ABI Blog Exchange

Parma’s supporters shout slogans during a protest march in Parma, Italy, Feb. 22, ahead of the scheduled Italian Serie A soccer match between Parma FC and Udinese Calcio. The match has been called off because Parma was unable to afford to host the game.
Elisabetta Baracchi/European Pressphoto Agency
American sports teams usually survive and often thrive after bankruptcy, but the same isn’t always true for European soccer clubs. Parma, which plays in Italy’s Serie A, is the latest soccer club to find itself teetering toward possible doom, having canceled its most recent game because it couldn’t afford to pay stewards and security staff. Players have reportedly not been paid this season, and the team is said not to be able to afford water for its practices. The club has a March 19 date set at which the company could agree to go into “controlled administration.”

Read More from: WSJ.com: Bankruptcy Beat

2 days 8 hours ago
Parma’s supporters shout slogans during a protest march in Parma, Italy, Feb. 22, ahead of the scheduled Italian Serie A soccer match between Parma FC and Udinese Calcio. The match has been called off because Parma was unable to afford to host the game.
Elisabetta Baracchi/European Pressphoto Agency
American sports teams usually survive and often thrive after bankruptcy, but the same isn’t always true for European soccer clubs. Parma, which plays in Italy’s Serie A, is the latest soccer club to find itself teetering toward possible doom, having canceled its most recent game because it couldn’t afford to pay stewards and security staff. Players have reportedly not been paid this season, and the team is said not to be able to afford water for its practices. The club has a March 19 date set at which the company could agree to go into “controlled administration.”

Read More from: WSJ.com: Bankruptcy Beat

2 days 8 hours ago
Parma’s supporters shout slogans during a protest march in Parma, Italy, Feb. 22, ahead of the scheduled Italian Serie A soccer match between Parma FC and Udinese Calcio. The match has been called off because Parma was unable to afford to host the game.
Elisabetta Baracchi/European Pressphoto Agency
American sports teams usually survive and often thrive after bankruptcy, but the same isn’t always true for European soccer clubs. Parma, which plays in Italy’s Serie A, is the latest soccer club to find itself teetering toward possible doom, having canceled its most recent game because it couldn’t afford to pay stewards and security staff. Players have reportedly not been paid this season, and the team is said not to be able to afford water for its practices. The club has a March 19 date set at which the company could agree to go into “controlled administration.”

Read More from: WSJ.com: Bankruptcy Beat

2 days 8 hours ago
Foreclosure I think it’s safe to say that the peak of the foreclosure crisis is behind us. Many people have already lost their homes, sold their homes, walked away from their homes or reorganized their debt through chapter 13 bankruptcy. Others have received modification offers from lenders, offers for deeds in lieu of foreclosure, relocation+ Read More The post Extending The Time In Your Home Through Bankruptcy appeared first on David M. Siegel.
2 days 8 hours ago
Authored by Michael S. Waskiewicz and Armando Nozzolillo and Michael S. Waskiewicz and Armando Nozzolillo of Rogers TowersIn the latest chapter of “lien stripping,” the Honorable Judge Erik P. Kimball of the Southern District of Florida, Bankruptcy Court, recently grappled with the issue of whether a debtor can strip a completely unsecured junior mortgage on abandoned property.  In Bodensiek, a creditor held two mortgages on the debtor’s homestead property.  However, the minimal value of the homestead property rendered the creditor’s second mortgage completely under water.  Prior to the debtor filing a motion to strip creditor’s second mortgage, the Chapter 7 Trustee issued a Notice of Abandonment related to the homestead property.

Read More from: Florida Banking Law Blog

2 days 8 hours ago
The federal government requires all potential filers to go through credit counseling before declaring bankruptcy. The purpose of credit counseling is to determine if there are other ways you can resolve your financial problems besides filing under Chapter 7 or Chapter 13.  One of the common alternatives frequently compared against bankruptcy is called “debt consolidation.”  How are these two options different?  Which one is better? Our Harrisburg bankruptcy attorneys explain the pros and cons. How Does Debt Consolidation Work? Before we can compare bankruptcy against debt consolidation, we need to go over what debt consolidation is and how it works. As the name suggests, debt consolidation involves lumping multiple debts together into a single, more manageable debt. The general idea is that most debtors have an easier time handling one debt than trying to balance numerous payments which are all on different schedules and are paid toward different creditors. Debt consolidation has two objectives: to simplify the repayment process for debtors, while simultaneously reducing monthly payments and interest rates.  Essentially, you would be taking out a new loan in order to pay off the debts you have already incurred.

