The Daily Docket: OGX Enters Bankruptcy
http://chapter-7bankruptcysite.com /> When Orr returned to the witness stand, he kept his answers shorter. More than 50 times in two and half hours following lunch, he responded by saying either that he could not recall or that he didnt know the answer to a question. Snyder on Monday defended Detroits filing as a necessary last resort, telling Rhodes that he spent two and a half years trying to resolve the citys fiscal crisis. City unions demanded that Snyder, 55, testify, making him the first governor to take the witness stand in a municipal bankruptcy, according to lawyers who specialize in government insolvency cases. The governor declined to answer some questions, citing his right to not reveal information he received in meetings where legal strategy may have been discussed. Rhodes has ruled that such meetings are covered by the attorney-client privilege. Privilege Invoked Orr and Snyder, a Republican, have both invoked the privilege to avoid providing details of what they may have discussed related to cutting pensions, the decision to file for bankruptcy or changes to the emergency manager law made last year.
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Brazil Stocks Close Higher Despite OGX Bankruptcy, Fiscal Weakness
bankruptcy cases, is assigned to OGX's case and appoints a legal manager for the company, who could be either an independent individual or a representative from a company with recognized expertise. The legal manager is given authority to make executive decisions such as replacing the company's management team or spinning off subsidiaries, provided those actions are called for in the company's recovery plan, which will be defined in the next stage. Under U.S. law a trustee is appointed to operate the business only if the court finds the company's management team negligent or unfit. STEP 2 The company's management must present a detailed recovery plan within 60 days of the filing, provide an independent estimate of its existing assets, and outline concrete steps to be taken to restore financial viability, which will likely include a proposal for debt renegotiation. Unlike U.S.
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FACTBOX-Charting OGX's path through Brazil's bankruptcy process
According to Law Blog , a judge approved the Bernard Madoff bankruptcy trustees efforts to pursue about $8 billion in claims in feeder fund cases. Suntech Power Holdings Co. wants to challenge an involuntary bankruptcy filed against it in the U.S., Reuters reports . Regulators seized a Florida bank in a rare midweek failure, American Banker reports . Stephen J. Lubben writes in DealBook about the remaining questions involving failing financial giants.
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OGX, which started trading in June 2008 at BRL13.45, peaked at BRL23.27 by October 2010 and closed Thursday at BRL0.13, according to FactSet. The company, owned by Brazilian tycoon Eike Batista, failed to come to an agreement with holders of its debt, ending a short history based on expectations of huge oil findings in the Brazilian coast that never materialized. Under the rules of the Sao Paulo stock exchange, companies that request bankruptcy protection have to be removed from all indexes. But the conglomerate that had OGX as its bedrock did show positive signs. Mining company MMX Mineracao e Metalicos SA was up 41.67%, by far the best performance in the index, and closed at BRL0.85. It is still down 78.8% in 12 months. Another of Mr. Batista's firms, LLX Logistica SA, fell 1.67% and closed at BRL1.18. While declining to comment on the specifics of each firm, Mr.
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The receiver handling the bankruptcy recently told the companythat it will only get $8,000. We didnt know this was coming, said general manager Tim Hawirko. Totally blindsided by it. Hawirkos company provided services for the 2011 Indy, whichwas run by Octane, as well as earlier versions of the 
They've been asking the judge to look into who else [the Republican governor] considered for the emergency manager position before settling on Orr, who represented Chrysler in its 2009 bankruptcy, to prove that Snyder just wanted someone who knew a lot about bankruptcy. What is an emergency manager? Michigan has had emergency managers for a while now, but they were given more power by a law, Public Act 4, passed by the Michigan Legislature in March of 2011, shortly after Gov. Snyder took office. Public Act 4 allowed the state's governor to appoint an emergency manager to take over from elected officials in any municipality or school district in Michigan undergoing a "financial emergency." Voters repealed Public Act 4 last November, but the Legislature passed another emergency manager law, Public Act 436, in December. 
