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Payment system transformation has become a pressing need for banks today. The rate at which this is happening is largely controlled by the conflict between rapid technological shifts and the barriers to product acceptance.

Read More from: BankThink

7 min 23 sec ago
Alpha Natural Resources Inc., one of the largest U.S. coal producers, filed for chapter 11 bankruptcy protection on Monday to cut its more than $3 billion debt load, The Wall Street Journal reported. The Bristol, Va., company will likely sell some of its best mines or turn them over to creditors. (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 our homepage, scroll to the bottom and click “try for free.”) Relativity Media LLC , the Hollywood studio founded by Ryan Kavanaugh, made its first appearance in bankruptcy court Friday, winning a judge’s permission to tap $9.5 million in new cash from a group of hedge funds angling to buy the company’s major assets, The Daily Bankruptcy Review reports. A judge in the Bahamas agreed Friday to delay a critical decision about the future of the $3.5 billion stalled resort project Baha Mar, WSJ reports.

Read More from: WSJ.com: Bankruptcy Beat

52 min 27 sec ago
Receiving Wide Coverage ... 'World's Local Bank' No More: HSBC has agreed to sell its Brazilian unit to Banco Bradesco for $5.2 billion as the bank seeks to scale down and concentrate on its Asian operations. The bank pledged in June to cut 50,000 jobs and retreat from low-performing business lines, with the goal of reducing annual costs by up to $5 billion by the end of 2017. The papers note the bank's retrenchment is a...

Read More from: BankThink

58 min 23 sec ago
George Orwell famously said that, "all animals are equal, but some animals are more equal than others."   A petition for writ of cert filed on July 20, 2015 challenges the 9th Circuit's ruling upholding a District Court which found that the IRS was more equal than other creditors when it came to an alter ego determination.    The case is No. 15-102, Robert A. Polittle, et al v. United States of America. The Polittes owned several Midas franchises in California through two corporations.   According to the Polittes, their CFO stopped paying employment taxes for one of their companies in 1998 and used his background as a CPA to conceal this fact from them.   The IRS did not detect the non-payment until 2005.    By this time, taxes of $5.3 million had accrued.   After selling all of the assets of the company, the tax debt managed to grow to $11.7 million.   The IRS then filed nominee liens against the Polittes and a second corporation which they owned.    The IRS collected about $1.7 million from sale of two condominiums owned by the Polittes and all of the assets of their other corporation.   The Polittes filed a refund suit against the IRS in U.S.

Read More from: CLLA Bankruptcy Blog

16 hours 35 min ago
STUDENT LOAN DISCHARGES IN THE 7TH CIRCUIT: SOME THOUGHTS Authored by:  Steven P.Taylor Student loans have become one of the largest components of debt in American society.  This size is a major problem that the bankruptcy system must address to effectuate its policy goals of fresh start (Chapter 7 bankruptcy) and rehabilitation (Chapter 13 bankruptcy).
1 day 17 hours ago
Posted by Kathy Bazoian Phelps    Below is a summary of the activity reported for July 2015. The reported stories reflect: 10 guilty pleas or convictions in pending cases; over 166 years of newly imposed sentences for people involved in Ponzi schemes; at least 11 new Ponzi schemes involving over $112 million; and an average age of approximately 50 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.    Alisa Adler, 54, was charged with running a Ponzi scheme the involved a real estate development business run through ASG Real Estate Services Group. She solicited investor funds to supposedly purchase and develop real estate but instead used the money to make Ponzi scheme payments and for her personal expenses.    Will Allen, 36, was indicted for his involvement with a Ponzi scheme run with Susan Daub, 55, through Capital Financial Partners LLC.  The scheme involved $31 million and supposedly provided high interest short term loans to athletes. More than 40 people invested in the scheme and were promised 18% returns.    John Steven Blount, 54, pleaded guilty to charges relating to a $5.8 million Ponzi scheme that he ran through his company, Professional Consultants LLC.

Read More from: The Ponzi Blog

2 days 12 hours ago
A recap of the informed opinions (and the discussions they generated) on BankThink this week, including whether independent consultants should be criminally liable for misrepresentations in their reports and whether higher rates will help or hurt banks.

