ABI Blog Exchange

At John Rogers, Attorney at Law, we are proud of the customer service we provide our clients. We are happy to share reviews of our service below ! ” You have an excellent reputation in the local area. You are organized, professional and really know how to put a client at ease during a hard time in their life.  After seeing how unorganized some other attorneys were at court, I was thankful I had your office helping me and not someone else. Thank you all so much.” – Carol “Any questions I had I could always talk to someone directly.  I would recommend your office to other people. ” – Jeff “All questions were answered in a manner that we could understand.  We were never rushed and everyone we worked with was always kind and polite.” – Joe “(another attorney) said that John Rogers was the only one he knew who could sort out my difficult situation and that he himself could not help me. Thank you for being there for me.  You were my friends when I have been at my lowest. You helped me and encouraged me. God bless all of you. I am so thankful for you all.” – DKC “Someone was always able to answer my questions. I felt like everyone there actually cared about helping me with my situation and wasn’t just after collecting my money. ” -Julie “I will definitely recommend this office simply for the professionalism and understanding.”  -Melissa “The staff was very easy to talk to, as was Mr. Rogers, and very knowledgeable. We felt very comfortable.”  -Brent
1 week 4 days ago
On May 8, 2015, American Eagle Energy Corporation (“American Eagle”) and its wholly-owned subsidiary AMZG, Inc. (collectively, the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Colorado (Denver).    The Debtors are seeking to have their cases jointly administered under the lead case of In re American Eagle Corporation [Case No. 15-15073]. According to the Debtors’ Emergency Motion for Authority to Use Cash Collateral (the “Cash Collateral Motion”), during the past five years, the Debtors have been engaged in exploration and production activities in southeast Saskatchewan, Canada and in the northern United States.  But in July 2014, the Debtors sold all of their working interests in Canada to focus on exploration and production opportunities in North Dakota and Montana, particularly in Divide County, North Dakota in the area commonly referred to as the “Spyglass Area.” Cash Collateral Motion at 2-3. In American Eagle’s bankruptcy petition, the Debtors list total assets of approximately $211.8 million and total liabilities of approximately $215.2 million. Petition at 4.  For its part, AMZG, Inc. has no operations or assets and its only debt are guarantee claims on American Eagle obligations.  Cash Collateral Motion at 2. A copy of the Cash Collateral Motion can be accessed here:  Download Cash Collateral Motion
1 week 4 days ago
Should the bankruptcy code be amended to make it easier for borrowers to seek forgiveness of student loan debt through a bankruptcy filing? For the past several decades, financial planners, economists and well-meaning parents across the country have trumpeted the notion of student loan debt as a “good” debt to have. Unlike credit-card debt, auto loans or mortgage debt, student loans have historically been perceived as an investment in our most important asset—education. As attending college has become intrinsically linked with higher earning capacity and upward mobility, obtaining student loans is seen as a necessary instrument toward fulfilling the American dream. However, recent trends are certainly calling the student loan value proposition into question. The rising tide and economic burden of student loan debt has become a serious and growing concern for students, families, higher-learning institutions and private lenders. Over the past several months, national studies have highlighted the impact on students and families across all income levels. As large scale public and private schools continue to look for ways to address rising tuition costs in light of declining endowments and state funding, several for-profit technical schools have filed for bankruptcy. As such, many experts have predicted student loans as the next debt bubble crisis in the near future.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
My thoughts on whether the Bankruptcy Code should be amended to allow easier discharge of student loan debt are upon The Examiners at the Wall St. Journal. Short of it is yes for private student loans, no for public student loans. I'm sure to catch hell for this from some of the more aggressive student loan forgiveness advocates, given that most of the market is public student loans, but there are other restructuring and foregiveness options available for public loans and serious fairness problems with allowing discharge of existing student loans.  New borrowers shouldn't have to subsidize older ones' dischargeability, and taxpayers shouldn't be picking up the tab for social insurance to the extent that bad educational/career choices are within individuals' control.      

Read More from: Credit Slips

1 week 4 days ago
Most banks appear to be coping well with the CFPB's ability-to-repay rule for mortgages, but the burden is falling harder on community banks. A new proposal that would allow more small lenders to grant home loans to borrowers with high levels of debt could help.

