Help Center

Winter Leadership Conference | December 5-7 | Rancho Palos Verdes , CA Register Today View Schedule

Detroit

Analysis An In-Depth Look at How Detroit Went Broke

ABI Bankruptcy Brief | September 12, 2013
 
  

September 17, 2013

 
home  |  newsroom  |  chart of the day  |  blogs  |  bankruptcy code and rules  |  statistics  |  legislative news  |  volo
  NEWS AND ANALYSIS   

ANALYSIS: AN IN-DEPTH LOOK AT HOW DETROIT WENT BROKE

Detroit's financial history back to the 1950s shows that its elected officials and others charged with managing its finances repeatedly failed -- or refused -- to make the tough economic and political decisions that might have saved the city from financial ruin, according to a Detroit Free Press analysis on Sunday. Faced with a huge exodus of residents, plummeting tax revenues and skyrocketing rates of home abandonment, Detroit's leaders engaged in a billion-dollar borrowing binge, created new taxes and failed to cut expenses when they needed to. Simultaneously, they gifted workers and retirees with generous bonuses. And under pressure from unions and, sometimes, arbitrators, they failed to cut health care benefits -- saddling the city with staggering costs. The State of Michigan also bears some of the blame, as Lansing politicians reduced Detroit's state-shared revenue by 48 percent from 1998 to 2012, withholding $172 million from the city, according to state records. Decades of mismanagement added to Detroit's fiscal woes. The city notoriously bungled multiple federal aid programs and outrageously overpaid to incentivize projects such as the Chrysler Jefferson North plant. Read more.

SINCE LEHMAN'S COLLAPSE, COMPANIES MORE FORTHCOMING ON COMPLIANCE

One major change since the financial crisis is how companies have become more transparent about pending litigation and government investigations, the New York Times DealBook blog reported yesterday. And in response to greater public scrutiny, that has meant committing a lot more money and resources to comply with a host of regulatory requirements. The collapse of Lehman Brothers had little to do with how well, or poorly, the firm followed the rules. Public outrage, however, over the government's failure to oversee financial institutions has created a much tougher regulatory environment in which companies cannot afford to fall short. The Dodd-Frank Act was adopted in 2010 to address inadequate oversight and regulation of the financial markets. But many of the rules mandated by the law have yet to be adopted, as the Securities and Exchange Commission and the Commodity Futures Trading Commission are bogged down with figuring out exactly how to regulate financial products like derivatives and money market funds. Companies, surprisingly though, have not waited around to be prodded. Read more.

ABI held a media teleconference on Sept. 12 that discussed the Lehman chapter 11 filing, the lessons learned from it five years later and what the future holds for distressed large financial institutions. An audio archive of the teleconference is available here.

COMMENTARY: REGULATORS SHOULD DRAW A LINE BETWEEN FINANCE AND COMMERCE

The Federal Reserve, Congress and some of the world's largest financial institutions are about to tackle the existential issue of what a bank is, according to a commentary in today's Wall Street Journal. The narrow version of the debate, according to the commentary, is whether JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley should continue to own, store and transport commodities such as oil, copper and electricity. But its ramifications reach into a cornerstone of modern U.S. financial architecture: the separation of finance and commerce. Decisions made in the coming weeks should determine the boundaries of what banks can and can't do, as well as affect other participants in the economy ranging from brewers to Coke drinkers. Read more. (Subscription required.)

ANALYSIS: A TOXIC SUBPRIME MORTGAGE BOND'S LEGACY LIVES ON

Composed entirely of loans made by Countrywide Financial Corp., subprime mortgage bond "CWABS 2006-7" was so battered by delinquencies in 2009 that it appeared that nearly all of the thousands of mortgages held by the bond could default, according to an analysis in Friday's Wall Street Journal. Subprime bond CWABS 2006-7 began as a bundle of nearly 6,000 mortgages in 2006, but by 2013, fewer than a third remained. One might think that today, such a relic of misbegotten lending would be as dead as orbiting space junk. Instead, CWABS 2006-7 is alive and well, a sought-after asset that has made big profits for savvy investors. A senior slice of it now trades at 91 cents on the dollar, having come nearly all the way back. That has been a boon for firms such as bond giant Pimco, whose stake in the Countrywide bond has helped make one of Pimco's funds a top performer in its category. At the same time, the bond has affected the lives of struggling Florida homeowners; some are unable to make their payments, and others determinedly continue to do so at above-market mortgage rates. Read more. (Subscription required.)

ABILIVE WEBINAR ON SEPT. 24 TO EXAMINE THE COMPLEX REQUIREMENTS AND ETHICAL DUTIES OF REPRESENTING CONSUMER DEBTORS

The abiLIVE webinar on Sept. 24 will feature a panel of experts discussing the ethical and compensation issues that can arise while representing chapter 7 and 13 debtors as well as individual chapter 11 debtors. Topics covered include client fraud and an attorney's duty to verify client information, attorney fee structures, and complex issues in individual chapter 11 cases. The panel includes perspectives from the attorneys and trustees, as well as the academic reporter for the ABI Ethics Task Force. Click here to register.

NEW ABILIVE WEBINAR OCT. 3: THE INTERSECTION OF INTELLECTUAL PROPERTY AND BANKRUPTCY: KODAK, NORTEL AND OTHER CASES

IP experts will shed light on the mysteries of understanding IP law and navigating the often puzzling sales processes, drawing from their experiences in Nortel, Kodak and other important cases, in an abiLIVE webinar on Oct. 3 from 1:00-2:15 p.m. ET. Speakers will include David Berten (Global IP Law Group, LLC; Chicago), Pauline K. Morgan (Young Conaway Stargatt & Taylor, LLP; Wilmington, Del.), Cassandra M. Porter (Lowenstein Sandler LLP; Roseland, N.J.), Kelly Beaudin Stapleton (Alvarez & Marsal; New York) and Christopher Burton Wick (Hahn Loeser & Parks LLP; Cleveland). To register, click here.

RECORDING AVAILABLE OF THE ABILIVE WEBINAR EXAMINING THE NEW U.S. TRUSTEE FEE GUIDELINES!

If you were not able to join ABI's recent well-attended abiLIVE webinar examining the U.S. Trustee Fee Guidelines for chapter 11 cases filed on or after Nov. 1, a recording of the program is now available for downloading! A panel of experts, including Clifford J. White, the director of the U.S. Trustee Program, discussed some of the ways the new guidelines could change day-to-day operations in firms, issues relating to the new market rate benchmarks, and how these changes might alter insolvency practice. The 90-minute recording is available for the special ABI member price of $75 and can be purchased here.

