ABI Blog Exchange

Lehman Brothers on Wednesday said former top trader Jonathan Hoffman is seeking “double recovery” on his bonus from 2008, in day one of a trial over whether Lehman owes Mr. Hoffman and three other employees millions in back bonuses. 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 bankruptcy judge Wednesday put the brakes on Optim Energy LLC ’s plan to exit bankruptcy through the sale of its two Texas power plants after a unit of private equity company Blackstone Group LP objected to the deal, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

1 day 23 hours ago
Lehman Brothers on Wednesday said former top trader Jonathan Hoffman is seeking “double recovery” on his bonus from 2008, in day one of a trial over whether Lehman owes Mr. Hoffman and three other employees millions in back bonuses. 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 bankruptcy judge Wednesday put the brakes on Optim Energy LLC ’s plan to exit bankruptcy through the sale of its two Texas power plants after a unit of private equity company Blackstone Group LP objected to the deal, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

1 day 23 hours ago
Receiving Wide Coverage ... Deutsche Nears Libor Deal: Deutsche Bank is expected to announce a $2.15 billion settlement with U.S. and British regulators over Libor rate-rigging charges, according to the papers. That would be the highest fine faced by any bank in relation to the Libor scandal so far. What makes Deutsche so special? New York's Department of Financial Services is involved in the deal, driving up the penalty, according to the Financial Times. The Wall...

Read More from: BankThink

2 days 26 min ago
Authored by Jon Sacks, Heather S. Nason and Scott St. Amand, Jon Sacks, Heather S. Nason and Scott St. Amandand Jon Sacks, Heather S. Nason and Scott St. Amand of Rogers TowersAs the old saying goes, there are two certainties in life: death and taxes.  For commercial real estate owners and developers, the latter is an inevitability that may be mitigated.  Each August, Florida property tax appraisers send out TRIM notices, or Notice of Proposed Property Taxes, advising all taxpayers of the proposed assessment on their properties.  These TRIM notices are critically important for a number of reasons: foremost being that the mailing of the notices opens a very short window in which a tax appeal may be filed. The assessed value of a piece of real estate roughly approximates what the county property appraiser considers market value.  Often this assessment is higher than what the local market may support, or the property may have been affected by a diminution of value through declining market conditions or other factors.

Read More from: Florida Banking Law Blog

2 days 59 min ago
It’s happening across the country. It could happen to you. Innocent Walworth County residents are receiving phone calls from someone trying to collect on a debt or loan, but the loan doesn’t exist or the amount owed is incorrect. Sometimes the voice on the other end threatens to send you to jail for failure to pay. This frightening scenario is being experienced by Walworth County consumers more and more. It’s called fraudulent collections or fake collections, and sometimes referred to as “phantom debt collection”. Fraudulent collections are making headlines once again. The Consumer Financial Protection Bureau has filed a lawsuit against more than a dozen debt collectors, payment processors, and related entities for failure to stop fraudulent collection tactics. The complaint accuses many debt collectors located in Georgia and New York of harassing consumers about “phantom” debts. Consumers were harassed, threatened, and deceived in order to collect on debt that was not even owed.   How Can A Walworth County Resident Recognize a Fake Debt Collector? In today’s day and age, we are all always on alert for scam artists, online and offline. As consumers victimized in the aforementioned lawsuit paid millions of dollars on debts that were fake, the fraudulent debt collectors do a really good job of convincing people. How else could they fool so many people?

Read More from: Wynn at Law, LLC

2 days 20 hours ago
Prior to the enactment of the Bankruptcy Code in 1978, the Fifth Circuit took a stringent approach to the payment of attorney’s fees – holding that public policy supported restricting attorney compensation in bankruptcy cases and that attorneys should not expect to receive the same compensation as if working for a non-bankrupt concern.  Congress enacted section 330 of the Bankruptcy Code to address this policy and to allow bankruptcy attorneys to receive reasonable compensation comparable to compensation allowed in non-bankruptcy cases.  Congress, however, did not initially provide guidance on what constituted reasonable compensation, and courts developed the actual, or material, benefit standard under which compensation was awarded if the services provided actually resulted in an identifiable benefit to the bankruptcy estate.  Congress stepped in, again, in 1994, amending section 330 to foreclose the actual benefit test.  Following the 1994 amendments to section 330, the Second, Third and Ninth Circuits all dropped the actual benefit standard.  On the other hand, in the 1998 In re Pro-Snax decision, the Fifth Circuit adopted the actual benefit standard and, since that decision, applications for compensation under section 330 of the Bankruptcy Code in the Fifth Circuit have been evaluated retrospectively under the “hindsight” or “material benefit” standard.
2 days 20 hours ago
Assets Discovered Every once in a while if you file enough chapter 7 bankruptcy cases, you are going to come across a case where there is an asset available for administration. It may be a higher than expected tax refund in which the trustee can make a claim. It may be an inheritance which was+ Read More The post Negotiating With The Bankruptcy Trustee: Be Reasonable appeared first on David M. Siegel.
2 days 20 hours ago
With good planning, advisory boards can increase a bank's visibility, credibility and sales.

