ABI Blog Exchange

In a detailed May 4, 2015 opinion, the Delaware Chancery Court extensively reviewed the rights of an insolvent company’s creditors to pursue derivative claims against the company’s directorsIn the opinion, Vice Chancellor Laster said that “to bring a derivative action, a creditor-plaintiff must plead and later prove that the corporation was insolvent at the time the suit was filed.” Because he found that Quadrant had introduced sufficient material to support a reasonable inference that Athilon was insolvent at the time Quadrant filed suit, and therefore he denied the defendants’ motion for summary judgment.In making these determinations, Laster broadly surveyed the legal principles underpinning derivative litigation in Delaware, including the rights of creditors to assert derivative claims under some circumstances. He reduced the various principles pertaining to these issues to a succinct bullet point list:The post Delaware Court reviews standard for derivative claims appeared first on Culhane Meadows PLLC - Chapter 11 Business Bankruptcy Attorneys.

Read More from: Richard G. Grant, P.C.

9 hours 47 min ago
Per Reuters:Fri May 1, 2015 12:47pm EDTBy Rania El Gamal and Reem ShamseddineDUBAI/KHOBAR, Saudi Arabia, May 1 (Reuters) - Saudi Arabia is restructuring the world's biggest energy company, Saudi Aramco, in a move apparently aimed at letting it operate more at arm's length from the powerful oil ministry.For more, see: http://www.reuters.com/article/2015/05/01/saudi-oil-aramco-idUSL5N0XS0BI20150501?type=companyNews&feedType=RSS&feedName=companyNews

Read More from: The COMI

2 days 4 hours ago
Per www.globalinsolvency.com:Wed., May 20, 2015Administrators of the furniture arm of failed lender African Bank Investments said on Tuesday creditors were paid 14 percent of what they were owed by Ellerine Furnishers, which had debts of around 1.3 billion rand ($109 million), Reuters reported. Administrators Matuson Associates said they paid out 14 cents for each rand owed, higher than the previously anticipated 13 cents per rand. Ellerine was forced into business rescue last year, which allows for temporary protection from creditors, as parent African Bank Investments crumbled under bad debts. The administrators also said they were in talks with several potential buyers for stores outside South Africa and may not receive as much as they had previously anticipated. Matuson Associates said last year they had received an indicative offer of 400 million rand for Ellerine's stores in other African countries from a listed South African retailer but Matuson said he was no longer sure he would receive that amount. 

Read More from: The COMI

2 days 5 hours ago
Per www.globalinsolvency.com:Thu., May 21, 2015Russia on Wednesday demanded the timely repayment of all debts owed to it by Ukraine and accused Kiev of effectively preparing the way for default with a new law. It threatened to take the issue to international courts if necessary. The law, approved by Ukraine's parliament on Tuesday, gives the government the right to miss payments to its international creditors as it wrangles over the terms for restructuring $23 billion worth of foreign debt. Russia holds a $3 billion Ukrainian Eurobond whose full repayment is due by the end of the year. Moscow, whose relations with Kiev have been wrecked by a year-long conflict in eastern Ukraine, has declined to join the debt restructuring talks. President Vladimir Putin, speaking at a meeting with government ministers, said he found the new law "strange". "To effectively announce an impending default shows a poor level of professional responsibility, all things considered," said Putin, noting that the International Monetary Fund does not lend to countries in default. Ukraine, its economy battered by recession and rampant graft as well as by the conflict in the east, hopes to secure the next tranche of a $17.5 billion bailout programme with the IMF this summer to shore up its foreign currency reserves.

Read More from: The COMI

2 days 5 hours ago
The Canadian and US courts have now ruled in the Nortel case. (Disclosure: I served as an expert for the UK pension interests in the case.) The case was already incredibly important because of an agreement among the parties to sell the worldwide assets of the corporate group without regard to territory or corporate ownership, creating a global pool of proceeds (about $7B) for distribution in such manner as agreed by the parties or as mandated by the two courts. (The UK court was not involved at this stage, which is an interesting point for another day.) A unified worldwide sale is a central advantage of universalism, enabling the parties here to achieve much higher values than had been predicted. However, when the parties could not agree as to distribution, the two courts were forced to decide. Ignoring many significant aspects of that process, after a joint on-line trial the two courts reached a common result. The joint trial and common result were two more extraordinary accomplishments. The common resolution is a special triumph for universalism.

