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Rapper 50 Cent, whose real name is Curtis James Jackson III, exited New York State Supreme Court in Manhattan on Tuesday after testifying in a lawsuit for a sex tape that was posted online.
Brendan McDermid/Reuters
Bankrupt rapper 50 Cent says he owns pieces of more than two dozen businesses, including an adult film production company, a clothing unit that might have a new deal and a boxing-promotion company that used to represent Floyd Mayweather. In a court document filed late Tuesday, lawyers for the 40-year-old rapper, whose real name is Curtis James Jackson III, listed 32 entities that he has a stake in, though his team didn’t assign a value to any of his holdings. Mr. Jackson estimated that his assets are worth between $10 million and $50 million in his bankruptcy petition, though he testified under oath on Tuesday that he is worth $4.4 million, according to the New York Daily News. Under bankruptcy-court rules, Mr. Jackson was supposed to file an itemized list of his assets and debts by July 27. His lawyers asked Judge Ann Nevins for another week to wade through Mr. Jackson’s complicated financial situation.

Read More from: WSJ.com: Bankruptcy Beat

6 days 15 hours ago
Accredited investors will soon be sharing equity crowdfunding platforms with a new crowd: the presumably less sophisticated but potentially massive crowd of non-accredited investors. That’s because Title IV of the Jumpstart Our Business Startups Act, implemented in June 2015, allows all investors to participate in the new Regulation A+offerings. Read more here.
6 days 15 hours ago
G Street Fabrics, an icon from downtown Washington, D.C.,’s department-store era that later fled to the suburbs, is planning to trim its store count using bankruptcy protection. The retailer, which filed for bankruptcy in June blaming slow sales of its fabrics, will keep open its flagship store in Rockville, Md.—its busiest location. But officials are preparing to close its two other locations in Centreville and Falls Church by Labor Day weekend. Both of the closing locations had expensive leases, costing $13,201.25 per month and $24,353.65 per month respectively, according to documents filed in U.S. Bankruptcy Court in Greenbelt, Md. The bankruptcy marks a snag in the history of a company that has had the “home-sewing market in the Washington region virtually sewn up for almost a half century,” according to a 1995 profile in the Washington Post. Sewing bloggers praise the retailer’s spacious store layouts, its table of $2.97 fabrics and its selection of pricier and rare fabrics. A Washington Post reporter, for example, wrote in 2005 about finds like a $100-per-yard brown Belgian mohair velvet and a feathered Valentino ivory Indian silk sold for $370 a yard.

Read More from: WSJ.com: Bankruptcy Beat

6 days 16 hours ago
With Title II of the JOBS Act in place and the ban on general solicitation repealed for investments from accredited investors, a new era in raising capital from “friends, family and fools” has emerged. For the first time in the nearly 80 years since the SEC rules were written, it is now legal to stand up in a room full of people, even complete strangers, and tell everybody about your company and how to invest. Read more here.
6 days 16 hours ago
Nobody enjoys the experience of making a payment Â-- so a growing number of companies are likely to follow Uber's lead and make transactions so easy they're practically invisible. That means banks will have to ramp up their efforts to become customers' default cards.

Read More from: BankThink

6 days 16 hours ago
Burtch v. Revchem Composites, Inc. (In re Sierra Concrete Design, Inc.), Adv. No. 10-52667 (CSS), 2015 WL 4381571 (Bankr. D. Del. July 16, 2015) After a trial on the merits, the Bankruptcy Court issued an Opinion and entered judgment for defendant Revchem Composites, Inc. (“Revchem”), finding that Revchem established that all of the transactions in question were made in the ordinary course of business, thereby protected from avoidance as a preference.   Read More › Tags: Avoidance Actions, Preferences

Read More from: Delaware Bankruptcy Insider

6 days 17 hours ago
Sixth Circuit Affirms Bankruptcy Court Order Allowing Amended Exemptions Following Re-Opening of Case In a Chapter 7 bankruptcy case, a debtor is required to file a schedule listing all of the debtor’s property. This includes cash, hard assets such as furniture and cars, as well as intangibles such as causes of action or potential causes of action. The Bankruptcy Code allows debtors to “exempt” certain types of property from the estate, enabling them to retain exempted assets post-bankruptcy. In a recent opinion, the U.S. Court of Appeals for the Sixth Circuit analyzed the limits of a bankruptcy court’s authority to disallow claimed exemptions.  Read More › Tags: 6th Circuit Court of Appeals, Chapter 13, Chapter 7