ABI GOLF TOUR UNDERWAY; LAST STOP FOR 2013 IS WINTER LEADERSHIP CONFERENCE IN DECEMBER

The 7th and final stop for the 2013 ABI Golf Tour is on Dec. 5 at the Trump National Golf Club, held in conjunction with ABI’s Winter Leadership Conference. Final scoring to win the Great American Cup — sponsored by Great American Group — is based on your top three scores from the seven ABI events. See the Tour page for details and course descriptions. The ABI Golf Tour combines networking with fun competition, as golfers "play their own ball." Including your handicap means everyone has an equal chance to compete for the glory of being crowned ABI's top golfer of 2013! A 22-handicapper won the tour event at July’s Southeast Bankruptcy Workshop. There's no charge to register or participate in the Tour.

ABI IN-DEPTH

NEW CASE SUMMARY ON VOLO: MORRIS AVIATION LLC V. DIAMOND AIRCRAFT INDUSTRIES INC. (6TH CIR.)

Summarized by Mike Debbeler of Graydon Head & Ritchey LLP

The Sixth Circuit ruled that the airplane manufacturer's opinion of the "quality and reliability" of components was not a fraudulent or negligent misrepresentation where the component manufacturer filed bankruptcy and voided warranties on components shortly after plaintiff purchased the airplane from the manufacturer. The airplane manufacturer's mere opinion as to component manufacturer's financial health did not form the basis of a misrepresentation claim.

There are more than 1,000 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: FURTHER ANALYSIS OF JPMORGAN'S SETTLEMENT OVER "LONDON WHALE" LOSSES

The Bankruptcy Blog Exchange is a free ABI service that tracks more than 80 bankruptcy-related blogs. A recent blog post explores JPMorgan Chase's $750 million to $800 million settlement with U.S. and U.K. regulators related to last year's $6 billion "London Whale" trading loss.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

Success fees for financial advisors should be prohibited.

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

INSOL INTERNATIONAL

INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 43 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

Have a Twitter, Facebook or LinkedIn Account?

Join our networks to expand yours.

  

 

TOMORROW!

 

NYU 2013
USE CODE "NYU75" WHEN CHECKING OUT TO SAVE $75!
Register Today!

 

 

 

COMING UP

 

abiLIVE WEBINAR:

abiLIVESeptember
Register Today!

 

 

VFB2013
Register Today!

 

 

MW2013
Register Today!

 

 

Mid-Level PDP 2013
Register Today!

 

 

Detroit
Register Today!

 

 

Detroit
Register Today!

 

 

CFRP13
Register Today!

 

 

CRC13
Register Today!

 

 

ACBPIA13
Register Today!

 

 

Detroit
Register Today!

 

 

Delaware
Register Today!

 

 

WLC
Register Today!

 

 

40-Hour Mediation Program
Register Today!

 
   
  CALENDAR OF EVENTS
 

2013

September
- Lawrence P. King and Charles Seligson Workshop on Bankruptcy & Business Reorganization
    Sept. 18-19, 2013 | New York
- abiLIVE Webinar: Complex Requirements and Ethical Duties of Representing Consumer Debtors
     Sept. 24, 2013
- Bankruptcy 2013: Views from the Bench
    Sept. 27, 2013 | Washington, D.C.

October
- abiLIVE Webinar: The Intersection of Intellectual Property and Bankruptcy: Kodak, Nortel and Other Cases
     Oct. 3, 2013
- Midwestern Bankruptcy Institute Program and Midwestern Consumer Forum
    Oct. 4, 2013 | Kansas City, Mo.
- Professional Development Program
    Oct. 11, 2013 | New York, N.Y.
- Chicago Consumer Bankruptcy Conference
    Oct. 14, 2013 | Chicago, Ill.
- International Insolvency & Restructuring Symposium
    Oct. 25, 2013 | Berlin, Germany


  


November
- Complex Financial Restructuring Program
   Nov. 7, 2013 | Philadelphia, Pa.
- Corporate Restructuring Competition
   Nov. 7-8, 2013 | Philadelphia, Pa.
- Austin Advanced Consumer Bankruptcy Practice Institute
   Nov. 10-12, 2013 | Austin, Texas
- Detroit Consumer Bankruptcy Conference
   Nov. 11, 2013 | Detroit, Mich.
- Delaware Views from the Bench
   Nov. 25, 2013 | Wilmington, Del.

December
- Winter Leadership Conference
    Dec. 5-7, 2013 | Rancho Palos Verdes, Calif.
- ABI/St. John’s Bankruptcy Mediation Training
    Dec. 8-12, 2013 | New York


 
 
ABI BookstoreABI Endowment Fund ABI Endowment Fund
 

Justice Department Probe Turns Up Heat on Banks

ABI Bankruptcy Brief | August 6, 2013
 
  

August 8, 2013

 
home  |  newsroom  |  chart of the day  |  blogs  |  bankruptcy code and rules  |  statistics  |  legislative news  |  volo
  NEWS AND ANALYSIS   

JUSTICE DEPARTMENT PROBE TURNS UP HEAT ON BANKS

The Justice Department is targeting banks that service a broad range of what it considers questionable financial ventures, including online payday lenders, the Wall Street Journal reported today. The Justice Department is targeting banks that service a broad range of what it considers questionable financial ventures, including online payday lending, that officials worry may harm consumers. The government has issued subpoenas to banks and other companies that handle payments for an array of financial offerings, ramping up an investigation that has been under way for several months, according to Justice Department officials. It's a shift in strategy: Rather than just targeting individual firms, the government is now going after the infrastructure that enables companies to withdraw money from people's bank accounts. The volume of online payday lending -- a term for smaller, short-term loans at high interest rates -- grew to $18.6 billion in 2012, up 10 percent from the previous year, accounting for nearly 40 percent of industrywide payday-loan volume, according to investment bank Stephens Inc. Regulators are also trying tamp down phone and online offers in which marketers try to get people to pay for services that they don't intend to deliver. These can include offerings to erase debt or offerings of work-from-home programs that don't lead to jobs, officials say. Read more. (Subscription required.)