Read More from: Credit Slips

3 days 8 hours ago
The confirmation order entered in every Oregon Chapter 13 Bankruptcy requires you to report to the Trustee if your actual or projected gross income increases by ten percent. The income figures included in Schedule I of your Bankruptcy Schedules filed with the Oregon Bankruptcy Court before confirmation serves as the baseline for determining whether there has been a ten percent increase. If  ten percent increase arises after confirmation, you should contact your attorney to review all of your income and expenses and file amended schedules to reflect the changes. Just because your income has increased by over ten percent doesn’t always mean that there needs to be an accompanying ten percent increase in your plan payment. For most of us, increases in income are almost always accompanied by the necessity to start really paying what we need to be paying for household living expenses or get the car that we have been putting off.   The original post is titled My Income Has Gone Up in My Oregon Chapter 13 Bankruptcy , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .

Read More from: Oregon Bankruptcy Lawyer

3 days 12 hours ago
In this Dec. 3, 2014 file, photo, Kanye Wests attend the premiere of “Top Five” at the Ziegfeld Theatre in New York.
Evan Agostini/Invision/Associated Press
Online streetwear retailer Karmaloop Inc., which was sold to one of its creditors Thursday, drew interest from a number of celebrities—including Kanye West, according to people familiar with the sale process. “We were doing our best to avoid being starstruck,” said Michael O’Hara, Karmaloop’s investment banker. Entertainment moguls, well-known athletes and at least 50 other prospective purchasers held meetings with Karmaloop’s professionals during a months-long effort to find a buyer for the bankrupt company. “They ranged from your traditional private equity firms all the way through to Kanye West,” said Brian Davies, Karmaloop’s chief restructuring officer. Mr. Davies said Karmaloop’s core demographic, those between the ages of 18 and 35, was particularly attractive to many of the sports stars and other celebrities. “For a lot of these athletes and a lot of these stars, that was the demographic they are looking at,” he said. Both Mr. O’Hara and Mr. Davies said Karmaloop may still partner with a celebrity, which could add significant value to the company’s business.

Read More from: WSJ.com: Bankruptcy Beat

3 days 12 hours ago
In this Dec. 3, 2014 file, photo, Kanye Wests attend the premiere of “Top Five” at the Ziegfeld Theatre in New York.
Evan Agostini/Invision/Associated Press
Online streetwear retailer Karmaloop Inc., which was sold to one of its creditors Thursday, drew interest from a number of celebrities—including Kanye West, according to people familiar with the sale process. “We were doing our best to avoid being starstruck,” said Michael O’Hara, Karmaloop’s investment banker. Entertainment moguls, well-known athletes and at least 50 other prospective purchasers held meetings with Karmaloop’s professionals during a months-long effort to find a buyer for the bankrupt company. “They ranged from your traditional private equity firms all the way through to Kanye West,” said Brian Davies, Karmaloop’s chief restructuring officer. Mr. Davies said Karmaloop’s core demographic, those between the ages of 18 and 35, was particularly attractive to many of the sports stars and other celebrities. “For a lot of these athletes and a lot of these stars, that was the demographic they are looking at,” he said. Both Mr. O’Hara and Mr. Davies said Karmaloop may still partner with a celebrity, which could add significant value to the company’s business.

Read More from: WSJ.com: Bankruptcy Beat

3 days 12 hours ago
A recap of the informed opinions (and the discussions they generated) on BankThink this week, including the merits and drawbacks of Sen. Richard Shelby's regulatory reform legislation, whether bigger banks are inherently riskier and banks' evolving interest in blockchain technology.

