ABI Blog Exchange

As has been reported, the U.S. Court of Appeals for the Third Circuit has decided that Wal-Mart does not have to include in its 2015 proxy materials a shareholder proposal requesting that the Compensation, Nominating and Governance Committee charter be amended to add oversight of implementation of policies that would evaluate whether the company should sell certain types of guns that the proponent argues endangers public safety, has the substantial potential to impair the company's reputation or would be considered offensive to the values that are integral to the company’s brand.

Read More from: WSJ.com: Bankruptcy Beat

6 days 4 hours ago
Creditors of Siga Technologies Inc. want to investigate the role the drug maker’s executives played in the PharmAthene Inc. dispute that drove Siga into bankruptcy. Read 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.”) Puerto Rico’s government and investors are enlisting ex-International Monetary Fund officials to help resolve a debt crisis, The Wall Street Journal reports. Oaktree Capital Management is nearing the finish line in raising a pair of distressed debt funds, WSJ reports.

Read More from: WSJ.com: Bankruptcy Beat

6 days 4 hours ago
Creditors of Siga Technologies Inc. want to investigate the role the drug maker’s executives played in the PharmAthene Inc. dispute that drove Siga into bankruptcy. Read 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.”) Puerto Rico’s government and investors are enlisting ex-International Monetary Fund officials to help resolve a debt crisis, The Wall Street Journal reports. Oaktree Capital Management is nearing the finish line in raising a pair of distressed debt funds, WSJ reports.

Read More from: WSJ.com: Bankruptcy Beat

6 days 4 hours ago
Years ago, student loans were easier to deal with. You graduated, got a job, and paid off your loans in 10 years – sooner, if you got a good enough job. But even for people with “normal” jobs, repaying a student loan was a short-term inconvenience that led to a better future. Nowadays it’s not so simple. College is more expensive than ever, and we’re forced to use student loans to cover the majority of it. By the time we graduate, we’re looking at tens of thousands of dollars in debt. This new reality requires a new way to attack the problem of student loan repayment. Without new rules, we’re never going to win the student loan wars. Luckily, we’ve got a roadmap for you to follow. Start Repayment Immediately When you finish school, you get six months before the federal student loans come calling. But you can end that forbearance as soon as you part ways with the school. When you start paying faster, you finish paying faster. Even cutting out six months of interest can mean a lot. Don’t Go Standard When you enter repayment, you can choose your repayment schedule. If you don’t, the servicer will put you into the standard 10-year repayment schedule. If you’re smart, you won’t let that happen. Skip right to one of the income dependent payment plans. These plans let you adjust your monthly payments based on a percentage of your income.
6 days 11 hours ago
In a letter to SEC Chair White, the U.S. Chamber of Commerce, through the Center for Capital Markets Competitiveness (CCMC), has expressed “significant concern” regarding the enforcement action that the SEC took against KBR regarding whistleblowers and the company’s confidentiality agreements.  Our memo on the KBR action is here.
6 days 12 hours ago
Per www.thestreet.com: By | 04/09/15 - 05:33 PM EDT NEW YORK (TheDeal) -- Caesars Entertainment  (CZR) will once again have to provide reasons for not agreeing to an involuntary bankruptcy petition filed by certain junior lenders ahead of its voluntary petition. Judge A. Benjamin Goldgar of the U.S. Bankruptcy Court for the Northern District of Illinois in Chicago on April 29 is scheduled to preside over a hearing on the matter.In a filing earlier this week, the official Committee of Unsecured Creditors said the Las Vegas gaming company should consent to an involuntary petition filed in Delaware.

