ABI Blog Exchange

On May 17, 2015, Frac Specialists, LLC (“Frac Specialists”), Cement Specialists, LLC (“Cement Specialists”), and Acid Specialists, LLC (“Acid Specialists” and collectively with Frac Specialists and Cement Specialists, the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division. According to the Debtors’ motion for joint administration (the “Joint Administration Motion”),  each of the Debtors provide oilfield services for drillers in the Permian Basin.  Frac Specialists provides energized fluid fracs, slick water fracs, cross-linked fracs and gelled water fracs.  Cement Specialists provides cementing services including remedial work, squeeze jobs, production, intermediate and surface casing, liners and plug and abandonment services.  Acid Specialists provides acid and related chemical pressure pumping services to enhance and maintain production.  The Debtors’ assets include equipment necessary to perform such services. Joint Administration Motion at 2-4. The Debtors are seeking to have their cases jointly administered under the lead case of In re Frac Specialists, LLC [Case No. 15-41974].  The Debtors’ cases have been assigned to Judge D. Michael Lynn. A copy of the Joint Administration Motion can be accessed here: Download Joint Administration Motion.
2 days 17 hours ago
By Jessica Silver-GreenbergTwo of the nation’s biggest banks will finally put to rest the zombies of consumer debt — bills that are still alive on credit reports although legally eliminated in bankruptcy — potentially providing relief to more than a million Americans.Bank of America and JPMorgan Chase have agreed to update borrowers’ credit reports within the next three months to reflect that the debts were extinguished.The move is a victory for borrowers whose credit reports have been marred as a result of the reported debts, imperiling their job prospects and torpedoing their chances of getting new loans.The change by the banks emerged this week in Federal Bankruptcy Court in White Plains, where the two banks, along with Citigroup and Synchrony Financial, formerly GE Capital Retail Finance, face lawsuits accusing them of deliberately ignoring bankruptcy discharges to fetch more money when they sell off pools of bad debt to financial firms.The lawsuits accuse the banks of engineering what amounts to a subtle but ruthless debt collection tactic, effectively holding borrowers’ credit reports hostage, refusing to fix the mistakes unless people pay money for debts that they do not actually owe.It is not the only pressure.

Read More from: Shenwick & Associates

2 days 19 hours ago
House Judiciary Committee Chairman Rep. Bob Goodlatte (R., Va.) listens to testimony on Capitol Hill in Washington, Tuesday May 19, 2015. He blasted the U.S. Trustee Program’s donation to the American bankruptcy Institute’s charity.
Jacquelyn Martin/Associated Press’
Bankrupt homeowners are getting the bulk of a historic, $50 million settlement after the U.S. Trustee Program, the watchdog for the country’s bankruptcy courts, accused a J.P. Morgan Chase & Co. unit of filing “robo-signed” mortgage documents to courts across the country. But as one angry Republican lawmaker pointed out at a hearing on Tuesday, some of the money “didn’t make it to the victims.” The fine print of the settlement called for bank officials to make a $7.5 million donation to a charity run by the American Bankruptcy Institute, a nonprofit trade group with a program that warns students about the consequences of credit card abuse and poor money management.

Read More from: WSJ.com: Bankruptcy Beat

2 days 19 hours ago
By Associated PressST. AUGUSTINE, FLA. — First came the health problems. Then, unable to work, Ada Noda watched the bills pile up. And then, suffocating in debt, the 80-year-old did something she never thought she'd be forced to do. She declared bankruptcy.While the bankruptcy filing rate for those under 55 has fallen, it has soared for older Americans, according to a new analysis from the Consumer Bankruptcy Project, which examined a sampling of noncommercial bankruptcies filed between 1991 and 2007.The older the age group, the worse it got — people 65 and up became more than twice as likely to file during that period, and the filing rate for those 75 and older more than quadrupled."Older Americans are hit by a one-two punch of jobs and medical problems and the two are often intertwined," said Elizabeth Warren, a Harvard Law School professor who was one of the authors of the study. "They discover that they must work to keep some form of economic balance and when they can't, they're lost."That's precisely what happened to Noda. She worked all her life, on a hospital's housekeeping staff, and later selling boat tickets to tourists. She cut corners when she needed to but always paid the bills she neatly logged in a ledger."I was born during the Depression," she said.

