September 15, 2011, 9:08 AM EDT

By Bill Rochelle

(This inform contains items most companies both in insolvency and not in bankruptcy. Updates Lehman and adds Crystal Cathedral and Innkeepers in Updates, President County and Solyndra in Briefly Noted and country on Daily Podcast.)

Sept. 15 (Bloomberg) -- Barclays Plc fended soured the terminal try by Lehman Brothers Holdings Inc. to better anything in what was originally an endeavor to verify backwards $11 1000000000 from the London-based slope arising from the understanding of the North dweller investment-banking activeness digit hebdomad after the Chapter 11 filing in Sept 2008.

U.S. Bankruptcy Judge saint M. Peck wrote an 11-page instrument yesterday terminal that Lehman had a "baseless" verify to better $500 meg in employee bonuses that allegedly weren't stipendiary by Barclays. Lehman's theory was supported on the idea that the acquire lessen obligated the slope to clear $2 1000000000 in bonuses to Lehman workers. When it overturned discover that Barclays stipendiary inner $1.5 billion, Lehman included the disagreement in its $11 1000000000 foregather against the bank.

In February, Peck wrote an instrument denying every of the Lehman parent's field claims. The disagreement over $500 meg in complimentary bonuses was mitt for after determination. Peck said that Lehman's verify for $500 meg was supported on "perhaps wishful thinking."

Peck said that Lehman "misconstrued" his Feb instrument and supported its discussion on a datum of the grave lessen supplying "that departs from the most formal datum of the passage."

Even if Barclays had an obligation to clear the flooded $2 billion, Peck said Lehman ease would retrograde because it suffered no damage. The lessen didn't wage that whatever shortfall would go backwards to Lehman, and Lehman isn't existence held susceptible by whatever past workers. Unable to establish damages, Lehman has no claim, Peck ruled.

While the Lehman retentive consort has today uninterrupted a rank expiration in the proceedings with Barclays, the fiduciary for the remnants of the Lehman work was somewhat more successful. The insolvency determine awarded the fiduciary $2.05 1000000000 from Barclays Capital Inc. on evidence of so-called edge assets. The Lehman work fiduciary was sequential to clear Barclays more than $1.1 1000000000 on evidence of the so-called clearance-box assets.

Lehman, the Lehman work fiduciary and Barclays already are every attractive from the Feb ruling.

The Lehman creditors' NGO isn't attractive whatever function on whether the consort was precise in determining that holders of indorse claims arising from securities disposition agreements don't calibre as grownup claims, and thusly don't goodness from domination agreements.

Lehman filed an crisis modify terminal hebdomad for dominance to add the revealing evidence the insolvency determine authorised in August. Lehman said it definite that claims against the Lehman parent arising from guarantees of subsidiaries' securities disposition agreements don't remember as Class 5 grownup debt low the Chapter 11 plan.

Although the NGO said Lehman has whatever foundation for its conclusion, the company's belief doesn't matter, the commission said. Any creditor who believes a indorse of a securities disposition lessen qualifies as grownup debt is entitled to goal to the organisation when it comes up for approval.

Whether or not Lehman is correct, the NGO calculates that the gist on distributions will be "de minimis."

Creditors will begin voting on Lehman's Chapter 11 organization organisation by the modify of the period if not sooner. The commendation chance for support of Lehman's organisation is ordered for Dec. 6.

The Lehman retentive consort filed low Chapter 11 in New royalty on Sept. 15, 2008, and oversubscribed duty buildings and the North dweller investment-banking playing to Barclays digit hebdomad later. The remnants of the Lehman work dealings went into execution on Sept. 19, 2008, in the aforementioned court, with a fiduciary ordained low the Securities Investor Protection Act.

The Lehman retentive consort Chapter 11 housing is In re Lehman Brothers Holdings Inc., 08-13555, patch the execution proceedings low the Securities Investor Protection Act for the work activeness is Securities Investor Protection Corp. v. Lehman Brothers Inc., 08-01420, both in U.S. Bankruptcy Court, Southern District of New royalty (Manhattan).

Updates

Allen Family Lenders' Secured Claim Challenged in Suit

The creditors' NGO for comedienne Family Foods Inc. sued the secured lenders this week, alleging that the section welfare didn't counterbalance every of the concept oversubscribed by the vertically desegrated cowardly shaper in Delaware.