Read More from: The COMI

6 days 19 hours ago
Per www.globalinsolvency.com:Fri., April 10, 2015  Canadian oil and gas producer Calvalley Petroleum Inc. said on Thursday it will liquidate and restructure due to the political crisis in Yemen, where it has almost all of its operations, Reuters reported. The Calgary-based junior has a 50 percent working interest in a block in Yemen's Sayun-Masila Basin, producing 3,700 barrels per day gross, but was forced to shut down production on Tuesday as conflict in the Middle Eastern country escalated. The block is owned by the Yemeni government. Saudi Arabia and Arab allies have launched air strikes against the Iran-allied Houthi movement in Yemen, which has taken most of the country and forced President Abd-Rabbu Mansour Hadi to flee to Riyadh. The company said its efforts to diversify out of Yemen or sell itself or its assets had not resulted in "compelling" opportunities. Under the restructuring, shareholders will have options to buy shares in the company's unlisted unit, Calvalley Energy Ltd. Those who decide not to will receive cash. Calvalley's financial chief said both options are better than trying to sell one's shares.For more, see: http://www.reuters.com/article/2015/04/09/calvalley-restructuring-idUSL4N0X657120150409?feedType=RSS&feedName=bankruptcyNews

Read More from: The COMI

6 days 23 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 Section 552(b) and the “Equities of the Case” exception. Section 552(b) addresses the effect of pre-petition liens on post-petition property. Section 552(a) states the general rule: post-petition property is not subject to a pre-petition lien. Section 552(b) states two exceptions: a pre-petition lien continues as to post-petition proceeds  and post-petition rents from pre-petition collateral. In turn, the two exceptions are subject to an exception: the court, after notice and a hearing, can treat the pre-petition lien differently based on the “equities of the case.” Basically, courts will analyze the facts of a particular case to determine whether a secured creditor’s pre-petition lien should be limited, altered, or terminated on account of estate expenditures that enhance such creditor’s position (e.g. the use of otherwise unencumbered estate resources to improve a creditor’s position). One goal is avoiding windfalls for secured creditors.

Read More from: Plan Proponent

1 week 1 hour ago
In a recent update at his blog Musings of an Entrepreneur, Fabian Grinda, argues that low interest rates, many dollars chasing relatively few deals, and resources available from incubators, are working in tandem to make companies stay private longer. Read more here.
1 week 1 hour ago
Stanziale v. Car-Ber Testing, Inc. (In re Conex Holdings, LLC), --- B.R. ---- (D. Del. Mar. 23, 2015) This Memorandum involves a request for direct appeal from a Bankruptcy Court Order granting summary judgment in favor of Car-Ber Testing, Inc. (the “Appellee”) on its new value defense to certain preferential payments received from Conex Holdings, LLC (with its affiliated entities, the “Debtors”).  Delaware’s District Court denied the request of the chapter 7 trustee (the “Appellant”) despite Appellee joining in the request, ruling that Appellant had not shown that (i) no controlling authority or matter of public importance existed; (ii) conflicting decisions required resolution; or that (iii) direct appeal would materially advance the progress of the case.  28 U.S.C. § 158(d). Read More › Tags: Direct Certification, Practice Points

Read More from: Delaware Bankruptcy Insider

1 week 3 hours ago
This is a joint post by Mark Weidemaier and Mitu Gulati. Reports indicate that the IMF's package of financial aid to Ukraine could be in trouble if Ukraine can't or won't pay its $3-billion-plus debt to Russia. The reason is that IMF policy forbids "lending into arrears" to official bilateral creditors. In theory, the policy gives Russia a potential veto over the rescue package. We think the IMF can't--well, certainly it shouldn't, and probably it won't--allow Russia to exercise that veto.

Read More from: Credit Slips

1 week 5 hours ago
In re SS Body Armor I, Inc., No. 10-11255 (CSS), 2015 WL 1523775 (Bankr. D. Del. Apr. 1, 2015)

Read More from: Delaware Bankruptcy Insider

1 week 1 day ago
Tony Gutierrez/Associated Press
RadioShack is going back to basics, but it won’t be taking thousands of Defense Mobile cellphones with it. The electronics retailer is looking to unload more than 17,000 Defense Mobile prepaid cellphones to Quality One Wireless for about $1.8 million, according to court papers. Defense Mobile, led by Virgin Mobile USA cofounder Peter Lurie, sells inexpensive cellphones for active duty military service members, their families and veterans on Sprint ’s network. At the time of its bankruptcy, RadioShack was the exclusive national retailer for Defense Mobile. But as the company’s lawyers said, the mobile phones were a tough sell. “These handsets are a new product offering, and the debtors have not had success selling the handsets in a large volume,” RadioShack lawyers said. A representative for Defense Mobile couldn’t be reached for comment.

