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In re Cimarron Group, Inc., 545 B.R. 646 (Bankr. D. Mont. 2016) – A real estate broker filed a proof of claim in a chapter 7 bankruptcy contending that it was owed a commission based on a pre-bankruptcy listing agreement. … Continue reading

2 weeks 4 days ago

Map of SlovakiaA recent decision of the Slovak Courts suggest that if main proceedings have been opened in one member state and the debtor has assets in Slovakia, the insolvency practitioner in the main proceedings must act quickly and sell those assets before secondary proceedings are opened in Slovakia, otherwise he runs the risk of losing the assets to the secondary estate. Legal title to the assets must have passed to the buyer before the secondary proceedings are opened; it is not enough just for contracts to have been exchanged. If title has not passed when the secondary proceedings are opened, then the subsequently appointed Slovak trustee must ratify the transfer to avoid its validity being challenged in the future.

Timeline

18 November 2008: Restructuring proceedings are opened in France for Key Plastics Slovakia, s.r.o. (“Key Plastics”).

29 May  2009: Decision made to sell all Key Plastics’ assets to Plastique Du Val Loire (“Plastique”). We understand that the parties agreed a framework sale plan but did not actually sign a contract for sale.

1 June 2009: Plastique is granted the right to use Key Plastics’ assets and Key Plastics ceases trading.

Read More from: eSQUIRE Global Crossings

2 weeks 4 days ago

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A bankruptcy judge for the Eastern District of California sanctioned attorney Pauldeep Bains for filing a bankruptcy petition signed with digital signatures.  (See In re Mayfield, Case #16-22134).

The attorney sent completed bankruptcy documents to the debtor to sign via a digital signature service called  DocuSign.  Bankruptcy judge Robert Bardwil imposed sanctions for violations of bankruptcy rule 9004-1(c)(1)C) & (D).  Those rules state the following:

(C) The Use of “/s/ Name” or a Software Generated-Electronic Signature.  The use of “/s/ Name” or a software-generated electronic signature on documents constitutes the registered user’s representation that an originally signed copy of the document exists and is in the registered user’s possession at the time of filing.

2 weeks 4 days ago

The DAO heist and subsequent reversal of funds on the Ethereum blockchain demonstrate why developers and miners of public blockchains should have more accountability.

Read More from: BankThink

2 weeks 5 days ago

In re City Sports, Inc., No. 15-12054 (KG), 2016 WL 4190090 (Bankr. D. Del. Aug. 4, 2016)

In what the Bankruptcy Court deemed a purely academic issue given the circumstances of the City Sports bankruptcy cases, Judge Gross held that unredeemed gift cards are not entitled to priority status, and instead, are properly classified as general unsecured claims.  In so doing, Judge Gross rejected and disagreed with a previous holding of the Delaware Bankruptcy Court wherein the court found that gift cards fall under the definition of “deposit” and accorded them priority status under the Bankruptcy Code.  See In re WW Warehouse, Inc., 313 B.R. 588, 592 (Bankr. D. Del. 2004) (Rosenthal, J.).  This lengthy Opinion dissects the plain meaning of Bankruptcy Code section 507(a)(7) and related case law before delving into the legislative history for further support. Read More ›

Read More from: Delaware Bankruptcy Insider

2 weeks 5 days ago

At best, the proposal to restore Glass-Steagall is outreach to Bernie Sanders supporters. But at worst, it suggests the GOP candidate isn't as anti-regulation as he claims to be.

Read More from: BankThink

2 weeks 5 days ago

James EzzellIn my last blog post, I gave a quick rundown on a few of the services that the Social Security Administration (SSA) provides to individuals and the numbers associated with them.

Again, the SSA has broken down these and other associated figures in detail on its website for those who are interested.  Overall, some 10 million plus Americans are drawing SSA benefits of one type or another these days

Now, how does that translate to those of us who are living in Alabama and receiving benefits?

Read More from: Bonds & Botes, P.C.

2 weeks 5 days ago

Receiving Wide Coverage ...

Barclays settles again: Barclays Bank agreed to pay $100 million to settle charges by 43 states and the District of Columbia that it tried to manipulate the London interbank offered rate thereby defrauding government entities and nonprofits out of millions of dollars. The settlement comes roughly four years after the British bank paid $450 million to settle similar claims brought by federal and British authorities. Wall Street Journal, New York Times ...

Read More from: BankThink

2 weeks 5 days ago

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By: Donald L. Swanson

The first of my three articles on In re Smith, 524 B.R. 689 (Bkrtcy.S.D.Tex. 2015), quotes the Judge’s arguments for opposing mediation. Some of those arguments seem off-base, as I noted in Part 1.

Mediator as Professional

However, the Judge addresses another issue in that case on which his ruling is more main-steam.  He rules that a mediator is a “professional person” under § 327(a) and Rule 2014(a), whose employment must be approved by the Court before being paid by the bankruptcy estate.

Here’s what the Judge says on this mediator-as-a-professional issue:

–This Court prohibited the parties from going forward with their scheduled mediation because the Trustee failed to obtain prior approval to retain ex-Judge Clark as a mediator pursuant to 11 U.S.C. § 327(a).

–Commentators are divided on whether mediators are “professional persons” governed by § 327(a) and Rule 2014(a).

Read More from: Mediatbankry

2 weeks 5 days ago

Businessman climbing on wooden ladder to reach cloud houseUnfortunately that is not the question for many young (and even not so young) aspiring UK homeowners who are struggling to get their feet on the property ladder and buy their own home in the current market.