Read More from: BankThink

1 week 4 days ago
The Fresh Produce retail chain, which sells colorful, roomy women’s clothing that one can classify as “tourist wear,” has found a buyer who promised to keep more than half of its 27 stores alive. In court papers, Fresh Produce officials said that an entity called Blue Stripe LLC is preparing to buy all but 12 stores out of bankruptcy protection. Blue Stripe beat other offers at an auction on Friday for the Fresh Produce stores and online clothing line, which targets both tourists and “non-tourist customers for whom a ‘vacation state of mind’ resonates,” said Chief Financial Officer Jo Stone in earlier documents filed in in U.S. Bankruptcy Court in Denver. The Boulder, Colo., chain filed for chapter 11 protection on April 4, blaming an “aggressive overexpansion” and high turnover in key positions. As the company began to struggle last year, it closed a store, laid off workers and cut employee pay by 10%. Fresh Produce employed 270 people at the time of its bankruptcy and made $37.9 million in sales during its most recent fiscal year. Fresh Produce officials did not say in court papers when going-out-of-business sales will start at the closing locations.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Judge Vincent Bricetti of the United States District Court for the Southern District of New York issued a ruling in the Momentive Performance Materials cases affirming the Bankruptcy Court’s confirmation rulings on Monday, May 4.  Key themes raised in this case of interest to distressed investors and addressed in Judge Bricetti’s ruling include the appropriate interpretation of certain indenture subordination provisions, an affirmation of the “Till” approach to cramdown interest rates in the Second Circuit, and a reminder that the ability to receive a make whole based on automatic acceleration requires explicit language in the applicable indenture.  Subordination Dispute
1 week 4 days ago
Should the bankruptcy code be amended to make it easier for borrowers to seek forgiveness of student loan debt through a bankruptcy filing? From a pure bankruptcy law point of view, there is a very credible argument that student loans shouldn’t get special treatment compared to other debts. Unsecured student loans shouldn’t be non-dischargeable, meaning they survive a bankruptcy filing. In order for a borrower to get a true fresh start, student loans should be treated like other debts and forgiveness allowed. At the least, the exceptions to allow for the discharge of student loans could be expanded to ease the burdens on borrowers. The problem is that we cannot have that debate without considering the external factors related to the more than $1 trillion student loan market. If the bankruptcy code were to be amended to provide full or partial relief for borrowers, what would the affect be on the financial markets? Lenders (and the U.S. government is essentially the largest one) would potentially have to write down hundreds of billions of dollars of student loans. ‎That would be a tough pill to swallow. Of course, there are public and private student loan forgiveness programs currently in place that provide relief in certain circumstances. These programs should be examined before any amendments are considered to the bankruptcy code.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Should the bankruptcy code be amended to make it easier for borrowers to seek forgiveness of student loan debt through a bankruptcy filing? The bankruptcy code should be amended to make it easier for borrowers to discharge private student loans, but not federal student loans. Unsecured debts are presumptively dischargeable in bankruptcy. Student loan debt, however, is different from other types of unsecured debt in one critical way: Most of it is owed to the federal government. The government’s position as creditor counsels against allowing the ready dischargeability of federal student loans both because it creates problems of distributional fairness and because it means there are alternative formal channels available for managing loan repayment.  By the same token, however, there is no basis for special treatment for private student loans, which should be freely dischargeable, as they were prior to 2005. Allowing the ready discharge of federal student loans creates distributional problems because federal student loan pricing is not risk-based; it is one-size-fits-all pricing. If existing federal student loans were to become dischargeable in bankruptcy, the costs would be borne by either future borrowers or taxpayers. Neither outcome would be desirable.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago
Quadrant Structured Prods. Co. v. Vertin, No. 6990-VCL, 2015 WL 2062115 (Del. Ch. May 4, 2015) In this Opinion, Vice Chancellor Laster addressed two questions with respect to a derivative claim asserted by a creditor on behalf of a corporation – namely (1) whether such claims may be maintained only during the time that a corporation is actually insolvent and (2) whether to establish the insolvency of the corporation, such creditor must show that the corporation has “a deficiency of assets below liabilities with no reasonable prospect that the business can be successfully continued in the face thereof.”  Answering both questions in the negative, the Chancery Court held that a creditor will have standing to sue derivatively if it establishes that the corporation was insolvent at the time the derivative suit was filed and that insolvency may be proven under either one of the two traditional insolvency tests – the balance sheet test or the cash flow test. Read More › Tags: Insolvency, Standing

Read More from: Delaware Bankruptcy Insider

1 week 4 days ago
Upon the filing of a bankruptcy petition, an automatic stay goes into effect which provides a debtor with immediate protection from collection efforts by creditors. But the automatic stay is not without limitations. In a recent opinion, the U.S. Court of Appeals for the Sixth Circuit recently considered whether the automatic stay should apply to prevent a foreclosure sale in a case in which the debtor’s good faith, actions and credibility in filing for Chapter 13 were called into question.[1] The Sixth Circuit ruled against the debtor, affirming the bankruptcy court’s earlier findings that the debtor’s actions were “outrageous.” Read More › Tags: 6th Circuit Court of Appeals, Chapter 13