DETROIT RATTLES MUNI MARKET

A fight over bankrupt Detroit's sewer system threatens to reshape the nation's $3.7 trillion municipal-bond market, the Wall Street Journal reported today. The battle pits Detroit Emergency Manager Kevyn Orr against the fund companies, insurers and individuals that hold more than $5 billion of Detroit water and sewer bonds, over a plan to restructure the debt. Orr wants bondholders to sign off on a plan to tear up some outstanding bonds and replace them with new ones that could have different terms. The switch could free up millions of dollars in city revenue, potentially reducing losses for other creditors in the city's more than $18 billion bankruptcy case. Some bondholders say that they don't want that deal, even though Orr says they wouldn't suffer losses on the debt switch. They say tearing up the bonds could set a dangerous precedent that may shock buyers of supposedly safe municipal debt and impair financing for other U.S. states and cities. Read more. (Subscription required.)

For the latest information and analysis about the Detroit case, be sure to visit ABI's dedicated website, http://news.abi.org/Detroit.

COMMENTARY: PENSION REFORM COULD DISRUPT INVESTMENT FUNDS

Detroit's financial woes, exacerbated by underfunded pension liabilities, have brought renewed scrutiny to public pension plans, according to a commentary yesterday on the New York Times DealBook blog. Senator Orrin Hatch (R-Utah) and others have suggested overhauling these plans to shift more responsibility to the private sector. Private insurance companies would assume responsibility for these defined benefit plans, offering annuities to beneficiaries in exchange for employer-paid premiums. Proponents argue that privatization could reduce the risk of municipal bankruptcy and federal bailouts. One downside, according to the commentary, is the possible increase in fees associated with external management of retirement savings; it creates another way for Wall Street to extract wealth from Main Street. Phasing out public pension funds could also cut off an important source of financing for venture capital and private equity. Pension funds like the California Public Employees' Retirement System, or CalPERS, and the Teachers Retirement System of Texas are among the largest and most powerful institutional investors in venture capital and private equity. Read the full commentary.

CONSUMERS FIND INVESTORS EAGER TO MAKE "PEER-TO-PEER" LOANS

There has been a growing shift among lenders with many individual investors jumping to fund unsecured, high-interest-rate loans to bring in high yields, the Wall Street Journal reported yesterday. Even some investment funds are getting into the game, snapping up entire loans before individual investors can act. Prosper Loans Marketplace Inc., and a bigger competitor, Lending Club Corp., dominate an obscure corner of the financial-services sector called "peer-to-peer" lending, in which consumers bypass banks altogether to borrow money from other individuals. It is part of a shadow-lending system that has thrived since the 2008 financial crisis caused many banks to tighten their credit standards. With more money chasing the loans, lenders such as Prosper are working hard to come up with enough borrowers to meet the demand. Each month, Prosper mails more than a million preapproved loan applications. In June, the company arranged $27.5 million in loans, a bit short of its goal. In July, it originated $30.3 million. Prosper and Lending Club together originated about $871 million in loans last year, more than double the prior year's total and up tenfold since 2008. Lending Club says it is on track to lend $2 billion this year. Read more. (Subscription required.)

IN CASE YOU MISSED IT - abiLIVE WEBINAR DISCUSSING § 1111(b) ELECTION, PLAN FEASIBILITY AND CRAMDOWN ISSUES RECORDING IS NOW AVAILABLE!

If you were not able to attend ABI's recent abiLIVE webinar examining § 1111(b), a recording of the program is now available for downloading! Utilizing a case study, ABI's panel of experts explored the issues surrounding a lender's decision on whether or not to make an election under § 1111(b), plan feasibility and voting. The abiLIVE panel also walked attendees through the necessary mathematical analyses used to examine these issues. The 90-minute recording is available for the special price of $75 and can be purchased here.

abiLIVE WEBINAR ON AUGUST 20: HOW WILL THE NEW U.S. TRUSTEE FEE GUIDELINES IMPACT YOU?

The new U.S. Trustee Fee Guidelines will affect all attorneys and firms who work on larger chapter 11 cases filed on or after Nov. 1. ABI's Ethics & Professional Compensation Committee will present a panel of experts, including Clifford J. White, the director of the U.S. Trustee Program, to discuss some of the ways the new guidelines could change day-to-day operations in firms, issues relating to the new market rate benchmarks, and how these changes might alter insolvency practice. Register today to hear government, attorney and academic perspectives speak on this important and timely topic.

ABI GOLF TOUR UNDERWAY; NEXT STOP IS THE SOUTHWEST BANKRUPTCY CONFERENCE ON AUG. 22

The 6th stop for the ABI Golf Tour is on Aug. 22 at the Incline Village Champion course, held in conjunction with ABI's Southwest Bankruptcy Conference. Final scoring to win the Great American Cup — sponsored by Great American Group — is based on your top three scores at seven scheduled ABI events, so play as many as you can before the tour wraps up at the Winter Leadership Conference in December. See the Tour page for details and course descriptions. The ABI Golf Tour combines networking with fun competition, as golfers "play their own ball." Including your handicap means everyone has an equal chance to compete for the glory of being crowned ABI's top golfer of 2013! A 22-handicapper won the tour event at July's Southeast Conference. There's no charge to register or participate in the Tour.

ABI IN-DEPTH

ASSOCIATES: ABI'S NUTS & BOLTS ONLINE PROGRAMS HELP YOU HONE YOUR SKILLS WHILE SAVING ON CLE!

Associates looking to sharpen their bankruptcy knowledge should take advantage of ABI's special offer of combining general, business or consumer Nuts & Bolts online programs. Each program features an outstanding faculty of judges and practitioners explaining the fundamentals of bankruptcy, offering procedures and strategies tailored for both consumer and business attorneys. Click here to get the CLE you need at a great low price!

NEW CASE SUMMARY ON VOLO: WASHINGTON GROUP INTERNATIONAL INC. V. THE UNITED STATES OF AMERICA (IN RE WASHINGTON GROUP INTERNATIONAL INC., ET AL.; 9TH CIR.)

Summarized by Joel Newell of Lane & Nach P.C.

In the unpublished ruling, the Ninth Circuit BAP affirmed Bankruptcy Judge Gregg W. Zive's application of the 9th Circuit precedent as set forth in In re Cal. Dep't of Health Svcs. V. Jensen (In re Jensen), 995 F.2d 925 (9th Cir. 1993), denying debtor's motion to enjoin the subsequent litigation.

