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Because no recent opinions have been published by the Delaware Bankruptcy Court, I wanted to touch on a subject that is vital in nearly every preference or fraudulent transfer case:  The Statute of Limitations For A Preference Claim A. Statute of Limitations The debtor has two years from the date it filed its petition for bankruptcy to file a complaint seeking the recovery of a preference payment. However, if the court appoints a trustee, the limitations period for filing the lawsuit extends one year from the date the trustee was appointed.  Preference litigation cannot be commenced once the court closes or dismisses the debtor’s bankruptcy. B. Service of the Summons and Complaint The two-year time period, or statute of limitations, is not the only deadline governing the commencement of the preference action. The statute of limitations governs when the preference complaint must be filed with the court. The Federal Rules of Bankruptcy Procedure govern how long the plaintiff has to serve the complaint on the party receiving the payments (i.e. the defendant). Under the Federal Rules, the party filing the lawsuit must serve the defendant within 120 days.2 Note, however, that the party may request an extension of time in which to complete service. The party commencing the lawsuit can achieve service in a number of methods, including mailing the summons and complaint to the defendant by First Class mail.
11 hours 36 min ago
Experienced attorney, Jeffrey Scholnick, discuss how probable cause is necessary to ensure that law enforcement officers conduct arrest and searches without violating citizens’ civil rights. What is Probable Cause? Probable cause is a standard used by law enforcement to justify making an arrest, issuing a warrant or conducting a search. The Fourth Amendment requires reasonable grounds for believing that either a crime may have been committed or evidence of a crime may be located in the place to be searched. In some extreme circumstances, probable cause may justify a warrantless arrest or search; however, persons involved in such arrests or searches must be brought before a competent authority for a prompt judicial determination of probable cause. Establishing Probable Cause

Read More from: Scholnick Law

16 hours 8 min ago
On April 30, 2016, Midstates Petroleum Company, Inc. and its subsidiary Midstates Petroleum Company, LLC (collectively, “Midstates” or the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas, Houston Division.  According to the declaration of Midstates’ Chief Financial Officer, Nelson M. Haight (the “Haight Declaration”), Midstates has filed a restructuring support agreement which has been executed by over 74% of each class of Debtors’ secured creditors. The support agreement anticipates a plan, which includes, among other things, a debt-for-equity conversion. The Debtor’s operations are focused on the acquisition, production, and sale of oil, natural gas liquids, and natural gas from domestic onshore hydrocarbon basins. See Haight Declaration at 16. The Debtors own approximately 277,800 acres in the Texas, Louisiana and Oklahoma region.  See Haight Declaration at 29.
16 hours 53 min ago
Gary Ozenne seems to love bankruptcy court.  To wit, Mr. Ozenne filed, on his own behalf, seven bankruptcy cases over the course of five years.  Mr. Ozenne has three times petitioned the United States Supreme Court, on each occasion seeking bankruptcy-related relief.  Unfortunately for Mr. Ozenne, his latest foray in the world of bankruptcy law has resulted in a decision that cuts back on the jurisdiction of one of his favorite hang-out spots.  In Gary Lawrence Ozenne v. Chase Manhattan Bank (In re Gary Lawrence Ozenne), the Ninth Circuit rejected the latest of Mr. Ozenne’s petitions for relief and ruled that bankruptcy appellate panels do not have authority under the All Writs Act to issue writs of mandamus.  In the wake of Ozenne, what remains of BAP jurisdiction is unclear. 
18 hours 43 min ago
Jason J. DeJonker has joined law firm Bryan Cave in Chicago as a partner with the bankruptcy, restructuring and creditors’ rights group, where he will work on litigation related to corporate bankruptcy, creditors’ rights and mergers and acquisitions. Mr. DeJonker has worked on chapter 11 cases, prebankruptcy workouts and debtor-in-possession, or DIP, financing. He also has worked with clients in the real estate and finance industries. He earned his law degree from the University of Illinois. John Lyons has joined the restructuring group at the Chicago office of law firm DLA Piper as a partner. Mr. Lyons—who most recently worked with Skadden, Arps, Slate, Meagher & Flom—has worked on corporate bankruptcies as well as with private equity and distressed investors.  He has been involved in well-known restructurings including American Airlines, Delphi Corp. and US Airways. Mr. Lyons is a member of the American Bankruptcy Institute and Turnaround Management Association.

Read More from: Bankruptcy Beat

19 hours 15 min ago
As smartphone-carrying baby boomers retire, banks can no longer ignore seniors' unique digital banking needs.

