bankruptcy

  • crumbscupcakechallenge

    News

    Purveyor Of Cake Sized Cupcakes Back For All Your Eating Challenge Wants And Needs

    Been itching to get back into the Food Eating Challenge game but unsuccessful in finding one that combines your love of competition and hyperglycemia? Today’s your lucky day. Crumbs Cupcakes is back and not only will it be offering its cupcake the size of 9 Costco-sized sheet cakes, but even more ticking time bombs of […]

    / Aug 26, 2014 at 5:28 PM
  • phil_falcone_pmm--300x300

    The wireless broadband provider That could

    Phil Falcone’s Passion Project Probably Good For $1 Billion: Credit Suisse

    Philip Falcone’s LightSquared Inc. will probably be able to borrow $1 billion to finance its exit from bankruptcy as a standalone company, Credit Suisse Securities LLC said in a letter made public Friday. The Credit Suisse Group AG (CSGN) unit said it was confident it could arrange the proposed bankruptcy-exit loan as long as LightSquared, […]

    / Mar 24, 2014 at 1:51 PM
  • falconetraffic

    News

    Phil Falcone Will Just DVR “The Today Show” Tomorrow

    [via @joecheckler]

    / Jan 16, 2014 at 2:25 PM
  • 2013-Audi-Q7

    News

    In Retrospect Maybe It Was Slightly Suspect That Supposedly Legit Hedge Fund Manager Had A Habit Of Tweeting “Ching!” When A Trade Made Money, Employed A Single Analyst Whose Finance Background Was Limited To Work As A Bank Teller

    Yesterday afternoon, the SEC and the Department of Justice charged hedge fund manager, YouTube star, and prolific Tweeter Anthony Davian with fraud. Like any good alleged Ponzi schemer, Davian applied the “one pot of money” philosophy to his funds’ assets, and used investor cash to buy himself an Audi Q7 Prestige, build a palace the […]

    / Aug 14, 2013 at 6:10 PM
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    News

    Actually Lehman’s Bankruptcy Worked Out Well For A Lot Of People

    Bloomberg has a fantastic article today about how Lehman’s decaying corpse is suing a bunch of former clients, many of them wee and sympathetic nonprofits, who hosed Lehman when they terminated swaps in September 2008. Some of these lawsuits turn on disputes over when those clients, or their consultants, should have valued the swaps for […]

    / May 14, 2013 at 3:06 PM
  • The dollars above were (mm) too, but repasting into WordPress is surprisingly annoying

    News

    Lehman’s Bankruptcy Worked Out Well For Intel, Anyway

    One possible reaction to Apple’s gigantic tax-optimized share repurchase program is to think that spending a lot of time fiddling with how to optimize your share repurchase program might mean you’re out of better ideas. You can ponder whether this Intel share repurchase trade described in a Lehman Brothers bankruptcy lawsuit filed yesterday supplies any […]

    / May 2, 2013 at 12:09 PM
  • News

    Australian Unit Apparently To Blame For Lehman Brothers Bankruptcy

    Creditors of the former investment bank in the U.S. and Europe will get everything back. Creditors in Australia are not so lucky.

    / Apr 15, 2013 at 3:34 PM
  • News

    Bonus Watch ’13: LightSquared

    LightSquared is a wireless venture that seeks to create “convenient connectivity for all.” Unfortunately, as the Wilbur Falcone fans among us know, it’s looking like it’ll be a dark day in hell before that happens, on account of bunch of forces working together to shut this thing down at every turn, including but not limited to the yachting community that claims GSP interference caused by LS will result in boats getting lost at sea; the National Oceanic Atmospheric Administration, which has said LightSquared “may degrade precision services that track hurricanes, guide farmers and help build flood defenses”; and the FAA, which recently put out a study estimating LS could “cost 794 lives in aviation accidents over 10 years with disruptions to satellite-aided navigation.” Also not helping is that LightSquared filed for bankruptcy in May, the company is blowing through cash faster than Wilbur’s Studio 54 days, and senior executives won’t stop quitting. While some people might take stock of the situation and decide, at this point, to throw in the towel, Wilbur Falcone’s benefactor is not some people. He’s making this thing work if it’s the last thing he does. So, what to do? Obviously a couple of miracle workers are going to be needed and the thing about miracle workers is that they don’t come cheap. Gotta spend money to make money.