There are more than 900 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: DEBTOR'S BANKRUPTCY APPEAL TOSSED FOR DELAY BY ELEVENTH CIRCUIT

The Bankruptcy Blog Exchange is a free ABI service that tracks 35 bankruptcy-related blogs. A recent blog post looks at a case out of the Eleventh Circuit in which a pro se debtor filed for chapter 7 bankruptcy in 2009 and disclosed that he had nearly $40,000 in student loan obligations. The debtor filed an adversary complaint against the lender and sought a determination that his student loan obligations were dischargeable. The lender served a set of interrogatories on the debtor, which the debtor steadfastly refused to answer (even after being compelled to do so by the court). Ultimately, the court dismissed the debtor's case. On appeal to the district court, the debtor failed to file or serve his initial appellate brief, never requested an extension of time, and had not otherwise appeared in the case. More than five months after the debtor filed his notice of appeal, the district court sua sponte dismissed the appeal for failure to prosecute.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

A class of claims should not be considered impaired for purposes of § 1129(a)(10) if the impairment results from the plan proponents' exercise of discretion (i.e., artificial impairment) and not driven by economic need. (In re Village at Camp Bowie I LP).

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

INSOL INTERNATIONAL

INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 43 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

Have a Twitter, Facebook or LinkedIn Account?

Join our networks to expand yours.

  

 

NEXT EVENT:

 

abiLIVE WEBINAR:

abiLIVEAugust
Register Today!

 

 

COMING UP

 

 

SW 2013
Register Today!

 

 

NYIC Golf Tournament 2013
Register Today!

 

 

Endowment Baseball 2013
Register Today!

 

 

NYU 2013
Register Today!

 

 

abiLIVE WEBINAR:

abiLIVESeptember
Register Today!

 

 

VFB2013
Register Today!

 

 

MW2013
Register Today!

 

 

Endowment Football 2013
Register Today!

 

 

Mid-Level PDP 2013
Register Today!

 

 

Detroit
Register Today!

 

 

Detroit
Register Today!

 

 

CFRP13
Register Today!

 

 

CRC13
Register Today!

 

 

ACBPIA13
Register Today!

 

 

Detroit
Register Today!

 

 

Detroit
Register Today!

 

 

40-Hour Mediation Program
Register Today!

 
   
  CALENDAR OF EVENTS
 

2013

August
- abiLIVE Webinar: How Will the New U.S. Trustee Fee Guidelines Impact You?
     August 20, 2013
- Southwest Bankruptcy Conference
    August 22-24, 2013 | Incline Village, Nev.

September
- ABI Endowment Golf & Tennis Outing
    Sept. 10, 2013 | Maplewood, N.J.
- ABI Endowment Baseball Game
    Sept. 12, 2013 | Baltimore, Md.
- Lawrence P. King and Charles Seligson Workshop on Bankruptcy & Business Reorganization
    Sept. 18-19, 2013 | New York
- abiLIVE Webinar: Complex Requirements and Ethical Duties of Representing Consumer Debtors
     Sept. 24, 2013
- Bankruptcy 2013: Views from the Bench
    Sept. 27, 2013 | Washington, D.C.

October
- Midwestern Bankruptcy Institute Program and Midwestern Consumer Forum
    Oct. 4, 2013 | Kansas City, Mo.
- Professional Development Program
    Oct. 11, 2013 | New York, N.Y.


  


- Chicago Consumer Bankruptcy Conference
    Oct. 14, 2013 | Chicago, Ill.
- International Insolvency & Restructuring Symposium
    Oct. 25, 2013 | Berlin, Germany

November
- Complex Financial Restructuring Program
   Nov. 7, 2013 | Philadelphia, Pa.
- Corporate Restructuring Competition
   Nov. 7-8, 2013 | Philadelphia, Pa.
- Austin Advanced Consumer Bankruptcy Practice Institute
   Nov. 10-12, 2013 | Austin, Texas
- Detroit Consumer Bankruptcy Conference
   Nov. 11, 2013 | Detroit, Mich.

December
- Winter Leadership Conference
    Dec. 5-7, 2013 | Rancho Palos Verdes, Calif.
- ABI/St. John’s Bankruptcy Mediation Training
    Dec. 8-12, 2013 | New York


 
 
ABI BookstoreABI Endowment Fund ABI Endowment Fund
 

Congress Approves Student Loan Interest Plan

ABI Bankruptcy Brief | August 1, 2013
 
  

August 1, 2013

 
home  |  newsroom  |  chart of the day  |  blogs  |  bankruptcy code and rules  |  statistics  |  legislative news  |  volo
  NEWS AND ANALYSIS   

CONGRESS APPROVES STUDENT LOAN INTEREST PLAN

The millions of college students and parents who will borrow money from the federal government for the coming school year can plan on much lower interest rates than originally offered, as the U.S. House overwhelmingly voted 392 to 31 yesterday to approve a Senate plan that would allow interest rates to move with the financial markets, the Washington Post reported today. The plan now goes to President Obama for signature, who has already voiced his support. Undergraduates who take out federal loans for the coming school year can expect an interest rate of 3.86 percent, while the rate for graduate students will be 5.41 percent. The interest rate for PLUS loans, available to graduate students and parents of students, will be 6.41 percent. All of those rates are lower than the current fixed rates of 6.8 percent for Stafford loans and 7.9 percent for PLUS loans. These rates will apply to loans taken out since July 1 and will lock in for the lifetime of the loan. The plan calls for limits on how high the rates can go: 8.25 percent for undergraduates, 9.5 percent for graduate students and 10.5 percent for PLUS loans. Read more.

DETROIT

COMMENTARY: FOR DETROIT'S RETIREES, MICHIGAN'S PENSION PROMISE MUST BE KEPT

If all of Detroit's creditors and claimants are on the hook for a reduction in the $18.5 billion in debt and long-term liabilities they're owed, a fair settlement cannot be reached without accounting for the damage done in the process, to the city and to its people, according to an editorial today in the Detroit Free Press. Among the city's claimants, retirees are the most vulnerable, according to the editorial. Their payouts are meager -- an average of $30,000 a year for police and fire, $19,000 for other city employees -- but absolutely crucial to their survival. And even though the pension systems' elected leadership mismanaged funds, made poor investments and overstated the funds' health, to place the burden of the consequences of those missteps on recipients is a nightmare. If you're getting only about $1,600 a month -- now subject to state income tax -- even a small adjustment can be devastating. Many pensioners would have to turn to public assistance, lose their independence, or worse. The editorial insists that Detroit face up to its decades of financial mismanagement, support the idea that residents and services should be prioritized over the city's debts and liabilities, and accept that bankruptcy is the vehicle for that restructuring. A financially solvent Detroit bought at the expense of retirees' welfare and safety is an equation that doesn't balance. Read the full editorial.

