ABI Blog Exchange

In re Filene’s Basement, LLC, et al., No. 11-13511 (KJC) (Bankr. D. Del. Apr. 16, 2015) In this Opinion, Delaware Bankruptcy Court Judge Kevin Carey ruled on a question that has evenly divided courts nationwide and remained unanswered by the Third Circuit Court Appeals – namely, whether the “15 percent” referenced in section 502(b)(6)(A) of the Bankruptcy Code refers to the remaining term of a lease or the remaining rent due under a lease.  Read More › Tags: Claims, Lease Termination Claims, Rejection

Read More from: Delaware Bankruptcy Insider

4 days 6 hours ago
April 15 is not only tax day, but it’s a great day to look at your financial situation to see if you need to make any adjustments. This is the time when you can analyze how you did financially in the past year. This is the time when you’re required to have your income tax+ Read More The post With Tax Day Upon Us, Is Your Financial House In Order? appeared first on David M. Siegel.
4 days 7 hours ago
Prior to the crash, only a very few macro-economists were studying consumer borrowing and fewer still were investigating inequality of income or of wealth as an important macro-economic factor. Work in macro-economics is done at academic institutions, the Fed, think tanks and government and private enterprises. Historically, very few PhD dissertations in macro-economics dealt with consumer finance or consumer spending or inequality issues. Prior to the crash there was a divide between the small minority (which included some high prestige folks such as Joseph Stiglitz) and the dominate majority. Both sides make extensive use of mathematical formulae but the majority looks more like physics and the minority may include a dose of sociology.  This is important stuff because government fiscal policy and even monetary policy and private business decisions are often based on the work of these folks. The majority tended to believe that humans act rationally while the minority helped develop the field of behavioral economics. 

Read More from: Credit Slips

4 days 8 hours ago
Wayne Parry/Associated Press
Florida developer Glenn Straub, who recently bought Atlantic City, N.J.’s Revel Casino Hotel for pennies on the dollar, is demanding that the resort’s custom-built, $160 million power plant “immediately vacate the property” after it shut off all utility services last week. 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.”) RadioShack Corp. won approval to sell its Defends Mobile Corp. handsets and its Latin American intellectual property, DBR reports.

Read More from: WSJ.com: Bankruptcy Beat

4 days 8 hours ago
Wayne Parry/Associated Press
Florida developer Glenn Straub, who recently bought Atlantic City, N.J.’s Revel Casino Hotel for pennies on the dollar, is demanding that the resort’s custom-built, $160 million power plant “immediately vacate the property” after it shut off all utility services last week. 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.”) RadioShack Corp. won approval to sell its Defends Mobile Corp. handsets and its Latin American intellectual property, DBR reports.

Read More from: WSJ.com: Bankruptcy Beat

4 days 8 hours ago
As has been reported, the U.S. Court of Appeals for the Third Circuit has decided that Wal-Mart does not have to include in its 2015 proxy materials a shareholder proposal requesting that the Compensation, Nominating and Governance Committee charter be amended to add oversight of implementation of policies that would evaluate whether the company should sell certain types of guns that the proponent argues endangers public safety, has the substantial potential to impair the company's reputation or would be considered offensive to the values that are integral to the company’s brand.
4 days 10 hours ago
Mano-Y&M Ltd. v. Field (In re Mortgage Store, Inc.), 773 F.3d 990 (9th Cir. 2014) – A chapter 7 trustee sought to avoid a transfer by the debtor as a fraudulent conveyance and then to recover funds disbursed by the debtor to … Continue reading →
4 days 11 hours ago
A Congressional overhaul of U.S. bankruptcy law may be keeping financially struggling people out of bankruptcy court, but it hasn’t kept them from going broke, researchers have found. A new study from the Federal Reserve Bank of New York puts a spotlight on a pocket of financially struggling people who, researchers say, are too poor to file for bankruptcy after federal lawmakers changed the law in 2005 and made it more expensive. The study was written by economists Stefania Albanesi of the New York Fed and Jaromir Nosal of Columbia University. Specifically, the report found a “sizable group of individuals exists that does not file for bankruptcy, but seems unable to pay off their debts.” By cutting off the path to bankruptcy, the 2005 law–the Bankruptcy Abuse Prevention and Consumer Protection Act–may have removed the chance for a fresh start for those that need it most, the study said. “These individuals are concentrated at the bottom of the income distribution, and therefore they are the ones who would be expected to benefit most from the relief offered by personal bankruptcy,” the researchers said.

