ABI Blog Exchange

A RadioShack sign is viewed at a location in the Eastern Market neighborhood of Washington, D.C. This location is not scheduled to shut down in the company’s Chapter 11 bankruptcy.
Melanie Cohen
Hedge fund Standard General LP will lead the bidding at a bankruptcy auction of 1,700 or more RadioShack stores, as the electronics retailer tries to save some of its struggling business. Read the Daily Bankruptcy Review article in 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.”)

Read More from: WSJ.com: Bankruptcy Beat

6 days 9 hours ago
A RadioShack sign is viewed at a location in the Eastern Market neighborhood of Washington, D.C. This location is not scheduled to shut down in the company’s Chapter 11 bankruptcy.
Melanie Cohen
Hedge fund Standard General LP will lead the bidding at a bankruptcy auction of 1,700 or more RadioShack stores, as the electronics retailer tries to save some of its struggling business. Read the Daily Bankruptcy Review article in 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.”)

Read More from: WSJ.com: Bankruptcy Beat

6 days 9 hours ago
The Massachusetts senator recently argued that community banks have little need for regulatory relief. But a closer look at recent FDIC data shows that the health of small banks has taken a turn for the worse in the aftermath of Dodd-Frank.

Read More from: BankThink

6 days 9 hours ago
Receiving Wide Coverage ... Morgan Stanley Strikes Deal with DOJ: Morgan Stanley has agreed to pay $2.6 billion to settle charges that it misled investors about the quality of mortgage-backed securities during the run-up to the financial crisis. The deal will make a significant dent in the bank's 2014 earnings, lowering net income by $2.7 billion, or more than a third. The amount of the penalty was higher than analysts expected, according to the Wall Street...

Read More from: BankThink

6 days 10 hours ago
Who’s the best Los Angeles Bankruptcy Lawyer? No single lawyer is. The best Bankruptcy Lawyer is like a good pair of shoes. You need the right fit. You want to feel comfortable with your lawyer. You want confidence in your lawyer. You want a lawyer who has experience with your type of case. Specializing is a good idea. The best Los Angeles bankruptcy lawyer is usually a specialist. Would you go to an injury lawyer for bankruptcy help? Bankruptcy is a legal specialty. The State Bar of California certifies bankruptcy specialists. It’s hard to become a Certified Bankruptcy Specialist. California’s requirement are found HERE . These involve experience.  Also, specialized education. The lawyer must pass a Bankruptcy Bar Exam. The lawyer must first have 5 years of bankruptcy law practice.  It’s a VERY difficult exam. The passage rate is always about 50%. There are about 225,000 lawyers in California. Every lawyer is allowed to handle bankruptcy cases. But there are only 117 Certified Bankruptcy Specialists. Looking for The Best Bankruptcy Lawyer? Limit your search to Certified Specialists. That eliminates 224,883 other lawyers.   Who Is the Best Bankruptcy Lawyer?

Read More from: Los Angeles Bankruptcy Blog

6 days 14 hours ago
I'm thrilled that Jay Westbrook has finally come into blogosphere with his posts on Single-Point-of-Entry.  I've blogged a little on SPOE already, but I want to highlight what I still think are two critical problems with SPOE.  In keeping with Jay's spirit, let's call them "Backdoor Bailouts" and "Funding Fantasies".  Is SPOE a Bailout Under Another Name? There is a fundamental tension in financial institution resolution between minimizing disruptive spillovers from firm failure and avoiding the moral hazard and taxpayer expense of government picking up the tab. To wit, if the US government were to simply guarantee all obligations of financial institutions, we wouldn't really care about bank failure. All bank debts would be equivalent to claims against the government. But the idea that the US government would explicit guarantee the entire financial system seems preposterous (except that we basically did that a few years ago).  It seems preposterous because we know it would engender enormous moral hazard and put taxpayers on the hook:  privatized gains and socialized losses.  

