Corporate Restructuring & Bankruptcy Blog

Daimler's Zetsche: Auto Industry in Slow Recovery

2009-11-12T14:24:00.001-08:00

Daimler CEO Dieter Zetsche speaks with Dow Jones Newswires' Simon Constable and WSJ's Neal Boudette. He says a slow, but lasting auto recovery is under way.

KCC's Jonathan Carson on Rise in Prepackaged Bankruptcies

2009-11-12T10:24:00.000-08:00

From theDeal.com: Kurtzman Carson Consultants, LLC co-founder and managing director Jonathan Carson provides his perspective on the growth in prenegotiated and prepackaged bankruptcy cases.

Crucible Materials Reaches Settlement with the United Steelworkers

2009-11-11T21:20:00.000-08:00

Crucible Materials Corporation and Crucible Development Corporation sought bankruptcy court approval today of a memorandum of agreement with the United Steelworkers (USW). The proposed memorandum of agreement provides the terms of a settlement between Crucible and the USW relating to Crucible's attempt to reject three collective bargaining agreements with the USW pursuant to section 1113 of the Bankruptcy Code.

Both Crucible entities voluntarily filed for chapter 11 protection in May 2009 and have since sold a substantial portion of their assets. Prior to the bankruptcy and asset sales, Crucible was a leading manufacturer of specialty metals products for the automotive, aerospace, and petrochemical industries. However, Crucible's operations are now limited to selling or otherwise disposing of the companies' remaining assets.

In September, Crucible sought court authority to reject its three CBAs with the USW pursuant to section 1113 and to terminate certain medical benefits provided to USW retirees pursuant to section 1114. The USW has challenged Crucible's motion, arguing that Crucible has not met the requirements of sections 1113 and 1114 by, among other things, failing to negotiate in good faith. To date, the court has not held a hearing to consider the motion and Crucible and the USW have not reached a settlement proposal. Among other terms, the USW consents to a distress termination of Crucible's pension plan for USW retirees and the termination of retiree health benefits as of November 30th.

netDockets has made a complimentary copy of the motion available on JDSupra.

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Finlay Enterprises Announces Auction Results for Asset Sales

2009-11-11T17:03:00.001-08:00

On Tuesday, Finlay Enterprises, Inc. announced the winning bidders at an auction held for the sale of assets including furniture, fixtures, and equipment, information technology, intellectual property, and unexpired leases of real property. At the time of its bankruptcy filing, Finlay operated 77 licensed jewelry departments in major department stores and 106 stand-alone jewelry stores under the brand names Bailey Banks & Biddle, Carlyle & Co. Jewelers LLC and L. Congress, Inc.

The auction was held on November 4th at the offices of Finlay's bankruptcy counsel, Weil, Gotshal & Manges LLP, in accordance with court-approved bidding procedures governing the sale of substantially all of Finlay's assets. The winning bidders included the following:

Gordon Brothers Retail Partners, LLC
Adamas Partners, LLC
S. Congress Fine Jewelers, LLC
Murphy Jewelers
Fink's Jewelers, Inc.
General Growth Properties (also operating under chapter 11 protection)
Govberg Jewelers
The Forbes Company
Synergies, Corp.
Helzberg's Diamond Shops, Inc.

Finlay's selection of these bidders as the successful bidders is not final until the bids receive bankruptcy court approval. A hearing to consider the bids is scheduled for November 12th beginning at 4:00 p.m. (Eastern).

Research for this article performed using the netDockets Precedent Research System for Corporate Bankruptcy

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Creditor Wants RadLAX Gateway Hotel Cases Moved to California

2009-11-11T00:11:00.000-08:00

Earlier today, Bomel Construction Co., Inc. - a contractor to and creditor of the debtors - filed a motion requesting that the jointly-administered chapter 11 bankruptcy cases of RadLAX Gateway Hotel, LLC and RadLAX Gateway Deck, LLC be transferred from the Northern District of Illinois to the Central District of California bankruptcy Court. The debtor companies own the Radisson Hotel at Los Angeles Airport, which is located at 6225 W. Century Boulevard in Los Angeles, California. Bomel Construction was hired to "design and build an eight-level 2,543 car stall cast-in-place concrete parking structure" which is currently unfinished and unusable.

