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Per www.globalinsolvency.com:Tue., August 26, 2014The majority owner of Bulgaria's troubled Corporate Commercial Bank (Corpbank) said on Monday it was working with Oman's sovereign wealth fund and other interested investors to restructure the lender, Reuters reported. Corpbank's fate has been in limbo since June, when a run on deposits prompted the central bank to seize control of it and close its operations, sparking the worst banking crisis in the poor Black Sea state since 1990s. Tsvetan Vassilev's Bromak owns just over half of Corpbank, the Balkan country's fourth-largest lender. Oman's sovereign wealth fund is the second-biggest shareholder with a stake of about 30 percent. The central bank said on Friday it had asked the two shareholders to unveil plans for the bank's rescue by the end of August. "I believe we are close to unveiling a decision in principle for the bank's rehabilitation that will fully comply with the legal requirements for capital adequacy and liquidity," Bromak owner Vassilev said in a statement posted on his personal website. Two days after Bulgarian Interim Prime Minister Georgi Bliznashki said an unidentified fund based in Vienna had expressed interest in rescuing the bank, the central bank said it had sent letters to the two shareholders.

Read More from: The COMI

4 years 3 months ago
According to the New York Times – Mr. Mozilo, the co-founder and former chief executive of Countrywide Financial, may soon face a civil lawsuit from the Justice Department.   This disclosure comes almost seven years after the subprime mortgage machine he created and oversaw began its rapid decline in August of 2007 leaving investors and homeowners staggering.   In 2008 Countrywide was bought by Bank of America which was the worst corporate acquisition ever in our lifetime. Read more… Note from Diane:  Does anyone join me in being really doubtful that Mr. Mozilo will ever pay anything for the crisis he helped create? The post Will Countrywide CFO be Sued by Dept of Justice? appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
4 years 3 months ago
Facebook is seeking to dismiss a lawsuit challenging the compensation paid to its non-executive directors, which we previously discussed here.  Although a board’s decision to grant compensation to its members generally falls outside the business judgment rule because board members are deemed personally interested in their compensation levels, if the board’s decision is approved by a majority of independent, disinterested and informed stockholders, then the business judgment rule presumption applies rather than the entire fairness standard.
4 years 3 months ago
Per www.michiganradio.org:August 20, 2014Bridge Magazine writer Mike Wilkinson recently wrote a piece that explored the dollars-and-cents of Detroit, post-bankruptcy and beyond.It's titled “Can Detroit Pay Its Bills Post-Bankruptcy?”Wilkinson said though Detroit has been cash strapped for a while in terms of debt, it does generate a lot of money. It has the highest income tax and property tax in the state. It is the only city in the state allowed to levy a utility tax. And it has an averaged $179 million in casino taxes.“It’s raising more money than Cincinnati, Chicago, Kansas City, Orlando, in terms of per person,” Wilkinson said.Assuming that Kevyn Orr’s Plan of Adjustment is approved by Judge Rhodes, will this revenue be enough to pay the bills? Wilkinson wrote in his piece, “Revenues alone do not a budget make.”And Eric Scorsone, an MSU professor and expert on city finances, said in order to answer that question, we must ask what will Detroit spend the money on?“The truth is it would be very easy to overspend again as Detroit has in most of its history, and that’s going to be the real challenge for the political leadership of Detroit.” Scorsone said.Scorsone is writing a book about Detroit’s financial history dating back to the 1950s, where most of the city’s money issues stem. . .

Read More from: The COMI

4 years 3 months ago
Per the South Florida Business Journal:Aug 22, 2014, 1:05pm EDTA Chicago-based private equity firm submitted the winning bid for part of the Canyon Ranch Hotel & Spa in Miami Beach in a bankruptcy auction.Z Capital Partners won the Aug. 19 auction with a bid of $21.6 million, which was well above the stalking horse bid of $12 million by Montreal-based 360 Vox LLC. It would also be enough to repay the estimated $17.3 million in liabilities in the debtors’ case.The results of the auction will be up for approval on Sept.

Read More from: The COMI

4 years 3 months ago
According to the L.A. Times:BY SHAN LIAugust 21, 2014, 9:22 p.m.Global Franchise Group has bought HDOS Enterprises, parent company of the fast-food chain known for hot dogs and lemonade, for about $12.2 million in an auction from Bankruptcy Court, according to a Thursday statement and court documents.Global Franchise also assumed HDOS' liabilities.HDOS filed for Chapter 11 bankruptcy in February after struggling with declining foot traffic in malls and expensive leases.Chris Dull, chief executive of Global Franchise Group, said Hot Dog on a Stick adds "another strong brand" to the company's roster of quick service restaurants.For more, see http://touch.latimes.com/#section/-1/article/p2p-81147392/

