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(by Elizabeth Carden of the ABI) (by Dave’s iPhone) The American Bankruptcy Institute held its 20th Annual Southeast Bankruptcy Workshop on Amelia Island last week. At the conference, we heard Prof. Michelle Harner, the Reporter for the ABI Commission Report, talk about the Commission’s recommendations regarding “structured dismissals.” That’s fitting because that is the focus of this post in Plan Proponent’s series on the plan confirmation-related recommendations in the ABI Commission Report (and, in particular, its Exiting the Case piece). In this post, we’ll wrap-up the Exiting the Case piece by covering Section G of the Report regarding “Orders Resolving Chapter 11 Cases.” Background

Read More from: Plan Proponent

5 hours 10 min ago
Construction of the Baha Mar resort on the beach on New Providence island, Bahamas, May 2014.
Craig Karmin/The Wall Street Journal
The Export-Import Bank of China and a contractor want Bahamas resort Baha Mar’s bankruptcy tossed.  Read the Daily Bankruptcy Review article via The Wall Street Journal. (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 http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) Caesars is having an emergency hearing Wednesday to see if it can appeal immediately a judge’s decision not to halt lawsuits against its parent company, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

5 hours 13 min ago
Construction of the Baha Mar resort on the beach on New Providence island, Bahamas, May 2014.
Craig Karmin/The Wall Street Journal
The Export-Import Bank of China and a contractor want Bahamas resort Baha Mar’s bankruptcy tossed.  Read the Daily Bankruptcy Review article via The Wall Street Journal. (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 http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) Caesars is having an emergency hearing Wednesday to see if it can appeal immediately a judge’s decision not to halt lawsuits against its parent company, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

5 hours 13 min ago
In re RML Dev., Inc., 528 B.R. 150 (Bankr. W.D. Tenn. 2014) – A mortgagee sought to modify a sale order to (1) modify the bid procedures and (2) confirm that it had a right to credit bid. The debtor obtained … Continue reading →
6 hours 51 min ago
We are well out of the .com bubble, but tech companies still form and fail.  For the lenders brave enough to lend to the tech companies developing software, the collateral is often the source code which is the nuts and bolts of an application or “app”.  While the source code is actually a written text written in some development code, it exists in the abstract and it thus an intangible in that sense.  However, unlike most collateral intangibles, this type often requires the original developer to make the source code worth anything more than a line item on a security agreement. Consider for a moment the case of Aereo, Inc., which filed bankruptcy is late 2014.  It was a company which developed a web based app which allowed users to watch TV on mobile devices or over an internet connection at home.  Basically, Aereo, Inc. received the cable/TV signal from the normal sources, e.g., cable and antenna, and then converted the signal to be routed through the internet to the subscribers. In the course of developing this technology, Aereo raised about $250 million in equity from inventors.  So, presumably someone believed in the product.  (Admittedly, there was no secured debt).  Additionally, Aereo listed its assets as worth $20 million when it filed bankruptcy in November 2014.

Read More from: Tough Times for Lenders

13 hours 24 min ago
Or a bit of this this and that. I've totally neglected cross-posting my writings on Dealbook here on Slips, so I give you two recent columns:
  • The first, on Chase's living will, version 3.0 or thereabouts.
  • The second, on the confusing Baha Mar bankruptcy case. Since I wrote that one, the Bahamian court has rejected a petition to recognize the Delaware chapter 11 case under the Bahamian equivalent of chapter 15.

Read More from: Credit Slips

23 hours 47 min ago
Federal lawmakers have a proposal to kill “zombie” debts for people whose credit-card bills survived bankruptcy. Consumer advocacy groups are cheering on several U.S. senators—all Democrats—who have drawn up the Consumer Reporting Fairness Act of 2015, which would force major banks and other creditors to notify credit reporting firms when a person’s debt has been canceled by a bankruptcy judge. It would also empower credit-card borrowers who have inaccurate credit reports after bankruptcy to sue banks and third-party debt buyers for damages. The bill comes after several once-bankrupt borrowers sued several big banks, accusing them of letting poor marks for unpaid debt remain on their credit reports even after the debt was canceled in bankruptcy.

