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JCRCoverTMA’s Journal for Corporate Renewal July/August 2016 published an article written by Nava Hazan, Mark Salzberg and Susan Kelly, which discusses how the US Bankruptcy Courts have been open to foreign debtors, as well as the limits to such availability, which was the subject of the recent Baha Mar decision in Delaware.

The article further describes how it is increasingly common for foreign companies to use the English scheme of arrangement in cross-border restructuring matters. Several recent cases show the English judiciary, much like its counterpart in the US, has welcomed this type of cross-border restructuring, even where the nexus of the foreign debtor to the UK is minimal.

Read More from: eSQUIRE Global Crossings

2 days 23 hours ago

Chicago — Photo by Grant Swanson

By: Donald L. Swanson

One reason given by the Chicago Bankruptcy Court for the recent revocation of its Local Mediation Rules is this:

–Several Judges in the Chicago Bankruptcy Court have agreed to mediate cases for their colleagues on that Court.

The pickle is this:

–such intra-court mediator appointments create a conflict of interest.

This conflict issue comes into focus for me, one day, when I hear a bankruptcy judge (not from Chicago) describing an “uncomfortable” situation as mediator. The uncomfortable situation is this:

–This judge received the mediation appointment from a judge who serves in the same court.

–One mediating party speaks negatively about the “quality of justice” in the court where both judges serve.

–Because of that comment, “I have to excuse myself” for a moment, the mediator/judge explains, because of being “tempted” to make an “imprudent” retort.

Read More from: Mediatbankry

2 days 23 hours ago

Confusion among bankers on what real-time ACH payments are and how the transactions are processed is a major barrier to adoption in the U.S. Here's what banks need to know.

Read More from: BankThink

3 days 17 hours ago

Pursuant to a provision of the Bankruptcy Code familiar to readers of Weil’s Bankruptcy Blog (see our prior post, To Assume or Not to Assume, that Is the Question: What Act Constitutes “Assumption” Under Section 365(d)(4) of the Bankruptcy Code?), the United States District Court for the District of Delaware recently affirmed a bankruptcy court’s decision deeming an unexpired lease of nonresidential real property automatically terminated when it was not timely assumed and directing the immediate surrender of possession of the leased premises.  In In re Scarborough-St. James Corporation, the district court found that there was no need to determine whether a debtor’s timely and unequivocal statement to a landlord of its intent to assume an unexpired lease of nonresidential real property would satisfy section 365(d)(4) of the Bankruptcy Code because the debtor failed to satisfy such standard. 

Relevant Statutory Provisions

3 days 17 hours ago

On August 1, 2016, the newly amended Local Rules of Civil Practice and Procedure of the United States District Court for the District of Delaware will go into effect.  Of particular importance to bankruptcy practitioners, the Delaware District Court has made it clear through the local rule amendments that bankruptcy appeals are not subject to Local Rules 7.1.2 (setting forth, among other things, the timetable for motion practice), 7.1.3 (prescribing the form and contents of briefing and appendices filed with the Delaware District Court), 7.1.4 (governing oral argument), and 7.1.5 (governing reargument requests). Read More ›

Read More from: Delaware Bankruptcy Insider

3 days 18 hours ago

Establishing a set of standards of practice for chief risk officers and others would help benchmark the quality control for managing risk in the financial services industry.

Read More from: BankThink

3 days 20 hours ago

The infamous Melania Trump speech at the Republican convention shared more than a paragraph or so with Michelle Obama.

It shared Michelle’s  aspirational thought that in America, any child with hard work and perseverance can succeed.

“The only limit to your achievements is the strength of your dreams and your willingness to work hard for them.”

For those who are exceptional, driven, and lucky, it’s true.

But what about those with significant, or even average, talents who don’t have luck or all consuming drive?  Our self satisfaction over the dramatic rags-to-riches story masks the loss to our communities of the less exceptional.

What about those youngsters whose unaddressed health issues, rotten schools, segregated neighborhoods, and grinding poverty simply smother the talent within?  Why is their loss acceptable to us?

