ABI Blog Exchange

This undated file photo provided by Hilton Hawaiian Village Beach Resort & Spa shows Duke Kahanamoku Beach in Waikiki, Hawaii.
Associated Press
Hawaii’s Hilo Hattie stores have filed for bankruptcy with the hope of surviving as one of the island’s popular spots for tourists to buy travel trinkets and souvenirs. The struggling chain, which recently closed three of its seven stores, filed for bankruptcy protection on Thursday with $2.2 million worth of inventory. That inventory includes the quintessential Hawaiian floral-printed shirt, generously draping muumuus and an array of macadamia nut-inspired things like this tin of vanilla/macadamia nut-flavored cigars. (The clothing section even sells matching apparel sets so everyone in the family can coordinate with the same print!) In documents filed in U.S. Bankruptcy Court in Honolulu, Chief Operating Officer Mark Storfer blamed the company’s problems on slow sales. In the company’s most recent fiscal year, it sold about $15.6 million worth of products—down from $23.6 million the year before.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
This undated file photo provided by Hilton Hawaiian Village Beach Resort & Spa shows Duke Kahanamoku Beach in Waikiki, Hawaii.
Associated Press
Hawaii’s Hilo Hattie stores have filed for bankruptcy with the hope of surviving as one of the island’s popular spots for tourists to buy travel trinkets and souvenirs. The struggling chain, which recently closed three of its seven stores, filed for bankruptcy protection on Thursday with $2.2 million worth of inventory. That inventory includes the quintessential Hawaiian floral-printed shirt, generously draping muumuus and an array of macadamia nut-inspired things like this tin of vanilla/macadamia nut-flavored cigars. (The clothing section even sells matching apparel sets so everyone in the family can coordinate with the same print!) In documents filed in U.S. Bankruptcy Court in Honolulu, Chief Operating Officer Mark Storfer blamed the company’s problems on slow sales. In the company’s most recent fiscal year, it sold about $15.6 million worth of products—down from $23.6 million the year before.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
Going-out-of-business sales are underway at Delia’s 92 retail stores around the country, including this one in Roseville, Calif.
Sara Randazzo
Tuesday in White Plains, N.Y., liquidating retailer Delia’s Inc. will ask a judge to approve the $2.5 million sale of its Delia’s and Alloy Brands to a group of investors that previously spun off Alloy. The sale would see the two staple catalog teen retailers reunited. In 2013, Delia’s sold the Alloy brand to investors Steve Russo and Brian Lattman for $3.7 million in cash plus $3.1 million in assumed liabilities, according to a securities filing. Alloy operates as an online- and catalog-only retailer. Mr. Russo previously founded FAB NY, a youth retailer, and Artisan House, a handbag company. Mr. Lattman, who currently serves as Alloy’s chief executive, previously was the chief merchandising officer for Norstan Apparel Shops and LANY LLC, two other apparel retailers. Delia’s filed for chapter 11 bankruptcy in December with Hilco and Gordon Brothers already in place to liquidate the inventory remaining at its 92 locations.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
Going-out-of-business sales are underway at Delia’s 92 retail stores around the country, including this one in Roseville, Calif.
Sara Randazzo
Tuesday in White Plains, N.Y., liquidating retailer Delia’s Inc. will ask a judge to approve the $2.5 million sale of its Delia’s and Alloy Brands to a group of investors that previously spun off Alloy. The sale would see the two staple catalog teen retailers reunited. In 2013, Delia’s sold the Alloy brand to investors Steve Russo and Brian Lattman for $3.7 million in cash plus $3.1 million in assumed liabilities, according to a securities filing. Alloy operates as an online- and catalog-only retailer. Mr. Russo previously founded FAB NY, a youth retailer, and Artisan House, a handbag company. Mr. Lattman, who currently serves as Alloy’s chief executive, previously was the chief merchandising officer for Norstan Apparel Shops and LANY LLC, two other apparel retailers. Delia’s filed for chapter 11 bankruptcy in December with Hilco and Gordon Brothers already in place to liquidate the inventory remaining at its 92 locations.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
Going-out-of-business sales are underway at Delia’s 92 retail stores around the country, including this one in Roseville, Calif.
Sara Randazzo
Tuesday in White Plains, N.Y., liquidating retailer Delia’s Inc. will ask a judge to approve the $2.5 million sale of its Delia’s and Alloy Brands to a group of investors that previously spun off Alloy. The sale would see the two staple catalog teen retailers reunited. In 2013, Delia’s sold the Alloy brand to investors Steve Russo and Brian Lattman for $3.7 million in cash plus $3.1 million in assumed liabilities, according to a securities filing. Alloy operates as an online- and catalog-only retailer. Mr. Russo previously founded FAB NY, a youth retailer, and Artisan House, a handbag company. Mr. Lattman, who currently serves as Alloy’s chief executive, previously was the chief merchandising officer for Norstan Apparel Shops and LANY LLC, two other apparel retailers. Delia’s filed for chapter 11 bankruptcy in December with Hilco and Gordon Brothers already in place to liquidate the inventory remaining at its 92 locations.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
A recap of the informed opinions (and the discussions they generated) on BankThink this week, including the Fed's proper role in speeding up the payment system; the perennial TBTF debate; and the privacy implications of anti-laundering regulations.

