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Curtis “50 Cent”Jackson speaks onstage during the “Power” panel at the Starz 2015 Winter TCA on Friday, Jan. 9, in Pasadena, Calif.
Richard Shotwell/Associated Press
Rapper 50 Cent disclosed his finances and met with creditors this week, revealing that he has two albums ready to drop. As Bankruptcy Beat reported, the rapper—real name Curtis James Jackson III—endured three hours of questioning Wednesday. And the press reports about the millions his client got from the sale of Glaceau Vitmainwater? They “are likely not accurate,” his lawyer said. U.S. Trustee Abigail Hausberg also got in a zinger, quoting Mr. Jackson’s hit “P.I.M.P.,” where he bragged “you can’t get a dollar outta me,” and telling the 40-year-old entertainer that was exactly what she was trying to do.

Read More from: WSJ.com: Bankruptcy Beat

3 years 1 month ago
Series: Real Estate Dumbed Down 2015 This webinar is designed to educate attorneys who are not real estate experts on the basics of representing a commercial landlord with the purpose of evicting a commercial tenant. This panel will focus on basic concepts that can be used in practical application to benefit your landlord client. Read more here.
3 years 1 month ago
“Startin’ to feel like there’s nothin’ left to talk about but the, money, money Bill collectors keep comin’ . . . to get money, money” -Curtis James Jackson, III – “Money” On this summer Friday, this blogger would like to take a moment to reflect on the flexibility of chapter 11.  Chapter 11 isn’t all about billion-dollar corporate debtors.  It’s available to help out the little guy too (assuming you have a large amount of debt and/or complex finances)!  From the likes of DMX to Anna Nicole Smith, celebrity bankruptcies are big news, and sometimes they result in significant changes in the law (see also Arkison, Wellness, and our other posts on the Stern Files).  Though there have not been any legal fireworks yet, we here at the Weil Bankruptcy Blog have been entertaining ourselves by following the latest celebrity bankruptcy: that of rapper Fifty Cent.
3 years 1 month ago
Monday in White Plains, N.Y., Great Atlantic & Pacific Tea Co. will seek court permission to auction off 120 of its stores and close another 25. The grocer, which filed for its second chapter 11 of the decade last month, is facing opposition to the sales and closures from landlords and the Pension Benefit Guaranty Corp., although most of the objections mention talks with A&P counsel and the probability that small changes will alleviate concerns. During its chapter 11 proceeding, A&P says it will sell and close the initial 145 stores—nearly half of its locations—before trying to quickly sell some others. The stores that don’t get sold will likely be closed. A&P exited its last chapter 11 in the hands of investors including supermarket mogul Ron Burkle, whose Yucaipa Cos. led a $490 million financing package that the company called its only alternative to full liquidation. A&P had hoped that bankruptcy would better position it to compete. It renegotiated labor costs with unions and adjusted food and supply-chain costs with vendors. It also planned to remodel outdated stores and modernize its technology. But sales slumped, labor costs continued to weigh, and the company ended up back in chapter 11. Next Friday in Manhattan, Relativity Media LLC will ask a judge to approve procedures for an auction of the Hollywood studio’s major assets.

Read More from: WSJ.com: Bankruptcy Beat

3 years 1 month ago
Monday in White Plains, N.Y., Great Atlantic & Pacific Tea Co. will seek court permission to auction off 120 of its stores and close another 25. The grocer, which filed for its second chapter 11 of the decade last month, is facing opposition to the sales and closures from landlords and the Pension Benefit Guaranty Corp., although most of the objections mention talks with A&P counsel and the probability that small changes will alleviate concerns. During its chapter 11 proceeding, A&P says it will sell and close the initial 145 stores—nearly half of its locations—before trying to quickly sell some others. The stores that don’t get sold will likely be closed. A&P exited its last chapter 11 in the hands of investors including supermarket mogul Ron Burkle, whose Yucaipa Cos. led a $490 million financing package that the company called its only alternative to full liquidation. A&P had hoped that bankruptcy would better position it to compete. It renegotiated labor costs with unions and adjusted food and supply-chain costs with vendors. It also planned to remodel outdated stores and modernize its technology. But sales slumped, labor costs continued to weigh, and the company ended up back in chapter 11. Next Friday in Manhattan, Relativity Media LLC will ask a judge to approve procedures for an auction of the Hollywood studio’s major assets.