Read More from: BankThink

3 days 13 hours ago
Frederick’s of Hollywood’s routine bankruptcy reports list pages of vintage or famous underwear, including s corset Madonna wore onstage in the 1980s, among its assets. In this photo, Madonna performs at the Grammys on Feb. 8 in Los Angeles.
John Shearer/Associated Press
A black sheer T-shirt from Fabio’s personal collection, a cream lace bustier worn by Marilyn Monroe, the army-green boxers Tom Hanks wore in “Forrest Gump,” Milton Berle’s pink sequin and chiffon, ostrich-trimmed dressing gown from the 1950s—the list goes on. Frederick’s of Hollywood’s routine bankruptcy reports list pages of vintage or famous underwear, value “unknown,” among its assets.  Some of the stuff was worn in movies or on stage, some was designed by celebrities for charity, some is signed and some is from “personal collections.”

Read More from: WSJ.com: Bankruptcy Beat

3 days 14 hours ago
Frederick’s of Hollywood’s routine bankruptcy reports list pages of vintage or famous underwear, including s corset Madonna wore onstage in the 1980s, among its assets. In this photo, Madonna performs at the Grammys on Feb. 8 in Los Angeles.
John Shearer/Associated Press
A black sheer T-shirt from Fabio’s personal collection, a cream lace bustier worn by Marilyn Monroe, the army-green boxers Tom Hanks wore in “Forrest Gump,” Milton Berle’s pink sequin and chiffon, ostrich-trimmed dressing gown from the 1950s—the list goes on. Frederick’s of Hollywood’s routine bankruptcy reports list pages of vintage or famous underwear, value “unknown,” among its assets.  Some of the stuff was worn in movies or on stage, some was designed by celebrities for charity, some is signed and some is from “personal collections.”

Read More from: WSJ.com: Bankruptcy Beat

3 days 14 hours ago
Series: Crowdfunding 2015 What role does an intermediary play in crowdfunding? The “Crowdfunding from the Intermediary’s Perspective” webinar features three top experts in the crowdfunding space who will discuss what an intermediary will provide that could play a crucial role in how a crowdfunding deal plays out. From due diligence to vetting deals, investors often have their hands full when looking at crowdfunding investing. Read more here.
3 days 14 hours ago
What does Memorial Day weekend mean to you?  Perhaps it means having a nice long weekend with family and friends?  Or spending hours sitting in traffic with all the people who are getting away from it all for the weekend?  Or maybe you are a traditionalist and will spend the weekend getting all of your white clothes out of Manhattan Mini Storage.  Well, for the Weil Bankruptcy Blog, the start of Memorial Day weekend means one thing — the return of Bankruptcy Beach Reading. Our first Bankruptcy Beach Reading post of the season tells a tale of some things not to do if an attorney does not want to get burned by Rule 9011.  Although this story focuses on events in an individual debtor’s case, one can easily see how stretching the law or the facts could apply in a chapter 11 case. 
3 days 14 hours ago
This week on The Broke and the Beautiful, another member of English boy band Blue filed for bankruptcy, and a judge called for the arrest of Girls Gone Wild founder Joe Francis.
Simon Webbe, Ducan James, Antony Costa and Lee Ryan of British group Blue Duesseldorf, Germany, in May 2011. Lee Ryan was the final member of the band to file for bankruptcy.
EPA/Joerg Carstensen

Read More from: WSJ.com: Bankruptcy Beat

3 days 15 hours ago
This week on The Broke and the Beautiful, another member of English boy band Blue filed for bankruptcy, and a judge called for the arrest of Girls Gone Wild founder Joe Francis.
Simon Webbe, Ducan James, Antony Costa and Lee Ryan of British group Blue Duesseldorf, Germany, in May 2011. Lee Ryan was the final member of the band to file for bankruptcy.
EPA/Joerg Carstensen

