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CFPB Faces Challenge by Democrats on Proposed Payday Lending Rules

A growing number of congressional Democrats are challenging the Consumer Financial Protection Bureau’s (CFPB) proposed rules for payday lenders, cautioning that they could hurt consumers, the Washington Times reported on Saturday. The CFPB proposed new rules this spring that seek to regulate payday lenders frequently used for banking services by minorities, the poor and the elderly who need short-term emergency loans. The Obama Administration and Sen. Elizabeth Warren (D-Mass.) have accused the payday lending agency of engaging in predatory lending and seek to impose sweeping regulations across all lenders. But a growing number of Democrats, including Florida Rep. Debbie Wasserman Shultz who heads the Democratic National Committee, are challenging the new rules as a bad example of a “one-size-fits-all” policy that will limit consumers’ banking choices. In a bipartisan letter sent to the agency on Saturday, a handful of lawmakers included Ms. Schultz, Florida Reps. Alcee Hastins and Corrine Brown, and Calif. Reps. Jim Costa and Tony Cardenas. “We are concerned that individuals who rely on the availability of short-term and small-dollar loans to make ends meet will be forced to turn to more expensive alternatives potentially resulting in a phenomenon that is hardly the financial protection that the CFPB seeks to accomplish through this regulatory scheme,” the 28 lawmakers, including 16 democrats and 12 Republicans wrote in the letter.

Alpha Natural Resources to Seek Chapter 11

Alpha Natural Resources Inc. is expected to file for chapter 11 bankruptcy protection today to cut its more than $3 billion debt load as a severe slump in coal prices continues to wreak havoc on the industry, the Wall Street Journal reported today. The Bristol, Va.-based company, one of the largest U.S. coal producers, hasn’t completed the terms of a restructuring plan but will likely sell some of its best mines or turn them over to creditors and close others during its trip through bankruptcy court. Alpha has secured as much as $600 million in bankruptcy financing from senior lenders and secured bondholders to fund its operations during its chapter 11 case. A steep drop in coal prices has Alpha and its rivals bleeding cash and choking on debt taken on to finance acquisitions around the start of the decade, when the industry’s outlook was rosier. In 2011, Alpha paid $7.1 billion for rival mining company Massey Energy Inc., a deal that extended Alpha’s lead as the largest miner of the type of coal used in steelmaking.

New Hampshire County Mulls Bankruptcy

Carroll County, N.H., is considering filing for bankruptcy to close a budget shortfall of about $2 million, the Associated Press reported yesterday. The county may freeze payments, raise taxes and cut funding to outside agencies. All of the county attorney’s assistant prosecutors have quit in the last two months after the budget passed in March. Newly appointed County Administrator Ken Robichaud said that many of the financial problems are the result of not auditing the county in three years. A meeting to address the budget concerns will be held Aug. 17. 

Critical Baha Mar Resort Hearing Postponed

A judge in the Bahamas agreed Friday to delay a critical decision about the future of the $3.5 billion stalled resort project Baha Mar, the Wall Street Journal reported today. A hearing on the Bahamian government’s request to have a liquidator take over the restructuring of Baha Mar was delayed to Aug. 19 to give the government enough time to propose a new liquidator. PricewaterhouseCoopers had been put forth by the government for the job, but a conflict of interest arose with China State Construction Engineering — the parent company of the contractor on Baha Mar, with whom the project’s owner and developer has been at odds — according to a Baha Mar spokesman. The government is working to propose another firm.

Southern Regional Medical Center Files for Bankruptcy

The Southern Regional Medical Center near Atlanta filed for bankruptcy on Thursday while executives look for buyers for the 331-bed hospital, Dow Jones Daily Bankruptcy Review reported today. Officials who put the nonprofit hospital into chapter 11 protection said that the Riverdale, Ga.-based facility faces more than $100 million in debt. The 685,475-square-foot hospital's operations have already drawn interest from potential buyer California-based Prime Healthcare Services, which operates roughly 35 hospitals and has made offers for other bankrupt hospitals. Prime Healthcare would continue to operate the hospital, one of Clayton County's largest employers with about 1,350 people, according to documents filed in U.S. Bankruptcy Court in Atlanta. Read more.  (Subscription required.)

For more on hospital and health care insolvency issues, be sure to pick up a copy of ABI’s Health Care Insolvency Manual, Third Edition.

Commission Recommendations on Resolving Court Splits:
Coming Soon to a Judicial Opinion Near You

PROGRAM
3:00-4:30 p.m. ET

RECEPTION
5:00 - 7:00 p.m. ET

SPEAKERS
Hon. Dennis R. Dow
U.S. Bankruptcy Court (W.D. Mo.); Kansas City
Hon. Bruce A. Harwood
U.S. Bankruptcy Court (D. N.H.); Manchester
Hon. Barbara J. Houser
U.S. Bankruptcy Court (N.D. Tex.); Dallas
Hon. Eugene R. Wedoff
U.S. Bankruptcy Court (N.D. Ill.); Chicago

Description:

ABI's Commission to Study the Reform of Chapter 11 identified more than 30 splits in case law on important issues. Such a split of authority results in delay, increased litigation costs and above all, uncertainty -- imposing a kind of "ambiguity tax" on the system, as one witness put it in testimony before the Commission. The recommendations contained in the Commission's final report, in many cases, can be implemented by judicial opinion at the bankruptcy court or court of appeals level, without need for action by Congress.
This program featuring some of the most experienced and thoughtful judges on the bench today, will assess the Commission recommendations, and identify some that might be effected soon.

 

Continuing Education Credit:

ABI will seek 1.5 hours of general CLE credit in 60-minute-hour states and 1.5 hours of credit in 50-minute-hour states. CLE-Approved States: ABI’s live webinars and teleconferences ordinarily receive CLE credit in AL, CA, DE, GA, IL, MN, NE, NH, NJ, NY (approved jurisdiction policy), PA, TN and TX. ABI will obtain approval in additional states. ABI does not seek direct accreditation of live webinars in KS and OH. Credit hours granted are subject to approval from each state, which may not be determined prior to the program.

 

Livestream

 

 

 

 

 

 

Conference Address

Notice: Attendee information is not meant to be used for mass mailings, invitations, bulk emails, e-mail harvesting or any other commercial purpose. Personal or contact information on this list is intended solely for personal use and should not be duplicated, reproduced or distributed to a third party If you are interested in opting out of inclusion of either printed or online attendee lists, please send an email to meetings@abiworld.org.

ABI’s Mid-Level Professional Development program is returning again to Chicago! Join us in the Windy City for this unique program geared specifically toward mid-level insolvency and restructuring professionals, lawyers and financial advisors. With sessions for both technical and career advancement, attendees will learn critical skills from some of the country’s top judges, attorneys, financial advisors, investment bankers, restructuring professionals and clients. Space is limited, so register today and don’t miss this one-of-a-kind event!

Schedule & speakers to be announced soon!

 

 

 

 

Conference Address

Notice: Attendee information is not meant to be used for mass mailings, invitations, bulk emails, e-mail harvesting or any other commercial purpose. Personal or contact information on this list is intended solely for personal use and should not be duplicated, reproduced or distributed to a third party If you are interested in opting out of inclusion of either printed or online attendee lists, please send an email to meetings@abiworld.org.

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