Heller Files for Chapter 11: Heller Ehrman filed for Chapter 11 bankruptcy protection yesterday according to The American Lawyer, via Law.com. Former partner Peter Benvenutti says the decision to file was not because the firm has run out of money, but rather because the firm’s two main lenders would not renogotiate the terms of a long-term loan. Benvenutti says the firm currently has about $3.7 million in cash and is expecting to recover about $35 million in accounts receivable.
Treasury Helps GMAC: The U.S. Treasury announced it would buy $5 billion worth of preferred equity shares in GMAC yesterday according to The New York Times. The deal will allow GMAC to convert itself into a bank holding company and allow it to borrow money at lower interest rates from the Federal Reserve.
Foundation Criticizes EPA: The Chesapeake Bay Foundation’s president, William Baker, slammed the EPA yesterday after the foundation reported that the Chesapeake Bay’s blue crab populations are suffering from suffocation, hunger, and cannibalism in certain zones across the estuary according to The Washington Post. Baker says the EPA has not done enough to enforce the Clean Water Act and has been passive restricting air pollution.
Big Tech Appeal: Several big tech companies are backing Microsoft in its appeal to the U.S. Court of Appeals for the Federal Circuit to overturn a $500 million jury verdict for infringing on a Lucent patent according to The Recorder, via Law.com. The companies want the court to reevaluate the “entire market value rule” that allows damages to be calculated based on the whole product, even if only one feature is infringed.