Read More from: WSJ.com: Bankruptcy Beat

3 years 1 month ago
Monday in White Plains, N.Y., Great Atlantic & Pacific Tea Co. will seek court permission to auction off 120 of its stores and close another 25. The grocer, which filed for its second chapter 11 of the decade last month, is facing opposition to the sales and closures from landlords and the Pension Benefit Guaranty Corp., although most of the objections mention talks with A&P counsel and the probability that small changes will alleviate concerns. During its chapter 11 proceeding, A&P says it will sell and close the initial 145 stores—nearly half of its locations—before trying to quickly sell some others. The stores that don’t get sold will likely be closed. A&P exited its last chapter 11 in the hands of investors including supermarket mogul Ron Burkle, whose Yucaipa Cos. led a $490 million financing package that the company called its only alternative to full liquidation. A&P had hoped that bankruptcy would better position it to compete. It renegotiated labor costs with unions and adjusted food and supply-chain costs with vendors. It also planned to remodel outdated stores and modernize its technology. But sales slumped, labor costs continued to weigh, and the company ended up back in chapter 11. Next Friday in Manhattan, Relativity Media LLC will ask a judge to approve procedures for an auction of the Hollywood studio’s major assets.

Read More from: WSJ.com: Bankruptcy Beat

3 years 1 month ago
Blockchain technology may soon make the high fees, lengthy transaction times and opacity that have plagued legacy cross-border payments a thing of the past.

Read More from: BankThink

3 years 1 month ago
Receiving Wide Coverage ... O Canada: Canadian banks have a money-laundering problem, the Wall Street Journal reports. The country's regulator found 72 failures of anti-money laundering controls among banks between 2009 and 2014, according to the paper's review of a "heavily redacted" document that did not include the names of the banks or specifics about the issues. The paper notes Canada "has been facing growing pressure to step up efforts to fight money laundering." In other...

Read More from: BankThink

3 years 1 month ago
By Michael RielaVedder PriceNew York  In City of Concord v. Northern New England Telephone Operations LLC (In re Northern New EnglandTelephone Operations LLC), No. 14-3381, 2015 WL 4619576 (2d Cir. Aug. 4, 2015), the Second Circuit considered the circumstances under which a Chapter 11 plan extinguishes a lien.  Notably, although the general rule is that liens may pass through a bankruptcy unaffected, the Second Circuit held that a Chapter 11 plan can extinguish a lien when the lienholder had participated in the bankruptcy proceedings (by, for instance, filing a proof of claim in the bankruptcy case).  This case is an important reminder that if you are a secured creditor, there is a risk to simply filing a proof of claim in a Chapter 11 case and not diligently defending your lien rights thereafter.Section 506(d) and 1141(c) of the Bankruptcy Code  The Second Circuit observed that “[t]he longstanding background rule has been that ‘liens pass through bankruptcy unaffected.’”.  Id. at *2, citing Dewsnup v. Timm, 502 U.S.

Read More from: CLLA Bankruptcy Blog

3 years 1 month ago
The phrase "white privilege" has become a standard buzzword among social justice warriors in the United States and creeps from time to time into more mainstream fora, such as the (poorly argued) debate between Bill O'Reilly and Jon Stewart on The Daily Show last October.  In the New York Times a couple weeks ago, I read a Michiko Kakutani review of a new book by Ta-Nehisi Coates, a writer at The Atlantic whose column I used to read occasionally.   The review summarizes Coates' book as "a searing meditation [sic (I have no idea how a meditation can  "sear" anything)] on what it means to be black in America today. It takes the form of a letter from Mr.

