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The SEC plans to hold a vote on adopting a final resource extraction rule on or before June 27, 2016, which is within 270 days of the filing of a recent notice with the U.S. District Court in Massachusetts. The notice of proposed expedited rulemaking schedule responds to the court's order that the SEC must promulgate rulemaking pursuant to a litigation initiated by Oxfam, which we previously discussed here. In order to meet the 270-day schedule, the Commission anticipates voting on a proposed rule before the end of the year and permitting a 45-day comment period thereafter.  
2 years 11 months ago
Women in banking and finance face plenty of obstacles in their efforts to ascend to senior positions. But quotas only serve to reinforce the assumption that women are less capable and talented than their male counterparts.

Read More from: BankThink

2 years 11 months ago
Elsa/Getty Images
A lawsuit that accused 50 Cent of unfairly bolstering his tough-guy image by starting a fight at a 2004 concert in Massachusetts has surfaced in his bankruptcy. Dorothy DeJesus, a Northampton, Mass., resident who was punched in the face during the fight, asked a federal judge to make sure the 40-year-old rapper doesn’t use bankruptcy to get out of paying her at least $25,000 in damages. Ms. DeJesus was injured during 50 Cent’s surprise performance at a hip-hop concert on May 7, 2004, at the Hippodrome Theater in Springfield, Mass., according to documents filed in U.S. Bankruptcy Court in Hartford, Conn. Angered by an audience member who threw “some liquid” on stage, 50 Cent, whose real name is Curtis James Jackson III, took off his hat and jumped into the crowd, court papers said. His entourage followed. “Thereafter, a melee ensued, and audience members, performers and entourage members physically scrambled in skirmish while the concert continued,” Ms. DeJesus’s lawyer said in court papers. Amid the chaos, Ms. DeJesus said she was punched in the face by Mr. Jackson and temporarily passed out. Mr. Jackson denied wrongdoing in the 2007 lawsuit that followed.

Read More from: WSJ.com: Bankruptcy Beat

2 years 11 months ago
Receiving Wide Coverage… U.K. to Sell $3B Stake in Lloyds: The British government is planning to sell its stake in Lloyds Banking Group as it prepares to exit its ownership of the lender next spring. Proceeds of the sale will be used to pay down national debt, the Treasury has said. About $3 billion of shares are being offered to the general public at a 5% discount, and there will likely be a sale to institutional...

Read More from: BankThink

2 years 11 months ago
The past year has seen two notable innovations in the payments world and a third is coming down the pike.  ApplePay was rolled out last spring, the EMV liability shift went into effect on October 1, and the Fed has convened a task force on designing a faster payment system.  All three of these developments seem unlikely to result in major changes in payments unless they come up with a clear value proposition for consumers, merchants, or both.  It's far too early to reach final conclusions about any of these projects, but the initial reception of ApplePay and the EMV liability shift suggests that neither is getting much traction.  ApplePay appears to have very low adoption rates so far:
“People don’t know why it is they’d use Apple Pay,” Jared Schrieber, CEO of InfoScout, told Bloomberg. “They are satisfied with the current methods and they don’t know how Apple Pay works.”

Read More from: Credit Slips

2 years 11 months ago
Relativity Media LL’s sale to investors including founder Ryan Kavanaugh seems poised for approval by a bankruptcy judge, Daily Bankruptcy Review reports via The Wall Street Journal.
Ryan Kavanaugh, founder and chief executive of Relativity, in January 2015. Mr. Kavanaugh is part of the investor group poised to buy the company.
Paul A. Hebert/Associated Press
(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.”) Investors sued Lynn Tilton and her Patriarch Partners Monday for damages over alleged fraudulent misrepresentation and concealment, DBR reports via WSJ.

Read More from: WSJ.com: Bankruptcy Beat

2 years 11 months ago
On 14 September 2015, judgment was handed down in the case of Re SSRL Realisations Limited (In Administration), in which a landlord was granted permission to forfeit a lease by peaceable re-entry. The case will be of interest to insolvency practitioners and landlords alike – but for very different reasons. The facts of this case are all too familiar: the tenant company SSRL entered administration, the business and assets of the company were sold and as part of the transaction, a licence to occupy was granted to the Newco purchaser, pending an application to the landlord for consent to assign the lease. The application for consent to assign the lease was refused on the basis that Newco had no covenant strength and had refused to enter into an authorised guarantee agreement. The landlord therefore applied for permission to forfeit the lease pursuant to paragraph 43 of Schedule B1 of the Insolvency Act 1986. The main issues arising were (i) whether the purposes of the administration would be impeded by forfeiture of the lease, and (ii) if so, where the balance lay between the landlord’s and the creditors’ interests following the leading authority on this point – Atlantic Computer Systems.

