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My  best email of the day will be Professor Jay Westbrook's email saying he will join our mostly merry band of bloggers on a permanent basis. Westbrook has been guest blogging with us for a few weeks. Thanks to our great community of followers and your engagement with the issue we discuss, we have been able to persuade him to hang around. Westbrook is a legend in the field, and we are very proud to him as part of the Credit Slips team.

Read More from: Credit Slips

5 years 5 months ago
The Weil Bankruptcy Blog aims to publish a substantive piece on matters of interest in the bankruptcy, finance, and restructuring world every weekday, an ambitious target that is made possible only by the dedication of our partners, associates, and support staff to the Bankruptcy Blog, and their commitment to the restructuring community at large.  With the number of bankruptcy filings in 2014 having declined approximately 12% compared to 2013, some might think that our daily publication target is no mean feat. Despite the paucity of large bankruptcy filings, 2014 was not a year to forget and still left us with plenty of topics to write about. In this Annual Review, we’ve pulled together the major themes in the restructuring world in 2014, encapsulating them in one volume for your convenience. Our introductory 2014: Bankruptcy and Restructuring Annual Review piece over the page gives you a month-by-month snapshot of the major legal and financial themes in the restructuring world in 2014, to help you frame the restructuring events of 2014. In case you missed them, the highlights of last year included major developments in credit bidding in Fisker Automotive in January, as well as an important decision on cramdown interest rates in Momentive Performance Materials in August.
5 years 5 months ago
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? Over the course of seven months, the price of West Texas Intermediate crude oil dropped to $44 per barrel in January 2015 from a high of $107 per barrel during July 2014—a 59% decrease. Although a small rebound occurred, WTI prices have continued to hover below $50 per barrel, reaching $48.87 per barrel on March 27. A similar but less severe decrease has occurred in natural gas prices. These decreases will have significant impact on oil and gas companies and several related sectors in a series of waves that have already begun and will most likely continue for some time. A number of highly-levered producers have already been overwhelmed by the abrupt commodity price decreases and as a result have missed interest payments. Several have file for protection under chapter 11 of the bankruptcy code. As producers search for liquidity, we will likely see attractive midstream assets offered for sale by integrated oil companies, accompanied by an increase in sale and merger activity involving independent producers.

Read More from: WSJ.com: Bankruptcy Beat

5 years 5 months ago
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? Over the course of seven months, the price of West Texas Intermediate crude oil dropped to $44 per barrel in January 2015 from a high of $107 per barrel during July 2014—a 59% decrease. Although a small rebound occurred, WTI prices have continued to hover below $50 per barrel, reaching $48.87 per barrel on March 27. A similar but less severe decrease has occurred in natural gas prices. These decreases will have significant impact on oil and gas companies and several related sectors in a series of waves that have already begun and will most likely continue for some time. A number of highly-levered producers have already been overwhelmed by the abrupt commodity price decreases and as a result have missed interest payments. Several have file for protection under chapter 11 of the bankruptcy code. As producers search for liquidity, we will likely see attractive midstream assets offered for sale by integrated oil companies, accompanied by an increase in sale and merger activity involving independent producers.

Read More from: WSJ.com: Bankruptcy Beat

5 years 5 months ago
That is an amazing milestone. Thank you everyone for your interest in what we have to say here. If you want to follow us on Twitter or subscribe to our Facebook page, there are buttons on the right-side of the screen. These outlets are simply other channels we use to get our content to those who want to receive it.

Read More from: Credit Slips

5 years 5 months ago
There are many reasons why a married couple may decide that only one spouse needs to file bankruptcy. The bankruptcy law allows a married person to file an individual bankruptcy but there will be some impact on the non-filing spouse. If you are a non-filing spouse, here are some concerns that you should keep in mind:1. Your credit score may be negatively impacted. You are most likely to face this problem when you have joint debts with a bankruptcy filing spouse and your spouse does not pay a joint debt on time.For example, Chapter 13 allows a bankruptcy debtor to restructure payment obligations, which may include reducing the monthly installment, or extending the term of the loan. As a non-filing spouse you will likely be in violation of the contractual terms of your loan, which will appear as a late payment on your credit report.2 Your joint bank accounts may be at risk. The bankruptcy law does allow a Chapter 7 or Chapter 13 debtor to declare a set amount of cash as exempt (sheltered) property.

