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Don Ryan/Associated Press
Supermarket operator Haggen Holdings LLC heads to court twice next week. Tuesday, the company is looking for final approval for a bankruptcy loan so it can cover payroll and other expenses during its stay in bankruptcy. The grocer, which won interim approval of the financing last month, secured $200 million in financing from lenders led by PNC Bank. Thursday, Haggen is back in the Wilmington, Del., bankruptcy court looking for permission to close 100 stores. The company needs to pay off lenders who helped finance its deal to buy nearly 150 stores earlier this year from grocery chain Albertsons. Haggen has hired Hilco Merchant Resources LLC to help it liquidate the stores. In court papers, Haggen said that given its “severe liquidity constraints and the significant operating losses…it is imperative that the Store Closing Sales with respect to such stores commence immediately.” Haggen filed for bankruptcy protection last month, less than a year after the deal with Albertsons increased its number of stores to 164 from 18, with locations throughout the Pacific Northwest. Earlier this week, Haggen announced plans to sell off 36 stores to buyers who would keep those locations open.

Read More from: Bankruptcy Beat

16 hours 4 min ago
Congress made clear in its enactment of section 503(b)(3)(D) of the Bankruptcy Code that, to the extent a creditor makes a substantial contribution in a chapter 9 or chapter 11 bankruptcy case, that creditor should be rewarded.  Because the reward — reimbursement of fees and expenses as administrative expenses of the estate — is paid with funds that would otherwise be available to other creditors, oftentimes a request for a substantial contribution claim is met with resistance.  While substantial contribution claim litigation typically focuses on whether the creditor seeking reimbursement actually provided a contribution to the estate, a recent decision by the Sixth Circuit shows us that the debate surrounding section 503(b)(3)(D) does not stop there.  Rather, in In re Connolly North America, LLC, the court was asked to determine whether a creditor could assert a substantial contribution claim in a chapter 7 proceeding, notwithstanding  that the statute explicitly mentions the availability of these types of claims only in chapter 9 or chapter 11 cases.  Much to the relief of the petitioning creditors in Connolly, the Sixth Circuit answered yes (albeit in a 2-1 decision, demonstrating that the issue is a close call). 
17 hours 50 min ago
Series: Business Transition and Exit Planning 2015 A good business is likely to generate multiple purchase offers, and each may be very different than the others. Even multiple offers for the same price will often vary a great deal. This webinars will discuss concepts and issues such as “ability to close, ” conditions precedent to a buyer’s obligation to close, purchase price adjustments, and other key terms that need to be considered when comparing competing offers. Read more here.
19 hours 35 min ago
This is a continuation of my post from September 19, 2015 entitled What Is A Home Loan Modification. Applying for a home loan modification can be a grueling process. I have seen the process go on for 12-18 months, often ending in a denial and, unfortunately, many times I see a home reach the point of foreclosure during the modification process. Dealing directly with you mortgage company is the best place to start the process. You should be wary of foreclosure rescue scams or companies who may contact you to “assist” with your modification. This can drag the process out and there is usually nothing these folks can do that you can’t do yourself.

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

20 hours 23 min ago
When you use bankruptcy to get out of debt, the first thing you’re going to want is to work on your credit score. Getting your credit into tip-top shape, after all, helps put you in the best light with new lenders. That’s where credit repair companies come in. They play on your fears that bad credit will stand in the way of your dreams, and that bankruptcy is the end of the world. Once you’re hooked, they promise to remove bad marks from your credit report. It sounds too good to be true – and that’s exactly what it is. Your Credit Score After Bankruptcy According to the Federal Reserve Bank, filing for bankruptcy actually raises your credit score. After bankruptcy, you don’t owe money to anyone. You also don’t have any open accounts you can use. Finally, you can’t wipe out your debts in a new bankruptcy right away.
20 hours 47 min ago
Wire Company Holdings, Inc. (d/b/a New York Wire) and Wire Property Holdings, LLC have filed chapter 11 petitions before the United States Bankruptcy Court for the District of Delaware (lead case number 15-12097-LSS).  The Debtors have filed a motion seeking authority to sell substantially all of their assets.  The petition, including the consolidated list of top 30 creditors, the first day declaration, the motion to obtain DIP financing and the docket are available through Kurtzman Carson Consultants. Contact Norman L. Pernick or Nicholas J. Brannick for more information.
21 hours 23 min ago
Patriot Coal Corp. won a judge’s approval of its chapter 11 bankruptcy plan, which will let it hand over its mines to new owners, Daily Bankruptcy Review reports 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, scroll to the bottom and click “try for free.”) The bankruptcy of casino company Caesars Entertainment Corp.’s operating unit, which filed an amended bankruptcy plan Thursday, can’t shield the parent from investor lawsuits, DBR reports via WSJ. A $338 million fund for victims of an oil-train derailment in Canada is close to winning final approval, the Associated Press reports.

Read More from: Bankruptcy Beat

22 hours 19 min ago
Upcoming Committee Formation Meeting: October 15, 2015 at 11:00 a.m. Case Name: American Apparel, Inc., et al. Case Number:15-12055 (BLS) Location: Sheraton Suites Wilmington Downtown, 422 Delaware Ave., Wilmington, DE 19801 The petition and consolidated list of top 30 creditors and the first day declaration, along with the docket, are available through GCG. The company has issued a press release discussing its bankruptcy filing. Contact Norman L. Pernick or Nicholas J. Brannick for more information.
1 day 14 hours ago
Dov Charney in 2012
Los Angeles Times/Associated Press
Less than a week before American Apparel filed for bankruptcy protection, the company and big backer Standard General LP handed ousted Chief Executive Dov Charney a setback in defamation lawsuits he brought against them in California. The suits stand out among the flurry of legal action spawned by Mr. Charney’s relationship with the clothing company. The litigation triggered the release of a mother lode of sexually explicit emails and texts, allegedly proof American Apparel was justified in forcing its founder out for misconduct. The proof has yet to be tested in court, but it impressed Judge Terry Green, who blocked Mr. Charney’s defamation action against American Apparel under laws meant to safeguard speech against frivolous lawsuits. The judge was called on to evaluate Mr. Charney’s complaints of defamation against the backdrop of the texts and emails.