Read More from: WSJ.com: Bankruptcy Beat

1 week 1 day ago
Tony Gutierrez/Associated Press
RadioShack is going back to basics, but it won’t be taking thousands of Defense Mobile cellphones with it. The electronics retailer is looking to unload more than 17,000 Defense Mobile prepaid cellphones to Quality One Wireless for about $1.8 million, according to court papers. Defense Mobile, led by Virgin Mobile USA cofounder Peter Lurie, sells inexpensive cellphones for active duty military service members, their families and veterans on Sprint ’s network. At the time of its bankruptcy, RadioShack was the exclusive national retailer for Defense Mobile. But as the company’s lawyers said, the mobile phones were a tough sell. “These handsets are a new product offering, and the debtors have not had success selling the handsets in a large volume,” RadioShack lawyers said. A representative for Defense Mobile couldn’t be reached for comment.

Read More from: WSJ.com: Bankruptcy Beat

1 week 1 day ago
Tony Gutierrez/Associated Press
RadioShack is going back to basics, but it won’t be taking thousands of Defense Mobile cellphones with it. The electronics retailer is looking to unload more than 17,000 Defense Mobile prepaid cellphones to Quality One Wireless for about $1.8 million, according to court papers. Defense Mobile, led by Virgin Mobile USA cofounder Peter Lurie, sells inexpensive cellphones for active duty military service members, their families and veterans on Sprint ’s network. At the time of its bankruptcy, RadioShack was the exclusive national retailer for Defense Mobile. But as the company’s lawyers said, the mobile phones were a tough sell. “These handsets are a new product offering, and the debtors have not had success selling the handsets in a large volume,” RadioShack lawyers said. A representative for Defense Mobile couldn’t be reached for comment.

Read More from: WSJ.com: Bankruptcy Beat

1 week 1 day ago
In a unanimous decision, the en banc Fifth Circuit Court of Appeals walked back a prior precedent which mandated an identifiable, tangible and material benefit before professionals employed in bankruptcy cases could be compensated.   No. 13-50075, Barron & Newburger, P.C. v. Texas Skyline, et al (5th Cir. 4/9/15).    You can read the opinion here.What Happened The case stemmed from the chapter 11 bankruptcy of a businessman whose case was ultimately converted to chapter 7.   When the Debtor's counsel filed its fee application, both a creditor and the U.S. Trustee objected.   Relying upon In re Pro-Snax Distributors, Inc.,  157 F.3d 414 (5th Cir. 1998), the Bankruptcy Court denied 85% of the requested fees on the basis that they did not produce tangible results (although a portion of the fees were denied for other reasons).    The District Court affirmed.  2013 U.S. Dist. LEXIS 188262 (W.D. Tex. 2013).  A panel of the Fifth Circuit affirmed the case based on the prior precedent but recommended that Pro-Snax be reconsidered by the en banc court.  758 F.3d 693 (5th Cir. 2014).   The Court agreed to grant en banc review.   771 F.3d 820 (5th Cir. 2014).   In the en banc briefing, the U.S. Trustee changed its position and agreed with the Debtor that Pro-Snax applied an improper standard.
1 week 1 day ago
setSandboxHeight = function(id, height) { if ( height > 5000 ) return; document.getElementById("ifrm_" + id).height = height+ "px"; } To get out of jail, Jeremy Alcede will have to give up the passwords to the Facebook and Twitter accounts for the Texas gun shop he recently lost in bankruptcy. So far, he has refused. Late last week, a bankruptcy judge ordered Mr. Alcede—a self-described PR genius and Second Amendment champion who posted anti-Obama rants outside the suburban Houston store—to turn over the passwords to the new owner of Tactical Firearms. Mr. Alcede says the social media sites are his personal property, not the company’s. In response to the judge’s order, the Tactical Firearms Facebook page, which was recently renamed Jeremy Alcede Entrepreneur, posted a video showing Mr. Alcede turning himself into the U.S. Marshals, who put him in handcuffs, on Thursday afternoon. setSandboxHeight = function(id, height) { if ( height > 5000 ) return; document.getElementById("ifrm_" + id).height = height+ "px"; } Judge Jeff Bohm, who ordered the password turnover, said the move is meant to “stop the barrage of vitriol that Mr. Alcede currently posts” on the Facebook page.

