Fashion is risky business. Who knows what works? In the investment circles, buying stocks or bonds of a company that sells modish products is referred to as taking on "fashion risk". Rightfully so, because many of them fail, with the most recent example being Coldwater Creek. In this post, I will use Coldwater Creek as a case study for some of the possible pitfalls for an apparel retailer and discuss strategies for convalescence.
Coldwater Creek, a specialty clothing retailer, filed for bankruptcy on April 11. According to the recent liquidation plan, all term loan, priority and secured claims will be paid in full. Unsecured claims would recover an estimated 4.43%. TheDeal.com

(posted 6 hours 50 min ago)

It’s not one of the multibillion-dollar settlements or multimillion-dollar jury awards designed to spur reform of such allegedly abusive mortgage-servicing practices as falsified court documents, improper fees and other misconduct. But a recent ruling from a Delaware judge is a step forward for people making a last stand in bankruptcy to hang on to their homes, one attorney says.
Judge Brendan Shannon of the U.S. Bankruptcy Court in Wilmington, Del., on Friday ordered Ocwen Loan Servicing LLC to pay the fees and costs of a Delaware couple’s bankruptcy on the grounds that Ocwen’s “unfounded and incorrect assertion” that they had defaulted on their mortgage loan was what drove them to seek court protection.
Richard J. and Mary Ann Williams were never materially behind on their mortgage payments, the judge said, but they were pushed into bankruptcy to keep Ocwen from taking their home in foreclosure.
“Basically, they were kicking two older people out of their home for no reason whatsoever other than they think they can get away with it,” was attorney Peter K. Schaeffer Jr.’s take on his clients’ plight. It still happens, even after a series of reforms designed to rein in abuses by mortgage lenders and loan services, he said.
“Ocwen is reviewing the court’s ruling to determine the company’s course of action,” said Margaret Popper, spokeswoman for the company.

WSJ.com: Bankruptcy Beat
(posted 10 hours 21 min ago)

Click here to see the deals added to the ODD and the MDD from the week of July 15.

(posted 13 hours 20 min ago)

On Saturday, the New York Times published an excellent article exposing the tactics and methods of the subprime automobile lending industry. The link to the article is here. Generating huge profits for the buyers of these packaged loan bundles, consumers are facing the same outrageous tactics that the mortgage lending industry used that led to the 2008 meltdown. The NYT correctly recognized:
That ability to contain risk while charging fees and high interest rates has generated rich profits for the lenders and those who buy the debt. But it often comes at the expense of low-income Americans who are still trying to dig out from the depths of the recession, according to the interviews with legal aid lawyers and officials from the Federal Trade Commission and the Consumer Financial Protection Bureau, as well as state prosecutors.
Either enough time has passed to make us forget, or else we learned very little from the economic crater of 2008. The NYT went on to recognize:

(posted 14 hours 22 min ago)

Weil Partner, Gary Holtzer, will be participating on a panel at the upcoming Views from the Bench conference to be held on Friday, October 24th, at the Georgetown University Law Center, in Washington, D.C.
For additional information on the event, please visit http://www.abiworld.org.

(posted 14 hours 26 min ago)

Weil Partner, Harvey Miller, will participate on a panel to discuss: Merchants of Venice: The Ethics of Debt Insolvency at the upcoming National Conference of Jewish Lawyers, being held at the Palmer House Hilton, 17 East Monroe Street, Chicago, Illinois on Wednesday, August 6, 2014.
For additional information on the conference and schedule, please visit www.JewishLawConference.com.
 

(posted 14 hours 31 min ago)

People who lack easy and affordable access to traditional bank accounts can benefit from cryptocurrency services that allow them save on remittance fees, pay bills on time and stay liquid.

BankThink
(posted 14 hours 39 min ago)

In “RECOMMENDED READING: The Lender Made the Borrower Waive Its Right to File Bankruptcy – Enforceable?” the Editorial Staff of Commercial Bankruptcy Alternatives introduces readers to  a detailed discussion by attorneys Isaac Pachulski and Cia H. Markle on the enforceability of waivers of bankruptcy rights – which can take several forms – imposed upon borrowers in lending documents prepared by lenders. Click here or visit www.commercialbankruptcyalternatives.com to read more.

(posted 14 hours 45 min ago)

One topic we regularly write about on the Bankruptcy Blog is releases – especially third-party releases. In fact, as recently as Thursday, we wrote about third-party releases. The topic of third-party releases is often controversial, and circuits disagree about the extent to which they are permissible, if at all. In a recent memorandum opinion confirming the chapter 11 plan of drybulk shipper Genco Shipping and its debtor affiliates, the Honorable Sean Lane of the United States Bankruptcy Court for the Southern District of New York in In re Genco Shipping & Trading Limited, et. al. waded into the controversy by considering the appropriateness of third-party releases – and non-consensual ones at that.
Background

(posted 15 hours 8 min ago)