U.S. judge rejects creditors' request to remove Caesars' lawyers

CHICAGO Oct 29 A judge has rejected an unusual attempt by junior bondholders of Caesars Entertainment's bankrupt operating unit to disqualify law firm Kirkland & Ellis from leading the casino group's $18 billion Chapter 11 restructuring.

Jones Day, the junior bondholders' law firm, had asked the court to reconsider a May order that allowed the bankrupt unit of Caesars Entertainment Corp to hire Kirkland, led by a lawyer known in the industry as the "godfather of restructuring," James Sprayregen.

The fresh motion in the contentious bankruptcy case accused Sprayregen of giving misleading court testimony earlier this year regarding pre-bankruptcy work Kirkland handled for Caesars. Jones said it unearthed new evidence including minutes from a 2014 board meeting.

Jones Day's heavily redacted filing did not disclose the meeting minutes.

Allegations of misleading a court about potential conflicts have led to law firms being forced to disgorge fees and even criminal convictions. Kirkland & Ellis has billed $21 million for the case through May, according to court filings.

In his denial to consider the motion at a Nov. 18 hearing, U. S. Bankruptcy Judge Benjamin Goldgar of Illinois said Jones Day should have requested court permission before filing such a restricted document.

He said they could ask to refile the motion.

Jones Day is led by Bruce Bennett, who squared off against Sprayregen in the landmark Detroit municipal bankruptcy case.

Kirkland has overseen some of the biggest corporate bankruptcy cases in recent years, including Energy Future Holdings and United Airlines UAL Corp.

No one from Kirkland or Jones Day could immediately be reached for comment. (Reporting by Tracy Rucinski; Editing by Matthew Lewis)

.

UPDATE 1-Fraud found at Kenya's Imperial Bank but still viable - central bank

(Adds details)

NAIROBI Oct 27 (Reuters) - The receiver for Kenya's privately owned Imperial Bank (IBL) found substantial fraud but the bank is still viable and shareholders are considering a proposal to inject capital, the central bank said on Tuesday.

Imperial Bank was put into receivership this month after the board alerted the central bank to malpractices at the mid-sized lender, rattling the financial community.

The central bank said it had received a report from the receiver, Kenya Deposit Insurance Corporation (KDIC), that "confirms fraudulent activities of substantial magnitude, and the misrepresentation" of Imperial Bank's financial statements.

"The fraudulent activities have resulted in a significant shortfall in IBL's capital position," the Central Bank of Kenya said in a statement, adding that it and the receiver still considered Imperial Bank to be "viable".

But the shareholders would have to inject new capital to meet the capital shortfall in order to reopen the bank, the central bank said.

"Shareholders requested to consider the proposal over the next few days and to come back with an implementation plan for the way forward," it said.

The fraudulent activities included "irregular loans" granted by the management, and in particular that this had violated the limit on lending to a single borrower, it added. (Writing by Edmund Blair, editing by David Evans and Adrian Croft)

.

Samson Resources' CEO to quit, falling gas imperils debt plan

WILMINGTON, Del Oct 29 Samson Resources Corp's chief executive officer plans to resign, a lawyer for the bankrupt oil and gas producer told a judge on Thursday, adding that the company's six-week-old restructuring deal is in peril due to tumbling natural gas prices.

CEO Randy Limbacher will continue in his role until December to smooth the transition, said Joshua Sussberg, Samson's lawyer.

Sussberg said the continuing dive in commodity prices has unraveled the company's restructuring support agreement, or RSA, struck just before it entered bankruptcy. He said the company and lenders were negotiating for new terms to refinance.

"The initial RSA can be terminated at any moment," said Sussberg. He said milestones in the deal had not been met.

"As of yesterday, the spot price for gas was down 30 percent from commencement of this case," he said.

Samson entered bankruptcy in September with a plan to reduce its billions in debt by swapping control to a group of investors who held the company's $1 billion second-lien loan. Those lenders were also planning to buy $450 million in stock in the reorganized Samson.

