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In the Boomerang Systems, Inc. bankruptcy proceeding (Delaware Bankruptcy Case No. 15-11729), a formation meeting has been scheduled for Thursday, August 27, 2015 at 10:00 a.m. (ET) at the J. Caleb Boggs Federal Building, 844 King Street, Room 2112, Wilmington, DE 19801.  Click Here for a copy of the Notice of Formation Meeting for Official Committee of Unsecured Creditors issued by the Office of the United States Trustee.  If you want to be considered for Committee membership, you MUST complete a questionnaire and return it to the U.S. Trustee no later than August 25, 2015 at 5:00 p.m. (ET). One way in which creditors can assert their interests is to attend the Formation Meeting and become a part of the creditors’ committee.  The creditors’ committee is one of the most active participants in a corporate bankruptcy, and has access to a significant amount of information not available to normal creditors.  There are, naturally, trade-offs to gaining access to this information (including limitations on a company’s ability to trade in securities of the debtor), but you will be far better informed of what occurs in the bankruptcy proceeding.
3 days 23 hours ago
Puerto Rico is asking the U.S. Supreme Court to review the First Circuit decision that Puerto Rico's Recovery Act is preempted and thus unconstitutional. Here's the petition. In addition to parsing the legal issues, the petition is framed around Puerto Rico's financial emergency, the need for the Supreme Court to step in notwithstanding the lack of circuit split (or even a dissent to the First Circuit ruling). It makes sense that Puerto Rico would challenge a ruling making it harder for the Commonwealth, in a nebulous legal zone, to write laws to solve its problems. The difficulty with the financial crisis framing is that even if (1) the Supreme Court agreed to hear the matter, (2) heard the matter quickly, (3) decided the matter quickly, and (4) actually reversed the First Circuit - a chain of tough "even ifs"  - public corporations in Puerto Rico will not be able to start using the law because another formidable constitutional challenge is still alive: whether the Recovery Act can survive scrutiny under the Contracts Clause. That hotly contested fight would be fact intensive in a way that the preemption dispute was not.

Read More from: Credit Slips

5 days 12 hours ago
In this Nov. 5, 2013, file photo, Jon Bon Jovi performs in concert with his band Bon Jovi on their Because We Can Tour 2013, in Philadelphia.
Owen Sweeney/Associated Press
Vancouver fans of Jon Bon Jovi will still get to see the singer Saturday despite the bankruptcy of a local concert promoter, the Globe and Mail reported. Paper Rain Performances filed for bankruptcy just days before the concert was scheduled to take place at Stanley Park in Vancouver, pulling the plug on the concert with it. But Mr. Bon Jovi’s manager (livin’ on a prayer, no doubt) on Wednesday secured a new concert venue: Rogers Arena. The arena even waived the rental fee and did “everything they possible could to reduce the cost substantially,” Paul Korzilius, Mr. Bon Jovi’s manager, told the Globe and Mail.

Read More from: WSJ.com: Bankruptcy Beat

6 days 5 hours ago
Rapper 50 Cent exited a New York courthouse last month after testifying in a sex tape lawsuit.
Brendan McDermid/Reuters
Though he’s not exactly known for being shy about his wealth, 50 Cent will fight for some financial privacy in court on Wednesday. The 40-year-old rapper, whose real name is Curtis James Jackson III, is fighting a request from a woman who won a $7 million privacy lawsuit over a sex tape and who now wants Mr. Jackson to release additional financial information. Mr. Jackson’s lawyers said they’ve already provided plenty of financial details to Lastonia Leviston, who accused him in 2010 of violating her privacy by posting a sex tape of her online. The posting in 2009 escalated the “rap war” between the rapper and Rick Ross, Ms. Leviston’s ex-boyfriend.

Read More from: WSJ.com: Bankruptcy Beat

6 days 8 hours ago
Payments made by a debtor within 90 days of a bankruptcy petition are generally avoidable as preferences under section 547 of the Bankruptcy Code.  Many exceptions and defenses exist, however, to ensure that creditors are not discouraged from conducting business with companies that may be at risk of filing for bankruptcy.  Section 547(c)(2) creates one such exception, exempting transfers made in the ordinary course of business from avoidance.  In the recent case of Jubber v. SMC Electrical Products Inc. (In re C.W. Mining Co.), the United States Court of Appeals for the Tenth Circuit weighed in on an open question regarding the exception: can a first-time transaction between a debtor and a transferee fall within the ordinary course of business exception?  The court held that it could, relying both on the language of the statute and the policy underlying exceptions to the avoidance power.  Background
6 days 9 hours ago
Prepaid cards appeal to a growing percentage of the population like millennials and other 21st century consumers who want to manage their money without being tied down to bank locations.

