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On 12 February 2016 Snowden J handed down his judgment in Indah Kiat International Finance Company B.V. [2016] EWHC 246 (Ch). Indah Kiat International Finance Company B.V. (“Indah Kiat”), part of the global Asia Pulp & Paper Group (one of the world’s largest pulp and paper manufacturers), applied for an order convening a meeting of scheme creditors to consider and, if thought fit, approve a proposed scheme of arrangement (the “Scheme”) under Part 26 of the Companies Act 2006. One creditor, APPIO, opposed the Scheme on various grounds and in this hearing sought an adjournment on the basis that insufficient notice was given to the creditors of the convening hearing.
2 weeks 4 days ago
Toshiba Samsung Storage Technology Korea Corporation has commenced a case (Case No. 16-11602) under Chapter 15 of the Bankruptcy Code by filing a petition with the U.S. Bankruptcy Court for the District of Delaware.  The Honorable Brendan Linehan Shannon will preside over the case.  The debtor is seeking recognition of a foreign main proceeding in South Korea.  More documents are available from the Court’s website. Contact Norman L. Pernick, Nicholas J. Brannick, or David W. Giattino for more information.
2 weeks 4 days ago
Lenders often go to great lengths to ensure their borrowers are Special Purpose Entities—entities whose assets will not be commingled with the assets of parent or affiliated companies—rendering bankruptcy filings by the SPE less likely. However, when a SPE does file bankruptcy and its trustee seeks to substantively consolidate its estate with the estate of its parent and affiliates, does the lender have standing to contest that motion and thereby be a “person aggrieved” from an adverse order? The Eighth Circuit recently answered this question in the negative, holding a lender to a special purpose entity is not a person aggrieved by an order of substantive consolidation and, therefore, lacks standing to appeal the order. Opportunity Finance, LLC et al v. Kelley, 2016 WL 2848587 (8th Cir. 2016).

Read More from: Creditors' Rights

2 weeks 4 days ago
“Thank You for all you have done. I feel much better than I have since my husband’s passing. The stress has lifted immensely. ” -Vivian “Always there when we needed you and it didn’t take long to wait for things to get done.” -Gene and Gloria “Thanks for helping when no one else would !” -Shelia “I thank God for all of you. Thank you for being so good to me. Keep God in your services.” -Geneva “You all made me feel comfortable going through this Bankruptcy. Not at anytime did you make me feel belittled getting into this situation.” -Richard “They accepted my handicap, I couldn’t make steps, and came downstairs.”    -anonymous “Everyone was very nice. No one wants to file bankruptcy. We never felt like anyone was judging us. It was a great relief. We are very grateful for your services.” -Roy and Keatina “Open and willingness to help in time of distress, and handicapped convenience” -Octava “Thanks for helping us begin again after our business failed” -Jason and Bridgett “Professional, discreet, and helpful”  -anonymous “Your staff and you were so nice to us, you made an unpleasant experience as pleasant as you could. … You all go the extra mile. As a matter of fact, we have already recommended you to other people.” -Michael and Linda
2 weeks 4 days ago
Recently, the City of Jackson, Mississippi settled a federal class action lawsuit that challenged the use of debtors’ prisons. The civil rights group Equal Justice Under Law and the Roderick and Solange Macarthur Justice Center of the University of Mississippi School of Law filed the lawsuit on behalf of seven plaintiffs. The previous system jailed people who were unable to pay court imposed fines and fees without assessing their ability to pay. Those people were credited a rate of $25 a day for general incarceration or $58 a day for work at the Hinds County Penal Farm. After the settlement, individuals who cannot pay their fines in full have the option of paying $25 a month or performing community service that will credit their debt at $9 an hour. State Losing Money By Jailing Debtors

Read More from: Bonds & Botes, P.C.

2 weeks 4 days ago
SynCardia Systems, Inc. has filed a chapter 11 petition before the United States Bankruptcy Court for the District of Delaware (Case No. 06-11599).  The debtor is the manufacturer of an FDA-approved Total Artificial Heart.  The company has entered into a stalking horse asset purchase agreement and filed a motion to sell substantially all of its assets to its first lien lender, which has also agreed to provide debtor-in-possession financing.  The petition (including the list of top 30 creditors), the first day declaration and the docket are available through Omni Management. Contact Norman L. Pernick or Nicholas J. Brannick for more information.
2 weeks 4 days ago
Prepared for the Performance By Donald L. Swanson When preparing for a multiparty mediation, the following items 6 through 10 should be addressed by the mediator with the parties and their attorneys in advance communications. Item Six.  First Offer Arrangements. Common questions about the first offer in a mediation are: (1) Which party will make the initial offer at the initial mediation session? (2) A common practice is for the claimant to go first; should that practice be followed here? (3) Could the first offer be prepared in advance and ready to present when the mediation session begins? (4) Should the mediator work with the first-offer party and attorney in advance of the mediation session toward developing the offer? Item Seven.  Non-Monetary Terms. Non-monetary terms are often as important to a settlement as monetary terms — sometimes more so: What non-monetary terms might be important in this mediation? Item Eight.  Documenting the Settlement. Once a settlement is reached: (1) What document(s) will the parties use to confirm settlement details — a term sheet, a settlement agreement, something different?