Read More from: BankThink

1 week 3 days ago
When the sheriff arrives at your employer, or your bank, or your business with a levy in hand, you want to know NOW, and FOR CERTAIN,  what part of your assets are protected by an exemption under California law. Exemptions are measured in dollars:   $X of equity in a car, for example, is exempt. To be meaningful, those dollar amounts change over time and with new legislation. Yet my Google search this morning returned in first place the exemption amounts for 2005.  In fact, all but one of the first page results returned by Google on a search for “California exemptions” was outdated. California exemptions in 2015 The 2015 edition of California exemptions, available in bankruptcy and out of bankruptcy, is published by the Judicial Council.  They are found, largely, in the California Code of Civil Procedure, starting with Section 704. But most of the online versions of the CCP are several years behind the times.  Look in the statutes and you are still likely to get stale information.
CURRENT CALIFORNIA EXEMPTIONS
1 week 3 days ago
Paula Manago, of Cliffside Park, N.J., gathers shells along the ocean near the Revel Hotel Casino early Tuesday, Sept. 2, 2014, in Atlantic City, N.J.
Associated Press
A bankruptcy judge on Thursday terminated a $95 million purchase agreement between the Revel Casino Hotel and Glenn Straub, the final step in the slow-motion unraveling of the Florida developer’s attempts to buy the Atlantic City casino. 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 http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) A judge on Thursday said another $2.2 billion can be paid to former employees and other creditors of Lehman Brothers Holdings Inc.’s collapsed brokerage arm, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
Paula Manago, of Cliffside Park, N.J., gathers shells along the ocean near the Revel Hotel Casino early Tuesday, Sept. 2, 2014, in Atlantic City, N.J.
Associated Press
A bankruptcy judge on Thursday terminated a $95 million purchase agreement between the Revel Casino Hotel and Glenn Straub, the final step in the slow-motion unraveling of the Florida developer’s attempts to buy the Atlantic City casino. 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 http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) A judge on Thursday said another $2.2 billion can be paid to former employees and other creditors of Lehman Brothers Holdings Inc.’s collapsed brokerage arm, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
Paula Manago, of Cliffside Park, N.J., gathers shells along the ocean near the Revel Hotel Casino early Tuesday, Sept. 2, 2014, in Atlantic City, N.J.
Associated Press
A bankruptcy judge on Thursday terminated a $95 million purchase agreement between the Revel Casino Hotel and Glenn Straub, the final step in the slow-motion unraveling of the Florida developer’s attempts to buy the Atlantic City casino. 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 http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) A judge on Thursday said another $2.2 billion can be paid to former employees and other creditors of Lehman Brothers Holdings Inc.’s collapsed brokerage arm, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
The Subsidy Reserve Act of 2015 could solve "too big to fail" and level the playing field for smaller banks by requiring the largest financial institutions to accumulate capital equal to the amount of the market subsidy they receive.

Read More from: BankThink

1 week 3 days ago
Receiving Wide Coverage ... Hacked Off: So much for mobile banking. The Dutch company Gemalto, the world's largest maker of SIM cards for mobile phones, was hacked by a joint team from the National Security Agency and the U.K.'s counterpart intelligence agency. (The report comes from documents leaked by NSA whistleblower Edward Snowden to the website The Intercept.) Gemalto sells its SIM cards to AT&T, Sprint, T-Mobile, Verizon and other telecom companies. Gemalto's financial institution clients...