Read More from: The BK blog

5 years 5 months ago
Realizing you need to file Chapter 11 bankruptcy to get control of your company’s finances can be a complex, lengthy, and often nerve-racking process. The first step in filing Chapter 11 is to understand the process and prepare for it. What is the Purpose of Chapter 11? The main goal of filing for Chapter 11 is for a company to receive assistance in reorganizing their finances and to preserve the going concern value of an operating business. This allows for a decision to be made by the company’s creditors and equity holders (or, if necessary, the Bankruptcy Court) on how such going concern value will be shared, distributed, or reallocated. Is my Business Eligible? If there is a viable core business still functioning that can be preserved upon assistance or alleviation from creditor collection activity, a company can consider this route. Businesses with significant equity in assets that will be lost to repossession or foreclosure are also prime candidates for protection until this section. How Do I Get Started? First, hire an experienced Chapter 11 attorney or firm (Culhane Meadows has offices in Atlanta, Austin, Dallas, New York, and Washington D.C.). You will need to work in conjunction with the lawyer or firm to prepare your petition by completing a list of all of your company’s assets, debts, income, and expenses with a summary of your finances. When ready, the petition can be filed with the bankruptcy clerk’s office.

Read More from: Richard G. Grant, P.C.

5 years 5 months ago
Realizing you need to file Chapter 11 bankruptcy to get control of your company’s finances can be a complex, lengthy, and often nerve-racking process. The first step in filing Chapter 11 is to understand the process and prepare for it. What is the Purpose of Chapter 11? The main goal of filing for Chapter 11 is for a company to receive assistance in reorganizing their finances and to preserve the going concern value of an operating business. This allows for a decision to be made by the company’s creditors and equity holders (or, if necessary, the Bankruptcy Court) on how such going concern value will be shared, distributed, or reallocated. Is my Business Eligible? If there is a viable core business still functioning that can be preserved upon assistance or alleviation from creditor collection activity, a company can consider this route. Businesses with significant equity in assets that will be lost to repossession or foreclosure are also prime candidates for protection until this section. How Do I Get Started? First, hire an experienced Chapter 11 attorney or firm (Culhane Meadows has offices in Atlanta, Austin, Dallas, New York, and Washington D.C.). You will need to work in conjunction with the lawyer or firm to prepare your petition by completing a list of all of your company’s assets, debts, income, and expenses with a summary of your finances. When ready, the petition can be filed with the bankruptcy clerk’s office.

Read More from: Richard G. Grant, P.C.

5 years 5 months ago
At the onset of the current foreclosure crisis, banks bemoaned their inability to get homeowners in default to respond to their generous offers of loan modifications and other foreclosure alternatives. Homeowners, it seemed, were like ostriches with their heads in the sand. Outreach efforts were launched to bring the homeowners in from the cold. Foreclosure sales, banks told us, were the worst possible outcome, and everything should be done to avoid them. Fast forward a few years, and we no longer hear about those unresponsive homeowners. In fact, the mortgage servicing industry, starting around 2009, was rapidly overwhelmed with homeowners seeking loan modifications and other workouts. Soon homeowners were the ones complaining about getting no responses from servicers. Diligent homeowner attorneys uncovered the robosigning scandal, courts and regulators demanded that servicers clean up their act, and foreclosure cases languished while servicers gave homeowners applying for loan modifications and short sales the runaround. Today the banking industry complains of spending too much time talking to homeowners, claiming that long foreclosure delays resulting from homeowners massively coming in from the cold are just wasting everyone’s time and money.

Read More from: Credit Slips

5 years 5 months ago
Congress should take the interests of small and midsize mortgage lenders into account as it weighs regulatory reform for community banks. Exempting smaller lenders from random CFPB audits would be a good start.

Read More from: BankThink

5 years 5 months ago
An affiliate of India’s Aurobindo Pharma has hurled allegations of fraud at the former owner of a natural products company it bought out of a U.S. bankruptcy proceeding, Natrol Inc. 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.”) The remains of an Energy Department-backed biorefinery plant in Maine formerly owned by embattled private-equity chief Lynn Tilton will go on the auction block later this month, DBR reports via The Wall Street Journal. Canada is selling the last of its shares in General Motors, the Detroit Free Press reports. Schahin Petroleo & Gas SA wants a credit line so it can avoid bankruptcy, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

5 years 5 months ago
An affiliate of India’s Aurobindo Pharma has hurled allegations of fraud at the former owner of a natural products company it bought out of a U.S. bankruptcy proceeding, Natrol Inc. 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.”) The remains of an Energy Department-backed biorefinery plant in Maine formerly owned by embattled private-equity chief Lynn Tilton will go on the auction block later this month, DBR reports via The Wall Street Journal. Canada is selling the last of its shares in General Motors, the Detroit Free Press reports. Schahin Petroleo & Gas SA wants a credit line so it can avoid bankruptcy, Bloomberg reports.

Read More from: WSJ.com: Bankruptcy Beat

5 years 5 months ago
Receiving Wide Coverage ... Dudley Do-Rate: Rate hikes remain on the horizon for 2015 despite Friday's disappointing jobs report, according to New York Fed head William Dudley's Monday speech, as interpreted by the media. Dudley attributed sluggish economic results for the first quarter to "temporary factors," including a rough winter and the strong dollar's drag on exports. But he "expects inflation to firm and wages to pick up later this year," according to the Wall Street...

