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In early November, the Ninth Circuit held in In re New Investments, Inc. that a debtor was required to “cure” defaults to an agreement using a post-default interest rate, overturning its prior, decades-old decision In re Entz-White Lumber & Supply, Inc., which had held that a debtor could cure agreements at pre-default interest rates.
New Investments, Inc. (“New Investments”) borrowed approximately $3 million from Pacific L 51, LLC (“Pacifica”) to purchase hotel property. The loan accrued interest at a five percent rate which would increase to thirteen percent after an event of default. New Investments defaulted in 2009 and filed for chapter 11 relief thereafter. In the bankruptcy case, New Investments’ plan of reorganization proposed to “cure” the default under the loan agreement by selling the hotel property and using the proceeds to pay Pacifica at the pre-default interest rate of eight percent. Pacifica objected to the plan by arguing that it was entitled to the higher post-default interest rate of thirteen percent.
The bankruptcy court confirmed New Investments’ plan over Pacifica’s objection and Pacifica timely appealed directly to the Ninth Circuit Court of Appeals.
Read More from: Business Finance & Restructuring News - Weil
“Don’t Bet The Farm On It” When is a million dollar equity cushion not enough? Despite a purported cushion of at least $1.2 million, the Bankruptcy Court for the District of Nebraska recently held that a proposed Chapter 12 plan’s repayment terms were unreasonable because: (i) the plan did not provide any periodic adjustment to … Continue reading
The post Elkhorn Crossing, LLC: An Equity Cushion is Not Enough appeared first on Robins Kaplan Trial Attorneys Blog.
Read More from: The Robins Kaplan Bankruptcy Blog
Credit Slips is honored to have been selected as part of the ABA Journal's Blawg 100, their annual list of the top 100 blogs about law and lawyering. It is our second year in a row for inclusion on the list.
We appreciate all of our readers and are humbled by the time you spend with us. The comments to the posts continually demonstrate that one of the things that makes this blog work is our readership. Thanks for visiting.
Read More from: Credit Slips
Consumers' providing bank credentials to third-party services is akin to handing over their house keys. To mitigate screen-scraping risks, banks and fintech companies must first address issues related to security, transparency and control.
Post-crisis regulations were not only costly but may have undermined executive accountability by turning CEOs into compliance managers instead of drivers of business decisions.
Receiving Wide Coverage ...
Wall Street ties: Steven Mnuchin, a former Goldman Sachs executive, is expected to be named Treasury secretary by President-elect Donald Trump. "Mr. Mnuchin's Wall Street pedigree presents a contrast with the populist themes Mr. Trump struck in his campaign, railing against big banks and vowing to close tax loopholes that benefit hedge funds," the Wall Street Journal commented. "Mr. Trump also repeatedly attacked his rivals in the primary and general elections for...
Now that Thanksgiving and Black Friday are behind us, the Holiday shopping season is in full swing. Many of you likely made purchases using credit cards or other credit accounts to make gift purchases. If you’re already in a tight financial situation, keep in mind that the Bankruptcy Code has provisions built in that prevent a person from discharging debts that have been recently incurred.
Read More from: Bonds & Botes, P.C.
In re Jackson 554 B.R. 156 (BAP 6th Cir. 2016) – At the request of a chapter 7 debtor, the bankruptcy court reopened his case and sanctioned the debtor’s condominium association for violating his discharge. On appeal the Bankruptcy Appellate … Continue reading
Read More from: Bankruptcy-RealEstate-Insights
Americans could have significantly more money saved for their retirement, if not for all the fees that the asset management industry charges. What's worse is most savers are unclear how much they are paying, to whom, and for what. The authors of "What They Do With Your Money: How the Financial System Fails Us and How to Fix It" propose some changes that they say would not only help the economy grow faster but improve corporate America overall.
Read More from: Nebraska Debt and Bankruptcy Blog
The economy still hasn’t fully rebounded from the recession, leaving plenty of families with difficult financial decisions to be made. One question that many people find themselves asking is: Should I plan for my future retirement right now, or should I focus on paying off my current bills and other debt obligations and worry about my retirement later? The answer for you may not be clear, especially when you’ve got a mountain of debt and serious concerns about whether you may need to consider filing for bankruptcy.
Read More from: The Law Office of Joel R. Spivack
Signs point to international regulatory reform having passed its peak, with European regulators delaying policies and agitating against further Basel III rules.
Read More from: In The (Red) Business Bankruptcy Blog
We are quickly approaching the beginning of a new year. Many people see the new year as a new beginning and a time to make a fresh start or seek some sort of improvement from the past year. Many folks may decide to consider looking for a home and taking out a mortgage in the coming year. Before seeking a mortgage loan, it is smart to review your credit history and make any improvements you can in order to help yourself get the credit you want or need.
Read More from: Bonds & Botes, P.C.
Read More from: eSQUIRE Global Crossings
The Internal Revenue Service's petition for information on Coinbase customers is an overreach that should concern Americans regardless of whether they use bitcoin.
Receiving Wide Coverage ...
Differing views: The Wall Street Journal's editorial page had some strong words about the Consumer Financial Protection Bureau, the "rogue" bureau "which has abused the law and whose structure was recently found unconstitutional. By all rights the bureau should be killed," it says, and "Mr. Trump should dismiss [Director Richard] Cordray on his first day as President." "Reform options short of a death sentence could at least restrain some of the bureau's...
In a recent article for Practical Law Bankruptcy, Restructuring Senior Counsel Marc Levinson prepared a comparison chart providing an overview of the major facets of a Chapter 9 municipal bankruptcy and comparing them to those of a traditional Chapter 11 bankruptcy. The Chart examines, among other crucial issues, commencement of the case, eligibility requirements, case administration, preference actions and plans. To read the full chart, please click here.
Read More from: Orrick, Herrington & Sutcliffe LLP
In a remarkable demonstration of cooperation and coordination, three separate courts (both Federal and State) enter proactive mediation orders and appoint the same mediator in three related cases.
The cases involve a genetically modified strain of corn developed and marketed by Syngenta. The new strain gets regulatory approval from the U.S. and other countries – but not from China.
Corn prices begin dropping when China begins rejecting U.S. corn shipments that contain even a trace of this new strain.
Read More from: Mediatbankry