Read More from: Michigan Bankruptcy Blog

6 days 17 hours ago
My posts from 2014 on Till v SCS Credit Corp and Momentive Performance Materials have been consolidated and prettied up into appropriate form with the able assistance for a law journal by virtue of the yeomanlike diligence and assistance of Katie M. McDonough, an associate at my old firm, and The Fordham Journal ofCorporate and Financial Law has just published the resulting piece, which is entitled "Lost in Translation: Till v SCS Credit Corp and the Mistaken Transfer of a Consumer Bankruptcy Formula to Chapter 11 Reorganizations." and can be found at 20 Fordham J. Corp & Fin Law 893 (2015) on Westlaw and Lexis and eventually in other online databases like Heinonline and SSRD. In brief, the article criticizes bankruptcy judges and creditors' lawyers for failing to notice the significant statutory distinction between chapter 11 cramdown and chapter 13 cramdown, i.e., the presence of the judicially defined "fair and equitable" standard in chapter 11 vs. the absence of that standard in chapter 13. The article shows how the "fair and equitable" standard has been consistently interpreted by the Supreme Court to require creditors protected thereby to receive 100% recoveries in real economic terms, and how the Court has repeatedly recognized that market forces are the best measure of the "fair and equitable" standard.

Read More from: Necessary and Proper

6 days 17 hours ago
The wait is over; the decision is in. Homeowners in the 9th Circuit can strip off underwater mortgages in Chapter 13 cases even when they aren’t entitled to a bankruptcy discharge, the 9th Circuit BAP has held. Thus, courts have taken another step in the building consensus that the debtor doesn’t have to be eligible for a Chapter 13 discharge in order to use Chapter 13 to eliminate an entirely underwater mortgage. Lien strips in Chapter 20 Voluntary liens can be stripped off the debtor’s real estate only in a reorganization chapter of bankruptcy:  Chapter 11 or Chapter 13.  And since bankruptcy “reform” in 2005, you can’t get a discharge in a Chapter 13 case filed less than 4 years from a previous Chapter 7 case. You aren’t barred from filing a Chapter 13 right after a Chapter 7.  It’s just that any debts that survived the Chapter 7 don’t get discharged in the no-discharge Chapter 13. In bankruptcy slang, we call it a case of Chapter 20:  a Chapter 7 plus a Chapter 13.
6 days 18 hours ago
A growing number of regulators have indicated their support for raising the asset thresholds at which banks face new regulatory requirements. That's welcome news Â-- but time is of the essence in implementing any changes.

Read More from: BankThink

6 days 18 hours ago
“Looking back on her experience, Flowers emphasizes that it’s important to research your options and make a game plan before filing for bankruptcy. “You have to know that you’re not going to make those same mistakes again, because if you do, you’re going to wind up right back where you were,” she says.” click here for the full story from Yahoo Finance
6 days 19 hours ago
Wall Street Journal The Federal Reserve Board will soon be at full-strength for the first time since August 2013, thanks to the nomination of University of Michigan economics professor Kathryn Dominguez. Not so fast my friend, said Sen. Richard Shelby, chairman of the Senate Banking Committee. Shelby said he's in no hurry to schedule confirmation hearings for Dominguez and for the other nominee, ex-Bank of Hawaii CEO Allan Landon. "We're not going to rush to judgment...

Read More from: BankThink

6 days 19 hours ago
John Rogers:
Deciding on a Fact Specific Basis, the WDKY Bankruptcy Court Allows a Creditor’s “Barely” Late Filed Claim
Originally posted on Kentuckiana Bankruptcy Opinions: (Bankr. W.D. Ky. July 21, 2015) The bankruptcy court grants the creditor’s motion to file a late response to an objection to its proof of claim. The creditor’s attorney attempted to file the response on the deadline, but through error the objection was not filed. The next day, the court entered the order disallowing the claim at almost the same time the creditor successfully filed the response and a motion to allow the late filing. The bankruptcy court grants the motion. Opinion below. 2015-07-21 – in re thiel Author: Matt Lindblom View original
6 days 19 hours ago
C. Wonder, the apparel, accessory and home goods chain that shut down and filed for bankruptcy earlier this year, may get new life. Xcel Brands recently said it’s hoping to buy the brand that J. Christopher Burch, the ex-husband of fashion designer Tory Burch, launched after the couple’s split. C. Wonder sought chapter 11 protection in January after closing its stores. The filing capped off several years of overly ambitious expansion in which the retailer failed to turn a profit (and became a source of drama for the Burches). Mr. Burch purchased the company’s intellectual property during the chapter 11 proceeding in a $2.05 million deal that the bankruptcy court approved in March.

