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Banks are being "unbundled" by challengers in numerous business lines, but they can recapture the relationship with the help of technology and the right mindset.

Read More from: BankThink

4 hours 11 min ago
On October 8, 2015, Malibu Lighting Corporation and 6 affiliates filed for relief under chapter 11 of the Bankruptcy Code.  The cases are jointly administered under Case Number 15-12080 and presided over by Judge Gross.  The first day hearing was held on October 9, 2015.  The second day hearing is scheduled for October 27, 2015 at 10:00 a.m. The majority of the information available about the Debtors comes from the Declaration of David M. Baker in Support of First Day Motions (D.I. 3) (the “Declaration”).  There are three primary debtors in these cases:  Malibu Lighting Corporation (“MLC”), Outdoor Direct Corporation (“ODC”), and National Consumer Outdoors Corporation (“NCOC”).  The Debtors filed these chapter 11 cases in order to effectuate an orderly disposition of their assets in a manner that will maximize recoveries by all constituents, including a going concern sale of the operating assets of NCOC and orderly liquidation sales of assets of MLC and ODC. MLC was a manufacturer and supplier of outdoor and landscape lighting products.  MLC’s assets currently consist primarily of inventory, accounts receivable, intellectual property, and equipment.  The bulk of its assets are currently being marketed for sale by the Debtors’ proposed investment banker, Piper Jaffray & Co.
9 hours 23 min ago
Three women who allege they were repeatedly promised “life-changing” experiences by Relativity Media LLC as part of a short-lived reality show say the bankrupt Hollywood studio’s empty pockets should not let it off the hook for its empty promises. In a lawsuit filed last month in Texas, three Houston-area sex workers say Relativity never delivered on housing, health care, legal services and other assistance promised for their participation in the controversial A&E reality series “8 Minutes.” And in a complaint filed Sunday with the U.S. Bankruptcy Court in Manhattan, the three women, who want their case heard by a jury, asked a bankruptcy judge not to allow Relativity to escape their lawsuit as part of its ongoing chapter 11 case. Filing for bankruptcy temporarily freezes all litigation and allows for some types of lawsuits to be discharged, though exceptions are made when the suit involves certain kinds of fraud. A spokesman for Relativity declined to comment Monday.

Read More from: Bankruptcy Beat

11 hours 23 min ago
Brendan McDermid/Reuters
The lawyers who raked in more than $200 million for MF Global’s investors are now seeking their own payday. Bernstein Litowitz Berger & Grossmann LLP and Bleichmar Fonti Tountas & Auld LLP are seeking a total of $42.1 million—$38.8 million in fees and $3.3 million in expenses—for their work leading the charge in shareholder litigation against the failed brokerage, its former officials, its auditor and others. The lawsuit claimed MF Global misled investors about its business and financial results leading up to the its 2011 collapse. Officials have disputed wrongdoing in connection with the brokerage firm’s demise. The lawyers say in court papers that the payday is warranted in light of what they call their “skill, tenacity and effective advocacy,” which to date has procured settlements with all defendants except for some of its underwriters, who continue to face litigation.

Read More from: Bankruptcy Beat

12 hours 9 min ago
If you make above the median income, the means test has to be completed to determine whether you qualify to file chapter 7 without a presumption of abuse.  However, if you are a member of the National Guard or Reserves, you may be exempt from the means test and able to file chapter 7 regardless of your income, if you meet the following criteria:
  • You are member of the Army Reserve, Navy Reserve, Marine Corps Reserve, Air Force Reserve, Coast Guard Reserve, Army National Guard or Air National Guard.
  • Performed the following service for at least 90 days:
    1. Active duty after September 11, 2001, or
    2. Homeland Defense

Read More from: Bonds & Botes, P.C.

