ABI Blog Exchange

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
1 week 2 days ago
It is with great pleasure that I welcome Professor Jay L. Westbrook of the University of Texas as a guest blogger for Credit Slips. To people in the bankruptcy community, Professor Westbrook needs no introduction. He is a leader in both international bankruptcy and empirical studies of bankruptcy. The phrase "see Sullivan, Warren & Westbrook" is often the cite for any fact we need to know about the bankruptcy system. There is nobody I know who does not think the world of him, both professionally and personally. We have hoped for many years that he would take a turn at Credit Slips, and we are glad the time has finally come. Welcome to Credit Slips, Jay!

Read More from: Credit Slips

1 week 2 days ago
A Single Point of Entry (SPOE) sounds like the route of a returning astronaut or perhaps a building’s security plan or even a sex guide, but actually it is the FDIC’s proposal for saving the financial system when a giant financial institution strikes out on the derivatives market or discovers it has a school of London Whales. SPOE is important because the FDIC and the Bank of England have agreed on it as the best approach to a global resolution of a failing SIFI, the polite term for a TBTF bank. That agreement is crucial, because the largest banks can only be resolved on a global basis.

Read More from: Credit Slips

1 week 2 days ago
More than half of the 64 investors who responded to a survey conducted by the Stanford Rock Center for Corporate Governance, RR Donnelley and Equilar between September and December 2014, complained that proxy statements are too long.  
1 week 2 days 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

1 week 2 days ago
   The Ninth Circuit in In re Davis, 2015 WL 662001, ___ F.3d ___ (9th Cir., 2015) found that a debtor was ineligible for relief under chapter 12 as the total debt exceeded the debt limit at the time the case was filed of $3,792,650.  In making this determination, the court found that the unsecured portions of claims secured by real estate is counted toward the debt limit, despite a prior chapter 7 discharge as to such debts.   The debtor owned three parcels of real estate in California: a 110 acre ranch in Paso Robles, a residence in Cayucos, and a triplex in Paso Robles.  The value of these properties totaled $1.6 million, but the total amount owed on the deeds of trust and lines of credit totaled $4.1 million per the debtors schedules.   §101(18)(A) limits the amount of aggregate debt a debtor may have and still qualify for chapter 12.  The issue is the definition of debt.   Debt is  liability on a claim, and claim is defined in 11 U.S.C. §101(5) as(A) right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured; or(B) right to an equitable remedy for breach of performance if such breach gives rise to a right of payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured, or unsecured.  The Ninth Circuit noted the decision in Johnson v.

Read More from: Tampa Bankruptcy

1 week 2 days ago
There's nothing wrong with big banks gaining market share because they offer the products and services that customers want. But there's a problem when big banks can beat off their smaller rivals with a club fashioned by legislators and regulators.

Read More from: BankThink

1 week 2 days ago
Wayne Parry/Associated Press
A bankruptcy judge in Delaware Friday gave the green light to a lawsuit by Donald and Ivanka Trump that seeks to reclaim the Trump name from the troubled Trump Taj Mahal casino in Atlantic City. 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 Friday approved the sale of the assets of Dendreon Corp ., a troubled cancer drug maker, to Valeant Pharmaceuticals International Inc. for $495 million, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 2 days ago
Wayne Parry/Associated Press
A bankruptcy judge in Delaware Friday gave the green light to a lawsuit by Donald and Ivanka Trump that seeks to reclaim the Trump name from the troubled Trump Taj Mahal casino in Atlantic City. 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 Friday approved the sale of the assets of Dendreon Corp ., a troubled cancer drug maker, to Valeant Pharmaceuticals International Inc. for $495 million, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 2 days ago
Wayne Parry/Associated Press
A bankruptcy judge in Delaware Friday gave the green light to a lawsuit by Donald and Ivanka Trump that seeks to reclaim the Trump name from the troubled Trump Taj Mahal casino in Atlantic City. 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 Friday approved the sale of the assets of Dendreon Corp ., a troubled cancer drug maker, to Valeant Pharmaceuticals International Inc. for $495 million, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 2 days ago
Bitcoin's premise is that an open-source computer protocol could support a new global currency, without reliance on the centralized power of banks and governments. But trusting a computer protocol, without human governance, doesn't make sense. As it stands, bitcoin's governance has a long ways to go before institutions would rely on this innovative but flawed currency as a store of value.

Read More from: BankThink

1 week 2 days ago
Wall Street Journal Dark clouds are hovering over the effort to amend Dodd-Frank and other bank regulations, in some measure because the new GOP leadership on Capitol Hill is trying to make changes beyond what banks have asked for. At a recent meeting at a Washington hotel, according to anonymous sources, Sen. Richard Shelby, R-Ala., reiterated his stance that he wants to axe the Consumer Financial Protection Bureau's independent funding stream; and Rep. Jeb Hensarling, R-Texas,...