A second legal action against the bankrupt company was also filed that aimed for earned unpaid wages under California labor laws, including for 30 days beyond a fired employee's termination. Last month, a joint motion was filed in bankruptcy court that sought approval for a $1 million settlement for wages and benefits left outstanding. According to the terms of the settlement, after $10,000 payments are made to the two class representatives, the $980,000 balance, minus one-third attorney fees and other court costs, will be divided among the fired workers who choose not to opt out. It'll happen on a pro rata basis based on compensation records kept by Rhythm & Hues. A class notice will likely be issued soon. After a hearing last week, a judge gave preliminary approval and set a hearing for final approval on Dec. 13. 
After taking the job, he saw firsthand the high crime, blight and deplorable conditions of police equipment and facilities, he said Friday. "Basically everything that I had read was substantiated in very stark relief," Orr said. Orr, a bankruptcy expert who represented automaker Chrysler LLC during its successful restructuring, has said the city is saddled with $18 billion in long-term debt. He and Police Chief James Craig both testified on the trial's third day about the city's dire straits. Orr will return to the trial on Monday, where he's expected to be grilled by attorneys representing groups who oppose bankruptcy. 
Chapter 11 bankruptcy allows debtors to reorganize their obligations to creditors and stay in business while operating under the authority of a court-appointed bankruptcy trustee like McDermott. A Chapter 7 case sells off the assets and distributes the proceeds to creditors who are owed money. Benner filed for Chapter 11 protection after his anchor tenant, P.F. Changs, claimed it was owed $147,000 in rent credits because he failed to have the restaurant built and ready to open in 2011. In his court filings, Benner listed a total of $7.4 million of debts to several banks, lawyers, the city of Grand Rapids and Kent County. The lack of monthly reports constitutes gross mismanagement of the estate, McDermott stated in his petition filed Thursday, Oct. 24. The debtor has neither sought an extension of these filing dates beyond Oct. 4, 2013, nor does the motion for an extension that was filed by the debtor offer any explanation or justification for a further delay in filing these reports, McDermott wrote in his request. 
Orr subsequently met several times with Michigan officials in February, and a Chapter 9 filing was not discussed in those meetings, Orr said in response to questions. Gov. Snyder named Orr to the emergency manager job on March 25. Orr said he at first resisted the appointment because he anticipated the strain on his family, including two young children. In a lighter moment under questioning from Gregory Shumaker, a former Jones Day colleague, Orr said he was surprised his wife allowed him to take the demanding emergency manager job and move from the Washington, D.C., area to his post in Detroit. "I thought she would shut it down fairly quickly," Orr said. When Orr returns to the stand on Monday, he likely will be asked to explain his efforts to negotiate with the city's numerous creditors, including retirees and pension funds, before the city filed for the largest-ever Chapter 9 municipal bankruptcy on July 18. The questions to Orr Friday afternoon were confined largely to a review of his career before being appointed by Snyder to be emergency manager in late March. 
In short, Rhodes gave the emergency manager and the state what it wanted: The pending lawsuits in Ingham County won't stop the bankruptcy from moving forward. "It's an important step to know that now we can start to litigate this issue so we can start to move forward," said Bill Nowling, Orr's spokesman. "That's not going to happen for a couple of months yet in court, but this is an important step that we bring everything in one court and increase the efficiency of the process." However, Rhodes spent an unusual amount of time making it clear that all of the objections that creditors have are yet to 
BUT HOPEFULLY IT'S GOING TO BE TODAY. WE ALSO DO NOW HAVE A DAY AND TIME TO THAT GOVERNOR SNYDER WILL TAKE THE STAND. HE IS SCHEDULED TO TESTIFY ON MONDAY AFTERNOON FROM 1:00 P.M. AND BE ON THE STAND UNTIL 5:00 P.M. SO HE ONLY HAS TO APPEAR IN COURT JUST THAT ONE TIME. RIGHT NOW WE ARE HEARING FROM A FINANCIAL ANALYST WHO IS BEING CROSS-EXAMINED BY AN ATTORNEY. HE HAS BEEN WITH THE CITY NEARLY TWO YEARS NOW AND WATCHED THE CITYS A FINANCIAL CONDITION BUT HAS LESS RESPONSIBILITY SINCE ORR WAS FIRED. AND HE WAS ASKED ABOUT BUCKFIRE WHO WAS BROUGHT INTO THE CITY. 
