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Bankruptcy reform in Italy will make it much easier for banks – or distressed debt buyers – to seize and sell properties or other collateral. That should speed up sales of bad loans and so – slowly – lift banks’ lending capacity. However, it could also be worth billions of euros to banks from day one for a simple financial reason: present value discounting. The prospect of getting money back sooner increases the value of a bad debt today. Barclays reckons this is worth more than €4 billion to six big Italian banks. UniCredit and Intesa would see the biggest nominal gain on bad loans, at more than €1 billion each according to Barclays. However, there would be more benefit to capital ratios at smaller banks Banco Popolare and Monte Dei Paschi Di Siena: each would see core equity ratios improve almost one percentage point. Mediobanca is more skeptical about how much benefit banks will be able to recognize without robust evidence that recoveries are quickening. But it still sees a near-term capital boost from more loans sales and lower credit losses with shorter recovery times.

Read More from: WSJ.com: Bankruptcy Beat

1 week 2 days ago
Bankruptcy reform in Italy will make it much easier for banks – or distressed debt buyers – to seize and sell properties or other collateral. That should speed up sales of bad loans and so – slowly – lift banks’ lending capacity. However, it could also be worth billions of euros to banks from day one for a simple financial reason: present value discounting. The prospect of getting money back sooner increases the value of a bad debt today. Barclays reckons this is worth more than €4 billion to six big Italian banks. UniCredit and Intesa would see the biggest nominal gain on bad loans, at more than €1 billion each according to Barclays. However, there would be more benefit to capital ratios at smaller banks Banco Popolare and Monte Dei Paschi Di Siena: each would see core equity ratios improve almost one percentage point. Mediobanca is more skeptical about how much benefit banks will be able to recognize without robust evidence that recoveries are quickening. But it still sees a near-term capital boost from more loans sales and lower credit losses with shorter recovery times.

Read More from: WSJ.com: Bankruptcy Beat

1 week 2 days ago
The U.S. economy performed better than previously estimated in the first quarter of the year, revised government numbers show, providing more evidence that the economy is on a solid track in 2015. Gross Domestic Product, the measure of goods and services produced across the economy, decreased by an annual rate of 0.2 percent [PDF] in the first quarter of 2015, the Commerce Department said Wednesday. The government initially reported that first-quarter GDP dropped 0.7 percent. Read more here.
1 week 2 days ago
The answer to our title question is, in our opinion, nobody should invest in seed-stage companies that raise capital under Regulation A+. This new securities exemption, based on Title IV of the JOBS Act of 2012, is structured primarily for growth- and later-stage companies. Prominent securities lawyers agree with us on this, but I’m going to present a dissenting opinion below, because we just don’t know for certain how the market will react and adjust to this new exemption. Read more here.
1 week 2 days ago
Which woman would KeyCorp's Beth Mooney or Citi's Suni Harford put on the new $10 bill? See the top picks from some of our favorite women in banking.

Read More from: BankThink

1 week 2 days ago
Former JPMorgan Chase executive Heidi Miller was added to the board at M&A services provider SRS Acquiom. Before she retired, Miller was a fixture in American Banker's Most Powerful Women rankings from 2003 to 2010 and topped the list from 2007 to 2009.

Read More from: BankThink

1 week 2 days ago
A recent decision by the Seventh Circuit Court of Appeals will make it much more difficult for debtors to get a bankruptcy discharge when they have previously lied or failed to give required information during a prior post-judgment collection proceeding. … Continue reading →
1 week 2 days ago
The growing popularity of impact investing has led to a raft of new disclosure rules. The problem is that using the SEC to monitor companies' CEO pay policies and use of "conflict minerals" decouples the government agency's authority from its area of jurisdiction.

Read More from: BankThink

1 week 2 days ago
A number of class-action lawsuits allege that investment advisors breached fiduciary duty by failing to recommend the least expensive products. But both trust law and investment theory acknowledge that responsible advisors take other factors into consideration.

