Detroit Accident Victim Not Exempt From Stay On Lawsuits, Bankruptcy Judge Rules

Belle Foods bankruptcy auction hopes to ring up high bids

10, Beydouns lawyer argued that the city acted in bad faith by filing for bankruptcy to avoid paying the judgment award. The governor and (emergency manager Kevyn) Orr say Detroit could have filed 10 years ago, so why, 10 days after the bond request for $2 million, did they file? said attorney Raymond Guzall II of Farmington Hills. Jeffrey Ellman, a lawyer for the city, said the totality of the citys debts and not any one issue drove the city to file for bankruptcy. The city also argued that allowing the continuation of actions such as this would undermine the protections of the automatic stay and jeopardize the citys efforts to restructure. During the hearing, Rhodes asked why Beydoun should be given favored status over more than 100,000 other unsecured creditors, including pensioners at risk of losing benefits. In his order denying Beydouns motion, Rhodes wrote: When an unsecured creditor like Beydoun seeks relief from the automatic stay to pursue collection from a debtor, there is significant potential harm to other creditors, because if successful, the creditor will be paid in his claim and promptly so, while other creditors are stayed. This would be fundamentally unfair to them regardless of the asserted grounds for relief. Accordingly, the court finds that the motion does not state sufficient cause for relief from the automatic stay. Guzall said the judge made a mistake and did not follow the law.
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Bankruptcy Judge Steven Rhodes today scheduled a hearing for 10 a.m. Oct. 2 to consider the NAACPs argument that its ongoing challenge to the states emergency manager law should be allowed to proceed outside of bankruptcy court. The Michigan and Detroit chapters of the NAACP joined with Donnell White, Thomas Stallworth III, Rashida Tlaib and Maureen Taylor to file a lawsuit in May seeking to overturn the emergency manager law as unconstitutional because it infringes on voter rights. Their lawsuit, filed in May in the U.S. Eastern District Court of Michigan, was immediately delayed by Detroits bankruptcy case.
For the original version including any supplementary images or video, visit http://www.freep.com/article/20130923/NEWS01/309230078/NAACP-Kevyn-Orr-Rick-Snyder-Detroit-Chapter-9-bankruptcy-Steven-Rhodes

Archway Museum Cleared to Leave Bankruptcy

30, by William D. White using Legalzoom. Other buyers that would operate stores as part of AWGs stalking horse bid are: HAC Inc. taking the Georgia stores in Monroe, Dawson, Milledgville (North Columbia and Wane Street stores), Macon, Cochran, Eastman, Gordon, East Dublin and Warner Robbins along with the Troy, Ala., store. Triple V taking three stores in Tuscaloosa and one in Meridian, Miss. Mitchell Grocery taking stores in Alabaster, Scottsboro, Florence, Decatur, Muscle Shoals and Atmore, Ala.
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Bankruptcy judge to decide whether NAACP's emergency manager challenge can proceed

Under the right circumstances, creditors can file an involuntary petition and force the debtor to address issues of insolvency. The major requirements are a certain number of creditors, the debtor is generally not paying debts, and the petitioners must chose the bankruptcy chapter, in this case, chapter 7, which means liquidation. An involuntary petition works like a complaint, asking the court to declare that the company should be put into bankruptcy. The company has 21 days to content the involuntary petition. Or, it can respond with its own voluntary chapter 11 filing. Before the four companies filed the involuntary petition against BlegalBloss, Pratt Corrugated Holdings Inc.
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Citizen objectors to Detroit bankruptcy get day in court

With a bankruptcy judges signature, the Chapter 11 exit plan for the Great Platte River Road Archway has canceled the 13-year-old museums promise to pay back more than $19 million worth of bonds that were used to construct it. The pioneer-honoring museuma 1,500-ton structure that sits atop beams that straddle Interstate 80intends to pay back those investors a total of $50,000, according to the plan filed with the U.S. Bankruptcy Court in Lincoln, Neb. The bankruptcy-exit plan approved last week by Judge Thomas Saladino leaves it pretty much debt-free. Officials said that the museums heavy debt burden made it tough to rally donations. If it managed to clear those debts through bankruptcy, they said that the attraction would be able to pay for its operations using donations and tickets sales, which cost $12 for most adults. Some are hoping for an attendance boost from a new highway interchange that recently opened closer to its entrance. The Archway museums annual attendanceroughly 60,000 visitorshas declined every year since it opened, according to museum officials.
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Cincinnati startup being forced into bankruptcy

(Daily Bankruptcy Review and DBR Small Cap http://cortrightlaw.com/bankruptcy are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage , scroll to the bottom and click try for free.) LightSquared lenders balked at the selection of an independent committee to oversee a sale, WSJ reports . Casino-tax revenue has become an issue in Detroits Chapter 9 bankruptcy case, DealBook reports . U.S. regulators fined Toronto-Dominion Bank $52.5 million over its alleged role in imprisoned attorney Scott Rothsteins $1.2 billion Ponzi scheme. Read the DBR Small Cap article via The Wall Street Journal . Videogame maker Atari Inc.
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The Daily Docket: Lenders Ease Pressure in OSG Bankruptcy

Retired Detroit worker Olivia Gillon was one of the 110 people who were given 3 minutes each Sept. 19, 2013, to object to the Detroit bankruptcy in U.S. District Court. (Photo: Kathleen Galligan, Detroit Free Press) Story Highlights Oct. 23 is the date for an trial to determine whether Detroit is eligible to file bankruptcy Retirees objected to use of pension money to help city get out of debt, reducing their benefits Few at hearing supported decision to file for bankruptcy protection SHARE 29 CONNECT 24 TWEET 3 COMMENTEMAILMORE DETROIT After hearing from area residents objecting to Detroit's bankruptcy filing , Judge Steven Rhodes said Thursday he will urge the governor and emergency manager to listen to a recording of the session. About 50 people addressed the judge to argue that the city is not eligible for Chapter 9 bankruptcy. STORY: Detroit files bankruptcy The objectors argued that Detroit emergency manager Kevyn Orr is not authorized to place the city in bankruptcy, Detroit is not in dire financial condition and the city should not be allowed to cut pensions. "I think the emergency manager should not have the right to use the city pension system to balance the city's debt," city retiree Michael Abbott said. "I appreciate you considering that." Hassan Aleem, one of the 110 individual objectors, said Orr should not be allowed to place the city in bankruptcy court because, he said, "only an elected official can file for bankruptcy." Stripped of the legalese that typically dominates bankruptcy court, the hearing was marked by emotional pleas for Rhodes, the federal bankruptcy judge assigned to Detroit's case, to remove Orr's authority and protect retiree pensions.
For the original version including any supplementary images or video, visit http://www.usatoday.com/story/news/nation/2013/09/19/detroit-bankruptcy-citizens-hearing/2839913/