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Ryan Kavanaugh, Relativity Media’s chief executive, in California on April 27. Relativity filed for chapter 11 bankruptcy Thursday.
Mario Anzuoni/Reuters
Relativity Media LLC’s chapter 11 filing Thursday capped off weeks of intense speculation as to when the troubled film and television studio would turn to the bankruptcy court for relief from a heavy debt load, box-office flops and a bitter legal battle. Here’s a look back at the company’s path to chapter 11. May 20: An advertising agency sues Relativity over an unpaid $401,000 bill, which Relativity paid later that day. Late May: Relativity reportedly misses a deadline to pay the holders of more than $300 million in debt, but its lenders agree to a grace period.

Read More from: WSJ.com: Bankruptcy Beat

5 days 5 hours ago
As Jason Kilborn has graciously described, Credit Slips is the blogging base of the authors of the Law of Debtors and Creditors, 7th edition, (Aspen/Wolters Kluwer 2015). We have revised the Teacher's Manual this summer and encourage all adopters or potential adopters to download the new version, available at the book's Companion Website. If we you need the professor password, email your Aspen rep or one of us.  The unfun change was discovering a few typos (blush!) in the textbook itself. We created an errata. Distributing that to your students on the first day of class will help everyone. The fun work was updating the Teacher's Manual to reflect our own experiences in the classroom and your feedback. We hope that we've given improved guidance for certain problems and we updated the discussion to reflect several changes in law.

Read More from: Credit Slips

5 days 6 hours ago
Bank of America puts an HR exec in charge of stress testing, a look at how Yellen compares to Bernanke at the 18-month mark as Fed chair, Sen. Collins tries to help small banks and Cullen/Frost shuffles some key executives.

Read More from: BankThink

5 days 7 hours ago
One of the most difficult hurdles Elkhorn bankruptcy clients face is paying bankruptcy attorney fees when they are already broke. However, the last thing an Elkhorn bankruptcy client should do is hire the cheapest bankruptcy attorney they can find. There are many low cost bankruptcy attorneys who advertise their cheap prices to unsuspecting clients, just like you. You must use extreme caution. The old saying, “You get what you pay for” holds true for bankruptcy attorney fees, too.   Hiring a Cheap Elkhorn Bankruptcy Attorney Can Be a Huge Mistake When you research bankruptcy attorney fees, you may find a huge spread in the price ranges. This is due to the quality of work that will be dedicated to your case. This could be disastrous for you. Hiring an Elkhorn bankruptcy attorney who is not skilled, experienced, or knowledgeable in bankruptcy law, could potentially end with your bankruptcy case being thrown out. Once that happens, it is over. You get one shot. You don’t want to blow it. While not all inexpensive bankruptcy attorneys are ignorant of bankruptcy laws and not all expensive bankruptcy attorneys are outstanding, you will need to proceed with caution. Research is the key to finding the best bankruptcy attorney for your needs. There are many more factors to consider, besides price, when looking for a competent Elkhorn bankruptcy attorney. You should also consider the following:

Read More from: Wynn at Law, LLC

5 days 7 hours ago
Recharacterization: an overview The Bankruptcy Code provides numerous mechanisms to ensure the equitable and efficient administration of claims against a debtor’s estate.  Certain courts, however, have gone beyond the express provisions of the Bankruptcy Code and fashioned the remedy of recharacterization as a means of enforcing the Bankruptcy Code’s priority scheme.  Recharacterization involves the reclassification of a purported debt claim to equity based on the economic substance of the transaction.  In so doing, courts endeavor to prevent parties from disguising equity investments or capital contributions as debt transactions as a means to receive treatment on par with a debtor’s creditors in the event the investment fails (i.e., the debtor files for bankruptcy).   Are you my code section?  Recharacterization and the Bankruptcy Code Courts are divided as to which provision of the Bankruptcy Code grants courts authority to recharacterize debt claims as equity.  The Third, Fourth, Sixth, and Tenth Circuits have held that a court’s power to grant such a remedy is within the scope of the court’s equitable powers granted by section 105(a) of the Bankruptcy Code.  In contrast, the Fifth and Ninth Circuits have rejected reliance on section 105(a), and held that, pursuant to section 502(b) of the Bankruptcy Code, courts may only recharacterize debt as equity where applicable state law would treat the asserted interest as equity.
5 days 8 hours ago
Financial institutions take information security concerns very seriously, but few make it a priority to keep accountholders updated on their safeguarding efforts.