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4 years 3 months ago
News about the Investment Dar restructuring under Kuwait's Financial Stability law, per www.thepeninsulaqatar.com:August 03, 2014 - 12:00:00 amDOHA: Investment Dar, the Kuwaiti firm whose assets include a stake in luxury carmaker Aston Martin, said yesterday a local court had ruled to lift protection the company had against legal action by creditors.Investment Dar was one of several local financial firms which struggled to refinance debt in the aftermath of the global economic crisis but was the first to reorganise under Kuwait’s Financial Stability Law - introduced in 2009 to assist debt renegotiations in a country with opaque bankruptcy rules.As part of that legislation, Investment Dar secured a halt to all legal cases being brought against the firm in relation to non-payment of debts to allow it to implement its restructuring.However, a company statement said a July 24 court ruling had stated that legal protection from creditors would be lifted in accordance with the financial stability law.“This decision is disappointing for us and for many investors, but we respect it and respect the opinion of the Kuwaiti judiciary,” the firm’s statement said.It added Investment Dar remains committed to repaying all three groups of creditors under its restructuring plan the total amount of 440m dinars ($1.56bn).

Read More from: The COMI

4 years 3 months ago
Texas bankruptcy judge Jeff Bohm has ruled that a chapter 7 debtor who sold his homestead over a year after filing bankruptcy could not keep the portion of the proceeds when he failed to reinvest them within six months.  In re Smith, 2014 Bankr. LEXIS 3344 (Bankr. S.D. Tex. 8/4/14).    The case concerns the intersection between bankruptcy law, which determines exemptions as of the petition date, and Texas law, which requires reinvestment to maintain the exemption and is part of a continued trend of homestead proceeds at risk What Happened The Debtor filed a chapter 7 petition on March 20, 2012 and claimed his homestead as exempt.   No party objected to the exemption.   The Trustee did not close the case.   On June 21, 2013, the Debtor sold his homestead and received net proceeds of $813,935.77.    The Debtor did not reinvest the proceeds within six months.   On April 11, 2014, the Trustee filed an adversary proceeding seeking to recover the remaining homestead proceeds in the amount of $700,349.09 from the Debtor.   The Debtor filed a Motion to Dismiss.  The Fifth Circuit and the Vanishing ExemptionThe Fifth Circuit has two reported and one unreported decisions dealing with proceeds from sale of a homestead in bankruptcy.  In re Zibman, 268 F.3d 298 (5th Cir. 2001) involved a debtor who sold his homestead, then filed chapter 7 without reinvesting the sales proceeds.
4 years 3 months ago
On August 19, 2014, www.recorder.com reported that the nation’s oldest cutlery business, Lamson & Goodnow Manufacturing Co. of Shelburne Falls, filed for bankruptcy after 177 years of making knives and kitchen tools.  For more see:http://www.recorder.com/news/13203172-95/lamson-goodnow-files-for-bankruptcy

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4 years 3 months ago
Some analysts are looking back to the collapse of banks in Texas due to faulty real estate loans, and conclude that based on the "Texas ratio" Eurozone banks need additional cash.Per www.globalinsolvency.com:Fri., August 22, 2014As Europe slogs through its latest round of bank stress tests, a growing number of analysts have already reached their own conclusion: Eurozone banks need additional cash, the International New York Times reported. To buttress their case, some analysts have dusted off an obscure American bank metric that highlights the extent to which Europe’s increasing number of nonperforming loans is threatening to overwhelm existing bank cushions. The measure, called the Texas ratio, was developed by an analyst who covered troubled United States banks during the late 1980s and early 1990s. During that period, numerous Texas-based financial institutions collapsed under the weight of faulty real estate loans. Part of what has made the Texas ratio attractive to analysts and regulators is its simplicity. When the ratio of bad loans to equity and cash set aside exceeds 100 percent, it suggests that the bank is either ready to fail or is in desperate need of new capital — as was the case with Texas banks in the 1980s. “We found it to be a very good guide telling you which banks would fail,” said Gerard S. Cassidy, the bank analyst who introduced the formula and coined the name.

