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Although NFL linebacker, Lawrence Taylor, earned $50 million over the course of his career, he lost a fortune by sniffing cocaine, with lavish spending, and because of hard partying.  After retirement, Taylor has been arrested numerous times for drugs, pled guilty to filing a false tax return with the IRS, and he then declared Chapter 7 bankruptcy in the late 90s.See Lawrence Taylor with the other members of the NFL Bankruptcy Tailgate Party.  Lawrence is competing for the "World's Greatest Debtor" in the March Madness Bankruptcy Brackets.

Read More from: Drescher Law

4 years 9 months ago
Baldridge v. Douglas Stanley Ellmann (In re Baldridge), Appeal No. 13-1700 (6th Cir., Feb. 3, 2014). On appeal from the District Court for the Eastern District of Michigan, the Sixth Circuit held that a $28,000 “carve out” recovered by the Chapter 7 Trustee pursuant to 11 U.S.C. § 506(c) after closing a sale on the debtors’ property was not property of the estate that could be subject to the debtors’ exemption because the property was over encumbered by two mortgages, leaving no equity for the debtors to exempt. Read More › Tags: 6th Circuit Court of Appeals, Chapter 7

Read More from: Michigan Bankruptcy Blog

4 years 9 months ago
Raghib “Rocket” Ismael, a wide receiver and kick returner, played two years in Canada followed by 10 years of play in the NFL.  During this time, he earned an estimated $18 million to $20 million in salary.  He then began funding a series of business ventures that failed, including a Rock n’ Roll Café, COZ Records, a movie, cosmetics and a nationwide phone-card dispenser.  .See Raghib “Rocket” Ismael with the other members of the NFL Bankruptcy Tailgate Party.  “Rocket” is competing for the "World's Greatest Debtor" in the Bankruptcy Brackets.

Read More from: Drescher Law

4 years 9 months ago
It is hard to ignore the media attention surrounding Bitcoin these days. Within the last few months, the virtual currency has surged to new highs, was the focus of a Congressional hearing, and was the subject of comments by former Federal Reserve Chairman Ben Bernanke, who stated that it and other such currencies “may hold long-term promise.” As Bitcoin gains legitimacy, companies offering Bitcoin-related services have sprouted. As with any new industry, however, although there may be spectacular successes, there also will be many failures. A reminder of this is that amid the frenzy, a company named Alydian recently filed the first Bitcoin-related bankruptcy. Accordingly, Bitcoin users and investors in Bitcoin companies should be aware that the qualities of Bitcoin that make it attractive outside of bankruptcy, could present major difficulties in a bankruptcy proceeding. Continue reading →

Read More from: Restructuring Review Blog

4 years 9 months ago
On March 7, 2014, Vice Chancellor Travis Laster of the Delaware Court of Chancery found a financial advisor liable for aiding and abetting breaches of fiduciary duties by the board of Rural/Metro Corporation in connection with the company’s 2011 sale to an affiliate of Warburg Pincus LLC.  In its 91-page, post-trial opinion, the Court concluded that the financial advisor allowed its interests in pursuing buy-side financing roles in both the sales of Rural/Metro and Emergency Medical Services to negatively affect the timing and structure of the company’s sales process, that the board was not aware of certain of these actual or potential conflicts of interest, and that the valuation analysis provided to the board was flawed in several respects.  Both the Rural/Metro board of directors and a second financial advisor to Rural/Metro settled before trial for $6.6 million and $5.0 million, respectively.
4 years 9 months ago
A string of corporate success in court cases seeking the exclusion of shareholder proposals, one of which we recently discussed here, has ended with two wins for the defendants.  In deciding Omnicom vs. Chevedden, the U.S. District Court in the Southern District of New York granted Chevedden’s motion to dismiss the complaint. The Court was persuaded that since Chevedden had promised the company not to sue if it rejects his shareholder proposal, and the possibility of SEC investigation or action is remote, the threat of injury was not “actual or imminent” as necessary to grant the company’s declaratory judgment motion. The company had argued otherwise since it must still decide whether or not to include the proposal in its proxy, including facing all the legal consequences of that decision. 
4 years 9 months ago
MtGox files for Chapter 15 Bankruptcy | March 9, 2014 MtGox Bankruptcy MtGox Co., Ltd. (a/k/a MtGox KK) filed for Chapter 15 Bankruptcy in the United States Bankruptcy Court for the Northern District of Texas on March 9, 2014.  The case is currently pending before the Honorable Stacey G.C. Jernigan. What is Chapter 15 Bankruptcy? Robert Marie Mark Karpeles is ... The post MtGox (Bitcoin) files for Chapter 15 Bankruptcy| Dallas| March 9, 2014 appeared first on Culhane Meadows PLLC - Dallas Chapter 11 Business Bankruptcy.