Sussberg said a new deal was being negotiated that might provide less value for the holders of the company's second-lien loan.

The group of lenders includes affiliates of Cerberus Capital Management, Columbia Management, Credit Suisse, Eaton Vance Management, Invesco Ltd, New York Life Insurance Co and Silver Point Capital, according to court documents.

Holders of $2.5 billion unsecured bonds will receive almost nothing under the proposed plan.

Samson's bankruptcy comes four years after the company agreed to be acquired in a leveraged buyout led by KKR, for $7.2 billion. KKR and its partners on the buyout made a big bet on the future of shale oil and gas, investing $4.15 billion in equity on the deal. The rest was funded with debt.

The case is Samson Resources Corp, U. S. Bankruptcy Court, District of Delaware, 15-11934 (Reporting by Tom Hals in Wilmington, Delaware; Editing by David Gregorio)

.

BRIEF-Indo Internacional to delist on Oct. 29 - CNMV

What’s Next: Tomorrow’s Digital Life

Find out what’s in store for our digital-everything lives.

Sorry, I could not read the content fromt this page.

Fraud found at Imperial Bank but still viable -central bank

NAIROBI Oct 27 The receiver for Kenya's privately owned Imperial Bank found "fraudulent activities of substantial magnitude" but the bank is still viable and shareholders are considering a proposal to inject capital, the central bank said in a statement on Tuesday.

Imperial Bank was put under management this month after the board alerted the central bank to malpractices at the mid-sized lender, rattling the financial community. (Writing by Edmund Blair, editing by David Evans)

.

CORRECTED-UPDATE 1-Arch Coal ends debt swap offer amid looming bankruptcy

n" readability="38">Oct 27 (Reuters) - Arch Coal Inc moved closer to bankruptcy on Tuesday after it gave up on a debt swap proposal that had been aimed at boosting the coal miner's liquidity.

Heavily-indebted Arch Coal has been hit by weak demand and stricter regulation, factors that have already pushed Alpha Natural Resources and Patriot Coal into Chapter 11 bankruptcy protection.

Arch Coal said on Tuesday it is currently working with creditors to restructure its balance sheet.

Arch's debt restructuring plan includes swapping existing debt for longer-term securities with the aim of reducing total debt and annual interest expenses by around 20 percent.

Last week, a request by a unit of GSO Capital Partners that holds some of Arch Coal's unsecured notes seeking to prevent a group of senior lenders from blocking the debt swap was turned down by a New York State Supreme Court judge.

Senior lenders have argued that the terms of the debt exchange reduce the amount they stand to recover, while junior bondholders have said a debt swap deal is necessary to keep the company from filing for bankruptcy. (Reporting by Tracy Rucinski and Amrutha Gayathri; Editing by Saumyadeb Chakrabarty)

.

BRIEF-Martinsa Fadesa to delist on Oct. 29 - CNMV

What’s Next: Tomorrow’s Digital Life

Find out what’s in store for our digital-everything lives.

Sorry, I could not read the content fromt this page.

Caesars cancels Mississippi Tunica auction amid lack of bidders

CHICAGO Oct 27 Caesars Entertainment Corp's bankrupt operating group has cancelled the auction of property at its failed Harrah's Tunica Casino in Mississippi amid a lack of bidders, the company said in a court filing.

Casino operator Caesars Entertainment Operating Co, which filed for Chapter 11 in January with $18 billion of debt, had been trying to sell Tunica for two years before closing its doors amid a slump in gambling and tough local competition.

Caesars said it would ask U. S. Bankruptcy Judge Benjamin Goldgar to approve the sale of Tunica to stalking horse bidder TJM Properties Inc, a Florida real estate investment firm that develops senior living facilities, at a Nov. 2 hearing.

TJM has offered $3 million cash for the leftover property at Tunica.

The entire bankrupt casino group, including the iconic Caesars Palace Las Vegas, went on the market this month but analysts, creditors and industry players have doubted that the sale will attract bidders.

