This is a joint post by Mark Weidemaier and Mitu Gulati.
About a decade and a half ago, exit consents were a big deal in sovereign debt restructuring. At the time, sovereign bonds governed by New York law required unanimous bondholder approval before any modification to the payment terms of the bonds. The result was that creditors could easily hold out from a restructuring. Needing to mitigate the holdout problem in Ecuador in 2000, sovereign debt guru Lee Buchheit borrowed a technique from corporate bond restructuring practice in the United States. There, the Trust Indenture Act forbids out-of-court bond exchanges that modify "the right of any holder ... to receive payment ... or to institute suit" without the consent of each affected bondholder. To oversimplify, Buchheit leveraged the fact that other terms of the bonds could be amended with a lesser vote, often a simple majority or 66.67% of the bonds. This meant that potential holdouts risked having key protections stripped from their bonds in a restructuring that won the approval of a majority of bondholders.
Read More from: Credit Slips
Some advisers are urging acquirers to strike while they have strong currencies, while others are warning about the risk of overpaying. Sellers, meanwhile, must be wary of a correction after months of surging prices.
President Trump signed an executive order Friday requiring every agency to establish a task force focused on eliminating unnecessary regulations.
The Denver bank had spent the last two-plus years addressing concerns about capital and underwriting procedures.
Banks are partnering with tech companies to win back some of the small-business customers that the industry lost to fintechs.
CIBC’s CEO vows to stay “disciplined” in his bid to buy PrivateBancorp, even as some of the Chicago bank’s investors say the deal is insufficient. The head of RBC, meanwhile, said it will pursue organic growth instead of acquisitions, at least for a while.
Congressional Republicans are weighing potentially broad changes to the stress test program, including alterations to the way the tests are performed and the consequences of failing them.
Without fanfare, on February 8 the Fraud Section of the Department of Justice (DOJ) published new corporate compliance guidance on its public website. The guidance is presented as a set of topics and questions, entitled “Evaluation of Corporate Compliance Programs”. It is the first formal guidance to be issued from the fraud section of the … Continue reading
Read More from: The Robins Kaplan Bankruptcy Blog
The following is taken from a lecture given by the author on February 22, 2017 to the Maryland Bankruptcy Bar Association.
On February 1, 2017, the President nominated Neil McGill Gorsuch to be an associate justice on the Supreme Court. Tonight, I’m going to review his biography, discuss some of his major bankruptcy opinions, and talk about what his presence on the Supreme Court might mean for our bankruptcy practices.
Neil Gorsuch is a bit young for appointment—age 49, although the average age of appointment for justices is 53 (which includes John Jay, who was 32 when he was appointed in 1812). His mom was Anne Gorsuch Buford, who was the Administrator of EPA, and resigned after 22 months, having been held in contempt of Congress.
Read More from: Bankruptcy Law Network
American Banker readers share their views on the most pressing banking topics of the week. Comments are excerpted from reader response sections of AmericanBanker.com articles and our social media platforms.
The British bank recovered after two years of red ink and is close to finishing a major restructuring; DOJ, Treasury and New York state are investigating the credit card lender.
Canada's largest lender reported double-digit profit growth in its latest quarter in part because of CEO David McKay's focus on expanding in private wealth and commercial banking in the U.S.
The debate about which side is right about the appropriate method of opening up financial data access is a distraction from the real issue at stake: the pace of innovation.
The founders of the South Carolina bank, which liquidated after lavish spending and losses depleted its capital, paid a total of $57,000 in fines and face restrictions on future employment.
The fast-moving innovations enabled by blockchain technology defy the ability of state governments to regulate the distributed ledger space constructively and efficiently.
Given the prevalence of cross-border restructurings, the Weil Bankruptcy Blog periodically brings our readers interesting restructuring law updates from around the world. This blog entry describes a development that could have an impact on restructurings in Germany. Cancellation of debt – a key element of most restructurings – generally triggers taxable income. The German Tax authorities had issued an administrative decree (the “German Tax Restructuring Decree” – Sanierungserlass), declaring that, upon the satisfaction of certain requirements and conditioned on forfeiture of any loss carry forwards, the cancellation of debt income (“CODI”) would not be taxed. Reliance on the administrative decree was essential for restructurings since the utilization of loss carry forwards in Germany is limited to 60% of the income to the extent the deductible base amount of EUR 1 Mio. is exceeded. Thus, a significant tax liability might otherwise be incurred.
Read More from: Business Finance & Restructuring News - Weil
Are you looking over your shoulder for the repo man every time you park your car?
You’re not alone.
Delinquent car loans are on the rise: almost 1 in 20 vehicle loans are in default.
If you’re in that group of Americans struggling to pay for your wheels, there are solutions in bankruptcy.
If you can’t make the car payments, your money troubles probably extend beyond the car. Bankruptcy may offer an exit ramp from debt worries.
So, what can bankruptcy do for you and your delinquent car loan?
You can stretch out the repayment period in Chapter 13.
Read More from: Northern California Bankruptcy Lawyer
This news story caught my eye. It struck me as odd. The White House dismissed 6 staffers who were “walked out of the building by security after not passing the SF 86.”
In my experience, the security clearance process does not work in this manner. In practical terms, the way the system works is that someone applies for a job that requires a security clearance. At that point, now that he or she is “sponsored” by the employer for a job that requires a clearance, the facility security officer (FSO) of that employer will put that person in for a security clearance through the Joint Personnel Adjudication Process (JPAS system). It is a slow process but, hopefully within a two month or so time period, an interim clearance will be granted if there are no immediate background issues such as criminal convictions or any derogatory information in the FBI database.
Read More from: Bonds & Botes, P.C.
This is an issue that comes up fairly often, although normally no objections are made for a Rule 2004 examination. As long as the lawyer is not obstructive, it is usually not worth the additional time and expense of filing an objection. In In re Craig, Ch. 7 Case No.
Read More from: Georgia Bankruptcy Blog
It is the rare Chapter 7 case that ends up with sufficient estate assets to pay all claims in full, plus interest as required by 11 U.S.C. §726(a)(5). The question addressed by Judge Sacca in In re Robinson, Ch. 7 Case No.
Read More from: Georgia Bankruptcy Blog