Read More from: BankThink

1 week 2 days ago
In light of dramatic developments in oil pricing, we asked Jason Stevens of Sprott Global to sit with us and explain what is going on. Stevens weighs in on factors that could explain oil prices: supply (Saudi Arabian policy, fracking), dollar strength v. gold, and anticipated world commercial activity, as well as the accuracy of oil price forecasts made in the principal organs of the financial press. Read more here.
1 week 2 days ago
When you sign a promissory note for a mortgage loan, you agree to pay back the money borrowed in installments over a set period of time. New Jersey has a statute of limitations on mortgage foreclosure complaints filed by lenders. If the bank fails to complete the foreclosure before the statute of limitations runs out, […]
1 week 2 days ago
The rift in the bankruptcy universe created by Viegelahn v. Frost (Matter of Frost), 744 F.3d 384 (5th Cir. 2014) continues to widen, drawing more exemptions into its vortex in seeming disregard of Supreme Court precedent.   The latest opinion to come down is  In re Hawk, 2015 Bankr. LEXIS 309 (Bankr. S.D. Tex. 1/30/15) which holds that the Debtor in a chapter 7 proceeding forfeited his IRA exemption when he liquidated the account after the deadline to object had expired.    The Debtors filed their chapter 7 proceeding on December 15, 2013.   On this date, they held an IRA in the amount of $164,902.   Over the period from December 11, 2013 to July 14, 2014, the Debtors withdrew the funds from the IRA.
1 week 3 days ago
I've been waiting for an appealing topic to discuss, and of course, John Oliver and RadioShack ("RSH") presented the perfect opportunity. I love John Oliver, as I do almost everyone who comes from the Jon Stewart camp. When RadioShack finally filed for Chapter 11 protection, John Oliver did this bit to remind us all of the once venerable company's history: Like Mr. Oliver and most others who live in the U.S., I don't find it surprising that RadioShack filed for bankruptcy. What I do find surprising, however, is that it took so long. I don't mean to be glib with the title of this post, but really, how did this company stay afloat after all these years of underperformance? And is there something to be emulated by the survival of a concept that many deemed obsolete so long ago?Just a quick recap from WSJ: RadioShack filed for bankruptcy on February 5th. Senior lender Standard General will acquire between 1500-2400 stores and may strike a deal with Sprint to allow the telecom company to operate up to 1750 of them.
1 week 4 days ago
This installment of the Weil Bankruptcy Blog’s series on the ABI Commission Report is the second of two posts that address the Commission’s recommendations relating to postpetition financing.  This post covers the Commission’s recommendations with respect to certain controversial terms in postpetition financing agreements and the timing of approval for certain other financing terms (Sections IV.B.2 and IV.C.1 of the report), while the previous post covered the Commission’s recommendations with respect to adequate protection (Section IV.B of the report).  Postpetition Financing – Controversial Terms
1 week 5 days ago
In Episode 24 of Accredited Investor Markets Radio, Brendan Ross of Direct Lending Investments and host Chris Cahill discuss how Direct Lending Investments’ fund pools high-yields, 6-18 month business notes and what approaches may help diversify and mitigate risks in the pool. Mr. Ross also comments on peer-to-peer lending in general, including how, and why, the investment method attracts borrowers once served by community banks. Additionally, the discussion touches on what the consequences may be for P2P in a new period of severe financial distress.     You can learn more about Brendan Ross and Direct Lending Investments here.   Or you can find him here: Twitter: @brendan_ross LinkedIn Facebook YouTube     About Brendan Ross   Brendan Ross is the President of Direct Lending Investments LLC, the general partner of the oldest and largest short-term, high-yield, small business loans fund. An expert in alternative assets, Brendan has directed the purchase of more P2P-originated U.S. small business loans than any other institutional investor. Previously, Brendan was a turnaround CEO and ran a number of companies, including ReserveAmerica and Fanfare Media Works.
1 week 5 days ago
This undated file photo provided by Hilton Hawaiian Village Beach Resort & Spa shows Duke Kahanamoku Beach in Waikiki, Hawaii.
Associated Press
Hawaii’s Hilo Hattie stores have filed for bankruptcy with the hope of surviving as one of the island’s popular spots for tourists to buy travel trinkets and souvenirs. The struggling chain, which recently closed three of its seven stores, filed for bankruptcy protection on Thursday with $2.2 million worth of inventory. That inventory includes the quintessential Hawaiian floral-printed shirt, generously draping muumuus and an array of macadamia nut-inspired things like this tin of vanilla/macadamia nut-flavored cigars. (The clothing section even sells matching apparel sets so everyone in the family can coordinate with the same print!) In documents filed in U.S. Bankruptcy Court in Honolulu, Chief Operating Officer Mark Storfer blamed the company’s problems on slow sales. In the company’s most recent fiscal year, it sold about $15.6 million worth of products—down from $23.6 million the year before.

Read More from: WSJ.com: Bankruptcy Beat

1 week 5 days ago
This undated file photo provided by Hilton Hawaiian Village Beach Resort & Spa shows Duke Kahanamoku Beach in Waikiki, Hawaii.
Associated Press
Hawaii’s Hilo Hattie stores have filed for bankruptcy with the hope of surviving as one of the island’s popular spots for tourists to buy travel trinkets and souvenirs. The struggling chain, which recently closed three of its seven stores, filed for bankruptcy protection on Thursday with $2.2 million worth of inventory. That inventory includes the quintessential Hawaiian floral-printed shirt, generously draping muumuus and an array of macadamia nut-inspired things like this tin of vanilla/macadamia nut-flavored cigars. (The clothing section even sells matching apparel sets so everyone in the family can coordinate with the same print!) In documents filed in U.S. Bankruptcy Court in Honolulu, Chief Operating Officer Mark Storfer blamed the company’s problems on slow sales. In the company’s most recent fiscal year, it sold about $15.6 million worth of products—down from $23.6 million the year before.

Read More from: WSJ.com: Bankruptcy Beat

1 week 5 days ago

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