Looking for court documents or the state statutes referenced in the Detroit bankruptcy case? The latest news stories and analysis? Audio and video of experts examining the issues of the case? ABI has all those items and more on ABI's Detroit Bankruptcy Resources webpage. As new developments break and filings are registered with the court throughout the proceeding, ABI's Detroit webpage will keep you up-to-date on the proceeding. Make sure to bookmark and regularly visit http://news.abi.org/detroit.

BLOOMBERG'S LATEST "BILL ON BANKRUPTCY" VIDEO: DETROIT COULD MEAN LITTLE FOR CREDITORS

How Detroit is dramatically different from any other municipal bankruptcy is the first topic of discussion on the video with Bloomberg Law's Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle. To watch the video, please click here.

ANALYSIS: EMINENT DOMAIN BATTLE PITS HOMEOWNER AGAINST HOSPITAL

Robert and Patricia Castillo, a California couple who have already had their monthly mortgage payments cut by almost 60 percent, want the city of Richmond to reduce their debt further by using its powers of eminent domain. But that could be bad for hospitals in Missouri, according to a Bloomberg News analysis today. The Castillos owe $436,500 on two loans on a three-bedroom home that's now worth about $125,000. The hospitals are members of a mutual insurer that's among investors in the Pimco High Yield Fund, which owns a slice of the bonds backed by loans including the Castillos'. Richmond Mayor Gayle McLaughlin said "it's our community that's at stake here," and the eminent domain plan is needed to help her city stem its foreclosure crisis. At least a dozen cities still dealing with the fallout of the housing bust are studying proposals to confiscate home loans and write them down to help homeowners escape oversized debt burdens. Pacific Investment Management Co., which is known as Pimco and manages the world's largest bond fund, is among mortgage-securities investors organizing a coalition to take legal action to oppose the push. The program is advocated by Steven Gluckstern's Mortgage Resolution Partners LLC, which would provide services and arrange for private investment funds that would profit by buying the loans for less than property values and then reworking them. Read more.

BANKS FIND S&P TO BE MORE FAVORABLE IN ITS BOND RATINGS

Five years after inflated credit ratings helped touch off the financial crisis, the nation's largest ratings agency, Standard & Poor's, is winning business again by offering more favorable ratings, the New York Times DealBook blog reported today. S&P has been giving higher grades than its big rivals to certain mortgage-backed securities just as Wall Street is eagerly trying to revive the market for these investments, according to an analysis conducted for the New York Times by Commercial Mortgage Alert, which collects data on the industry. S&P's chase for business is notable because it is fighting a government lawsuit accusing it of similar action that occurred before the financial crisis. As the company battles those accusations, industry participants say that it has once again been moving to capture business by offering Wall Street underwriters higher ratings than other agencies will offer. Banks have shown a new willingness to hire S&P to rate their bonds and have tripled its market share in the first half of 2013. Its biggest rivals have been much less likely to give higher ratings. Read more.

SEC POISED TO ACT ON CEO PAY

A rule requiring public companies to disclose how much their chief executives are paid compared to average workers will be issued "in the near future," according to the chairwoman of the Securities and Exchange Commission (SEC), The Hill reported yesterday. "I hope that it is completed in the next month or two," Mary Jo White said at a Senate Banking Committee hearing on Tuesday. The rule was ordered under the Dodd-Frank Act in 2010, but has yet to be issued by the SEC. Democrats and union leaders who back the rule say it would help workers negotiate their salaries and expose patterns of income inequality. Business groups have opposed the requirement as overly burdensome, and worry that it could end up hurting companies by diverting money and resources to calculating the total benefits, overtime and other pay measures for all workers. Read more.

IN CASE YOU MISSED IT - abiLIVE WEBINAR DISCUSSING § 1111(b) ELECTION, PLAN FEASIBILITY AND CRAMDOWN ISSUES RECORDING IS NOW AVAILABLE!

If you were not able to attend ABI's recent abiLIVE webinar examining § 1111(b), a recording of the program is now available for downloading! Utilizing a case study, ABI's panel of experts explored the issues surrounding a lender's decision on whether or not to make an election under § 1111(b), plan feasibility and voting. The abiLIVE panel also walked attendees through the necessary mathematical analyses used to examine these issues. The 90-minute recording is available for the special price of $75 and can be purchased here.

abiLIVE WEBINAR ON AUGUST 20: HOW WILL THE NEW U.S. TRUSTEE FEE GUIDELINES IMPACT YOU?

The new U.S. Trustee Fee Guidelines will affect all attorneys and firms who work on larger chapter 11 cases filed on or after Nov. 1. ABI's Ethics & Professional Compensation Committee will present a panel of experts, including Clifford J. White, the director of the U.S. Trustee Program, to discuss some of the ways the new guidelines could change day-to-day operations in firms, issues relating to the new market rate benchmarks, and how these changes might alter insolvency practice. Register today to hear government, attorney and academic perspectives speak on this important and timely topic.

ABI GOLF TOUR UNDERWAY; NEXT STOP IS THE MID-ATLANTIC BANKRUPTCY WORKSHOP NEXT WEEK

The 5th stop for the ABI Golf Tour is the Hershey Country Club, in conjunction with next week's Mid-Atlantic Bankruptcy Workshop. Final scoring to win the Great American Cup — sponsored by Great American Group — is based on your top three scores at seven scheduled ABI events, so play as many as you can before the tour wraps up at the Winter Leadership Conference in December. See the Tour page for details and course descriptions. The ABI Golf Tour combines networking with fun competition, as golfers "play their own ball." Including your handicap means everyone has an equal chance to compete for the glory of being crowned ABI's top golfer of 2013! A 22-handicapper won the tour event last week at Amelia Island, Fla.! There's no charge to register or participate in the Tour.

ABI IN-DEPTH

ASSOCIATES: ABI'S NUTS & BOLTS ONLINE PROGRAMS HELP YOU HONE YOUR SKILLS WHILE SAVING ON CLE!

Associates looking to sharpen their bankruptcy knowledge should take advantage of ABI's special offer of combining general, business or consumer Nuts & Bolts online programs. Each program features an outstanding faculty of judges and practitioners explaining the fundamentals of bankruptcy, offering procedures and strategies tailored for both consumer and business attorneys. Click here to get the CLE you need at a great low price!

NEW CASE SUMMARY ON VOLO: THE WHITE FAMILY COMPANIES INC. V. SLONE (IN RE DAYTON TITLE AGENCY INC.; 6TH CIR.)

Summarized by Thomas DeCarlo

The Sixth Circuit ruled that funds constitute property of the debtor at the time of transfer for purposes of avoiding a fraudulent transfer. Provisional credit by the bank for a check deposited by the debtor to hold in trust for a third party amounted to a loan to the debtor when deposited check bounced. As the third party never actually conveyed any money to the debtor, there was nothing for the debtor to hold in trust.

