Phoenix Bankruptcy Law News

December 2012 Archives

So far, 39 people have died after they were allegedly treated with meningitis-contaminated steroid injections. Hundreds of others have been infected.

New England Compounding Center, the company accused of producing the contaminated injections, faces more than 400 lawsuits. Now the company is facing bankruptcy as well.

NECC has filed for Chapter 11 bankruptcy, claiming to have somewhere between $1 million and $10 million in assets, NBC News reports.

Eastman Kodak's prized imaging patents will soon be in the hands of three of the world's biggest tech companies.

Kodak announced Wednesday that it struck a deal to sell its patents to a consortium led by Intellectual Ventures and RPX Corp. The consortium also includes tech giants Apple, Microsoft, and Google, Dow Jones reports.

It's been a bad year for video game companies. Back in June, Curt Schilling's 38 Studios filed for Chapter 7 bankruptcy after racking up more than $150 million in debt.

Now videogame maker THQ is going under. The company has filed for Chapter 11 bankruptcy protection and is planning to sell its assets to affiliates of the private equity firm Clearlake Capital Group for about $60 million, The Wall Street Journal reports.

Walmart could be the new maker of Twinkies and HoHos. According to Bloomberg, there are about two dozen companies bidding on Hostess' assets, including Walmart and Kroger Co.

Some of the bidders are reportedly interested all of Hostess' assets, while others are only interested in specific brands like Twinkies. Overall, the liquidation could bring in as much $1 billion for the company's creditors, according to one financial advisor's calculations.

Back in October, federally funded battery company A123 Systems filed for Chapter 11 bankruptcy. Initially, Johnson Controls Inc, a fellow American battery maker, planned to buy A123's assets.

However, China's Wanxiang America Corp. swooped in and outbid Johnson Controls. On Tuesday, U.S. Bankruptcy Judge Kevin Carey approved the sale, The Wall Street Journal reports. Several government agencies have expressed concern about A123's tax-payer-funded assets going to a foreign company.

American Suzuki Motor Corp. is one step closer to exiting bankruptcy.

The company won support from 97 percent of its auto dealers to shut down its new car sales in the United States, Bloomberg reports. In exchange for their support, the dealers will be repaid everything they're owed by the company -- a rarity in bankruptcy cases.

Kodak's imaging patents are some of the company's most valuable assets. Back in September, Kodak toyed with the idea of licensing out the 1,100 patents rather than selling them at auction.

Now, however, the company seems to have settled on a sale rather than licensing. Kodak struck a deal with creditors last month for $830 million in loans, contingent on Kodak selling its patents for at least $500 million, The Wall Street Journal reports.

A group of bidders, including many Silicon Valley tech companies, has stepped up and offered a little more than $500 million for the patents. Kodak may be one step closer to exiting bankruptcy.

Most people file for bankruptcy to wipe out their debt and get a fresh start. Sometimes, however, the fresh start isn't so fresh.

Actor Gary Busey filed for Chapter 7 bankruptcy back in February, listing about $500,000 in debts. Last week the broke actor's bankruptcy case was completed, but he's still in the hole to the tune of about $450,000, TMZ reports.

Hostess workers aren't happy. Not only are the company's 18,000 current workers out of a job, its former workers may not be getting their pensions.

Hostess' top executives, on the other hand, could be walking away with hefty bonuses. Last week, a judge approved $1.8 million in bonuses for 19 of the company's top executives, Forbes reports. But do the executives really deserve bonuses?