    Troubled wireless-satellite company LightSquared wants permission to dole out up to nearly $6 million in cash bonuses to four of its top employees, including its interim chief executive. Recent months have seen LightSquared burn through money–it has spent $134.3 million since filing for bankruptcy in May, according to its most recent monthly operating report, and executives alike. In court papers filed Wednesday, LightSquared said four senior executives have left the company in the past six months, including its former chairman of the board and CEO. The company wants to make sure four “irreplaceable employees” stick with the company as it attempts to claw its way out of bankruptcy protection and help to make the reorganization as fast and cheap as possible. LightSquared’s bonus proposal paves the way for a “total possible cash payout of approximately $5.985 million” over two years, according to a filing with the U.S. Bankruptcy Court in Manhattan. Four employees–interim CEO, president and chairman of the board Douglas Smith; Chief Financial Officer Marc R. Montagner; general counsel Curtis Lu; and its executive vice president, regulatory affairs & public policy Jeffrey Carlisle–would be eligible for incentives consisting of cash and restricted stock units paid in shares of the company’s current common stock.

    If the executives satisfy cash preservation goals, make progress in LightSquared’s efforts to resolve certain regulatory issues and emerge from bankruptcy by the end of 2013, they’ll receive vesting of all issued stock and “aggregate incentive payments of cash up to 285% of each such key employee’s annual salary,” LightSquared said. Hitting less aggressive goals, like exiting bankruptcy by the end of June 2014, would come with smaller payouts, like a cash bonus equal to 100% of the executives’ annual salary, in the case of the mid-2014 bankruptcy exit. Mr. Smith currently makes $700,000 annually; Mr. Montagner and Mr. Lu $500,000 each; and Mr. Carlisle $400,000. LightSquared said each of the employees “provides critical services, drives performance, and impacts LightSquared’s ability to enhance value in the Chapter 11 cases.” The group has also had to take on extra work recently, as more and more employees have left LightSquared both voluntarily and involuntarily. The company said its total employee headcount has dropped by 60% in the last six months. The bonus plan aims to motivate the company’s leaders to manage its businesses and working capital effectively and maximize the value of the estate for the benefit of all stakeholders, LightSquared said.

    LightSquared Seeks to Pay Key Executives up to $6M in Bonuses [DowJones]

    / Aug 30, 2012 at 4:12 PM
  • Hedge Funds

    LightSquared Creditors Will Get The Documents They Want, After They’ve Pried Them Out Of Phil Falcone’s Cold Dead Hands

    LightSquared’s lenders says Philip Falcone’s Harbinger Capital Partners won’t hand over documents they are requesting as part of an investigation over whether they can pursue claims against Harbinger and the wireless satellite company. In a Tuesday filing with U.S. Bankruptcy Court in Manhattan, lawyers for a group of LightSquared lenders owed more than $1 billion […]

    / Aug 1, 2012 at 2:44 PM
  • News

    Experience The Collapse Of Lehman Brothers Again, For The First Time

    How will you be spending your weekend? I know what I’ll be doing, which is reading all the Lehman bankruptcy documents. They’ve been online for a week or two and we’ve had some teasers today, covering how much all the big fish got paid and how much all the medium-sized fish in IBD got paid. […]

    / Apr 27, 2012 at 5:56 PM
  • I just like the Erechtheion. That's all.

    News

    This Is Really Only The “Second” Greek Bailout?

