ABI Blog Exchange

Summary In a 22 page decision released April 20, 2015, Judge Carey of the Delaware Bankruptcy Court provided guidance as to the calculation of lease rejection damages.  Judge Carey’s opinion is available here (the “Opinion”).  The interpretation of 11 U.S.C. Section 502(b)(6) differs depending on the court which is addressing the issue.  This is an issue that the Third Circuit has not ruled on and, as far as I am aware, the first time the Delaware Bankruptcy Court has published an opinion directly addressing the issue.  The dispute: The statute caps a landlord’s rent claim at “the greater of one year, or 15 percent.”  So, what is the 15% referring to: The total amount of payment due under the lease, or 15% of the remaining lease period?  Because many leases include increasing rent payments, the total amount due calculation will typically be larger than the amount due over the next 15% of the lease term.  The quick answer of Judge Carey’s Opinion?  15% refers to the time remaining, not the amount remaining. Background Filene’s Basement (the “Debtor”) had, like countless debtors before, rejected a lease through the bankruptcy process.  In this instance the landlord decided that rather than settling, like most litigants do, this landlord fought the good fight and held out until the Court issued its order.
1 week 3 days ago
Winter is becoming a thing of the past. The snow is melted, the sun is shining, spring is here. Spring is a great time to sell your Lake Geneva real estate. A Lake Geneva home shows better without the cold and snow. You can also take sunny, updated photographs of your home without snow on the ground. Our Lake Geneva real estate lawyer is helping you obtain the best price for your home in 2015 by sharing these top home selling tips.   10 Tips for Selling Your Home in 2015 From Your Lake Geneva Real Estate Lawyer 1. Fix the small things. Fixing the little things around the house makes for a big payoff. Our Lake Geneva real estate lawyer recommend fixing: paint, squeaky doors, cabinet pulls, door handles, burnt light bulbs, leaky faucets, dirty windows, new caulking, etc. 2. Hide your pets. Firstly, do not allow photos of your home that include your pet. Not everyone loves a cuddly dog or cat. Some home buyers may have allergies to pets and immediately be driven away. Some home buyers may see your pet in photographs and feel the house may smell bad or they may consider the expense of cleaning carpets to remove pet hair. Secondly, potential buyers do not want to walk through your home and see dog food or smell kitty litter. Hide the food bowls. Remove pets from your Lake Geneva home during showings and open houses.

Read More from: Wynn at Law, LLC

1 week 3 days ago
Flintkote Co. v. Aviva P.L.C., No. 13-103-LPS, 2015 WL 1405922 (D. Del. Mar. 25, 2015) This Memorandum Opinion stems from a Third Circuit reversal of a Delaware District Court ruling that granted a motion to compel arbitration and dismissed as moot a motion to dismiss or, in the alternative, to transfer filed by Defendant Aviva P.L.C. (“Aviva”).  Because the Third Circuit vacated the Order denying the motion to transfer as moot, Aviva renewed its motion.  Such renewed motion is the subject of this Memorandum Opinion.  In granting the relief requested, Chief Judge Stark ruled that the anticipatory filing exception to the first filing rule applied to the facts of this case and transferred venue from District of Delaware to the District of Northern California. Read More › Tags: Venue

