When a runaway Montreal, Maine & Atlantic Railway train hauling 72 tankers of Bakken crude oil derailed and exploded in the majestic town of Lac Megantic, Que., killing 47 people and destroying more than 40 buildings on July 6, 2013, it set in motion what is expected to be one of the most compelling and complex cross-border insolvencies ever tackled by Canadian and U.S. courts, Canadian Lawyer reported in a commentary.

Homburg Invest Inc. is suing several companies chaired by Richard Homburg, its former chairman, for $2,895,000, The Chronicle Herald reported. According to court documents, Homburg Invest is undergoing insolvency restructuring under the protection of the Companies’ Creditors Arrangement Act, with proceedings in the Superior Court of Quebec. As part of that restructuring, the plaintiff divested certain U.S. assets, with limited assistance from Homburg Realty Service, whose parent, according to court documents, is Homburg Canada, now Citadel Holdings.

The fight over defunct Nortel Networks' $7.5 billion in cash will be decided in joint U.S.-Canadian court hearings and not in arbitration, a U.S. appeals court ruled on Friday. The U.S. Court of Appeals for the Third Circuit in Philadelphia upheld a bankruptcy court ruling in March that there was never an agreement to use arbitration to divide the pile of cash among various Nortel estates around the world. Nortel sought protection from creditors in courts around the world in 2009 and its businesses were quickly sold, reducing a once-global corporate giant to little more than a pile of cash.

Fees paid to lawyers and other professionals working on the ongoing bankruptcy proceedings of Nortel Networks Corp. have passed the $1 billion US mark. That's outraged former Nortel employees who saw their long-term disability benefits cut after the company went under, CBC.ca reported. Ernst & Young, the firm hired by the Ontario Superior Court to be the Canadian Companies' Creditors Arrangement Act (CCAA) monitor is already projecting another $47 million US of professional fees from this past October until February 1, 2014.

Suntech Power Holdings Co., the Chinese maker of solar panels whose main unit is reorganizing in the Cayman Islands, told a Manhattan court that an involuntary bankruptcy petition against it in the U.S. could derail restructuring efforts, Bloomberg reported. The creditors seeking the U.S. bankruptcy are a “tiny minority,” holding only 0.27 percent of the company’s outstanding debt, Suntech said in papers filed yesterday seeking to have the case dismissed.

The Texas-based developers of a proposed liquefied natural-gas export terminal in Canada have sought a court-sanctioned reorganization to resolve disputes with other investors in the project, including a Chinese energy company, according to court documents reviewed by The Wall Street Journal. While the proposed Douglas Channel LNG project is much smaller than other LNG projects planned for the Pacific coast, the filing in Canada under the Companies' Creditors Arrangement Act—which is analogous to a Chapter 11 filing—by one of the project's key backers comes as western Canada aims to b

Anglo Irish Bank and its successor Irish Bank Resolution Corporation overcharged customers by an estimated $1.6 billion (€1.2 billion) and continued to overcharge since the Government liquidated the bank in February, a forensic banking specialist has claimed in a US court, the Irish Times reported. The expert witness made the claim in a legal challenge taken against IBRC’s application for bankruptcy protection in a court in Delaware by developer John Flynn and related parties who claim they were overcharged $11 million on loans of about $200 million with the bank.

The US Supreme Court on Monday refused to consider a landmark appeal by Argentina of a lower court's order to pay around $1.5 billion to two hedge funds, the Global Post reported on an Agence France-Presse story. But the decision did not end Argentina's avenues to challenge the 2012 ruling, supported in August on appeal, that it had to pay back all holders of its defaulted bonds, whether or not they took part in a restructuring of those bonds.

Brazilian oil producer OGX Petróleo e Gas Participações SA is meeting with U.S. creditors in New York on Monday in a bid to jump-start rescue talks while banks scamper to arrange an emergency loan for the company if no deal is reached, sources with knowledge of the situation told Reuters. Creditors were set to meet with a new advisory team for controlling shareholder Eike Batista aimed at averting a bankruptcy filing that could come as soon as this month, the sources said. OGX said last week that management is considering all measures to protect assets and stay in business.

Bankrupt developer Seán Dunne has suffered a setback in the US courts after being ordered by a judge to attend court, answer questions and provide all information requested by the trustee managing his case in Connecticut, the Irish Times reported. In an order issued yesterday, bankruptcy judge Alan Shiff said Mr Dunne must “completely answer all questions posted by the trustee and turn over all documents requested by the trustee without limitation or qualification”.