Read More from: BankThink

1 week 2 days ago
Breach or termination?  In most cases involving the rejection of an unexpired lease where the debtor is the lessee, whether a rejection constitutes merely a “breach,” as stated in section 365(g) of the Bankruptcy Code, or a “termination” is largely academic – the debtor vacates the premises, and the lessor files a prepetition claim for rejection damages. The debtor and its landlord may argue about the magnitude of the claim or the effective date of rejection, but “termination” of the lease rarely is in dispute.  The distinction between breach and termination may be important, though, when the debtor has sublet part of the leased premises, and the court must determine the effect of rejection on the subtenant.  It is in this context that Judge Walrath of the United States Bankruptcy Court for the District of Delaware recently held in In re Overseas Shipholding Group, Inc. that rejection and vacating the premises constitutes a breach, but not termination, of an unexpired lease.
1 week 2 days ago
European Pressphoto Agency
Salus Capital Partners LLC is pressing ahead with a bid to convert RadioShack Corp .’s chapter 11 case into a shoestring chapter 7 that would oust teams of lawyers and advisers and replace them with a trustee. 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 federal judge said Tuesday that Education Management Corp.’s debt restructuring violated the rights of bondholders that didn’t support the deal, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 2 days ago
European Pressphoto Agency
Salus Capital Partners LLC is pressing ahead with a bid to convert RadioShack Corp .’s chapter 11 case into a shoestring chapter 7 that would oust teams of lawyers and advisers and replace them with a trustee. 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 federal judge said Tuesday that Education Management Corp.’s debt restructuring violated the rights of bondholders that didn’t support the deal, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 2 days ago
European Pressphoto Agency
Salus Capital Partners LLC is pressing ahead with a bid to convert RadioShack Corp .’s chapter 11 case into a shoestring chapter 7 that would oust teams of lawyers and advisers and replace them with a trustee. 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 federal judge said Tuesday that Education Management Corp.’s debt restructuring violated the rights of bondholders that didn’t support the deal, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 2 days ago
According to a filing by Nabors, four directors received less than a majority of the shares voted (or withheld) and tendered their resignations, in accordance with the company’s majority vote policy. After considering the structure and needs of the board and the company and the contributions of the directors, especially in the strategic review process that included an important merger transaction recently, the board decided to reject the resignations.  
1 week 2 days ago
Receiving Wide Coverage ... An Uneven Recovery: Home prices are appreciating in wealthier areas, but values in poorer towns continue to lag behind, the Wall Street Journal reports. In the working-class suburb of Lithonia, Ga., for example, 54% of homeowners are underwater; the same is true of 15% of homes worth less than $200,000 nationwide, compared to just 6% of homes worth more than $200,000. One way to help struggling homeowners could be to slash the...

Read More from: BankThink

1 week 2 days ago
Bankruptcy Proofing Your Contracts: A Summary of Bankruptcy Protection Devices Bankruptcy Proofing Contracts| The never-ending quest for suppliers of credit, goods and services is to create the contracts and procedures that will insulate them from the consequences of bankruptcy filings by the counterparties to their agreements. This article touches on many of the methods and concepts that can be used by general and outside counsel to minimize the negative effects of bankruptcy on your contracts. The post Bankruptcy-Proofing your Contracts? appeared first on Culhane Meadows PLLC - Chapter 11 Business Bankruptcy Attorneys.

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

1 week 2 days ago
This is the next post in Plan Proponent’s series on the confirmation-related recommendations in the ABI Commission Report (and, in particular, its Exiting the Case piece).We’ve switched over to Section F of the Report regarding “Plan Voting and Confirmation Issues.” Subsection 3, the focus of this post, addresses “Designation of Voting Rights.” Background Under Section 1126(e) of the Bankruptcy Code, on the request of a party-in-interest and after notice and a hearing, the court may “designate any entity whose acceptance or rejection of [a Chapter 11] plan was not in good faith or was not solicited or procured in good faith or in accordance” with the requirements of Chapter 11. In other words, the court may disqualify votes that were not made in good faith. The requesting party has a heavy burden of proof. Although self-interest, alone, is not enough, courts often find “bad faith” when a claimant: 
  • Attempts to obtain a personal advantage not available to other creditors in its class;
  • Has an “ulterior motive” (e.g., pursuit of collateral or competitive advantage unrelated to its claim);
  • Acts inconsistently with protecting its self-interest as a creditor;

Read More from: Plan Proponent

1 week 2 days ago
Deirdra Renee Gause v. Citifinancial Services, Inc. (In re Deirdra Renee Gause), 525 B.R. 35 (Bankr. M.D. N.C. 2014) – A chapter 13 debtor sought a court determination that a mortgage loan was unsecured because there was a small typo in her … Continue reading →
1 week 2 days ago
I've been a skeptic for some time about claims that we have a student loan "crisis" in the United States. For individuals mired with student loan debt, it is very much a crisis, of course.  But my reluctance to term growing levels of student loan debt a crisis reflects the fact that student loan debt is highly concentrated within the population and is generally structured in a way that does not create sharp liquidity crises:  long (and often deferrable) maturities, no sharp repayment shocks, and often offers established repayment and forgiveness programs. (This is more true of government loans than private loans.) And, while student loan debt is growing rapidly, it is still only about a 9th of the size of the mortgage market. All of this has kept the student loan kettle from boiling over.  

Read More from: Credit Slips

1 week 3 days ago
Students wait outside Everest College on April 28 in Industry, Calif., hoping to get their transcriptions and information on loan forgiveness and transferring credits to other schools.
Christine Armario/Associated Press
Only a fraction of former students are likely to file a claim in Corinthian Colleges Inc.’s bankruptcy case, according to a law firm representing them, as students armed with little information face numerous administrative tasks to recoup losses. “If the process goes as it is, maybe 6% of students will file the appropriate papers,” said Mark Rosenbaum of Public Counsel, which is one of the law firms representing students in Corinthian’s bankruptcy case. Any of the 81,000 former Corinthian students who believe they were defrauded by the schools, which include Everest, Heald and WyoTech campuses, are eligible to submit claims to the bankruptcy court. The form, known as a proof of claim, would make students eligible to participate in any recovery lawyers obtain on behalf of students if verified by the bankruptcy court. Students have until July 20 to complete the forms, or they could forfeit their right to any recovery in Corinthian’s bankruptcy case.

Read More from: WSJ.com: Bankruptcy Beat

1 week 3 days ago

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