13 hours 11 min ago
Upcoming Committee Formation Meeting: October 16, 2015 at 10:00 a.m. Case Name: Taylor-Wharton International LLC, et al. Case Number:15-12075 (BLS) Location: J. Caleb Boggs Federal Building, 844 King St., Room 5209, Wilmington, DE 19801 The petition and consolidated list of top 30 creditors, the first day declaration and the docket are available through Logan & Company, Inc. The Notice of Formation Meeting (including the creditor questionnaire) is available here. Contact Norman L. Pernick or Nicholas J. Brannick for more information.
14 hours 28 min ago
Perhaps you don’t feel you have any reason to believe your credit report is anything but clean and shiny. Or, you know for a fact that it’s quite tarnished and have decided ignorance is bliss. Or, maybe you are somewhere in between but just don’t understand why it’s worth checking anyway. Maybe you think, “even if there are mistakes on my credit report, what can I do about it anyway?” Regardless of which of those scenarios, or any others, you may fall into, there is something you need to know – and believe. A bad credit report can impact you in more ways than you can imagine. You probably figure you won’t be able to get loans easily if you have a bad credit score. However, you also will have trouble getting a job, an apartment and even insurance because almost everyone checks credit reports these days. Therefore, it’s important you know that your credit report does matter and that you can make corrections if there are mistakes. If your report is tarnished because of your own doing, you can take steps to repair your credit that will make a big difference going forward. Knowledge is power. Here is some advice to help you avoid costly mistakes.
14 hours 49 min ago
When a bankruptcy case is dismissed for cause pursuant to section 1112(b) of the Bankruptcy Code, the effect of the dismissal on orders entered during the case is not always clear.  A recent District of Delaware decision, In re Scarborough-St. James Corporation, sheds some light on the effect of an 1112(b) dismissal on a lease rejection order.  The court ultimately found that a lease rejection terminates the debtor’s possessory rights in the leased premises and that section 349(b) does not revest those possessory rights to the debtor upon a dismissal.  The court also found that its stay relief/adequate protection order, which had given effect to a state court order, would also survive the dismissal.   Background The debtor was the lessee and sublandlord of a shopping center located in Richmond, Michigan.  The debtor, which managed the shopping center and collected rents from eight subtenants, became embroiled in a messy dispute over who was entitled to the rents generated from the subtenants – the debtor or the landlord.  On the eve of a state court hearing on an eviction action brought by the landlord, the debtor filed for chapter 11 protection, resulting in a stay of the state court litigation.
14 hours 57 min ago
The U.S. Supreme Court recently heard oral arguments in Hawkins v. Community Bank of Raymore.  The Court is considering a circuit split to determine if a spousal guarantor is an “applicant” protected by the Equal Credit Opportunity Act (ECOA).  At issue is Regulation B which interpreted the ECOA’s definition of “applicant” to include a spouse-guarantor.  The question is should the term “applicant” include the person who is not directly applying for a loan.  Chief Justice Roberts, along with Justices Alito and Scalia, focused on the plain meaning of the term “applicant” which would preclude the need to give deference to Regulation B.  The questions from Justices Sotomayor and Ginsburg suggested a willingness to consider the term ambiguous and in need of further explanation by the CFPB, the agency tasked with overseeing the ECOA.  Sixth Circuit precedent grants deference to the CFPB and applies Regulation B.  The Eighth Circuit does not.  Until the Court decides Hawkins, creditors should be wary of an unexpected ECOA violation being raised by a spouse-guarantor.

Read More from: Creditors' Sidebar

16 hours 23 min ago
2016 Presidential candidate Carly Fiorina telegraphs a message that the mortgage industry would do well to heed.

Read More from: BankThink

16 hours 41 min ago
Former Lehman Brother bond trader Jonathan Hoffman lost a “double-dip” bid for an $83 million bonus he said he was owed. The Wall Street Journal has the Daily Bankruptcy Review article here. (Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit, scroll to the bottom and click “try for free.”) The bankruptcy trustee for TelexFree’s chapter 11 case wants a formal ruling on the company’s alleged pyramid scheme, DBR reports via WSJ. According to WSJ, a Canadian court approved United States Steel Corp.’s efforts to separate its Canadian unit.

Read More from: Bankruptcy Beat

17 hours 13 min ago
Series: Newbie Litigator School This webinar will discuss how to effectively use evidence in the courtroom. Read more here.
17 hours 14 min ago
The United Arab Emirates (UAE) appears to be finally in the process of issuing a long-awaited new federal insolvency law. Described by some as a game-changer, the government announced in July that its Cabinet has approved a draft of the new law replacing the old (and largely unused) insolvency regime. The highly anticipated law is now pending the approval and ratification of the Federal National Council and Supreme Council before it receives final approval by Sheikh Khalifa bin Zayed bin Sultan Al Nahyan, the UAE President. Similar announcements have been made since 2010 based on the growing demand for a clear and modern insolvency law in the wake of the global financial crisis. Currently, while the UAE ranked 22nd in the World Bank’s influential Doing Business 2015 index last October, up from 25th position for the previous year, the country’s ranking for resolving insolvency matters slipped to 92nd position from 88th, below countries including Cote d’Ivoire and Mongolia.  The need for improvement in this important sector is clearly evident.

