ABI Blog Exchange

Recently reported in Bloomberg Markets: an English-based horse racing syndication company is importing its investment opportunity to the United States. Highclere America is a joint venture between Harry Herbert and Bradley Weisbord to import English and European horses to compete for the larger purses here in the United States. Highclere America will make horse ownership more accessible by dividing up the costs associated with owning, training and managing a racehorse. Read more here.
3 days 14 hours ago
Over the last few years, the US Department of Justice has reached settlements with nearly every major lender with regard to the lending procedures for FHA (Federal Housing Administration) loans. The legal basis for the settlements were alleged violations of the False Claims Act. The total recovery is about $3 billion dollars. In the wake of lengthy and expensive investigations and negotiations, lenders have basically . . . whined.  Jamie Dimon said the company was "thoroughly confused" by the FHA's investigations and said he was going to "figure out what to do." That task might be a whole lot easier due to Chase's competitor, Quicken Loans. On Friday, Quicken sued the Department of Justice and the Department of Housing and Urban Development, asking the court for a declaratory judgment and injunction that would halt the government's efforts to bring Quicken to settle its alleged FHA liability. I love this lawsuit!!! 

Read More from: Credit Slips

4 days 50 min ago
Federal Law It is true that the federal bankruptcy laws apply to every American in each state. However, there is a local flavor to filing bankruptcy depending upon which state you live in and in which County that you live in. For this reason, when considering bankruptcy, you want to find a bankruptcy law firm+ Read More The post Although It’s Federal Law, Filing Bankruptcy Is Truly Local appeared first on David M. Siegel.
4 days 3 hours ago
A recent study by economists suggests that Chapter 13 debtors whose cases were confirmed and completed through discharge derive significant economic and health benefits from their filings as compared to Chapter 13 debtors whose cases were dismissed.This report, published on the National Bureau of Economic Research – a professional organization for economists – compared 500,000 bankruptcy records with tax records and foreclosure records.The study compared Chapter 13 debtors whose cases were approved and completed successfully to discharge to Chapter 13 debtors whose cases were dismissed. Successful Chapter 13 debtors:
  • saw annual earnings 25% higher after bankruptcy – compared to their pre-bankruptcy earnings.

Read More from: The BK blog

4 days 5 hours ago
Probably one of the most frequent problems I encounter with new cases clients bring to my office is the lack of documentary evidence. No one bothers to put down in writing that agreement with the brother-in-law or "friend" about the business they were starting together, the house one was going to buy (by signing on the mortgage) and which the other was going to "own" (by going on the title) and paying the mortgage, the investment they were going to make together, or any other manner of legal arrangements. Then, when things "go south" and the "owner" does not pay the mortgage or the business fails (or even prospers, in which case you will see fights over profits), the differences in each person's understanding of what was agreed becomes painfully obvious. But what's worse is that the prospective client has nothing in writing to back up his side of the story. It becomes a "he said / she said" dispute hard to win in court. Convincing a judge or jury of the rightness of your position is now just a coin flip. Personal injury attorney Paul Samakow discusses this problem well in a recent article. I commend it to you:
Good day my friends. Hope you will read my latest article. Last week I advised that I was running for President. So far, no contributions. No problem, I still love you.
4 days 5 hours ago
This is the next post in Plan Proponent’s series on the confirmation-related recommendations in the ABI Commission Report (and, in particular, its Exiting the Case piece). In this post, we’ll cover the Commission’s recommendations regarding post-confirmation entities and claims trading. The Commission addresses post-confirmation entities and claims trading in the context of disclosure. As a starting point, Section 1125 of the Bankruptcy Code requires a plan proponent to file a disclosure statement that contains “adequate information.” Section 1125(a) contains a rather exhaustive list of what constitutes adequate information. Additionally, courts tend to rely on 8 factors or so to assess the adequacy of a disclosure statement. As the Commission points out, the gist of Section 1125 (and such factors) is whether the “disclosure statement identifies and explains material aspects of the debtor’s business, chapter 11 case, and proposed plan so that creditors and other stakeholders can make an informed decision about voting on the plan.” Post-Confirmation Entities