RadLAX voluntarily filed for chapter 11 protection on August 17th in the bankruptcy court in Chicago, blaming the bankruptcy in large part on RadLAX Gateway Deck, LLC's inability to complete construction of a parking structure adjacent to the hotel due to the companies' lenders' refusal to advance funds for continuing construction (details on the bankruptcy filing can be found here). On the same day, companies operating a related hotel, the InterContinental Hotel Chicago O'Hare, also filed for bankruptcy protection. However, the cases related to the two hotel properties are being administered separately.

Bomel, which asserts that it is due approximately $15.5 million on the construction contract for the parking structure, argues that the bankruptcy cases should be transferred to California because the companies' assets (the hotel), the majority of the creditors, and outstanding litigation are all located in California. In contrast, Bomel asserts that the only basis for venue in Illinois is the location of the LLC's members and technical headquarters.

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NutraCea Files Chapter 11 in Arizona

2009-11-11T00:06:00.000-08:00

NutraCea, a "world leader in stabilized rice bran (SRB) nutrient research and technology," voluntarily filed for chapter 11 bankruptcy protection in Arizona on Tuesday. The company, headquartered in Phoenix, sought court approval for a $6.75 million debtor-in-possession (or DIP) financing facility to be provided by Wells Fargo Bank, N.A.

Today's bankruptcy filing excluded all of NutraCea's subsidiaries, including Irgovel, its Brazilian rice bran oil operation. In a press release announcing the filing, NutraCea stated that it "plans to use the protection provided by the courts under Chapter 11 to restructure its operations, reduce overhead and sell non-core assets, in line with the previously announced strategy of focusing on its core businesses of stabilized rice bran, rice bran oil, nutraceuticals and baby cereal." The company is represented in the bankruptcy case by Forrester, Worth & Green PLLC.

netDockets has made a complimentary copy of the voluntary petition available on JDSupra.

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Las Vegas Casinos - On the Rebound?

2009-11-10T11:16:00.000-08:00

Casino companies have been hit particularly hard by the recession and there have been multiple bankruptcy filings by casino companies over the past year. While the Nevada casino bankruptcies, most notably Station Casinos and Herbst Gaming, have primarily been focused on locations off the Las Vegas Strip, The Business Insider's Clusterstock Chart of the Day provides a potential glimmer of hope for a rebound in casino revenues. Based on data from the Nevada Gaming Commission & State Gaming Control Board, September casino revenues on the Las Vegas Strip posted the smallest year-over-year monthly decline since early 2008 and September revenues were the highest on a dollar basis since January.

Teton Energy Files for Bankruptcy With Plan Sponsor

2009-11-10T00:48:00.000-08:00

On Sunday, Teton Energy Corporation and seven affiliates filed for chapter 11 protection in Delaware. Teton's common stock trades under the symbol 'TEC'. Teton was formed in 1996 and initially focused its operations on oil and gas exploration and production in Western Siberia, Russia. However, in 2004, Teton sold its Russian operations to its partner. Since that time, its operations have been focused in the United States.

According to a declaration of Teton's CFO filed with the bankrupcy court, the companies' primary assets are hydrocarbon leasehold interests and they are currently party to over 3,500 leases, of which 175 are active. In total, the companies hold leasehold interests in 318,000 net acres in the Central Kansas Uplift, eastern Denver-Julesburg Basin (Colorado), and Big Horn Basin (Wyoming). During August of this year, Teton's average production was 449 boe/d, with 87% of Teton's production being crude oil.

The companies blamed their bankruptcy filing on a "severe liquidity crisis." The purpose of the bankruptcy cases is to effectuate a comprehensive restructuring pursuant to which Rise Energy Partners, LP will acquire 100% of the equity in a reorganized Teton by acting as a sponsor under a Plan of Reorganization. To that end, Teton and Rise Energy Partners II, LLC have entered into a Plan Sponsorship Agreement and Teton filed a proposed Plan of Reorganization with the bankruptcy court. The proposed transaction with Rise is subject to a competitive bidding and auction process, subject to court approval of proposed procedures.

netDockets has made a complimentary copy of the first day declaration of Teton's CFO, Jonathan Bloomfield, available on JDSupra.

