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Lawyers who recently put the Balmoral Racing Club outside Chicago into bankruptcy are preparing to fight the $82 million penalty that hit the horse-racing operation over an alleged bribery scheme involving disgraced ex-Illinois Gov. Rod Blagojevich. Balmoral Racing Club lawyers plan to appeal the judgment from a lawsuit filed by the state’s four largest riverboat casinos, which accused the racetrack’s owners of illegally promising to contribute money to Mr. Blagojevich’s campaign if he renewed a 3% tax on the riverboat casinos. That deal was captured on wiretaps during the Federal Bureau of Investigation’s five-year investigation into public corruption in Illinois, according to the federal lawsuit that the riverboat casinos filed in 2009. The lawsuit said that Mr. Blagojevich’s campaign committee got $125,000 in donations from Balmoral Racing-related entities and was scheduled to take in another $100,000 around the time that he was arrested in late 2008 on federal corruption charges. (In 2012, he began serving a 14-year prison sentence.) After a weeklong trial in December, a jury decided in favor of the riverboat casinos, leading to the multimillion-dollar judgment. The racetrack’s Chapter 11 filing on Dec. 24 prevented the riverboats from trying to collect money on the judgment. In earlier court papers, Balmoral Racing Club’s lawyers called the allegations of extortion “nonsense.”

Read More from: WSJ.com: Bankruptcy Beat

3 years 7 months ago
In Episode 18 of Accredited Investor Markets Radio, David Drake of The Soho Loft and LDJ Capital, discusses real estate investing and crowdfunding in a comparative perspective with host, Chris Cahill. The conversation moves from the development of accredited investment platforms in real estate debt and equity in the United States to crowdfunding in the U.K., Italy, and elsewhere. For Mr. Drake, when it comes to investment safe havens, be it ever so humble, there’s no place like Manhattan real estate.   Learn more about David Drake, The Soho Loft and LDJ Capital by visiting www.ldjcaptial.com and thesoholoft.com  You can also find him here: Twitter: @TheSohoLoft LinkedIn: https://www.linkedin.com/in/ldjcapital David Drake is a leading equity expert based in New York. He is the founder and chairman of LDJ Capital, a private equity advisory firm, and of The Soho Loft, an event-driven global financial media company. Mr. Drake is a strong advocate of innovative investing in early-stage equity and the US JOBS Act, for which he lobbied both Congress and the EU Commission. Because of his leading work in this space, he was a US Commerce Department delegate to the EU Commission in Brussels and Rome, and was invited in May 2013 to the White House Champions of Change ceremony in Washington, D.C.  
3 years 7 months ago
This week on The Broke and the Beautiful, “Real Housewives of New Jersey” star Teresa Giudice surrendered to prison officials, and slashed the sale price for her mansion. Also, a complaint against Paul Simon seeking $17,000 was dropped.
Teresa Giudice, 41, arrives at the court in Newark, N.J., in this file photo taken March 4, 2014. Giudice of “The Real Housewives of New Jersey” reality television series surrendered on Monday to begin a 15-month prison sentence for fraud and hiding income to support a lavish lifestyle, according to her lawyer’s office and a prison spokesman. 
Eduardo Munoz/Reuters

Read More from: WSJ.com: Bankruptcy Beat

3 years 7 months ago
This week on The Broke and the Beautiful, “Real Housewives of New Jersey” star Teresa Giudice surrendered to prison officials, and slashed the sale price for her mansion. Also, a complaint against Paul Simon seeking $17,000 was dropped.
Teresa Giudice, 41, arrives at the court in Newark, N.J., in this file photo taken March 4, 2014. Giudice of “The Real Housewives of New Jersey” reality television series surrendered on Monday to begin a 15-month prison sentence for fraud and hiding income to support a lavish lifestyle, according to her lawyer’s office and a prison spokesman. 
Eduardo Munoz/Reuters

Read More from: WSJ.com: Bankruptcy Beat

3 years 7 months ago
A recap of the informed opinions (and the discussions they generated) on BankThink this week.