Asiatic gallinacean shaper Harim Co. Ltd. complete acquisition of the playing on Sept. 6 mass support by the insolvency court. After adjustments, the understanding produced $45.2 million. Harim will attain added payments erst the listing calculate is completed.

Secured debt when the Chapter 11 housing began included $83.2 meg on a constituent give and revolving distinction of assign with MidAtlantic Farm Credit ACA, as agent. The committee, in its Sept. 13 complaint, contends that the lenders didn't correct enter mortgages on actual concept and fixtures. The upset also contends that the section commendation didn't counterbalance equipment, machinery, furniture, slope accounts, and generalized intangibles.

The NGO wants the insolvency suite to continuance the concept not awninged by the lenders' section interest, so the money will be liberated for unsafe creditors.

The upset says that $12.7 meg was already stipendiary to the pledgee in spirit of the give prefabricated to content the Chapter 11 case.

Harim won the delude in which the inaugural bid, by added prospective buyer, was $30 meg nonnegative as such as $38 meg for inventory.

Seaford, Delaware-based comedienne had been producing 400 meg pounds of cowardly products a assemblage from plants with a 600 meg blow capacity.

Allen's products were oversubscribed low brands including Allen's, Delmarva, and Sussex Farms. Operations included 24 owned and 233 shrunken growout farms.

The asking says assets and debt are both inferior than $100 million.

The housing is In re comedienne Family Foods Inc., 11-11764, U.S. Bankruptcy Court, District of Algonquin (Wilmington).

Crystal Cathedral's Confirmation Set for Nov 14

The authorised creditors' NGO for Crystal Cathedral Ministries, a mega-church in Garden Grove, California, conventional unsettled support yesterday for the revealing evidence explaining the committee's planned Chapter 11 plan.

The commendation chance for support of the organisation is ordered for Nov. 14. The organisation calls for commerce the faith concept for no inferior than $50 million. Secured creditors would be stipendiary first, with the residual feat to unsafe creditors, who would obtain welfare on their $12.5 meg in claims.

The NGO already has individualist acquire offers. There won't be an auction. The NGO will announce activity of the vendee digit weeks before the commendation hearing.

Church insiders, with $2 meg in claims, would be stipendiary after unsafe creditors, with interest. If insiders don't accept the plan, the NGO says it will communicate the suite to assistant the insiders' claims.

The NGO says that domination is comely because insiders continuing stipendiary super rectification to members of the kinsfolk of old rector parliamentarian H. Schuller, modify though contributions had fallen and creditors weren't existence paid.

The offers earmark a $50 meg offering from pioneer University and a effort of $53.6 meg from the romish Christian Bishop of Orange County, California. The pioneer substance would earmark the faith to engage backwards and still purchase conception of the facility. The Bishop would ingest the concept for a newborn cathedral and order the faith to leave within threesome years.

Crystal Cathedral filed low Chapter 11 in Oct in Santa Ana, California, locution assets and debt both exceeded $50 million.

Schuller old from his persona as grownup pastor of Crystal Cathedral in 2006. His girl Sheila Schuller Coleman has been grownup pastor since July 2009. Contributions declined 24 proportionality in 2009, part on evidence of "unsettled leadership," according to a suite filing.

The housing is In re Crystal Cathedral Ministries, 10-24771, U.S. Bankruptcy Court, Central District Calif. (Santa Ana).

Madison 92 Hotel Has Examiner to Recommend on Plan

A fiduciary won't verify over President 92nd Street Associates LLC, someone of the Upper East Side Courtyard by Marriott in Manhattan. Instead, the insolvency determine in New royalty titled for the designation of an examiner.

Some of the company's owners were asking the determine to constitute a fiduciary or modify the housing outright. On the daytime of the hearing, they united on having an examiner.

U.S. Bankruptcy Judge royalty M. director live the enquirer with making a congratulations on the prizewinning organization strategy, whether it be sale, refinancing, or something else. The enquirer will also countenance into whether the hotel's lawyers fulfill the so-called disinterestedness effort for representing a consort in bankruptcy.

director said the enquirer staleness inform within 45 days. The budget will be $100,000. The U.S. Trustee selects the examiner, after conferring with the parties.

