Fees, expenses for Detroit bankruptcy hit nearly $178 million

Tue Dec 30, 2014 5:52pm EST

Dec 30 (Reuters) - Detroit's historic bankruptcy, which officially ended earlier this month, cost the city nearly $178 million in fees and expenses for teams of lawyers and consultants, according to a city court filing on Tuesday.

Jones Day, Detroit's lead law firm for the biggest-ever municipal bankruptcy which was filed by the city in July 2013, billed the most by far, at $57.9 million.

The city, which exited bankruptcy on Dec. 10 , paid a total of nearly $165 million out of its general fund budget for professional fees for itself and for a court-appointed committee representing Detroit retirees, as well as for a fee examiner, court mediators and experts hired by U.S. Bankruptcy Judge Steven Rhodes, the filing showed. That amount was $12 million under the $177 million Detroit had budgeted in its plan to adjust $18 billion of debt and obligations.

The city also reported $1.04 million in fees paid out of an enterprise fund and almost $12 million in fees paid by its two pension funds.

Rhodes on Dec. 15 ordered the city to file a final disclosure of fees and expenses by Tuesday, noting that he "will determine what further process is appropriate to determine the reasonableness of fees."

Rhodes had sent the city and its bankruptcy team into mediation over the fees after Detroit officials raised concerns that burgeoning legal costs could eat in to money needed for city services. On Dec. 11, court mediators announced fee deals subject to Rhodes' approval were reached, but did not disclose any details.

(Reporting by Karen Pierog in Chicago and Lisa Lambert in Washington; editing by Matthew Lewis)

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PRESS DIGEST- Wall Street Journal - Dec 31

Wed Dec 31, 2014 12:44am EST

Dec 31 (Reuters) - The following are the top stories in the Wall Street Journal. Reuters has not verified these stories and does not vouch for their accuracy.

* The day after Sony Pictures employees discovered that company email was unusable following a cyberattack, senior executives came up with an old-style communication network: a phone tree, in which updates on the hack were relayed from person to person. (on.wsj.com/1wzl90v)

* Harold Hamm, the chief executive of Continental Resources Inc, is contesting his November divorce settlement, saying an Oklahoma judge's order to pay his ex-wife nearly $1 billion is too rich. (on.wsj.com/1Bhg8hy)

* Fosun International Ltd has agreed to buy Meadowbrook Insurance Group Inc for about $433 million, a deal that expands the Chinese conglomerate's core insurance business and opens the door to the U.S. property and casualty market. The $8.65-a-share offer represents a 21 percent premium over Meadowbrook's $7.13 closing price on Tuesday. (on.wsj.com/1CSsz7u)

* The White House pushed back against criticism from some cybersecurity experts who have challenged the government's conclusion that North Korea was behind the hacking of Sony Pictures Entertainment Inc. On Monday, engineers from Norse Corp, a cybersecurity firm, met with FBI officials to lay out their own theory that a small hacking gang including former Sony employees was involved in the cyberattack on Sony, said Norse Vice-President Kurt Stammberger. (on.wsj.com/1xf6AUZ)

* Thirty-six states are now experiencing high levels of flu activity, according to the Centers for Disease Control and Prevention in Atlanta, as this year's flu vaccine may not fully protect against a strain known as influenza A H3N2 that is currently circulating and tends to be more severe. (on.wsj.com/1vqSrhZ)

* The U.S. Labor Department's wage law enforcer is being confronted with issues including the growth of outsourcing and changes in the independent workforce, controversies over the legal definition of an "employer" at companies like McDonald's Corp and their franchisees, and a flurry of activism on the minimum wage. (on.wsj.com/1EGOyAi)

* The New Hampshire company that fell into bankruptcy following a failed deal with Apple Inc is asking to pay millions in bonuses to its senior executives. Pay enhancement is necessary to motivate "the key drivers" in GT Advanced Technologies Inc's bid to restore its business in bankruptcy, lawyers said. (on.wsj.com/1zOrk8a) (Compiled by Zara Mascarenhas in Bengaluru)

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Lehman brokerage trustee, Pimco settle U.S. bankruptcy claims

By Jonathan Stempel

NEW YORK Fri Jan 2, 2015 3:15pm EST

NEW YORK Jan 2 (Reuters) - The trustee liquidating Lehman Brothers Holdings Inc's brokerage unit has agreed with Pacific Investment Management Co unit to resolve $187.4 million of the money management firm's customer claims, likely at a fraction of their estimated value.

