Help Center

ABI Blog Exchange

In a Breaking News Alert  at CommercialBankruptcyInvestor.com, Chapter11Dockets.com provides an overview of Energy Future Holdings October 2014 operating report.  Read the overview here!
3 years 7 months ago
In a Breaking News Alert  at CommercialBankruptcyInvestor.com, Chapter11Dockets.com breaks down the final report filed by the liquidating trustee in Nutritional Sourcing Corporation’s bankruptcy case. Read the article here!
3 years 7 months ago
n a Breaking News Alert  at CommercialBankruptcyInvestor.com, Chapter11Dockets.com discusses Longview Power, LLC’s agreement to enter into a Fifth Amendment to its DIP Credit Agreement.  Read the article here!
3 years 7 months ago
CommericalBankruptcyInvestor.com posted a new article analyzing the current financial crunch Connacher Oil & Gas is experiencing. Read the in depth article here!
3 years 7 months ago
In a Breaking News Alert  at CommercialBankruptcyInvestor.com, Chapter11Dockets.com notes that the  second amended liquidating chapter 11 plan of Capital Trust Holdings, Inc. (f/k/a First Mariner Bancorp) was confirmed. Find a link to the confirmation order here!
3 years 7 months ago
Just received this month's ABI Journal. I surely can't be the only one who finds the ad for the BMC Group – inside the front cover – obnoxious, even offensive (I'm not going to dignify it by reproducing it). I get that sex sells ... but in a bankruptcy journal, advertising a claims agent?

Read More from: Credit Slips

3 years 7 months ago
In a Radio Shack Bankruptcy Watch at CommercialBankruptcyInvestor.com, the Editorial Staff discusses recent chess moves by various lending groups in their effort to  push Radio Shack into default. A very interesting perspective! Read the article here!
3 years 7 months ago
In a Breaking News Alert  at CommercialBankruptcyInvestor.com, Chapter11Dockets.com discusses teen retailer dELiA*s, Inc. recent chapter 11 filing. Read more here!
3 years 7 months ago
The SEC Office of Chief Counsel has determined that Whole Foods can exclude a shareholder proposal asking the board to adopt a proxy access bylaw to allow one or more shareholders owning at least 3% of the company’s shares continuously for three years to nominate candidates, for up to 20% of the board, which we previously discussed here. The SEC staff agreed that the company’s own proxy access proposal that it will be asking shareholders to vote on at the 2015 annual meeting, which would permit proxy access for one shareholder owning 9% for five years to nominate one director or 10% of the board, presents alternative and conflicting decisions for shareholders.  
3 years 7 months ago
A debtor’s prepetition causes of action and other legal interests typically become property of the debtor’s estate under section 541 of the Bankruptcy Code. In a chapter 11 case, this often leaves the trustee (or debtor in possession) with the sole authority to pursue – or not pursue – such causes of action postpetition. Although the trustee is generally required to maximize the value of the estate, situations can arise where a trustee refuses to pursue litigation that is otherwise in the estate’s best interest. A debtor in possession may, for example, refuse to pursue avoidance actions against insiders or members of management even though such actions could result in substantial recoveries for the estate. Faced with such inaction, creditors may attempt to assert such claims directly on behalf of the estate. In response, courts developed the doctrine of derivative standing, which allows creditors (typically acting through official committees) to step into the trustee’s shoes to assert claims on behalf of the estate. 
3 years 7 months ago
You know what they say about investing in land: “they’re not making any more of it.” And you may have heard people say this about investing in wine: “If I run out of money, I can always drink it.” Can wine actually be a good investment? Read more here.
3 years 7 months ago
Colorado's interest rate cap on payday lending has successfully brought down costs for borrowers, but the state continues to experience unacceptably high default rates.

Read More from: BankThink

3 years 7 months ago
Receiving Wide Coverage ... Break Up or Buckle Up: JPMorgan Chase will be the bank hardest hit by the Federal Reserve's proposed capital surcharges on the country's biggest banks. Fed vice chairman Stanley Fischer let slip that JPMorgan faces a $22 billion shortfall to meet the forthcoming capital rule during a question and answer session, as American Banker reported last night. Other banks are apparently at or near the minimum levels, and JPMorgan has until 2019...