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Wilkes Bashford Files Chapter 11, Seeks Asset Sale

2009-11-10T00:44:00.000-08:00

The Wilkes Bashford Company, a high-end department store chain, filed for chapter 11 protection on Monday in order to effectuate a sale of substantially all of the company's assets to Ed Mitchell West, LLC. The chain was founded in 1966 and operated its six-story flagship store in San Francisco's Union Square. Wilkes Bashford stores were also opened in Mill Valley, Palo Alto, and Carmel, California but the Mill Valley store and the Carmel store were closed in the last two months.

The proposed purchaser is affiliated with a private luxury retailer on the East Coast and would continue to operate the San Francisco and Palo Alto stores. Under the proposed agreement, Mitchell would pay $4.6 million in cash, subject to inventory adjustments. However, the transaction is subject to a competitive bid process to allow for higher or otherwise better offers. Wilkes Bashford is seeking approval of an expedited sale process, arguing that a sale needs to close by November 30th in order to avoid impacting the holiday shopping season. Therefore, Wilkes Bashford has requested that alternate bidders be required to submit their bids by November 23 and that a hearing to consider the sale be held on November 25. A hearing to consider the proposed bid procedures and a proposed break-up fee for Mitchell is scheduled for tomorrow morning, November 10, at 9:30 a.m.

netDockets has made a complimentary copy of the bidding procedures motion available on JDSupra.

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Capmark Financial to Sell Japanese Servicing Business

2009-11-08T12:37:00.000-08:00

Capmark Financial Group Inc. sought court authority on Thursday to sell all of its equity in Premier Asset Management Company to Sandringham Investment Inc. Premier Asset Management, a wholly-owned subsidiary of Capmark Financial, is the first licensed loan servicer in the Japanese servicing industry and is one of the largest loan servicing companies in Japan specializing in commercial mortgage backed securities (or CMBS). Premier currently services approximately $18 billion in mortgage loans (measured by outstanding unpaid principal balance), of which $13 billion is CMBS servicing.

Capmark has been attempting to negotiate a sale of Premier since the first quarter of this year, but was able to locate only two interested parties - the proposed purchaser and one unidentified "international bank." Because of the prolonged pre-bankruptcy efforts to locate interested purchasers, Capmark is requesting bankruptcy court approval for a private sale (i.e., not requiring a competitive bidding and auction process). In the alternative, however, Capmark has requested approval of a December 14 auction, December 18 sale hearing, and JPY 50 million break-up fee ($551,785). The proposed sale price is approximately JPY 2.1 billion (approx. $23.1 million), with a potential JPY 200 million enhancement related to certain non-performing loans.

netDockets has made a complimentary copy of the asset sale motion available on JDSupra.

About netDockets:

With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.

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More information on Capmark's bankruptcy cases:

* Capmark Financial Files Chapter 11; Asset Sales Likely

* Capmark Creditors' Committee Appointed

Erickson Retirement Communities Creditors' Committee Appointed

2009-11-08T09:34:00.000-08:00

On Wednesday, the U.S. Trustee filed a notice with the bankruptcy court identifying the members of the Official Committee of Unsecured Creditors for Erickson Retirement Communities, LLC and its affiliates. The companies operate 20 continuing care retirement communities in 11 states, which collectively have approximately 23,000 residents. The bankruptcy is intended to be used to complete a sale of substantially all of the companies' assets and Erickson has entered into a stalking horse asset purchase agreement with Redwood Capital Investments, LLC. More details on the bankruptcy filing are available in an earlier post, which can be found here.

The members of the Creditors' Committee are:

(1) BNY Mellon Corporate Trust

(2) W.H. Boyer

(3) Regional Construction Resources, Inc.

(4) Northwest Electric, Inc.

(5) Windsor OH Holdings, LLC

netDockets has made a complimentary copy of the UCC appointment available on JDSupra.

About netDockets:

With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.

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Creditors' Committee for Catholic Diocese of Wilmington Appointed

2009-11-08T07:30:00.000-08:00

The United States Trustee for Region Three announced the appointment of the Official Committee of Unsecured Creditors in the Catholic Diocese of Wilmington, Inc. bankruptcy case on Thursday. The diocese filed for chapter 11 protection on October 18th in order to "provide the fairest possible treatment of all victims of sexual abuse by priests of [the] Diocese" according to a press release reporting the bankruptcy filing. More details regarding the bankruptcy filing can be found in an earlier post, available here.