3 days 20 hours ago

Receiving Wide Coverage ... Catching fire: For a Depression-era law, the Glass-Stegall Act has certainly gone prime time in 2016. Observers spent much of Tuesday scratching their heads over the GOP's decision to include in its party platform bringing back the provision. The law, which separated commercial and investment banking activities, was repealed under President Bill Clinton. The New York Times calls the proposal, which has also been backed by many on the left, "almost aÂ...

Read More from: BankThink

3 days 20 hours ago

Allied FlagsThe English Court has recently considered who can be  recognised as  “foreign representatives” under the Cross-Border Insolvency Regulations 2006 (CBIR) in the case of Re 19 Entertainment Limited, about a US company in Chapter 11. The Re 19 Entertainment judgment appears to be the first English case where directors of a company in Chapter 11 proceedings were recognised as “foreign representatives.”

Under the CBIR, an English court can give effect, in its jurisdiction, to a foreign law/court order or the legal status of a foreign representative. If a person is deemed a “foreign representative,” they are entitled to commence and participate in proceedings under the insolvency laws of the enacting state.  This means the proceedings will be supervised and controlled by the foreign court.

Read More from: eSQUIRE Global Crossings

3 days 20 hours ago

In re Tosi, 546 B.R. 487 (Bankr. D. Mass 2016) – A mortgagee objected to a proposed chapter 13 plan which provided that the debtor’s title to the mortgaged property would automatically vest in the mortgagee if the debtor and … Continue reading

3 days 23 hours ago

The bankruptcy proceedings involving online media purveyor Gawker Media took an interesting turn recently when one of the company’s creditors objected that the Chapter 11 bankruptcy was being improperly used as a shield from personal liability by the Gawker CEO.

The creditor who raised the objection is none other than Hulk Hogan, the former professional wrestler who was awarded a massive judgment against Gawker Media earlier this year. In fact, it was Hogan’s $140 million civil judgment that prompted Gawker to file for Chapter 11 bankruptcy in the first place.

Hulk Hogan’s Lawsuit against Gawker

Hulk Hogan’s high-profile lawsuit against Gawker stemmed from an article that the company published on its main website, That article included a portion of a video that showed explicit images of Hogan having sex. The publication and online dissemination of the Hulk Hogan sex tape caused severe damage to Hogan’s personal reputation and led the ex-wrestler to file a civil suit against Gawker Media and Gawker CEO Nick Denton. A jury ultimately found in Hogan’s favor and ordered Gawker Media and Denton to pay a combined $140 million in damages. (Denton is personally liable for at least part of the $115 million in compensatory damages awarded by the jury.)

4 days 12 hours ago

As banks pull out of developing countries, we must seek a healthier balance between preventing money laundering and maintaining banking systems of entire regions.

Read More from: BankThink

4 days 13 hours ago

In the latest decision to emanate from the Madoff bankruptcy, the United States District Court for the Southern District of New York denied the appeal of a protective order that relieved Irving Picard—the court-appointed trustee—from answering discovery requests regarding his compensation arrangement with his law firm. 

4 days 15 hours ago

Where do marketplace lenders and secondary loan market participants find themselves on the issue of preemption of state usury laws after the June 27 denial of the petition for a writ of certiorari in Madden v. Midland by the U.S. Supreme Court?

In Madden v. Midland, the US Court of Appeals for the Second Circuit refused to follow the “valid-when-made” rule when considering the scope of federal preemption of state usury laws under the National Bank Act.  The court held that the NBA did not bar the application of state usury laws to a national bank’s assignee.  In considering the applicability of the National Bank Act to a loan in the hands of a non-bank assignee, the Second Circuit considered a number of cases upholding preemption of state usury laws under the National Bank Act but invoked a seemingly new rule for applying section 85 of the National Bank Act (permitting a national bank to charge interest at the rate permitted by its home state).  The Second Circuit concluded that preemption is only applicable where the application of state law to the action in question would significantly interfere with a national bank’s ability to exercise its power under the National Bank Act.  The court reasoned further that where a national bank retained a “substantial interest” in the loan, the application of the state usury law would conflict with the bank’s power authorized by the National Bank Act.

