Bankruptcy Trends

It’s been well over a year since the U.S. Supreme Court handed down a decision in Stern vs. Marshall that called into question the authority of bankruptcy judges to decide certain issues. Although some of the storm has calmed since then, according to a group of bankruptcy judges speaking on a panel at an American Bankruptcy Institute conference in Washington Friday, it’s clear that the wound is still fresh.

“I was offended by the opinion,” said Judge Mary Walrath of the U.S. Bankruptcy Court in Wilmington, Del., referring to the 5-4 Supreme Court decision.

Ally Financial Inc. is worried that the proposed sale of Residential Capital LLC’s mortgage-servicing platform might hamstring ResCap’s promise to abide by the terms of a landmark national mortgage settlement. Read the Daily Bankruptcy Review article here.

American A

Digital Domain Media Group Inc . said it filed for Chapter 11 bankruptcy and agreed to sell its core business to private investment firm Searchlight Capital Partners LP for $15 million. Click here to read the article in DBR Small Cap.

A judge cleared Central Falls, R.I., to emerge from Chapter 9 protection with a plan that would forgive some of its debts and finalize cuts to its retirees’ pension plans. Read the DBR Small Cap article here.