There are more than 900 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: MERCHANTS SCORE A WIN IN SWIPE FEE WAR

The Bankruptcy Blog Exchange is a free ABI service that tracks 35 bankruptcy-related blogs. A recent blog post examines a federal judge's ruling that overturned the Federal Reserve's rule on debit card swipe fee caps, effectively stating that the central bank had set the caps too high.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

A class of claims should not be considered impaired for purposes of § 1129(a)(10) if the impairment results from the plan proponents' exercise of discretion (i.e., artificial impairment) and not driven by economic need. (In re Village at Camp Bowie I LP).

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

INSOL INTERNATIONAL

INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 43 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

Have a Twitter, Facebook or LinkedIn Account?

Join our networks to expand yours.

  

 

NEXT EVENT:

 

 

MA 2013
Register Today!

 

 

COMING UP

 

 

abiLIVE WEBINAR:

abiLIVEAugust
Register Today!

 

 

SW 2013
Register Today!

 

 

NYIC Golf Tournament 2013
Register Today!

 

 

Endowment Baseball 2013
Register Today!

 

 

NYU 2013
Register Today!

 

 

abiLIVE WEBINAR:

abiLIVESeptember
Register Today!

 

 

VFB2013
Register Today!

 

 

MW2013
Register Today!

 

 

Endowment Football 2013
Register Today!

 

 

Mid-Level PDP 2013
Register Today!

 

 

Detroit
Register Today!

 

 

Detroit
Register Today!

 

 

CFRP13
Register Today!

 

 

CRC13
Register Today!

 

 

ACBPIA13
Register Today!

 

 

Detroit
Register Today!

 

 

Detroit
Register Today!

 

 

40-Hour Mediation Program
Register Today!

 
   
  CALENDAR OF EVENTS
 

2013

August
- Mid-Atlantic Bankruptcy Workshop
    August 8-10, 2013 | Hershey, Pa.
- abiLIVE Webinar: How Will the New U.S. Trustee Fee Guidelines Impact You?
     August 20, 2013
- Southwest Bankruptcy Conference
    August 22-24, 2013 | Incline Village, Nev.

September
- ABI Endowment Golf & Tennis Outing
    Sept. 10, 2013 | Maplewood, N.J.
- ABI Endowment Baseball Game
    Sept. 12, 2013 | Baltimore, Md.
- Lawrence P. King and Charles Seligson Workshop on Bankruptcy & Business Reorganization
    Sept. 18-19, 2013 | New York
- abiLIVE Webinar: Complex Requirements and Ethical Duties of Representing Consumer Debtors
     Sept. 24, 2013
- Bankruptcy 2013: Views from the Bench
    Sept. 27, 2013 | Washington, D.C.

October
- Midwestern Bankruptcy Institute Program and Midwestern Consumer Forum
    Oct. 4, 2013 | Kansas City, Mo.
- Professional Development Program
    Oct. 11, 2013 | New York, N.Y.


  


- Chicago Consumer Bankruptcy Conference
    Oct. 14, 2013 | Chicago, Ill.
- International Insolvency & Restructuring Symposium
    Oct. 25, 2013 | Berlin, Germany

November
- Complex Financial Restructuring Program
   Nov. 7, 2013 | Philadelphia, Pa.
- Corporate Restructuring Competition
   Nov. 7-8, 2013 | Philadelphia, Pa.
- Austin Advanced Consumer Bankruptcy Practice Institute
   Nov. 10-12, 2013 | Austin, Texas
- Detroit Consumer Bankruptcy Conference
   Nov. 11, 2013 | Detroit, Mich.

December
- Winter Leadership Conference
    Dec. 5-7, 2013 | Rancho Palos Verdes, Calif.
- ABI/St. John’s Bankruptcy Mediation Training
    Dec. 8-12, 2013 | New York


 
 
ABI BookstoreABI Endowment Fund ABI Endowment Fund
 

ABI Bankruptcy Brief Is Detroits Bankruptcy a Bid to Bust Unions

ABI Bankruptcy Brief | October 10, 2013
 
  

October 10, 2013

 
home  |  newsroom  |  chart of the day  |  blogs  |  bankruptcy code and rules  |  statistics  |  legislative news  |  volo
  NEWS AND ANALYSIS   

COMMENTARY: IS DETROIT’S BANKRUPTCY A BID TO BUST UNIONS?

While Detroit’s bankruptcy has often been portrayed as “a cautionary tale about what can happen when a once great American city is run into the ground by poor leadership and pensions run amok,” Paul Alexander, a former Time reporter who now blogs for the Huffington Post suggests in a commentary that it is “yet another battle between Republicans and public employee unions.” Alexander bases his analysis on the close political ties between Michigan Gov. Rick Snyder and conservative donors, including the DeVos family and the Koch brothers, who strongly supported the state’s right-to-work legislation pushed through by Snyder last December. That effort prompted AFL-CIO president Richard Trumka to label Gov. Snyder a "puppet of extreme donors" whose actions "will diminish the voice of every working man and woman in Michigan." According to Alexander, critics contend Snyder believes that police, fire, and city retirees are “unsecured creditors, like bondholders, under U.S. bankruptcy law and aren't exempt from potential cuts.” Those 20,000 retired workers are owed $3.5 billion in pensions and $5.7 billion in health coverage, a significant portion of Detroit’s estimated $18 billion debt. Should they be forced, through bankruptcy, to surrender up to 90 percent of that money, as some union leaders estimate, it would represent, “a devastating blow to organized labor not just in Detroit but across the state and country,” according to Alexander. On September 19, Bankruptcy Judge Steven Rhodes, who is overseeing Detroit’s chapter 9 case, heard 45 of 109 individuals who filed papers to be allowed to speak to the court and explain why the bankruptcy should not be allowed to proceed. After listening to the testimony, which Judge Rhodes characterized as “extraordinary,” he was so moved, Alexander writes, that “he ordered Orr and Governor Snyder, who were not present in court, to listen to a recording of the hearing. ‘I think,’ Rhodes said from the bench, ‘democracy demands nothing less than they personally listen to what the citizens of this city said in this court today.’ ” Click here to read the full commentary.