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

4 years 9 months ago
MtGox files for Chapter 15 Bankruptcy | March 9, 2014 MtGox Bankruptcy MtGox Co., Ltd. (a/k/a MtGox KK) filed for Chapter 15 Bankruptcy in the United States Bankruptcy Court for the Northern District of Texas on March 9, 2014.  The case is currently pending before the Honorable Stacey G.C. Jernigan. What is Chapter 15 Bankruptcy? Robert Marie Mark Karpeles is ... The post MtGox (Bitcoin) files for Chapter 15 Bankruptcy| Dallas| March 9, 2014 appeared first on Culhane Meadows PLLC - Dallas Chapter 11 Business Bankruptcy.

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

4 years 9 months ago
Nicknamed “The Golden Arm,” Johnny Unitas won the NFL Most Valuable Player award three times and threw touchdown passes in 47 consecutive games, a record which still stands.The iconic quarterback struggled in business, failing with restaurants, real estate and bowling alleys. He filed for Chapter 11 bankruptcy protection in 1991.See Johnny Unitas with the other members of the NFL Bankruptcy Tailgate Party.  Johnny is competing for the "World's Greatest Debtor" in the March Madness Bankruptcy Brackets

Read More from: Drescher Law

4 years 9 months ago
Sbarro files for Chapter 11 Bankruptcy | March 10, 2014 Sbarro, LLC and certain of its affiliates filed for Chapter 11 under the United States Bankruptcy Code.  The Debtor has filed a prepackaged plan and has requested a confirmation hearing to be held on April 22, 2014.  The case is currently pending in the Bankruptcy Court for the Southern District ... The post Sbarro files for Chapter 11 Bankruptcy (SDNY) | March 10, 2014 appeared first on Culhane Meadows PLLC - Dallas Chapter 11 Business Bankruptcy.

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

4 years 9 months ago
Sbarro files for Chapter 11 Bankruptcy | March 10, 2014 Sbarro, LLC and certain of its affiliates filed for Chapter 11 under the United States Bankruptcy Code.  The Debtor has filed a prepackaged plan and has requested a confirmation hearing to be held on April 22, 2014.  The case is currently pending in the Bankruptcy Court for the Southern District ... The post Sbarro files for Chapter 11 Bankruptcy (SDNY) | March 10, 2014 appeared first on Culhane Meadows PLLC - Dallas Chapter 11 Business Bankruptcy.