Read More from: BankThink

2 days 21 hours ago
This is the next post in Plan Proponent’s series on the confirmation-related recommendations in the ABI Commission Report (and, in particular, its Exiting the Case piece). In this post, we’ll cover the Commission’s recommendations regarding “Default Plan Treatment Provisions” in Section E.1 of the Report. The Commission addresses 2 common plan provisions: (i) those that provide that the failure of a class to vote on a plan  is a deemed acceptance and (ii) those that provide for the deemed assumption/rejection of executory contracts that are not otherwise expressly assumed/rejected before confirmation. On the one hand, those provisions provide certainty where there might otherwise be uncertainty. On the other hand, it is not clear whether they’re permissible and/or or might have undesired consequences. Deemed Plan Acceptance Provisions

Read More from: Plan Proponent

2 days 21 hours ago
If you have ever applied for an online payday loan you may be targeted as a victim in a malicious phone and email scam. The scammers will either call you on the phone or email you pretending to be from a law firm or “investigative unit”.  They will tell you that you owe an outstanding payday loan and they need payment immediately or else they will turn the matter over to local law enforcement to press criminal charges against you.  The scammers are betting that you have more than one payday loan and that you don’t remember the names of the companies you legitimately owe.  Don’t be fooled!  Here are some tips to identify the scam and what to do to protect yourself. THE CALL/EMAIL MIGHT BE A SCAM IF: 1.  They claim to be representing a creditor you don’t recognize or a law firm you don’t recognize.  Don’t assume that they are telling the truth when they say they are calling from a law firm.  Try Googling the lawfirm to see if it even exists. 2.  They demand payment over the phone immediately and refuse to send you a bill in the mail.  No legitimate creditor will demand payment over the phone.
2 days 22 hours ago
Back in the mid-to-late ‘80s, when Dennis Miller had a massive mullet (and his stand-up performances were much more likely to be attended by you and your friends than your distant aunt and uncle who worked on the ’72 Nixon campaign), his “Weekend Update” features on Saturday Night Live were often enriched by little segments featuring writer and comedian A. Whitney Brown, who, with just the right amounts of sarcasm, compassion, wit, and insight, would give us “The Big Picture.” Read more here.
2 days 22 hours ago
Thomas Hoey Jr., the owner of Long Island Banana Corp., is facing a federal criminal indictment on charges that he looted employee pensions.
Patrick Kovarik/Agence France-Presse/Getty Images
Thomas Hoey Jr., the owner of a bankrupt Long Island, N.Y., produce distributor, is facing a federal criminal indictment on charges that he looted his employees’ pension plan. The charges come on top of another criminal case related to drugs and the death of a sexual partner, for which Mr. Hoey is scheduled to be sentenced this week. The U.S. Attorney for the Southern District of New York alleged last week in court papers that Mr. Hoey drained an employee profit-sharing plan set up in 2003 of $838,000 by the end of 2012.Mr. Hoey allegedly transferred the money to the company’s corporate bank account to pay wholesalers and his personal credit-card bill, according to the complaint. Charges on the credit-card bill included family vacations and payments to the university that Mr. Hoey’s son was attending. The indictment alleges that Mr. Hoey “unlawfully, willfully, and knowingly, did embezzle, steal, abstract, and convert to his own use, and to the use of another, moneys, funds, securities, premiums, credits, property, and other assets of an ‘employee welfare benefit plan or employee pension benefit plan.’”