According to papers filed on Wednesday with the U.S. bankruptcy court in Manhattan, Pimco will no longer be able to pursue customer claims, and will instead receive $146.6 million of general unsecured creditor claims against the brokerage, Lehman Brothers Inc.

The brokerage's estate would pay up to $20 million of cash on the claims, and $25.6 million of disputed collateral would be returned to Pimco clients. Another $4.9 million of collateral would be returned to the brokerage's estate.

James Giddens, the Lehman brokerage trustee, said the accord would resolve the "vast majority" of remaining disputed customer claims in the Pimco case.

The settlement requires court approval at a hearing set for Jan. 22. The Wall Street Journal reported on the accord earlier on Friday.

Giddens has already repaid roughly $105 billion to 111,000 former Lehman customers, who have been paid in full, and other creditors whose claims had higher priority.

Unsecured creditors started receiving payments in September, six years after Lehman, which had been Wall Street's fourth-largest investment bank, filed for Chapter 11. The bankruptcy remains by far the largest in U.S. history.

Pimco is a unit of German insurer Allianz SE. It oversaw $1.87 trillion of assets as of Sept. 30, 2014, but has suffered large redemptions since co-founder Bill Gross resigned suddenly on Sept. 26 to join Janus Capital Group Inc.

The case is In re: Lehman Brothers Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-01420. (Reporting by Jonathan Stempel in New York; Editing by Lisa Shumaker)

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Fees, expenses for Detroit bankruptcy hit nearly $178 million

Tue Dec 30, 2014 5:52pm EST

Dec 30 (Reuters) - Detroit's historic bankruptcy, which officially ended earlier this month, cost the city nearly $178 million in fees and expenses for teams of lawyers and consultants, according to a city court filing on Tuesday.

Jones Day, Detroit's lead law firm for the biggest-ever municipal bankruptcy which was filed by the city in July 2013, billed the most by far, at $57.9 million.

The city, which exited bankruptcy on Dec. 10 , paid a total of nearly $165 million out of its general fund budget for professional fees for itself and for a court-appointed committee representing Detroit retirees, as well as for a fee examiner, court mediators and experts hired by U.S. Bankruptcy Judge Steven Rhodes, the filing showed. That amount was $12 million under the $177 million Detroit had budgeted in its plan to adjust $18 billion of debt and obligations.

The city also reported $1.04 million in fees paid out of an enterprise fund and almost $12 million in fees paid by its two pension funds.

Rhodes on Dec. 15 ordered the city to file a final disclosure of fees and expenses by Tuesday, noting that he "will determine what further process is appropriate to determine the reasonableness of fees."

Rhodes had sent the city and its bankruptcy team into mediation over the fees after Detroit officials raised concerns that burgeoning legal costs could eat in to money needed for city services. On Dec. 11, court mediators announced fee deals subject to Rhodes' approval were reached, but did not disclose any details.

(Reporting by Karen Pierog in Chicago and Lisa Lambert in Washington; editing by Matthew Lewis)

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PRESS DIGEST- Wall Street Journal - Dec 31

Wed Dec 31, 2014 12:44am EST

Dec 31 (Reuters) - The following are the top stories in the Wall Street Journal. Reuters has not verified these stories and does not vouch for their accuracy.

* The day after Sony Pictures employees discovered that company email was unusable following a cyberattack, senior executives came up with an old-style communication network: a phone tree, in which updates on the hack were relayed from person to person. (on.wsj.com/1wzl90v)

* Harold Hamm, the chief executive of Continental Resources Inc, is contesting his November divorce settlement, saying an Oklahoma judge's order to pay his ex-wife nearly $1 billion is too rich. (on.wsj.com/1Bhg8hy)

* Fosun International Ltd has agreed to buy Meadowbrook Insurance Group Inc for about $433 million, a deal that expands the Chinese conglomerate's core insurance business and opens the door to the U.S. property and casualty market. The $8.65-a-share offer represents a 21 percent premium over Meadowbrook's $7.13 closing price on Tuesday. (on.wsj.com/1CSsz7u)

* The White House pushed back against criticism from some cybersecurity experts who have challenged the government's conclusion that North Korea was behind the hacking of Sony Pictures Entertainment Inc. On Monday, engineers from Norse Corp, a cybersecurity firm, met with FBI officials to lay out their own theory that a small hacking gang including former Sony employees was involved in the cyberattack on Sony, said Norse Vice-President Kurt Stammberger. (on.wsj.com/1xf6AUZ)