Read More from: BankThink

2 days 17 hours ago
In the recent opinion of Burtch v. Revchem Composites, Inc. (In re Sierra Concrete Design, Inc.), Adv. No. 10-52667 (CSS), 2015 WL 4381571 (Bankr. D. Del. July 16, 2015), the Delaware Bankruptcy Court issued a memorandum opinion following trial on claims asserted by Jeoffrey Burtch, Chapter 7 Trustee of Sierra Concrete Design, Inc. (“Sierra” or “Debtors”), seeking recovery against Defendant Revchem Composites, Inc. (“Revchem”) for alleged preferential transfers under Sections 547 and 550 of the Bankruptcy Code. In the memorandum opinion, the Court found that Revchem successfully established at trial that each of the payments received by Revchem from Sierra during the 90 day preference period were made in the “ordinary course” of the parties’ business relationship, and were thus shielded from recovery pursuant to Section 547(c)(2) of the Bankruptcy Code. This opinion is notable because Revchem was able to establish this defense even though it received payments from Sierra during the preference period at a much faster rate (a standard deviation of 27.9 days) than during the pre-preference period.
2 days 17 hours ago
This week on The Broke and the Beautiful, it’s all Relativity, Teresa Giudice sued her bankruptcy lawyer, and David Cassidy gave a tour of the house he’s putting up for auction.
In this Jan. 20 file photo, Ryan Kavanaugh, chief executive officer of Relativity Studios, attends the Los Angeles Premiere of “Black or White.” Relativity Media filed for chapter 11 bankruptcy protection Thursday.
Paul A. Hebert/Associated Press
As Daily Bankruptcy Review reported in The Wall Street Journal, independent film studio Relativity Media LLC filed for bankruptcy this week, weighed down by more than $500 million in debt and recent box-office flops. Relativity, known for TV show’s like MTV’s “Catfish” and “Guy’s Grocery Games,” as well as recent movies including “Black or White” and “The Lazarus Effect,” plans to sell itself at auction, with a group including Anchorage Capital (but not founder and Chief Executive Ryan Kavanaugh) leading the bidding.

Read More from: WSJ.com: Bankruptcy Beat

2 days 19 hours ago
This week on The Broke and the Beautiful, it’s all Relativity, Teresa Giudice sued her bankruptcy lawyer, and David Cassidy gave a tour of the house he’s putting up for auction.
In this Jan. 20 file photo, Ryan Kavanaugh, chief executive officer of Relativity Studios, attends the Los Angeles Premiere of “Black or White.” Relativity Media filed for chapter 11 bankruptcy protection Thursday.
Paul A. Hebert/Associated Press
As Daily Bankruptcy Review reported in The Wall Street Journal, independent film studio Relativity Media LLC filed for bankruptcy this week, weighed down by more than $500 million in debt and recent box-office flops. Relativity, known for TV show’s like MTV’s “Catfish” and “Guy’s Grocery Games,” as well as recent movies including “Black or White” and “The Lazarus Effect,” plans to sell itself at auction, with a group including Anchorage Capital (but not founder and Chief Executive Ryan Kavanaugh) leading the bidding.

Read More from: WSJ.com: Bankruptcy Beat

2 days 19 hours ago
A.  Where We Left Off As noted in Part III, movants seeking approval of structured dismissal motions typically must prove that the proposed dismissal is in the best interest of the creditors. To do so, movants will usually have to prove that the dismissal provides better treatment than would a liquidation. To that end, most structured dismissals contain what are commonly referred to as “bells and whistles” that sweeten the deal for creditors. Unfortunately, many of the bells and whistles commonly included in structured dismissal motions draw the ire of the United States Trustee. This section will identify some of the most common bells and whistles, while the next installment of this series will identify and address the U.S. Trustee objections. B.  Bells and Whistles – Dismissals with Benefits

Read More from: Insolvency Insights

2 days 20 hours ago
On Tuesday in Manhattan, the trustee unwinding Lehman Brothers Inc. will ask a bankruptcy judge for permission to pay nearly $2 billion to the defunct brokerage’s unsecured creditors, which would be the third such distribution since he paid off the brokerage’s customers. If approved by Judge Shelley Chapman, that would bring the total amount returned to creditors to more than $8 billion, a recovery of about 35 cents on the dollar. Combined with distributions made to customers, the total amount recovered in the brokerage’s liquidation would be about $114 billion. In court papers, lawyers for trustee James W. Giddens said that after the third distribution, further payouts would be contingent on winning or settling pending litigation, which would free up funds currently on reserve. Mr. Giddens began paying back creditors—former employees, pension funds, banks and investment firms with unsecured claims against the brokerage—last summer after paying back the brokerage’s customers. The distinction between “customer” and “creditor” is a crucial one in the Lehman case. Customers get 100% of their money back, while unsecured creditors get much less. Also Tuesday, a federal judge in Chicago will hear Caesars Entertainment Operating Co.’s latest bid for a quick appeal of a recent decision that creditor lawsuits can continue against the casino giant’s parent, Caesars Entertainment Corp.

