The U.S. Court of Appeals in San Francisco handed down an opinion in late January that might have made the reorganization of General Growth Properties Inc. (GGP) impossible had it been written three years earlier and adopted by courts in New York, as Bloomberg Law's Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle explain on their bankruptcy podcast. Lehman Brothers Holdings Inc. (LEHMQ) may raise the hackles of creditors with disputed claims by proposing to use illiquid assets as backup for distributions when disagreements on claims are settled. By the end of this month, as Rochelle explains, Fred Wilpon and other owners of the New York Mets baseball club could be saddled with an $80 million judgment while still facing a jury trial in March where the trustee for Bernard L. Madoff Investment Securities Inc. will be aiming to recover an additional $300 million. The podcast ends when Rochelle discusses a bankruptcy case from North Carolina where a bankruptcy judge, possibly seeing the creditors as obstructionist, disbanded the official committee representing unsecured creditors.
Running time 12:10