Read More from: BankThink

19 hours 36 min ago
One of the topics that gets a great deal of views at our blog is the affect of the filing of a bankruptcy on a security clearance. I have handled all facets of security clearance issues from initial SF 86 concerns through administrative appeals at the Department of Hearings and Appeals (DOHA) level through appeals to the DOHA Appeal Board.  Financial considerations are probably the number one problem people have with regard to initially obtaining their clearance or having it revoked.   Alcohol and illegal drug use follow as a close second. Options for Dealing with Financial Concerns

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

21 hours 53 min ago
Even if the Financial Stability Oversight Council fixes flaws in its process for designating "systemically important" companies, that doesnÂ't solve everything the council needs to achieve its mission.

Read More from: BankThink

22 hours 6 min ago
Wall Street Journal Silicon Valley is investing in a startup that seeks an old-fashioned bank charter. Yes, you read that correctly. Warburg Pincus, which has plenty of experience investing in community banks, is leading an investment round in Varo Money, which is developing a mobile-banking app. Varo, led by former American Express and Wells Fargo veteran Colin Walsh, will partner with banks at first but may eventually seek its own charter, so it can accept deposits...

Read More from: BankThink

22 hours 12 min ago
NephroGenex, Inc. (Nasdaq – NRX), an innovator in the development of drugs to treat kidney disease, has filed a chapter 11 petition before the United States Bankruptcy Court for the District of Delaware (Case No. 16-11074).  The case has been assigned to the Honorable Kevin Gross.  The company has filed a motion to sell substantially all of its assets.  The petition (including the list of top 20 creditors), the first day declaration and the docket are available through Kurtzman Carson Consultants.  The company has issued a press release regarding its reorganization efforts. Contact Norman L. Pernick, Nicholas J. Brannick, or David W. Giattino for more information.
23 hours 39 sec ago
BIND Therapeutics, Inc. (Nasdaq – BIND), a clinical-stage nanomedicine platform company development novel targeted therapeutic, primarily for the treatment of cancer, and its affiliate BIND Biosciences Security Corporation, have filed a chapter 11 petitions before the United States Bankruptcy Court for the District of Delaware (Lead Case No. 16-11084).  The cases have been assigned to the Honorable Brendan L. Shannon.  The debtors have filed a motion seeking authority to use cash collateral.  The petitions (including the consolidated list of top 26 creditors), the first day declaration and the docket are available through Prime Clerk.  The debtors have issued a press release regarding their reorganization efforts. Contact Norman L. Pernick, Nicholas J. Brannick, or David W. Giattino for more information.
23 hours 4 min ago
[wsj-responsive-image P="//" J="//" M="//" credit="Associated Press" placement="Inline" suppressEnlarge="false" ] Ultra Petroleum and Midstates Petroleum, two publicly traded oil companies, separately filed for bankruptcy with more than $5.8 billion in in combined debts. 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, scroll to the bottom and click “try for free.”) Energy Future Holdings Corp. filed a new bankruptcy plan that gives NextEra Enegry Inc. or other investors room to try to buy Oncor, DBR reports in WSJ.

Read More from: Bankruptcy Beat

1 day 4 min ago
In bankruptcy cases, things often move more slowly than people would like or expect.  In addition to dealing with oversight by the bankruptcy court and the United States Trustee, a debtor typically spends significant time engaging with its lenders and secured creditors, committees of unsecured creditors, and any number of other key stakeholders.  Court approval is needed for most significant events in the case, for anything out of the ordinary course of business, and, at times, even for small matters.  Transparency, adequate notice and opportunity to object, and due process are hallmarks of an effective bankruptcy case.  And all the while, chapter 11 costs and expenses continue to mount as the debtor pushes forward in its efforts to reach the goal line – confirmation of a plan of reorganization, consummation of a section 363 sale, a structured dismissal, or some other exit strategy. With this as background, a seventeen day long bankruptcy case becomes all the more dramatic.  On March 27, 2016, Southcross Holdings LP and affiliated debtors each filed chapter 11 cases in the Southern District of Texas, Jointly Administered Case No. 16-20111.  Less than three weeks later, their plan of reorganization was confirmed and had gone effective.

Read More from: eSQUIRE Global Crossings

1 day 33 min ago
By: Donald L. Swanson The distressed debtor is the Republic of Argentina. Ok .. . so not everyone gets to handle a case of this magnitude. But, as for $8 billion in cash settlement payments and $100 billion in total defaults . . . it’s merely a matter of locating the decimal point in a different place than what most of us are used to seeing.  Otherwise, Argentina is pretty much the same, I’d guess, as other cases, whether small or large. Over the years, I’ve become fond of saying that there is no such thing as a “small” or a “large” case–the intensity of emotion and the desire to prevail are rarely changed by the amount of money at stake. So, the question for our real-world cases is this: What can we learn from the Argentina mediation process? Here’s what happened, according to public reports (some of which became available this past week). Legal disputes have been raging for many years in the U.S. District Court for the Southern District of New York, stemming from Argentina’s 2002 default on debts of $100 billion.  The Argentina cases don’t involve a bankruptcy proceeding, of course . . . but the cases amount, collectively, to something like a bankruptcy

