By Frank Conrad, MWI Bankruptcy & Finance ADR Panel Member and Rachael Diament, MWI Staff
Bankruptcy Judge Robert D. Drain of the Southern District of New York ordered the unsecured creditors of the inoperative hedge fund manager Bayou Group LLC and Goldman Sachs Execution & Clearing LP into mediation regarding a sum of $20.7 million that has been in dispute for five years.
In 1996, Bayou Fund was set up by Sam Israel, Daniel Marino, and James Marquez as a Ponzi scheme that attracted over $450 million from investors. In 2005, Bayou Group voluntarily liquidated and promised 100 percent returns to its investors. To remain operational, the company paid redemption requests with investments from other investors, rather than from profits. On May 30, 2006, Bayou Group filed for Chapter 11 bankruptcy and later filed 120 adversary proceedings that continued through 2008.
In 2010, the decisions in ...
by Rachael Diament, MWI Staff
Twinkies will be returning to store shelves July 15, 2013. Earlier this year, Hostess Brands filed for bankruptcy in the aftermath of a Bakery Workers Union strike that could not be resolved. The company claims to have been struggling under higher pensions and medical bills than its competitors due to its unionized workers. At the same time, Hostess employees claim mismanagement and executive hesitation to invest in new brands following changes in consumer tastes crippled the company. Hostess and the unionized workers failed to reach a settlement through negotiation and the bankruptcy mediation process.
In the absence of a bankruptcy settlement, 18,500 employees lost their jobs due to the subsequent liquidation. In response to the liquidation announcement, Hostess snacks were put on rush order and the remaining products sold out within a few...
By Tad Mayer, MWI Director of Commercial & Corporate Programs
TM: I am speaking with Eric J. Haber, a member of the MWI Bankruptcy & Finance ADR Panel. Thank you, Eric, for taking the time to speak with me. To get started, please tell me about your background as it relates to bankruptcy.
EH: I have a wide ranging background in the bankruptcy field. First, I’ve acted as the mediator in over one hundred adversary proceedings in such cases as Quebecor, Value City Department Stores, Tower Manufacturing and Ultimate Electronics, and I was also appointed to the panels of mediators in Borders and Lyondell Chemical. Second, in private practice I’ve worked on a variety of matters representing, among other things, creditors’ committees, distressed investors, equity committees and also debtors. Third, I’ve also done a great deal of...