Read More from: Michigan Bankruptcy Blog

1 week 4 days ago
College education is a massive expense.  According to the College Board, the average cost of tuition, fees, room, and board from 2014 to 2015 was nearly $42,500 for a private four-year college.  Four-year public schools didn’t fare much better, with an average price tag of about $33,000 for out-of-state and close to $20,000 for in-state.  When faced with such a staggering bill, the overwhelming majority of students and/or parents will have to take out a loan.  But what if you have a bankruptcy in your past?  Will you lose student loan eligibility?  Our bankruptcy lawyers explain some of the factors students and parents should consider. Common Types of Student Loans The answer to whether you’ll be disqualified for student loans depends on which type of loan you’re pursuing. Some of the most common types of student loans include:
  • Perkins Loans — These are low-interest federal loans meant for low-income graduate and undergraduate students.  In 2014, Perkins loans were capped at $27,500 for undergrads and $60,000 for grad students.
  • PLUS Loans — These are federal loans meant for grad students and the parents of undergraduates.  These loans come from the U.S. Department of Education, and are capped at the total cost of attendance (from which other sources of financial aid are subtracted).

Read More from: Young, Klein & Associates

1 week 4 days ago
Third-Party Citations One of the ways that a creditor with a judgment against you can attempt to collect a debt is to attach or seize your bank account. This is done by filing a third-party citation to discover assets in the Circuit Court and having it served upon the bank. Once the bank receives notice+ Read More The post Bankruptcy Will Unfreeze A Bank Account, But Not Overnight appeared first on David M. Siegel.
1 week 4 days ago
Investor-owned ratings agencies would send a message to mutual fund shareholders, retirement plan participants and other investors that steps have been taken to avoid repeating the inaccurate ratings that contributed so heavily to the financial crisis.

Read More from: BankThink

1 week 4 days ago
On May 8, 2015, Airborne Media Group, Inc. filed a voluntary chapter 11 petition in the United States Bankruptcy Court for the District of Delaware.  The voluntary petition was filed after several creditors commenced an involuntary chapter 11 case in Colorado on April 17, 2015.  The chapter 11 case has been docketed as case no. 15-11018 and has been assigned to The Honorable Kevin Gross. In support of the chapter 11 filing, Airborne filed the Declaration of Cordell R. Brown, CEO of the Debtor.  According to the Declaration, the Debtor started in 2011 as an idea to permit patrols at a bar or restaurant to listen to the muted live sports or other events being shown in the venue through their smart phone or ipad.  The Debtor created smartphone applications and other products to permit this device interactivity.  As of the time of the filing, the Debtor had 9 employees, over 100 equity holders (with $6 million invested) and a $250,000 unsecured line of credit and about $1 million of unsecured debt (not counting a judgment obtained by certain of the shareholders.
1 week 4 days ago
Richard Levin, who founded Cravath, Swaine & Moore LLP’s restructuring practice eight years ago, is changing firms as he approaches the firm’s retirement age. Mr. Levin, 64, plans to join Chicago’s Jenner & Block next week to help build the firm’s two-partner New York restructuring practice, focused on representing creditors, debtors and trustees in bankruptcies and debt restructurings. Cravath enforces a retirement age of 65. “I’ve been doing this for 40 years, and I’ve never been bored,” Mr. Levin said. “It’s always something new, always some twist, always some challenge.” Mr. Levin served as counsel to a subcommittee of the House Judiciary Committee from 1975 to 1978, where he was one of the main authors of the U.S. Bankruptcy Code and Bankruptcy Reform Act in 1978. Cravath hired him in 2007 from Skadden, Arps, Slate, Meagher & Flom–just the third time since 1944 the firm had hired a partner from an outside firm, according to a Wall Street Journal report at the time. Mr. Levin recently represented the Detroit Institute of Arts in the city’s 2013 bankruptcy. He advised General Motors’ independent directors on the auto maker’s 2009 Chapter 11 filing and Credit Suisse Group AG in the Lehman Brothers Holdings Inc. bankruptcy.

Read More from: WSJ.com: Bankruptcy Beat

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As companies begin to assess the impact of the SEC's recent pay versus performance rule proposal, which we discussed here, ISS Corporate Solutions reports that performance pay now comprises about 55% of total compensation. 80% of companies are also using long-term performance awards.
1 week 4 days ago
Colorado oil company American Eagle Energy Corp. has filed for chapter 11 bankruptcy protection after missing an interest payment to bondholders. 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.”) A bankruptcy judge Friday said creditors of what remains of defunct TV-streaming service Aereo Inc. can vote on the company’s plan, which promises to pay them about 11 cents on the dollar, DBR (sub. req.) reports. China tire maker Deruibao Tire Co. is now a target of a rescue effort led by the government, WSJ reports.

Read More from: WSJ.com: Bankruptcy Beat

1 week 4 days ago

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