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Retailer USA Discounters Ltd., which has been accused of misleading U.S. service members, filed for chapter 11 bankruptcy protection to wind down, Daily Bankruptcy Review reports 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.”) As DBR reports via WSJ, Relativity Media LLC won permission to continue on a fast sale timeline for its movie and TV business. Puerto Rico’s sewer and water authority, Prasa, is delaying a $750 million bond sale until at least next week, WSJ reports. According to Bloomberg, American Apparel Inc. is looking for advisers to help it come up with a bankruptcy restructuring plan.

Read More from: WSJ.com: Bankruptcy Beat

1 day 20 hours ago
BB Syndication Services, Inc. v. First American Title Ins. Co., 785 F.3d 825 (7th Cir. 2015) – A construction lender sued a title insurance company seeking defense and indemnification in connection with claims in a developer’s bankruptcy.  The district court found … Continue reading →
1 day 22 hours ago
If you want your bank to be one of the best to work for, you can pick up a lot of pointers from those in our third annual ranking.

Read More from: BankThink

2 days 6 hours ago
Whether it's in your branches, through your customer service lines, in your communities, or through mainstream or social media, it's your employees Â-- many of them millennials Â-- who can make or break your reputation with customers and prospects.

Read More from: BankThink

2 days 6 hours ago
The Weil Bankruptcy Blog has been busy writing about all the hottest bankruptcy issues, while at the same time giving you some longer weekends with our Bankruptcy Beach Reading light reading.  In the spirit of the back to school season (which has started for many students around the country even if the New York region still adheres to the post-Labor Day model), for the rest of this week we will be stepping back and giving you the CliffsNotes/Spark Notes/Masterplots (choose your generation) version of our entries over the last eight weeks.  Given the state of the stock market, don’t you think now is the time to start cramming?  Will We Ever Get to Test Whether a Bitcoin Exchange Is an Eligible Debtor?
2 days 14 hours ago
Authored by Samantha Alves Orender of Rogers TowersSecurities claims subject to arbitration proceedings are subject to the same statute of limitations as any other judicial action. In holding that section 95.011, Florida Statutes, applies to arbitration proceedings, the Florida Supreme Court effectively cut the time investors have to file a claim by up to two-thirds. Using statutory interpretation, the Florida Supreme Court in Raymond James Fin. Servs., Inc. v. Phillips, 126 So. 3d 186 (Fla. 2013), concluded that the Florida Legislature intended to subject arbitration proceedings to Florida’s general statute of limitations set forth in chapter 95 of the Florida Statutes. The Court determined the applicability of section 95.011 to “civil actions” should be broadly defined to encompass all civil proceedings, which includes arbitration

Read More from: Florida Banking Law Blog

2 days 15 hours ago
Whenever any bankruptcy case is filed, the creditors are usually stopped from taking action to collect the debts that were owed at the time of the bankruptcy. This feature of bankruptcy is called the “automatic stay.” The automatic stay, if it applies, stops a foreclosure or repossession from going forward. However, no bankruptcy filing allows a debtor to keep property that is security for a loan without making payments on the loan. For example, debtors with home mortgages and car loans, cannot keep their homes and cars in Chapter 7 bankruptcy without making payments. As soon as the bankruptcy case is closed, the automatic stay terminates, and the creditor can proceed with foreclosure or repossession. Moreover, if the debtor is not current on payments, creditors may ask the court to terminate the automatic stay while the bankruptcy is still pending, and, in Chapter 7, creditors are usually able to terminate the automatic stay. In order to keep property that is security for a loan, a debtor often must enter into a “reaffirmation agreement” with the creditor who holds the lien on that property. Usually, a creditor will require that the debtor be current on the loan in order to “reaffirm” the debt.
2 days 15 hours ago
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On Monday, bond investors may have said we-told-you-so, but they also tacitly gave investors reason not to worry too much. The WSJ noted that corporate-bond markets had been showing signs of weakness ahead of the plunge in major stock indexes in recent days—similar to the warnings signs the credit markets flashed ahead of the stock market drops of 2000 and 2008. But the response in credit markets, particularly in the junk-bond markets, on Monday diverged wildly from the response among credit investors in 2008. Junk-bond investors were largely calm Monday, and trading volume was relatively low, according to several traders. On Monday, junk-bond prices dipped to 94.4 cents from 95.3 cents Friday, a drop of less than 1%, according to Barclays data. Yet the Dow closed down 3.6%, at 15871.35, and the S&P 500 dropped 77.68 points, or 3.9%, to 1893.21. The closing prices of the stock markets, while down sharply, masked the extreme intraday swings in the indexes. That contrasted with the relatively quiet day of trading in the bond markets Monday.