Judge Steven Rhodes has set a Nov. 13 deadline for lawyers to file briefs on some key issues from a trial that began Wednesday. That means an immediate decision when the trial ends, possibly next week, is unlikely. Detroit is trying to show it's broke but also held good-faith negotiations with some creditors before filing for bankruptcy in July. Those are important requirements for the city to be declared eligible to reorganize in bankruptcy court. Unions and pensions fund say Detroit emergency manager Kevyn Orr and his team wanted bankruptcy, not negotiations. 
They say a Chapter 9 bankruptcy violates the state constitution that guarantees public pensions. Orr has remained quiet on this issue and, outside the bankruptcy proceedings, has sought to shift legacy costs onto both employees and retirees. Earlier this month, he announced that, starting Jan. 1, retirees younger than age 65 will no longer receive their $605-per-month health insurance coverage but will instead receive a $125 stipend to use for a private plan under the federal Affordable Care Act. Retirees older than age 65 will be enrolled in a Medicare plan but will be responsible for paying their own deductibles. 
Davis found in DMXs court filings were his monthly income (one filing reported $5,000; another pegged it at $1,667) as well as the fact that he listed $0 worth of clothing among his assets yet has said he spends $1,000 per month on clothes . Ms. Davis also pointed to a prior filing by DMX, in 2009, which the bankruptcy court dismissed after finding that the rapper unreasonably delayed the case, hurting his creditors. Its a pattern that continues in his current bankruptcy case, Ms. Davis alleged. 
Related: Detroit bankruptcy brings pension fears, strikes Private donors are replacing ambulances that limp around with more than 200,000 miles logged. The fire department has just one mechanic for every 39 fire vehicles. The number of Detroit parks has dropped to about 60 in recent years from more than 300, due to a lack of money. "There's nothing left to do here. There is no revenue solution," city attorney Bruce Bennett said in his opening remarks. He said no one can credibly argue that Detroit is solvent. Witnesses "will present a mountain of evidence showing the insolvency of the city," Bennett said. "This is one of those cases where the data speaks very clearly and persuasively on its own. 
Keach and the other bankruptcy lawyers contacted for this story said they cant remember such a system being used in cases under Chapter 9, which covers municipalities and doesnt require cities to submit their fees to the judge for approval. Early in its bankruptcy, Detroit agreed to have its bills reviewed by an examiner, saying it would improve the publics understanding of the case. Fishman is a good negotiator and doesnt pound the table to get what he wants, said Keach. As a mediator, Fishman helped resolve several lawsuits filed as part of the bankruptcy of casino company Fontainebleau Las Vegas Holdings, and battles between Lauth Investment Properties LLC and its principal investor, according to his resume. Knows How He knows how to get people to yes, Keach said. Orange County, California, which listed billions of dollars in debt when it filed for bankruptcy in 1994, disclosed its fees to the court, said Lee Bogdanoff, an attorney who worked on that case. Bogdanoff, of Los Angeles-based Klee Tuchin Bogdanoff & Stern LLP, now represents Jefferson County, Alabama, in its bankruptcy, the second-biggest Chapter 9 case, after Detroit. Union officials battling Detroit over proposed cuts have attacked the fees charged by the citys law firm, Jones Day, and its restructuring advisers, Conway MacKenzie Inc. and Miller Buckfire & Co. 