Read More from: BankThink

5 days 8 hours ago
Bankruptcy and restructuring firm Chilmark Partners has started a joint venture with global finance firm Burford Capital, DBR reported via WSJ. The venture, Bankruptcy Litigation Funding LLC, will focus on advisory and financing services for bankruptcy-related claims. Burford said it has committed more than $500 million to litigation financing in the past five years; Chilmark said it has invested more than $1 billion in distressed private equity and that it has advised on nearly $100 billion in restructurings and financings. Neil Cummings has joined law firm Jenner & Block in Los Angeles as a partner with the corporate finance practice. Mr. Cummings has experience with financing transactions including debtor-in-possession, or DIP, financing, as well as mezzanine financing and subordinated debt financing. Most recently, he worked with law firm Proskauer Rose.

Read More from: WSJ.com: Bankruptcy Beat

5 days 9 hours ago
Bankruptcy and restructuring firm Chilmark Partners has started a joint venture with global finance firm Burford Capital, DBR reported via WSJ. The venture, Bankruptcy Litigation Funding LLC, will focus on advisory and financing services for bankruptcy-related claims. Burford said it has committed more than $500 million to litigation financing in the past five years; Chilmark said it has invested more than $1 billion in distressed private equity and that it has advised on nearly $100 billion in restructurings and financings. Neil Cummings has joined law firm Jenner & Block in Los Angeles as a partner with the corporate finance practice. Mr. Cummings has experience with financing transactions including debtor-in-possession, or DIP, financing, as well as mezzanine financing and subordinated debt financing. Most recently, he worked with law firm Proskauer Rose.

Read More from: WSJ.com: Bankruptcy Beat

5 days 9 hours ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? Retailers come and go. Some are iconic brands, while others defined consumer shopping habits and American culture. Failures occur because of increased competition, upheaval in regional and national economies, new technology, poor management and even brand obsolescence. Some brands have disappeared, like Blockbuster, Borders, Builders’ Square, Circuit City, K.B. Toys, Musicland, Montgomery Ward and Woolworth. Others retrench, like RadioShack ’s transformation into a smaller chain of co-branded Sprint retail and electronics stores and Target’s departure from Canada. Still others have shed their bricks and mortar to become exclusive online retailers: Delia’s, Linens ‘n Things, Service Merchandise and Sharper Image. Alco , Anna’s Linens, Body Central, Cache, Coldwater Creek, Deb Shops, and Dots/Simply Fashion, among others, have all departed the bricks and mortar retail landscape over the last 18 months.

Read More from: WSJ.com: Bankruptcy Beat

5 days 9 hours ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? Retailers come and go. Some are iconic brands, while others defined consumer shopping habits and American culture. Failures occur because of increased competition, upheaval in regional and national economies, new technology, poor management and even brand obsolescence. Some brands have disappeared, like Blockbuster, Borders, Builders’ Square, Circuit City, K.B. Toys, Musicland, Montgomery Ward and Woolworth. Others retrench, like RadioShack ’s transformation into a smaller chain of co-branded Sprint retail and electronics stores and Target’s departure from Canada. Still others have shed their bricks and mortar to become exclusive online retailers: Delia’s, Linens ‘n Things, Service Merchandise and Sharper Image. Alco , Anna’s Linens, Body Central, Cache, Coldwater Creek, Deb Shops, and Dots/Simply Fashion, among others, have all departed the bricks and mortar retail landscape over the last 18 months.

Read More from: WSJ.com: Bankruptcy Beat

5 days 9 hours ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? As the saying goes, “buyer beware.” But is it reasonable to expect the average customer to consider the creditworthiness of a retailer when buying an item or purchasing a gift card? In most cases, the customer can return the item or use the gift card, but in the case of a bankruptcy—particularly a liquidation—all bets are off. In a bankruptcy, the relationship between a retailer and its customers can fundamentally change. If a retailer is going to be restructured and continue in business, the debtor often asks the bankruptcy court to protect its customers by allowing the retailer to honor its previous obligations with them. To preserve the value of the business, it’s in the retailer’s best interest to maintain customer loyalty and thus future sales.