    If you’re into Greece you’ve probably already read all about it and if you’re not I can’t make you. But in brief: Greece is fixed and we will NEVER HEAR ABOUT ANY PROBLEMS EVER AGAIN. In less brief:
    (1) Some folks stayed up all night and produced a statement.
    (2) Greece’s private creditors will be offered the long-anticipated opportunity to voluntarily exchange their old bonds for new bonds, which will for the most part be the same as the old bonds except for minor differences including but not limited to a greatly extended maturity (to 2042), a 53.5% reduced face amount, and a 3.6% blended interest rate.
    (3) If they don’t voluntarily exchange, which they will because – hilariously – they’ve already taken accounting writedowns (and also because I guess it’s better than a disorderly default), private holders will get CAC’ed, which may or may not be as bad as it sounds, but in any case at least CDS will pay out, unless it doesn’t.
    (4) Also the public sector will do various helpful, confusing things.
    (5) In exchange for this, Greece will enact horrible austerity, and because no one believes that Greece will actually do that, there will be escrow accounts and what Reuters ominously calls “permanent surveillance by an increased European presence on the ground.”
    (6) Everyone is pretty sure we’ll be doing this again in six months and, look, just fair warning, I will not be writing about it then, because feh.

    We haven’t had a serious international bankruptcy, which this pretty much is, since I started paying attention to the financial markets, two months ago, so I mostly think about insolvency from a US bankruptcy law perspective. One thing that happens in bankruptcy is that, like, really really roughly speaking, the creditors stop being creditors and become the owners. This isn’t always the case but the basic playbook of US bankruptcy law is:

    / Feb 21, 2012 at 2:38 PM
  • Private Equity

    If Only Twinkies Maker Had Had Someone Whose Job It Was To Remember Not To Go Bankrupt

    Stephen Lubben at DealBook noticed something kind of amazing in the Hostess Brands bankruptcy case: Turns out that Hostess has no treasury department. Indeed, it apparently doesn’t have anyone who can perform treasury functions at all. The company has asked the bankruptcy court for permission to hire FTI Consulting to do the work. Apparently Hostess […]

    / Jan 13, 2012 at 6:04 PM
  • News

    No One Tell Matt Taibbi That The Koch Brothers Maybe Did A Shady Thing In Connection With A Firm Run By A Former Goldman Guy

    One way to prevent runs on the bank is to make banks stable and reassure clients that their money is safe. Maybe another way is to make a run on the bank pointless by forcing the fastest runners to give their money back to the slowpokes. That seems to be this: Frederick Grede, trustee for […]

    / Nov 10, 2011 at 6:45 PM
  • News

    Cerberus-Owned Paper Maker Files For Bankruptcy, Saves Some Money On Taxes

    Apparently selling buggy whips paper for newspapers, magazines and coupons is not as profitable as – wait, who thought it was profitable? Cerberus? Sadly, that did not work out for them: NewPage Corp., the largest North American maker of coated papers, filed for bankruptcy six years after being bought by Cerberus Capital Management LP. NewPage […]

    / Sep 7, 2011 at 5:24 PM
  • News

    Man With Bong Will Bring Bankrupt California Town Back From The Brink

    When Ruth Rooney bought a home in Vallejo, California in 2005, Bloomberg reports, “there were few vacancies and the historic Hill neighborhood attracted young professionals.” Then the city lost the US Navy’s Mare Island shipyard, it’s largest employer and filed for bankruptcy and now? Rooney’s property value has “dropped 70 percent in six years” and […]

    / Aug 22, 2011 at 4:25 PM
  • News

    Jim Rogers: Just Give Up Already

    “It seems to me it’s physically, humanly impossible for the U.S. to ever pay off its debt ,” Rogers said. “They can roll it over and continue to play the charade, but the U.S. is bankrupt.” [CNBC]

    / Aug 8, 2011 at 12:15 PM
  • News

    Lenny Dykstra Pleads Not Guilty To Bankruptcy Fraud

    Former New York Mets and Philadelphia Phillies outfielder Lenny Dykstra pleaded not guilty Monday in a federal case where he’s accused of embezzling money from a bankruptcy estate. An out-of-sorts Dykstra appeared in a Los Angeles federal courtroom where he entered his plea while flanked by a new attorney, a deputy federal public defender. His […]

    / Jun 13, 2011 at 3:18 PM
  • News

    Sbarro’s Denies Lack Of Philly Cheese Steak Stuffed Pizza Harbinger Of Bankruptcy-Related Cost-Cutting To Come