Read More from: WSJ.com: Bankruptcy Beat

2 days 22 hours ago
On Tuesday in Manhattan, the trustee unwinding Lehman Brothers Inc. will ask a bankruptcy judge for permission to pay nearly $2 billion to the defunct brokerage’s unsecured creditors, which would be the third such distribution since he paid off the brokerage’s customers. If approved by Judge Shelley Chapman, that would bring the total amount returned to creditors to more than $8 billion, a recovery of about 35 cents on the dollar. Combined with distributions made to customers, the total amount recovered in the brokerage’s liquidation would be about $114 billion. In court papers, lawyers for trustee James W. Giddens said that after the third distribution, further payouts would be contingent on winning or settling pending litigation, which would free up funds currently on reserve. Mr. Giddens began paying back creditors—former employees, pension funds, banks and investment firms with unsecured claims against the brokerage—last summer after paying back the brokerage’s customers. The distinction between “customer” and “creditor” is a crucial one in the Lehman case. Customers get 100% of their money back, while unsecured creditors get much less. Also Tuesday, a federal judge in Chicago will hear Caesars Entertainment Operating Co.’s latest bid for a quick appeal of a recent decision that creditor lawsuits can continue against the casino giant’s parent, Caesars Entertainment Corp.

Read More from: WSJ.com: Bankruptcy Beat

2 days 22 hours ago
If you go to the doctor and the doctor prescribes medicine made by a company that the doctor owns shares in, does the doctor have a conflict of interest?   What if the doctor is paid for every pill she prescribes?  Is that a conflict? Read more here.
2 days 22 hours ago
This week, the Examiners took up the issue of suffering shoppers in retail bankruptcies. Many said bankruptcy law offers sufficient protections to customers when their favorite stores run into distress, though they acknowledged customers don’t always know how to take advantage of these protections. And while some said the onus is on the consumer to protect himself by knowing the risk involved with retail transactions, others said it is simply good business for retailers to look out for consumers. Whether shoppers deserve special treatment divided readers on Twitter:    

Read More from: WSJ.com: Bankruptcy Beat

2 days 23 hours ago
This week, the Examiners took up the issue of suffering shoppers in retail bankruptcies. Many said bankruptcy law offers sufficient protections to customers when their favorite stores run into distress, though they acknowledged customers don’t always know how to take advantage of these protections. And while some said the onus is on the consumer to protect himself by knowing the risk involved with retail transactions, others said it is simply good business for retailers to look out for consumers. Whether shoppers deserve special treatment divided readers on Twitter:    

Read More from: WSJ.com: Bankruptcy Beat

2 days 23 hours ago
It's not enough for banks to avoid deceptive practices. As the CFPB's latest enforcement action against JPMorgan Chase makes clear, banks are obligated to ensure their systems protect consumers from easily preventable mistakes.

Read More from: BankThink

3 days 7 min ago
“Dream the impossible dream; eat the impossible sundae…”  So the song goes – or rather, went – at The Show Place Ice Cream Parlour in Beach Haven, New Jersey.  Sadly, The Show Place and the adjoining Surflight Theatre have closed their doors and will be liquidating their assets in chapter 7.  The authors have fond memories of shows at the Surflight and family outings to The Show Place, and we are now in the unenviable position of wishing the institution a melancholy happy trails.  So for this installment of Bankruptcy Beach Reading, we take you to Long Beach Island, New Jersey, to bid farewell to the Surflight Theatre and The Show Place.  The Surflight Theatre was founded in 1950, with its first shows taking place in a tent by the beach.  As Long Beach Island grew, so too did the Surflight, eventually constructing a 450-seat theater, which has stood in the same location in Beach Haven for the past thirty years.  The Surflight put on high-quality shows in its short summer seasons and was a hub of arts and culture in the burgeoning beach communities on Long Beach Island.  News sources report that in that time, it gave rise to a number of stage and screen personalities, including Jim Brochu, James Brennan, Charlotte D’Amboise, Ed Dixon, David Hartman, Richard Kind, David Loud, and Seth Rudetsky.
3 days 16 min ago
Wall Street Journal The U.S. may be second fiddle to Europe in the Ryder Cup golf competition, but that's not the case when it comes to investment banking. As Europe's large banks with big investment bank operations talk about doom and gloom, and as their shares plummet, their U.S. counterparts are moving in the opposite direction. ...

Read More from: BankThink

3 days 1 hour ago
Ryan Kavanaugh, Relativity Media CEO, takes part in a panel titled “Can Hollywood Speak Chinese?” during the Milken Institute Global Conference in Beverly Hills, Calif., in April. The company filed for bankruptcy Thursday.
Reuters
Independent film studio Relativity Media LLC, behind releases like “The Lazarus Effect” and MTV’s “Catfish,” flied far bankruptcy with plans to sell itself at auction. Read the Daily Bankruptcy Review article 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.”) Coal maker Alpha Natural Resources Inc. may file for bankruptcy as soon as Monday, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

3 days 2 hours ago

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