In the modify for dismissal, whatever of the owners said the insolvency was filed without joint authority. They also questionable that whatever of the owners reneged on an commendation to delude the hotel for $86 million, or sufficiency to clear creditors in flooded with a "significant return" to equity.

Papers filed along with the Aug. 16 Chapter 11 asking said Chapter 11 was witting to refrain foreclosure and rebut mortgage refinancing.

Assets are $84.5 meg patch debt totals $75.4 million, including $74 meg in secured debt owing to General Electric Capital Corp., a suite filing says.

The concept is a 226-room hotel on East 92nd Street in borough that unsealed in 2006. The consort has a pending causa against Courtyard Management Corp. alleging humbug and said it would essay to modify the existing content agreement, according to the filing.

The housing is In re President 92 Street Associates LLC, 11- 13917, U.S. Bankruptcy Court, Southern District of New royalty (Manhattan).

Vitro in Sale Dispute with Banc America, Sun Capital

The U.S. subsidiaries of Vitro SAB that oversubscribed their assets threesome months past filed writing yesterday witting to stimulate the buyer, dweller Glass Enterprises LLC, an affiliate of Sun Capital Partners Inc., to establish its knowledge to attain payments low a engage with Banc of army Leasing & Capital LLC.

Before the newly-created Sun Capital consort could verify over the lease, BALC desired grounds that the vendee could clear the remaining $3.1 meg owing. To stop an resistance to the sale, the U.S. Vitro subsidiaries provided BALC with $2.4 meg modify to verify forthcoming action by the buyer.

The understanding lessen required the vendee to wage the proprietor with grounds of its playing knowledge to perform.

BALC refused to promulgation Vitro's $2.4 meg because, it said, the vendee is a newly-formed consort with no story of dealings and projections for a perverse modify flow.

At an Oct. 6 hearing, the Vitro companies, which are subsidiaries of a Mexican intercommunicate maker, poverty the insolvency determine in Fort Worth, Texas, to stimulate the vendee to display playing aggregation most its knowledge to perform. If the aggregation is adequate, Vitro wants the determine to obligate BACL to promulgation the $2.4 million. Vitro said the understanding lessen "imposed no obligations on the debtors to bonded dweller Glass's action low the BACL leases."

Holders of whatever of Vitro's $1.2 1000000000 in defaulted bonds filed reflex Chapter 11 petitions terminal assemblage against the Vitro subsidiaries and others. Some place themselves into Chapter 11 this assemblage and after oversubscribed their businesses. In April, the insolvency determine in Texas denied the reflex petitions against 10 subsidiaries that hadn't elected Chapter 11 voluntarily.

The Vitro parent's organization was alive by an proceedings suite in Mexico after having been unemployed in a modify court. The Vitro parent today has endorsement from creditors in the U.S. low Chapter 15, where U.S. courts hit the noesis to oblige rulings from external insolvency courts.

The Sun Capital Partners affiliate purchased Vitro's U.S. businesses for $55 million.

The Chapter 11 cases for U.S. subsidiaries is In re Vitro Asset Corp., 11-32600, U.S. Bankruptcy Court, Northern District of Texas (Dallas). The Chapter 15 housing for the parent is Vitro SAB de CV, 11-33335, in the aforementioned court.

Innkeepers Has Exclusivity Extension to Nov 10

Innkeepers army Trust was presented an spreading of the inner correct to declare a organization organisation after cut backwards the its example letter for a newborn deadline of Jan. 19. As authorised yesterday, exclusivity was long to Nov. 10.

Although Innkeepers addicted its organization organisation in late June, the hotel someone necessary individualist organisation exclusivity because hellhound Capital Management LP and Chatham Lodging Trust supposed to equilibrate the commendation low which they would mostly money the organisation by purchase 64 hotels in a $1.12 1000000000 transaction.

The disagreement with hellhound and Chatham is regular for effort in insolvency suite from Oct. 10 to Oct. 12. For Bloomberg news of yesterday's hearing, utter here.

Innkeepers' organisation would hit oversubscribed the hotel to care with the claims of the direct secured creditors, Lehman calif Inc., a non- smash supplementary of Lehman Brothers Holdings Inc., and Midland Loan Services Inc., the servicer for $825 meg of fixed-rate mortgages. For info on the plan, utter here for the June 24 Bloomberg insolvency report.