Read More from: WSJ.com: Bankruptcy Beat

1 day 4 min ago
Federal lawmakers have a proposal to kill “zombie” debts for people whose credit-card bills survived bankruptcy. Consumer advocacy groups are cheering on several U.S. senators—all Democrats—who have drawn up the Consumer Reporting Fairness Act of 2015, which would force major banks and other creditors to notify credit reporting firms when a person’s debt has been canceled by a bankruptcy judge. It would also empower credit-card borrowers who have inaccurate credit reports after bankruptcy to sue banks and third-party debt buyers for damages. The bill comes after several once-bankrupt borrowers sued several big banks, accusing them of letting poor marks for unpaid debt remain on their credit reports even after the debt was canceled in bankruptcy.

Read More from: WSJ.com: Bankruptcy Beat

1 day 4 min ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? Many sectors go through cycles of restructurings and bankruptcies, but retail has consistently been a troubled sector that draws the watchful eye of lenders, trade creditors and restructuring professionals. The ever-changing tastes of consumers, technology and macroeconomic factors that drag on consumer spending and confidence are among the factors that put retailers at higher risk for operational and financial distress. Consumers’ emotions tend to run high when they see their favorite store in a distressed situation, especially if they have a gift card or are part of a loyalty program. The 2005 amendment to the bankruptcy code gave certain counterparties, specifically trade vendors and landlords, significant leverage and extra protection. These changes shifted the dynamic in retail cases as debtors have potentially more administrative claims and less time to reject leases. However, consumer programs—which include gift cards, return policies and other loyalty programs—have generally fallen under the protection of state attorneys general.

Read More from: WSJ.com: Bankruptcy Beat

1 day 1 hour ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? Many sectors go through cycles of restructurings and bankruptcies, but retail has consistently been a troubled sector that draws the watchful eye of lenders, trade creditors and restructuring professionals. The ever-changing tastes of consumers, technology and macroeconomic factors that drag on consumer spending and confidence are among the factors that put retailers at higher risk for operational and financial distress. Consumers’ emotions tend to run high when they see their favorite store in a distressed situation, especially if they have a gift card or are part of a loyalty program. The 2005 amendment to the bankruptcy code gave certain counterparties, specifically trade vendors and landlords, significant leverage and extra protection. These changes shifted the dynamic in retail cases as debtors have potentially more administrative claims and less time to reject leases. However, consumer programs—which include gift cards, return policies and other loyalty programs—have generally fallen under the protection of state attorneys general.

Read More from: WSJ.com: Bankruptcy Beat

1 day 1 hour ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain?  A plethora of laws and advocacy groups protect the interests of U.S. consumers. Of greater concern should be the escalating rate of store closures and business failures among retailers ranging from Target and J.C. Penney to RadioShack and Wet Seal as these affect jobs, incomes and property values. The issue is threefold. It has long been recognized that retail is overburdened by real estate. The country by most metrics is overstored with, for example, 20 square feet per capita of shopping center space compared to the runner-up, the U.K., at only 3 square feet. This fixed investment increases operating leverage on businesses already subject to volatile product cycles and compressed margins.

Read More from: WSJ.com: Bankruptcy Beat

1 day 1 hour ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain?  A plethora of laws and advocacy groups protect the interests of U.S. consumers. Of greater concern should be the escalating rate of store closures and business failures among retailers ranging from Target and J.C. Penney to RadioShack and Wet Seal as these affect jobs, incomes and property values. The issue is threefold. It has long been recognized that retail is overburdened by real estate. The country by most metrics is overstored with, for example, 20 square feet per capita of shopping center space compared to the runner-up, the U.K., at only 3 square feet. This fixed investment increases operating leverage on businesses already subject to volatile product cycles and compressed margins.