Read More from: BankThink

3 years 7 months ago
Why does the world hate lawyers?  Because of stuff like this.  You can't make this up:  the on-line menu prices for a Chinese restaurant weren't up-to-date, and a customer was overcharged $4. I get being pissed about that.  But what would most people do?  Just lump it, stop patronizing the restaurant, ask the restaurant for a refund, or complain to the credit card issuer. But in this case, the customer has a JD (and to make it more delicious, happens be a Harvard Business School professor). The professor decides to go all legal on the restaurant, demanding $12, as treble damages under Massachusetts' unfair and deceptive acts and practices (UDAP) statute, MGL 93a (even citing the statute!).   I get why people would be hating on the professor for that alone. But here's what really peeves me. He gets MGL 93a wrong!!!  (I happen to teach this statute.) The professor is demanding something that he almost assuredly cannot get under law. As an initial matter, it's important to know that there is no scienter (intent) requirement for MGL 93a.  A negligent misrepresentation is as much of a violation as an intentional one.  The interesting issue is the remedy.  Let's look at the relevant part of the statute:

Read More from: Credit Slips

3 years 7 months ago
Bank directors and officers who agree to settle claims brought by the Federal Deposit Insurance Corp. in its capacity as receiver may find themselves next confronting a lifetime ban from the industry.

Read More from: BankThink

3 years 7 months ago
The propositions diminishing secured creditors' protections deserve careful attention as I think that, while not as bad as was being advocated, they remain unsound policy. These changes fall under two main headings, first, diminished protection of the secured claim during the case and second, a prospective "haircut" in "senior" recoveries (the word "senior" is sometimes used specifically to mean secured claims, and sometimes ambiguously as possibly operating between levels of unsecured claims and sometimes even between the unsecured class vs equity).  For this post I am going to just focus on the second for now, because it is the more complicated and thus the one I have spent more time trying to understand. The crux of the proposed changes to distributions of value to secured creditors under plans and in 363 sales is to create a "redemption option premium" ("ROP" for shorthand), the definition of which has been carefully labored over and resembles ideas that have kicked around outside of the commission for a few years.

Read More from: Necessary and Proper

3 years 7 months ago
If a creditor violates the automatic stay by seizing property of the estate and fails to cure that violation before the debtor files an action under sec. 362(k), may the debtor recover his attorney’s fees for prosecuting the stay violation under sec. 362(k)?  The Ninth Circuit Court of Appeals recently ruled that, in these circumstances, attorney’s fees incurred in prosecuting a stay violation are recoverable by a debtor against the creditor committing the violation. In Snowden v. Check into Cash of Washington, Inc. (In the Matter of: Rupanjali Snowden), 769 F.3d 651 (9th Cir. 2014), the debtor obtained a payday loan from Check into Cash of Washington (“CIC”), giving CIC a post-dated check to repay the loan.  Before the loan came due, the debtor stopped payment on the check and advised CIC that she would be filing bankruptcy.  Following this information, and after the debtor filed bankruptcy, CIC engaged in harassing conduct—calling her at work numerous times each day even after she told them to stop, and requiring the debtor to call CIC’s offices every day or it would call her “references” and give them embarrassing information about her.  After the debtor filed bankruptcy, CIC successfully used an electronic funds transfer to debit the debtor’s account for the amount of the loan, causing the debtor’s account to be overdrawn and for the debtor to incur bank charges.

Read More from: Creditors' Rights

3 years 7 months ago
Accredited Investor Markets sits down with Propel(x) CEO Swati Chaturvedi. Propel(x) is an online angel investing platform focused on the niche of “deep technology” startups – that is, startups that are founded on a true technological innovation or scientific discovery. Read more here.
3 years 7 months ago
NORTH OF THE BORDER UPDATE This article has been contributed to the blog by Andrea Lockhart, an Associate in the Insolvency and Restructuring Group of Osler, Hoskin & Harcourt LLP, and Mary Angela Rowe, an Articling Student-at-Law at the firm
3 years 7 months ago
For too long, both companies and regulators have bought into a narrative that makes the financial industry dependent on the government for rescues and direction. ItÂ's time to pen a new plot.

Read More from: BankThink

3 years 7 months ago