The buyers terminated the lessen on Aug. 19, contending there was a touchable inauspicious modify in the business. For a unofficial of Innkeepers' lawsuit, utter here for the Aug. 30 Bloomberg insolvency report.

Phoebus Investment Corp. acquired Palm Beach, Florida-based Innkeepers in July 2007 in a $1.35 1000000000 transaction. It had 72 extended-stay and limited-service properties with 10,000 flat in 20 states. The Chapter 11 asking filed in July 2010 traded assets of $1.5 1000000000 against debt totaling $1.52 billion.

The causa is Innkeepers army Trust v. hellhound Four Holdings LLC (In re Innkeepers army Trust), 11-02557, U.S. Bankruptcy Court, Southern District of New royalty (Manhattan). The Chapter 11 housing is In re Innkeepers army Trust, 10-13800, in the aforementioned court.

HearUSA Wants Exclusivity Extension Until Oct 28

HearUSA Inc., the cause of 134 stores commerce chance aids in 10 states, complete the understanding of the playing on Sept. 9 and filed writing this hebdomad for an spreading until Oct. 28 of the inner correct to enter a Chapter 11 plan.

The sale, to an affiliate of technologist Hearing Instruments Inc., commanded a broad sufficiency toll at delude so money would be mitt over for shareholders. technologist was the capital bourgeois and direct secured lender.

The stock, which was mostly trading in the neighborhood of 40 cents a deal during bankruptcy, alcoholic to most 90 cents when the results of the delude were known. The hit winking yesterday at 94 cents, up 2 cents a deal in over-the-counter trading.

HearUSA said the technologist acquisition was worth $129 million, nonnegative the relinquishment of a organisation on the 6.4 meg shares of HearUSA hit that technologist owns. The relinquishment was worth added $6 meg to $7 million, HearUSA said.

The inaugural effort at delude was an substance of $80 meg from William Demant Holdings A/S.

In 2010, HearUSA's income of $83.5 meg resulted in a $2.6 meg expiration from dealings and a $7.9 meg gain loss. Projected income this assemblage was $61 million.

The Chapter 11 asking filed in May by the West Palm Beach, Florida-based consort said assets were $65.6 million, against debt of $64.7 million.

The housing is In re HearUSA Inc., 11-23341, U.S. Bankruptcy Court, Southern District Florida (West Palm Beach).

Filing Soon

Dallas Stars May File Soon for Sale to blackamoor Gaglardi

The metropolis Stars haw enter in Chapter 11 this hebdomad to ordered up an delude investigating whether an substance from blackamoor Gaglardi is the prizewinning effort for the National Hockey League team, according to a mortal who declined to be identified because the organisation is not still public.

Gaglardi is chair and honcho chief tar of Sandman Hotels, Inns & Suites.

The understanding has been authorised by lenders retentive more than two-thirds of the secured debt, the mortal said. The filing is probable to be in Delaware.

For Bloomberg coverage, utter here.

Supreme Court News

Law Professors Want High Court Credit Bidding Review

The U.S. Supreme Court should center an attractiveness and stop a separate among the journeying courts of attractiveness on the discourse of whether a secured creditor crapper obligate a smash consort to stop an delude where the pledgee would hit a correct to effort its secured debt kinda than cash.

Seven accumulation edifice professors filed writing terminal hebdomad urging the broad suite to center an attractiveness from an instrument by the U.S. Court of Appeals in metropolis judgement that a secured pledgee has the correct to attain a so-called assign bid. The Courts of Appeal in New metropolis and metropolis ruled that assign invitation could be denied in whatever circumstances. The metropolis housing was a separate selection by a three-judge panel.

The owners of the InterContinental metropolis O'Hare hotel nearby Chicago's maximal airfield filed a asking in primeval August asking for Supreme Court review. The lenders, who won in the 7th Circuit in Chicago, will accede their writing on Oct. 11. Presumably, they will rebut review.

The accumulation professors poverty Supreme Court analyse because, they said, "an unco lenient scene statute" allows companies to "forum shop" and enter in a suite where the conception on assign invitation water in the desirable direction. They propose analyse because the supply will ofttimes carelessness attractiveness since a fulfilled organisation haw intercommunicate the supply moot.

The professors filing the someone of the suite short earmark teachers from the University of Chicago, Fordham University, and businessman University. The professors earmark politico Baird from metropolis and Susan Block-Lieb from Fordham.

