ABI Blog Exchange

On January 18, 2015, Fox Rothschild's Delaware Bankruptcy Litigation blog published a post "Caesars Bankruptcy: Illinois Bankruptcy Proceeding Stayed by Delaware Bankruptcy Court". The article reviews a situation where creditors filed a petition for an involuntary chapter 11 bankruptcy on January 12, 2015 against Caesars Entertainment in the Bankruptcy Court in Delaware and then three days later Caesars Entertainment filed a voluntary chapter 11 case in the Bankruptcy Court of the Northern District of Illinois.The Delaware Bankruptcy Court referred to this as a situation of  "parallel proceedings." In its January 15, 2015 order, the Delaware Bankruptcy Court ordered that the proceedings in the Illinois Bankruptcy case be stayed,  except for certain first day motions, pending "issuance of an order determining, if necessary, the venue in which the Debtor's chapter 11 case shall proceed."
1 week 6 days ago
On January 18, 2015, Fox Rothschild's Delaware Bankruptcy Litigation blog published a post "Caesars Bankruptcy: Illinois Bankruptcy Proceeding Stayed by Delaware Bankruptcy Court". The article reviews a situation where creditors filed a petition for an involuntary chapter 11 bankruptcy on January 12, 2015 against Caesars Entertainment in the Bankruptcy Court in Delaware and then three days later Caesars Entertainment filed a voluntary chapter 11 case in the Bankruptcy Court of the Northern District of Illinois.The Delaware Bankruptcy Court referred to this as a situation of  "parallel proceedings." In its January 15, 2015 order, the Delaware Bankruptcy Court ordered that the proceedings in the Illinois Bankruptcy case be stayed,  except for certain first day motions, pending "issuance of an order determining, if necessary, the venue in which the Debtor's chapter 11 case shall proceed."

Read More from: Miami Bankruptcy Law Blog

1 week 6 days ago
Many community banks will soon have to replace outdated technology Â-- expenses that will hit them in an ongoing environment of compressed net interest margins, increasing compliance costs and higher capital requirements.

Read More from: BankThink

1 week 6 days ago
We are happy to welcome back Professor Michelle Harner of the University of Maryland and the reporter for the American Bankruptcy Institute's Commission to Study the Reform of Chapter 11. Harner has kindly offered to blog on her perspectives on the Commission's report. So she does not have to say -- anything she writes represents only her own views and not her views in her capacity as the reporter.

Read More from: Credit Slips

1 week 6 days ago
A recent Millennium Trust white paper, “Raising Assets in a Post-Madoff World,” calls forth the image of private fund investors who did not look hard enough and at regulators who did not require enough or the right kinds of disclosures. Everyone sings “We Won’t Get Fooled Again.”  Read more here.
1 week 6 days ago
On January 12, 2015, Appaloosa Investment LP and funds affiliated with Oaktree Capital and Tennenbaum Capital filed an involuntary bankruptcy petition against Caesars Entertainment Operating Company, Inc. (“Caesars”) with the United States Bankruptcy Court for the District of Delaware.  The petitioning creditors are junior noteholders of the debtor. According to the Statement of Petitioning Creditors in Support of Involuntary Chapter 11 Petition Against Caesars Entertainment Operating Company, Inc.,  petitioning creditors asked the Court to appoint an examiner to investigate claims that Caesars’ insiders plundered the company, paying themselves hundreds of millions of dollars while moving assets out of the reach of second-lien holders. Meanwhile, three days later, Caesars filed for bankruptcy in the Northern District of Illinois, case no. 15-01145 (ABG) (Bankr. N.D. Ill.) (“Illinois Bankruptcy”). The petitioning creditors filed a motion with the Delaware Bankruptcy Court seeking a stay of the Illinois Bankruptcy and finding that venue is proper in Delaware.  On January 15th, the Delaware Bankruptcy Court issued an Order staying the Illinois bankruptcy filing by Caesars while the Delaware Bankruptcy Court determines the proper venue in which the Caesars action shall proceed.
1 week 6 days ago
Nearly a year ago, The Supreme Court held in Law v. Siegel (In re Law), No. 12-5196, 571 U.S. ___ (March 4, 2014), that despite a debtor’s misdeeds, the Bankruptcy Court still has to follow the Bankruptcy Code and can’t just dispense its own sense of justice ad hoc. This same reasoning was recently applied in a bankruptcy court case in California, In re Arellano, 517 B.R. 228 (Bankr. S.D. Cal. 2014), the bankruptcy court there followed the Supreme Court’s logic in affirming that a bankruptcy trustee can’t object to a debtor’s amended claim of exemption based merely on a claim of “bad faith,” just because the debtor failed to disclose the asset in his original filing. Following the Law case, the bankruptcy court reasoned, any exception to a debtor’s claimed exemption must be based in law, not simply the bankruptcy court’s own sense of equitable considerations. This case prompted me to go back and cover the Law case.
1 week 6 days ago
There've been a bunch of post-mortems of the Antonio Weiss nomination in the press the last few days (see, e.g., here, here, and here). When I read them I often feel like I'm reading a story about a kid who went to a fancy eastern boarding school, where he was head of the literary society, lettered in three sports, and did lots of charity work, but didn't get into the Ivy League school where all of his family and family friends went. The result: shock and outrage that the kid was denied his birthright!  Being nominated for Undersecretary of the Treasury isn't quite like getting into Harvard (or even Yale). Yet reading Weiss's defenders' (and their all-too-willing jouralist abetters), one would think that's the story. And that underscores precisely what the problem was with the Weiss nomination, and what Weiss's defenders just don't get (or want to admit they get): the assumption that Wall Street success entitles someone to an important policy position for which they have no apparent qualifications.

