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The bankruptcy trustee winding down the parent of Downey Savings & Loan has reached a settlement with the Federal Deposit Insurance Corp., closing the books on a legal fight over the rights to more than $444 million in tax refunds and other assets. 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.”) Oil and gas producer Saratoga Resources Inc. filed for chapter 11 protection, The Wall Street Journal reports. According to Bloomberg, Great Atlantic & Pacific Tea Co. is considering its second bankruptcy in five years.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
The bankruptcy trustee winding down the parent of Downey Savings & Loan has reached a settlement with the Federal Deposit Insurance Corp., closing the books on a legal fight over the rights to more than $444 million in tax refunds and other assets. 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.”) Oil and gas producer Saratoga Resources Inc. filed for chapter 11 protection, The Wall Street Journal reports. According to Bloomberg, Great Atlantic & Pacific Tea Co. is considering its second bankruptcy in five years.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Receiving Wide Coverage ... Brushing the Dust Off IT: Banks around the world use IT systems are basically antiques, and recent tech glitches at Royal Bank of Scotland and Commonwealth Bank of Australia are making that problem increasingly difficult to ignore. The Financial Times reports that part of the issue is that three-quarters of banks' tech spending has to go toward the cost of keeping the old, complex systems running, leaving them with just a fractionÂ...

Read More from: BankThink

1 week 4 days ago
Consumer prices rose in May by the largest amount in more than two years, thanks mainly to a spike in gas prices – the biggest in six years. Aside from energy, prices remained flat, the U.S. Bureau of Labor Statistics reported Thursday. Read more here.
1 week 4 days ago
Sale signs greeted customers walking to the now-closed RadioShack at Valley View Plaza in Marion, Ind., on Friday, Feb. 20.
The Chronicle-Tribune/Associated Press
Don’t mess with Texas—especially not with its shoppers. As we reported, Texas Attorney General Ken Paxton on Thursday sued RadioShack in bankruptcy court over approximately $43 million in unused gift cards. In the lawsuit, Mr. Paxton says the retailer hasn’t notified gift-card holders that they need to file claims in bankruptcy in order to be repaid for the cards. He wants to the right to file such claims on behalf of Texas residents, a right he says should be extended to other states’ attorneys general. He also wants the claims to be given priority status when it comes time to dole out payments.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Sale signs greeted customers walking to the now-closed RadioShack at Valley View Plaza in Marion, Ind., on Friday, Feb. 20.
The Chronicle-Tribune/Associated Press
Don’t mess with Texas—especially not with its shoppers. As we reported, Texas Attorney General Ken Paxton on Thursday sued RadioShack in bankruptcy court over approximately $43 million in unused gift cards. In the lawsuit, Mr. Paxton says the retailer hasn’t notified gift-card holders that they need to file claims in bankruptcy in order to be repaid for the cards. He wants to the right to file such claims on behalf of Texas residents, a right he says should be extended to other states’ attorneys general. He also wants the claims to be given priority status when it comes time to dole out payments.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Members of Unite Here Local 54, which represents the Trump Taj Mahal and other Atlantic City, N.J., cooks, bartenders, waitresses and bellmen, protest benefit cuts along with members of other unions in front of the Trump Taj Mahal in Atlantic City on Wednesday, June 18, 2015.
Joseph Checkler
About 2,000 union workers lined the Atlantic City Boardwalk in New Jersey Wednesday, protesting deep cuts in health care and other benefits to Trump Taj Mahal workers, which they blame on soon-to-be owner Carl Icahn. The protesters, some holding colorful anti-Icahn signs, then marched in two separate groups around the Taj Mahal building, blocking the street where cars enter the casino’s property. About 75 workers in neon shirts then sat down in front of the entrance in an act of civil disobedience before Atlantic City police officers who were aware of the protest arrested all of them.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Members of Unite Here Local 54, which represents the Trump Taj Mahal and other Atlantic City, N.J., cooks, bartenders, waitresses and bellmen, protest benefit cuts along with members of other unions in front of the Trump Taj Mahal in Atlantic City on Wednesday, June 18, 2015.
Joseph Checkler
About 2,000 union workers lined the Atlantic City Boardwalk in New Jersey Wednesday, protesting deep cuts in health care and other benefits to Trump Taj Mahal workers, which they blame on soon-to-be owner Carl Icahn. The protesters, some holding colorful anti-Icahn signs, then marched in two separate groups around the Taj Mahal building, blocking the street where cars enter the casino’s property. About 75 workers in neon shirts then sat down in front of the entrance in an act of civil disobedience before Atlantic City police officers who were aware of the protest arrested all of them.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Authored by Robert E. Pinder of Rogers TowersThe banking industry has spent the last two years preparing for the Consumer Financial Protection Bureau’s implementation of the Truth-in-Lending Act (TILA)/Real Estate Settlement Procedures Act (RESPA) Integrated Mortgage Disclosures Rule – referred to by the acronym “TRID.” (78 FR 79730). TRID was scheduled to become effective on August 1, 2015 by implementing significant changes for lenders providing disclosures to consumers who are applying for, and closing, a mortgage loan.  TRID modifies three decades of federal law by changing the timing and format of disclosures made during the mortgage process. A key change under TRID is the requirement that two new consumer forms be used for the mortgage transaction (replacing four forms used under the old TILA/RESPA regime) – the new forms are the Loan Estimate and the Closing Disclosure. Acting under a mandate contained within the Dodd-Frank Act, the CFPB issued the final TRID rule in November 2013. The CFPB’s stated purpose for TRID was to “combine two existing disclosure regimes under TILA and RESPA and make mortgage disclosure easier for consumers to understand and use.” Despite repeated requests to delay TRID’s implementation date, the CFPB had refused to postpone the rule’s effective date.