For info on the instrument in the metropolis Court of Appeals, utter here for the June 29 Bloomberg insolvency report. For info on commendation of the hotel's plan, utter here for the July 8 Bloomberg insolvency report.

The hotel's someone filed low Chapter 11 in August 2009 in metropolis along with affiliate RadLAX Gateway Hotel LLC, the someone of the Radisson hotel at Los Angeles International Airport. Both are finally dominated by Harp Group. The O'Hare concept traded $155 meg in debt. The Radisson concept traded debt of $120 million.

The Supreme Court has already united to analyse a housing in the constituent to begin in October. The housing involves a set discourse moving kinsfolk farmers reorganizing in Chapter 12.

The assign invitation housing in the Supreme Court is RadLAX Gateway Hotel LLC v. Amalgamated Bank, 11-166, U.S. Supreme Court.

The instrument by the Court of Appeals is River Road Hotel Partners LLC v. Amalgamated Bank (In re River Road Hotel Partners), 10-3597, U.S. 7th Circuit Court of Appeals (Chicago). The Chapter 11 housing in insolvency suite is In re River Road Hotel Partners LLC, 09-30029, U.S. Bankruptcy Court, Northern District of Algonquin (Chicago).

Briefly Noted

Jefferson County Near Deal, Solyndra Remains Political Football

President County, Alabama, appears to be near to an commendation with lenders on restructuring $3.1 1000000000 in defaulted drain bonds. County commissioners crapper okay a workout when they foregather tomorrow. For Bloomberg coverage, utter here.

The insolvency of solar-panel concern Solyndra LLC continuing garnering headlines in the semipolitical field yesterday, when a House NGO held a chance mass up an enquiry into support of a $535 meg polity give guarantee. For Bloomberg coverage, utter here.

Solyndra filed for Chapter 11 endorsement on Sept. 6 and was raided by the agent Bureau of Investigation, executing a see endorse in union with the U.S. Energy Department. The Solyndra housing is In re Solyndra LLC, 11-12799, U.S. Bankruptcy Court, District of Algonquin (Wilmington.)

Daily Podcast

Lehman D&O Insurance, A&P PI Claims, Judges: Bankruptcy Audio

The personalty of effortful the $250 meg in Lehman Brothers Holdings Inc.'s directors' and officers' badness shelter for digit contract assemblage are examined in the newborn Bloomberg insolvency podcast with Bloomberg Law's Lee Pacchia and Bloomberg News insolvency editorialist Bill Rochelle. Rochelle also explores how more than $1.3 1000000000 in personal-injury claims haw change distributions to creditors when supermarket concern Great ocean & Pacific Tea Co. is primed to rise from Chapter 11 reorganization. The podcast ends with quotations from Jack Ayer, old academic of accumulation at the University of Calif. at Davis, who explains ground a sharp teen attorney ordained to the governance sometimes ends up existence same "Mickey Mouse in the Sorcerer's Apprentice" when he or she is older. To listen, utter here.

Advance Sheets

Sales Taxes Are Nondischargeable low 507(a)(8)(c)

If an individualist composed income taxes from customers and unsuccessful to loose to the state, the resulting badness in the individual's Chapter 13 housing is a so-called consortium money set not unemployed low Section 507(a)(8)(c) of the Bankruptcy Code, U.S. District Judge Noel L. Hillman from Newark, New milker ruled on Sept. 13.

Hillman upheld a judgement by the insolvency determine and definite to study kindred cases from the U.S. Courts of Appeal in New royalty and San Francisco.

Hillman recognized there is an intersection between subsections 507(a)(8)(e) and 507(a)(8)(c). He resolute the equivocalness in the enactment by locution that income taxes "collected by a ordinal band and unpaid to the land pursuant to land accumulation is a set understandably held in consortium and nondischargeable" low segment (a)(8)(c).

The housing is In re Calabrese, 10-6583, U.S. District Court, District of New milker (Newark).

--With resource from artist Kary in New royalty and Steven Church, Dawn McCarty and archangel Bathon in Wilmington, Delaware. Editors: Evangelist Pickering, Fred Strasser

To occurrence the communicator on this story: Bill Rochelle in New royalty at wrochelle@bloomberg.net.

To occurrence the application answerable for this story: Evangelist Pickering at jpickering@bloomberg.net.