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

4 years 9 months ago
The NYSE has posted its annual letters to its domestic and foreign listed companies on its website, with timely reminders of several key annual meeting deadlines and important regulations for U.S. companies, including: Broker search cards must be sent at least 20 business days before the record date for annual meetings (10 calendar days for special meetings); Notification to the Exchange at least 10 calendar days in advance of all record dates set for any purpose. Any changes will require another 10-day notice; Recommendation of a 30-day interval between the record date and meeting date Three copies of proxy materials must be sent to the Exchange when they are first sent to shareholders; and Annual CEO affirmations are due 30 days after the annual meeting, and interim affirmations are required within 5 business days after the triggering event.
4 years 9 months ago
While shareholder engagement has become a best practice, companies frequently wonder whether they should also reach out to the proxy advisory firms. We talked to Marc Goldstein, head of issuer engagement at ISS, to understand why issuers have become more interested in engaging with ISS, even for routine annual meeting matters, and how to start and develop a productive discussion. The ISS website also contains a helpful FAQ and contact information.
4 years 9 months ago
1st Circuit B.A.P. affirms Judge Hoffman's decision in Gonzalez v. Massachusetts Department of Revenue holding that certain income taxes may be discharged despite a "late filed" return.  http://volo.abi.org/gonzalez-v-massachusetts-department-of-revenue/opinion
4 years 9 months ago
Expanding upon its decision in Matter of Zibman, 268 F.3d 298 (5th Cir. 2001), the Fifth Circuit has ruled that the proceeds from sale of a Texas homestead lose their exempt character if they are not reinvested within six months--even when the sale takes place post-petition.   Viegelahn v. Frost (In re Frost), No. 12-50811 (5th Cir. 3/5/14).    The opinion can be found here.   The opinion creates a malpractice trap and arguably conflicts with this week's Supreme Court decision in Law v. Siegel.   The ProblemThe Bankruptcy Code states that "property exempted under this section is not liable during or after the case for any debt of the debtor that arose . . . before the commencement of the case" except for debts for taxes and domestic support obligations, unavoided liens, debts owed by an institution-affiliated party and debts for fraud incurred in obtaining a student loan.   11 U.S.C. Sec. 523(c).   Further, exempt property is not liable for administrative expenses except for the cost of recovering that property.   11 U.S.C. Sec.
4 years 9 months ago
On April 2-3, the PCAOB will host a public meeting, available via webcast, to discuss its proposal from August 2013 to include additional information in the audit report as noted in our client memo. Panelists and specific topics have not yet been announced, but is expected to include senior executives and audit committee chairs from companies.  
4 years 9 months ago
In a unanimous decision, the Supreme Court struck down the Ninth Circuit’s imposition of an equitable surcharge against a debtor’s exempt property in Law v. Siegel, No. 12-5196 (3/4/14).  The opinion can be found here.    The opinion by Justice Scalia represents a limitation on the equitable powers of bankruptcy courts to override statutory protections, even when a debtor has behaved badly.   The case is a counterpoint to Marrama v. Citizen’s Bank, 127 S.Ct.
4 years 9 months ago
Law v. Siegel  (U.S. Supreme Court opinion March 4, 2014)Exemptions Safe From Bankruptcy Court’s “Adjustment”Kevin C. McGee, Esq.PartnerSeder & Chandler, LLPWorcester, MA            On March 4, 2014, the U.S. Supreme Court decided Law v. Siegel, on an appeal from the Ninth Circuit. The facts were that the Chapter 7 debtor (Stephan Law), in his bankruptcy schedules, stated the following: (1) he owned a California residence, which he valued at $363,348.00; (2) he had two liens on the residence, with a $147,156.52 first mortgage held by Washington Mutual Bank, and a $156,929.04 second mortgage held by “Lin’s Mortgage Associates”; and (3) he claimed a $75,000.00 California homestead exemption in the equity in the residence.             Law’s Chapter 7 Trustee (Alfred H. Siegel) did not object to Law’s claimed homestead within thirty (30) days after Law’s meeting of creditors, as is required under Fed. R. Bankr. P. 4003(b)(1). However, Siegel did suspect that the second mortgage was not a legitimate debt, and started investigating. $500,000.00 in attorneys’ fees later, Siegel obtained an order invalidating the second mortgage as fraudulent. In addition, he petitioned the bankruptcy court to “surcharge” all of Law’s $75,000.00 exemption in the residence for Siegel’s attorneys’ fees (as permitted under 9th Circuit precedent). The bankruptcy court did so, on the basis that Law’s fraudulent and inequitable conduct permitted it to use 11 U.S.C.
4 years 9 months ago