12 « November « 2008 « Our Blog Has Moved! Find Us at www.netdocketsblog.com

Bankruptcy and Corporate Restructuring News (November 12, 2008)

November 12, 2008 · 1 Comment

From the Wall Street Journal: Surveys Underscore Grim Outlook for Holidays
From the Wall Street Journal: Democrats Plot Detroit Rescue
From the Wall Street Journal: Obama’s Car Puzzle
From the Wall Street Journal: TIC Pain
From Bloomberg: Pelosi’s Auto-Rescue Plan Sets Up Clash With Bush
From Bloomberg: Alitalia Sale Wins EU Approval; State Loan Rejected

News Headlines Provided By:

Categories: Bankruptcy and Restructuring News
Tagged: alitalia, automotive, bankrupcy, bankrupt, barack obama, chapter 11, chrysler, corporate restructuring, detroit, ford, general motors, gm, headlines, law, legal, nancy pelosi, news, research, retail sales, retailers, tenant-in-common, tenants-in-common, tic

Delphi Corporation Files Quarterly Operating Report – $121 Million Operating Loss

November 12, 2008 · 1 Comment

Delphi Corporation has filed its quarterly operating report for the three-month period ended September 30, 2008. Among the highlights:

Delphi reported an operating loss of $121 million for the quarter on net sales of $1.9 billion. However, that operating loss includes $254 million of pre-tax earnings credited against Delphi’s operating expenses as a result of amounts received from General Motors Corp. pursuant to the Master Restructuring Agreement.
Of Delphi’s $1.9 billion in net sales, $973 million (or 50.3%) were to GM and its affiliates
Delphi reported net income for the quarter of $5.2 billion, but that included a net reorganization gain of $5.3 billion as a result of the Global Settlement Agreement with GM and an additional $355 million in pre-tax earnings as a result of the Master Restructuring Agreement with GM. Therefore, excluding the impact of these GM agreements, Delphi would have reported a net loss of approximately $440 million.
Delphi reported cash and cash equivalents increased by $988 million during the period and that the company ended the quarter with $1.1 billion in cash. However, this increase in cash is again due to the two agreements with GM referenced above, as Delphi received net cash of $1.2 billion from GM under the agreements during the quarter ($641 million under the GSA and $559 million under the MRA). Delphi also had net borrowings under its debtor-in-possession (or DIP) financing facility of $154 million during the quarter.

Download Delphi’s quarterly operating report and every other document filed in Delphi’s bankruptcy case and the bankruptcy cases of over 340 other large companies. Sign up for a free trial of the netDockets system today and get $100 of free research.

Categories: Bankruptcy and Restructuring News · Major Bankruptcy Case Events
Tagged: automotive, balance sheet, bankrupt, bankruptcy, cash flow, chapter 11, delphi, delphi corporation, detroit, financial results, general motors, global settlement, gm, income statement, law, legal, master restructuring, net loss, operating loss, operating report, parts supplier, quarterly, reseach, southern district of new york

Deutsche Bank Files Complaint Against Lehman Brothers in Bankruptcy Court

November 12, 2008 · Leave a Comment

Deutsche Bank AG filed an adversary complaint against Lehman Brothers Holdings, Inc. on Tuesday requesting that the bankruptcy court order Lehman Brothers to return $72.5 million that Deutsche Bank asserts it mistakenly transferred to Lehman Brothers on September 26, 2008. Deutsche Bank asserts in the complaint that it intended to transfer the funds to a counter party (presumably unrelated to Lehman) under an ISDA Master Agreement but had incorrect wire instructions on file. Deutsche Bank claims that it has requested return of the funds from Lehman but Lehman has refused, asserting that Deutsche Bank owes Lehman $290 million under other agreements (an assertion that Deutsche Bank denies in the complaint).

Download a copy of the complaint and research every document filed in over 340 of the largest corporate bankruptcy cases using netDockets. Sign up now for a free trial account and your first $100 of research is free.

Categories: Bankruptcy and Restructuring News · Major Bankruptcy Case Events
Tagged: adversary, bankrupt, bankruptcy, chapter 11, complaint, deutsche bank, isda, law, lawsuit, legal, lehman, lehman brothers, research, setoff

Disclosure Statement Hearing in TOUSA Bankruptcy Postponed Indefinitely

November 12, 2008 · Leave a Comment

Bankrupt homebuilder and financial services company TOUSA, Inc. filed a pleading on Tuesday notifying parties in its bankruptcy case that the hearing to consider approval of the debtors’ Disclosure Statement was being postponed indefinitely.

You can find the rest of this posting at our new blog location: www.netdocketsblog.com.

Categories: Bankruptcy and Restructuring News · Disclosure Statement · Major Bankruptcy Case Events · Plan of Reorganization
Tagged: adjournment, bankrupt, bankruptcy, chapter 11, Disclosure Statement, financial services, hearing, homebuilder, law, legal, Plan of Reorganization, postponement, research, tousa

ATA Airlines Seeks Approval of Bidding Procedures to Sell 3 Lockheed L1011-500 Aircraft

November 12, 2008 · Leave a Comment

ATA Airlines, Inc., which has ceased operations and is in the process of liquidating, has sought court approval of bidding procedures in order to sell three of its remaining aircraft – all Lockheed L1011-500s. The motion asserts that ATA has received “expressions of interest” in the aircraft, but there is no stalking horse bidder for the planes. The motion requests a bid deadline of December 12, 2008 at 5:00 p.m.

Research every major corporate bankruptcy case of the last decade using the netDockets Precedent Research System. Sign up now and receive your first $100 of research free with no commitment – cancel your account at any time.