Read More from: BankThink

1 week 3 days ago
Authored by Samantha Alves Orender of Rogers TowersAs previously discussed on this blog, the Equal Credit Opportunity Act (the “ECOA”) prohibits creditors from discriminating against credit applicants based on race, religion, sex, national origin, marital status, and age among other things. But what happens when a lender violates the ECOA? What penalties will a lender be subject to for noncompliance? Enforcement and penalties for those who violate the ECOA are set forth in 15 U.S.C. § 1691e(b) and 12 C.F.R. § 1002.16. Here is a brief look at possible penalties for a lender who violates provisions of the ECOA:
  • Civil liability for actual damages.
  • Civil liability for punitive damages.
    • Punitive damages are limited to non-governmental entities.
    • Punitive damages are capped as follows:
      • The lesser of $500,000 or 1% of a creditor’s net worth in a class action lawsuit.
      • $10,000 on an individual claim.
    • Costs and attorney’s fees awarded to an aggrieved applicant in a successful private action.
    • Equitable and declaratory relief.
 

Read More from: Florida Banking Law Blog

1 week 3 days ago
Liebzeit v. Intercity State Bank (In re Blanchard), 520 B.R. 740 (Bankr. E.D. Wis. 2014) – A Chapter 7 trustee sought to avoid a mortgage on the debtors’ property using the “strong arm” powers of a hypothetical bona fide purchaser of … Continue reading →
1 week 3 days ago
Contributed by  AND . Overview France recently introduced a new, fast-track insolvency procedure called “accelerated safeguard”. The Alma restructuring was a major test case for this new procedure. It allowed the cram-down of dissenting creditors and minority shareholders (including forcing through the relevant shareholder resolutions with a simple 50% majority) – and all within a short timeline. Continue >>>
1 week 4 days ago
Join the NACTT Academy for Consumer Bankruptcy Education for another free webinar. This one entitled: Forms B22C 1 & 2:  What’s Changed? Wednesday, February 25th 2:00 Eastern    Chapter 13 Trustee Amrane Cohen and James Davis, Staff Attorney for Chapter 13 Trustee Henry E. Hildebrand, III, will bring a detailed look at the bifurcation of Form B22C – now known as B22C1 and B22C2. What to look for and pitfalls to avoid.  Register here.
1 week 4 days ago
Flickr: Jacob BotterWHO CAN KEEP PROPERTY IN A CHAPTER 7 BANKRUPTCY?Flickr: RyanWhen filing a chapter 7 bankruptcy, understanding how exemptions work is important. Debtors are allowed to keep exempt assets.  Debtors lose non-exempt assets in a chapter 7 bankruptcy, so it is important to know whether an asset is exempt from bankruptcy or it is not.    Bankruptcy ExemptionsThe bankruptcy code allows an individual debtor to exempt real, personal, or intangible property from being sold in bankruptcy.  Real property is another name for real estate.  Examples of personal property can be money, cars, clothing, jewelry or household furniture.  Intangible property can include the goodwill of a business.

Read More from: Fresno Bankruptcy Law Blog

1 week 4 days ago
Click here for a related article which was published in Law360.  In a little-noticed action and after years of being the nation’s most backward Uniform Commercial Code (UCC) state, New York finally adopted modern versions of UCC Articles 1, 7 and 9 in a bill signed by Governor Andrew M. Cuomo just before Christmas. See 2014 Sess. Law News of N.Y. Ch. 505 (A. 9933) (McKinney’s). New York’s failure to adopt the most current version of the UCC was both embarrassing and created a great risk of confusion because New York is the nation’s pre-eminent commercial law jurisdiction and its law is chosen as the governing law for many sophisticated commercial transactions.

Read More from: GT Restructuring Review

1 week 4 days ago
Filing for bankruptcy will stop the foreclosure proceeding, at least temporarily. The Automatic Stay, an order issued by the court, requires your creditors to stop actions against you immediately. This means that even if a foreclosure sale on your house is scheduled, it must be postponed while your bankruptcy is pending. This is usually good […]
1 week 4 days ago
In its long-awaited FAQs, ISS indicates that it will generally recommend in favor of management and shareholder proposals for proxy access which allow for nominations to be made by shareholders owning not more than 3% of the voting power for 3 years, with “minimal” or no limits on the number of shareholders permitted to form a nominating group, and allowing nominations for up to 25% of the board. ISS will also review the reasonableness of any other restrictions and may recommend against proposals that are more restrictive than these guidelines.
1 week 4 days ago

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