The trustee liquidating Bernard L. Madoff Investment Securities Inc. sued UBS AG, alleging that the Zurich-based investment bank “actively assisted” in the Madoff fraud by sponsoring international feeder funds. The complaint alleges that UBS continued participating with Madoff even though its “due diligence” turned up “indicia of fraud,” the Madoff trustee said in a statement.
The examiner for Washington Mutual Inc. issued his 353-page report late yesterday afternoon, concluding that the proposed settlement with the Federal Deposit Insurance Corp. and JPMorgan Chase & Co . “reasonably resolves contentious issues.”
Trico Marine Services Inc. , a provider of support vessels for the offshore oil and gas industry, filed under Chapter 11 late yesterday in Delaware after signing a revised loan agreement in June that required initiating a bankruptcy reorganization not later than Sept. 8.
LightSquared Inc. was granted permission to manage $15 million in cash in bankruptcy after saying it disagrees with lenders over the use of other assets to fund the two years needed to win regulatory approval and reorganize.
Blockbuster Inc. , the movie rental chain, received final authority from the bankruptcy judge yesterday to pay pre-bankruptcy claims of movie companies, regardless of whether the claims are secured or unsecured. Blockbuster sought the right to pay claims to assure a continuing supply of new movies.
Compania Mexicana de Aviacion, Mexico’s biggest airline by passengers, filed for protection from creditors in Mexico and the U.S. after its executives said they had failed to reach cost-saving agreements with labor unions.