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How much stress can we expect to see for oil and gas producers and related companies as a result of the current low prices? And what special issues does this industry face when it’s time to restructure or file for bankruptcy? The drop in the price of crude oil by more than half since June 2014 appears to be an outgrowth of the stagnant global demand for oil in conjunction with the market’s oversupply, the surge of non-OPEC oil production in recent years and OPEC’s continued output in the face of drastically plummeting oil prices compounded by increasingly available alternative energy sources. Although consumers enjoy the immediate benefits of reduced energy prices, lower prices can be devastating to producers. All of this suggests that the current financial stress on companies engaged in the exploration, development and production of oil and gas won’t be alleviated in the near future. From a bankruptcy standpoint, oil and gas company bankruptcies pose a variety of unique challenges.

Read More from: WSJ.com: Bankruptcy Beat

5 years 4 months ago
Burtch v. Opus, LLC (In re Opus East, LLC), Adv. Proc. No. 11-52423 (MFW), 2015 WL 1404959 (Bankr. D. Del. March 23, 2015)

Read More from: Delaware Bankruptcy Insider

5 years 4 months ago
Critics say the SEC uses too liberal a hand in granting waivers that allow firms that violate securities laws to be exempted from certain penalties. But the agency needs these waivers to adjust rules designed to be overly broad.

Read More from: BankThink

5 years 4 months ago
Liquidating retailer Delia’s Inc. received bankruptcy-court approval to sell its distribution facility in Pennsylvania for $3.95 million. Read 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.”) Victor H. Gotbaum, who played a major role in saving New York City from bankruptcy in the 1970s, died Sunday at 93 years old, the New York Times reports. The Times also reports on RadioShack Corp.’s revamping.

Read More from: WSJ.com: Bankruptcy Beat

5 years 4 months ago
A Towers Watson survey found that only about 27% of Fortune 500 companies provided some type of pay-for-performance discussion in 2014. Only 4% of companies added new disclosure, while 5% eliminated it after including it in the prior year.
5 years 4 months ago
Wall Street Journal Big-bank CEOs still make plenty of dough Â-- but the job's not as lucrative as it used to be. Pay for the top bananas at the five largest Wall Street firms "remained well below pre-crisis levels" at a collective $92.5 million last year, the paper reports, down 47% from pooled earnings of $173.6 million in 2006. Meanwhile, the average bank employee's paycheck reached a new high of $148,740 last year. "The dichotomy shows...

Read More from: BankThink

5 years 4 months ago
This is the next post in Plan Proponent’s series on the confirmation-related recommendations in the ABI Commission Report (and, in particular, its Exiting the Case piece). We wrapped-up “Redemption Option Value” in our last post and then had an unplanned 2 week hiatus. In this post, we’ll cover the Commission’s quick recommendation on the absolute priority rule and “new value.” In prior posts, we’ve covered the absolute priority rule (“APR“) in two contexts: individual cases and corporate cases. In corporate cases, the APR operates such that, equity security holders cannot retain or receive new equity in the reorganized debtor unless the plan provides for the payment in full of all other creditors, at least not without consent.