Read More from: Credit Slips

4 days 23 hours ago
A Congressional overhaul of U.S. bankruptcy law may be keeping financially struggling people out of bankruptcy court, but it hasn’t kept them from going broke, researchers have found. A new study from the Federal Reserve Bank of New York puts a spotlight on a pocket of financially struggling people who, researchers say, are too poor to file for bankruptcy after federal lawmakers changed the law in 2005 and made it more expensive. The study was written by economists Stefania Albanesi of the New York Fed and Jaromir Nosal of Columbia University. Specifically, the report found a “sizable group of individuals exists that does not file for bankruptcy, but seems unable to pay off their debts.” By cutting off the path to bankruptcy, the 2005 law–the Bankruptcy Abuse Prevention and Consumer Protection Act–may have removed the chance for a fresh start for those that need it most, the study said. “These individuals are concentrated at the bottom of the income distribution, and therefore they are the ones who would be expected to benefit most from the relief offered by personal bankruptcy,” the researchers said.

Read More from: WSJ.com: Bankruptcy Beat

5 days 56 min ago
A Congressional overhaul of U.S. bankruptcy law may be keeping financially struggling people out of bankruptcy court, but it hasn’t kept them from going broke, researchers have found. A new study from the Federal Reserve Bank of New York puts a spotlight on a pocket of financially struggling people who, researchers say, are too poor to file for bankruptcy after federal lawmakers changed the law in 2005 and made it more expensive. The study was written by economists Stefania Albanesi of the New York Fed and Jaromir Nosal of Columbia University. Specifically, the report found a “sizable group of individuals exists that does not file for bankruptcy, but seems unable to pay off their debts.” By cutting off the path to bankruptcy, the 2005 law–the Bankruptcy Abuse Prevention and Consumer Protection Act–may have removed the chance for a fresh start for those that need it most, the study said. “These individuals are concentrated at the bottom of the income distribution, and therefore they are the ones who would be expected to benefit most from the relief offered by personal bankruptcy,” the researchers said.

Read More from: WSJ.com: Bankruptcy Beat

5 days 56 min ago
Fumbled opportunities? Nearly one in six NFL players goes bankrupt within 12 years of retirement.
(TIMOTHY A. CLARY/AFP/GETTY IMAGES)
Despite big paydays, many National Football League players run into financial trouble after they retire and nearly one in six files for bankruptcy within a dozen years of hanging up their cleats, according to a new analysis. “Players with median-length careers earn about $3.2 million in a few years. If they are forward-looking and patient, they should save a large fraction of their income to provide for when they retire from the NFL,” Kyle Carlson, Joshua Kim, Annamaria Lusardi and Colin F. Camerer wrote in a working paper released this month by the National Bureau of Economic Research. Instead, the researchers found that 15.7% of players file for bankruptcy within 12 years of retiring from the league, with little difference based on career length or earnings. “Having played for a long time and having been a successful and well-paid player does not provide much protection against the risk of going bankrupt,” they wrote.

Read More from: WSJ.com: Bankruptcy Beat

5 days 56 min ago
Hear the one about 28-year old Owen Li, manager of hedge fund Canarsie Capital, sending an apology letter to investors disclosing that he had lost 99.7% of the funds under management? No, here is the New York Times article about it. Read more here.
5 days 3 hours ago
On March 3, 2015, the Eighth Circuit issued an opinion holding—consistent with past Eighth Circuit precedent—that an order denying plan confirmation does not constitute a final order that may be appealed without leave of the court.  The opinion was not only a harsh reality-check for the debtor, but a reminder of the circuit split that exists with respect this important issue.  Luckily, there is cause to believe that the circuit split may not exist for much longer: earlier this month, the Supreme Court heard oral argument in a case presenting the very question whether an order denying plan confirmation constitutes a “final order” within the meaning of 28 U.S.C. § 158(a)(1).   “Flexible” Finality
5 days 3 hours ago
In a recent opinion, the Ninth Circuit Court of Appeals held that the FDIC may be liable in damages to a counter party for breach of a bank’s pre-receivership contract.  Bank of Manhattan v. Federal Deposit Insurance Corporation, 2015 WL 898232 (9th Circ. 2015).  The facts in Bank of Manhattan involved a participation agreement between two banks.  Bank of Manhattan’s predecessor in interest – Professional Business Bank (“PBB”) – sold a participation interest in a loan to First Heritage Bank (“Heritage”).  The participation agreement contained two key provisions relevant to the case:  (1) Heritage could not transfer its interest in the loan without PBB’s prior written consent and (2) PBB was granted a right of first refusal entitling it to repurchase Heritage’s interest in the loan on the latter’s receipt of a bona fide third party offer. 
5 days 4 hours ago
Hear the one about 28-year old Owen Li, manager of hedge fund Canarsie Capital, sending an apology letter to investors disclosing that he had lost 99.7% of the funds under management? No, here is the New York Times article about it. Read more here.
5 days 5 hours ago
Marketplace lenders are aggressively marketing their loans as a way to refinance expensive credit card debt. And with more affordable interest rates and faster loan application processes, there's reason to believe that firms like Lending Club and SoFi will beat out banks.

