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Three major credit agencies are overhauling the way they resolve disputes and report unpaid medical debt. ThatÂ's a good start, but the best way to wipe out credit-reporting errors is to encourage Americans to review them regularly.

Read More from: BankThink

5 years 4 months ago
Keith Bedford for The Wall Street Journal
The RadioShack auction moves into a second day Tuesday in New York, as the company and its creditors debate the value of the bid from big lender Standard General LP. 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.”) Online streetwear seller Karmaloop filed for chapter 11 bankruptcy protection Monday, with a pile of unpaid bills that tops $100 million and a plan to sell its business to its top lender. Read the DBR article here. According to WSJ, Atlantic City, N.J., emergency managers want more layoffs for the city but haven’t recommended bankruptcy.

Read More from: WSJ.com: Bankruptcy Beat

5 years 4 months ago
Keith Bedford for The Wall Street Journal
The RadioShack auction moves into a second day Tuesday in New York, as the company and its creditors debate the value of the bid from big lender Standard General LP. 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.”) Online streetwear seller Karmaloop filed for chapter 11 bankruptcy protection Monday, with a pile of unpaid bills that tops $100 million and a plan to sell its business to its top lender. Read the DBR article here. According to WSJ, Atlantic City, N.J., emergency managers want more layoffs for the city but haven’t recommended bankruptcy.

Read More from: WSJ.com: Bankruptcy Beat

5 years 4 months ago
Here at Shenwick & Associates, many of our clients are looking to protect their assets (as we've covered extensively in our recent e-mails). This month, we're going to look at the intersection of business law and debtor and creditor law in discussing the use of limited liability companies (LLCs) as a tool for asset protection.Unfortunately, New York law provides LLCs with less protection from a member's personal creditors than many other states. In most states, an LLC's money or property can't be taken by creditors to pay off the personal debts or liabilities of a member of the LLC. Instead, creditors are limited to obtaining a charging order against the LLC.A charging order is the vehicle that gives a creditor a lien against the debtor/member's LLC economic interest in the LLC, which lasts until the judgment is satisfied. This lien is only against whatever distributions that the LLC makes to the debtor/member, if any and doesn't give the creditor any of the other rights that an LLC member has, i.e. voting rights. New York case law provides that a charging order may not be a creditor's sole remedy against a LLC. In 3 West 16th Street, LLC v. Ancona, the plaintiff/creditor claimed that that codefendant Ancona acted with fraudulent intent when he transferred real property to the codefendant LLCs.

Read More from: Shenwick & Associates

5 years 4 months ago
Receiving Wide Coverage ... Living Will Letdowns: When it comes to living wills, banks face a tough crowd. So it may not come as a total shock that regulators rejected the living wills of foreign banks BNP Paribas, HSBC and Royal Bank of Scotland Group, instructing them to address deficiencies in their wind-down plans for U.S. units by the end of the year or face possible sanctions. Eleven U.S. banks received similar orders from the Federal...

Read More from: BankThink

5 years 4 months ago
Associated Press
A former Weil, Gotshal & Manges LLP litigator has emerged as a potential player in the drama surrounding the bankruptcy of Caesars Entertainment Corp.’s largest unit. A U.S. trustee has asked a judge to approve the appointment of former Weil partner Richard Davis as examiner in Caesars Entertainment Operating Co.’s bankruptcy, according to a court filing Monday. Mr. Davis now has a private practice, having left Weil in 2012 following a 32-year career at the firm, including some years as its general counsel. Mr. Davis, 68, also served as an assistant secretary of the U.S. Treasury from 1977 to 1981. In the early- to mid-1970s, he was on the Watergate special-prosecution force. “He’s not the kind of litigator who bangs on the table and screams at people,” said John Jerome, of counsel at law firm Sullivan & Cromwell LLP, who has worked with Mr. Davis in the past but isn’t involved in the Caesars case. “I don’t think I’ve ever seen him get rattled.”