Read More from: Mediatbankry

1 day 2 hours ago
During the first quarter of 2016, the Fifth Circuit handed down some important decisions relating to bankruptcy and debt.     These include cases about how attorneys get paid from PACA proceeds, standing to object, denial of discharge, dismissal for cause, enforcing a chapter 11 plan, preferences, more fallout from the Stanford Ponzi scheme and some cases of general interest. Click on the style of the case to go to the opinion.    Part One:  Bankruptcy DecisionsAttorney's Fees; PACA ClaimantsKingdom Fresh Produce Incorporated (Matter of Delta Produce, LP), No. 14-51079 (5th Cir. 3/11/16)This is a must-read opinion for anyone dealing with PACA claims in bankruptcy.   The first paragraph of the opinion explains the case better than I could try. 
This attorney’s fee dispute has its roots in the Perishable Agricultural Commodities Act (PACA), a Depression-era statute designed to protect sellers of perishable produce from delinquent purchasers. Two such purchasers filed for bankruptcy and the bankruptcy court appointed special counsel to collect and disburse funds to PACA-protected sellers that had claims against the purchasers-turned-debtors.
1 day 15 hours ago
Posted by Kathy Bazoian Phelps    Below is a summary of the activity reported for April 2016. The reported stories reflect: 3 guilty pleas or convictions in pending cases; over 26 years of newly imposed sentences for people involved in Ponzi schemes; at least 10 new Ponzi schemes worldwide; 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, 55, was indicted on a wire charge relating to an alleged Ponzi scheme run through ASG Real Estate Services Group. The indictment alleged that Adler took about $740,000 from 3 investors, promising them returns through real estate transactions. The wire charge was added to other charges brought against Adler last year.    Aequitas Capital Management and its founder and CEO, Robert J. Jesenik, 56, executive vice president, Brian A. Oliver, 51, and chief operating officer, N. Scott Gillis, 62, were the subject of SEC charges that they were running a “Ponzi-like” scheme. The company agreed to the appointment of a receiver about one month after it had announced layoffs and hired a consulting firm to help it wind down the business. Aequitas stopped making payments on over $300 million in private notes that it sold to investors.

Read More from: The Ponzi Blog

2 days 15 hours ago
Coal giant Peabody Energy Corp. will make its second bankruptcy-court appearance next week, requesting full and final access to $800 million in bankruptcy financing. The company will appear before Judge Barry S. Schermer of the U.S. Bankruptcy Court in St. Louis on Thursday to request the permission. Judge Schermer granted preliminary access to the financing package arranged by Citigroup two weeks ago. At the time, the judge said he didn’t believe Peabody’s need for the financing was disputed. During the interim period, Peabody has had access to $200 million of a $500 million term loan, a $100 million letter-of-credit facility and a $200 million facility available to satisfy the company’s environmental obligations. Lenders of the financing package include Peabody’s existing secured lenders and the holders of Peabody’s unsecured bond debt–distressed investors Centerbridge Partners LP, Aurelius Capital Management LP, Elliott Management Corp. and Capital Research and Management. Peabody Energy Corp. is the largest U.S. coal company and became the latest to file for bankruptcy earlier this month. It joined peers Arch Coal Inc., Alpha Natural Resources, Inc., Patriot Coal Corp. and Walter Energy, Inc., all of whom have also sought chapter 11 protection.

Read More from: Bankruptcy Beat

3 days 18 hours ago
The latest in a line of fraudulent transfer decisions in the Madoff case has added to the case-law regarding what level of knowledge is needed to plead actual fraud in securities Ponzi scheme cases. In dismissing most of the claims brought against certain investors by court-appointed trustee Irving Picard, Judge Stuart Bernstein of the United States Bankruptcy Court for the Southern District of New York found that the level of knowledge pled by the trustee did not satisfy the prevailing standard that has been established in the Madoff cases, as discussed below.  In this case, Picard asserted several counts of actual and constructive fraud against Legacy Capital Ltd. (“Legacy”), a single purpose vehicle used to invest in Bernard L. Madoff Securities LLC (“BLIMIS”), and Khronos LLC, a provider of accounting and other services to Legacy and certain other funds that invested in BLIMIS.  Taken together, Picard’s complaint sought to avoid and recover approximately $213 million in initial transfers made to Legacy and approximately $6.6 million in subsequent transfers made to Khronos. Standards
3 days 19 hours ago
The prosecution of former House Speaker Dennis Hastert illustrates why it makes sense to require bankers to share suspicions with the authorities.

Read More from: BankThink

3 days 19 hours ago
With consumers generally averse to risk, financial institutions have an opportunity to rethink what it means to make bets in line with their customers' well-being.

Read More from: BankThink

3 days 19 hours ago