Read More from: eSQUIRE Global Crossings

2 years 11 months ago
On September 29, 2015, Judge Laurie Selber Silverstein of the Delaware Bankruptcy Court ruled on the objection of a distribution trustee to payment of the bankruptcy debtor’s investment banker.  This opinion caught my eye as it is unusual for objections to fee applications to merit written opinions.  The “Opinion” is available here. In this case, the investment banker was seeking payment of a monthly fee (unopposed), a M&A fee (unopposed), a success fee (opposed), and related expenses (unopposed).  The investment banker appears to have successfully fulfilled its role in this case:  The debtors obtained DIP financing and a plan of reorganization was confirmed under chapter 11 of the Bankruptcy Code.  Considering the current bankruptcy climate, anything other than a 363 sale and conversion to chapter 7 is a success.  For a chapter 11 case to be confirmed – and within 4 months – is commendable.
2 years 11 months ago
The term has gone from a common brand name to a catch-all for innovative technologies in financial services to a somewhat patronizing plural noun to describe startups and their founders.

Read More from: BankThink

2 years 11 months ago
In American Federated Title Corp. v. GFI Management Services, Inc., the United States District Court for the Southern District of New York had occasion to discuss the interplay between corporate veil piercing and fraudulent transfer claims under New York law, finding that although certain loan repayments by the debtor companies to their principals and an affiliated entity satisfied the objective standards for constructive fraudulent transfers under New York Debtor and Creditor Law, the circumstances surrounding such payments would not necessarily justify applying the more stringent standards for disregarding the corporate form.  In American Federated, the plaintiff sued four limited liability companies for breach of contract and unpaid rent, which culminated in a settlement judgment in the plaintiff’s favor.  The defendants, however, failed to pay the judgment.  As a result, the plaintiff sought to hold the owners of the LLCs and an affiliated corporation liable under veil-piercing and fraudulent transfer theories, pointing to the payment of management fees to the affiliated corporation by the debtors and repayments of loans made to the debtors’ insiders while the debtors were insolvent.
2 years 11 months ago
On September 16, 2015, Samson Resources Corp. (“Samson” or “Debtor”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware in Wilmington [Case No. 15-11934]. According to the declaration of Philip Cook (the “Cook Declaration”)— that was filed in conjunction with the Debtor’s first day pleadings— Samson is a privately held onshore oil and gas exploration and production company with operations and royalty or working interests in approximately 8,700 oil and gas production sites primarily located in Colorado, Louisiana, North Dakota, Oklahoma, Texas and Wyoming. The Debtors plan to use the Chapter 11 process to reduce its $4.2 billion debt: $2.25 of which is to unsecured noteholders. See Cook Declaration at 10, 20. Samson has entered into a Restructuring Support Agreement with over 68 percent of the second lien lenders,  which seeks to effectuate a debt-for-equity conversion and rights offering.  See Cook Declaration at 32.
2 years 11 months ago
Borrowers are faced with two terrible choices: take out another exploitative loan because of the shortfall created by the first, or face a range of catastrophic consequences associated with defaulting.

Read More from: BankThink

2 years 11 months ago
If we can't identify adequate capital to bear mortgage credit losses when they are incurred, aren't we setting ourselves up for another series of bailouts in the next housing downturn?

Read More from: BankThink

2 years 11 months ago
Don Ryan/Associated Press
Will your Haggen store be saved under a pair of newly announced deals? While the West Coast grocery-store chain is in the process of shutting down than 100 stores in bankruptcy, Haggen officials revealed a plan to sell 36 stores in California and Nevada. Under the offers, Smart & Final LLC proposed to buy 28 stores in California and Nevada for $56 million, while Gelson’s Markets proposed to buy eight California stores for $36 million, according to documents filed in U.S. Bankruptcy Court in Wilmington, Del. The Bellingham, Wash.-based chain, which recorded a drop in sales at its grocery stores after its takeover of the Albertson’s grocery chain’s locations in Washington, Oregon, California, Arizona, and Nevada earlier this year, are prepared to hold an Nov. 9 auction if even better offers emerge. Gelson’s Markets: STORE METRO AREA California Carlsbad – El Camino Real Carlsbad Del Mar – Via De La Valle, Del Mar Ladera Ranch – Crown Valley Parkway Ladera Ranch Laguna Beach – South Pacific Coast Hwy. Laguna Beach La Jolla – Turquoise St San Diego Rancho Mirage – Bob Hope Drive Rancho Mirage Santa Monica – Lincoln Blvd Santa Monica Thousand Oaks – Avenida De Los Arboles Thousand Oaks Smart & Final LLC