Read More from: WSJ.com: Bankruptcy Beat

5 days 10 hours ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? As the saying goes, “buyer beware.” But is it reasonable to expect the average customer to consider the creditworthiness of a retailer when buying an item or purchasing a gift card? In most cases, the customer can return the item or use the gift card, but in the case of a bankruptcy—particularly a liquidation—all bets are off. In a bankruptcy, the relationship between a retailer and its customers can fundamentally change. If a retailer is going to be restructured and continue in business, the debtor often asks the bankruptcy court to protect its customers by allowing the retailer to honor its previous obligations with them. To preserve the value of the business, it’s in the retailer’s best interest to maintain customer loyalty and thus future sales.

Read More from: WSJ.com: Bankruptcy Beat

5 days 10 hours ago
A recent FCC ruling lumps legitimate businesses in with the telemarketing abusers and will hold banks to unrealistic standards.

Read More from: BankThink

5 days 11 hours ago
Do shoppers suffer too much in bankruptcy, or should they be expected to share the pain? As a general rule, shoppers do better than other unsecured creditors in bankruptcy because companies want to take care of their loyal customers. Warranty programs, return policies, gift cards and other similar customer loyalty programs are usually assumed and honored in a restructuring. The one area where shoppers have a realistic concern is in the area of data collection. Many companies today collect and hold significant data on their customers that, in the event of a sale in bankruptcy to a third party, can increase recoveries to creditors and other stakeholders. Not surprisingly, shoppers often do not want that data sold. Coming to the right answer requires a balancing of the legitimate privacy expectations of a shopper against the goal of maximizing the value of the estate for all stakeholders. On balance, I believe the sale of this information along with the rest of the business to a third-party buyer should be permitted so long as the sale in bankruptcy ensures that there are certain necessary checks in place. While not an exhaustive list, the following protections may help:

Read More from: WSJ.com: Bankruptcy Beat

5 days 11 hours ago
Authored by Robert E. Pinder of Rogers TowersIt’s official – TRID will take effect on October 3, 2015. As we have previously discussed, ever since the Dodd-Frank Act mandated new, regime-changing, mortgage disclosures, the banking industry has been diligently preparing for the day that the Consumer Financial Protection Bureau (CFPB) implements a Truth-in-Lending Act (TILA)/Real Estate Settlement Procedures Act (RESPA) Integrated Mortgage Disclosures Rule – and now we know that that day will be October 3, 2015. TRID was originally slated to go into effect on August 1, 2015 but, on June 17, 2015, CFPB Director Richard Cordray issued a statement proposing a delay of TRID’s effective date until October 1, 2015. Then, on June 24, 2015, the CFPB followed up on the Director’s statement by issuing a proposed rule that would extend TRID’s effective date until October 3, 2015 (the additional 2 day delay allowed for a Saturday implementation, a schedule preferred by industry stakeholders).

Read More from: Florida Banking Law Blog

5 days 11 hours ago
Wall Street Journal Hillary Clinton's connections to UBS, which has made donations to the family's charitable foundation, comes under the spotlight in a lengthy article. While secretary of state, Clinton worked out a deal between UBS and the Internal Revenue Service; the IRS was trying to obtain information on Americans suspected of trying to dodge taxes through secret Swiss bank accounts. Following Clinton's involvement in the matter, which was seen to have greatly helped UBS, theÂ...

Read More from: BankThink

5 days 12 hours ago
Here's an opportunity to supervise a consumer financial protection clinic that has done some great work - information on the position and how to apply here

Read More from: Credit Slips

5 days 13 hours ago
John Greim/LightRocket/Getty Images
A bankruptcy judge won’t let Caesars Entertainment quickly appeal a ruling that lets lawsuits move ahead against its parent company. 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.”) Optim Energy LLC won approval of its bankruptcy-exit plan, WSJ reports. A bankruptcy judge approved a settlement with Bernard Madoff trustee Irving Picard that will give investment firm Plaza Investments International Ltd. at least $58 million, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

5 days 13 hours ago
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.
6 days 3 hours 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
6 days 6 hours ago

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