* Thirty-six states are now experiencing high levels of flu activity, according to the Centers for Disease Control and Prevention in Atlanta, as this year's flu vaccine may not fully protect against a strain known as influenza A H3N2 that is currently circulating and tends to be more severe. (on.wsj.com/1vqSrhZ)

* The U.S. Labor Department's wage law enforcer is being confronted with issues including the growth of outsourcing and changes in the independent workforce, controversies over the legal definition of an "employer" at companies like McDonald's Corp and their franchisees, and a flurry of activism on the minimum wage. (on.wsj.com/1EGOyAi)

* The New Hampshire company that fell into bankruptcy following a failed deal with Apple Inc is asking to pay millions in bonuses to its senior executives. Pay enhancement is necessary to motivate "the key drivers" in GT Advanced Technologies Inc's bid to restore its business in bankruptcy, lawyers said. (on.wsj.com/1zOrk8a) (Compiled by Zara Mascarenhas in Bengaluru)

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Lehman brokerage trustee, Pimco settle U.S. bankruptcy claims

By Jonathan Stempel

NEW YORK Fri Jan 2, 2015 3:15pm EST

NEW YORK Jan 2 (Reuters) - The trustee liquidating Lehman Brothers Holdings Inc's brokerage unit has agreed with Pacific Investment Management Co unit to resolve $187.4 million of the money management firm's customer claims, likely at a fraction of their estimated value.

According to papers filed on Wednesday with the U.S. bankruptcy court in Manhattan, Pimco will no longer be able to pursue customer claims, and will instead receive $146.6 million of general unsecured creditor claims against the brokerage, Lehman Brothers Inc.

The brokerage's estate would pay up to $20 million of cash on the claims, and $25.6 million of disputed collateral would be returned to Pimco clients. Another $4.9 million of collateral would be returned to the brokerage's estate.

James Giddens, the Lehman brokerage trustee, said the accord would resolve the "vast majority" of remaining disputed customer claims in the Pimco case.

The settlement requires court approval at a hearing set for Jan. 22. The Wall Street Journal reported on the accord earlier on Friday.

Giddens has already repaid roughly $105 billion to 111,000 former Lehman customers, who have been paid in full, and other creditors whose claims had higher priority.

Unsecured creditors started receiving payments in September, six years after Lehman, which had been Wall Street's fourth-largest investment bank, filed for Chapter 11. The bankruptcy remains by far the largest in U.S. history.

Pimco is a unit of German insurer Allianz SE. It oversaw $1.87 trillion of assets as of Sept. 30, 2014, but has suffered large redemptions since co-founder Bill Gross resigned suddenly on Sept. 26 to join Janus Capital Group Inc.

The case is In re: Lehman Brothers Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-01420. (Reporting by Jonathan Stempel in New York; Editing by Lisa Shumaker)

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Deals of the day- Mergers and acquisitions

Tue Dec 30, 2014 4:00pm EST

Dec 30 (Reuters) - The following bids, mergers, acquisitions and disposals were reported by 2100 GMT on Tuesday:

** China's top two trainmakers said they will merge, creating a $26 billion company able to compete with the likes of Germany's Siemens AG and Canada's Bombardier Inc for global rail deals.

** A Qatari-led $4 billion bid for Songbird Estates , majority owner of London's Canary Wharf financial district, has received backing from U.S. fund manager Franklin Mutual Advisers, the bidders said in their final offer document published.

** Bankrupt cancer vaccine maker Dendreon Corp will move ahead with a court-supervised auction of the company without a customary initial bidder, known as a stalking horse, the company's attorney said on Monday.

** Commercial Bank of Kuwait KSC has cut its stake in Boubyan Bank KSC to about 12.7 percent from the 19.9 percent which it held in September, CBK's chief executive said. ($1 = 0.64 pounds) (Compiled by Yashaswini Swamynathan in Bengaluru)

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Fees, expenses for Detroit bankruptcy hit nearly $178 million

Tue Dec 30, 2014 5:52pm EST

Dec 30 (Reuters) - Detroit's historic bankruptcy, which officially ended earlier this month, cost the city nearly $178 million in fees and expenses for teams of lawyers and consultants, according to a city court filing on Tuesday.

Jones Day, Detroit's lead law firm for the biggest-ever municipal bankruptcy which was filed by the city in July 2013, billed the most by far, at $57.9 million.