Read More from: Necessary and Proper

3 years 1 month ago
The Pension Benefit Guaranty Corp. is opposing Great Atlantic & Pacific Tea Co.’s plan to quickly sell and close a number of its stores, and so are some landlords. 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.”) There has been a bump in chapter 11 bankruptcy filings, which rose 77% in July, DBR reports in WSJ. DBR reports on (sub. req) opposition to a deal tying up loose ends from the chapter 11 bankruptcy case of the former RadioShack.

Read More from: WSJ.com: Bankruptcy Beat

3 years 1 month ago
The Pension Benefit Guaranty Corp. is opposing Great Atlantic & Pacific Tea Co.’s plan to quickly sell and close a number of its stores, and so are some landlords. 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.”) There has been a bump in chapter 11 bankruptcy filings, which rose 77% in July, DBR reports in WSJ. DBR reports on (sub. req) opposition to a deal tying up loose ends from the chapter 11 bankruptcy case of the former RadioShack.

Read More from: WSJ.com: Bankruptcy Beat

3 years 1 month ago
The Pension Benefit Guaranty Corp. is opposing Great Atlantic & Pacific Tea Co.’s plan to quickly sell and close a number of its stores, and so are some landlords. 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.”) There has been a bump in chapter 11 bankruptcy filings, which rose 77% in July, DBR reports in WSJ. DBR reports on (sub. req) opposition to a deal tying up loose ends from the chapter 11 bankruptcy case of the former RadioShack.

Read More from: WSJ.com: Bankruptcy Beat

3 years 1 month ago
I never thought I'd write this, but Donald Trump speaks the truth, at least as far as bankruptcy is concerned.  There's plenty to criticize regarding Donald Trump, but I really wish the media would back off the bankruptcy angle of his career, or at least be smarter about it.  Let's start with the facts. Donald Trump has never filed for personal bankruptcy. But companies that he owns have filed for Chapter 11 four times. The mere fact of these filings is somehow imputed to be a personal failing of Donald Trump. I have never heard anyone suggest that the filings were because of Trump's bad management. Perhaps they were, but a bankruptcy filing is not in-and-of-itself a sign of any sort of moral failing, lack of business acumen, etc. Sometimes businesses go bankrupt because they're poorly run, and sometimes because of factors beyond their control. The Donald wasn't filing for bankruptcy like 50 Cent to attempt to avoid paying an intentional tort judgment. And indeed, how, much, if at all, was Trump involved in the management of the companies? I wouldn't be shocked if he was basically licensing his name. In any event, Trump's response about his companies' bankruptcy filings is "what's the big deal? I took advantage of the law. So do lots of people." (My paraphrase.)

Read More from: Credit Slips

3 years 1 month ago
Key Takeaway:  Second Circuit allows secured creditors to opt out of chapter 11 and preserve their liens from discharge. We have reported in this blog about the many courts that have clung to the archaic “lien rides through” principle espoused in the U.S. Supreme Court’s Dewsnup v. Timm chapter 7 case.  This principle permits a lien to “ride through” a bankruptcy case if the creditor did not “participate” in the case.  Of course, Dewsnup, as a chapter 7 case, did not involve the effect of discharge.  Instead, Dewsnup focused strictly on the interpretation and application of section 506(d) of the Bankruptcy Code.  Moreover, in deciding Dewsnup, the Supreme Court overlooked that the “lien rides through” principle harkens back to an era when the discharge only affected debts that could be “proved,” and secured debts could only be “proved” at that time for the amount of a deficiency claim.  
3 years 1 month ago
Bloomberg News
Ryan Kavanaugh, the chief executive of Beverly Hills-based Relativity Media LLC, isn’t holding back in defending his company’s business model and, by association, his reputation. “I will stand by our business model 100 percent,” he said in a recent interview with The Hollywood Reporter. “This company should not be in bankruptcy.” The controversial financier, who has led Relativity from its founding in 2004 through its collapse into bankruptcy last month, outlined what he says was a scheme to take over the business. In the interview, Mr. Kavanaugh said Colbeck Capital, which holds a place on Relativity’s board of directors, tried to sabotage a recent bid to raise $200 million, and, in effect, steal the company. “The Relativity Board and Ryan Kavanaugh fully authorized Colbeck to run this parallel process,” a representative for Colbeck said in response to the allegations that it was working behind Mr. Kavanaugh’s back. Asked whether or not he would sue over the dispute, Mr. Kavanaugh wouldn’t say.  But he said he has a good case. “I can tell you that people with knowledge of the situation say I have, quote, ‘the mother of all lawsuits,’” he said in the interview.