Read More from: WSJ.com: Bankruptcy Beat

5 years 4 months ago
Associated Press
A former Weil, Gotshal & Manges LLP litigator has emerged as a potential player in the drama surrounding the bankruptcy of Caesars Entertainment Corp.’s largest unit. A U.S. trustee has asked a judge to approve the appointment of former Weil partner Richard Davis as examiner in Caesars Entertainment Operating Co.’s bankruptcy, according to a court filing Monday. Mr. Davis now has a private practice, having left Weil in 2012 following a 32-year career at the firm, including some years as its general counsel. Mr. Davis, 68, also served as an assistant secretary of the U.S. Treasury from 1977 to 1981. In the early- to mid-1970s, he was on the Watergate special-prosecution force. “He’s not the kind of litigator who bangs on the table and screams at people,” said John Jerome, of counsel at law firm Sullivan & Cromwell LLP, who has worked with Mr. Davis in the past but isn’t involved in the Caesars case. “I don’t think I’ve ever seen him get rattled.”

Read More from: WSJ.com: Bankruptcy Beat

5 years 4 months ago
On March 23, 2015, Karmaloop, Inc., and one of its affiliates, KarmaloopTV, Inc., filed voluntary petitions under chapter 11 of the Bankruptcy Code in Delaware.  Karmaloop is based in Boston Massachusetts.  The cases are docketed as case 15-10635, and have been assigned to The Honorable Kevin Gross. The Declaration of Brian L. Davies, Jr. was filed in support of the petitions and various first-day motions.  Mr. Davies is the Managing Director at CRS Capstone Partners, LLC, and is currently engaged as the Chief Restructuring Officer of the debtors.  Mr. Davies had previously served as the interim CFO for Karmaloop. According to Mr. Davies’ declaration, Karmaloop was founded in 1999 and “specializes in the sale of global streetwear fashion and culture.”  According to Mr. Davies, the debtors’ businesses “have fallen victim to the shift in retail purchasing that is occurring, especially among retailers in the young adult age bracket, as such consumers have moved away from purchasing traditional brands.”  Mr. Davies also cites to lack of capital, inability to fully adapt to business strategies that result in better margin opportunities, and over-ambitious expansion efforts, as reasons for the debtors’ financial crisis.
5 years 4 months ago
In the Allied Nevada Gold Corp. bankruptcy proceeding, a formation meeting has been scheduled for Thursday, March 19, 2015 at 10:00 a.m. (ET) at the J. Caleb Boggs Federal Building, 844 King St., Room 2112, Wilmington, DE 1980.  Click Here for a copy of the Notice of Formation Meeting for Official Committee of Unsecured Creditors issued by the Office of the United States Trustee. In addition, The U.S. Trustee has requested that a Section 341 Meeting of Creditors be scheduled for Wednesday, April 15, 2015 at 2:00 p.m. (ET) at the J. Caleb Boggs Federal Court House, 844 N. King Street, 2nd Fl., Room 2112, Wilmington, DE 19801. One way in which creditors can assert their interests is to attend the Formation Meeting and become a part of the creditors’ committee.  The creditors’ committee is one of the most active participants in a corporate bankruptcy, and has access to a significant amount of information not available to normal creditors.  There are, naturally, trade-offs to gaining access to this information (limitations on a company’s ability to trade in securities of the debtor), but you will be far better informed of what occurs in the bankruptcy proceeding.
5 years 4 months ago
There are two things of which we can be certain: we are all going to grow older and, no matter how much money you have in the bank, you could always use some more. When you combine those two facts, it could be a recipe for disaster. Consider this: Pensions are decreasing. Tax rates are […]
5 years 4 months ago
On January 27, 2015, the Consumer Financial Protection Bureau (“CFPB”) issued a compliance bulletin reminding supervised financial institutions (including large depository institutions, credit unions and their affiliates, certain nonbanks, and service providers) of existing regulatory requirements regarding confidential supervisory information.  In this article we (i) explain the definition of confidential supervisory information; (ii) discuss exceptions to the non-disclosure rule; and (iii) offer tips for ensuring compliance.
5 years 4 months ago
An employee's careless Tweet or Facebook status update can pose big risks to financial firms, but social media is still a necessary tool for engaging with younger customers.

