ABI Blog Exchange

The company behind the in-flight catalog SkyMall filed for Chapter 11 bankruptcy protection Thursday, a victim of evolving rules and technology that now lets airline passengers keep their smartphones and tablets powered up during flight. 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 our homepage, scroll to the bottom and click “try for free.”) A judge on Thursday approved a settlement between the trustee unwinding Lehman Brothers Inc. and Pacific Investment Management Co. that settles $187 million of Pimco’s claims against the brokerage. WSJ has the DBR article here. Canadian oil exploration company Southern Pacific Resource Corp. has sought protection from creditors with an insolvency filing under Canada’s bankruptcy law, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 18 hours ago
The company behind the in-flight catalog SkyMall filed for Chapter 11 bankruptcy protection Thursday, a victim of evolving rules and technology that now lets airline passengers keep their smartphones and tablets powered up during flight. 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 our homepage, scroll to the bottom and click “try for free.”) A judge on Thursday approved a settlement between the trustee unwinding Lehman Brothers Inc. and Pacific Investment Management Co. that settles $187 million of Pimco’s claims against the brokerage. WSJ has the DBR article here. Canadian oil exploration company Southern Pacific Resource Corp. has sought protection from creditors with an insolvency filing under Canada’s bankruptcy law, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

1 week 18 hours ago
Former Miss America Bess Myerson helped overhaul Citi's consumer loan contracts in the 1970s. Then she turned her attention to cleaning up the bank's collections unit.

Read More from: BankThink

1 week 19 hours ago
It’s that time of year for tax refunds. We have questions from folks as to whether they can file Chapter 7 bankruptcy before filing taxes and still keep their tax refunds coming to them after they file bankruptcy or whether they can keep a tax refund received right before filing bankruptcy. The answer is that they generally can keep their refunds, depending, of course, on how large the refund is. The general bankruptcy exemptions available under the federal bankruptcy exemptions (which we can use in Kentucky) are usually large enough to protect most tax refunds from being lost to the trustee. You can also use your tax refund to pay the fees and costs for the bankruptcy. Also, if you are thinking about filing bankruptcy, and are going to use your tax refund to pay off a debt to a family member or creditor prior to filing bankruptcy, you should consult with a bankruptcy attorney before doing that. There are provisions in the bankruptcy law which may allow the trustee to take that money back from the family member or creditor should you then file bankruptcy after paying them. Alternatively, if you just keep the refund and don’t pay any of it to anyone, then the refund may be able to be protected with the exemptions as outlined above, and as we said above, used to pay the fees and costs for the bankruptcy.
1 week 19 hours ago
Receiving Wide Coverage ... Canadian Invasion: The Wall Street Journal, Financial Times and Reuters (via the New York Times) all take a closer look at Royal Bank of Canada's decision to acquire City National in Los Angeles. RBC may have stubbed its toe in its previous American incursion with RBC Centura (which it later sold to PNC), but City National is a different play. The California bank has a big presence in wealth management, particularly managing...

Read More from: BankThink

1 week 20 hours ago
In re Castle Home Builders, Inc., 520 B.R. 98 (Bankr. N.D. Ill. 2014) – The debtors obtained confirmation of plans of reorganization that restructured prepetition mortgage loans.  When the servicer for some of the loans continued to ignore the terms of … Continue reading →
1 week 22 hours ago
The general counsel of a financially distressed company calls you.  She of course clearly states that her company does not need to file a chapter 11 case, but she is curious to understand how a chapter 11 case might work for her company.  Specifically, she wants to know: Can the company continue to use intellectual property it licenses and has integrated into its business operations?  Will some or all of the company’s existing shareholders be able to retain their ownership if they contribute to the company’s reorganization?  If the company decides to pursue a sale, can the company sell its assets free and clear of all claims?  Will she and the company’s other executives be