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4 years 3 months ago
Prudential Ins. Co. of Am. v. SW Boston Hotel Venture, LLC (In re SW Boston Hotel Venture, LLC), 748 F.3d. 393 (1st Cir. 2014) – A senior mortgagee battled the debtor and a junior mortgagee over its entitlement to post-petition … Continue reading →
4 years 3 months ago
The majority of clients we work with in our bankruptcy practice would be considered “consumer” debtors. Credit card debt, home equity loans, car loans, and medical bills often make up the majority of what they owe to creditors. Bankruptcy laws are written to allow consumer debtors to exempt much of the property they have acquired. The ability to retain property is often a major factor in deciding to file bankruptcy. How much property is exempt under the bankruptcy law is also one of the determining factors in deciding whether to file chapter 7 or chapter 13 bankruptcy.The post Property Exemptions in Bankruptcy appeared first on Tucson Bankruptcy Attorney.
4 years 3 months ago
The majority of clients we work with in our bankruptcy practice would be considered “consumer” debtors. Credit card debt, home equity loans, car loans, and medical bills often make up the majority of what they owe to creditors. Bankruptcy laws are written to allow consumer debtors to exempt much of the property they have acquired. The ability to retain property is often a major factor in deciding to file bankruptcy. How much property is exempt under the bankruptcy law is also one of the determining factors in deciding whether to file chapter 7 or chapter 13 bankruptcy.The post Property Exemptions in Bankruptcy appeared first on Tucson Bankruptcy Attorney.
4 years 3 months ago
There are many myths surrounding life after bankruptcy. The fact is, you can rebuild your credit and your life after bankruptcy. Our Kenosha bankruptcy attorney separates fact from fiction in this post.   Kenosha Bankruptcy Attorney Says: Overcome the Guilt Many people feel guilty or ashamed of filing bankruptcy. You may feel as if you have failed. The fact remains, a recessed economy and poor employment rate have led to more recent bankruptcy filings. You are not a failure and you are not alone. Most bankruptcies happen due to unforeseen and uncontrollable circumstances, such as divorce, illness, job loss, etc. Filing a Kenosha bankruptcy does not make you a bad person. You are a good person stuck in a bad situation. Our Kenosha bankruptcy attorney is here to help you put the past behind and start a second chance.

Read More from: Wynn at Law, LLC

4 years 3 months ago
There are many myths surrounding life after bankruptcy. The fact is, you can rebuild your credit and your life after bankruptcy. Our Kenosha bankruptcy attorney separates fact from fiction in this post.   Kenosha Bankruptcy Attorney Says: Overcome the Guilt Many people feel guilty or ashamed of filing bankruptcy. You may feel as if you have failed. The fact remains, a recessed economy and poor employment rate have led to more recent bankruptcy filings. You are not a failure and you are not alone. Most bankruptcies happen due to unforeseen and uncontrollable circumstances, such as divorce, illness, job loss, etc. Filing a Kenosha bankruptcy does not make you a bad person. You are a good person stuck in a bad situation. Our Kenosha bankruptcy attorney is here to help you put the past behind and start a second chance.

Read More from: Wynn at Law, LLC

4 years 3 months ago
There are many myths surrounding life after bankruptcy. The fact is, you can rebuild your credit and your life after bankruptcy. Our Kenosha bankruptcy attorney separates fact from fiction in this post.   Kenosha Bankruptcy Attorney Says: Overcome the Guilt Many people feel guilty or ashamed of filing bankruptcy. You may feel as if you have failed. The fact remains, a recessed economy and poor employment rate have led to more recent bankruptcy filings. You are not a failure and you are not alone. Most bankruptcies happen due to unforeseen and uncontrollable circumstances, such as divorce, illness, job loss, etc. Filing a Kenosha bankruptcy does not make you a bad person. You are a good person stuck in a bad situation. Our Kenosha bankruptcy attorney is here to help you put the past behind and start a second chance.

Read More from: Wynn at Law, LLC

4 years 3 months ago
The NYTimes Dealbook recently focused on a Proxy Monitor study that found that 70% of shareholder proposals submitted by individuals to Fortune 250 companies in 2014 were sponsored by three people and their family members − John Chevedden, William Steiner and James McRitchie. Over the last nine years, the Cheveddens have filed 232 proposals, with about 19% receiving majority support, while the Steiners made 215 submissions, with 29% passing. According to the report, Evelyn Davis only submitted one proposal in 2014, and none in 2013. Although her success rate for passing proposals is around 1%, the Dealbook article discusses her newsletter that many companies felt compelled to buy and other perks she received.
4 years 3 months ago
According to a study published yesterday by Theodore E. Grantham and Joshua H. Viers, both of the University of California and the U.S. Geological Survey,   "California has allocated five times more surface water than the state actually has...." Grantham and Viers "verified that water-rights allocations exceed the state's actual surface water supply by about 300 million acre-feet, enough to fill Lake Tahoe about 2.5 times. "The state has allocated a total maximum allowable use of 370 million acre-feet of surface water — more than five times the 70 million acre-feet available in a year of good precipitation, according to the researchers’ review of active water rights on record. The analysis was published ... in the journal Environmental Research Letters."The study shows that "in most water basins and in most years, far more people hold water rights than there is water. In the San Joaquin River basin, for example, water-rights allocations exceed the river’s average annual flow by eightfold.""Better information might enable state regulators to better target water cutbacks in times of drought, Grantham said." That, of course, is what markets' pricing mechanisms have a propensity to generate: better information in regard to allocation of resources.

Read More from: Necessary and Proper

4 years 3 months ago