GAO TO DECIDE QUESTION OF “TOO BIG TO FAIL”

Big banks argue that government subsidies, such as those that limited the meltdown of large financial institutions during fall of 2008 and early 2009, have been curtailed or even eliminated by the Dodd-Frank financial reform act passed in 2010. Now, according to Simon Johnson, writing on the New York Times Economix blog, a forthcoming assessment by the General Accounting Office will pass official judgment on the question. But Johnson suggests that the GAO would do well to look past the opinions of such insider banking groups as the Clearing House Association, and more toward independent researchers; both groups were represented at a conference on “too big to fail” banks last week at New York University. Johnson cites one of the independent papers, which concluded that “large institutions could borrow more cheaply from private lenders, presumably because the implicit government guarantee lowered the credit risk for those firms relative to their smaller competitors. They also find that ‘passage of Dodd-Frank did not eliminate expectations of government support’ — meaning this advantage in credit markets persists in the data.” Another paper found that, “at the peak of the crisis, the risk that the financial sector would collapse as a whole was substantially underpriced relative to the risk of failure of individual financial firms. This may sound technical but it is actually quite profound; it means the markets expected a rescue of some form at the systemwide level.” Johnson concedes that the GAO report could still support the banks’ contention that government subsidies have been eliminated, but includes a cautionary note in the form of an Upton Sinclair quotation: “It is difficult to get a man to understand something when his salary depends upon his not understanding it.” Read more.

PETTERS FALLOUT ENGULFS TWO POWERHOUSE LAW FIRMS

Bankruptcy Judge Paul G. Hyman, Jr. (S.D.Fl.) has green-lighted a massive Ponzi scheme lawsuit against one of the biggest law firms in the United States, Fulbright & Jaworski, according to an article in yesterday’s South Florida Business Journal. The ruling opens the way for a $718 million malpractice suit by Palm Beach Finance, which claims that Fulbright failed to advise them to file for bankruptcy following the explosion of the Tom Petters Ponzi scheme. The judge may also block Fulbright from recovering the fees it tried to charge Palm Beach Finance, which was heavily tied to Petters’ business. After Petters’ fraud was exposed in October 2008, Palm Beach delayed filing for bankruptcy for more than a year, at which time it had amassed debts of $1 billion. According to the South Florida Business Journal, two Miami powerhouse bankruptcy firms are involved. Michael Budwick of Meland Russin & Budwick represents the fund receiver Barry Mukamal; Scott Baena of Bilzin Sumberg represents Fulbright. Petters, meanwhile, is serving 50 years in prison for running the third-largest Ponzi scheme in the nation. Read more. (Subscription required.)

GOVERNMENT SHUTDOWN DELAYS MEDICAL SUPPLIER’S BANKRUPTCY EXIT

As Congress and the White House fitfully discuss ways to avert the country’s debt crisis and end the stalemate that has shuttered the government for more than a week, the shutdown has been blamed for the disruption of a California bankruptcy case. Lawyers for the Centers for Medicare and Medicaid Services persuaded Bankruptcy Judge Mark Wallace on Monday to delay a court hearing that could have allowed a California medical supplier, American Medical Technologies, to get out of chapter 11 protection. In papers filed with the U.S. Bankruptcy Court in Santa Ana, Calif., U.S. Department of Justice attorney Seth Shapiro said that CMS employees, furloughed by the government shutdown, are prohibited from working, and thus can’t evaluate AMT’s plan to repay the $76 million that the agency says it’s owed. “It’s not [AMT’s] fault if the government can’t keep its house in order,” said Scotta McFarland, AMT’s attorney, during Monday’s hearing after pointing out that Justice Department attorneys have the power to ask for special permission to keep working on cases. Judge Wallace, who reset the company’s bankruptcy-exit hearing to Nov. 20 from Oct. 21, hinted that he wouldn’t clear the company to leave chapter 11 unless its biggest debts are worked out in a repayment plan. Under AMT’s restructuring plan, the company’s founder and president, Gerald Del Signore, agreed to contribute several million dollars to help the company pay off its debts. Medicare payments make up more than 90 percent of AMT’s revenue. The company filed for chapter 11 protection in February 2012 amid a dispute with a Medicare-payment contractor, which halted payments to AMT during an investigation into whether the company improperly billed for extra wound care supplies. Click here to read the full article. Read more.

NEW FISCAL SURVEY FINDS NATION’S CITIES STRUGGLING, BUT SURVIVING

Pressure from soaring health care and pension costs, coupled with cuts in state and federal aid, are undermining the improving but still shaky financial health of the nation’s cities, according to a report released today, the Washington Post reported. The National League of Cities, which advocates on behalf of 1,700 member cities, said that its annual survey of local finance officers reflects a slowly brightening financial picture for many cities. Still, the survey found that cities continue to suffer the effects of the recent economic downturn, as well as structural problems, that are making it difficult for them to pay for core services such as public safety. The survey found that after six straight years of decline, cities this year reported a small increase in general fund revenues — the locally generated taxes, fees and outside aid that local officials have wide discretion to spend on services from public safety to parks. Sales and income tax revenues are up, but property taxes continue to decline because they typically reflect property values as much as several years before their collections. For cities, that means that their tax revenues are still depressed by the steep drop in property values that accompanied the downturn. Despite the problems, the report finds that few cities are facing the extreme pressure that since 2011 has caused Jefferson County, Ala., Stockton and San Bernardino, Calif., and Detroit to topple into bankruptcy. Overall, nearly three in four of the 350 city finance officers surveyed reported that their cities are better able to meet financial needs in 2013 than they were in 2012. But many also reported that they have been forced to squeeze jobs out of the budget, reduce health care and pension benefits and raise fees, and sometimes taxes, to make ends meet. Read more.

ABI LAUNCHES SIXTH ANNUAL WRITING COMPETITION FOR LAW STUDENTS

Law school students are invited to submit a paper between now and March 4, 2014 for ABI's Sixth Annual Bankruptcy Law Student Writing Competition. ABI will extend a complimentary one-year membership to all students who participate in this year's competition. Eligible submissions should focus on current issues regarding bankruptcy jurisdiction, bankruptcy litigation, or evidence issues in bankruptcy cases or proceedings. The first-place winner, sponsored by Invotex Group, Inc., will receive a cash prize of $2,000 and publication of his or her paper in the ABI Journal. The second-place winner, sponsored by Jenner & Block LLP, will receive a cash prize of $1,250 and publication of his or her paper in an ABI committee newsletter. The third-place winner, sponsored by Thompson & Knight LLP, will receive a cash prize of $750 plus publication of his or her paper in an ABI committee newsletter. For competition participation and submission guidelines, please visit http://papers.abi.org.

