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ABI Blog Exchange

The SEC has announced an open meeting next Wednesday, August 5, 2015 at 10:00 am, to consider final adoption of the pay ratio rule.  It is scheduled to be the last of three rule-related topics, the others pertain to security-based swap dealers.
15 hours 12 min ago
Both well meaning friends and creditors will tell you myths about filing bankruptcy. Dispel the myths about filing bankruptcy and be informed about your financial choices. http://ow.ly/QfqXOFiled under: Uncategorized
18 hours 8 min ago
Wall Street’s credit giants face slim pickings in their search for cheap bonds and loans to buy, but they’re still finding opportunities in European real-estate and the commodities-related sectors like oil-and-gas.
Bloomberg News
That’s according to  senior executives at credit-investing giants Oaktree Capital Group LLC and Blackstone Group LP, who shared thoughts on distressed investing on earnings calls in recent weeks. Wednesday, Apollo Global Management LLC was the latest to weigh in. Here are common themes from the calls: 1. Distress remains hard to find. With interest rates near zero and the U.S. economic climate benign, the default rate among U.S. corporate high-yield debt issuers sits at just 2% the year through June, according to Moody’s Investors Service. As such, “the supply of corporate distressed debt opportunities has been muted,” Oaktree co-chairman Bruce Karsh said Tuesday.

Read More from: WSJ.com: Bankruptcy Beat

18 hours 16 min ago
Debtors and creditors alike should understand that no debt restructuring option is perfect and that different options have advantages and disadvantages. To learn more, click on the link below to an article recently published by the online news site Hotel News Now: http://www.hotelnewsnow.com/Article/16344 The post Alternatives to a Bankruptcy Filing appeared first on Insolvency Insights.

Read More from: Insolvency Insights

18 hours 45 min ago
The American Bankruptcy Institute Commission to Study the Reform of Chapter 11 released its long-awaited, much-anticipated Final Report and Recommendations on December 8, 2014. Since the release of the Report, the Weil Bankruptcy Blog provided our readers with summaries of the most interesting and important issues addressed in the Report.  The ABI Commission was established in recognition of the “general consensus among restructuring professionals” that the time has come to evaluate U.S. business reorganization laws as a result of numerous changes that have occurred since the Bankruptcy Code was enacted in 1978. Some of the changes cited by the ABI Commission include the following:
  • more complex corporate structures with more leverage and, in particular, secured debt;
  • companies’ asset values driven less by hard assets and more by services, contracts, intellectual property, and other intangible assets;
  • greater prevalence of multinational operations; and
  • changed composition of creditor classes in light of claims trading and derivative products.
19 hours 15 min ago
Earning a substantial return on your investment feels good. You know what feels better? Donating money without an expectation of earning anything in return. When teenager Farrah Soudani was critically injured in the Aurora, Colorado, movie theater massacre in November 2012, her family, friends and social networking connections donated $171,525 in 15 months, via 6,088 donations, on the GoFundMe crowdfunding platform to help pay her medical expenses. Read more here.
20 hours 6 min ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? Customers have become more vocal about their losses in retail bankruptcy cases and have been more willing to take legal action to have their claims heard. The Federal Trade Commission and state attorneys general have also intervened on behalf of consumers either to protect the privacy of customer data or to collect the value of unredeemed gift cards—notably, in the ongoing RadioShack bankruptcy. Customer consternation when a retailer files for bankruptcy is understandable, but the potential losses customers may bear doesn’t justify giving such creditors additional safeguards in the bankruptcy process. The march to protect special interests could disrupt the level playing field the bankruptcy code seeks to establish.

Read More from: WSJ.com: Bankruptcy Beat

20 hours 13 min ago
While rising rates may temporarily improve net interest margin and profits, they will not increase bank stock prices for at least three reasons.

Read More from: BankThink

21 hours 5 min ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? All bankruptcy filings follow an orderly, court-driven process designed to fairly address the claims of all stakeholders. Unfortunately, companies don’t have the power to favor consumers over other creditors. However, consumers are better served by measures that smart business owners will take to keep customers happy. Ultimately, the future viability of a business emerging from bankruptcy will rest in the hands of its customers. While the law itself is generally focused on the settlement of creditor claims, maintaining customer goodwill should be of paramount concern to any potential successor owner. Thus, most of the protections afforded to customers during the bankruptcy process don’t stem from a legal obligation, but rather from practical considerations.

Read More from: WSJ.com: Bankruptcy Beat

21 hours 30 min ago
Among its other effects, the Puerto Rico debt crisis has dramatically increased the number of public figures and politicians whose verbal repertoire includes the term "chapter 9." Bondholders' resistance to chapter 9 access for Puerto Rico municipalities is fueled in part by an earlier public debt crisis: Detroit. As suggested in my Credit Slips posts, Detroit made some new law but its major lasting legacy is procedural. I just posted a draft article, based on original empirical research, documenting that procedural blueprint, Federalism Form and Function in the Detroit Bankruptcy. It shows the paths by which the federal court became a major institutional actor throughout Detroit's restructuring.