The members of the Creditors' Committee are listed in the notice (a link to a copy of the notice is provided below).

netDockets has made a complimentary copy of the UCC appointment notice available on JDSupra.

About netDockets:

With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.

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Accuride Seeks Approval of Settlement of NLRB Charges with UAW

2009-11-03T19:38:00.000-08:00

Earlier today, Accuride Corporation sought bankruptcy court approval of a settlement agreement between its affiliate, Gunite Corporation (also a debtor in the bankruptcy cases), and International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (commonly referred to as the United Auto Workers or the UAW) and its Local 718. The proposed agreement settles a complaint brought by the UAW against Gunite before the National Labor Relations Board (Case 33-CA-15554). The complaint alleges that Gunite undertook certain inappropriate acts in negotiations over a new collective bargaining agreement, including an employee lockout of almost four months.

In the NLRB complaint, the UAW asserted that Gunite violated the National Labor Relations Act in three ways: (1) by illegally locking out Gunite's employees, (2) by signing a CBA with Local 718 despite Local 718 not being the exclusive collective bargaining representative of the employees, and (3) failing to recognize and bargain with the International UAW. Following a two-day trial, Administrative Law Judge George Carlson II found in favor of the UAW.

The settlement is the result of bargaining between the UAW and Gunite following the NLRB ruling. Under the settlement, Gunite would pay gross back-pay to employees in the amount of $76,141.24 and the UAW would request the withdrawal of its unfair labor practice charge.

netDockets has made a complimentary copy of the settlement motion available on JDSupra.

About netDockets:

With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.

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Capmark Financial Creditors' Committee Appointed

2009-11-03T19:06:00.001-08:00

The United States Trustee filed a notice announcing the appointment of an Official Committee of Unsecured Creditors for Capmark Financial Group Inc. and its affiliates yesterday. Capmark filed for bankruptcy protection in Delaware on October 25, 2009 (details on the company and the bankruptcy filing can be found in an earlier post).

The members of the Creditors' Committee are:

JPMorgan Chase Bank, N.A.
The Royal Bank of Scotland, plc
Wilmington Trust FSB, as Indenture Trustee for 6.3% Notes
The Varde Fund IX, L.P.
Law Debenture Trust Company of New York, as Indenture Trustee

About netDockets:

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600-1,000 More Bank Failures?

2009-11-03T07:23:00.000-08:00

Cypress Group Partner J. Patrick Cave on lawmakers' effort to curb bank failures.

Magna Entertainment Seeks Incentive Plan for Key Employees

2009-11-02T19:13:00.000-08:00

On Friday, Magna Entertainment Corp. requested court authority to implement a key employee incentive plan. Magna and certain affiliates filed for bankruptcy protection in Delaware on March 5, 2009. The companies are one of the leading owners and operators of horse racetracks in North America and owns, among others, Pimlico Race Course (home of the Preakness Stakes, the second leg of horse racing's legendary Triple Crown). The companies also supply live racing content to inter-track, off-track betting (OTB) and account-wagering markets.

Magna and its affiliates are in the midst of auction and sale processes for pools of their assets. According to Friday's motion, the on-going sales process requires "certain of the Debtors' employees to undertake meaningful responsibilities in addition to their day-to-day functions." As a result, Magna's management and advisors, in consultation with the Official Committee of Unsecured Creditors, has determined that implementation of a KEIP is necessary to incentivize these employees.

The proposed KEIP utilizes payment milestones that reflect the terms of Magna's amended debtor-in-possession (DIP) credit agreement. Covered employees (of which there are only five) would receive 1/3 of their total KEIP payment on achievement of each of three objectives (related to sales of assets and confirmation of a chapter 11 plan). The incentive payment would be set at 50% of the participant's base salary with an overall cap of $600,000 for KEIP awards.

netDockets has made a complimentary copy of the KEIP motion available on JDSupra.

About netDockets:

With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.