Read More from: Delaware Bankruptcy Insider

1 week 3 days ago
Wednesday in Chicago, Caesars Entertainment Operating Co. will seek to keep a tight grip on its bankruptcy restructuring. The casino operator is asking judge to extend the period of time that its lawyers have to file a reorganization proposal before the field opens up to proposals from other groups. Caesars is asking Judge A. Benjamin Goldgar to extend that plan-filing deadline until Nov. 15. Such requests are common in bankruptcy cases, especially one as complicated as Caesars, which is trying to restructure more than $18 billion in debt. Caesars has already filed a reorganization proposal, but an independent examiner named Richard Davis is now probing the company’s prebankruptcy transactions with non-bankrupt parent company Caesars Entertainment Corp.  His job is to conduct a wide probe into prebankruptcy transactions made between CEOC and its parent. In several lawsuits, creditors have said Caesars entities shifted good assets away from them to benefit its owners, including private-equity firm Apollo Global Management LP. At least seven transactions between 2009 and 2014 have been questioned. Caesars has said the transactions were proper, designed to manage and improve CEOC’s debt load and liquidity.  Most parties want to wait until the report is finished before deciding on the current proposal, the Caesars’ bankruptcy lawyers said.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
Wednesday in Chicago, Caesars Entertainment Operating Co. will seek to keep a tight grip on its bankruptcy restructuring. The casino operator is asking judge to extend the period of time that its lawyers have to file a reorganization proposal before the field opens up to proposals from other groups. Caesars is asking Judge A. Benjamin Goldgar to extend that plan-filing deadline until Nov. 15. Such requests are common in bankruptcy cases, especially one as complicated as Caesars, which is trying to restructure more than $18 billion in debt. Caesars has already filed a reorganization proposal, but an independent examiner named Richard Davis is now probing the company’s prebankruptcy transactions with non-bankrupt parent company Caesars Entertainment Corp.  His job is to conduct a wide probe into prebankruptcy transactions made between CEOC and its parent. In several lawsuits, creditors have said Caesars entities shifted good assets away from them to benefit its owners, including private-equity firm Apollo Global Management LP. At least seven transactions between 2009 and 2014 have been questioned. Caesars has said the transactions were proper, designed to manage and improve CEOC’s debt load and liquidity.  Most parties want to wait until the report is finished before deciding on the current proposal, the Caesars’ bankruptcy lawyers said.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
Startups are always in need of capital, but is there a ‘best’ way to raise money? Or a worst way? Crowdfunding has often been a popular method of raising capital among startups, but what are the most important “need to know’s” before startups move ahead with crowdfunding? The role investors play, regulatory specifics, issues, benefits and due diligence are covered in the “Crowdfunding from the Start-up’s Perspective” webinar. Read more here.
1 week 3 days ago
In light of a recent op-ed about pawnbrokers denied banking services, it's worth reiterating that the FDIC encourages banks to assess individual businesses for risk rather than declining to provide services to entire categories of customers.

Read More from: BankThink

1 week 3 days ago
Valuation plays an outsized role in bankruptcy cases.  At the beginning of a case, it can be outcome determinative in whether a debtor is able to use cash collateral or borrow new money.  Likewise, it is often the lynchpin on which a motion for relief from the automatic stay is granted or denied.  And, it is a central issue in fraudulent transfer and preference cases, which will be the focus of this webinar. Read more here.
1 week 3 days ago
Receiving Wide Coverage ... Sarao's Side of the Story: The London trader accused of triggering the May 2010 stock market "flash crash" denies plotting to manipulate prices by placing and canceling large orders. Navinder Sarao says in past but newly released emails with the British conduct authority that he simply relied on cat-like reflexes to make his moves. He says he might cancel an order because of "a move in one of the other markets thatÂ...

Read More from: BankThink

1 week 3 days ago
With the implementation of the JOBS Act in 2012, securities law is being changed dramatically.  This webinar provides a comprehensive overview of the federal securities regulations.  Topics covered include: basic concepts; the role of federal securities laws and the definition of “security;” jurisdictional questions, and more.  Read more here.
1 week 3 days ago
A former Lehman Brothers star trader secretly recorded several conversations that he says prove Lehman owes him more than $83 million in bonuses for his work done mostly in 2008, even though he received a similar amount when Barclays PLC bought Lehman, The Wall Street Journal reports. (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.”) New Jersey has tapped former bankruptcy judge Donald Steckroth to mediate talks between struggling Atlantic City and groups expected to play a major part in its looming restructuring, including casino operators and police and firefighters’ unions, according to the Journal

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
A former Lehman Brothers star trader secretly recorded several conversations that he says prove Lehman owes him more than $83 million in bonuses for his work done mostly in 2008, even though he received a similar amount when Barclays PLC bought Lehman, The Wall Street Journal reports. (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.”) New Jersey has tapped former bankruptcy judge Donald Steckroth to mediate talks between struggling Atlantic City and groups expected to play a major part in its looming restructuring, including casino operators and police and firefighters’ unions, according to the Journal