Read More from: WSJ.com: Bankruptcy Beat

2 days 15 hours ago
Marketplace lenders and other alternative finance companiesshould be perceived not as a threat, but rather as a group of pioneers opening up opportunities for those banks that elect to buy, build or partner in this market.

Read More from: BankThink

2 days 16 hours ago
Here at Shenwick & Associates, many of our bankruptcy clients (especially younger ones) have outstanding student loans. Although the Bankruptcy Code doesn't contain an express prohibition against discharging student loans in bankruptcy, the bar to doing so is very high. Most (but not all, as we'll discuss below) appellate courts, follow the standard laid out in Brunner v. New York State Higher Education Services Corp. The debtor must show that: (1) he or she cannot maintain, based on current income and expenses, a minimal standard of living for the debtor and dependents if forced to pay off the student loan; (2) that additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loan; and (3) that he or she has made good faith efforts to repay the loans. Unfortunately for debtors in New York, Connecticut and Vermont (whose federal courts are under the jurisdiction of the Second Circuit Court of Appeals), the Brunner test remains good law and will do so until either the Second Circuit or the Supreme Court overrules Brunner or Congress amends the Bankruptcy Code.

Read More from: Shenwick & Associates

2 days 17 hours ago
Many community banks seem to have forgotten that they are most valuable for their ability to identify customers' pain and put an end to it. But fierce competition from fintech startups like Lending Club and Kabbage offers a reminder that they cannot afford to disregard this reality.

Read More from: BankThink

2 days 17 hours ago
Receiving Wide Coverage ... Dodd-Frank's Good and Bad Sides: Monday's stock market meltdown offered up a case study in how Dodd-Frank has helped banks and how it's hurt banks. The market madness also cast serious doubt on the Fed's plans to raise interest rates next month. On the positive side for Dodd-Frank, banks have been forced to build up their defenses because of the law and they should be much better equipped to weather the storm of...

Read More from: BankThink

2 days 19 hours ago
An affiliate of Elliott Management wants to delay Relativity Media LLC ‘s sale hearing, Daily Bankruptcy Review reports 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.”) Great Atlantic & Pacific Tea Co. won approval to sell the assets at 12 in-store pharmacies to Rite Aid Corp., DBR reports via WSJ. As DBR reports via WSJ, some state and federal agencies are balking at liability releases in for-profit educator Corinthian Colleges Inc.’s liquidation plan. DBR reports via WSJ on Caesars’ deal with senior lenders on a balance-sheet restructuring.

Read More from: WSJ.com: Bankruptcy Beat

2 days 20 hours ago
Dealing with subject access requests (“SAR”s) under the Data Protection Act 1998 is becoming a regular occurrence for many organisations, particularly banks and their advisors.  Processing such requests can take up significant manpower and the costs can be substantial.  Whilst designed to allow individuals to access personal data, determine its source, why it is held and who it is shared with, in reality SARs are frequently being used as a fishing exercise for prospective litigation and complaints against institutions such as banks.  The recent case of Dawson-Damer v Taylor Wessing LLP [2015] EWHC 2366 considered the proper use of SARs and the scope of the investigation required by the Act. SARs The provisions of the Data Protection Act 1998 which enable individuals to access data held about them were introduced to enable individuals to check what information was held about them by others and whether it was being processed unlawfully or in a way that affected their right to privacy.