Read More from: Plan Proponent

5 years 4 months ago
On April 2, 2015, Littleford Day, Inc., located in Florence, Kentucky, filed a chapter 11 bankruptcy petition in Delaware.  “[A] recognized leader for the supply of Industrial Mixers, Dryers and Reactors”, according to its website, www.littleford.com, Littleford has been in business since 1882.  The case is docketed as case no. 15-10722 and has been assigned to The Honorable Kevin Gross. According to the Declaration of J. Garvin Warden, filed in support of the petition, Littleford has reduced its workforce over the past year from a high of 65 to 27 on the petition date.  Mr. Warden notes significant operational costs and a dramatic reduction in orders since the end of 2014: “Despite good faith efforts to reduce costs and enhance revenue, the Company has simply been unable to maintain adequate cash flow to satisfy its mounting obligations.”
5 years 4 months ago
Preqin describes itself as the “alternative assets industry’s leading source of data and intelligence” and we at AIMkts are voracious readers of its thought leadership. While most of its content is geared more for the advisor, Preqin occasionally publishes pieces we think worth sharing. Read more here.
5 years 4 months ago
According to Bloomberg News: Fannie Mae will begin bulk auctions of mortgages, including some sales targeted for non-profit groups and small investors, as Fannie Mae moves to reduce the number of non-performing loans on its books. “These transactions are intended to reduce the number of seriously delinquent loans that Fannie Mae owns, to help stabilize neighborhoods and to offer borrowers access to additional foreclosure prevention options,” Fannie Mae Senior Vice President Joy Cianci said in a statement Thursday. “Our goal is to market these loans to a diverse range of buyers.”
5 years 4 months ago
Cambridge International Partners, Inc. recently released an interesting white paper which analyzed money manager M&A activity in 2014. While the dollar amount of transactions tripled due to two very large transactions, the number of transactions was relatively flat. Read more here.
5 years 4 months ago
It may not be a well-know fact, but the truth is a lot of financially-responsible people are turned down for loans because they have NO history of recent borrowing. None. This may be because the person saves up and pays for purchases without financing, or because they have not bothered to start building a new credit history by borrowing (and showing on-time payments) after a major financial event such as a bankruptcy or foreclosure. Many of these individuals are credit-worthy but the current credit reporting and scoring system is not set up to evaluate this. To get at this problem, Fair Issac Corp, also known by the acronym "FICO," announced this week it is launching a pilot program to provide credit scores using alternative data including payment history on utility bills, cable bills and cellphone bills as well as other information in the public record such as the number of addresses the person has had in the recent past (an indicator of stability). Right now some 53 million Americans don't have FICO scores. Under the new system, it is estimated some 15 million will now be scorable for credit application purposes.
5 years 4 months ago
On Thursday in Manhattan, Doral Financial Corp. will seek court permission to sell its insurance arm to Anglo-Puerto Rican Insurance Corp. for $10.75 million, subject to higher bids at an auction. Before the sale can proceed, Judge Shelley Chapman must first sign off on rules governing the auction, which would be held May 12 if competing bids are made. Doral said that without the sale, its insurance unit would likely experience a “rapid and substantial decline” in value. Doral Financial, whose primary asset was Puerto Rico’s Doral Bank, which failed in February, didn’t place the insurance unit into chapter 11 when it filed for bankruptcy. Already in the process of liquidating some of its assets, Doral Financial filed for chapter 11 in March in New York. The bank’s collapse and the subsequent bankruptcy of the parent were just two of the latest signs of financial difficulties facing Puerto Rico, which has been mired for years in an economic slump. On Friday, surgery-monitoring company ProNerve LLC will ask Judge Kevin J. Carey of the U.S. Bankruptcy Court in Wilmington, Del., to sign off on the sale of its business.

Read More from: WSJ.com: Bankruptcy Beat

5 years 4 months ago
On Thursday in Manhattan, Doral Financial Corp. will seek court permission to sell its insurance arm to Anglo-Puerto Rican Insurance Corp. for $10.75 million, subject to higher bids at an auction. Before the sale can proceed, Judge Shelley Chapman must first sign off on rules governing the auction, which would be held May 12 if competing bids are made. Doral said that without the sale, its insurance unit would likely experience a “rapid and substantial decline” in value. Doral Financial, whose primary asset was Puerto Rico’s Doral Bank, which failed in February, didn’t place the insurance unit into chapter 11 when it filed for bankruptcy. Already in the process of liquidating some of its assets, Doral Financial filed for chapter 11 in March in New York. The bank’s collapse and the subsequent bankruptcy of the parent were just two of the latest signs of financial difficulties facing Puerto Rico, which has been mired for years in an economic slump. On Friday, surgery-monitoring company ProNerve LLC will ask Judge Kevin J. Carey of the U.S. Bankruptcy Court in Wilmington, Del., to sign off on the sale of its business.

Read More from: WSJ.com: Bankruptcy Beat

5 years 4 months ago
On Thursday in Manhattan, Doral Financial Corp. will seek court permission to sell its insurance arm to Anglo-Puerto Rican Insurance Corp. for $10.75 million, subject to higher bids at an auction. Before the sale can proceed, Judge Shelley Chapman must first sign off on rules governing the auction, which would be held May 12 if competing bids are made. Doral said that without the sale, its insurance unit would likely experience a “rapid and substantial decline” in value. Doral Financial, whose primary asset was Puerto Rico’s Doral Bank, which failed in February, didn’t place the insurance unit into chapter 11 when it filed for bankruptcy. Already in the process of liquidating some of its assets, Doral Financial filed for chapter 11 in March in New York. The bank’s collapse and the subsequent bankruptcy of the parent were just two of the latest signs of financial difficulties facing Puerto Rico, which has been mired for years in an economic slump. On Friday, surgery-monitoring company ProNerve LLC will ask Judge Kevin J. Carey of the U.S. Bankruptcy Court in Wilmington, Del., to sign off on the sale of its business.