Read More from: BankThink

3 years 7 months ago
LightSquared on Thursday will ask a New York bankruptcy judge to sign off on a version of its restructuring strategy, which, if approved, will be send out to creditors for a vote. Last month, LightSquared filed the latest of its restructuring proposals, one that includes Harbinger Capital Partners’ Philip Falcone but proposes to give control of the company to others, including Fortress Investment Group LLC and Centerbridge Partners LP. The plan presented by LightSquared last month would pay off its largest creditor, Dish Network Corp  Chairman Charlie Ergen, via a five-year note rather than cash. Mr. Ergen, who is owed about $1 billion, is the only major creditor who doesn’t support the plan. Under the plan, Mr. Falcone’s Harbinger would own 44.4% of LightSquared’s equity, with Fortress getting 26.2% and Centerbridge 8.1%. The rest of the equity would go to current investors in a smaller piece of the company, called LightSquared Inc. On Friday in Wilmington, Del., Trump Entertainment Resorts Inc. will ask Judge Kevin Gross to sign off on a revised turnaround plan based on the promise of a $20 million lifeline from Carl Icahn, the billionaire lender who is trying to get the gambling company out of bankruptcy in one piece.

Read More from: WSJ.com: Bankruptcy Beat

3 years 7 months ago
LightSquared on Thursday will ask a New York bankruptcy judge to sign off on a version of its restructuring strategy, which, if approved, will be send out to creditors for a vote. Last month, LightSquared filed the latest of its restructuring proposals, one that includes Harbinger Capital Partners’ Philip Falcone but proposes to give control of the company to others, including Fortress Investment Group LLC and Centerbridge Partners LP. The plan presented by LightSquared last month would pay off its largest creditor, Dish Network Corp  Chairman Charlie Ergen, via a five-year note rather than cash. Mr. Ergen, who is owed about $1 billion, is the only major creditor who doesn’t support the plan. Under the plan, Mr. Falcone’s Harbinger would own 44.4% of LightSquared’s equity, with Fortress getting 26.2% and Centerbridge 8.1%. The rest of the equity would go to current investors in a smaller piece of the company, called LightSquared Inc. On Friday in Wilmington, Del., Trump Entertainment Resorts Inc. will ask Judge Kevin Gross to sign off on a revised turnaround plan based on the promise of a $20 million lifeline from Carl Icahn, the billionaire lender who is trying to get the gambling company out of bankruptcy in one piece.

Read More from: WSJ.com: Bankruptcy Beat

3 years 7 months ago
“Each player must accept the cards life deals him or her: but once they are in hand, he or she alone must decide how to play the cards in order to win the game.” – Voltaire Where a creditor has a lien attached to proceeds of a particular transaction “in whose hands they may come,” does the charging lienor have to identify a specific, isolated fund to which its lien attaches? In In re Trump Entertainment Resorts, Inc., the United States Bankruptcy Court for the District of Delaware answered “no” (at least with respect to attorney’s charging liens in New Jersey). In so doing, the Bankruptcy Court also affirmed the common law rule that “first in time is first in right.” Know When To Hold ‘Em
3 years 7 months ago
Tourists visit the Statue of Liberty in New York Harbor, Sunday, Oct. 13, 2013, in New York. The Statue of Liberty reopened to the public after the state of New York agreed to shoulder the costs of running the site during the partial federal government shutdown. (AP Photo/John Minchillo)
Associated Press
A New York architecture and interior-design firm with roots dating back more than a century has filed for Chapter 11 protection, citing its inability to collect more than $2 million from an assignment in Russia. Unlike many companies that go into bankruptcy, Swanke Hayden Connell doesn’t have any major bank loans or other secured debt. Instead, the firm says in court filings that a shortage of cash and its inability to pay its bills led to the bankruptcy.

Read More from: WSJ.com: Bankruptcy Beat

3 years 7 months ago
Tourists visit the Statue of Liberty in New York Harbor, Sunday, Oct. 13, 2013, in New York. The Statue of Liberty reopened to the public after the state of New York agreed to shoulder the costs of running the site during the partial federal government shutdown. (AP Photo/John Minchillo)
Associated Press
A New York architecture and interior-design firm with roots dating back more than a century has filed for Chapter 11 protection, citing its inability to collect more than $2 million from an assignment in Russia. Unlike many companies that go into bankruptcy, Swanke Hayden Connell doesn’t have any major bank loans or other secured debt. Instead, the firm says in court filings that a shortage of cash and its inability to pay its bills led to the bankruptcy.