It seems that the UK as a nation is obsessed with home ownership and that first rung on the property ladder symbolises stability, success and achievement (with the small matter of a 25 year mortgage). However, across the country home ownership has seen a sharp decline with the data from the government’s English House Survey showing that the total number of first time buyers has significantly fallen in the last 10 years, because that first rung on the ladder is out of reach for many people. The Resolution Foundation have estimated that English home ownership now sits at just 63.8% – taking home ownership back to levels last seen in 1986.

The decline in home ownership has arrived hand in hand with the rise of the private rental market. The on-going boom in the buy to let market has supported the buoyancy in the house price market which makes it that much harder for aspiring first time buyers.

Read More from: eSQUIRE Global Crossings

2 weeks 5 days ago

The biggest change in banking in the last 60 years is the shift in balance sheets from business lending to real estate finance and therefore more risk tied to volatile real estate prices.

Read More from: BankThink

2 weeks 6 days ago

New Delaware Chapter 11 Filings – Roadhouse Holding Inc. et al.

2 weeks 6 days ago

Don Lawson KnoxvilleFor the first time in nearly forty years, the federal government is preparing to strengthen the rules that regulate how consumer debts are collected.  On Thursday, the Consumer Financial Protection Bureau (CFPB) announced its intention to significantly overhaul the rules governing debt collectors.

New Rules Governing Debt Collectors

Under the newly proposed rules, debt collection companies will have to more fully document the debt they are trying to collect, make it clear how a consumer can dispute the debt, and observe state statutes of limitations that bar them from legally pursuing older debts.  These are all safeguards that, according the CFPB, that debt collectors routinely ignore.

The rules would also stop the repeated harassment of consumers.  Collectors would be barred from trying to contact people more than six times in a week. And, after a debtor dies, the collectors would have to wait 30 days before contacting family members about paying the debt.

Read More from: Bonds & Botes, P.C.

2 weeks 6 days ago

With supervisory pressures continuing to mount, a piecemeal approach to handling banksÂ' regulatory demands is costly and ineffective.

Read More from: BankThink

2 weeks 6 days ago

Receiving Wide Coverage ...

Trump taps bankers: GOP presidential nominee Donald Trump announced his economic team ahead of a major economic speech in Detroit Monday. The 13-member group is heavily weighted with developers, hedge fund managers and investment bankers, including hedge-fund billionaire John Paulson and Thomas Barrack, founder of Colony Capital. Many have done business with Trump previously. Notably absent are people from Silicon Valley, academia or economics. But there is at least one community banker...

Read More from: BankThink

2 weeks 6 days ago
One challenge in confirming a chapter 11 plan is finding an impaired accepting class without counting votes of insiders as required by 11 U.S.C. Sec. 1129(a)(10).   A new opinion from the District Court of Arizona makes that job easier in cases with jointly administered debtors.   In re Transwest Properties, Inc., 2016 U.S. Dist. LEXIS 102575 (D. Ariz. 6/22/16).  
The Transwest case involved five cases that were jointly administered but not substantively consolidated.    The organizational structure consisted of a holding company, two mezzanine companies and two operating companies.   The debtors proposed a plan in which the mezzanine debtors would be dissolved and the operating companies would be owned by an investor contributing new capital under the plan.    The principal secured creditor (Lender), which had acquired the mezzanine debt during the case, voted against the plan.   Lender argued that because it held the only claim in the mezzanine debtor cases that the plan could not be confirmed under section 1129(a)(10).   The bankruptcy court approved the plan.   Lender appealed.    On the first appeal, the district court dismissed the case as equitably moot.   The Ninth Circuit reversed and sent the case back to the district court.
3 weeks 5 hours ago
Posted by Kathy Bazoian Phelps

    Below is a summary of the activity reported for July 2016. The reported stories reflect: 7 guilty pleas or convictions in pending cases; over 21 years of newly imposed sentences for people involved in Ponzi schemes; at least 3 new Ponzi schemes worldwide; and an average age of approximately 51 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. And please remember that I am just relaying what’s in the news, not writing or verifying it.

Read More from: The Ponzi Blog

3 weeks 1 day ago

SJ Magazine in South Jersey recently recognized Joel R. Spivack as one of the “Top Attorneys Making Their Mark” in New Jersey. This is Joel Spivack’s second consecutive year with the top attorney honor from SJ Magazine and his fourth overall.

For its August 2016 issue, SJ Magazine conducted an annual survey of South Jersey attorneys and asked some of the most respected members of the NJ legal community to provide the names of their peers who have made an impressive and lasting mark in the legal field.

Joel Spivack’s presence on the list of South Jersey’s difference-making attorneys is a great honor. Mr. Spivack prides himself on being highly respected by his peers and his clients. In fact, the greatest compliment an attorney can receive is the referral of a friend, family member, colleague, or associate.

Joel Spivack’s recognition by SJ Magazine as a top South Jersey attorney adds to his impressive credentials as a bankruptcy and debt relief attorney:

3 weeks 2 days ago

Attorney Ed WoodsYesterday, the Consumer Financial Protection Bureau (CFPB) issued a final rule designed to help struggling mortgage borrowers. The new rule amends the 2013 Mortgage Rules under the federal Real Estate Settlement Procedures Act and the federal Truth in Lending Act. Both of these laws exist to, among other things, establish standards for the mortgage lending industry and to provide important legal protections for consumers. The 2013 Mortgage Rules were intended to address many of the mortgage lending and servicing abuses and issues that came out of the recent mortgage crisis. The new rule will clarify and revise the 2013 rules.

Read More from: Bonds & Botes, P.C.

3 weeks 2 days ago

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