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Debtor:  Taylor-Wharton International LLC Case No.: 15-12075 Debtor’s Counsel: Reed Smith LLP Assets: $100,000,001 to $500 million Liabilities: $100,000,001 to $500 million The petition is attached. Contact Norman L. Pernick or Nicholas J. Brannick for more information.
2 years 11 months ago
Relationship and people skills certainly remain important, but today's wealth management leaders require far more than those largely sales-oriented abilities.

Read More from: BankThink

2 years 11 months ago
Duck Commander Family Foods and Chinook USA
A Kentucky company that brews ice tea inspired by Uncle Si from the hit A&E reality TV show “Duck Dynasty’” faces an Oct. 19 deadline to tell a bankruptcy judge whether it wants to keep its licensing deal with the bearded Louisiana family. In a court order signed Tuesday, Judge Alan Stout gave officials at the beverage maker, Chinook USA LLC, less than three weeks to state whether they want to end their licensing deal with Duck Commander Inc.—the Robertson clan’s duck-call business in West Monroe, La. Under the deal, Chinook USA LLC has the power to make and distribute a beverage named for Uncle Si, who drinks from a bottomless cup of ice tea on the show. In return, it promised to pay endorsement fees and royalties to the family’s business. But the deal quickly sprung a dispute. Chinook officials filed a lawsuit, accusing the show’s stars of breaking promises to promote Uncle Si’s Iced Tea in media interviews and special appearances, according to court papers. As a result, sales haven’t been great for the beverage, which was unveiled at a Nascar race near Dallas. Duck Commander has denied wrongdoing and said Chinook is behind on payments.

Read More from: WSJ.com: Bankruptcy Beat

2 years 11 months ago
Series: Business Law Dumbed Down 2015 This webinar will review basic employer documents that business owners may or may not want to have in place. What are the limits of a non-compete and do NDA’s really stand up in court? How can you get these contracts enforced? Take this webinar to find out. Read more here.
2 years 11 months ago
Series: Valuation 2015 Valuation plays an outsized role in bankruptcy cases. At the beginning of a case, it can be outcome determinative in whether a debtor is able to use cash collateral or borrow new money. Likewise, it is often the lynchpin on which a motion for relief from the automatic stay is granted or denied. And, it is a central issue in fraudulent transfer and preference cases, which will be the focus of this webinar. Read more here.
2 years 11 months ago
Series: Alternative Investment Basics Series 2015 Investing in a company pre-IPO carries several risks that are not present in publicly traded stock. What else needs to be explored? Take this webinar to discover the risks and benefits of investing in … Continue reading →
2 years 11 months ago
In a Chapter 13 personal reorganization, you have an ongoing plan payment which usually is made whenever you receive a paycheck. This payment is determined by a number of factors, the primary one being your disposable income. The payment can also be determined by the amount of debt you owe and the type of debt you owe. During the course of your plan, your payments can change. However, if you hire an experienced attorney and properly disclose your income, assets, and amount owed to creditors, it will be a small change, if any. Unsure of Debt to Creditors One instance in which your payment may change is upon confirmation. At the beginning of your case, a Proposed Chapter 13 Plan is filed. If you properly disclosed the required information to your attorney, the Court may confirm your plan as filed. However, if you were not sure how much was owed to creditors being paid through your plan, the payment may increase at this time. For example: if you believed that you only owed $15,000 for your vehicle, but in reality owed $20,000, your plan payment will probably increase upon confirmation once this amount is corrected. Change in Income

Read More from: Bonds & Botes, P.C.

2 years 11 months ago
Not all angel capital deals require issuers to produce private placement memorandums (PPMs). Often a much simpler term sheet is all that the law requires. Even if a PPM is legally optional, however, it is often requested or demanded by sophisticated investors beyond family and friends; and in any case a PPM is a reassuring sign of professionalism, a clue that the issuer has got its act consummately together—not to mention a measure of protection from shareholder disputes and lawsuits. Read more here.
2 years 11 months ago
Robo-advisers have myriad conflicts of interest and fall short of the standard of care under fiduciary investment law. The Labor Department's endorsement of these algorithmic investment guides seems curious and misplaced.