Read More from: WSJ.com: Bankruptcy Beat

1 day 1 hour ago
Your credit score, commonly referred to as your FICO score, measures a consumer’s credit risk. It is calculated based on your paying history with current lenders. If you pay your bills on time, you likely have a high score – possibly over 700. If you’ve missed many payments, you could have a score as low as 300. Some people may even have a “zero” credit score, meaning they don’t have enough history to be properly analyzed by FICO’s software. The higher your score, the more options you have in the marketplace for obtaining new credit. With a low credit score, options for getting approved for a new line of credit is often bleak. Historically, anyone with a poor credit score hasn’t been able to get a loan or only has had access to very high interest loans. FICO, a California-based software company, recently unveiled a pilot program that could give people with low or zero credit scores easier access to credit. The program looks at paying habits in a new light. Instead of analyzing loan repayments, the pilot program will calculate scores based on a consumer’s ability to make utility bill payments. FICO believes this program may make credit cards and possibly affordable auto loans available to people who would have been turned down for credit based on the usual FICO score calculation.
1 day 1 hour ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? Brick-and-mortar retailing is in upheaval. The Internet is changing the way people shop and buy, in case any brick-and-mortar retailer hasn’t yet noticed. Traditional retailers that can’t adjust quickly enough will end up in chapter 11. When one does, customers can face problems with their gift cards, warranty claims, return-if-not-satisfied privileges and assurances of privacy protection regarding their customer information. RadioShack is one of the retailers in bankruptcy. The Texas attorney general sued RadioShack over unused gift cards and vowed to protect consumer privacy in RadioShack’s bid to sell consumer data.

Read More from: WSJ.com: Bankruptcy Beat

1 day 2 hours ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? Brick-and-mortar retailing is in upheaval. The Internet is changing the way people shop and buy, in case any brick-and-mortar retailer hasn’t yet noticed. Traditional retailers that can’t adjust quickly enough will end up in chapter 11. When one does, customers can face problems with their gift cards, warranty claims, return-if-not-satisfied privileges and assurances of privacy protection regarding their customer information. RadioShack is one of the retailers in bankruptcy. The Texas attorney general sued RadioShack over unused gift cards and vowed to protect consumer privacy in RadioShack’s bid to sell consumer data.

Read More from: WSJ.com: Bankruptcy Beat

1 day 2 hours ago
In the years ahead, look for projects that leverage the Bitcoin network to greatly expand mainstream banking infrastructure's reach into new markets Â-- particularly those in volatile economies.

Read More from: BankThink

1 day 2 hours ago
Wall Street Journal If you can't trust your lawyer, who can you trust? Visa, MasterCard and millions of merchants may see the $6 billion settlement of a class-action lawsuit go up in smoke. The reason is what a legal ethics expert described as "gross misbehavior" by the lawyers involved. The settlement resolved a lawsuit alleging the credit-card networks engaged in price-fixing when they banned merchants from charging customers more when they used a credit card instead...

Read More from: BankThink

1 day 3 hours ago
Authored by Edward L. Kelly and Karl R. Grussand Edward L. Kelly and Karl R. Gruss of Rogers TowersParties claiming a violation of the Fair Housing Act (“FHA”), 42 U.S.C. § 3601 et seq., need not prove intentional discrimination to prevail, according to a recent ruling handed down by the United States Supreme Court. So long as a claimant can show that a practice or policy results in a disproportionately negative effect on housing opportunities when measured on the basis of race, color, religion, sex, handicap, familial status or national origin, the claimant may obtain relief under the FHA, even where there is no allegation or indication of intentional discrimination. Fair Housing Act

Read More from: Florida Banking Law Blog

1 day 3 hours ago
The WSJ reports that the SEC will likely adopt a pay ratio rule next week.  Amidst intense speculation over whether the final rule will provide any flexibility to companies regarding counting non-U.S. and part time or temporary workers when determining the median employee, the article states that the SEC intends to allow companies to exclude 5% of its overseas workforce.  
1 day 4 hours ago
Construction of the Baha Mar resort on the beach on New Providence island, Bahamas, July 2014. 
Baha Mar
Bahamas resort Baha Mar’s developer Sarkis Izmirlian wants its lender to get rid of its contractor. Read the Daily Bankruptcy Review article via The Wall Street Journal. (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 http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) Funder-backed litigation investors are looking at bankruptcy as a new source, DBR reports in WSJ. As DBR reports in WSJ, some Democratic lawmakers are proposing a bill that would make it easier for people who have gotten rid of credit-card debt in bankruptcy to fix inaccurate credit reports.

Read More from: WSJ.com: Bankruptcy Beat

1 day 5 hours ago

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