Read More from: Credit Slips

1 week 23 hours ago
Michael Capasso and Roy Neiderhoffer, who hope to revive the defunct New York City Opera, inside the Jazz at Lincoln Centers Frederick P. Rose Hall on Wednesday, Jan. 14.
Cassandra Giraldo for The Wall Street Journal
The battle to revive the New York City Opera is starting to look as dramatic as the stage productions both sides hope to produce. In the latest twist, the City Opera board said Thursday they’ve selected an investor group’s $1.25 million offer as the winner to bring back the opera—but an objection from the losing bidder means the action isn’t over just yet. The winning bid is backed by former City Opera board member and hedge fund manager Roy Niederhoffer, who plans to reboot the company under the direction of Michael Capasso, the head of a small Manhattan opera company in the process of being wound down. On the losing side is architect Gene Kaufman, whose $1.5 million cash bid was rebuffed. Arthur Steinberg, an attorney for Mr. Kaufman, on Thursday asked Judge Sean Lane in U.S. Bankruptcy Court in Manhattan to give him time to question the opera’s board about why Mr. Kaufman’s proposal wasn’t selected and present it as evidence to the court. This sets the stage for another testy court hearing in the case on the way toward having Judge Lane give final approval to a sale.

Read More from: WSJ.com: Bankruptcy Beat

1 week 1 day ago
Michael Capasso and Roy Neiderhoffer, who hope to revive the defunct New York City Opera, inside the Jazz at Lincoln Centers Frederick P. Rose Hall on Wednesday, Jan. 14.
Cassandra Giraldo for The Wall Street Journal
The battle to revive the New York City Opera is starting to look as dramatic as the stage productions both sides hope to produce. In the latest twist, the City Opera board said Thursday they’ve selected an investor group’s $1.25 million offer as the winner to bring back the opera—but an objection from the losing bidder means the action isn’t over just yet. The winning bid is backed by former City Opera board member and hedge fund manager Roy Niederhoffer, who plans to reboot the company under the direction of Michael Capasso, the head of a small Manhattan opera company in the process of being wound down. On the losing side is architect Gene Kaufman, whose $1.5 million cash bid was rebuffed. Arthur Steinberg, an attorney for Mr. Kaufman, on Thursday asked Judge Sean Lane in U.S. Bankruptcy Court in Manhattan to give him time to question the opera’s board about why Mr. Kaufman’s proposal wasn’t selected and present it as evidence to the court. This sets the stage for another testy court hearing in the case on the way toward having Judge Lane give final approval to a sale.

Read More from: WSJ.com: Bankruptcy Beat

1 week 1 day ago
Today, in the latest installment of our series reviewing the Final Report and Recommendations of the American Bankruptcy Institute Commission to Study the Reform of Chapter 11, we review the Commission’s comments on (i) venue and (ii) core and noncore matters – discussed in sections IX.A and IX.B, respectively. Two topics that – in a notable departure from the majority of the Report – the Commission did not issue any recommendations for reform, but for quite different reasons in each instance. The Commissioners did not provide any recommendations regarding the venue statute because they were unable to reconcile their strong and disparate views on the topic. In contrast, the commissioners demurred, on the topic of core and noncore matters, in light of the current unsettled nature of the case law on the topic following the recent Supreme Court decisions in Stern v.
1 week 1 day ago
Today, in the latest installment of our series reviewing the Final Report and Recommendations of the American Bankruptcy Institute Commission to Study the Reform of Chapter 11, we review the Commission’s comments on (i) venue and (ii) core and noncore matters – discussed in sections IX.A and IX.B, respectively. Two topics that – in a notable departure from the majority of the Report – the Commission did not issue any recommendations for reform, but for quite different reasons in each instance. The Commissioners did not provide any recommendations regarding the venue statute because they were unable to reconcile their strong and disparate views on the topic. In contrast, the commissioners demurred, on the topic of core and noncore matters, in light of the current unsettled nature of the case law on the topic following the recent Supreme Court decisions in Stern v.
1 week 1 day ago
Opus Bank in Irvine, Calif., has agreed to buy a pair of nonbanking businesses.

Read More from: BankThink

1 week 1 day ago
As a consultant to Citibank in the 1970s, former Miss America Bess Myerson helped spearhead landmark consumer reforms Â-- including the first plain-language agreement in the financial services industry.