Read More from: BankThink

5 years 4 months ago
Talia Goldfarb appeared on Shark Tank on October 31, 2014 and walked away with a partner by the name of Daymond John. According to the former social worker, it’s the perfect partnership. Goldfarb had been in business for 10 years and had taken MySelf Belts as far as she could on her own experience. That’s why she felt she needed a partner. Before going on the show, Goldfarb thought Kevin O’Leary might be one of the sharks interested in working with her. Instead, he was the hardest on her. What happened next? Read more here.
5 years 4 months ago
Barry v. Santander Bank, N.A. (In re Liberty State Benefits of Delaware Inc.), Civ. No. 14-677-LPS (D. Del. Mar. 12, 2015) On March 12, 2015, Chief Judge Stark of Delaware’s District Court denied the request of defendant Santander Bank, N.A. (the “Defendant”) to withdraw the reference, rejecting Defendant’s arguments for mandatory and permissive withdrawal.  Richard Barry, the chapter 11 trustee of the debtor (the “Plaintiff”), alleged in the complaint almost entirely non-bankruptcy causes of action, including violations of the federal Racketeering Influenced and Corrupt Organization Act (“RICO”)—the sole basis for the Defendant’s mandatory withdrawal request.  Ultimately, the Court found, under Delaware precedent, that consideration of the federal RICO claim was not “substantial and material” to resolving the proceeding and thus, the claim alone did not warrant mandatory withdrawal.  Likewise, the Court held that the Defendant was unable to carry its burden for permissive withdrawal “for cause shown.” Read More › Tags: Withdrawal Of The Reference

Read More from: Delaware Bankruptcy Insider

5 years 4 months ago
Section 365(c)(1) of the Bankruptcy Code limits a debtor’s ability to assume or assign a contract where “applicable law” excuses a non-debtor counterparty from accepting performance from a third party.  Circuits currently are split on whether this section prohibits a debtor from assuming an intellectual property license without the consent of the licensor.  Courts on one side of the issue apply the “actual test,” which permits a debtor to assume a license as long as the debtor does not intend to assign it.  On the other side, courts apply the “hypothetical test,” which prohibits a debtor from assuming a license regardless of the debtor’s intent to assign it.  In a decision that discusses in detail what type of “applicable law” is relevant in the 365(c)(1) analysis, the United States Bankruptcy Court for the District of Delaware issued a reminder in In re Trump Entertainment Resorts, Inc. that the hypothetical test is alive and well in the Third Circuit.  Trademark License Agreement
5 years 4 months ago
Save Your Home & Pay Your Mortgage.. Through Chapter 13 Bankruptcy It is understandable that you will have tremendous fear when you fall behind on your mortgage and you start to receive threatening letters. You may not even know that bankruptcy is an option to save your home and stop a foreclosure case. You probably+ Read More The post Bankruptcy Is Just One Option To Save Your Home appeared first on David M. Siegel.
5 years 4 months ago
Banks will only be able to compete with nimble digital startups if they invest in a diverse portfolio of fintech initiatives and avoid foisting traditional, buttoned-down cultures onto fledgling partners.

Read More from: BankThink

5 years 4 months ago
Sale signs are displayed as customers browse inside a RadioShack Corp. store that is closing in New York.
Bloomberg News
RadioShack Corp .’s fate hangs in the balance Monday when a bankruptcy auction kicks off, pitting companies that want to liquidate the electronic retailer’s remaining assets against a hedge fund that has pledged to keep about half the chain’s stores open.. 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 group of investment vehicles owned by a Bahraini bank are seeking U.S. bankruptcy protection to shield more than $200 million from Saudi Arabia’s Ahmad Hamad Algosaibi & Bros., DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

5 years 4 months ago
Sale signs are displayed as customers browse inside a RadioShack Corp. store that is closing in New York.
Bloomberg News
RadioShack Corp .’s fate hangs in the balance Monday when a bankruptcy auction kicks off, pitting companies that want to liquidate the electronic retailer’s remaining assets against a hedge fund that has pledged to keep about half the chain’s stores open.. 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 group of investment vehicles owned by a Bahraini bank are seeking U.S. bankruptcy protection to shield more than $200 million from Saudi Arabia’s Ahmad Hamad Algosaibi & Bros., DBR reports in WSJ.

Read More from: WSJ.com: Bankruptcy Beat

5 years 4 months ago
Wall Street Journal Zions Bancorp is a comparatively small and simple fish in the "too big to fail" pond, but it's among the banks that's struggled most with the Federal Reserve's stress tests. The paper implies that Zions' predicament may be indicative of the problems with the $50-billion asset threshold used to determine which institutions are systemically important. The Salt Lake City lender focuses on "meat and potatoes banking," like lending and taking deposits, whereas most...

Read More from: BankThink

5 years 4 months ago