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago
On April 30, Weil and the Legal Aid Society, along with The Blackstone Restructuring Group, will be presenting a training on bankruptcy and other alternatives for small businesses in distress. The panel provides a great opportunity to become familiar with the challenges distressed small businesses may face and to network with other professionals interested in the field.  We would like to invite all readers of our blog in the New York area to join us for this panel. Two CLE credits for professional practice/practice management will be offered. Please see below for a more detailed description of the event. Small Businesses in Distress: Bankruptcy and Other Alternatives April 30, 2015, 6:30 PM to 8:30 PM 767 Fifth Avenue, New York, NY 10153 Hosted by Weil, Gotshal & Manges LLP as part of the Legal Aid Society’s Annual Training Program Description
1 week 4 days ago
Henry Callaway was named as a judge with the U.S. Bankruptcy Court for the Southern District of Alabama. Mr. Callaway, who currently works in bankruptcy and litigation at law firm Hand Arendall, will take up his new position in May. He practices in areas including creditors’ rights, consumer finance and shareholder disputes and is a member of the American Bankruptcy Institute. Mr. Callaway is replacing Judge Margaret A. Mahoney, who is retiring from the bench. David L. Barrack and Jeremy R. Johnson have joined the restructuring group at Polsinelli (h/t Law360). Mr. Barrack has experience with bankruptcy, insolvency, corporate restructurings and workouts. He has represented debtors, creditors, bondholders and other parties in industries including health care, energy and real estate. Mr. Johnson has worked with debtors in chapter 11 and chapter 15 and has concentrated on distressed health care. Both Mr. Barrack and Mr. Johnson are shareholders at Polsinelli.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Henry Callaway was named as a judge with the U.S. Bankruptcy Court for the Southern District of Alabama. Mr. Callaway, who currently works in bankruptcy and litigation at law firm Hand Arendall, will take up his new position in May. He practices in areas including creditors’ rights, consumer finance and shareholder disputes and is a member of the American Bankruptcy Institute. Mr. Callaway is replacing Judge Margaret A. Mahoney, who is retiring from the bench. David L. Barrack and Jeremy R. Johnson have joined the restructuring group at Polsinelli (h/t Law360). Mr. Barrack has experience with bankruptcy, insolvency, corporate restructurings and workouts. He has represented debtors, creditors, bondholders and other parties in industries including health care, energy and real estate. Mr. Johnson has worked with debtors in chapter 11 and chapter 15 and has concentrated on distressed health care. Both Mr. Barrack and Mr. Johnson are shareholders at Polsinelli.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
The SEC has announced an open meeting on Wednesday, April 29, 2015, at 10:00 am to consider whether to propose amendments requiring companies to disclose the relationship between executive compensation actually paid and the financial performance of the company. The rulemaking is required under Section 14(i) of the Dodd-Frank Act.
1 week 4 days ago
Banks that use biometric technology should remember to take client and employee privacy concerns seriously. After all, banks have a duty to protect personal information and prevent its potential misuse.

Read More from: BankThink

1 week 4 days ago
Banking regulators will never conclude that regulation is actually hurting community banks until they study the issue and come to that conclusion on their own.

Read More from: BankThink

1 week 4 days ago
Lehman Brothers on Wednesday said former top trader Jonathan Hoffman is seeking “double recovery” on his bonus from 2008, in day one of a trial over whether Lehman owes Mr. Hoffman and three other employees millions in back bonuses. 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.”) A bankruptcy judge Wednesday put the brakes on Optim Energy LLC ’s plan to exit bankruptcy through the sale of its two Texas power plants after a unit of private equity company Blackstone Group LP objected to the deal, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Lehman Brothers on Wednesday said former top trader Jonathan Hoffman is seeking “double recovery” on his bonus from 2008, in day one of a trial over whether Lehman owes Mr. Hoffman and three other employees millions in back bonuses. 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.”) A bankruptcy judge Wednesday put the brakes on Optim Energy LLC ’s plan to exit bankruptcy through the sale of its two Texas power plants after a unit of private equity company Blackstone Group LP objected to the deal, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago

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