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Motors Liquidation Co. (f/k/a General Motors Corp.) Reports Financial Results

2009-11-02T19:11:00.000-08:00

On Sunday, Motors Liquidation Company (formerly known as General Motors Corporation) filed a monthly operating report with the bankruptcy court in New York. The report covers the period from July 10, 2009 through August 31, 2009 and provides financial details on the wind-down of GM's bankruptcy estates. Among the most interesting details contained in the report:

- The estates (which generated income of less than $4 million during the period from rental payments) lost $62.8 million. The largest expenses were SG&A ($41.8 million), reorganization items ($16.3 million) and interest ($8.6 million).

- The estates ended August with slightly more than $1.5 billion in assets, the majority of which ($1.14 billion) is in cash and cash equivalents. However, the estates have current liabilities of $1.3 billion, including $1.175 billion owing under their debtor-in-possession financing facility (a wind-down facility provided by the U.S. Treasury and Export Development of Canada). The estates' total liabilities are listed as being in excess of $35 billion.

- According to the notes to the financial statements, Motors Liquidation expects that it will have enough cash to pay administrative claims in full but will not have sufficient cash to pay off the wind-down DIP facility claims. As a result, creditors other than the DIP lenders are unlikely to receive any recovery on account of their claims other than equity in the new GM.

netDockets has made a complimentary copy of the monthly operating report available on JDSupra.

About netDockets:

With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.

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WSJ: Will CIT Group Emerge From Bankruptcy?

2009-11-02T13:55:00.000-08:00

WSJ's Mike Spector tells Dennis Berman while it's rare for financial firms to come out of Chapter 11, CIT might be the exception to the rule.

CIT Group Files for Chapter 11 Protection

2009-11-01T13:08:00.000-08:00

Image by Getty Images via Daylife

On Sunday afternoon, CIT Group Inc. filed a voluntary chapter 11 petition in the United States Bankruptcy Court for the Southern District of New York. The company's press release announcing the filing discussed the company's plans for a quick, prepackaged bankruptcy:

NEW YORK--(BUSINESS WIRE)--CIT Group
Inc. (NYSE: CIT), a leading provider of financing to small businesses and middle market companies, today announced that, with the overwhelming support of its debtholders, the Board of Directors voted to proceed with the prepackaged plan of reorganization for CIT Group Inc. and a subsidiary that will restructure the Company’s debt and streamline its capital structure.

Importantly, none of CIT’s operating subsidiaries, including CIT Bank, a Utah state bank, will be included in the filings. As a result, all operating entities are expected to continue normal operations during the pendency of the cases.

All classes voted to accept the prepackaged plan and all were substantially in excess of the required thresholds for a successful vote. Approximately 85% of the Company’s eligible debt participated in the solicitation, and nearly 90% of those participating supported the prepackaged plan of reorganization.

Similarly, approximately 90% of the number of debtholders voting, both large and small, cast affirmative votes for the prepackaged plan. The conditions for consummating the exchange offers were not met.

Accordingly, CIT’s Board of Directors approved the Company to proceed with the voluntary filings for CIT Group Inc. and CIT Group Funding Company of Delaware LLC with the U.S. Bankruptcy Court for the Southern District of New York (“the Court”).

Due to the overwhelming and broad support from its debtholders, the Company is asking the Court for a quick confirmation of the approved prepackaged plan. Under the plan, CIT expects to reduce total debt by approximately $10 billion, significantly reduce its liquidity needs over the next three years, enhance its capital ratios and
accelerate its return to profitability.

netDockets has made a complimentary copy of CIT Group's chapter 11 petition available on JDSupra.

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Two Recticel Affiliates File for Chapter 11 to Reject Customer Contracts

2009-11-01T07:12:00.000-08:00

On Thursday, Recticel North America, Inc. and Recticel Interiors North America, LLC, both wholly-owned indirect subsidiaries of Recticel N.V./S.A. (a global manufacturer of a wide range of foams and synthetic compounds that are primarily used in the automotive, bedding, and building industries), voluntarily filed for chapter 11 protection in the Eastern District of Michigan. Both companies are headquartered in Michigan (Recticel NA in Auburn Hills and Recticel Interiors NA in Clarkston) and they operate manufacturing facilities in Michigan and Tuscaloosa, Alabama. The companies are represented by Pepper Hamilton LLP in the bankruptcy cases.