Read More from: BankThink

6 days 11 hours ago
John Rogers:
The amount of your debt can control whether or not your are eligible to file Chapter 13 Bankruptcy. To find an experienced bankruptcy attorney to help you make this determination, go to http://www.nacba.org or http://www.abcworld.org .
Originally posted on Kentuckiana Bankruptcy Opinions: (Bankr. E.D. Ky. Aug. 18, 2015) The bankruptcy court grants the trustee’s motion to dismiss the Chapter 13 based on the debtor having secured claims in excess of that allowed under 11 U.S.C. § 109(e). The debtor argued that her schedules, which listed secured debt less than the 109(e) threshold, should control on the issue of her eligibility. The court holds that it may review other items in the record to determine eligibility. For reasons including that the debtor failed to include prepetition interest on her mortgage debt and listed certain debts as unliquidated and contingent when they almost certainly were not, the court finds that the debtor is not eligible for Chapter 13. Opinion below. 2015-08-18 – in re ash Author: Matt Lindblom
6 days 11 hours ago
John Rogers:
If someone owes you money and they file bankruptcy, speak with a bankruptcy attorney immediately to discuss your options. You will likely only have a certain amount of time to make your claim. If you need help finding an experienced bankruptcy attorney, try http://www.nacba.org or http://www.abcworld.org .
Originally posted on Kentuckiana Bankruptcy Opinions: (Bankr. W.D. Ky. Aug. 20, 2015) The bankruptcy court holds that the creditor may not proceed with a damages hearing in state court, as the liability judgment has already been discharged in the bankruptcy. The creditor requests that the court allow her to challenge the dischargeability of the debt, despite the fact that the deadline for filing complaints to determine dischargeability has already passed. The court finds no basis to permit the late challenge. The creditor had notice of the bankruptcy and simply filed to timely file a complaint. Opinion below. 2015-08-20 – in re ausmus Author: Matt Lindblom
6 days 11 hours ago
Wall Street Journal JPMorgan Chase has hired a recently retired general as senior adviser. Gen. Raymond T. Odierno will offer the bank advice on cybersecurity as well as the physical risks involved in operating in a range of countries. The paper reports that Ordierno served in the Persian Gulf and Iraq wars and worked closely with Gen. David Petraeus on the 2007 military surge in Iraq. ...

Read More from: BankThink

6 days 12 hours ago
The federal government reached a settlement with Altegrity Inc. worth at least $30 million over a whistleblower lawsuit, Daily Bankruptcy Review reports 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.”) Caesars Entertainment Operating Co.’s creditors want a stake in the parent company in exchange for endorsing the casino unit’s bankruptcy plan, WSJ reports. The 8,000-resident town of Hillview, Ky., is the first to file for bankruptcy since Detroit, Bloomberg reports. A discussion piece in the Huffington post looks at Puerto Rico’s private sector calling on Congress for the allowance of chapter 9.

Read More from: WSJ.com: Bankruptcy Beat

6 days 13 hours ago
Poorly paid tellers get a boost from Amalgamated Bank; Nasdaq might be getting a female CEO; parent-friendly business trips as a new PE recruitment tool, and Fidelity's Kathleen Murphy on the benefits of mentoring. Plus, motorcycles, sushi chefs and Stephen Colbert.

Read More from: BankThink

1 week 7 hours ago
Some time ago you filed a bankruptcy and received a discharge.  You owned a home at the time your bankruptcy was filed and have continued paying on the mortgage.  Now you are trying to a refinance of your mortgage but are told that “because you did not reaffirm your mortgage during the bankruptcy your credit report does not show any payments”.   There are two issues going on here. First, by filing for bankruptcy your obligation to pay most debts, such as your mortgage, was discharged (meaning that the creditor cannot force you to pay the debt).  Of course, if you want to keep your home you need to pay the mortgage.  The mortgage lender will probably report your mortgage as “discharged in bankruptcy”.  The mortgage lender may also choose not to report any payments make after your bankruptcy was filed.  You ask your mortgage lender to report your post-bankruptcy payments, but they refuse because the “debt was discharged in bankruptcy”.   They are correct, the debt was discharged in bankruptcy and The Fair Credit Reporting Act (FCRA) does not require creditors to report to the credit reporting agencies.   Therefore, the mortgage lender is not required to report that you are still making payments.
1 week 8 hours ago
In this excerpt from Legal Action, Attorney David M. Siegel talks about the creation of the automatic stay in bankruptcy.  Some debts are eliminated whereas others are not.  It all depends upon the type of debt and the type of bankruptcy. Interviewer: What happens if I’ve got a garnishment or a threat of garnishment or+ Read More The post Bankruptcy & The Automatic Stay appeared first on David M. Siegel.
1 week 8 hours ago
Today we write on relatively recent decision on remand in the Chesapeake Energy Corporation early redemption litigation we previously covered.  In short, the United States District Court for the Southern District of New York held that the payment terms of an indenture prevail over equitable arguments, and if notes were redeemed at a time when a make-whole would be owed under the terms of an indenture, the make-whole was owed – even if the issuer didn’t mean to trigger it. 
1 week 9 hours ago
There's nothing like a natural disaster to make people realize how important insurance is to the banking industry.

Read More from: BankThink

1 week 9 hours ago
There's nothing like a natural disaster to make people realize how important insurance is to the banking industry.

Read More from: BankThink

1 week 9 hours ago
Our memo on the court’s decision upholding its ruling on the SEC’s conflict minerals disclosure is here. EY's recent analysis of the second year of conflict minerals reporting concludes that companies are reluctant to conduct additional due diligence amidst an uncertain regulatory environment, so that disclosure did not change much from the prior year. 
1 week 10 hours ago
Series: Newbie Litigator School You have the evidence that you need to prove your case. Now, how do you get it admitted? Our panel will explore evidentiary foundations related to authentication of records, competency and credibility of witnesses, hearsay rules and exceptions, privilege issues, and opinion evidence. We’ll also discuss how motions in limine can help to keep evidence in or out and streamline your trial. Read more here.
1 week 11 hours ago
Before it dissolves in late September, a bipartisan House task force should take a broader look at de-risking, changing technologies, cybersecurity and the private sector's role in deterring terrorism financing.

Read More from: BankThink

1 week 11 hours ago
Receiving Wide Coverage ... Fed Hesitates Over Rate Hike: Minutes from the latest Federal Reserve meeting suggest officials are torn over when to go ahead with a rate increase. Some are worried about the slow pace of inflation, which remains well below the central bank's 2% target. China's stock-market declines and the effects of a strong U.S. dollar are also of concern. On the other hand, a substantial number of Fed officials think a rate hike...

Read More from: BankThink

1 week 12 hours ago

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