Read More from: eSQUIRE Global Crossings

2 days 23 hours ago
Today’s Delavan real estate buyers are savvier than ever. This is mainly because Millennials are now of home buying age and they are the most internet friendly generation that home buyers have ever encountered. Millennials have grown up with access to infinite information at their fingertips via the internet. They search and review everything online before taking the next steps in the purchasing decision process. They love videos, photographs, and social sharing. Zillow has stated that Millennials will overtake baby boomers as the generation purchasing the largest number of homes this year. This makes their preferences more important than ever. How can you market your home to Generation Y? Below you will find 4 tips to assist you with selling your home to Millennials.   4 Tips to Sell Your Home in 2015 from our Delavan Real Estate Lawyer

Read More from: Wynn at Law, LLC

3 days 3 hours ago
Since the time of my last post, Alan D. Halperin, the Trustee of the FBI Wind Down, Inc. Liquidating Trust has filed 93 more preference complaints.  Because the Debtor filed for bankruptcy on September 9, 2013, the Trustee has only two more weeks to file any additional preference complaints. While we cannot be certain that these are the final preference complaints that will be filed in this case, the clock is ticking. Prior posts about FBI: Furniture Brands Files for Bankruptcy in Delaware Seeking to Sell Assets Furniture Brands International – Preference Litigation has Begun Furniture Brands International – Preference Litigation Update
3 days 7 hours ago
When you’re getting ready to file for bankruptcy, whether you’re an individual or a small business owner, you have enough to worry about without your bank getting in on the act and taking your money. You come to an agreement with your lenders and expect that agreement to be honored. As part of your bankruptcy agreement, you may endeavor to negotiate allocation of some of your savings for your lifestyle essentials, such as clothing, food and medical care. More and more customers of Wells Fargo are finding out that this is not always the case and are having to battle unjust asset seizures pursuant to the institution’s bankruptcy program. The country’s fourth-largest bank recently lost a potentially significant decision in bankruptcy court when they seized the assets of a small business owner and his wife that they had set aside to keep their heads above water. As part of their bankruptcy agreement, the couple was able to keep about $7.000, which Wells Fargo seized shortly thereafter claiming they were required by the bankruptcy code to preserve estate funds and follow the trustee’s directions regarding the money. Following the decision, the judge proceeded to characterize Wells Fargo’s bankruptcy program as “inconsistent.”
3 days 14 hours ago
Greek bank bonds suffered heavy losses this week after Eurozone finance ministers agreed that senior bondholders would be bailed-in when Greece’s banks are restructured later this year. In our latest post from Kate Stephenson, Alex Wood and Andrew Wilkinson, we cover:
  • moves to restore the financial stability of Greek banks by bailing in senior bondholders (and sparing depositors);
  • a quick recap on the European Bank Recovery and Resolution Directive, which is being implemented into Greek law;
  • the new stress tests / asset quality reviews, which will form the basis of resolution measures;
  • areas of uncertainty regarding the potential resolution measures; and
  • some crumbs of comfort for stakeholders.
This post is particularly relevant for bondholders and shareholders of Greek banks. It is also relevant for stakeholders in other European credit institutions, as Greece will provide a test case for new EU rules on resolving failing banks. Click here to read the full article.
3 days 14 hours ago
Families that use state-issued EBT cards often face ATM fees that eat away at their already-meager incomes. Banks should waive those fees in order to ensure that all public assistance dollars go toward household needs.

Read More from: BankThink

3 days 16 hours ago
On August 4, 2015, the Second Circuit weighed in for the first time on the circumstances in which the confirmation of a Chapter 11 plan could strip a secured creditor of its lien. In City of Concord, N.H. v. Northern New England Telephone Operations LLC (In re Northern New England Telephone Operations, LLC), the Second Circuit held that, although the general rule is that liens and security interests pass through bankruptcy unaffected, section 1141(c) of the Bankruptcy Code provides an exception where four factors are met: (1) the text of the plan does not preserve the lien; (2) the plan is confirmed; (3) the property subject to the lien is “dealt with” by the terms of the plan; and (4) the lienholder participated in the bankruptcy proceedings. The fourth factor requiring lienholder participation is not expressly mentioned in section 1141(c), but the Court concluded, relying on principles of equity, that the requirement “falls squarely within” section 1141(c) anyway. Lienholder participation is necessary if property can said to be fairly “dealt with” by a plan. Furthermore, it is the flip side of the coin with respect to section 506(d)’s preservation of certain liens where a lienholder does not participate in the bankruptcy.

Read More from: eSQUIRE Global Crossings

3 days 16 hours ago

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