Read More from: WSJ.com: Bankruptcy Beat

3 days 15 hours ago
Outrage is the usual reaction when a former spouse who owes you child support or alimony files bankruptcy. It reinforces all those less-than-flattering thoughts you harbor about your ex. But maybe that’s not the right reaction for two reasons.  One is old:  support debts can’t be wiped out in bankruptcy. The second reason is new:  failure to pay support is grounds for dismissal of a bankruptcy case. You may have levers that weren’t available to you before. Unpaid support dooms reorganization Chapter 11 and Chapter 13 are reorganization chapters of bankruptcy.  The person filing for relief stays in possession of their assets and proposes a plan to solve their financial problems. If you’re in financial trouble, it seems to offer the best of both worlds:  you keep your stuff and get immediate protection from your creditors. But there’s a condition.  The debtor needs to stay current on support obligations that come due after he files the bankruptcy case.
3 days 16 hours ago
Fannie and Freddie's profits depend on having their obligations backed by the U.S. Treasury. Therefore they should have to pay a sensible price for this backstop Â-- just like big banks.

Read More from: BankThink

3 days 16 hours ago
In a lunch that became an impromptu memorial service to Harvey Miller, former Lehman Brothers Judge James Peck might have said it best: “Harvey is to bankruptcy what Beyoncé is to pop music. He’s a single name that defines the field.” Mr. Peck’s remarks, part of a video tribute to the recently deceased bankruptcy law legend, came at an annual event that Mr. Miller himself helped co-organize nearly 30 years ago… Source: http://blogs.wsj.com/bankruptcy/2015/05/21/restructuring-community-pays-... post Restructuring Community Pays Tribute to Harvey Miller appeared first on Culhane Meadows PLLC - Chapter 11 Business Bankruptcy Attorneys.

Read More from: Richard G. Grant, P.C.

3 days 16 hours ago
Duer Wagner III Oil Company files for Chapter 11 Bankruptcy Protection Duer Wagner III Oil and Gas, LP and 11 affiliates filed for protection under Chapter 11 of the United States Bankruptcy Code on May 15, 2015 in the United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division, under Case No. 15-41961-11. Steve N. Washuta is the Chief Operating Officer of and for Duer Wagner III Oil & Gas LP, Duer Wagner III & Partners, LLC, Duer Wagner Iii, Inc., Duer Wagner Iii Energy, LLC, Bodine Oil & Gas, LP, Jeffcoat LP, Lett Oil & Gas, LP, Modano Oil & Gas, LP, Norton Oil & Gas, LP, Nowitzki Oil & Gas, LP, Teixeira Oil & Gas, LP, Woodson Oil & Gas, LP (together, the “Debtors”) and discusses the filing: “Duer Wagner III, Inc. (“DW3 Inc.”) is a Texas S corporation and owns 100% of the membership interest of Duer Wagner III Energy, LLC (“DW3 Energy”). “Duer Wagner III Energy, LLC is a Texas limited liability company and owns a 1 % limited partnership interest in: Norton Oil & Gas, LP (“Norton”); Jeffcoat, LP (“Jeffcoat”); Lett Oil & Gas, LP (“Lett”); Woodson Oil & Gas, LP (“Woodson”); Modano Oil & Gas, LP (“Modano”); Teixeira Oil & Gas, LP (“Teixeira”); Nowitzki Oil & Gas, LP (“Nowitzki”) and Bodine Oil & Gas, LP (“Bodine”). “Duer Wagner III & Partners, LLC (“DW3 Partners”) is a Texas limited liability company.

Read More from: Richard G. Grant, P.C.

3 days 16 hours ago
Lehman Brothers Holdings Inc. is suing three financial institutions over bundles of soured old mortgage loans, calling claims that Lehman owes hundreds of millions of dollars “grossly exaggerated and baseless. 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.”) According to WSJ, a bankruptcy trustee for Life Partners Holdings Inc. says the company defrauded investors. A lawyer for Tim Blixseth, the jailed founder of the luxurious Yellowstone Club ski and golf resort, is petitioning the U.S. Supreme Court for his client’s release, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

3 days 17 hours ago

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