Read More from: Mediatbankry

2 weeks 4 days ago
This being human is a guest house. Every morning a new arrival. A joy, a depression, a meanness, some momentary awareness comes as an unexpected visitor. Welcome and entertain them all! Even if they are a crowd of sorrows, who violently sweep your house empty of its furniture, still, treat each guest honorably. He may be clearing you out for some new delight. The dark thought, the shame, the malice. meet them at the door laughing . and invite them in. Be grateful for whoever comes. because each has been sent as a guide from beyond. -Rumi

Read More from: Spiritually Bankrupt

2 weeks 4 days ago
What happens to funds held by a Chapter 13 trustee (the “Trustee”) in the event that a Chapter 13 debtor dismisses her case voluntarily? That’s the question that was addressed by the United States Bankruptcy Court for the Eastern District of Michigan (the “Court”) in a recent opinion.[i] Read More › Tags: Chapter 13

Read More from: Michigan Bankruptcy Blog

2 weeks 5 days ago
I recently received a kind and thoughtful email from the father of a service member that I represented years ago.  The email read as follows: While cleaning out my desk I ran across your business card. You defended my son years ago when he got involved with the wrong people and stole some ammunition.  I attended his trial and remember meeting you. You got him off with what I thought was a light sentence  My son then went through the Gulf War, attended college and has a great job and has never been in any trouble since. Having been in the service myself I always said you got him a second chance in life.   Again I want to thank you and wish you a healthy and successful life. Protect Your Discharge I remember the father and son from years ago and it reminds me of what I tell all military members, even my own son, Tom, who is a 68W combat medic in the U.S. Army Reserves – “Protect your discharge!”  I say that so often that my son is sick of hearing it from me!

Read More from: Bonds & Botes, P.C.

2 weeks 5 days ago
.fusion-fullwidth-1 { padding-left: px !important; padding-right: px !important; }The 2016 Democratic Party’s draft platform has some major wins for those struggling with student loan debt. Whether you end up supporting the Democrats or Republicans in the 2016 presidential election, it’s useful to know where each side stands on the issues of concern to you. Here’s what the Democrats have to say:
Democrats will allow those who currently have student debt to refinance their loans at the lowest rates possible. We will simplify and expand access to income-based repayment so that no student loan borrowers ever have to pay more than they can afford. And we will significantly cut interest rates for future undergraduates, thereby preventing the federal government from making billions of dollars in profit from student loans. Democrats will also fight for a Student Borrower Bill of Rights to ensure borrowers get adequate information about options to avoid or get out of delinquency or default. We will hold lenders and loan servicers to high standards to help borrowers in default rehabilitate and repay their debts. Finally, Democrats will restore the prior standard in bankruptcy law to allow borrowers with student loans discharge their debts in bankruptcy as a measure of last resort.
In a nutshell, Democrats would allow student loan borrowers to:
3 weeks 3 hours ago
Happy Independence Day Weekend ! Is credit card debt and medical debt weighing you down and preventing you from being able to pay debts that you need to keep such as a mortgage or your car or truck ? Contact us today and we can look at solutions to enable you to move on with your life and not have the stress and worry of collections and lawsuits. Bankruptcy is a time-honored and approved way to enable you to pay the debts that you need to pay. In fact, it’s provided for in the US Constitution that our founding fathers wrote and is defended to this day. Contact us today at John Rogers, Kentucky Bankruptcy Attorney
3 weeks 21 hours ago
Flexibility is essential By: Donald L. Swanson On June 28, 2016, the United States Supreme Court grants certiorari, in the case of In re Jevic Holding Corp. from the Third Circuit Court of Appeals, to resolve this narrow issue: “Whether a pre-plan settlement in a Chapter 11 bankruptcy may provide for payment to general unsecured creditors when priority claims remain unpaid.” Circuit Split Standards for granting certiorari are identified in Rule 10 of the Rules of the Supreme Court of the United States.  The standard that appellant cites in the In re Jevic case is a split of authority: “a United States court of appeals has entered a decision in conflict with the decision of another United States court of appeals on the same important matter” [Rule 10(a)]. The Second and Third Circuits are on one side of the issue (the In re Jevic case is from the Third Circuit), and the Fifth Circuit is on the other side. A Narrow-But-Important Distinction

Read More from: Mediatbankry

3 weeks 1 day ago
Relativity Media LLC is expected to miss a $30 million payment to lenders, which increases doubts about the film studio’s ability to stay afloat after leaving bankruptcy. 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.”) DBR reports in WSJ on the bankruptcy filing of China Fishery Group Ltd. in the U.S. As DBR reports in WSJ, Caesars Entertainment Corp. made a tentative labor deal with Atlantic City, N.J., union-represented casino workers. A strike is still a threat for some other boardwalk casinos.