Read More from: BankThink

5 years 5 months ago
On April 6, 2015, Northwest Missouri Holdings, Inc. and three affiliates, filed voluntary chapter 11 petitions in Delaware.  The three affiliates are Oregon Farmers Mutual Long Distance Inc., The Oregon Farmers Mutual Telephone Company and South Hold Cablevision, Inc.  As of this post, only the petition is on file.  The case is docketed as case no. 15-10728 and has been assigned to The Honorable Brendan Linehan Shannon.
5 years 5 months ago
Accredited Investor Markets Radio recently sat down with Ted Neild, President and Chief Investment Officer of Gresham Partners, LLC, and that interview will be broadcast in the near future. In the meantime, we thought we would share some of what we learned from speaking with him. Read more here.
5 years 5 months ago
There has been much confusion in the media about Reg A+ of the JOBS Act, as some reporters have referred to it as “an opportunity for non-accredited investors to buy equity in startups,” whereas Title IV was originally structured mainly for growth- and later-stage companies that are not quite ready to file IPOs. Read more here.
5 years 5 months ago
With several significant recent bankruptcy filings such as RadioShack and Saladworks, tenant bankruptcies become a greater risk for commercial landlords. Yet some landlords are not familiar with the rights provided to them under the Bankruptcy Code, nor are they aware of the protections provided to a tenant in bankruptcy. For example, certain lease provisions are unenforceable once a tenant files for bankruptcy. Should a landlord attempt to exercise its rights under the lease without first seeking approval from the bankruptcy court, the landlord may be subject to strong sanctions. The purpose of this article is to provide landlords with the questions and answers they should consider when a commercial tenant files for bankruptcy. 1. What effect does a tenant’s bankruptcy have on the lease? Once a tenant files for bankruptcy, it has three options regarding the lease: it can assume the lease and continue performing all obligations, or assume and assign the lease to a third party, or reject the lease and surrender the premises and terminate performance. The Bankruptcy Code gives the debtor-tenant 120 days to decide whether to assume or reject the lease. During this period, the tenant can request one 90 day extension to decide what to do with the lease.
5 years 5 months ago
A.   Where We Left Off Part II of this series focused on the first element of section 1112(b)’s dismissal test: whether “cause” exists for the court to dismiss or convert the case. Once the judge determines that cause exists, the court must dismiss or convert the case. As a result, a party seeking the approval of a proposed structured dismissal must prove that the structured dismissal is better for creditors than converting the case to a Chapter 7 liquidation. This article will address how to satisfy that “best interests of the creditors” test, and will examine an alternative means of approving a structured dismissal through section 305(a) of the Bankruptcy Code. B.   How it Works – Best Interest of the Creditors Test While courts must consider many case-specific issues when deciding whether a structured dismissal is better for creditors than converting the case to a Chapter 7 liquidation, they tend to consistently focus on a few key factors. Those factors include: (i) costs of conversion compared to dismissal; (ii) delays associated with each route; (iii) the ability of the debtor to manage its own dissolution; and importantly, (iv) what “bells and whistles” the debtor proposed in its structured dismissal.

Read More from: Insolvency Insights

5 years 5 months ago
This photo taken on Oct. 17, 2012, shows the exterior of the former Revel Casino Hotel in Atlantic City N.J. ACR Energy Partners had told Revel’s owners it would cut off service to the building at 5 p.m. Thursday, Feb. 5, 2015, over unpaid bills. But the company and the casino agreed Thursday morning to keep the power and water flowing until a hearing Feb. 11. (AP Photo/Wayne Parry)
Wayne Parry/Associated Press
The developer recently approved to buy Atlantic City, N.J.’s Revel Casino Hotel out of bankruptcy has released more details on his $500 million plan to revitalize the seaside town, which has faced precipitous declines in tourism and gambling revenue since 2006. In a statement released Friday, Florida-based developer Glenn Straub said his eight-part “Phoenix Project” aims to transform Atlantic City with a host of amenities targeting affluent tourists, sports enthusiasts, families and even retirees.

Read More from: WSJ.com: Bankruptcy Beat

5 years 5 months ago
This photo taken on Oct. 17, 2012, shows the exterior of the former Revel Casino Hotel in Atlantic City N.J. ACR Energy Partners had told Revel’s owners it would cut off service to the building at 5 p.m. Thursday, Feb. 5, 2015, over unpaid bills. But the company and the casino agreed Thursday morning to keep the power and water flowing until a hearing Feb. 11. (AP Photo/Wayne Parry)
Wayne Parry/Associated Press
The developer recently approved to buy Atlantic City, N.J.’s Revel Casino Hotel out of bankruptcy has released more details on his $500 million plan to revitalize the seaside town, which has faced precipitous declines in tourism and gambling revenue since 2006. In a statement released Friday, Florida-based developer Glenn Straub said his eight-part “Phoenix Project” aims to transform Atlantic City with a host of amenities targeting affluent tourists, sports enthusiasts, families and even retirees.

Read More from: WSJ.com: Bankruptcy Beat

5 years 5 months ago