Read More from: BankThink

5 days 5 hours ago
The big decision out of the Fifth Circuit this month was a Ponzi scheme case against The Golf Channel.    Honorable mentions included the follow up appeal in the Frazin case which first addressed consent in Stern cases and several cases involving mortgages.  Because there have been slim pickings among bankruptcy cases per se,  I have included several non-bankruptcy cases which generally involve debtor-creditor relations.  Torres v. Krueger, No. 13-11165 (5th Cir.
5 days 6 hours ago
Fumbled opportunities? Nearly one in six NFL players goes bankrupt within 12 years of retirement.
(TIMOTHY A. CLARY/AFP/GETTY IMAGES)
Despite big paydays, many National Football League players run into financial trouble after they retire and nearly one in six files for bankruptcy within a dozen years of hanging up their cleats, according to a new analysis. “Players with median-length careers earn about $3.2 million in a few years. If they are forward-looking and patient, they should save a large fraction of their income to provide for when they retire from the NFL,” Kyle Carlson, Joshua Kim, Annamaria Lusardi and Colin F. Camerer wrote in a working paper released this month by the National Bureau of Economic Research. Instead, the researchers found that 15.7% of players file for bankruptcy within 12 years of retiring from the league, with little difference based on career length or earnings. “Having played for a long time and having been a successful and well-paid player does not provide much protection against the risk of going bankrupt,” they wrote.

Read More from: WSJ.com: Bankruptcy Beat

5 days 6 hours ago
Fumbled opportunities? Nearly one in six NFL players goes bankrupt within 12 years of retirement.
(TIMOTHY A. CLARY/AFP/GETTY IMAGES)
Despite big paydays, many National Football League players run into financial trouble after they retire and nearly one in six files for bankruptcy within a dozen years of hanging up their cleats, according to a new analysis. “Players with median-length careers earn about $3.2 million in a few years. If they are forward-looking and patient, they should save a large fraction of their income to provide for when they retire from the NFL,” Kyle Carlson, Joshua Kim, Annamaria Lusardi and Colin F. Camerer wrote in a working paper released this month by the National Bureau of Economic Research. Instead, the researchers found that 15.7% of players file for bankruptcy within 12 years of retiring from the league, with little difference based on career length or earnings. “Having played for a long time and having been a successful and well-paid player does not provide much protection against the risk of going bankrupt,” they wrote.

Read More from: WSJ.com: Bankruptcy Beat

5 days 6 hours ago
Fumbled opportunities? Nearly one in six NFL players goes bankrupt within 12 years of retirement.
(TIMOTHY A. CLARY/AFP/GETTY IMAGES)
Despite big paydays, many National Football League players run into financial trouble after they retire and nearly one in six files for bankruptcy within a dozen years of hanging up their cleats, according to a new analysis. “Players with median-length careers earn about $3.2 million in a few years. If they are forward-looking and patient, they should save a large fraction of their income to provide for when they retire from the NFL,” Kyle Carlson, Joshua Kim, Annamaria Lusardi and Colin F. Camerer wrote in a working paper released this month by the National Bureau of Economic Research. Instead, the researchers found that 15.7% of players file for bankruptcy within 12 years of retiring from the league, with little difference based on career length or earnings. “Having played for a long time and having been a successful and well-paid player does not provide much protection against the risk of going bankrupt,” they wrote.

Read More from: WSJ.com: Bankruptcy Beat

5 days 6 hours ago

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