4 days 16 hours ago

Empty office showing business failure

The Court of Appeal has recently considered the status of contingent assets within the balance sheet test for insolvency in the context of a company’s inability to pay its debts. Under Section 123 Insolvency Act 1986, a company is deemed unable to pay its debts if its assets are less than its liabilities including contingent liabilities but nothing is said about the status of contingent assets.

In the case of Evans v Jones, the liquidator of Rococo Developments Limited (“Rococo”) was seeking to recover directors’ loans repayments of circa £450,000.   The directors defended the action by stating that at the time the payments were made the value of Rococo’s assets was greater than the amount of its liabilities taking into account its contingent assets and as it was solvent, the preference action should fail.

Read More from: eSQUIRE Global Crossings

4 days 18 hours ago

Over the past two years, regulators have issued several proposals as part of efforts to make capital rules simpler, but the initiative should be more streamlined and allow more public input.

Read More from: BankThink

4 days 18 hours ago

When an adversary proceeding is transferred to the district court pursuant to a withdrawal of the reference, which rules—and deadlines—apply: those contained within the Federal Rules of Civil Procedure, or those contained within the Federal Rules of Bankruptcy Procedure? The Eleventh Circuit recently held the Federal Rules of Bankruptcy Procedure, not the Federal Rules of Civil Procedure, govern adversary proceedings before the district courts. Rosenberg v. DVI Receivables XIV, LLC, 2016 WL 1392642 (11th Cir. 2016). In so holding, the Eleventh Circuit agreed with the conclusions of two of its sister circuits, In re Celotex Corp., 124 F.3d 619 (4th Cir. 1997) and Diamond Mortgage Corp. v. Sugar, 913 F.2d 1233 (7th Cir. 1990).

Read More from: Creditors' Rights

4 days 19 hours ago

attorney james ezzellIn today’s blog post, I thought I’d give a quick rundown on a few of the services the Social Security Administration (SSA) provides individuals and the numbers associated with them.

The SSA has several programs set up for persons with different needs, these include Old-Age, Survivors and Disability insurance benefits, or more formally Retirement, Survivors, and Disability Insurance benefits (RSDI or OASDI).  I will cover all of these areas here.

Retirement Insurance

Old-Age insurance benefits are exactly what they sound like – a retirement program that provides for a monthly monetary stipend for individuals who meet qualifications based on age and a particular quarter system, an example of which I briefly touched on in my April 4, 2016 blog post, among other items.  Currently, there are about 41 million people drawing these benefits.

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

4 days 20 hours ago

Receiving Wide Coverage ...

Strange bedfellows: Somehow, this year's presidential race just got even more baffling. Republicans have included a provision to bring back the Glass-Steagall Act in their platform, putting the party in line with those on the left, including Sens. Elizabeth Warren and Bernie Sanders. Donald Trump campaign aide Paul Manafort highlighted the issue during a press conference on Monday, noting that Hillary Clinton's husband, former President Bill Clinton, oversaw the repeal of the...

Read More from: BankThink

4 days 20 hours ago

Ready to perform!

By Donald L. Swanson

You are out there: professionals who’ve had mediation training and are set-to-go as mediators of bankruptcy disputes but, alas, are still looking for cases to mediate.

I’d like to introduce you to some attorneys who can’t afford a mediator for their smaller-amount cases: they are reading this article.

Attorneys with smaller-amount cases, say “Hi” to mediators looking for cases to mediate: they are reading this article, too.

First of all, let’s acknowledge reality: every trained mediator trying to develop a mediation practice has the same start-up problem. No one is immune. Every now-successful mediator started out with one case . . . then another . . . then another . . . etc. . . . and often with long droughts in between.

Similarly, there are attorneys out there with smaller-amount cases who would like to mediate their dispute but figure the case economics won’t allow it.  So . . . they don’t even consider the mediation possibility.

Read More from: Mediatbankry

5 days 12 min ago