Phoenix Bankruptcy Law News

November 2012 Archives

AMR, parent company of American Airlines, may emerge from bankruptcy on its own two feet. However, it will probably do so with a new board of directors and new management team.

A group of AMR's most significant bondholders, including Pentwater Capital Management and JPMorgan Chase & Co., said it won't support a stand-alone restructuring unless a new board is appointed, according to Reuters. The move represents yet another hurdle for CEO Tom Horton and his team.

It's the end of an era in the world of mass-produced snack cakes. Bankruptcy Judge Robert Drain has approved Hostess' liquidation plan, giving the company the go-ahead to begin the wind-down.

Following a strike by Hostess' baker's union, Drain ordered the company and the union to enter into mediation. However, the parties failed to reach a compromise regarding new labor contracts.

Now Hostess plans to sell off its assets and wind down over the course of a year, The Wall Street Journal reports.

The bowling industry has gone through a lot of changes over the past few decades. First of all, the demographic has shifted from hardcore league players to a more casual crowd. Second, independently owned bowling alleys now dominate the landscape.

Industry giant AMF Bowling Worldwide Inc. has had a hard time adjusting to the changes. Last week, the company filed for its second bankruptcy in a little over a decade, The Wall Street Journal reports.

They say a Twinkie lasts forever, but Twinkies themselves could soon be a thing of the past.

On Wednesday, Hostess warned that if sufficient employees didn't end their strike and return to work on Thursday, it would close its doors. The Bakery, Confectionary, Tobacco Workers and Grain Millers International Union, Hostess' second-largest union, called the company's bluff and continued its strike.

As investigator Warrick Brown on CBS’ “CSI: Crime Scene Investigation,” actor Gary Dourdan brought criminals to justice every week. However, in real life, Dourdan has been on the wrong side of the law on more than one occasion.

Those brushes with the law have cost the actor a lot. Back in August, Dourdan filed for Chapter 11 bankruptcy, claiming a whopping $1.73 million in debt, according to TMZ.

Hostess Brands has been locked into a tug of war battle with its workers' labor unions ever since the company filed for bankruptcy earlier this year. In August, Hostess gave its workers an ultimatum: accept wage and benefits cuts, or find another job.

The Bakery, Confectionary, Tobacco Workers and Grain Millers International Union, the company's second largest union, overwhelmingly rejected the deal. Now the union is taking its opposition one step further by striking, The Dallas Morning News reports. Hostess warns that the strike could be the last nail in the company's cream-filled coffin.

Having a brutal dictator on your list of clients probably isn't good for business.

Strategic consulting firm Monitor Co. Group LP came under fire back in 2011 when it was revealed that the company had accepted a $3 million contract with the Libyan government to improve dictator Moammar Gadhafi's public image, The Wall Street Journal reports.

The resulting bad press turned out to be the last nail in the coffin for the struggling company.

American Suzuki Motor Corp. filed for Chapter 11 bankruptcy protection Monday, and announced that it will soon stop selling automobiles in the United States, The Associated Press reports.

Recent Suzuki buyers don't have anything to worry about. The company intends to honor all of its warranties and buy back agreements.

Dealerships, on the other hand, may have reason to worry.

Toni Braxton has sold more than 40 million albums during her music career, but has racked up a staggering $50 million in debts. She first filed for bankruptcy back in 1998. Then in 2010, the IRS filed a $396,000 tax lien against the singer, making a second bankruptcy necessary.

Now Braxton has hit another financial bump in the road. The trustee in Braxton’s bankruptcy case had accused the singer of fraudulently transferring money to her estranged husband, Keri Lewis, in order to keep the cash away from her creditors, TMZ reports.

Today, more than 90% of private student loans require co-signers, up from about 50% six years ago, The Wall Street Journal reports.

That means more and more parents and grandparents are on the hook for student loans when young graduates can't pay. As a result, many parents and grandparents are forced to file for bankruptcy.

Shedding student loan debt in bankruptcy, however, is far from a walk in the park.