Read More from: WSJ.com: Bankruptcy Beat

3 weeks 1 day ago
As the country recovers from the shock outcome of last Thursday’s Referendum, the question which Restructuring professionals must now consider is “what does Brexit mean for me?”. The truth is that nobody really knows. The Referendum decision is not legally binding on the UK Government and the process of the UK leaving the EU will only start once the UK has served formal notice on the EU pursuant to Article 50 of the Treaty on the European Union. This will start a two year negotiation period to effect Brexit. In the meantime, the UK remains a member of the EU and EU law continues to apply. So, in some respects it is very much business as usual for now, but on the basis that David Cameron’s successor will give notice to leave the EU, we recommend that clients start considering the consequences of Brexit now. Preparation for those consequences may include looking at the following: Contract Reviews – Many contracts refer to an array of EU laws, regulators and territories which should be reviewed to determine how Brexit may/will impact. Can the contract be varied to mitigate the impact of Brexit? What is the potential impact on the contract price being linked to Sterling, the Euro or the Dollar? Does the governing law clause need amending? Will Brexit result in a breach of contract? Whilst unlikely, can force majeure or material adverse effect clauses be relied upon? How can the contract be future-proofed?

Read More from: eSQUIRE Global Crossings

3 weeks 1 day ago
We at the Weil Bankruptcy Blog wish all of our readers and their families a safe and enjoyable holiday weekend.
3 weeks 1 day ago
Key Employee Retention Plans (KERPs) and Key Employee Incentive Plans (KEIPs) often are the subject of intense interest, either because a distressed company’s management is focused on developing such programs to retain valuable talent during a time of great uncertainty within its organization or because certain creditor constituencies or parties in interest take issue with the payments a debtor intends to make under the programs.  The debtor’s experience in In re American Eagle Energy Corporation was no different.  There, the U.S. Trustee and a secured creditor objected to the debtor’s proposed KEIP, arguing it was a disguised, prohibited KERP.  The Bankruptcy Court for the District of Colorado, however, found otherwise and approved the plan. 
3 weeks 1 day ago
The Department of Labor has finalized new overtime laws. The new federal law, which includes Wisconsin, will take effect on December 1, 2016. The Fair Labor Standards Act (FLSA), 29 U.S.C. §§ 201-219, requires employers to pay workers an overtime rate for hours worked in excess of 40 hours per week. With so many Americans working longer hours and not being fairly compensated for that time, the new employment law will benefit many individuals. If you are in an executive or managerial position, you may be jumping up and down about the new revisions. The good news is that the wage threshold for salaried workers has changed. This means more salaried employees will be eligible for overtime pay. Previously, the salary threshold was set at $23,600 a year or $455 a week, low numbers that employers were using to take advantage of employees. The new revision increases the salary threshold to $47,476 a year or $913 a week to qualify for an executive, administrative, or computer employee exemption. The new salary threshold aims to reduce the number of salaried employees who are not receiving overtime pay for additional hours worked.

Read More from: Wynn at Law, LLC

3 weeks 1 day ago
Posted by Kathy Bazoian Phelps    Below is a summary of the activity reported for June 2016. The reported stories reflect: 4 guilty pleas or convictions in pending cases; over 39 years of newly imposed sentences for people involved in Ponzi schemes; at least 14 new Ponzi schemes worldwide; and an average age of approximately 59 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. And please remember that I am just relaying what’s in the news, not writing or verifying it.    Charles E. Bennett, 57, was disbarred from the Bar of the State of New York. Matter of Bennett, 2016 N.Y. App. Div. LEXIS 4176 (Sup. NY, June 2, 2016). Bennett is a former corporate lawyer at Skadden, Arps, Slate, Meagher & Flom, who was sentenced to 5 years in prison for running a $5 million Ponzi scheme. Bennett had left a suicide note before trying to kill himself which revealed the scheme that defrauded 30 friends and family members. Bennett survived the suicide attempt.    Andrew Caspersen, 39, was indicted on allegations that he ran a $40 million Ponzi scheme over an 18 month period. Caspersen pleaded not guilty to the charges, claiming that he had uncontrollable gambling addiction. Caspersen told the judge that he had been treated for “compulsive gambling and mental health illness.” He is expected to plead guilty next month.    Thomas J.

Read More from: The Ponzi Blog

3 weeks 1 day ago

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