Bankruptcy

BlueHippo Funding, the Woodlawn electronic sales company recently accused of violating its settlement with the Federal Trade Commission, has filed for bankruptcy court protection. The company said it was forced to file for protection under Chapter 11 on Monday after its payment processor's bank, First Region's Bank, unexpectedly froze funds belonging to BlueHippo. "First Region's Bank explained in an e-mail that it was freezing BlueHippo's accounts solely as a result of a recent press release issued by the FTC - a press release that is replete with factual inaccuracies," BlueHippo said in a statement.

IN THE SUPPLEMENTAL budget offered this week by President Bush, he didn't include relief for the nation's beleaguered airlines. That hasn't stopped the carriers and their employees from continuing an intense lobbying campaign in Washington for tax breaks and other aid totaling at least $9 billion. But what's really needed by the airline industry is not the salve of a federal bailout but the discipline provided by bankruptcies. That's their best shot at emerging with financial strength from a lethal thicket of crushing debt, overly generous pay contracts and long-standing inefficiencies.

SAN FRANCISCO - Blockbuster Inc. shares plunged further into penny-stock territory Wednesday after the struggling home-video-rental company said in a regulatory filing that it will likely file for bankruptcy if it's unable to address its debt load. Shares of Blockbuster fell 12 cents, or 29 percent, to 28 cents a share. The company's market capitalization now totals about $34 million, or just a fraction of its fourth-quarter revenue of $1 billion. - MarketWatch

A trustee will be assigned to the bankruptcy proceedings for the closed Rosecroft Raceway in Prince George's County, according to a court ruling issued today. Last month, the trustee for the U.S. Bankruptcy Court's Greenbelt division requested that the harness racetrack be converted from a reorganization to a liquidation. The trustee also offered an alternative: to assign a Chapter 11 trustee to the case. Judge Paul Mannes wrote in his decision that "although grounds exist for converting the case … this Court determines in its discretion that appointment of a Chapter 11 Trustee is the better course.

It's no secret that the U.S. financial situation is dire. The government spends more than it takes in and has done so since the Clinton administration.  But how bad will it get? Will our penchant for military excursions and entitlement programs cause the government to default on its debt like some rundown gambler?  U.S. Congressman Ron Paul (R-Texas) is predicting the nation will have to turn to bankruptcy to fix its problems.  "I am very hopeful and positive in the long run, but I think we are going to go through a bankruptcy first," the Texas congressman told Fox News in a Sunday Interview . Obviously, the country can't actually declare bankruptcy like someone with a gambling addiction can. But the country could realistically default on its debt, leaving countless holders of U.S. government bonds screwed.

The creditors and the publisher of the Baltimore Jewish Times met behind closed doors Friday with a bankruptcy judge in an attempt to iron out a new ownership plan, and emerged after more than three hours with a commitment to return Monday for more negotiations. Alter Communications Inc., the publisher of the Times and Style magazine, has been in Chapter 11 bankruptcy protection since April 2010, after losing a legal battle with its former publisher, H.G. Roebuck & Son Inc. of White Marsh.

Constellation Energy Group was the successful bidder Monday to purchase five power plants in the Boston area that would boost its energy-producing capacity by a third, according to court documents. In August, the Baltimore company agreed to buy the plants owned by Boston Generating in bankruptcy proceedings that would make the company's $1.1 billion offer the price to beat in an auction. Boston Generating, a part of U.S. Power Generating Co., filed for bankruptcy protection that month.

Auctions of two downtown Baltimore office buildings that were undergoing conversion to hotels have been cancelled after the developers filed for Chapter 11 bankruptcy court protection. The buildings that are no longer up for auction are the former Keyser Building on Redwood Street that was being converted into the Hotel Indigo, a $24 million project with 130 rooms, and the former Jefferson Building on Charles Street that was being converted into a 100-room Staybridge Suites in a $22 million project.

Vertis Holdings Inc. of Baltimore said Thursday that it filed for voluntary bankruptcy protection as part of an effort to reduce approximately 60 percent – or $700 million – of its debt. The company, which offers advertising inserts and direct marketing solutions, is embarking on a "pre-packaged" bankruptcy plan, where the debtor and creditors have already negotiated a reorganization plan, which includes $600 million in financing from Morgan Stanley and GE Capital. The company expects to emerge from bankruptcy in about two months.

Are you saving more money than a Super Bowl champion? Jamal Lewis, the former Ravens running back, offered the nosy a look at his finances when he recently filed for Chapter 11 bankruptcy protection . For instance, he makes $35,000 in an average month and spends $34,050 of it, leaving him with $950 left over, according to court documents. You can see the full 75-page rundown here . Highlights: o His monthly mortgage costs, not including taxes and insurance: $6,000 o Monthly vehicle payments: $5,700 o Biggest monthly outflow by far: $18,000 for regular expenses from operating a business o Charitable contributions: $0 All told, Lewis tallies up about $14.5 million in assets and $10.6 million in liabilities.