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On July 29, 2015, Deb Shops SDFMC LLC, in its capacity as debtor in possession, filed 92 preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, and to disallow claims of the defendants pursuant to Section 502(d). By way of background, Deb Shops SDFMC LLC (“Deb Shops” or the “Debtors”) filed voluntary petitions for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on December 4, 2014 under Chapter 11 of the Bankruptcy Code.  By order dated December 5, 2014, the Debtors’ Chapter 11 cases were consolidated for procedural purposes only and therefore are being jointly administered pursuant to Bankruptcy Rule 1015(b). The Rosner Law Group and ASK LLP represent the Debtors in these various preference cases.  The pretrial conference has not been scheduled.  These adversary actions, as well as the Debtors’ bankruptcy proceeding, are before the Honorable Kevin Gross. For preference defendants looking for an analysis of defenses that can be asserted in response to a preference complaint, below are several articles on this topic: Preference Payments: Brief Analysis of Preference Actions and Common Defenses
9 hours 7 min ago
As Jason Kilborn has graciously described, Credit Slips is the blogging base of the authors of the Law of Debtors and Creditors, 7th edition, (Aspen/Wolters Kluwer 2015). We have revised the Teacher's Manual this summer and encourage all adopters or potential adopters to download the new version, available at the book's Companion Website. If we you need the professor password, email your Aspen rep or one of us.  The unfun change was discovering a few typos (blush!) in the textbook itself. We created an errata. Distributing that to your students on the first day of class will help everyone. The fun work was updating the Teacher's Manual to reflect our own experiences in the classroom and your feedback. We hope that we've given improved guidance for certain problems and we updated the discussion to reflect several changes in law.

Read More from: Credit Slips

15 hours 32 min ago
Bank of America puts an HR exec in charge of stress testing, a look at how Yellen compares to Bernanke at the 18-month mark as Fed chair, Sen. Collins tries to help small banks and Cullen/Frost shuffles some key executives.

Read More from: BankThink

16 hours 19 min ago
One of the most difficult hurdles Elkhorn bankruptcy clients face is paying bankruptcy attorney fees when they are already broke. However, the last thing an Elkhorn bankruptcy client should do is hire the cheapest bankruptcy attorney they can find. There are many low cost bankruptcy attorneys who advertise their cheap prices to unsuspecting clients, just like you. You must use extreme caution. The old saying, “You get what you pay for” holds true for bankruptcy attorney fees, too.   Hiring a Cheap Elkhorn Bankruptcy Attorney Can Be a Huge Mistake When you research bankruptcy attorney fees, you may find a huge spread in the price ranges. This is due to the quality of work that will be dedicated to your case. This could be disastrous for you. Hiring an Elkhorn bankruptcy attorney who is not skilled, experienced, or knowledgeable in bankruptcy law, could potentially end with your bankruptcy case being thrown out. Once that happens, it is over. You get one shot. You don’t want to blow it. While not all inexpensive bankruptcy attorneys are ignorant of bankruptcy laws and not all expensive bankruptcy attorneys are outstanding, you will need to proceed with caution. Research is the key to finding the best bankruptcy attorney for your needs. There are many more factors to consider, besides price, when looking for a competent Elkhorn bankruptcy attorney. You should also consider the following:

Read More from: Wynn at Law, LLC

16 hours 25 min ago
Financial institutions take information security concerns very seriously, but few make it a priority to keep accountholders updated on their safeguarding efforts.

Read More from: BankThink

17 hours 38 min ago
A recent FCC ruling lumps legitimate businesses in with the telemarketing abusers and will hold banks to unrealistic standards.

Read More from: BankThink

20 hours 19 min ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? As a general rule, shoppers do better than other unsecured creditors in bankruptcy because companies want to take care of their loyal customers. Warranty programs, return policies, gift cards and other similar customer loyalty programs are usually assumed and honored in a restructuring. The one area where shoppers have a realistic concern is in the area of data collection. Many companies today collect and hold significant data on their customers that, in the event of a sale in bankruptcy to a third party, can increase recoveries to creditors and other stakeholders. Not surprisingly, shoppers often do not want that data sold. Coming to the right answer requires a balancing of the legitimate privacy expectations of a shopper against the goal of maximizing the value of the estate for all stakeholders. On balance, I believe the sale of this information along with the rest of the business to a third-party buyer should be permitted so long as the sale in bankruptcy ensures that there are certain necessary checks in place. While not an exhaustive list, the following protections may help:

Read More from: WSJ.com: Bankruptcy Beat

20 hours 45 min ago
Authored by Robert E. Pinder of Rogers TowersIt’s official – TRID will take effect on October 3, 2015. As we have previously discussed, ever since the Dodd-Frank Act mandated new, regime-changing, mortgage disclosures, the banking industry has been diligently preparing for the day that the Consumer Financial Protection Bureau (CFPB) implements a Truth-in-Lending Act (TILA)/Real Estate Settlement Procedures Act (RESPA) Integrated Mortgage Disclosures Rule – and now we know that that day will be October 3, 2015. TRID was originally slated to go into effect on August 1, 2015 but, on June 17, 2015, CFPB Director Richard Cordray issued a statement proposing a delay of TRID’s effective date until October 1, 2015. Then, on June 24, 2015, the CFPB followed up on the Director’s statement by issuing a proposed rule that would extend TRID’s effective date until October 3, 2015 (the additional 2 day delay allowed for a Saturday implementation, a schedule preferred by industry stakeholders).