Read More from: Credit Slips

6 days 19 hours ago
Senator Elizabeth Warren surprised a lot of people by laying into Federal Reserve Board Chair Janet Yellen as hard as she ever laid into Timothy Geithner. I think this was a really important exchange. But its easy to miss exactly what's being communicated in it. Senator Warren's comments can basically be translated as follows:   "Janet, I like you, but let me level with you. You need to replace your General Counsel, pronto. He's not on the same page about regulatory reform, and it's a problem. There's really no place for obstruction by Fed staffers, even the General Counsel. It's time for him to go." There was a further subtext, though, that I think should be highlighted, and that's "What you do about your GC is a shibboleth about whether you're serious on regulatory reform." One of the huge issues left largely untouched by the Dodd-Frank Act was the problem of deregulation by regulators (as opposed to Congress).  This regulatory deregulation took a lot of forms, from failure to enforce existing laws to active campaigns to preempt states from enforcing laws.  Dodd-Frank addressed the most egregious problem by killing off the Office of Thrift Supervision, but it left the OCC untouched (other than pushing back on preemption standards) and the Fed intact.  

Read More from: Credit Slips

6 days 20 hours ago
The risks to distressed debt investors who purchase the debt of a borrower without being eligible to do so under applicable credit documents are not illusory.  Recent cases like Meridian Sunrise Village, which we wrote about here, illustrate why it is important for investors to review underlying credit documents before pulling the trigger on an investment.   The Loan Syndications and Trading Association (LSTA) makes that job somewhat easier.  One of the LSTA’s core functions is standardizing loan documentation.  When parties to a loan have documented their transaction using the LSTA’s Model Credit Agreement Provisions (MCAPs), the outcome can be more predictable than for transactions documented on bespoke forms.  Moreover, such transactions are easier for potential lenders to review if they are familiar with MCAP provisions. The LSTA Recently Released Revised Model Credit Agreement Provisions (MCAPs)
1 week 2 hours ago
Rep. Jeff Greer has introduced House Bill 470 in the Kentucky House of Representatives. The bill provides for non judicial foreclosure. Kentucky homeowners need your help. The bill provides for deeds of trust. The beneficiary (bank) may sell the property without filing a lawsuit. The trustee can be a licensed attorney or a financial institution. The trustee can be replaced by the unilateral decision of the beneficiary (bank). The bill provides for the trustee writing three letters to the homeowner and three attempts to contact the homeowner by phone. No appraisal of the property is required. There is no right of redemption. The sale can be a public sale or private sale. If the sale is a public sale no advertisement of the sale or notice the general is required. If the homeowner feels he is aggrieved, it is up to him to file a lawsuit to stop the foreclosure. The homeowner can not purchase the property at the sale for less than the full amount he owes including trustee fees and the cost of the sale. This bill is very harmful to the consumer. Please contact your State Representative and State Senator. You can call the Legislative Message Center at 1-800-372-7181 to express your opinion to your legislator. (license)
1 week 3 hours ago
In re Trump Entm’t Resorts, Inc., No. 14-12103 (KG), WL (Bankr. D. Del. Feb. 20, 2015) On February 20, 2015, the Honorable Kevin Gross granted relief from the automatic stay so that Donald and Ivanka Trump (the “Trumps”) may continue their action against Trump Entertainment Resorts, Inc. and certain affiliated debtors (the “Debtors”) seeking to terminate a trademark license agreement (the “Trademark License Agreement”) and remove, among other things, the “Trump” name from the Debtors’ buildings.  Following Third Circuit precedent, Judge Gross ruled that under the “hypothetical test” the Trademark License Agreement could not be assumed or assigned by the Debtors under Bankruptcy Code section 365(c)(1), and therefore, “cause” existed under section 362(d)(1) to grant stay relief. Read More › Tags: Assumption & Assignment, Automatic Stay, Executory Contracts & Unexpired Leases

Read More from: Delaware Bankruptcy Insider

1 week 7 hours ago
By prosecuting executives responsible for banks' misdeeds, the DOJ can curtail illegal activity and restore public trust in big banks Â-- and in the law itself.

