courtroomA woman indicted on bankruptcy fraud charges is also charged with intentionally setting a retail store on fire.  Debra Fowler Kessinger, 57, was recently indicted in connection with a fire that took place in 2011 in Warren Country Kentucky. Kessinger was formally charged by a grand federal jury in connection to a fire that destroyed […]

(posted 4 hours 7 min ago)

By buying more goods and services from businesses rooted in diverse communities, banks can build bridges with those communities and expand their customer base. And by expanding their networks of potential suppliers, banks can obtain better quality services at lower prices.

(posted 4 hours 26 min ago)

Cooley’s Corporate Restructuring & Bankruptcy Group was selected by the official committee of Brookstone’s unsecured creditors as its lead counsel in Brookstone’s chapter 11 proceedings, which began on April 3, 2014.  Brookstone, the specialty retailer best known for its massage chairs and travel electronics, filed for chapter 11 protection in Wilmington, Delaware with a plan to sell its business to the owner of Spencer’s, another national specialty retailer, for $147 million.  Spencer’s will serve as the stalking horse plan sponsor in a process supported by a majority of Brookstone’s lenders.  The Spencer’s offer would be sufficient to pay out Brookstone’s first-lien debt and a portion of its second-lien debt, leaving a substantial deficiency claim that would swamp trade creditors in the general unsecured claims pool.  As it entered bankruptcy protection, Brookstone had approximately 240 store locations in malls and airports across the U.S., and the Spencer’s transaction would see most of those locations remain open for business.
In connection with the proposed sale and restructuring process, Brookstone has requested approval for a postpetition financing package that would pay out its first-lien lenders and “roll-up” $30 million of Brookstone’s $137.3 million in second-lien debt. 

Absolute Priority
(posted 6 hours 36 min ago)

A group of businesses owed more than $2.5 million by Washington, D.C.’s Specialty Hospital is seeking to push the troubled health-care facility into bankruptcy.
Creditors of Specialty Hospital of Washington LLC, which runs the city’s only long-term acute-care hospitals, Wednesday filed an involuntary bankruptcy petition against the facility in U.S. Bankruptcy Court in Wilmington, Del.
The creditors, owed about $2.7 million, include hospital landlord Capitol Hill Group and local facility service providers CropMetcalfe CroppMetcalfe and JFW Services.
That’s just a fraction of some $50 million in corporate debt, unpaid taxes and overdue utility bills facing the hospital, according to the Washington Business Journal. And that doesn’t include another $11.4 million in dispute with the D.C. Medicaid program, the paper reported.
The health-care provider operates two long-term care facilities in the Capitol Hill and Southwest sections of the city as well as two nursing homes.
Specialty Hospital of Washington spokeswoman Lisa Proctor declined to comment on the creditors bid to force the hospital into bankruptcy. Representatives of its parent, Specialty Hospitals of America, couldn’t be reached for comment. Bankruptcy Beat
(posted 6 hours 39 min ago)

“Break-up fees,” a common deal-protection construct, both inside and outside of chapter 11, are designed to compensate an initial bidder or prospective lender for the time and money invested in formulating and documenting a transaction and establishing a “floor” for potential terms.  In recent years, however, courts have been critical of break-up fees and other bidding protections on the basis that such protections are unnecessary to safeguard lenders and may discourage debtors from exploring higher and better offers for the benefit of the estate and creditors.  So-called “stalking horse bidders” and break-up fees took yet another hit, in a recent decision, In re C & K Market, Inc., by the United States Bankruptcy Court for the District of Oregon, which ruled that a break-up fee for a prospective debtor-in-possession (DIP) financing lender was a prepetition claim not entitled to administrative expense priority.

(posted 7 hours 6 min ago)
In this June 20, 2013 photo, Alfred Almada, of West Hartford, Conn., practices at the Connecticut Amateur Jai Alai in Berlin, Conn.
Erin Covey/Associated Press

News of a successful bankruptcy auction sent shares of Florida Gaming Corp. soaring to $1.25 a share, only to spike again after a tip from an anonymous blogger suggested that equity holders might receive a substantial distribution.  The price plummeted, however, after an SEC filing on April 7 confirmed that shareholders should not expect any proceeds resulting from the auction. Bankruptcy Beat
(posted 7 hours 48 min ago)

Quantason LLC, which is developing an advanced ultrasound to screen for breast cancer, filed for Chapter 11 protection Wednesday with the hopes of finding a buyer.
In court papers, the venture capital-backed Quantason says its “precarious financial position” drove its decision to seek a quick sale in bankruptcy. The Los Angeles company is proposing that would-be buyers submit their bids by June 2 ahead of a June 9 auction.
Founded in 2009, Quantason is developing technology to screen for and prevent breast cancer. It hopes to enhance existing ultrasound 2D and 3D imaging capabilities to achieve higher detection sensitivity, which would allow users to find high-risk breast lesions earlier. These lesions, called microcalcifications, are strong predictors of the presence of breast cancer, Quantason says. Bankruptcy Beat
(posted 8 hours 30 min ago)

On Monday, lawyers for NML and Argentina (with a cameo by lawyers for the US Department of Justice) were before the Supreme Court arguing about the scope of a US court's power to order discovery in aid of execution. (Here's the transcript; here's a good summary of the argument itself.) This case is about the proper interpretation of the Foreign Sovereign Immunities Act (FSIA) and is unrelated to the pari passu litigation. The question, in a nutshell, is whether a creditor that holds a money judgment from a US court can obtain broad discovery into the nature and location of the sovereign's assets worldwide. Bear in mind that the US court can only enforce its judgment by allowing the creditor to execute on commercial assets located in the United States; it has no power to reach assets overseas. But NML wants to use the information it uncovers during discovery to identify assets in other countries that might be subject to seizure under the law of those countries. Let's call this the "discovery case" to distinguish it from the "pari passu" case.

Credit Slips
(posted 8 hours 54 min ago)

Those in the industry say customers aren't asking for specific same-day capabilities. Could it be that they aren't asking because they are finding solutions elsewhere?

(posted 10 hours 13 sec ago)

Protecting Life Insurance When filing a chapter 7 bankruptcy, you are allowed to protect a certain amount of personal property. One of those items of personal property is life insurance. Life insurance is treated two different ways when filing bankruptcy. The first involves term life insurance. Term life insurance provides for a death benefit. What+ Read MoreThe post Is My Life Insurance Policy Protected IF I File Bankruptcy? appeared first on David M. Siegel.

(posted 10 hours 34 min ago)