Read More from: Credit Slips

2 weeks 13 hours ago
Consumer Financial Protection Bureau (CFPB) is seeking input on a “Safe Student Account Scorecard” that would help colleges to avoid partnering with financial institutions that offer checking and prepaid accounts with tricks and traps.  CFPB discloses that many “colleges make deals with financial institutions, where the college helps with or allows the promotion of credit, debit, or prepaid cards, sometimes endorsed with a college logo or linked to a student identification card.  Colleges, either directly or indirectly, typically get a share of the revenue generated from the cards, and financial institutions have access to a new group of consumers. The CFPB has identified agreements where financial institutions offer royalty payments for use of college trademarks or bonuses based on the number of student account sign-ups. Financial institutions may also offer discounted, or even completely free services, in exchange for marketing access on campus.”
2 weeks 17 hours ago
Weighing your debt resolution options can be overwhelming.  We are posting a 5-part blog series over the next month to help breakdown some of the most common and important considerations. Here are the topics we will be covering: What are the tax consequences? How the debt is settled – lump sum payment vs. structured payment […] The post Debt Relief Blog Series: Determining Your Best Option. Part I: Tax Consequences appeared first on Acclaim Legal Services, PLLC.

Read More from: Acclaim Legal Services

2 weeks 1 day ago
The SEC has issued a statement, which, although no mention of the proxy access proposals is specifically made, addresses the controversy surrounding the SEC staff’s recent decisions to permit companies to exclude shareholder proposals on the basis that companies will be proposing their own conflicting management proposals. Chair White has directed the SEC staff to review the rule and report to the Commission on its review.
2 weeks 1 day ago
Investing in startups is different than other types of alternative investing, with unique challenges and opportunities. In Episode 19 of Accredited Investor Markets Radio, entrepreneurial ‘it’ girl, Diana Kander, discusses what to look for on both the investment and entrepreneurial side of a start-up. Her discussion with AccreditedInvestorMarkets.com Managing Editor, Alicia Purdy, covers how an angel investor can help or hurt a start-up, how to avoid executing a flawed plan, how to learn and move on from a failure and how identify a perfect match between investor and entrepreneur.   Learn more about Diana Kander here.   Or you can find her here: Twitter: @dianakander LinkedIn Facebook   About Diana Kander   As refugees of the Soviet Union, Diana Kander’s family escaped to the US when she was 8-years-old. By the time she was an American citizen, she had perfected her skills as a capitalist – selling flea market goods to grade school classmates at a markup.  
2 weeks 1 day ago
A recap of the informed opinions (and the discussions they generated) on BankThink this week.

Read More from: BankThink

2 weeks 1 day ago
If you ask any bankruptcy lawyer what they feel the best time is for filing bankruptcy, you’ll likely hear a resounding, “Now!” In truth, waiting around to file bankruptcy increases your risk for wage garnishments, lawsuits, auto repossession, and even foreclosure of you home. The New Year is here now, and there are many reasons […] The post Reasons to File Bankruptcy at the Beginning of the New Year appeared first on Allmand Law Firm PLLC.

Read More from: AllmandLaw

2 weeks 1 day ago
As market participants will know, the appeal in the Apcoa II scheme of arrangement settled just before Christmas. While welcome for the players involved, it deprived the market of the clarity of a Court of Appeal judgment on many scheme issues such as jurisdiction, the imposition of new obligations and class composition. In the absence of the Court of Appeal’s review, we offer our own reflection on the current state of key issues arising on schemes of arrangement in financial restructurings. continue >>>
2 weeks 1 day ago
PE Fund“The private equity balance of power is starting to shift in favor of the strongest general partners, leaving limited partners with less negotiating clout,” according to an article by Pension & Investments writer Arlene Jacobius. Read more here.
2 weeks 2 days ago
Teen retailer Wet Seal Inc. filed for Chapter 11 bankruptcy protection early Friday morning, hoping to salvage some of its stores using a financing offer from B. Riley Co. LLC, The Wall Street Journal reports. The filing followed warnings that Wet Seal was running out of cash even after shutting down 338 stores. (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.”) The Chicago judge who’s in charge of the bankruptcy for casino giant Caesars Entertainment Corp.’s largest unit granted several routine requests to keep the company operating normally during the case, WSJ reports.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago
Teen retailer Wet Seal Inc. filed for Chapter 11 bankruptcy protection early Friday morning, hoping to salvage some of its stores using a financing offer from B. Riley Co. LLC, The Wall Street Journal reports. The filing followed warnings that Wet Seal was running out of cash even after shutting down 338 stores. (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.”) The Chicago judge who’s in charge of the bankruptcy for casino giant Caesars Entertainment Corp.’s largest unit granted several routine requests to keep the company operating normally during the case, WSJ reports.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago
Teen retailer Wet Seal Inc. filed for Chapter 11 bankruptcy protection early Friday morning, hoping to salvage some of its stores using a financing offer from B. Riley Co. LLC, The Wall Street Journal reports. The filing followed warnings that Wet Seal was running out of cash even after shutting down 338 stores. (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.”) The Chicago judge who’s in charge of the bankruptcy for casino giant Caesars Entertainment Corp.’s largest unit granted several routine requests to keep the company operating normally during the case, WSJ reports.

Read More from: WSJ.com: Bankruptcy Beat

2 weeks 2 days ago
Former Slips guest blogger Michelle Harner has a piece up on Dealb%k this morning about the ABI's SME proposal – one of my favorite parts of the ABI's larger chapter 11 reform proposal.

Read More from: Credit Slips

2 weeks 2 days ago

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