Read More from: WSJ.com: Bankruptcy Beat

3 years 1 month ago
Bloomberg News
Ryan Kavanaugh, the chief executive of Beverly Hills-based Relativity Media LLC, isn’t holding back in defending his company’s business model and, by association, his reputation. “I will stand by our business model 100 percent,” he said in a recent interview with The Hollywood Reporter. “This company should not be in bankruptcy.” The controversial financier, who has led Relativity from its founding in 2004 through its collapse into bankruptcy last month, outlined what he says was a scheme to take over the business. In the interview, Mr. Kavanaugh said Colbeck Capital, which holds a place on Relativity’s board of directors, tried to sabotage a recent bid to raise $200 million, and, in effect, steal the company. “The Relativity Board and Ryan Kavanaugh fully authorized Colbeck to run this parallel process,” a representative for Colbeck said in response to the allegations that it was working behind Mr. Kavanaugh’s back. Asked whether or not he would sue over the dispute, Mr. Kavanaugh wouldn’t say.  But he said he has a good case. “I can tell you that people with knowledge of the situation say I have, quote, ‘the mother of all lawsuits,’” he said in the interview.

Read More from: WSJ.com: Bankruptcy Beat

3 years 1 month ago
Bloomberg News
Ryan Kavanaugh, the chief executive of Beverly Hills-based Relativity Media LLC, isn’t holding back in defending his company’s business model and, by association, his reputation. “I will stand by our business model 100 percent,” he said in a recent interview with The Hollywood Reporter. “This company should not be in bankruptcy.” The controversial financier, who has led Relativity from its founding in 2004 through its collapse into bankruptcy last month, outlined what he says was a scheme to take over the business. In the interview, Mr. Kavanaugh said Colbeck Capital, which holds a place on Relativity’s board of directors, tried to sabotage a recent bid to raise $200 million, and, in effect, steal the company. “The Relativity Board and Ryan Kavanaugh fully authorized Colbeck to run this parallel process,” a representative for Colbeck said in response to the allegations that it was working behind Mr. Kavanaugh’s back. Asked whether or not he would sue over the dispute, Mr. Kavanaugh wouldn’t say.  But he said he has a good case. “I can tell you that people with knowledge of the situation say I have, quote, ‘the mother of all lawsuits,’” he said in the interview.

Read More from: WSJ.com: Bankruptcy Beat

3 years 1 month ago
Rep. Ann Wagner of Missouri is urging House Banking Chair Jeb Hensarling to recruit more female Republicans to the influential panel. Also women are wielding more economic power in the Middle East and Heidrick & Struggles predicts that women will hold half of board seats at major companies within a decade.

Read More from: BankThink

3 years 1 month ago
In May, we wrote about a number of recent cases addressing the enforceability of oral agreements in syndicated loan and bankruptcy claims trading. One of those cases, Solus v. Perry, is still active at the trial court level in New York. Last month, the court entered an order denying both parties’ motions for summary judgment. At issue in Solus v. Perry is whether the parties agreed to all of the material terms of a transaction in which Solus would purchase Perry’s participation interests in claims against the bankruptcy estate of Ponzi schemester Bernie Madoff’s investment firm. Although Solus and Perry never signed a written contract, Solus argues that the parties agreed to all of the material terms necessary to create a binding oral agreement under New York law (i.e., asset, quantity, and price) in recorded telephone conversations, emails, and Bloomberg messages.  Perry contends that no agreement was formed because certain other terms (which Perry characterizes as material) were left open, including how litigation risks and fees would be allocated and whether Perry would have to indemnify Solus for any potential damages resulting from Perry’s bad acts.
3 years 1 month ago