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On May 5, 2015, Outten & Golden LLP and Loizides, P.A. filed a class action adversary proceeding complaint for violation of the WARN Act in the Corinthian Colleges bankruptcy.  The Corinthian Colleges bankruptcy is case number 15-10952 and this adversary proceeding is number 15-50309. The Delaware Bankruptcy Court has previously published opinions concerning the WARN Act, as can be seen in our prior posts: Decision in Powermate Holding Corp. Declines to Grant Administrative Claim Status to Employee WARN Act Claims Decision in Tweeter Opco, LLC., Holds Non-Debtor Controlling Company Liable for Debtor’s Violation of the WARN Act
5 years 2 months ago
Yoav Shapira and Lisa Redpenning, both from Boston, display their tickets for Super Bowl XLIX bought at the NFL ticket exchange Jan. 31 in Phoenix.
Charlie Riedel/Associated Press
A Super Bowl ticket seller has filed for bankruptcy to deal with upset customers who showed up to Super Bowl XVIX in Arizona only to find out that their ticket purchases had fallen through, in some cases, just hours before kick-off. The Queens, N.Y.-based SBTickets.com issued refunds, but customers who had journeyed from as far as Brazil, Australia and Papua New Guinea are pushing for travel and lodging money for missing out on the New England Patriots’ win over the Seattle Seahawks via that jaw-dropping interception in the final seconds. Washington state Attorney General Bob Ferguson, whose office has taken 35 complaints against the company, sued SBTickets.com in March, seeking $2,000 per violation of the state’s Consumer Protection Act.

Read More from: WSJ.com: Bankruptcy Beat

5 years 2 months ago
Yoav Shapira and Lisa Redpenning, both from Boston, display their tickets for Super Bowl XLIX bought at the NFL ticket exchange Jan. 31 in Phoenix.
Charlie Riedel/Associated Press
A Super Bowl ticket seller has filed for bankruptcy to deal with upset customers who showed up to Super Bowl XVIX in Arizona only to find out that their ticket purchases had fallen through, in some cases, just hours before kick-off. The Queens, N.Y.-based SBTickets.com issued refunds, but customers who had journeyed from as far as Brazil, Australia and Papua New Guinea are pushing for travel and lodging money for missing out on the New England Patriots’ win over the Seattle Seahawks via that jaw-dropping interception in the final seconds. Washington state Attorney General Bob Ferguson, whose office has taken 35 complaints against the company, sued SBTickets.com in March, seeking $2,000 per violation of the state’s Consumer Protection Act.

Read More from: WSJ.com: Bankruptcy Beat

5 years 2 months ago
If you have not done so already, you’ll want to read Part 1 and Part 2 of this series first, before delving into this final Part 3. So, now that we know that this “shale revolution” has at least been a short-term game changer, it’s time to get into some more specifics of how unconventional oil sources should impact our long-term perspective. Read more here.
5 years 2 months ago
There will always be a need for small-dollar loans. But loans that trap people in debt and burden borrowers with triple-digit interest rates are simply abusive.

Read More from: BankThink

5 years 2 months ago
Divorce may affect your Social Security disability payments in ways you may not be aware of. Read the following information from experienced Social Security disability attorney Jeff Scholnick. A clean, smooth divorce can bring back a lot of good into your life. However, there are areas of divorce that often go unseen. Don’t let anything catch you by surprise. Instead, be aware of all that it brings -including how it affects Social Security benefits. Divorce can affect your disability payments in a number of ways and it is important to be knowledgeable. Receiving Social Security Income (SSI) benefits can increase your payments because it is a need-based benefit, meaning that your payment is calculated based on the amount of resources that are currently available to you. This includes a portion of your spouse’s income as well as contribution to your living expenses. The circumstances are slightly different if you are receiving SSDI or SSD based on your own work history. Since your disability benefits are strictly dependent on your work history, your payments will not be affected by the divorce. If you are required to pay child support after a divorce, your disability payment may decrease in order to satisfy those payments.

Read More from: Scholnick Law

5 years 2 months ago
As more and more investors become comfortable with online platforms, many of them are turning away from the traditional personal financial advisor.  In a recent article, this newspaper discussed the new start-up Robinhood. Read more here.
5 years 2 months ago
Bankers give too much credence to futurists and financial gurus who warn that technology will render the in-branch experience obsolete.

Read More from: BankThink

5 years 2 months ago
Joshua Roberts/Reuters
The U.S. Supreme Court Monday ruled that a homeowner who failed to win confirmation of his bankruptcy-exit plan can’t immediately appeal the decision. 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 judge Monday declined to set a date for confirmation of the chapter 11 plan for Energy Future Holdings Corp., DBR (sub. req.) reports. West Virginia regulators accused Freedom Industries Inc. of trying to get concessions on cleanup obligations at the site of its massive chemical spill last year, the Associated Press reported.

Read More from: WSJ.com: Bankruptcy Beat

5 years 2 months ago
Receiving Wide Coverage ... Fed Pressed Over Leak: The Justice Department doesn't just go after big banks Â-- it also pursues their regulators. The DOJ has joined the Federal Reserve's inspector general in investigating the Fed over a 2012 leak of its policy meeting minutes to a consulting firm. Fed chair Janet Yellen disclosed the news in a Monday letter to the House Financial Services Committee, which is conducting its own probe into the leak. Yellen...