Read More from: eSQUIRE Global Crossings

22 hours 16 min ago
It’s been estimated that about 80% of people in the United States have credit report errors.  Those statistics are from 2009, so it’s likely that those numbers are higher in light of the rampant mortgage-related issues over the past few years. Under the Fair Credit Reporting Act, nobody is allowed to furnish inaccurate or incomplete information about you to a consumer reporting agency. Furnishers of information (typically creditors and debt collectors) have a legal duty to investigate disputes regarding credit report errors, as well as to prevent identity theft and protect sensitive medical information. If you have errors on your credit report, there are a few things you can to do to fix the problem. 4 Simple Steps To Take If You Find Credit Reporting Errors If you think there are errors on your credit report you should take these simple steps:
  1. get copies of all three (3) major credit reports – Experian, Equifax and TransUnion;
  2. review every line of every single report – remember, not all credit reports say the same things;
  3. if there’s an error on a report, file a complaint with the CFPB as well as a request for investigation with each credit reporting agency;
  4. review the updated credit reports to ensure that the errors are corrected.
If You Find An Error on Your Credit Report
23 hours 11 min ago
Bank of America's ops and tech chief is looking to discuss the Internet of Things, innovation, diversity and recruitment at this week's global wholesale banking conference.

Read More from: BankThink

2 days 4 hours ago
Bank of America's ops and tech chief is looking to discuss the Internet of Things, innovation, diversity and recruitment at this week's global wholesale banking conference.

Read More from: BankThink

2 days 4 hours ago
In re Revel AC, Inc., No. 15-1253, 2015 WL 5711358 (3d Cir. Sept. 30, 2015) Although seemingly clear cut and established under controlling law, the Third Circuit Court of Appeals recently took the opportunity it is so seldom given to focus on how to balance the four factors that determine whether to grant a stay pending appeal under Bankruptcy Rule 8007.  See Fed. R. Bankr. P. 8007.  As a reminder to our readers, the four factors relevant to a stay pending appeal analysis are:  (1) whether the stay applicant has made a strong showing that it is likely to succeed on the merits; (2) whether the applicant will be irreparably injured absent a stay; (3) whether issuance of the stay will substantially injure the other parties interested in the proceeding; and (4) where the public interest lies.  Following an in-depth examination into these factors and the case precedent addressing their balancing, the Court set forth the following principles: Read More › Tags: Appeals, Stay Pending Appeal

Read More from: Delaware Bankruptcy Insider

2 days 15 hours ago
Don Ryan/Associated Press
Supermarket operator Haggen Holdings LLC heads to court twice next week. Tuesday, the company is looking for final approval for a bankruptcy loan so it can cover payroll and other expenses during its stay in bankruptcy. The grocer, which won interim approval of the financing last month, secured $200 million in financing from lenders led by PNC Bank. Thursday, Haggen is back in the Wilmington, Del., bankruptcy court looking for permission to close 100 stores. The company needs to pay off lenders who helped finance its deal to buy nearly 150 stores earlier this year from grocery chain Albertsons. Haggen has hired Hilco Merchant Resources LLC to help it liquidate the stores. In court papers, Haggen said that given its “severe liquidity constraints and the significant operating losses…it is imperative that the Store Closing Sales with respect to such stores commence immediately.” Haggen filed for bankruptcy protection last month, less than a year after the deal with Albertsons increased its number of stores to 164 from 18, with locations throughout the Pacific Northwest. Earlier this week, Haggen announced plans to sell off 36 stores to buyers who would keep those locations open.

Read More from: Bankruptcy Beat

3 days 12 hours ago
Congress made clear in its enactment of section 503(b)(3)(D) of the Bankruptcy Code that, to the extent a creditor makes a substantial contribution in a chapter 9 or chapter 11 bankruptcy case, that creditor should be rewarded.  Because the reward — reimbursement of fees and expenses as administrative expenses of the estate — is paid with funds that would otherwise be available to other creditors, oftentimes a request for a substantial contribution claim is met with resistance.  While substantial contribution claim litigation typically focuses on whether the creditor seeking reimbursement actually provided a contribution to the estate, a recent decision by the Sixth Circuit shows us that the debate surrounding section 503(b)(3)(D) does not stop there.  Rather, in In re Connolly North America, LLC, the court was asked to determine whether a creditor could assert a substantial contribution claim in a chapter 7 proceeding, notwithstanding  that the statute explicitly mentions the availability of these types of claims only in chapter 9 or chapter 11 cases.  Much to the relief of the petitioning creditors in Connolly, the Sixth Circuit answered yes (albeit in a 2-1 decision, demonstrating that the issue is a close call). 
3 days 14 hours ago
Series: Business Transition and Exit Planning 2015 A good business is likely to generate multiple purchase offers, and each may be very different than the others. Even multiple offers for the same price will often vary a great deal. This webinars will discuss concepts and issues such as “ability to close, ” conditions precedent to a buyer’s obligation to close, purchase price adjustments, and other key terms that need to be considered when comparing competing offers. Read more here.
3 days 15 hours ago