Read More from: Shenwick & Associates

2 days 20 hours ago
A workman repairs the store front of a closed branch of electronics retailer ‘RadioShack ' in Springfield, Virginia, March 12, 2015.
Shawn Thew/European Pressphoto Agency
RadioShack Corp.’s bankruptcy judge is scheduled to hear arguments Wednesday about whether sale of the retailer’s customer data can proceed and under what conditions. Standard General LP, a hedge fund that in March bought 1,743 RadioShack stores and inventory, was the top bidder last week in an auction of intellectual property, including customer names, e-mail addresses and mailing addresses. The case highlights data’s rising role as a valued company asset, and the privacy worries triggered when bankrupt companies seek to sell their customer data to pay creditors. The Federal Trade Commission in a letter Monday asked Judge Brendan Shannon to hold any buyer to privacy promises RadioShack made to customers when it collected the data, as well as to obtain their consent before doing anything different with the information. “Privacy policies are explicit,” said Jamie Hine, a senior attorney at the FTC, in an interview.

Read More from: WSJ.com: Bankruptcy Beat

2 days 21 hours ago
The proposed legislation for regulatory relief seeks to roll back critical mortgage protections put in place to prevent another housing crisis.

Read More from: BankThink

2 days 21 hours ago
In re ADI Liquidation, Inc., (f/k/a AWI Delaware, Inc.), No. 14-12092 (KJC) (Bankr. D. Del. May 5, 2015) In this Memorandum, Judge Carey answered an important legal question in the affirmative: whether a debtor can use its setoff or recoupment rights (whether pre- or post-petition) to reduce—at its election—the amount of a creditor’s allowed secured, administrative, or general unsecured claim.  In other words, a debtor may choose to apply a receivable against a creditor’s allowed administrative claim, which is entitled to full payment under a plan, and to preserve the creditor’s general unsecured claim, which may only receive partial payment under a plan. Read More › Tags: Setoff Rights

Read More from: Delaware Bankruptcy Insider

2 days 22 hours ago
Contributed by Mark Lawford and Tom Laidler The Court of Appeal in London recently gave judgment in the Waterfall I Appeal, a dispute as to the distribution of the estimated £7 billion surplus of assets in the main Lehman operating company in Europe, Lehman Brothers International (Europe) (LBIE). Continue reading
2 days 23 hours ago
Series: Real Estate Dumbed Down 2015 A popular investment option is real estate.  Like the adage says, “they’re not making any more.”  There are a variety of classes of real estate that one can invest in, including retail, office buildings, and farm land.  The most common for the individual investor, however, is residential and multi-family real estate.  This webinar will cover the basics of investing in real estate, with an emphasis on residential real estate. Read more here.
2 days 23 hours ago
El Paso Children’s Hospital filed for protection under Chapter 11 of the United States Bankruptcy Code on May 19, 2015 In the United States Bankruptcy Court for the Western District of Texas, El Paso Division, under Case No. 15-30784-CM-11. Mark Herbers Mark Herbers is the Chief Executive Officer and Chief Restructuring Officer of El Paso Children’s Hospital Corporation (“Children’s Hospital” and/or “Debtor”) since February 27, 2015 and discusses the filing: “When the Debtor opened its doors on February 14, 2012, it opened the door for the children of El Paso and the surrounding communities to have unprecedented access to highcaliber pediatric care in their own backyard. The Debtor’s opening accomplished the largest expansion of pediatric medical care in recent West Texas history, thus filling a void in pediatric care in El Paso that had historically caused infants and children in need of specialized pediatric care to travel to Albuquerque or San Antonio or Dallas or even across the state to Houston to receive treatment from pediatric specialists and sub-specialists. In fact, until the Debtor opened its doors, El Paso was the largest city in the United States without a separately licensed children’s hospital.

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

2 days 23 hours ago
Critics of the regulatory relief bill proposed by Sen. Richard Shelby argue that will endanger the financial system and benefit big banks. But in fact, the changes offer sensible, nonpartisan fixes to some of the biggest problems with the Dodd-Frank Act.

Read More from: BankThink

2 days 23 hours ago
Critics of the regulatory relief bill proposed by Sen. Richard Shelby argue that will endanger the financial system and benefit big banks. But in fact, the changes offer sensible, nonpartisan fixes to some of the biggest problems with the Dodd-Frank Act.