Read More from: BankThink

2 years 11 months ago
Some of the best advice on how to deal with a looming bankruptcy was written around 2,500 years ago.  Yes, all the way back in 423 B.C., the Greek playwright Aristophanes offered his thoughts for posterity in his comic play The Clouds, which tells the story of Strepsiades, a man unable to even sleep because of the huge debts his son has incurred, and his various attempts to learn the art of “Unjust” argument from Socrates and the sophists, so that he can use the skill to finagle his way out of responsibility to his creditors. Read more here.
2 years 11 months ago
Receiving Wide Coverage ... Pandit's Adventures in Fintech: Vikram Pandit has taken a stake in money transfer startup TransferWise. The ousted Citigroup executive has made a number of ventures in the fintech space since he left Citi in 2012, the Wall Street Journal says, including in marketplace lending startup Orchard Platform and student lending platform CommonBond. The exact value of his investment was not disclosed. TransferWise allows users to send and receive money at lower costs...

Read More from: BankThink

2 years 11 months ago
Upcoming Committee Formation Meeting: October 15, 2015 at 10:00 a.m. Case Name: City Sports, Inc., et al. Case Number: 15-12054 (KG) Location: The DoubleTree Hotel, 700 King St.,Wilmington, DE 19801 The petition and list of top 30 creditors and first day declaration, along with the docket, are available through Rust/Omni. Contact Norman L. Pernick or Nicholas J. Brannick for more information.
2 years 11 months ago
American Apparel Inc.’s turnaround plan includes keeping manufacturing operations inside the U.S., Daily Bankruptcy Review reports via The Wall Street Journal.
SPENCER PLATT/GETTY IMAGES
(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.”) As DBR reports via WSJ, Patriot Coal Corp. and West Virginia struck a deal that will provide $50 million for environmental cleanup costs. Also, Patriot’s auction was delayed until Wednesday. Quicksilver Resources Inc. is set for a December auction, DBR reports via WSJ.

Read More from: WSJ.com: Bankruptcy Beat

2 years 11 months ago
Peet v. Checkett (In re Peet), 529 B.R. 718 (8th Cir. BAP 2015) – A chapter 7 trustee proposed to sell real and personal property that was owned by the chapter 7 debtors as joint tenants with parents of one of the debtors … Continue reading →
2 years 11 months ago
Section 363 of the Bankruptcy Code provides debtors an efficient and flexible mechanism to dispose of substantially all estate assets outside of the confines of the Bankruptcy Code’s provisions concerning plan confirmation.  The Third Circuit’s recent decision in In re ICL Holding Co., Inc. may provide debtors additional flexibility, especially in cases where the purchasers desire to prefer certain constituencies over others of similar or senior priority.  The court also addressed – and ultimately rejected – arguments made by the debtors that certain objections to their 363 sale (discussed below) were constitutionally, statutorily, and equitably moot. We will discuss these issues in a future Bankruptcy Blog post. In re ICL Holdings
2 years 11 months ago
Tenants and landlords are no exception to the ever growing number of individuals filing bankruptcy. A bankruptcy can be a very stressful situation. Bankruptcy becomes even more stressful when real estate is involved, especially when it involves your home. Anything that could potentially threaten your shelter, a necessity of life, should be taken seriously. It is important that both tenants and landlords know their rights during a bankruptcy effecting real estate. What we are seeing today in the real estate industry is an increase in real estate bankruptcies. Families are falling on hard times and are unable to pay rent. Many families are filing for bankruptcy in an effort to stop the eviction process. When a landlord is not receiving rental payments on time, he or she begins to fall behind on the rental property’s mortgage payments. Some landlords cannot pay the rental property’s mortgage payments at all. The landlord will then face foreclosure and/or bankruptcy. In some cases, the landlord may try to reduce the monthly rental amount; however, as much as this method may help a family keep a roof over their heads, it also creates bankruptcy risk for the landlord.   Tenant and Landlord Lease Contracts in Real Estate Bankruptcy When a tenant or landlord files bankruptcy, two things can happen to the lease contract: 1. The lease is allowed to continue in effect as normal. 2. The lease is cancelled.