Read More from: BankThink

1 week 7 hours ago
Although you may not know who Paul David Hewson is, chances are, you’ve heard of his alter-ego, Bono – front man for the Irish rock/pop band U2. Even if you don’t particularly like his brand of music, you can’t deny that Bono has taken U2 to dizzying heights of fortune and glory (with over 150 million albums sold worldwide and 22 Grammy Awards won), but he didn’t stop there. Read more here.    
1 week 7 hours ago
Powerful Collection Tool A very powerful collection tool is for a creditor to freeze a debtor’s bank account. Most large creditor law firms and other collection lawyers have the ability to find out where you work and where you bank. Once a creditor has obtained a judgment and has knowledge as to where you bank,+ Read More The post How To Legally Unfreeze A Frozen Bank Account appeared first on David M. Siegel.
1 week 7 hours ago
Credit Score Concerns Everybody is concerned with their credit score these days. Everybody wants to rebound as quickly as possible after a bankruptcy case. A better credit score will indicate that you are a better risk for future credit opportunities. The interest rate that you can garner will be better if your score is better+ Read More The post Credit Bureaus Should Reflect Payments For Non-Reaffirmed Mortgage Debt appeared first on David M. Siegel.
1 week 7 hours ago
Paula Manago, of Cliffside Park, N.J., gathers shells along the ocean near the Revel Hotel Casino early Tuesday, Sept. 2, 2014, in Atlantic City, N.J. The casino section of the Revel closed at 6:30 a.m. Tuesday. Revel is shutting down a little over two years after opening with high hopes of revitalizing Atlantic City’s struggling gambling market. (AP Photo/Mel Evans) Published Credit: Associated Press
Associated Press
The Revel Casino Hotel has struck a new $82 million deal to sell the beleaguered Atlantic City. N.J., resort to Florida-based developer Glenn Straub. 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.”)

Read More from: WSJ.com: Bankruptcy Beat

1 week 8 hours ago
Paula Manago, of Cliffside Park, N.J., gathers shells along the ocean near the Revel Hotel Casino early Tuesday, Sept. 2, 2014, in Atlantic City, N.J. The casino section of the Revel closed at 6:30 a.m. Tuesday. Revel is shutting down a little over two years after opening with high hopes of revitalizing Atlantic City’s struggling gambling market. (AP Photo/Mel Evans) Published Credit: Associated Press
Associated Press
The Revel Casino Hotel has struck a new $82 million deal to sell the beleaguered Atlantic City. N.J., resort to Florida-based developer Glenn Straub. 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.”)

Read More from: WSJ.com: Bankruptcy Beat

1 week 8 hours ago
Paula Manago, of Cliffside Park, N.J., gathers shells along the ocean near the Revel Hotel Casino early Tuesday, Sept. 2, 2014, in Atlantic City, N.J. The casino section of the Revel closed at 6:30 a.m. Tuesday. Revel is shutting down a little over two years after opening with high hopes of revitalizing Atlantic City’s struggling gambling market. (AP Photo/Mel Evans) Published Credit: Associated Press
Associated Press
The Revel Casino Hotel has struck a new $82 million deal to sell the beleaguered Atlantic City. N.J., resort to Florida-based developer Glenn Straub. 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.”)

Read More from: WSJ.com: Bankruptcy Beat

1 week 8 hours ago
In an earlier post I described the FDIC’s proposed SPOE approach to resolution of SIFI banks and other financial institutions under Title II of Dodd-Frank. That post discussed two of the three components of SPOE: control of the process by the regulator and no bailout for management or owners. This post lays out the role of the third component, the “forlorn hope” debt. That debt is unsecured debt owed to a bank holding company (BHC) and predestined to get little or nothing in case of the failure of the BHC. It serves in effect as a debt reserve to buffer the financial distress of the bank group. By being dumped, it would make the group as a whole solvent. By contrast, legislation already passed by the House would ignore the need for the reserve, thus setting up another bank bailout. The reserve debt component of SPOE awaits a strong rule from the Fed to make it a reality. This post discusses what the rule must do.

Read More from: Credit Slips

1 week 9 hours ago
Congress should end Puerto Rico's exclusion from federal bankruptcy protection Â-- but it's unfair to leave the territory's existing creditors in the lurch.

Read More from: BankThink

1 week 9 hours ago
Receiving Wide Coverage ... The Oracle of D.C.: The papers offer varying interpretations of Federal Reserve chair Janet Yellen's testimony before the Senate Banking Committee. The New York Times says Yellen sought to give the central bank leeway in the timeline of its interest-rate increase. Fed officials could firm up plans to raise rates as soon as June at a March policy meeting, but "Yellen emphasized that patience remained the Fed's watchword, and that the persistence...

Read More from: BankThink

1 week 10 hours ago

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