Read More from: WSJ.com: Bankruptcy Beat

2 days 23 hours ago
Thomas Hoey Jr., the owner of Long Island Banana Corp., is facing a federal criminal indictment on charges that he looted employee pensions.
Patrick Kovarik/Agence France-Presse/Getty Images
Thomas Hoey Jr., the owner of a bankrupt Long Island, N.Y., produce distributor, is facing a federal criminal indictment on charges that he looted his employees’ pension plan. The charges come on top of another criminal case related to drugs and the death of a sexual partner, for which Mr. Hoey is scheduled to be sentenced this week. The U.S. Attorney for the Southern District of New York alleged last week in court papers that Mr. Hoey drained an employee profit-sharing plan set up in 2003 of $838,000 by the end of 2012.Mr. Hoey allegedly transferred the money to the company’s corporate bank account to pay wholesalers and his personal credit-card bill, according to the complaint. Charges on the credit-card bill included family vacations and payments to the university that Mr. Hoey’s son was attending. The indictment alleges that Mr. Hoey “unlawfully, willfully, and knowingly, did embezzle, steal, abstract, and convert to his own use, and to the use of another, moneys, funds, securities, premiums, credits, property, and other assets of an ‘employee welfare benefit plan or employee pension benefit plan.’”

Read More from: WSJ.com: Bankruptcy Beat

2 days 23 hours ago
On Earth Day today, we think about ways to conserve energy and protect our environment. We take steps to be less wasteful by remembering to recycle and change our habits to use less energy, including turning off lights and driving less. Earth Day can also be a good time to take efforts to simplify our finances and bills. It can be an important time to reflect on our financial situation and see if there are things we can do to focus on the debt that we need to pay, such as our day to day living expenses, and eliminate bills that drag us down. Today can be the day that you reach out to an attorney to discuss your finances and see if there are ways they can help. Most law offices that help in these areas offer a free, no obligation appointment to sit down with you and see if there are ways the legal system can give you relief from the stress of debt such as credit cards and medical bills, and allow you to focus on the debt that you need to pay. Just like conserving energy is important, conserving the precious resource of your income is important. Make sure that you are not paying on debt that you could get help with eliminating. Reach out for that help !
2 days 23 hours ago
Former Federal Reserve chair Paul Volcker is far from the first watchdog to suggest the U.S. regulatory system is badly in need of a common-sense makeover. Yet a confusing and ineffective structure remains the status quo.

Read More from: BankThink

2 days 23 hours ago
Companies with proxy access shareholder proposals on their annual meeting ballots are confronting a notice of exempt solicitation filed by the California Public Employees Retirement System (CalPERS) and the New York City Pension Funds urging shareholders to vote in favor of the proposals.
2 days 23 hours ago
The successor to Anglo Irish Bank Corp. is asking for a bankruptcy court-supervised auction of Boston’s Mandarin Hotel along with retail property that connects the Mandarin to the Prudential Center on Boston’s Back Bay, close by the Boston Marathon finish line.. Read 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 heated copyright battle between broadcasters and TV-streaming service Aereo Inc. that made its way to the U.S. Supreme Court has finally come to an end in bankruptcy court, clearing the way for the now-defunct company to finish repaying other creditors, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

3 days 9 min ago
The successor to Anglo Irish Bank Corp. is asking for a bankruptcy court-supervised auction of Boston’s Mandarin Hotel along with retail property that connects the Mandarin to the Prudential Center on Boston’s Back Bay, close by the Boston Marathon finish line.. Read 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 heated copyright battle between broadcasters and TV-streaming service Aereo Inc. that made its way to the U.S. Supreme Court has finally come to an end in bankruptcy court, clearing the way for the now-defunct company to finish repaying other creditors, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

3 days 9 min ago
Receiving Wide Coverage ... The Flash Unmasked? Are the world's financial markets so vulnerable that they can be brought down by some guy in the suburbs? That unsettling question is bound to reverberate throughout the industry in the wake of news that U.S. authorities are charging a London trader with triggering the May 2010 "flash crash" that temporarily sent stocks plummeting. Authorities say Navinder Singh Sarao frequently manipulated futures contracts prices by submitting and then canceling...

Read More from: BankThink

3 days 32 min ago
Walro v. The Lee Group Holding Co., LLC (In re Lee), 524 B.R. 798 (Bankr. S.D. Ind. 2014) – A chapter 7 trustee sought a court determination that (1) a debtor’s voting rights in a limited liability company (LLC) were property of … Continue reading →
3 days 3 hours ago

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