Read More from: Florida Banking Law Blog

1 week 4 days ago
It's hard to get consumers and merchants to change their behaviors. But eventually the convenience and well-crafted incentives of mobile payments will prompt people to give up the plastic habit.

Read More from: BankThink

1 week 4 days ago
It's hard to get consumers and merchants to change their behaviors. But eventually the convenience and well-crafted incentives of mobile payments will prompt people to give up the plastic habit.

Read More from: BankThink

1 week 4 days ago
In a decision with broad and significant implications for many investors, the Court of Appeals for the Fifth Circuit has held that claims arising under a guarantee of a security issued by an affiliate can be subject to mandatory subordination pursuant to section 510(b) of the Bankruptcy Code.  While the decision may come as a surprise to some investors who assume that guarantee claims, unlike claims for securities fraud, are not subject to mandatory subordination, the decision serves as a critical reminder of the breadth of section 510(b) of the Bankruptcy Code. The case of In re American Housing Foundation, is significant not only for its ultimate holding regarding the subordination of guarantee claims, but also for its analysis of the Bankruptcy Code’s definition of “affiliate.”  Such analysis is in tension with Bankruptcy Court decisions from the District of Delaware and elsewhere. Background In American Housing, the debtor was a nonprofit developer of low-income housing.  To fund many of its developments, the debtor created various single-purpose limited partnerships (LPs).  Interests in these LPs were sold to investors and guaranteed by the debtor.  The debtor (or its wholly-owned subsidiaries) served as the LPs’ general partners.
1 week 4 days ago
Millennials are individuals first and millennials second. Demographers and sociologists may like to group consumers, but when bankers market to the average instead of the individual, it's a losing strategy.

Read More from: BankThink

1 week 4 days ago
Baker Botts L.L.P. v. ASARCO LLC, 576 U.S. ---- (2015) The Supreme Court made a significant ruling that will encourage leveraged fee attacks on estate professionals in bankruptcy cases.  In an Opinion delivered by Justice Thomas, and joined by five other Justices, the High Court ruled that Bankruptcy Code section 330(a)(1) does not permit a bankruptcy court to award estate professionals fees for work performed in defending a fee application. Read More › Tags: Retention and Compensation

Read More from: Delaware Bankruptcy Insider

1 week 4 days ago
The Supreme Court has not handled its recent major bankruptcy decisions well. The jurisdictional confusion engendered by its 2011 decision in Stern v. Marshall was only partially clarified by this term’s opinion in Wellness International Network v. Sharif. The Court’s ruling this week in Baker Botts v. Asarco, while narrower, stands as another example of obtuse judicial reasoning that will create unnecessary problems for practitioners and bankruptcy court judges.

Read More from: Bankruptcy Law Insights

1 week 4 days ago
Sonja Morgan of “The Real Housewives of New York” attends the NBCUniversal Cable Entertainment 2015 Upfront in New York in May.
Evan Agostini/Associated Press
Four-and-a-half years after “Real Housewives of New York” star Sonja Morgan filed for bankruptcy, her case is finally coming to an almost-happy ending as creditors get paid and the reality-TV star gets to keep her multimillion-dollar New York townhome. Ms. Morgan put the majority of her bankruptcy case behind her last week when her bankruptcy-exit plan went into effect, paying off her creditors and allowing her to begin closing out her case. After a brief extension of the payout date as attorneys waited for Ms. Morgan’s check from Bravo to clear, the bankruptcy plan took effect June 9. The estate gathered money from the proceeds of the liquidation of Ms. Morgan’s property in Ramatuelle, France, for $5.7 million, $1.2 million from Ms. Morgan’s savings and a new $3.3 million mortgage on her New York home to pay her creditors. Those creditors include Hannibal Pictures Inc., with whom Ms. Morgan became embroiled after a failed movie project.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Sonja Morgan of “The Real Housewives of New York” attends the NBCUniversal Cable Entertainment 2015 Upfront in New York in May.
Evan Agostini/Associated Press
Four-and-a-half years after “Real Housewives of New York” star Sonja Morgan filed for bankruptcy, her case is finally coming to an almost-happy ending as creditors get paid and the reality-TV star gets to keep her multimillion-dollar New York townhome. Ms. Morgan put the majority of her bankruptcy case behind her last week when her bankruptcy-exit plan went into effect, paying off her creditors and allowing her to begin closing out her case. After a brief extension of the payout date as attorneys waited for Ms. Morgan’s check from Bravo to clear, the bankruptcy plan took effect June 9. The estate gathered money from the proceeds of the liquidation of Ms. Morgan’s property in Ramatuelle, France, for $5.7 million, $1.2 million from Ms. Morgan’s savings and a new $3.3 million mortgage on her New York home to pay her creditors. Those creditors include Hannibal Pictures Inc., with whom Ms. Morgan became embroiled after a failed movie project.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Shawn Thew/European Pressphoto Agency
The former RadioShack won court approval of the last major transactions of its bankruptcy case: more than $50 million worth of real estate in Texas, California and Maryland. 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.”) Taylor Corp. is poised to take over Standard Register Co. in a $307 million deal, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

1 week 5 days ago
Shawn Thew/European Pressphoto Agency
The former RadioShack won court approval of the last major transactions of its bankruptcy case: more than $50 million worth of real estate in Texas, California and Maryland. 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.”) Taylor Corp. is poised to take over Standard Register Co. in a $307 million deal, DBR (sub. req.) reports.

Read More from: WSJ.com: Bankruptcy Beat

1 week 5 days ago

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