FIRST ABIWORKSHOP PROGRAM LOOKS AT RISKY TIMES FOR SECURED LENDERS AND SERVICERS! ATTEND IN PERSON OR VIA LIVE WEBSTREAM

You will not want to miss the abiWorkshops series' inaugural program, "Risky Times for Secured Lenders and Servicers." The program is cosponsored by TMA (Chesapeake), IWIRC (D.C./Greater Maryland) and RMA (Potomac), and will be held on Nov. 6 from 9 a.m. to 3 p.m. ET in the ABI Headquarters Conference Center in Alexandria, Va. The abiWorkshops series provides attendees two great ways of participating: You can register to attend in person at the ABI Conference Center, or you can participate via a live webstream! Topics that will be covered on the Nov. 6 program include:

- Living with the New CFPB Mortgage Servicing Rules
- Business Lending: Navigating What Lies Ahead
- Business Lending: Recent Legal Developments

For more information or to register for the "Risky Times for Secured Lenders and Servicers" abiWorkshop on Nov. 6, please click here.

EXPERTS TO EXAMINE STUDENT LENDING AND BANKRUPTCY AT ABI WORKSHOP PROGRAM ON NOV. 15

Experts will tackle the hot topic of student lending issues in bankruptcy on the abiWorkshops series' new program, "You Can't Discharge Student Loans in Bankruptcy - Or Can You?" The program will be held on Nov. 15 from 9 a.m. to 3 p.m. ET in the ABI Headquarters Conference Center in Alexandria, Va. The abiWorkshops series provides attendees two great ways of participating: You can register to attend in person at the ABI Conference Center, or you can participate via a live webstream! Topics that will be covered on the Nov. 15 program include:

- Student Lending Today: Who Borrows, How Much, Delinquency & Default Trends
- Repayment Options: Income Based Repayment and New Lender/Servicer Programs
- Litigation under Sect. 523(a)(8): What Proofs Are Needed? Evidence Demonstration

For more information or to register for the "You Can't Discharge Student Loans in Bankruptcy - Or Can You?" abiWorkshop on Nov. 15, please click here.

ABI GOLF TOUR UNDERWAY; LAST STOP FOR 2013 IS WINTER LEADERSHIP CONFERENCE IN DECEMBER

The 7th and final stop for the 2013 ABI Golf Tour is on Dec. 5 at the Trump National Golf Club, held in conjunction with ABI’s Winter Leadership Conference. Final scoring to win the Great American Cup — sponsored by Great American Group — is based on your top three scores from the seven ABI events. See the Tour page for details and course descriptions. The ABI Golf Tour combines networking with fun competition, as golfers "play their own ball." Including your handicap means everyone has an equal chance to compete for the glory of being crowned ABI's top golfer of 2013! A 22-handicapper won the tour event at July’s Southeast Bankruptcy Workshop. There's no charge to register or participate in the Tour.

ABI IN-DEPTH

NEW CASE SUMMARY ON VOLO: ONYEABOR V. CENTENNIAL POINT OWNERS ASSOCIATION (IN RE ONYEABOR) (10TH CIR.)

Summarized by Steven T. Mulligan of Bieging Shapiro & Barber LLP

he circuit court ruled that conversion is appropriate where a plan makes no provision for repayment of pre-petition secured claims, where the debtor’s income is insufficient to support her plan or even the appellees’ judgment lien, and where the debtor fails to address the trustee’s objections.

There are more than 1,000 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: FIFTH CIRCUIT NIXES CONSENT IN STERN CASES

The Bankruptcy Blog Exchange is a free ABI service that tracks more than 80 bankruptcy-related blogs. A recent blog post argues that while the CFTC is on hiatus during the shutdown, the industry should consider the damage that might be done to a market that has become an integral part of banking.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

Does the bankruptcy court's Section 105 power enable it to surcharge the debtor's exempt property?

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

INSOL INTERNATIONAL

INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 43 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

Have a Twitter, Facebook or LinkedIn Account?

Join our networks to expand yours.

  

 

FRIDAY:

 

 

Mid-Level PDP 2013
Register Today!

 

 

 

COMING UP

 

 

 

Detroit
Register Today!

 

 

 

Detroit
Register Today!

 

 

 

CFRP13
Register Today!

 

 

 

CFRP13
Register Today!

 

 

 

CRC13
Register Today!

 

 

 

ACBPIA13
Register Today!

 

 

 

Detroit
Register Today!

 

 

 

abiWorkshop_StudentDebt
Register Today!

 

 

 

Delaware
Register Today!

 

 

 

WLC
Register Today!

 

 

 

Western Consumer Bankruptcy Conference
Register Today!

 

 

 

Rocky Mountain Bankruptcy Conference
Register Today!

 
   
  CALENDAR OF EVENTS
 

2013

October
- Professional Development Program
    Oct. 11, 2013 | New York, N.Y.
- Chicago Consumer Bankruptcy Conference
    Oct. 14, 2013 | Chicago, Ill.
- International Insolvency & Restructuring Symposium
    Oct. 25, 2013 | Berlin, Germany

November
- abiWorkshop: "Risky Times for Secured Lenders and Servicers"
   Nov. 6, 2013 | Alexandria, Va.
- Complex Financial Restructuring Program
   Nov. 7, 2013 | Philadelphia, Pa.
- Corporate Restructuring Competition
   Nov. 7-8, 2013 | Philadelphia, Pa.
- Austin Advanced Consumer Bankruptcy Practice Institute
   Nov. 10-12, 2013 | Austin, Texas
- Detroit Consumer Bankruptcy Conference
   Nov. 11, 2013 | Detroit, Mich.

  

 


-abiWorkshop: "You Can't Discharge Student Loans in Bankruptcy - Or Can You?"
   Nov. 15, 2013 | Alexandria, Va.
- Delaware Views from the Bench
   Nov. 25, 2013 | Wilmington, Del.

December
- Winter Leadership Conference
    Dec. 5-7, 2013 | Rancho Palos Verdes, Calif.
- ABI/St. John’s Bankruptcy Mediation Training
    Dec. 8-12, 2013 | New York

January
- Western Consumer Bankruptcy Conference
    Jan. 20, 2014 | Las Vegas, Nev.
- Rocky Mountain Bankruptcy Conference
    Jan. 23-24, 2014 | Denver, Colo.

 

 
 
ABI BookstoreABI Endowment Fund ABI Endowment Fund
 

 


 To unsubscribe click here or send a blank email to %%email.unsub%%.

American Bankruptcy Institute
66 Canal Center Plaza, Suite 600
Alexandria, VA 22314
(703) 739-0800

Pages