Well that violates the bankruptcy code, Rhodes said. It gives a priority to one unsecured creditor, or one group of unsecured creditors, over others. The labor groups represented at Mondays hearing rejected that argument, saying pensions must be protected at all costs. The city has about 23,500 pensioners. Thomas Morris, an attorney for Detroits retiree associations, said pensions must be paid even if Detroit were wiped off the face of the earth. The constitution protects pensions as a contractual obligation that cannot be diminished or impaired. But U.S. bankruptcy code allows contracts to be severed in bankruptcy. Bruce Bennett, an attorney for Jones Day, which represents the city in bankruptcy court, said most state constitutions prevent contracts from being cut but that protection dissolves in bankruptcy. He said theres a clear divide between Detroit bondholders and labor groups, and neither side will accept special protections for the other side. Without revealing his position, Rhodes foretold the same conflict. Bondholders can argue under the bankruptcy code that pension holders need to be impaired even if the city wants to achieve fair treatment, he said. 
to enter bankruptcy. "People were inquiring: How can you talk about a great comeback city when you just filed for bankruptcy?" said Bohde, referring to the campaign's kickoff during a trade show in Atlanta this summer. He had to convince savvy business leaders that Detroit's July 18 bankruptcy "filing has nothing to do with the city and the development going on right now." "To the general public, it is confusing," he said. There are no smoke and mirrors when it comes to Detroit, the one-time manufacturing marvel of the world that over the past half-century has lost more than 1 million people, tens of thousands of jobs and now straddles the final ladder rung above insolvency. Far too many neighborhoods are crumbling and violent crime continues to rank among the worst in the nation. There is some glitter to the rusty-knuckled town, but it's primarily downtown where three casinos, two professional sports stadiums and a strong restaurant district welcome residents and visitors. The downtown Marriott hotel is spending $30 million on renovations. Cobo convention center, home of the prestigious North American International Auto Show, is completing a $300 million renovation. A $600,000 campaign funded by businesses and touting a brighter future for Detroit has appeared in full-page ads in The New York Times, The Washington Post and other publications. 
public employee pension fund said Thursday that it would appeal an August court ruling granting Chapter 9 bankruptcy protection to the city of San Bernardino, California. The California Public Employees' Retirement System (Calpers) has fiercely opposed San Bernardino's bankruptcy since the Southern California city asked for protection from its creditors in 2012. The city, reeling from a housing bust, a decades-long decline in manufacturing, and soaring employee salary and pension costs, said it had run out of cash to meet its daily obligations. The city suspended its $1.2 million bimonthly payments to Calpers at that time - an unprecedented move - though it resumed payments in July 2013. In August, a U.S. bankruptcy judge ruled San Bernardino eligible for Chapter 9 bankruptcy protection. Calpers said in a press release Thursday that it would appeal "on the grounds that the city did not consider alternatives to filing for Chapter 9 protection, did not file its bankruptcy petition in good faith, and has not provided reliable financial information." San Bernardino, beset by infighting among local officials, has struggled to keep its finances in order as officials including the city manager and the city finance director resigned in the wake of the bankruptcy filing. The case is one of several municipal bankruptcies that are expected to set important precedents about whether municipal bondholders or pensioners get priority when a city goes broke. The California city of Stockton, which is also in bankruptcy, has continued to make all payments to Calpers, and the pension fund has not opposed that city's eligibility for bankruptcy. 
Bankruptcy Judge Steven Rhodes, 64, who oversaw the bankruptcy of auto-parts maker Collins & Aikman Corp. and is presiding over the Detroit case, has instructed lawyers and other advisers to submit their first set of bills today, and to include details explaining what they did and how long it took, broken down into six-minute increments where necessary. The city has agreed to pay 85 percent of the monthly bills and withhold the rest while Fishman prepares a preliminary report about each firm. If he finds that a firm overcharged, or didn't supply enough details about a fee, the firm can appeal to the judge. The remaining 15 percent of the fees are paid after any disputes are resolved. This system is common in cases brought under the U.S. Bankruptcy Code's Chapter 11, which companies use to reorganize by restructuring debt and renegotiating contracts. 