Read More from: WSJ.com: Bankruptcy Beat

1 week 1 day ago
setSandboxHeight = function(id, height) { if ( height > 5000 ) return; document.getElementById("ifrm_" + id).height = height+ "px"; } To get out of jail, Jeremy Alcede will have to give up the passwords to the Facebook and Twitter accounts for the Texas gun shop he recently lost in bankruptcy. So far, he has refused. Late last week, a bankruptcy judge ordered Mr. Alcede—a self-described PR genius and Second Amendment champion who posted anti-Obama rants outside the suburban Houston store—to turn over the passwords to the new owner of Tactical Firearms. Mr. Alcede says the social media sites are his personal property, not the company’s. In response to the judge’s order, the Tactical Firearms Facebook page, which was recently renamed Jeremy Alcede Entrepreneur, posted a video showing Mr. Alcede turning himself into the U.S. Marshals, who put him in handcuffs, on Thursday afternoon. setSandboxHeight = function(id, height) { if ( height > 5000 ) return; document.getElementById("ifrm_" + id).height = height+ "px"; } Judge Jeff Bohm, who ordered the password turnover, said the move is meant to “stop the barrage of vitriol that Mr. Alcede currently posts” on the Facebook page.

Read More from: WSJ.com: Bankruptcy Beat

1 week 1 day ago
setSandboxHeight = function(id, height) { if ( height > 5000 ) return; document.getElementById("ifrm_" + id).height = height+ "px"; } To get out of jail, Jeremy Alcede will have to give up the passwords to the Facebook and Twitter accounts for the Texas gun shop he recently lost in bankruptcy. So far, he has refused. Late last week, a bankruptcy judge ordered Mr. Alcede—a self-described PR genius and Second Amendment champion who posted anti-Obama rants outside the suburban Houston store—to turn over the passwords to the new owner of Tactical Firearms. Mr. Alcede says the social media sites are his personal property, not the company’s. In response to the judge’s order, the Tactical Firearms Facebook page, which was recently renamed Jeremy Alcede Entrepreneur, posted a video showing Mr. Alcede turning himself into the U.S. Marshals, who put him in handcuffs, on Thursday afternoon. setSandboxHeight = function(id, height) { if ( height > 5000 ) return; document.getElementById("ifrm_" + id).height = height+ "px"; } Judge Jeff Bohm, who ordered the password turnover, said the move is meant to “stop the barrage of vitriol that Mr. Alcede currently posts” on the Facebook page.

Read More from: WSJ.com: Bankruptcy Beat

1 week 1 day ago
Sometimes dealing with debt can feel like a shell game…you make a payment on one debt at the expense of making a payment or remaining current on another debt.  What are your options to resolve your debt while maintaining a balanced budget?  Learn more about your various options below. At Acclaim Legal Services debt resolution […] The post Debt Relief Blog Series: Determining Your Best Option. Part V: Impact in Your budget appeared first on Acclaim Legal Services, PLLC.

Read More from: Acclaim Legal Services

1 week 1 day ago

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