to European trouble spots—such as Ireland, Greece and Portugal—that face crippling borrowing costs, saying that despite three weeks without purchases, the ECB's government-bond buying program remains active.

Affiliates of Credit Suisse Group and Willowridge Partners are buying Nortel Networks Corp.'s stakes in 20 venture-capital funds, according to a court filing Thursday, Dow Jones Daily Bankruptcy Review reported. Affiliates of Credit Suisse's alternative-investments group and Willowridge won the bidding for Nortel's venture-capital investments with an offer of nearly $23 million, court papers say. Because the venture-capital interests were already exposed to a competitive sale process, Nortel is asking the U.S.

The Swiss bank that leads a lender group owed $300 million by Tamarack Resort says liquidating the central Idaho vacation getaway is the best way to recoup a fraction of their investment, the Associated Press reported. Credit Suisse Group asked U.S. Bankruptcy Judge Terry Myers this week to set the stage for the final sale of Tamarack assets, either under a U.S. trustee or a state court judge's supervision. Tamarack owner Jean-Pierre Boespflug, trying desperately to arrange a sale, said Wednesday he plans to oppose the motion.

Anglo Irish Bank’s former chief executive David Drumm has until Friday next to file a statement of his assets and liabilities in his bankruptcy proceedings in the US, the Commercial Court in Dublin heard yesterday, The Irish Times reported. Mr Justice Peter Kelly adjourned Anglo’s actions against Mr Drumm and his wife as a result of Mr Drumm’s unexpected decision earlier this month to file for voluntary bankruptcy in the US.

The muddy big 1.33-hectare hole that is the failed $250 million Soho Square development in Auckland's Ponsonby could soon be alive with construction crews, with first mortgagee United States hedge fund Fortress cleared by the High Court to buy the site, Stuff.co.nz reported on a Dominion Post story.