Read More from: Plan Proponent

4 days 6 hours ago
It’s nothing new in 2015 to say that social media has become a valuable part of any company’s marketing and public relations strategy.  Companies now rely on sites like Facebook and Twitter to communicate with customers, advertise products, build brands, and shape public opinion.   Despite the obvious value such accounts provide, however, it is not always clear what rights, if any, a company may have in a social media account associated with its businesses or brands.  The Twitter account of Richard Branson, the billionaire founder of Virgin Group, provides a useful example of this dilemma.  Mr. Branson frequently uses a Twitter account bearing his name to promote Virgin Group’s various businesses and often shares hyperlinks to pages on Virgin’s official website.  With over 5 million followers, Mr. Branson’s Twitter account undoubtedly represents a lucrative marketing tool for Virgin Group.  But who “owns” the account, Virgin Group or Mr. Branson?  Does Virgin Group have a protectable property interest in the account? If Mr. Branson and Virgin Group were ever to part ways (an admittedly unlikely proposition), would Mr. Branson or Virgin Group retain the right to continue “tweeting” to those 5 million potential customers?
4 days 7 hours ago
Davis Polk has submitted a comment letter on the SEC proposal  for companies to disclose their equity hedging policies.
4 days 7 hours ago
If banks consider licensed and regularly supervised pawnbrokers with many compliance responsibilities to be too risky to bank, then what Main Street businesses are safe?

Read More from: BankThink

4 days 8 hours ago
Sven, of St. Paul, related to us this sad but musical tale, which pertains to purchasing real estate where the seller goes bankrupt before closing. You see, she and I entered into a written contract to buy a piece of land with a small house on it — all of which she owned free and clear — near St. Paul for $500,000. I had already paid one-half of the purchase price, and besides paid recent water and electric bills (to be settled separately at closing), and was ready to pay the rest of the purchase price at closing. Read more here.
4 days 9 hours ago
U.S. tax law encourages energy companies focused on exploration and production of oil, gas, and minerals to form as master limited partnerships.  That raises certain tax issues for investors in troubled debt of troubled energy companies. A group of lawyers from Kaye Scholer discuss related issues at length in a white paper entitled, “The Price of Oil & the Potential for Master Limited Partnership Restructuring and Insolvencies,” which was published on the firm’s website, and which we recommend. Read more here.
4 days 9 hours ago
Consumers should receive the same level of protection whether they choose to do business with a bank or with marketplace lenders and other challengers.

Read More from: BankThink

4 days 10 hours ago
The core feature which separates Chapter 13 from Chapter 7 bankruptcy is the Chapter 13 “reorganization” or repayment plan.  This repayment plan is designed to help debtors keep their property in exchange for gradually repaying a certain portion their debts, typically over the course of three to five years.  But what if you don’t want to wait that long, and prefer to get your payments out of the way up front?  Is it possible to complete the repayment plan ahead of schedule?  In this entry, our bankruptcy lawyers will explain some of the potential obstacles to early Chapter 13 repayment, and explore alternative methods of modifying your payment plan. Reasons to Avoid Paying Your Chapter 13 Creditors in Advance Most people would logically assume the sooner they can pay off their Chapter 13 debts, the better.  The creditors get their money, the debtor is released from their obligations, and the case concludes that much sooner: a win-win situation for all parties involved. Or at least, that’s what one would think.  While early repayment is not necessarily impossible, there are some potential stumbling blocks which debtors should be aware of.

Read More from: Young, Klein & Associates

4 days 10 hours ago
Tim Blixseth was ordered to jail for contempt until he accounts for million he owes creditors. In this April 29, 2009, file photo, Tim Blixseth arrives at the federal courthouse in Missoula, Mont.
Michael Albans/Associated Press
A federal judge Monday ordered former billionaire real-estate developer Tim Blixseth jailed for contempt until he accounts for millions of dollars he owes creditors. 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 http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) According to Bloomberg, creditors of Energy Future Holdings Corp. are looking for an extra $431 million bankruptcy payment.