Read More from: WSJ.com: Bankruptcy Beat

6 days 19 hours ago
Construction of the Baha Mar resort on the beach on New Providence island, Bahamas, July 2014. BAHAMAR Published Credit: Baha Mar Published Credit: Baha Mar
Baha Mar
The Chinese contractor for a stalled $3.5 billion project in the Bahamas wants the developer tossed from bankruptcy in the U.S. 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.”) WSJ reports that Caesars Entertainment Corp. is fighting to avoid following its biggest unit into bankruptcy.

Read More from: WSJ.com: Bankruptcy Beat

6 days 20 hours ago
In re Walker, 526 B.R. 187 (E.D. La. 2015) – The bankruptcy court (1) denied a mortgage lender’s request to file a late amendment to a proof of claim that had been filed on its behalf by the debtor and (2) … Continue reading →
6 days 22 hours ago
MacKenzie v. Neidorf (IN RE NEIDORF; 9TH CIR. BAP) Chapter 7 debtor Carrie Margaret Neidorf (Debtor)scheduled her real property (Residence) as an asset of her estate. There was no equity in the property. Postpetition, the lender obtained an unopposed relief from stay order and foreclosed on the property. Years after the foreclosure, but while her bankruptcy case was still open, Debtor received a postpetition payment in the amount of $31,250 (Foreclosure Payment). The payment was made to Debtor pursuant to a national settlement between banking regulators and certain financial institutions, including Bank of America (B of A). Debtor disclosed her receipt of the Foreclosure Payment to Robert A. MacKenzie, the chapter 7 trustee (Trustee). Trustee then filed a Motion to Compel Debtor to Turnover Estate Property (Turnover Motion), asserting that the Foreclosure Payment was property of the estate under § 541(a)(7). The bankruptcy court denied his motion, and this appeal followed. For the reasons discussed below, we AFFIRM. The result is that, in the Ninth Circuit, the debtor is able to keep funds that become available after the bankruptcy is filed.  This is a great result for individuals.  My congratulations to Ms. Neidorf’s attorney Kenneth Neeley.
1 week 7 hours ago
Rolling back unnecessarily burdensome and costly regulations is the only way to ensure credit unionsÂ' survival. To that end, lawmakers should pass a bill that would give credit unions relief from annual privacy notice requirements and grant safe harbor qualified-mortgage status for certain loans held in their portfolios.

Read More from: BankThink

1 week 12 hours ago
This is the next 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 Section F of the Report regarding “Plan Voting and Confirmation Issues.” Subsection 5, the focus of this post, addresses Discharge of Claims Upon Confirmation. Overview of Section 1141 The focus of Subsection 5 is Section 1141 of the Bankruptcy Code which deals with the effect of confirmation. Specifically:
  • § 1141(a) provides that a confirmed plan is binding on the debtor and everyone with a claim or interest against the debtor.
  • § 1141(b) provides that, unless otherwise provided in the plan, a plan vests estate property back in the debtor.
  • § 1141(c) provides that, subject to the plan and (d)(2) and (d)(3), property “dealt with by the plan” is free of all claims and interests.
  • § 1141(d) provides that, subject to the limitations listed below, a plan discharges pre-confirmation debts and terminates interests not provided for in the plan.

Read More from: Plan Proponent

1 week 14 hours ago
By Ron Peterson and Landon RaifordJenner & Block, LLPChicago, IL   On July 7, the Seventh Circuit delivered two opinions involving trustee Ronald Peterson.   In one case, the Trustee's claim was dismissed under the doctrine of in pari delicto, while in the second, the trustee's malpractice claim against a law firm stated a plausible claim.   In both cases, the trustee for Lancelot Investors Fund, Ltd. had sued professionals for contributing to the debtor's demise.   (Click on the style of the case for a link to the decison).Peterson v. McGladrey LLP, No. 14-1986 (7th Cir.

Read More from: CLLA Bankruptcy Blog

1 week 14 hours ago

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