Read More from: WSJ.com: Bankruptcy Beat

2 years 11 months ago
Donald Trump, the current frontrunner for the Republican presidential nomination, has come under fire from both the media and the other candidates for his business record. Although Trump has never filed for personal bankruptcy, he has reportedly filed for business bankruptcy at least four times. Trump responded to the criticism by arguing that businesses often have to file for bankruptcy and that filing for bankruptcy was a financially sound move each time he did it. In fact, during the September 16 Republican debate, Trump observed that “hundreds of companies” have done the same thing. PolitiFact, the Tampa Bay Times’ award-winning fact-checking blog, recently analyzed the claims, from both sides, about Donald Trump’s business bankruptcies in an article straightforwardly titled “Fact-checking claims about Donald Trump’s four bankruptcies.” The website found that there is validity to many of Trump’s points about business bankruptcy being in the best interests of companies. Trump has filed for business bankruptcy four times: the Trump Taj Mahal in 1991, Trump Plaza Hotel in 1992, Trump Hotels and Casinos Resorts in 2004 and Trump Entertainment Resorts in 2009. Each time, the bankruptcy was a Chapter 11 filing.
2 years 11 months ago
Recently, the Consumer Financial Protection Bureau (CFPB) took action against the nation’s two largest debt buyers and collectors – Encore Capital Group (Midland Funding, Midland Credit Management, Asset Acceptance)   and Portfolio Recovery Associates – for using deceptive tactics to collect bad debts that were potentially inaccurate, lacking documentation, or unenforceable. The CFPB has ordered the companies to overhaul their debt collection and litigation practices and to stop reselling debts to third parties. Both companies must pay consumer refunds, pay penalties, and stop collection on certain debts. Here is the press release from the CFPB.

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

2 years 11 months ago
Is a debtor required to pay default rate interest when it reinstates a loan under a plan of reorganization? According to a recent Eleventh Circuit Court of Appeals decision, In re Sagamore Partners, Ltd., 2015 U.S. App. LEXIS 15382 (Aug. 31, 2015), the answer depends upon the underlying loan documents and applicable non-bankruptcy law. In Sagamore, the debtor owned a hotel located in Miami Beach. The debtor had borrowed $31.5 million from Arbor Commercial Mortgage, LLC (“Arbor”) for renovations. Arbor subsequently assigned the underlying Note and Loan Agreement to a JPMorgan entity (“JPMCC”). The Loan Agreement required interest only payments until 2016, when all outstanding payments would become due. The Loan Agreement further provided that upon an “Event of Default”, Sagamore would be required to pay default rate interest of 11.54%. Included within the definition of “Event of Default” was failure by Sagamore to make any regularly scheduled payment when due.

Read More from: eSQUIRE Global Crossings

2 years 11 months ago
Just before the deadline on Friday, both the SEC and Amnesty International filed petitions for a review of the most recent court decision on the SEC's conflict minerals rule. The petitions ask the U.S. Court of Appeals for the District of Columbia to reconsider the decision in August, when a three-judge panel upheld, in a 2-1 ruling, the District Court's finding that the requirement to report that products have "not been found to be DRC conflict free" violates the First Amendment.
2 years 11 months ago
Don’t miss the educational opportunity of the year for the Federal Equity Receiver and his or her support group (including counsel, accountants and support staff).  The fourth annual conference of the National Association of Federal Equity Receivers kicks off next Thursday, October 15 with a welcome reception and goes through Saturday, October 17 at noon. Read more here.
2 years 11 months ago
Receiving Wide Coverage... Ben's Book Tour: Ben Bernanke's memoir detailing his role in America's response to the financial crisis, titled "The Courage to Act," is set to be released Monday. While reviews have yet to come out, the book received some criticism for its debatably hyperbolic title when it was announced in April. ...

Read More from: BankThink

2 years 11 months ago