Read More from: Young, Klein & Associates

2 days 8 hours ago
Winding Down. If a corporation’s board of directors decides that the business needs to be wound down, there are a number of legal paths to consider. Determining the best approach is fact-dependent, and the corporation and its board should get legal advice before making a decision. Sometimes a bankruptcy filing is needed, either a Chapter 11 reorganization (perhaps to complete a going-concern sale) or a Chapter 7 liquidation bankruptcy (in which a trustee will be appointed to liquidate the business). In other cases, an assignment for the benefit of creditors might be a good choice. A Delaware Corporate Dissolution. This post takes a high-level look at another, often simpler option: the corporate dissolution.  It assumes that the business is a Delaware corporation, since many corporations incorporate there. The laws of the state of incorporation govern the dissolution process, so it’s important to remember that the process described below will differ if the business is incorporated in another state.
2 days 8 hours ago
The Canadian subsidiary of embattled for-profit education company Corinthian Colleges Inc . has filed for bankruptcy under Canada’s insolvency law after an Ontario education regulator took action against the company’s 14 Canadian campuses. Read the Daily Bankruptcy Review article in 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.”) Following the collapse of yet another deal to sell Atlantic City, N.J.’s defunct Revel Casino Hotel, time may be running out for the resort to find a savior. WSJ has the DBR article here. RadioShack Corp. is defending its auction process to creditors in court, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

2 days 9 hours ago
The Canadian subsidiary of embattled for-profit education company Corinthian Colleges Inc . has filed for bankruptcy under Canada’s insolvency law after an Ontario education regulator took action against the company’s 14 Canadian campuses. Read the Daily Bankruptcy Review article in 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.”) Following the collapse of yet another deal to sell Atlantic City, N.J.’s defunct Revel Casino Hotel, time may be running out for the resort to find a savior. WSJ has the DBR article here. RadioShack Corp. is defending its auction process to creditors in court, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

2 days 9 hours ago
The Canadian subsidiary of embattled for-profit education company Corinthian Colleges Inc . has filed for bankruptcy under Canada’s insolvency law after an Ontario education regulator took action against the company’s 14 Canadian campuses. Read the Daily Bankruptcy Review article in 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.”) Following the collapse of yet another deal to sell Atlantic City, N.J.’s defunct Revel Casino Hotel, time may be running out for the resort to find a savior. WSJ has the DBR article here. RadioShack Corp. is defending its auction process to creditors in court, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

2 days 9 hours ago
The finance and technology industries should take some of the energy they've poured into mobile payments and put it toward making small-dollar loans more affordable.

Read More from: BankThink

2 days 9 hours ago
The Securities and Exchange Commission recently approved a FINRA rule requiring brokerage firms to put in writing their procedures for verifying the accuracy of a broker’s registration Form U4. Under the terms of the new rule, which goes into effect on July 1, brokerage firms will now be required to conduct a search of “reasonably available public records,” on all new hires and registrants. Read more here.
2 days 10 hours ago
Receiving Wide Coverage ... HSBC Sweats in the Spotlight: The hits keep on coming for HSBC. The U.K. bank on Monday announced subpar earnings for 2014 and lowered its financial targets, while chief executive Stuart Gulliver was pummeled with questions about the $7.7 million he opted to hold in a Swiss bank account through a Panamanian company until 2003. Tax experts tell the Times that Gulliver's arrangement was legal, but it's not terrific press for a...

Read More from: BankThink

2 days 10 hours ago
Could getting people to save more money be as easy as changing around the office furniture? Based on Emily Garbinsky's research, the answer is yes.