(Daily Bankruptcy Review and DBR Small Cap 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.) CarVal Investors LLC, the hedge-fund subsidiary of agribusiness company Cargill Inc., said it is offering 250 million British pounds ($398 million) more than two rival hedge funds that recently agreed to buy a multibillion-dollar Lehman Brothers bankruptcy claim at a discount. Read the DBR article via Nasdaq . A judge on Wednesday approved up to $785 million in new aircraft financing for American Airlines parent AMR Corp. as the company continues to take advantage of historically low interest rates. 
I wish you the best of luck. These are fair questions and ones that should concern you. Everyone, even those with good credit, should understand how a married couple's credit is intertwined. Here's the good news. Your fiancee's credit doesn't directly impact your good credit. 
Just add items to create a watchlist now: Add or Cancel Already have a watchlist? Log In By Greg Robb WASHINGTON (MarketWatch) - Efforts to amend U.S. bankruptcy laws to address failed large banks could be a useful tool for regulators grappling with the next financial crisis, said Fed Governor Daniel Tarullo on Friday. In a speech at a Fed conference on resolving large banks, Tarullo said bankruptcy codes could be "the default route" in case of a financial firm's insolvency while regulators use living wills to grapple with systemic market risks. Progress addressing the risks of a potential large bank failure is a "relatively unnoticed success" in the world of financial regulatory reform, he said. But more needs to be done, he said. For instance, many major foreign countries have not enacted legislation that would facilitate resolving cross border issues surrounding the failure of a large global financial institution, he said. 
history. Attorneys representing unions, retirees and other creditors also argued that Michigan's constitution protects public pensions from being cut. But Rhodes questioned whether the city's eligibility for bankruptcy should hinge on a plan of action it might take at a later date. Attorney Claude Montgomery, representing a committee of Detroit retirees, said Detroit Emergency Manager Kevyn Orr already indicated in a June proposal to creditors that he plans to slash pension benefits to help deal with Detroit's $11.9 billion in unsecured debt and other obligations. Orr deemed some of the city's outstanding bonds, along with the city's pension and retiree health care obligations, as unsecured debt that would be paid at just pennies on the dollar. 
Becker was a priest in the Archdiocese of Milwaukee for 40 years. During that time he held 10 assignments in the archdiocese and three more in other states. At least 13 people have accused Becker of sexual abuse or improper behavior. Archdiocese creditors seek order to review whether judge has conflict Just days after U.S. District Judge Rudolph T. Randa issued a key ruling in favor of the Archdiocese of Milwaukee in its bankruptcy, the churchs creditors are seeking an emergency order to determine whether Randa had a conflict of interest that should have been disclosed. Daniel Budzynski case shows patterns of secrecy, parish-shifting It took nearly 40 years from the first time Milwaukee priest Daniel Budzynski sexually abused a child until he was finally, firmly told by former Archbishop Timothy Dolan not to wear his collar in public or present himself as a priest. 'Prepare to be shocked,' Milwaukee archbishop warns of priest sex files In a major turning point in its nearly 3-year-old bankruptcy, the Archdiocese of Milwaukee on Monday is scheduled to make public thousands of pages of documents detailing the sexual abuse of minors by priests going back decades, and what church leaders did and did not do in response. Here is a snapshot of the financial selttlements negotiated as a result 
It's FREE! Click one of these fan favorites to get started: Apple ; Google ; Ford . What Curt Schilling's Bankruptcy Can Teach Us October 15, 2013 | Comments (1) Pitching phenom Curt Schilling's mastery on the mound was practically unmatched for much of his career. But as his recent estate sale seems to indicate yet again, his post-baseball performance was far from major league caliber. Schilling the ace After an unspectacular early career with the Orioles and Astros, Schilling's break came in 1992 when Philadelphia added him to its starting rotation. From there, Schilling threw 83 complete games over 15 years for the Phillies, Diamondbacks, and Red Sox, amassing 3,116 strikeouts over the course of his career good enough for 15th on the all-time list and leaving the game with 70 more wins than losses. When Schilling announced his retirement in 2009, he left the game having left everything on the field -- as a testament to his grit, his infamous bloody sock from the 2004 World Series is in the Hall of Fame. 
