Hearing on Fund bankruptcy motions today

U.S. District Court for the NMI designated judge Frances M. Tydingco-Gatewood has scheduled a hearing today, Friday, on all the motions filed by the NMI Retirement Fund related to its Chapter 11 bankruptcy petition.

The hearing will start at 10:30am before a judge that will be assigned by the U.S. Court of Appeals for the Ninth Circuit.

Tydingco-Gatewood also granted yesterday the request of two lawyers from a Boston law firm to be admitted to practice in the CNMI for the sole purpose of representing the Fund as its bankruptcy counsel. Jeremy B. Coffey and Steven D. Pohl of the Brown Rudnick law firm were told to associate as co-counsel with attorney Braddock J. Huesman, one of the Fund’s legal counsels.

Citing “spousal interest in the Fund, U.S. District Court for the NMI Chief Judge Ramona V. Manglona had recused herself from presiding over the Fund’s Chapter 11 bankruptcy case. Manglona’s husband, CNMI associate justice John A. Manglona, is a member of the Fund.

The Fund filed its bankruptcy petition on Tuesday, together with several motions. Among the motions is a request to allow the Fund to pay, for a period of two months from Tuesday, 100 percent of the full amount of benefits owed beneficiaries.

The other motion seeks an order authorizing the Fund to maintain existing bank accounts and continued use of its cash management system; continued use of existing business forms; opening a new debtor in possession accounts; and foregoing bond requirements for investments.

The Fund also wants the court to allow it to retain, employ, pay, and reimburse for expenses certain professionals used in the ordinary course of Fund business.

The other motion seeks a court order that will allow the Fund to pay the wages, salaries, and other compensation of its pre-petition employees; reimburse pre-petition employee business expenses; pay pre-petition tax and other withholdings; contribute to pre-petition employee health and other benefit programs; and pay workers’ compensation obligations and other insurance premiums.

The Fund also seeks a court order that will give it more time to file its schedules of assets and liabilities, schedule of executory contracts and unexpired leases, and statement of financial affairs.