The city, which exited bankruptcy on Dec. 10 , paid a total of nearly $165 million out of its general fund budget for professional fees for itself and for a court-appointed committee representing Detroit retirees, as well as for a fee examiner, court mediators and experts hired by U.S. Bankruptcy Judge Steven Rhodes, the filing showed. That amount was $12 million under the $177 million Detroit had budgeted in its plan to adjust $18 billion of debt and obligations.

The city also reported $1.04 million in fees paid out of an enterprise fund and almost $12 million in fees paid by its two pension funds.

Rhodes on Dec. 15 ordered the city to file a final disclosure of fees and expenses by Tuesday, noting that he "will determine what further process is appropriate to determine the reasonableness of fees."

Rhodes had sent the city and its bankruptcy team into mediation over the fees after Detroit officials raised concerns that burgeoning legal costs could eat in to money needed for city services. On Dec. 11, court mediators announced fee deals subject to Rhodes' approval were reached, but did not disclose any details.

(Reporting by Karen Pierog in Chicago and Lisa Lambert in Washington; editing by Matthew Lewis)

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PRESS DIGEST- Wall Street Journal - Dec 31

Wed Dec 31, 2014 12:44am EST

Dec 31 (Reuters) - The following are the top stories in the Wall Street Journal. Reuters has not verified these stories and does not vouch for their accuracy.

* The day after Sony Pictures employees discovered that company email was unusable following a cyberattack, senior executives came up with an old-style communication network: a phone tree, in which updates on the hack were relayed from person to person. (on.wsj.com/1wzl90v)

* Harold Hamm, the chief executive of Continental Resources Inc, is contesting his November divorce settlement, saying an Oklahoma judge's order to pay his ex-wife nearly $1 billion is too rich. (on.wsj.com/1Bhg8hy)

* Fosun International Ltd has agreed to buy Meadowbrook Insurance Group Inc for about $433 million, a deal that expands the Chinese conglomerate's core insurance business and opens the door to the U.S. property and casualty market. The $8.65-a-share offer represents a 21 percent premium over Meadowbrook's $7.13 closing price on Tuesday. (on.wsj.com/1CSsz7u)

* The White House pushed back against criticism from some cybersecurity experts who have challenged the government's conclusion that North Korea was behind the hacking of Sony Pictures Entertainment Inc. On Monday, engineers from Norse Corp, a cybersecurity firm, met with FBI officials to lay out their own theory that a small hacking gang including former Sony employees was involved in the cyberattack on Sony, said Norse Vice-President Kurt Stammberger. (on.wsj.com/1xf6AUZ)

* Thirty-six states are now experiencing high levels of flu activity, according to the Centers for Disease Control and Prevention in Atlanta, as this year's flu vaccine may not fully protect against a strain known as influenza A H3N2 that is currently circulating and tends to be more severe. (on.wsj.com/1vqSrhZ)

* The U.S. Labor Department's wage law enforcer is being confronted with issues including the growth of outsourcing and changes in the independent workforce, controversies over the legal definition of an "employer" at companies like McDonald's Corp and their franchisees, and a flurry of activism on the minimum wage. (on.wsj.com/1EGOyAi)

* The New Hampshire company that fell into bankruptcy following a failed deal with Apple Inc is asking to pay millions in bonuses to its senior executives. Pay enhancement is necessary to motivate "the key drivers" in GT Advanced Technologies Inc's bid to restore its business in bankruptcy, lawyers said. (on.wsj.com/1zOrk8a) (Compiled by Zara Mascarenhas in Bengaluru)

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Deals of the day- Mergers and acquisitions

Tue Dec 30, 2014 4:00pm EST

Dec 30 (Reuters) - The following bids, mergers, acquisitions and disposals were reported by 2100 GMT on Tuesday:

** China's top two trainmakers said they will merge, creating a $26 billion company able to compete with the likes of Germany's Siemens AG and Canada's Bombardier Inc for global rail deals.

** A Qatari-led $4 billion bid for Songbird Estates , majority owner of London's Canary Wharf financial district, has received backing from U.S. fund manager Franklin Mutual Advisers, the bidders said in their final offer document published.

** Bankrupt cancer vaccine maker Dendreon Corp will move ahead with a court-supervised auction of the company without a customary initial bidder, known as a stalking horse, the company's attorney said on Monday.

** Commercial Bank of Kuwait KSC has cut its stake in Boubyan Bank KSC to about 12.7 percent from the 19.9 percent which it held in September, CBK's chief executive said. ($1 = 0.64 pounds) (Compiled by Yashaswini Swamynathan in Bengaluru)

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