Read More from: BankThink

5 years 2 months ago
On May 4, 2015, one of the largest for-profit post-secondary education companies in the United States and Canada, Corinthian Colleges, Inc., and 24 of its affiliates, filed voluntary chapter 11 petitions in the Bankruptcy Court for the District of Delaware.  The cases are docketed as case no. 15-10952 and have been assigned to the Honorable Kevin J. Carey.  The petition lists assets of approximately $19.2 million and liabilities of $143.1 million. In support of the petitions, the Debtors filed the Declaration of William J. Nolan, the Chief Restructuring Officer of the Debtors and a Senior Managing Director with FTI Consulting, Inc.  According to the Nolan Declaration, as of March 31, 2015, the Debtors had over 100 campuses, 74,000 students and 10,000 employees.  The Nolan Declaration states that in addition to approximately $105 million of outstanding obligations under their prepetition secured credit agreement, the Debtors have another $100 million of unsecured debt owing to landlords, trade creditors, lessors, employees and students, as well as regulatory refunds, fines and penalties.
5 years 2 months ago
Fintech startups offer affordable loan rates and fast turnaround times. But banks have the advantage of offering multiple services all under one roof Â-- or website.

Read More from: BankThink

5 years 2 months ago
REUTERS
In a downtown Manhattan courtroom, assistant district attorney Peirce Moser briefed a crowd of would-be jurors on what to expect over the four to six months it’ll take to try three former leaders of the law firm Dewey & LeBoeuf on criminal fraud charges. “Unlike on TV, no one’s going to run in at the last minute with the crucial piece of evidence that changes the whole case,” Mr. Moser said on Friday. Mr. Moser and attorneys for the three defendants–Dewey’s ex-chair Steven Davis, former executive director Stephen DiCarmine, and ex-chief financial officer Joel Sanders–culled through hundreds of potential jurors over five days last week.

Read More from: WSJ.com: Bankruptcy Beat

5 years 2 months ago
REUTERS
In a downtown Manhattan courtroom, assistant district attorney Peirce Moser briefed a crowd of would-be jurors on what to expect over the four to six months it’ll take to try three former leaders of the law firm Dewey & LeBoeuf on criminal fraud charges. “Unlike on TV, no one’s going to run in at the last minute with the crucial piece of evidence that changes the whole case,” Mr. Moser said on Friday. Mr. Moser and attorneys for the three defendants–Dewey’s ex-chair Steven Davis, former executive director Stephen DiCarmine, and ex-chief financial officer Joel Sanders–culled through hundreds of potential jurors over five days last week.

Read More from: WSJ.com: Bankruptcy Beat

5 years 2 months ago
People are living longer lives than ever before in history.  Thanks to advancements in healthcare and focus on wellness, many are living long enough to watch great-grandchildren grow up.  Great news but this means that people need more funds than they ever anticipated in order to support them in retirement. Many are left pinching pennies. Read more here.
5 years 2 months ago
Created under the guise of a program to root out fraud and illegal activity, this initiative has been used by Obama administration bureaucrats to pressure banks to end relationships with businesses they consider objectionable or "high risk."

Read More from: BankThink

5 years 2 months ago
The hard work has been done – the plan has been negotiated and confirmed, the confirmation order has been entered, and holders of allowed claims (and maybe even interest holders) await their distribution under the plan. A plan, however, may require that creditors or equity holders take certain acts prior to participation in the plan distribution, or forfeit their right to participate. Practitioners, therefore, should take note of section 1143 of the Bankruptcy Code, which sets an outside time limit for surrender or presentment of a security or the taking of an act as a condition to participation in distribution under the chapter 11 plan. Today’s installment of our “Breaking the Code” series delves into this provision.  The Basics Section 1143 of the Bankruptcy Code provides as follows: If a plan requires presentment or surrender of a security or the performance of any other act as a condition to participation in distribution under the plan, such action shall be taken not later than five years after the date of the entry of the order of confirmation. Any entity that has not within such time presented or surrendered such entity’s security or taken any such other action that the plan requires may not participate in distribution under the plan.
5 years 2 months ago
Receiving Wide Coverage ... Buffett Pooh-Poohs SIFI Talk: Banking was one of many topics discussed at Berkshire Hathaway's annual meeting in Omaha, Neb., on Saturday. Warren Buffett said it would be a "terrible thing to weaken" Dodd-Frank, and the Federal Reserve and Treasury Department's wide-ranging powers are necessary in order to respond to another large crisis. Buffett also scoffed at the notion that Berkshire Hathaway's insurance operationsÂ--GEICO, National Indemnity, Gen ReÂ--should be deemed systemically important, as...

Read More from: BankThink

5 years 2 months ago
A person walks past the Everett Institute in 2014. Corinthian Colleges Inc. on Monday filed for chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del.
JOSE LUIS MAGANA/ASSOCIATED PRESS
Corinthian Colleges Inc . on Monday filed for chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del., closing the book on the embattled for-profit school operator whose business had been embroiled in controversy since last summer. 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.”)

Read More from: WSJ.com: Bankruptcy Beat

5 years 2 months ago
A person walks past the Everett Institute in 2014. Corinthian Colleges Inc. on Monday filed for chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del.
JOSE LUIS MAGANA/ASSOCIATED PRESS
Corinthian Colleges Inc . on Monday filed for chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del., closing the book on the embattled for-profit school operator whose business had been embroiled in controversy since last summer. 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.”)

Read More from: WSJ.com: Bankruptcy Beat

5 years 2 months ago