Read More from: WSJ.com: Bankruptcy Beat

3 years 7 months ago
Tourists visit the Statue of Liberty in New York Harbor, Sunday, Oct. 13, 2013, in New York. The Statue of Liberty reopened to the public after the state of New York agreed to shoulder the costs of running the site during the partial federal government shutdown. (AP Photo/John Minchillo)
Associated Press
A New York architecture and interior-design firm with roots dating back more than a century has filed for Chapter 11 protection, citing its inability to collect more than $2 million from an assignment in Russia. Unlike many companies that go into bankruptcy, Swanke Hayden Connell doesn’t have any major bank loans or other secured debt. Instead, the firm says in court filings that a shortage of cash and its inability to pay its bills led to the bankruptcy.

Read More from: WSJ.com: Bankruptcy Beat

3 years 7 months ago
Las leyes sobre Bancarrota no hacen mención de que el deudor necesite tener un estatus legal o ser ciudadano de los Estados Unidos para poder aplicar para una petición de Bancarrota. El Código de los Estados Unidos en su  titulo 11 sobre Bancarrota, Capítulo 1, § 109 titulado “Quien puede ser un deudor” establece que: (a) No obstante, alguna otra provisión de esta sección, solo una persona que reside o ha tenido un domicilio, lugar de negocio o propiedad en los Estados Unidos, o una municipalidad, puede ser un deudor bajo este Título. (1) Por lo tanto, usted puede solicitar Bancarrota si ha residido en los Estados Unidos y ha obtenido un ITIN (Numero de Identificación Personal del Contribuyente) El IRS otorga los ITIN con el fin de ayudar a individuos cumplir con las leyes tributarias de los Estados Unidos, y para proveer una manera eficaz de procesar y contabilizar declaraciones y pagos de los que no son elegibles para Números de Seguro Social.(2) Si usted ha utilizado otro número de Seguro Social para obtener un préstamo o crédito, usted debería consultar a un Abogado porque las deudas no podrían ser canceladas. También, las peticiones de Bancarrota son documentos públicos, por lo tanto es importante que usted obtenga consejo de un Abogado para evitar futuras investigaciones relacionadas con robo de identidad por aplicar con un número de Seguro Social que no le pertenece a usted.

Read More from: Scholnick Law

3 years 7 months ago
Getty Images
Struggling teen retailer Wet Seal Inc. has hired restructuring lawyers to help the company with a potential bankruptcy filing, according to people familiar with the matter. 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 our homepage, scroll to the bottom and click “try for free.”) Federal investigators say the company responsible for a chemical leak that contaminated the water supply for 300,000 people in West Virginia last year knew about problems at its storage facility for more than a decade, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

3 years 7 months ago
Getty Images
Struggling teen retailer Wet Seal Inc. has hired restructuring lawyers to help the company with a potential bankruptcy filing, according to people familiar with the matter. 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 our homepage, scroll to the bottom and click “try for free.”) Federal investigators say the company responsible for a chemical leak that contaminated the water supply for 300,000 people in West Virginia last year knew about problems at its storage facility for more than a decade, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

3 years 7 months ago
Getty Images
Struggling teen retailer Wet Seal Inc. has hired restructuring lawyers to help the company with a potential bankruptcy filing, according to people familiar with the matter. 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 our homepage, scroll to the bottom and click “try for free.”) Federal investigators say the company responsible for a chemical leak that contaminated the water supply for 300,000 people in West Virginia last year knew about problems at its storage facility for more than a decade, DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