Read More from: Bankruptcy Beat

1 day 14 hours ago
In our First Quarter Review, we focused exclusively on two hot topics we covered early in the year – our series on the ABI Commission’s report on bankruptcy law reform and our “Drilling Down” series, which explores the issues that can arise in the restructuring of companies in the oil and gas industry. For our Mid-Year Review, we are focusing on the other topics that caught our attention in the first half of 2015.  
1 day 15 hours ago
CII indicated that shareholders plan to “get tough” on boards adopting what it calls “troublesome access provisions.” See here for the headline. CII’s data shows that one-third of companies that have adopted proxy access require ownership thresholds of 5% in order to nominate candidates, and this could turn into “votes against directors at these firms in the 2016 proxy season.”
1 day 16 hours ago
As the “lazy days of summer” come to a close, investors have been enjoying a stock market near all-time highs. Similarly the bond market has been trading at prices literally not seen since the 17th century following 35 years of rate compression. It has been an extraordinary, if not unique, period in financial history. Read more here.
1 day 19 hours ago
Seasonal Worker I recently met with a gentleman who was employed by the union as a contractor. He had long stretches of unemployment and other stretches of high employment. He wanted to hear from me as to when was the right time to file chapter 7 bankruptcy. His situation is somewhat unique. He will work+ Read More The post The Right Time To File Chapter 7 Bankruptcy appeared first on David M. Siegel.
1 day 19 hours ago
I understand what it's like to live in a low-income family. I can only begin to try to understand the extraordinary struggles facing low-income families who also happen to be black. Pro Publica has just released a story and accompanying study that helps a bit to bridge this empathy gap.

Read More from: Credit Slips

1 day 19 hours ago
Avoid viewing millennials as a monolithic group. Consider parsing them into subgroups such as affluent, homebuyers, entrepreneurs and savers. The smarter move may be removing the age bracket blinders entirely.

Read More from: BankThink

1 day 20 hours ago
The success of any organization depends on its ability to foster an environment that is open and inclusive, allowing diverse individuals to share insights and experiences that make the company stronger.

Read More from: BankThink

1 day 20 hours ago
Receiving Wide Coverage ... Anticipating FOMC Minutes: Observers and markets eagerly await the release Thursday afternoon of the minutes from the Federal Open Market Committee meeting last month. While the meeting resulted in no change in interest rates, many expect details of the conversation to offer clues as to when they may raise rates, the Wall Street Journal reports. In particular, some think the meeting's notes may reveal the decision to keep rates unchanged was a...

Read More from: BankThink

1 day 20 hours ago
Malibu Lighting Corporation (Malibu), a manufacturer of outdoor lighting, and six affiliates, including Outdoor Direct Corporation (ODC) and National Consumer Outdoors Corporation (NCOC), have field chapter 11 petitions before the United States Bankruptcy Court for the District of Delaware (lead case 15-12080-KG). NCOC has filed a motion to sell substantially all of its assets pursuant to an Asset Purchase Agreement.  Malibu and ODC are in the process of being liquidated, which will continue during the bankruptcy. The lead petition and consolidated list of top 35 creditors and the first day declaration are available here and here, respectively.  A motion has been filed to appoint Kurtzman Carson as the debtors’ claim agent. Contact Norman L. Pernick or Nicholas J. Brannick for more information.
1 day 21 hours ago
Authored by Jon Sacks and Heather S. Nasonand Jon Sacks and Heather S. Nason of Rogers TowersLeases can be complex commercial contracts. When a lender is reviewing a loan, the reviewer should keep in mind that the review is not only for things that may affect a borrower’s ability to pay the loan, but also for obligations a lender may step into if – and when – it becomes a landlord. Just like there can be different lease forms, there is no one-size-fits-all approach to reviewing leases. Below are some questions that a lender should ask when reviewing leases to understand what obligations the lender may step into if and when it steps into the shoes of a borrower/landlord.
  • Is the lease complete? Ensuring that all of the documents were actually signed, signed by the correct tenant legal entity, and that the lease relates to the correct premises are preliminary steps, but are important items to confirm. Further, the lender should confirm that all copies of leases include all exhibits, amendments, or addenda. These could affect the financial terms of the lease, the length of the lease, and other important matters.

Read More from: Florida Banking Law Blog

1 day 21 hours ago
Thousands more employees of the Great Atlantic & Pacific Tea Co. could be out of a job by Thanksgiving, Daily Bankruptcy Review reports 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, scroll to the bottom and click “try for free.”) A group of Patriot Coal Corp.’s lenders are unhappy with the company’s bankruptcy plan and thinking it should be denied, DBR reports via WSJ. WSJ reports that Caesars Entertainment Operating Co., casino company Caesars Entertainment Corp.’s unit in bankruptcy, filed an amended chapter 11 plan that would make the unit a real-estate investment trust.

Read More from: Bankruptcy Beat

1 day 22 hours ago