Recticel Interiors is a "leading manufacturer of polyurethane sprayed skins and components for car interior trim including dashboards, glove boxes and door panels." Its products are used by Mercedes-Benz, Cadillac, Buick and others. Recticel North America manufactures light-stable polyurethane Colofast® compounds, which are then sold to Recticel Interiors for use in manufacturing its products. Recticel North America's Colofast® compounds are also sold to BASF SE for use in the manufacture of car window encapsulations.

The companies blamed their bankruptcy filings on unfavorable contracts with their Recticel Interiors North America's two largest customers, Johnson Controls, Inc. and Inteva Products, LLC. Combined, these two customers comprise approximately 80% of Recticel Interiors NA's sales (both are tier one suppliers to Mercedes-Benz). According to documents filed with the bankruptcy court, Recticel estimates that it is losing $600,000 a month as a result of its contract with Johnson Controls and $265,000 a month because of its Inteva contract. Recticel reports that it has unsuccessfully attempted to negotiate consensual price increases with Johnson Controls, Inteva and Mercedes-Benz. Recticel now seeks to use the rejection powers of the Bankruptcy Code to force renegotiation of those contracts, among others.

netDockets has made a complimentary copy of Recticel North America's petition available on JDSupra.

About netDockets:

With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.

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Details of Lyondell Chemical's September Monthly Operating Report

2009-11-01T05:08:00.000-08:00

On Friday, Lyondell Chemical Company and 93 affiliates filed their consolidated monthly operating report for the month of September. The monthly operating report contains (1) a combined statement of income, (2) a combined balance sheet, (3) a combined statement of cash flows, (4) notes to the financial statements, (5) a schedule of disbursements, and (6) responses to a debtor questionnaire. Note that the financial statements contained in the monthly operating report are prepared solely for the purpose of complying with the reporting requirements of the bankruptcy court and are not audited.

Among the highlights of Lyondell's September results:

- Lyondell reported a net loss of $436 million on revenue of $1.59 billion. Lyondell had operating income of $64 million in September, but reorganization expenses of $821 million.

- Lyondell reported total assets of $21.6 billion at the end of September, including almost $4.5 billion in current assets. However, Lyondell's liabilities exceeded its assets by in excess of $10 billion. Over $22.2 billion of Lyondell's liabilities are listed as being subject to compromise.

- Lyondell's cash balance increased by $137 million in September. $170 million in cash was provided by operating activities, but that was partially offset by $135 million in repayments on Lyondell's debtor-in-possession (or DIP) credit facility ($120 million of which was apparently funded through loan repayments by non-debtor affiliates).

netDockets has made a complimentary copy of the monthly operating report available on JDSupra.

About netDockets:

With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.

Learn more and sign up for a free trial account by visiting http://www.netdockets.com/. In addition, please contact us directly to learn more about special free trial and payment options for mid-size and large law firms. Contact information can be found on our JDSupra profile page and at http://www.netdockets.com/.

Cato Institute: Fallout from the Chrysler Bankruptcy

2009-10-31T12:04:00.000-07:00

NPR Planet Money: Can GM Ever Pay Us Back?

2009-10-31T12:02:00.000-07:00

Since the start of the financial crisis, the U.S. government has put $50 billion into General Motors. After GM emerged from bankruptcy this year, the public owned 61 percent of the stock of the newly reconstituted company. How much of that $50 billion will the American taxpayer get back? CEO Fritz Henderson says business at GM is getting better, which is at least a hopeful sign for repayment. But the situation at GM is so complicated, Henderson says, that he can't say yet how much money GM will be able to return to the public coffers. Longtime auto analyst John Casesa has crunched the numbers we have. He says GM would have to do everything right, in a strong economy, to pay back what it owes. Meanwhile, a Congressional Oversight Panel report says the public will get back less than half the money it used to bail out GM and Chrysler.

Icahn on CIT Deal

2009-10-31T01:34:00.002-07:00

From Fox Business: Billionaire investor Carl Icahn on why the bondholders will take control of the small-business lender.

Bernie Madoff's Jailhouse Interview

2009-10-31T01:34:00.001-07:00

CNBC's Scott Cohn has the full story on Bernie Madoff's interview.

Airtime: Fri. Oct. 30 2009 | 4:19 PM ET