3 years 7 months ago
In re Triple A & R Inv., Inc., 519 B.R. 581 (Bankr. D. P.R. 2014) – A mortgagee moved for relief from the automatic stay based on the debtor’s prepetition consent to stay relief.  The debtor argued that a prepetition waiver … Continue reading →
3 years 7 months ago
“Wealth is the transfer of money from the impatient to the patient.”  Warren Buffett Deborah Sutton writes an excellent article in The Desert News about budgeting for the fun things in life.  The word “budget” has a negative vibe to it.  To budget is to deny yourself—to live within your means and that implies not enjoying as much fun as when you don’t live on a budget.  Living on a budget is about as much fun as going on a celery and oatmeal diet.
The human brain has a lot psychological resistance to the entire idea of budgeting and dieting,” said financial psychologist Brad Klontz. To purposely cut out enjoyable things creates a sense of depravation and it leads to overspending and overeating.
According to Klontz (@DrBradKlontz), establishing a budget with a “Fun Fund” is essential in order to motivate a person to stick to the spending plan.
When people get really excited about a certain goal, like a vacation or a new TV, saving is almost effortless. It becomes fun to do it,” said Klontz.
3 years 7 months ago
Many bankruptcies are prompted by foreclosure postings.   Often the debtor must weigh whether to seek an injunction vs. filing bankruptcy.   A recent Texas case makes the point that simply getting the court to grant an injunction is not enough.   Unless the procedures are strictly followed, the injunction may not be valid.   However, that does not mean that the path will be easy as one substitute trustee found out.   The case is In re Chaumette, 2014 Tex. App. LEXIS 13799 (Tex. App.--Houston[1st.Dist.], 2014, orig. proc.).    Black Sigma, LLC sought a temporary injunction against Michael Robinson to prevent a trustee's sale of its property.   On August 22, 2011, the trial court heard the movant's evidence then cut the hearing short stating that he had a criminal docket to attend to.   The trial court stated that the movant had put on enough evidence.  The creditor protested that he had evidence to put on as well but was not allowed to do so.   The trial court entered a temporary injunction which read as follows:
The Court, having held a hearing and received evidence from Plaintiff requesting injunctive relief and argument of counsel, if any, is of the opinion that Plaintiff's application has merit and an injunction should be and is hereby GRANTED.The Court finds:1. Plaintiff has a probable right on final trial to the relief that it seeks;2.
3 years 7 months ago
The final count for 2014 U.S. bankruptcy filings is in, thanks to the data from the ever-helpful Epiq Systems. There was a total of 910,090 total bankruptcies in 2014, a decline of 11.8% from the previous year. In early June, my prediction was for 2014 bankruptcies to be "just over 900,000," a solid prediction but with half the data already in the books. My prediction for 2015 bankruptcies is somewhere around 800,000, which would be another decline of 12%. I arrived at that figure in two ways. First, the bankruptcy filings for the last six months of the last four calendar years have been between 53% - 55% of the filings for the next calendar year. Using the last six months of 2014 as a similar benchmark for 2015 produces an estimate of between 782,000 and 812,000 filings. This method is admittedly crude but also gives a starting point for an estimate.

Read More from: Credit Slips

3 years 7 months ago
In Sunshine Heifers, LLC v. Citizens First Bank (In re Purdy), 763 F.3d 513 (6th Cir. 2014), a divided Sixth Circuit reversed the bankruptcy court’s finding that cattle leases were disguised security interests. Over the course of three years, Debtor Lee Purdy entered into several leases with Sunshine Heifers for a total of 435 dairy cows. When Purdy filed for bankruptcy protection in 2012, Sunshine moved to retake possession of its herd. Purdy’s lender, Citizens First Bank, claimed that its perfected security interest in equipment, farm products, and livestock had priority. After refinancing his debt with Citizens and granting security interests in his livestock, Purdy contacted Sunshine to increase his herd. The agreements with Sunshine prohibited Purdy from terminating the leases and Purdy agreed to return the cows after 50 months. Purdy guaranteed that the residual value of each head would be between $290 and $300. In conjunction with the leases, Purdy executed security agreements and Sunshine filed financing statements. The bankruptcy court for the Western District of Kentucky found the Sunshine leases to be per se security agreements and junior to Citizens.

Read More from: Creditors' Sidebar

3 years 7 months ago