Read More from: Florida Banking Law Blog

20 hours 54 min ago
Wall Street Journal Hillary Clinton's connections to UBS, which has made donations to the family's charitable foundation, comes under the spotlight in a lengthy article. While secretary of state, Clinton worked out a deal between UBS and the Internal Revenue Service; the IRS was trying to obtain information on Americans suspected of trying to dodge taxes through secret Swiss bank accounts. Following Clinton's involvement in the matter, which was seen to have greatly helped UBS, theÂ...

Read More from: BankThink

21 hours 19 min ago
Here's an opportunity to supervise a consumer financial protection clinic that has done some great work - information on the position and how to apply here

Read More from: Credit Slips

22 hours 15 min ago
John Greim/LightRocket/Getty Images
A bankruptcy judge won’t let Caesars Entertainment quickly appeal a ruling that lets lawsuits move ahead against its parent company. 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.”) Optim Energy LLC won approval of its bankruptcy-exit plan, WSJ reports. A bankruptcy judge approved a settlement with Bernard Madoff trustee Irving Picard that will give investment firm Plaza Investments International Ltd. at least $58 million, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

22 hours 40 min ago
The SEC has announced an open meeting next Wednesday, August 5, 2015 at 10:00 am, to consider final adoption of the pay ratio rule.  It is scheduled to be the last of three rule-related topics, the others pertain to security-based swap dealers.
1 day 12 hours ago
Both well meaning friends and creditors will tell you myths about filing bankruptcy. Dispel the myths about filing bankruptcy and be informed about your financial choices. http://ow.ly/QfqXOFiled under: Uncategorized
1 day 15 hours ago
Wall Street’s credit giants face slim pickings in their search for cheap bonds and loans to buy, but they’re still finding opportunities in European real-estate and the commodities-related sectors like oil-and-gas.
Bloomberg News
That’s according to  senior executives at credit-investing giants Oaktree Capital Group LLC and Blackstone Group LP, who shared thoughts on distressed investing on earnings calls in recent weeks. Wednesday, Apollo Global Management LLC was the latest to weigh in. Here are common themes from the calls: 1. Distress remains hard to find. With interest rates near zero and the U.S. economic climate benign, the default rate among U.S. corporate high-yield debt issuers sits at just 2% the year through June, according to Moody’s Investors Service. As such, “the supply of corporate distressed debt opportunities has been muted,” Oaktree co-chairman Bruce Karsh said Tuesday.

Read More from: WSJ.com: Bankruptcy Beat

1 day 15 hours ago
Debtors and creditors alike should understand that no debt restructuring option is perfect and that different options have advantages and disadvantages. To learn more, click on the link below to an article recently published by the online news site Hotel News Now: http://www.hotelnewsnow.com/Article/16344 The post Alternatives to a Bankruptcy Filing appeared first on Insolvency Insights.

Read More from: Insolvency Insights

1 day 15 hours ago
The American Bankruptcy Institute Commission to Study the Reform of Chapter 11 released its long-awaited, much-anticipated Final Report and Recommendations on December 8, 2014. Since the release of the Report, the Weil Bankruptcy Blog provided our readers with summaries of the most interesting and important issues addressed in the Report.  The ABI Commission was established in recognition of the “general consensus among restructuring professionals” that the time has come to evaluate U.S. business reorganization laws as a result of numerous changes that have occurred since the Bankruptcy Code was enacted in 1978. Some of the changes cited by the ABI Commission include the following:
  • more complex corporate structures with more leverage and, in particular, secured debt;
  • companies’ asset values driven less by hard assets and more by services, contracts, intellectual property, and other intangible assets;
  • greater prevalence of multinational operations; and
  • changed composition of creditor classes in light of claims trading and derivative products.
1 day 16 hours ago
Earning a substantial return on your investment feels good. You know what feels better? Donating money without an expectation of earning anything in return. When teenager Farrah Soudani was critically injured in the Aurora, Colorado, movie theater massacre in November 2012, her family, friends and social networking connections donated $171,525 in 15 months, via 6,088 donations, on the GoFundMe crowdfunding platform to help pay her medical expenses. Read more here.
1 day 17 hours ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? Customers have become more vocal about their losses in retail bankruptcy cases and have been more willing to take legal action to have their claims heard. The Federal Trade Commission and state attorneys general have also intervened on behalf of consumers either to protect the privacy of customer data or to collect the value of unredeemed gift cards—notably, in the ongoing RadioShack bankruptcy. Customer consternation when a retailer files for bankruptcy is understandable, but the potential losses customers may bear doesn’t justify giving such creditors additional safeguards in the bankruptcy process. The march to protect special interests could disrupt the level playing field the bankruptcy code seeks to establish.

Read More from: WSJ.com: Bankruptcy Beat

1 day 17 hours ago
While rising rates may temporarily improve net interest margin and profits, they will not increase bank stock prices for at least three reasons.

Read More from: BankThink

1 day 18 hours ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? All bankruptcy filings follow an orderly, court-driven process designed to fairly address the claims of all stakeholders. Unfortunately, companies don’t have the power to favor consumers over other creditors. However, consumers are better served by measures that smart business owners will take to keep customers happy. Ultimately, the future viability of a business emerging from bankruptcy will rest in the hands of its customers. While the law itself is generally focused on the settlement of creditor claims, maintaining customer goodwill should be of paramount concern to any potential successor owner. Thus, most of the protections afforded to customers during the bankruptcy process don’t stem from a legal obligation, but rather from practical considerations.

Read More from: WSJ.com: Bankruptcy Beat

1 day 18 hours ago

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