    … if you tried to get a Philly cheese steak slice at the Sbarro on Seventh Avenue on Wednesday, you’d see it wasn’t even listed on the menu alongside the restaurant’s other stuffed pizzas and strombolis. Sbarro’s online menu still shows it, and Bankruptcy Beat called another New York Sbarro and was assured by a […]

    / Jun 1, 2011 at 4:56 PM
  • News

    Lenny Dykstra Faces Up To 80 Years In Prison For Stealing The Light Fixtures From His Old House

    Last month, legendary investor Lenny Dykstra was charged with bankruptcy fraud and obstruction of justice. On Friday, he was indicted by a federal grand jury, which took issue with Nails loading $400,000 worth of stuff from his foreclosed house (purchased from Wayne Gretzky in 2007) into a truck, when it should have gone to creditors, […]

    / May 9, 2011 at 11:01 AM
  • News

    Legendary Investor Lenny Dykstra Charged With Fraud, Arrested On “Unrelated Charges” (Update)

    Lenny Dykstra, described by his ex-best friend Jim Cramer as one of “the greats” in the investing industry, has reportedly been charged with with bankruptcy fraud for “selling items from his $18 million California mansion.”

    / Apr 15, 2011 at 3:32 PM
  • News

    How Big Was Lehman’s Hole?

    Dick Fuld may think there was “no capital hole” at Lehman when it collapsed, but the bankruptcy examiner’s report showed a giant mega-hole in the balance sheet. Still, that report apparently doesn’t add up either.

    / Jun 3, 2010 at 12:46 PM
  • News

    Judge to Decide Whether Barclays Got a Secret $11 Billion Windfall in Lehman Deal

    Lawyers from Jones Day, who are overseeing the estate of Lehman Brothers, will  begin arguments today in a closely-watched case that seeks more than $11 billion from Barclays, which lawyers for the estate said the British bank received after  purchasing Lehman’s assets shortly after it filed the largest bankruptcy in U.S. history. The Lehman estate […]

    / Apr 26, 2010 at 10:02 AM
  • News

    Lenny Dykstra Drops Case Against JPMorgan

    Less than two weeks ago, Lenny Dykstra filed a $100 million suit against JPMorgan née Washington Mutual, claiming it was the bank that caused Nails to lose millions due to “predatory lending” and it is Jamie Dimon who should be losing sleep at night over the fact that Nails lives in the back of a […]

    / Mar 30, 2010 at 5:14 PM
  • News

    Lenny Dykstra Is Ready To Prove Himself To Society

    So, Lenny Dykstra has asked a judge to dismiss his bankruptcy case. Why? Nails has a reason. “Bottom line, you don’t belong in bankruptcy when you have $100 million in assets,” Dykstra said Tuesday in a telephone interview.

    / Mar 9, 2010 at 2:34 PM
  • News

    Lenny Dykstra: Homeless Lenny Dykstra Doesn’t Have Money For Gas, Shelter But Could Live In Finest Home Money Could Buy, If He Felt Like It

    As you’re aware, brilliant legal mind Lenny Dykstra is representing himself in his “don’t call it bankruptcy” bankruptcy case (which has been converted from a Chapter 11 reorganization to a Chapter 7 liquidation). How are things going so far? Well, Nails has some complaints. First off, why isn’t anyone repping for Team Twizzlers? Attorney Leonard […]

    / Oct 27, 2009 at 5:45 PM
  • News

    Government Turns The Table On Evil Speculators

    After pouting from not having its every wish met during Chrysler’s fall from grace, the DC braintrust may have learned a thing or two in the process. A group of hedge funds that provided over $3 billion in DIP financing to Delphi in 2007 argue they were conveniently left out of the bidding process for […]

    / Jun 26, 2009 at 10:02 AM
  • News

    Bankruptcy Is Not An Option (Except When It Is)

    The Chrysler hire of Jones Day for Armageddon counsel is looking less and less like a bluff. (Not that we thought it was to begin with, but not that we didn’t either). With Congress looking unlikely to just rubber stamp a bailout, and the rather pointed questioning, in particular of Chrysler, by the Critters, “If […]

    / Dec 5, 2008 at 3:45 PM

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