Read More from: Credit Slips

22 hours 37 min ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? With the recent increase in retail bankruptcies, more shoppers understand that they share the pain that lenders, suppliers and even employees and retirees now expect when they hear of a bankruptcy filing. While this heightened sensitivity is not without good reason, shoppers actually fare pretty well in comparison to other creditors, since as customers they are not just creditors but also an important asset! Several of the most prevalent consumer concerns include the redemption of unused gift cards, the recovery of deposits if goods aren’t shipped and the protection of personally identifiable information to avoid identity theft and new, perhaps unwanted, solicitations.

Read More from: WSJ.com: Bankruptcy Beat

22 hours 38 min ago
Regulators have given the merger between CIT Group and OneWest Bank the green light Â-- so long as CIT comes up with a revised Community Reinvestment Act plan. This condition is good news for the low-income communities impacted by the merger and sets a strong precedent for regulators' review of future bank deals.

Read More from: BankThink

23 hours 5 min ago
Wall Street Journal The rate of home-price appreciation has slowed, according to the S&P/Case-Shiller Home Price Index for May, which economists say is a good sign more potential buyers will soon be able to afford to buy. After home prices increased at low double-digit percentage rates per month in 2013, price gains per month this year have hovered just above 4%. A recent report from the National Association of Realtors was somewhat misleading. NAR said median...

Read More from: BankThink

23 hours 51 min ago
(by Elizabeth Carden of the ABI) (by Dave’s iPhone) The American Bankruptcy Institute held its 20th Annual Southeast Bankruptcy Workshop on Amelia Island last week. At the conference, we heard Prof. Michelle Harner, the Reporter for the ABI Commission Report, talk about the Commission’s recommendations regarding “structured dismissals.” That’s fitting because that is the focus of this post in Plan Proponent’s series on the plan confirmation-related recommendations in the ABI Commission Report (and, in particular, its Exiting the Case piece). In this post, we’ll wrap-up the Exiting the Case piece by covering Section G of the Report regarding “Orders Resolving Chapter 11 Cases.” Background

Read More from: Plan Proponent

1 day 1 hour ago
Construction of the Baha Mar resort on the beach on New Providence island, Bahamas, May 2014.
Craig Karmin/The Wall Street Journal
The Export-Import Bank of China and a contractor want Bahamas resort Baha Mar’s bankruptcy tossed.  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.”) Caesars is having an emergency hearing Wednesday to see if it can appeal immediately a judge’s decision not to halt lawsuits against its parent company, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

1 day 1 hour ago
Construction of the Baha Mar resort on the beach on New Providence island, Bahamas, May 2014.
Craig Karmin/The Wall Street Journal
The Export-Import Bank of China and a contractor want Bahamas resort Baha Mar’s bankruptcy tossed.  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.”) Caesars is having an emergency hearing Wednesday to see if it can appeal immediately a judge’s decision not to halt lawsuits against its parent company, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

1 day 1 hour ago
In re RML Dev., Inc., 528 B.R. 150 (Bankr. W.D. Tenn. 2014) – A mortgagee sought to modify a sale order to (1) modify the bid procedures and (2) confirm that it had a right to credit bid. The debtor obtained … Continue reading →
1 day 3 hours ago
We are well out of the .com bubble, but tech companies still form and fail.  For the lenders brave enough to lend to the tech companies developing software, the collateral is often the source code which is the nuts and bolts of an application or “app”.  While the source code is actually a written text written in some development code, it exists in the abstract and it thus an intangible in that sense.  However, unlike most collateral intangibles, this type often requires the original developer to make the source code worth anything more than a line item on a security agreement. Consider for a moment the case of Aereo, Inc., which filed bankruptcy is late 2014.  It was a company which developed a web based app which allowed users to watch TV on mobile devices or over an internet connection at home.  Basically, Aereo, Inc. received the cable/TV signal from the normal sources, e.g., cable and antenna, and then converted the signal to be routed through the internet to the subscribers. In the course of developing this technology, Aereo raised about $250 million in equity from inventors.  So, presumably someone believed in the product.  (Admittedly, there was no secured debt).  Additionally, Aereo listed its assets as worth $20 million when it filed bankruptcy in November 2014.

Read More from: Tough Times for Lenders

1 day 9 hours ago
Or a bit of this this and that. I've totally neglected cross-posting my writings on Dealbook here on Slips, so I give you two recent columns:
  • The first, on Chase's living will, version 3.0 or thereabouts.
  • The second, on the confusing Baha Mar bankruptcy case. Since I wrote that one, the Bahamian court has rejected a petition to recognize the Delaware chapter 11 case under the Bahamian equivalent of chapter 15.

Read More from: Credit Slips

1 day 20 hours ago

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