Read More from: BankThink

1 week 1 day ago
Leon Barson Brandon Shemtob The United States Bankruptcy Court for the Northern District of Illinois recently handed down an opinion, In re River Road Hotel Partners LLC, 2014 WL 5488259 (Bankr. N.D. Ill. 2014),  dealing with the issue of a financial advisory firm’s entitlement to a $2.6 million “restructuring fee” following confirmation of a Chapter 11 plan of reorganization proffered by the Debtors’ secured creditor.  The opinion sheds light on the importance of clear drafting in engagement letters as well as the need to closely monitor a debtor’s proposed retention application for its financial advisor.      This Chapter 11 case concerned River Road Hotel Partners LLC and its affiliates in connection with their ownership of the Intercontinental Hotel at Chicago’s O’Hare Airport.  After filing for bankruptcy in 2009, the Debtors sought to retain FBR Capital Markets & Co. to perform financial advisory services in connection with the reorganization effort.  The parties negotiated an engagement letter, which provided for, among other things, a “restructuring fee” that compensated FBR in the event of a successful reorganization of the Debtors.  The term “restructuring” was broadly defined in the engagement letter in order to encompass “any restructuring, reorganization and/or recapitalization…that involves all or a significant portion of the [Debtors’] outstanding obligations….” 

Read More from: Bankruptcy Law Watch

1 week 1 day ago
The Firm's other practice groups include litigation and dispute resolution. The post Litigation & Dispute Resolution appeared first on Culhane Meadows PLLC - Dallas Chapter 11 Business Bankruptcy.

Read More from: Richard G. Grant, P.C.

1 week 1 day ago
The Firm's other practice areas include technology. The post Technology appeared first on Culhane Meadows PLLC - Dallas Chapter 11 Business Bankruptcy.

Read More from: Richard G. Grant, P.C.

1 week 1 day ago
The Firm's other practice areas include Intellectual Property. The post Intellectual Property appeared first on Culhane Meadows PLLC - Dallas Chapter 11 Business Bankruptcy.

Read More from: Richard G. Grant, P.C.

1 week 1 day ago
The Firm's other practice areas include Corporate & Business Services. The post Corporate & Business Services appeared first on Culhane Meadows PLLC - Dallas Chapter 11 Business Bankruptcy.

Read More from: Richard G. Grant, P.C.

1 week 1 day ago
The New York Times ran an article--  not an opinion piece, but an article -- last week entitled "Study Finds Local Taxes Hit Lower Wage Earners Harder".  It is a superficial summary of a report that is published every few years by a progressive think tank, The Institute on Taxation and Economic Policy ("ITEP"), which the article laughably describes as "nonpartisan".  The institute's board of directors includes Robert Reich, former Clinton Administration Secretary of Labor and a Berkeley academic, Robert Kuttner of The American Prospect, a leading progressive periodical and website, and other well-known progressives or associates of other progressive organizations.  The ITEP staff bios show that, with few exceptions, they have spent their entire adult lives inside the beltway or in surrounding states, beginning, in the main, with getting a degree (in what is usually not specified), at Georgetown or GWU, or perhaps as far away as UVa or U of Md.  Their bios cite prior contributions to the New York Times and the New Republic, but not a single publication of a different ideological stripe.  The organization's recent other publications include "Undocumented Immigrants' State and Local Tax Contributions", "State Tax Codes as Poverty Fighting Tools", "The Sorry State of Corporate Taxes" and "Options for Progressive Tax Relief".  It states on its website th

Read More from: Necessary and Proper

1 week 1 day ago
Authored by Michael S. Waskiewicz and Armando Nozzolillo and Michael S. Waskiewicz and Armando Nozzolillo of Rogers TowersIn Florida, it is well settled that a Chapter 7 debtor who does not claim or receive the benefit of the homestead exemption on his bankruptcy schedules is entitled to claim the “wildcard” exemption pursuant to Fla. Stat. § 222.25(4).  The “wildcard” exemption provides that a debtor can exempt up to $4,000 in personal property if the debtor does not “claim or receive the benefit of” the homestead exemption under Article X, Section 4(a)(1) of the Florida Constitution.  This issue recently came up in the context of a Chapter 13. In Littleton, co-debtors filed a Chapter 13 bankruptcy petition.  In their schedules, the co-debtors listed residential property valued at $127,000 with a mortgage of $140,000.  The co-debtors chose not to claim the homestead exemption for the residential property.  Instead, the co-debtors chose to exempt certain personal property pursuant to the “wildcard” exemption.  In their Chapter 13 plan, the co-debtors proposed to retain the residential property and pay their mortgage outside of their plan.

Read More from: Florida Banking Law Blog

1 week 1 day ago

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