Read More from: BankThink

2 days 23 hours ago
Let Target's settlement with MasterCard over the retailer's massive data breach serve as a reminder of the need for all participants in the payments system to play by the same set of rules.

Read More from: BankThink

2 days 23 hours ago
A bankruptcy judge has cleared the way for victims of tainted injections that caused a 2012 meningitis outbreak in the U.S. to begin receiving money from a $200 million trust fund created for their benefit. 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.”) The financial woes of Brazil’s embattled OAS Group have sparked an international bankruptcy duel and sent bondholders to a New York court for aid. The Wall Street Journal has the DBR article here. According to Bloomberg, Standard & Poor’s downgraded Colt Defense LLC’s debt to default.

Read More from: WSJ.com: Bankruptcy Beat

3 days 21 min ago
Silicon valley is not the only place budding startups are blossoming. A new emerging market for startups can be found in Africa – particularly in Nigeria and Kenya. While still relatively small, and growing,  Africa is looking for venture capital to fuel the ideas of entrepreneurs. Venture Capital for Africa is a platform that seeks to connect investors and startups. Read more here.
3 days 22 min ago
Contact us about more information on the following opportunities to invest in, purchase, or loan to distressed companies and their assets (including bankruptcy, ABCs, receiverships, and Article 9), and into other time sensitive situations. The deals listed here were added for the seven day period ending this past Sunday. Plant/Facility Closings Tin mill Textile plant Bakery chain Frozen food plant Religious/Art museum Full-service restaurant Manufacturer of bathroom sinks Retail chain – Over 60 stores Shopping Center – Over 400,000 sq. ft.

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

3 days 45 min ago
Receiving Wide Coverage ... UBS Pays Up: Immunity didn't quite work out for UBS. The Swiss lender has agreed to pay $545 million to settle investigations into the alleged manipulation of foreign-exchange and Libor rates. UBS had reached a nonprosecution agreement with the U.S. back in 2012 over its alleged role in the Libor scandal, but prosecutors scrapped the deal when the bank later became implicated in forex rigging. Now it will plead guilty to oneÂ...

Read More from: BankThink

3 days 56 min ago
If you have decided to use the services of a debt management or debt consolidation company, keep in mind that you may be much better off consolidating your debt under Chapter 13 of the United States Bankruptcy Code. You set the plan approved by the Court and make payments pursuant to a Federal Court order that: 1. Stops interest for unsecured creditors 2. Stops late fees 3. Stops and prevents lawsuits 4. Stops harassing telephone calls Most debt management or debt consolidation plans do not do these things for you. Have a lawyer with extensive bankruptcy experience review your financial situation and advise you of the options available to you.
3 days 58 min ago
Flyboy Aviation Properties, LLC v. Franck (In re Flyboy Aviation Properties, LLC), 525 B.R. 510 (Bankr. N.D. Ga. 2015) – A chapter 11 debtor operated a small private airport.  The debtor and an adjacent landowner had a long running dispute that … Continue reading →
3 days 3 hours ago
Acknowledging that the statutory language "does not say expressly" what should happen, the Supreme Court nevertheless ruled that undistributed funds held by the Chapter 13 trustee should be returned to the debtor following a conversion.   The Court described its result as "the most sensible reading of what Congress did provide."   Justice Ginsberg wrote the opinion for an unanimous Court.   Harris v. Viegelahn, No. 14-400 (5/18/15).What HappenedCharles Harris, III began his trip to the Supreme Court when he filed a chapter 13 petition in San Antonio, Texas in February 2010.   He was trying to save his home after defaulting upon his mortgage.    However, by November 2010, the Court had lifted the stay to allow the lender to foreclose.   A year later, he converted his case to chapter 7.   At that time, the Chapter 13 Trustee had over $5,500 on hand.  Rather than returning these funds to the debtor or paying them to the Chapter 7 trustee, she paid them to debtor's counsel and the unsecured creditors.   The Debtor filed a motion for return of the funds.   The Bankruptcy Court granted this motion and the trustee appealed.   The Fifth Circuit reversed, finding that the Bankruptcy Court's order would allow the Debtor to receive a "windfall."    In re Harris, 757 F.3d 468 (5th Cir.
3 days 14 hours ago

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