Read More from: BankThink

2 days 11 hours ago
In re Carroll, 520 B.R. 491 (Bankr. M.D. La. 2014) – A chapter 7 trustee sought to substantively consolidate the bankruptcy estates of individual chapter 7 debtors with the separate bankruptcy estate of their wholly owned limited liability company (LLC).  Only the debtors, … Continue reading →
2 days 12 hours ago
It is often surprising to me how often people are unaware of the fairly high risk of being sued in connection with a chapter 11 bankruptcy case when there is money in the case.  Many times, non-debtor parties’ falsely comfort themselves with the belief they will not be sued because existing management wouldn’t want to ruin a business relationship.  The reality is that in large chapter 11 cases, you are just as likely to be sued by the creditors committee as anyone else as a lender. Bankruptcy, at its most basic, is the attempt to monetize and equitably (and constitutionally) distribute whatever assets exist of the bankrupt entity.  Outside of bankruptcy, the obvious assets are normally the tangible widgets.  Inside of bankruptcy, the causes of action also become value for trade. To understand how a third party lender can be sued by an unknown entity on a cause of action which makes no business sense, a quick review of statutory committees is helpful. Under the Bankruptcy Code a committee of unsecured creditors may be formed to represent the interests of the larger body of unsecured creditors.  Importantly, this committee will have its attorneys’ fees paid by the bankrupt debtor.  This committee, now funded and represented will go about to seek the best recovery for its constituents.  One source of recovery is lawsuits, which are typically unencumbered.

Read More from: Tough Times for Lenders

2 days 18 hours ago
In a 21 page opinion (the “Opinion”) released February 20, 2015, in the Trump Entertainment Resorts, Inc bankruptcy (Case No. 14-12103), Judge Gross, granted the motion of Trump AC Casino Marks, LLC (“Trump AC”) to modify the automatic stay to allow litigation to proceed, which could result in termination of their license with the Debtors.  The Opinion is available here.  Seeking relief from the automatic stay is a topic which frequently appears on this blog.  A couple of posts written by my colleagues that summarize the law are here: Seeking Relief from the Automatic Stay in Delaware How does the “automatic stay” of the bankruptcy code apply to landlords? Background
2 days 19 hours ago
You plan on filing a Delavan bankruptcy case in 2015; however, you never thought about the timing… until now. It’s tax season. Tax season makes you wonder whether you should file your income taxes before or after you file bankruptcy. Let’s take a look at the best scenarios.   Should You File a Delavan Chapter 7 Bankruptcy Before or After Filing Income Taxes? If you are eligible and plan on filing a Delavan Chapter 7 bankruptcy, then you most likely want to file your income taxes before you file bankruptcy. Any tax refund you are expecting back from the IRS will become property of the bankruptcy estate. Unless your income tax refund is exempt, the bankruptcy trustee can confiscate your income tax refund monies and distribute them among your creditors. Speak with your Delavan bankruptcy attorney to obtain more information regarding exemptions.

Read More from: Wynn at Law, LLC

2 days 23 hours ago
Assumption of the lease is permissible even if the terms of the lease expressly prohibit assumption.  Section 365 of the Bankruptcy Code requires a debtor-tenant to meet certain criteria in order to “assume” a lease.  First, and most importantly, the tenant must cure any and all existing defaults, both monetary and non-monetary.  Second, the debtor-tenant must provide “adequate assurance” to the landlord that the debtor will be able to perform under the lease going forward.  The tenant’s obligation to cure defaults includes the payment of late charges or similar charges that arise under the lease.  As discussed in section 8 below,  the landlord may be able to recover attorney’s fees in limited circumstances. The Bankruptcy Code requires the tenant to demonstrate its ability to provide “adequate assurance of future performance.”  Though this term is not defined within the Code, it has generally been interpreted to require the tenant to demonstrate its ability to meet its financial obligations under the terms of the lease going forward.
3 days 53 min ago
This latest installment of our ongoing coverage of the Report of the American Bankruptcy Institute’s Commission to Study the Reform of Chapter 11 discusses the Commission’s proposals regarding plan content, voting, confirmation issues, and exit orders (Report sections VI.E, F, and G). The recommendations are geared toward creating greater efficiencies in the plan process by reducing what the Commissioners view as opportunities for litigation and gamesmanship, and clarifying the permissibility of certain plan provisions and orders that have divided courts. Some of these recommendations, if adopted, would constitute significant changes to the Bankruptcy Code. Today’s post highlights key proposals about plan voting, and a follow up post will discuss other key proposals regarding plan content, plan confirmation, and exit orders. No Accepting Impaired Class for Cramdown
3 days 1 hour ago

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