Last week, Garcia also increased the borrowing capacity of Puerto Rico's main debt issuer, the Sales Tax Financing Authority, in a move praised by several municipal bond analysts. The move comes as the territory struggles with $70 billion in public debt and a 13.9 percent unemployment rate, higher than any U.S. state. Treasury Secretary Melba Acosta said rumors about the U.S. government intervening to help alleviate Puerto Rico's financial crisis are not true. But she said U.S. officials are discussing setting up a committee that would help find ways to boost the island's economy. "It's something that's under discussion right now," she said. Investors, however, kept questioning the possibility of the federal government becoming involved, and whether territorial agencies could file for Chapter 7 or 11 bankruptcy restructuring. 
This also means that by failing to pay on an unsecured credit card, issuers will use the courts or wage garnishment to collect unpaid debts. Unsecured credit cards are offered to customers based on credit history, financial strength and earnings potential. You can start by applying for secured credit cards or credit loans. A secured card or loan means you give the bank some money to hold, and the bank gives you a credit limit equaling that amount. For example, you give the bank $500, and you get a credit limit of $500 on a credit card. The same works for a credit loan. Sometimes, the credit union or bank will give you a $1,000 loan when you deposit $500 into an account. You will not be able to access those funds unless your loan balance is less than the deposit. 
history. Attorneys for the unions and retirees are arguing the bankruptcy was preplanned as a way of slashing employee pensions protected by the state constitution and that the city did not conduct good-faith negotiations. Snyder and other state officials deny that. The governor and I believe it is important to take part in this process and to respond to questions related to Detroit's Chapter 9 bankruptcy filing, Dillon said in a statement issued following his Thursday morning deposition in Lansing. Related story: Gov. Snyder explains path to Detroit bankruptcy filing in deposition This will help ensure resolution of the issue as quickly and efficiently as possible, which the residents of Detroit need, expect and deserve. 
Gordian Group, a New York-based investment bank Keach has secured to handle the sale of MMAs assets, is speaking with the suitors this week, according to Keach. He hopes to begin the auction by the end of November. Without the loan, the railway most likely would run out of sufficient cash before the end of October 2012 and be forced to wind-down or abandon its operations, Keach wrote. In addition, uncertainty over the state of the [railways] liquidity and financing is resulting in a substantial loss of business, as shippers need to know that their cargo will reach its destination rather than being stranded by a suspension of operation. Keach also said that the Canadian Transportation Agencys certificate of fitness, which expires Oct. 18, was dependent upon obtaining operating capital. The Hermon-based railway has been using a $6 million line of credit, provided by Ohio-based Wheeling & Lake Erie Railway Co., to continue operating since it filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Bangor and Canada on Aug. 7. 
The discussions that are underway right now are not about valuation and mostly about how the losses will be allocated, James Hempstead, a credit analyst at Moodys Investors Service, said in a telephone interview. We think a filing will be organized and amenable as opposed to disorganized and contentious. Bond Prices Texas Competitives $1.83 billion of 10.25 percent senior unsecured bonds due 2015, which pay interest on Nov. 1, traded at 3.13 cents on the dollar today, up from an all-time low of 1.87 cents on Sept. 25, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. Adam McGill, a spokesman for Dallas-based Energy Future, declined to comment, while Evercore Partners Inc. (EVR) , the companys restructuring adviser, didnt reply to a request for comment. Representatives at Morgan Stanley, Citigroup, JPMorgan, and Bank of America declined to comment. Some Energy Future creditors continued to negotiate in New York this week, seeking consensus on a restructuring plan ahead of filing for Chapter 11, said one of the people. Key creditors have signed non-disclosure agreements for the talks, which expire Oct. 
. for your kid? Theres no legal requirement to provide orthodonture, Craig said. Are you going to . . 
