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Chesapeake Corp. files for bankruptcy protection
Bankruptcy | 2008/12/30 11:35
Specialty packaging company Chesapeake Corp. has filed for Chapter 11 bankruptcy protection and plans to sell itself to a group of investors for about $485 million.

The company's stock, which is traded over-the-counter, closed at 6 cents Monday, well off the $5.61 it traded at a year ago and a sharp drop from the more than $20 it traded for just a few years ago.

Chesapeake, which makes paper cartons and plastic containers for the health care, beverage and food markets, has been cutting jobs and realigning operations in an effort to foster growth and reduce costs. The company struggled earlier this year to complete a $250 million credit line with a group led by GE Commercial Finance Ltd. and General Electric Capital Corp. to refinance prior debt.

The company's shares were delisted from the New York Stock Exchange in October. Chesapeake last month reported a loss for the nine months ended Sept. 28 of $277.1 million as the company booked hefty environmental cleanup and other charges and as sales slipped to $752.5 million due to lost business with British American Tobacco and less demand for drug and health care packaging. In its 10-Q filing with the Securities and Exchange Commission, Chesapeake listed total assets of $936.6 million as of Sept. 28 and $937.1 million in total liabilities.

Chesapeake filed for bankruptcy Monday in the Eastern District of Virginia in Richmond under Chapter 11, which allows a company to reorganize. Non-U.S. units are not included in the filing.



ACLU of Arkansas sues over adoption restrictions
Court Watch | 2008/12/30 11:34
More than a dozen families filed a lawsuit Tuesday challenging a new Arkansas law banning unmarried couples living together from becoming foster or adoptive parents.

The Arkansas chapter of the American Civil Liberties Union filed the lawsuit on behalf of the families in Pulaski County Circuit Court seeking to overturn Act 1, which was approved by voters in last month's general election.

"Act 1 violates the state's legal duty to place the best interest of children above all else," said Marie-Bernarde Miller, a Little Rock attorney in the lawsuit.

The group filed the lawsuit on behalf of 29 adults and children from more than a dozen families, including a grandmother who lives with her same-sex partner of nine years and is the only relative able and willing to adopt her grandchild, who is now in Arkansas state care.

The plaintiffs also include Stephanie Huffman and Wendy Rickman, a lesbian couple raising two sons together who want to adopt a foster child from the state.



Fallout begins after dismal holiday season
Business | 2008/12/30 10:36
The fallout from the horrific holiday season for retailers has begun, with the operator of an online toy seller filing for bankruptcy protection and more stores are expected to do the same — meaning more empty storefronts and fewer brands on store shelves. A rash of store closings, which some experts predict will be the most in 35 years, is likely to come across areas from electronics to apparel, shrinking the industry and leading to fewer niche players and suppliers.

The most dramatic pullback in consumer spending in decades could transform the retail landscape, as thousands of stores and whole malls close down. And analysts expect prolonged woes in the industry as the dramatic changes in shopping behavior could linger for another two or three years amid worries about the deteriorating economy and rising layoffs.

"You are going to see a substantial retrenchment in the retail industry," said Rick Chesley, partner in the global bankruptcy and restructuring group at international law firm Paul Hastings. "The downturn has been catastrophic."

A number of stores couldn't even make it to Christmas. Circuit City Stores Inc. filed for bankruptcy protection last month. It plans to keep operating, but toy seller KB Toys, which filed for bankruptcy earlier this month, is liquidating its stores and will shut down.



Man spits on court floor after traffic conviction
Breaking Legal News | 2008/12/30 10:33
A northern Idaho man convicted of a traffic violation in Bonner County was ordered to spend two days in jail after he spit on the courthouse floor in anger. First District Court Judge Justin Julian found 59-year-old Daniel Malone in contempt on Wednesday.

Julian said the man glared before "maliciously expelling a large amount of saliva" onto a carpet in the courthouse hallway. Earlier in the day, the judge found Malone guilty of failing to obey a stop sign in September. He was ordered to pay a $75 fine.

Malone said he is innocent of the traffic violation and suggested the judge should show mercy because it was Christmas Eve. Julian told Malone there was no excuse for his behavior. Malone was released from jail on Friday.



Number of uncounted ballots in Minn. still unclear
Law Center | 2008/12/30 01:34
The campaigns of Republican Norm Coleman and Democrat Al Franken wrangled Monday over hundreds of unopened absentee ballots that could still tip Minnesota's Senate race.

Lawyers ended a testy public negotiation session convened by the secretary of state's office without agreement on which ballots to open or how many should be under consideration.

That leaves the heavy lifting to a series of regional meetings that begin Tuesday. The ballots that make the cut at those meetings will be opened in St. Paul by Monday.

Those ballots are important because Franken leads Coleman by just 47 votes after the manual review of more than 2.9 million ballots.

The absentee ballots in question were incorrectly rejected by poll judges on or before Election Day, mostly because of clerical errors outside the four legal reasons for rejection.

The state board overseeing the recount ordered that the ballots be counted, and the state Supreme Court agreed — although justices added a few wrinkles. A majority ruled that either campaign can keep any ballot out of the mix with a written objection, leaving spurned voters the option of going to court to reinstate their ballot.

Local officials identified some 1,350 rejected ballots they now say should count, but Coleman's campaign suggested there are an additional 650 that should be added.



US seeks 147-year sentence in Taylor torture case
Breaking Legal News | 2008/12/29 09:09
Federal prosecutors in Miami are seeking 147 years in prison for the torture convictions against the son of ex-Liberian President Charles Taylor.

A judge is scheduled Jan. 9 to sentence 31-year-old Charles McArthur Emmanuel, also known as Chuckie Taylor.

Emmanuel was convicted in October of committing torture and other abuses as head of a paramilitary force in his father's government. It was the first use of a 1994 U.S. law allowing prosecution for torture overseas.

Prosecutors say the lengthy sentence would send a worldwide message against torture. Emmanuel's court-appointed lawyer didn't immediately comment Monday.

Charles Taylor is on trial before a United Nations tribunal for alleged war crimes in Sierra Leone.



Trials open for 9 over China tainted milk scandal
International | 2008/12/29 09:04
Nine people went on trial Monday in connection with China's tainted milk scandal, state media reported, following the announcement of steps to compensate the families of hundreds of thousands of children harmed by contaminated infant formula.

The tainted formula gave babies painful kidney stones and news of the problem sent parents around the country rushing their babies to emergency rooms for tests to see if they were affected. Chinese dairy exports such as chocolate and yogurt were also found to be tainted, triggering a slew of product recalls elsewhere in Asia and in Europe, Africa and Latin America.

At least four of the suspects on trial Monday could be given the death penalty.

Hearings were held in the northern city of Shijiazhuang, where the company at the heart of the scandal — Sanlu Group Co. — is headquartered, along with three other cities in surrounding Hebei province, according to state broadcaster CCTV and the Xinhua News Agency.

The first trials in the case began for six men on Friday.

All 15 on trial have been charged with producing and selling melamine. The industrial chemical was added to raw milk because — like protein — it is high in nitrogen and can make protein levels appear higher.

Sanlu's chairwoman and general manager, Tian Wenhua, is scheduled to go before a Shijiazhuang court Wednesday.



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