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This is a joint post by Mitu Gulati and Mark Weidemaier

As we discussed in a couple of earlier posts, we have been thinking recently about the use of exit consents to restructure sovereign debt, especially in the context of Venezuela and PDVSA, the state oil company. Though focused on corporate workouts, Bill Bratton and Adam Levitin's new paper, The New Bond Workouts, raises questions that also matter in the sovereign context. Bratton and Levitin give a detailed account of the Second Circuit's Marblegate opinion, a 2-1 decision that seems to authorize very aggressive use of the exit consent technique. (Creditors were essentially given a choice between accepting the restructuring plan or being left with claims against an entity that was nothing more than an empty shell.) Bratton and Levitin generally approve of the Second Circuit's decision, but also suggest that courts should revive the doctrine of intercreditor good faith to police against coercive workouts of bond debt.

Read More from: Credit Slips

19 hours 26 min ago

The more vocal millennial generation is pushing companies like Bank of America to redefine diversity in the workplace to include more freedom of expression.

Read More from: BankThink

2 days 13 min ago

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.

Read More from: BankThink

2 days 12 hours ago

Former Goldman wunderkind Eric Mindich closes $7 billion Eton Park hedge fund as returns suffer, assets shrink; San Francisco Fed chief says bank culture is regulatory concern.

Read More from: BankThink

2 days 12 hours ago

Regulators issued determinations on living wills for 16 midsize and specialty banks Friday morning, finding only Northern Trust’s submission lacking.

Read More from: BankThink

2 days 12 hours ago

Archaic regulatory frameworks are curbing progress in fintech. We must modernize our rules so they address an internet- or mobile-based economy.

Read More from: BankThink

2 days 12 hours ago

Germany's state-owned development bank KfW, which gained publicity for erroneously transferring hundreds of millions of euros to Lehman Brothers the day the U.S. firm filed for bankruptcy, has done it again.

Read More from: BankThink

2 days 12 hours ago

The Federal Reserve sent nearly $91.5 billion to the U.S. Treasury, according to the central bank’s annual independent audit released Friday.

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2 days 12 hours ago

Technology is moving at light speed beyond smartphones. To compete in this environment, banks need to zero in on solving for basic human needs.

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2 days 12 hours ago

The administration wants to deal with the concerns of banks of all sizes in its deregulatory efforts, Treasury Secretary Steven Mnuchin said Friday.

Read More from: BankThink

2 days 12 hours ago

Ann Marie Mehlum, who has joined a lending platform called SmartBiz Loans after stints as a community banker and an SBA official, says the combination of fintech and old-fashioned banking could bring back small-business loans under $100,000.

Read More from: BankThink

2 days 12 hours ago

Northwest Bancorp in Spokane said it has agreed to acquire the $131.1 million-asset CenterPointe Community Bank in Hood River, Ore.

Read More from: BankThink

2 days 12 hours ago

The Trump administration’s interest in reinstating barriers between commercial and investment banking is sparking conversations about what such a proposal would entail.

Read More from: BankThink

2 days 12 hours ago

Bank3 started as a $12 million-asset institution with a single branch, no online banking and a core system that was obsolete. Now it's much more.

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2 days 12 hours ago

The Consumer Financial Protection Bureau issued a proposal that would give mortgage lenders more flexibility in collecting information on race, sex and ethnicity of home loan applicants.

Read More from: BankThink

2 days 12 hours ago

Jevic: The Supreme Court Gives Structure to Chapter 11 Structured Dismissals

On March 22, 2017, the Supreme Court, in Czyzewski et al., v. Jevic Holding Corp., et al.,  confirmed that the Bankruptcy Code does not permit “priority skipping” in Chapter 11 structured dismissals.  In doing so, the Court held that, although the Code does not explicitly provide what, if any, priority rules apply to the distribution of estate assets in a Chapter 11 structured dismissal,  “[a] distribution scheme in connection with the dismissal of a Chapter 11 case cannot, without the consent of the affected parties, deviate from the basic priority rules that apply under the
. . . Code.”

Jevic Holding Corp. (“Jevic”) filed for Chapter 11 following a failed leveraged buyout.  Jevic owed $53 million to its senior secured creditors and over $20 million to tax and general unsecured creditors.  Jevic’s Chapter 11 filing generated two significant legal actions: (1) a claim from its employees that Jevic, and others, had violated state and federal Worker Adjustment and Retraining Notification (“WARN”) Acts; and (2) an action for fraudulent conveyance brought by the official unsecured creditors’ committee (the “Committee”) against Sun Capital Partners, Inc. (“Sun”), Jevic’s private equity owner, and its secured lender, CIT Group, Inc. (“CIT”). 

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2 days 12 hours ago

Over at Dealb%k.  (BTW, I don't pick the pictures).

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2 days 13 hours ago

Attorney Ed WoodsNormally, I blog about current events or about how we can help consumers can get real relief from financial pressures under the law. In today’s post, I digress to recognize one of our own. Recently, we celebrated the twenty year anniversary of our friend and trusted employee, Leann Wilkinson. Where has the time gone?

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

2 days 13 hours ago

A faster network is letting the regional bank bring new technology into its branches and share data with fintech partners via APIs.

Read More from: BankThink

3 days 13 min ago

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