In the 2008 recession, Marathon, "like many businesses and restaurants, fell behind on its rent," according to papers filed in U.S. Bankruptcy Court in the Eastern District of Pennsylvania. Initially, the landlord "cooperated with us" and the restaurant "paid a stipulated rent each month." In September 2012, the landlord waived 53 percent of the back rent and provided a schedule for payment, court papers said. But, soon after, the ownership changed, and a promised written agreement outlining rent terms was never received, according to the bankruptcy filing. "Last week the company learned that its landlord was not honoring the agreement it reached in fall 2012, but instead declared a default," the partnership that owns 1818 Market said in a statement. "This put the company in a precarious position." The landlord's "threat to enter judgment and take possession of the lease premises" led the partners to reorganize under bankruptcy protection. The company estimated it had "secured obligations" of about $2 million, and about $450,000 in "unsecured" debts. The Borishes, who began 30 years ago with a 10-seat restaurant in Northeast Philadelphia, are majority shareholders with a 92 percent ownership interest. 
Not so with bankruptcy. If your income rises during the bankruptcy term -- say, you work some overtime or get a new job -- your payments will also go up, and you may be forced to make those payments for a much longer duration before your debt is discharged. There's also your credit record to consider. With a bankruptcy, you'll receive an R9 rating -- the worst possible -- and it will stay on your credit report for six years. Filing a consumer proposal will earn you an R7 rating, which is slightly better, and it will only stay on your credit report for three years following the completion of the proposal. All of those benefits have to be weighed against the amount you'll be paying. A consumer proposal typically costs more than a bankruptcy, says Hoyes. "The trick in a proposal is to estimate what a bankruptcy would cost and then offer the creditors a little bit more so that they have incentive to accept it." As a rule of thumb, most creditors want to be getting somewhere between 20 and 40 cents on the dollar based on what they're owed. So if you've got $100,000 worth of debt, they would likely offer $20,000 or $30,000. 
suffered a pair of setbacks Thursday in their trial preparations for the Justice Departments case against their proposed merger, The Wall Street Journal reports . Italys government recruited help from the state-owned postal service to inject capital into Alitalia, saving the struggling airline from imminent bankruptcy, says WSJ . Former Detroit Mayor Kwame Kilpatrick was sentenced Thursday to 28 years behind bars for standing atop a vast criminal conspiracy that prosecutors say contributed to the citys collapse into bankruptcy, reports WSJ . New York City Opera, which filed for bankruptcy-court protection last week after years of financial turmoil, said at least one other cultural institution may be interested in a merger with the company, The Journal reports . Jefferson County, Ala.,is meeting with J.P. 
In 2007, Peabody spun off operations and reserves in Central Appalachia, Northern Appalachia and the Illinois Basin to form Patriot Coal. 2012 Bankruptcy St. Louis-based Patriot filed for bankruptcy in July 2012, citing a drop in demand and $1.6 billion in lifetime health-care obligations for its retirees. It said the spinoff left it responsible for the benefits of three times as many retirees and dependents as active employees, saddling it with liabilities of $1.3 billion or more. Peabody said Patriot was a viable company when it was spun off, and that its acquisition of a separate company, Magnum Coal Co., along with a drop in coal demand and increased regulation, caused its financial burden. During Patriots reorganization, it won court approval of a proposal to reduce pensions and benefits to 13,000 unionized workers and retirees. The United Mine Workers of America continued to press it for contributions from Peabody, as well as Arch Coal. In 2008, Patriot bought Magnum Coal, which had acquired three Arch units in 2005. 
Three months later, no assets have been divided and no major deals have been struck. In fact, a judge soon will hold a trial to determine if Detroit even is eligible to be in bankruptcy court to restructure at least $18 billion in long-term debt. Snyder's answers during a three-hour deposition can be turned into evidence at the trial. "It's extraordinarily rare" for a governor anywhere to be interviewed under oath about executive decisions, said Devin Schindler, who teaches constitutional law at Thomas M. Cooley Law School. Indeed, the attorney general's office tried to keep Snyder on the sideline by invoking executive privilege, a common defense. But that didn't seem to sit well with U.S. Bankruptcy Judge Steven Rhodes, so lawyers for the governor said he would agree to be interviewed. The deposition will be conducted in private in Lansing, although a transcript could be released later. 