Read More from: Wynn at Law, LLC

2 years 11 months ago
We call these Zombie homes.  This is the home you move out of when you can no longer afford the payment or the home is in terrible disrepair.  These homes typically have no equity–they are worth far less than what is owed on the mortgage–and it may not seem possible to sell the home. Real estate agents balk at listing the home for sale until repairs are made, and the homeowner may not be in a position to afford the expense.  So, the home sits vacant, sometimes for years. The problem with vacant homes is that you still own them.  You are responsible for cutting the lawn and shoveling the snow. Home association dues continue to accrue even after filing bankruptcy. Home insurance should be maintained in case someone is injured on the property. In some neighborhoods thieves will cut out the plumbing, air conditioners and fixtures. Vandals may break windows or spray paint graffiti on the exterior. The city inspector may impose fines for failure to maintain the home and they may even issue criminal citations if the problems go uncorrected. Owning a vacant home is a serious burden.
2 years 11 months ago
A recent decision by the Ninth Circuit Court of Appeals (found here) changes the strategic calculus for a secured creditor deciding whether to file a proof of claim in a bankruptcy case in the Ninth Circuit.  It has long been true that a secured creditor does not necessarily imperil his lien if he ignores a bankruptcy proceeding and declines to file a claim in connection with his lien.  See U.S. Nat’l Bank in Johnstown v. Chase Nat’l Bank of N.Y.C., 331 U.S. 28, 33 (1947).  But the Ninth Circuit’s decision in In re Blendheim, 2015 WL 5730015 (Oct. 1, 2015) holds that a creditor who actually files a claim, and has that claim disallowed, may have its lien voided under Bankruptcy Code § 506(d).  Thus, filing a proof of claim, at least in a chapter 13 case, may expose a secured creditor to greater risk than simply observing the case from the sidelines.  This contradicts the conventional wisdom that (issues of jurisdiction aside) it is often advisable to file a “protective” proof of claim to preserve your rights.

Read More from: Creditors' Rights

2 years 11 months ago
Photo: JEFF KOWALSKY/BLOOMBERG NEWS
Any shoppers still holding on to Borders gift cards can finally toss them in the trash. The U.S. Supreme Court this week said it won’t take up a case that could have given holders of the defunct book seller’s gift cards a chance to turn the languishing plastic into cash. Plaintiff’s lawyer Clinton Krislov has been fighting on behalf of the gift card holders for years, arguing the Borders bankruptcy estate didn’t do enough to notify shoppers that they risked losing the value on their credits. Before the Supreme Court denial, lower courts found the gift card holders waited too long to raise their claims once Borders went into bankruptcy in 2011. Mr. Krislov said Tuesday this is the end of the line for the Borders fight. “It’s not a court that’s concerned about the little guy being pinched,” he said of the high court denial.

Read More from: WSJ.com: Bankruptcy Beat

2 years 11 months ago
Many married couples file their federal income taxes jointly.  When they file jointly, both spouses are jointly and individually liable for any taxes due on the joint return even if they later divorce. This is true even is a divorce decree states that one spouse is liable for the previously filed joint return.  However, there are certain situations where one spouse can be relieved of the taxes due on a joint return.  One type of relief available from the IRS is innocent spouse relief. Innocent Tax Relief If a spouse receives innocent tax relief, he or she will be relieved of paying tax, interest and penalties for the subject years.  According to the IRS, you must meet all of the following conditions to qualify for innocent spouse relief: First, you and your spouse filed a joint return which has an understatement of tax due to erroneous items of your spouse (or former spouse). Erroneous items include income that your spouse or former spouse failed to report on the return, or incorrect deductions, credits, or property basis claimed by your former spouse.

Read More from: Bonds & Botes, P.C.

2 years 11 months ago