Bankruptcy Blogs

This week on The Broke and the Beautiful, a New Orleans celebrity chef put his business ventures in bankruptcy, and the rescuer of Twinkies may be eyeing an NFL creampuff. Also, Alec Baldwin got a key to the city.

On Monday, a bankruptcy judge could clear Platinum Partners Value Arbitrage Fund LP to take over struggling Glacial Energy Holdings Inc. after winning a bankruptcy auction earlier this month.

The value of Platinum Partners’ winning offer hasn’t been disclosed in documents filed to the U.S. Bankruptcy Court in Wilmington, Del. Throughout the case, Glacial Energy was able to spend a $122 million bankruptcy loan from a senior lender, which had also offered to purchase Glacial Energy out of bankruptcy but lost at auction.

The U.S. Supreme Court ruled that certain money inherited from individual retirement accounts can be taken by creditors to cover the debts of people in bankruptcy proceedings.

Wall Street Journal

Lenders are making it rain for companies with junk ratings, according to the Journal. "Lending to weaker companies on easy terms is becoming more and more common as investors' appetite for higher-yielding debt grows stronger and the Federal Reserve keeps money flowing at ultralow rates," the paper reports. Banks are also forgoing loan requirements, such as periodic debt testing, which are meant to keep companies' financial health in check. What could go wrong? ...

A former law partner of Ponzi-scheme operator Scott Rothstein pleaded guilty to a criminal charge this week.

With Stuart Rosenfeldt’s guilty plea, to a count of criminal conspiracy, all three name partners of the now-defunct Florida law firm Rothstein Rosenfeldt Adler have admitted to criminal activity.