Louis, features a giant foam model of the Statue of Liberty in August 2008. On Friday, a bankruptcy judge approved the the sale of YTB's assets to Jamraval Inc. for $3.5 million. It made the sole bid in the bankruptcy court's auction. The new business, owned by Sam Hathi, will operate as YTB Global Travel Inc. according to a statement. He will oversee day-to-day operations at YTB. We believe the YTB franchise can be turned around and that it can regain the leadership position that it once held in the travel services industry, Hathi said in a statement. Andy Cauthen, YTB's International's president and CEO, will remain at the company in an unspecified management 
"Reaching these agreements represents a pivotal juncture in Patriot's restructuring. With Knighthead's financial backing and the funding provided by Peabody and Arch, Patriot is now well-positioned to secure exit financing," said Patriot President and Chief Executive Officer Bennett K. Hatfield. "This sets a clear path forward for Patriot to emerge from Chapter 11 by year-end as a strong competitor in the coal industry." Under the terms of the Plan, the Company will receive an infusion of $250 million in new capital through a rights offering backstopped by Knighthead. Pursuant to agreements with the UMWA, the Company will make $75 million in direct cash payments to the VEBA, plus future payments from royalty and profit sharing commitments. The Company and the UMWA also reached a global settlement with Peabody that will provide the VEBA and the Company with significant additional funding. Under the terms of the settlement, Peabody will provide $310 million, payable over four years through 2017, to fund the VEBA and settle all Patriot and UMWA claims involving the Patriot bankruptcy. Additionally, Peabody will provide liquidity totaling approximately $140 million to the Company in the form of letters of credit. The final agreement is expected to be signed in the coming weeks and presented to the Court for approval at the November 6 hearing. Under the terms of the Company's settlement with Arch, the Company will receive $5 million in cash and a release of a $16 million letter of credit posted in Arch's name. In addition, certain expiring coal leases in Patriot's Logan County mining complex will be extended and Patriot will receive $16 million in cash for the sale of certain non-strategic metallurgical coal reserves. As with the Peabody settlement, the final Arch agreement is expected to be signed in the coming weeks and presented to the Court for approval at the November 6 hearing. As a result of the transaction with Knighthead and the Company's settlement with Peabody, the VEBA is expected to receive more than $400 million in cash over the next four years, and will have continuing income from royalty payments and profit sharing opportunities. These agreements resolve all matters with the UMWA. "I am pleased that we have been able to reach agreements that provide the UMWA with hundreds of millions of dollars in retiree healthcare funding," added Hatfield. "The best result for the UMWA and its members is for Patriot to emerge from bankruptcy as a healthy company that will continue to provide jobs and benefits, and we are now on track to achieve that goal." Patriot's Plan of Reorganization and Disclosure Statement can be found at www.patriotcaseinfo.com . The Disclosure Statement is subject to approval by the Court, and the Plan of Reorganization is subject to confirmation by the Court. The hearing to consider approval of the Disclosure Statement is scheduled for November 6, 2013. This press release is not intended as a solicitation for a vote on the Plan within the meaning of section 1125 of the Bankruptcy Code. Note: Background on Patriot's restructuring and transformation can be found at the Company's website, www.patriotcoal.com . About Patriot Coal Patriot Coal Corporation is a producer and marketer of coal in the eastern United States, with 11 active mining complexes in Appalachia and the Illinois Basin. Patriot ships to domestic and international electricity generators, industrial users and metallurgical coal customers, and controls approximately 1.8 billion tons of proven and probable coal reserves. Forward-Looking Statements Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These statements involve certain risks and uncertainties that may be beyond our control and may cause our actual future results to differ materially from our current expectations both in connection with the Chapter 11 filings Patriot announced on July 9, 2012 and our business and financial prospects.