Read More from: WSJ.com: Bankruptcy Beat

4 days 10 hours ago
Tim Blixseth was ordered to jail for contempt until he accounts for million he owes creditors. In this April 29, 2009, file photo, Tim Blixseth arrives at the federal courthouse in Missoula, Mont.
Michael Albans/Associated Press
A federal judge Monday ordered former billionaire real-estate developer Tim Blixseth jailed for contempt until he accounts for millions of dollars he owes creditors. 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 http://on.wsj.com/DJBankruptcyNews, scroll to the bottom and click “try for free.”) According to Bloomberg, creditors of Energy Future Holdings Corp. are looking for an extra $431 million bankruptcy payment.

Read More from: WSJ.com: Bankruptcy Beat

4 days 10 hours ago
Breaking News This Morning ... Earnings: Fifth Third, Synovus Receiving Wide Coverage ... Bank Tax Backfire? British banks HSBC and Standard Chartered are considering fleeing the land of tea and crumpets for Asia in order to avoid the U.K.'s steep bank taxes. The discussion comes at the behest of shareholders rattled by Britain's decision last month to increase the bank tax by a third. (The tax has been hiked eight times since it was implemented in 2010, according...

Read More from: BankThink

4 days 11 hours ago
On April 19, 2015, Frederick’s of Hollywood, Inc., and its affiliated companies (the “Debtors” or “Frederick’s”) filed chapter 11 bankruptcy petitions in the United States Bankruptcy Court for the District of Delaware.  At the time of the bankruptcy filing, the Debtors held assets in the amount of $36.5 million, and debts in the amount of $106 million. According to the Declaration of William Soncini, the Chief Operating Officer of the Debtors, Frederick’s sells high quality women’s apparel and related products under their proprietary Frederick’s of Hollywood brand. Decl. ¶ 8.  The Debtors’ major merchandise categories are foundations, lingerie, ready-to-wear, and accessories (including shoes, handbags, jewelry, personal care products, and novelties).  Id.  The Debtors’ target consumer base is women aged 18-45, and their exclusive product offerings and collections include Seduction by Frederick’s of Hollywood and the Hollywood Exxtreme Cleavage® bra.  Id. According to the Soncini Declaration, the Debtors have commenced these chapter 11 cases to effectuate a sale of substantially all of their assets to a stalking horse purchaser, subject to higher or better offers received in connection with the proposed sale process.  Decl. ¶ 47.
4 days 11 hours ago
Authored by Samantha Alves Orender of Rogers TowersThe Equal Credit Opportunity Act (the “ECOA”) prohibits creditors from discriminating against credit applicants based on race, religion, sex, national origin, marital status, and age among other things.  Penalties for violations of the ECOA were discussed in a previous blog post, where we also mentioned that not every failure to comply with the ECOA results in civil penalties.  Sometimes a failure to comply with the ECOA is the result of an “inadvertent error,” which is not considered a violation. Defined in 12 C.F.R. § 1002.2(s), an inadvertent error is “a mechanical, electronic, or clerical error that a creditor demonstrates was not intentional and occurred notwithstanding the maintenance of procedures reasonably adapted to avoid such errors.”  Creditors should understand this defense has very limited utility, as it only applies to specific violations of the ECOA as set forth in 12 C.F.R. § 1002.16(c), such as certain notification requirements, a failure to retain certain records, or misinterpretation of a code on a credit report.

Read More from: Florida Banking Law Blog

4 days 11 hours ago
The recent IPO success of Uber, Facebook, Airbnb and others, have many investors interested in getting an ownership stake prior to the IPO offering.  Prior? Yes, prior.  In days past, getting in on a “hot IPO” was something some investors would seek to do as a risky yet potentially rewarding strategy.  Today, however, more and more investors are seeking to “get in” earlier. Read more here.
4 days 13 hours ago
I just received an e-mail from a gentleman who filed a chapter 13, but later decided to dismiss his case.  He is wondering if the Bankruptcy Court can instruct the credit reporting agency to remove the bankruptcy from his credit report.  Unfortunately, the answer is no.  A bankruptcy will stay on the debtor’s credit report for ten years, even if the case is later dismissed. I don’t know if this result would have made a difference for this gentleman, but at least he should have been told the result. Follow The StepsTo schedule your Free Bankruptcy Consultation with Diane The post Bankruptcy Stays on your credit report even if case dismissed appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
4 days 23 hours ago

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