The case is Caesars Entertainment Operating Co Inc, U. S. Bankruptcy Court, Northern District of Illinois, No. 15-01145 (Reporting by Tracy Rucinski; Editing by Matthew Lewis)

.

CORRECTED-Arch Coal ends debt swap offer amid looming bankruptcy

n" readability="31">Oct 27 (Reuters) - Arch Coal Inc moved closer to bankruptcy on Tuesday after it gave up on a debt swap proposal that had been aimed at boosting the coal miner's liquidity.

The company, which like all other coal miners has been struggling with a slump in coal prices, said it is currently working with creditors to restructure its balance sheet.

Arch's debt restructuring plan includes swapping existing debt for longer-term securities with the aim of reducing total debt and annual interest expenses by around 20 percent. (Reporting by Tracy Rucinski and Amrutha Gayathri; Editing by Saumyadeb Chakrabarty)

.

BRIEF-Court declares bankruptcy of Transsignalstroy

What’s Next: Tomorrow’s Digital Life

Find out what’s in store for our digital-everything lives.

Sorry, I could not read the content fromt this page.

Bankruptcy and statehood: two hot topics at Puerto Rico hearings

SAN JUAN Oct 22 As Puerto Rico desperately seeks to stabilize its crumbling economy, two issues have come to the fore: the immediate question of whether it can file for bankruptcy, and the longer-term debate about its status as a U. S. commonwealth.

Both issues were discussed at a hearing on Puerto Rico's $72 billion debt crisis, held on Thursday by the U. S. Senate Committee on Energy and Natural Resources.

'SUPER' CHAPTER 9

Puerto Rico, because it is not a state, lacks access to Chapter 9 bankruptcy, which allows cities and public agencies - but not states - to file for bankruptcy. The island's cities and public agencies would, however, have access if Puerto Rico were a state.

Pedro Pierluisi, Puerto Rico's representative in Congress and witness at Thursday's hearing, has introduced a bill to extend Chapter 9 to Puerto Rico, but it has stalled in Congress.

The U. S. Treasury revealed ahead of Thursday's hearing it supports going a step further by granting bankruptcy protections to Puerto Rico's government itself. So-called "Super Chapter 9" is more radical than what Pierluisi's bill seeks and would face an uphill battle in Congress. If enacted, it would allow Puerto Rico to use bankruptcy to restructure all its debt, not just the small portion held by public agencies that would be eligible if Chapter 9 were extended.

Pierluisi said he opposes Super Chapter 9, while bondholders said they oppose any version of Chapter 9.

COMMONWEALTH OR STATEHOOD

Status is the political fault line in Puerto Rico, whose legislature comprises one party that favors making Puerto Rico a state and another that opposes changing its status.

As a commonwealth, Puerto Rico has neither the freedom of sovereign authority nor the protections accorded to U. S. states.

Pierluisi, a pro-statehooder running to unseat the pro-commonwealth Garcia Padilla in next year's gubernatorial election, told Congress on Thursday the "only way to treat Puerto Rico fairly" is to make it a state.

Pierluisi wants to put the statehood question to a vote in Puerto Rico. The island last year received $2.5 million in federal money to ask voters whether Puerto Rico should be a state, but the vote has not happened, which some pro-statehood leaders attribute to stall tactics by Garcia Padilla.

If elected governor, Pierluisi said, he would hold the vote sometime in 2017 and expects most residents to support statehood, based on past referendums.

While statehood would require an act of Congress, a ballot vote financed with federal money might be harder for Congress to

ignore than past referendums.

Separately, advisers for several Puerto Rico bondholder groups are scheduled to meet on Tuesday with advisers for the U. S. territory to discuss debt restructuring, after key talks with one of the groups collapsed, Reuters reported exclusively, citing two sources familiar with the matter. (Reporting by Nick Brown; Editing by Steve Orlofsky)

.