Read More from: WSJ.com: Bankruptcy Beat

5 years 4 months ago
Reuters
Richard Fuld, who was chief executive of Lehman Brothers Holdings Inc., has been largely out of the public eye since the firm collapsed in 2008. But that’s set to change next month. The organizers of the 2015 Marcum MicroCap Conference said that Mr. Fuld will address conference attendees in his “first major public address since leaving Lehman Brothers in 2008,” the conference organizers said in a press release. Mr. Fuld will discuss “the strategy employed by Lehman Brothers to become one of the world’s leading investment banks, aspects of the financial crisis, the current capital market environment, and the keys to success for today’s growth companies choosing to access the capital markets now,” the release said. Still he hasn’t been entirely absent from deal making. In October, the Journal reported that Mr. Fuld advised a little-known company called OpenMatch Holdings LLC in its acquisition of the 130-year-old National Stock Exchange. Mr. Fuld’s consulting firm, Matrix Advisors LLC, which he founded in April 2009, worked on that deal. Other clients of Matrix have included Ecologic Transportation Inc. and GlyEco Inc., according to regulatory filings.

Read More from: WSJ.com: Bankruptcy Beat

5 years 4 months ago
Reuters
Richard Fuld, who was chief executive of Lehman Brothers Holdings Inc., has been largely out of the public eye since the firm collapsed in 2008. But that’s set to change next month. The organizers of the 2015 Marcum MicroCap Conference said that Mr. Fuld will address conference attendees in his “first major public address since leaving Lehman Brothers in 2008,” the conference organizers said in a press release. Mr. Fuld will discuss “the strategy employed by Lehman Brothers to become one of the world’s leading investment banks, aspects of the financial crisis, the current capital market environment, and the keys to success for today’s growth companies choosing to access the capital markets now,” the release said. Still he hasn’t been entirely absent from deal making. In October, the Journal reported that Mr. Fuld advised a little-known company called OpenMatch Holdings LLC in its acquisition of the 130-year-old National Stock Exchange. Mr. Fuld’s consulting firm, Matrix Advisors LLC, which he founded in April 2009, worked on that deal. Other clients of Matrix have included Ecologic Transportation Inc. and GlyEco Inc., according to regulatory filings.

Read More from: WSJ.com: Bankruptcy Beat

5 years 4 months ago
Reuters
Richard Fuld, who was chief executive of Lehman Brothers Holdings Inc., has been largely out of the public eye since the firm collapsed in 2008. But that’s set to change next month. The organizers of the 2015 Marcum MicroCap Conference said that Mr. Fuld will address conference attendees in his “first major public address since leaving Lehman Brothers in 2008,” the conference organizers said in a press release. Mr. Fuld will discuss “the strategy employed by Lehman Brothers to become one of the world’s leading investment banks, aspects of the financial crisis, the current capital market environment, and the keys to success for today’s growth companies choosing to access the capital markets now,” the release said. Still he hasn’t been entirely absent from deal making. In October, the Journal reported that Mr. Fuld advised a little-known company called OpenMatch Holdings LLC in its acquisition of the 130-year-old National Stock Exchange. Mr. Fuld’s consulting firm, Matrix Advisors LLC, which he founded in April 2009, worked on that deal. Other clients of Matrix have included Ecologic Transportation Inc. and GlyEco Inc., according to regulatory filings.

Read More from: WSJ.com: Bankruptcy Beat

5 years 4 months ago
Despite the tremendous growth and development of oil and gas resources in recent years, the industry is expected to be a boon for bankruptcy lawyers. This article explores how the current low price environment hurts developers and their lenders, whose past investment premises included a sustained high price environment and provides some insight into what the issues will be in bankruptcy. Click here to read the full article as published by The Metropolitan Corporate Counsel.   Alan H. Martin, Practice Group Leader 714.424.2831 (office) [email protected] Edward H. Tillinghast, III, Practice Group Leader 212.634.3050 (office) [email protected] Todd L. Padnos, Editor 415.774.2938 (office) [email protected]
5 years 4 months ago
Today, in the latest installment of our series reviewing the Final Report and Recommendations of the American Bankruptcy Institute Commission to Study the Reform of Chapter 11, we explore the Commission’s recommendations on executory contracts and leases – discussed in section V.A.  The Commissioners were of the consensus that section 365 of the Bankruptcy Code, which “generally allows a debtor in possession to assume, assign, or reject executory contracts and unexpired leases in [a] chapter 11 case,” is working relatively well, and, thus, their recommendation with regard to unexpired leases and executory contracts can be summed up (for the most part) as: maintain the status quo.  Indeed, even in the one instance where the Commissioners recommended a change to section 365 of the Bankruptcy Code, it was to codify the status quo definition of executory contracts – the “Countryman” definition.    The introduction to the Final Report states:
5 years 4 months ago