Posted by Kathy Bazoian Phelps
    Below is a summary of the activity reported for October 2014. The reported stories reflect: 8 guilty pleas or convictions in pending cases; over 158 years of newly imposed sentences for people involved in Ponzi schemes; at least 10 newly discovered schemes involving more $500 million in the aggregate; and an average age of approximately 55 for the alleged Ponzi schemers. Please feel free to post comments about these or other Ponzi schemes that I may have missed. And please remember that I am just relaying what’s in the news, not writing or verifying it.
    Ron Battistella was sentenced to 5 years in prison in connection with a Ponzi scheme that he ran through a car dealership known as Steven’s Creek Auto Mall. Funds from investors were solicited to supposedly purchase vehicles for the showroom, and investors received pink slips for the vehicles as collateral for their investments. The scheme involved more than $1.3 million.

The Ponzi Blog
(posted 8 hours 20 min ago)

Weil Partner Debra Dandeneau is participating in PLI’s Nuts and Bolts of Corporate Bankruptcy 2014, scheduled for December 8-9, 2014 at the new state-of-the-art New York Conference Center at the PLI New York Center, 1177 Avenue of the Americas, New York, New York.
For additional information, and to register for the event visit the PLI website here.

(posted 10 hours 58 min ago)

It is true that filing bankruptcy in some instances will allow you to regain your driver’s license. There are a few scenarios where this is definitely the case. The first of which is driving with no insurance. If you are caught driving with no insurance and your license is subsequently suspended, you can have that+ Read More
The post Reclaiming Your Driver’s License Through Bankruptcy Filing appeared first on David M. Siegel.

(posted 11 hours 21 min ago)

A recap of the informed opinions (and the discussions they generated) on BankThink this week.

(posted 11 hours 22 min ago)

What is Impact Investing? In Episode 8 of Accredited Investor Markets Radio, host Alicia Purdy speaks with Alon Goren, Founder of Invested.In, to explore socially conscious investing. Their discussion will cover different investment opportunities for the socially aware investor, what sort of due diligence is required for these types of investments and how impact investing could change the way aid is rendered in the future.
Learn about a variety of investment options by visiting
Learn more about and Alon Goren by visiting
Or find him here:

(posted 11 hours 37 min ago)

This week on The Broke and the Beautiful, 38 Studios’ bankruptcy trustee reached an important settlement, and Girls Gone Wild’s Hottest Girl in America 2010 is getting an overdue payment. Also, a Formula One racing team filed for bankruptcy. Bankruptcy Beat
(posted 12 hours 19 min ago)

There has been quite a lot of discussion over the past few months about the bench rulings issued by Judge Drain of the Bankruptcy Court for the Southern District of New York in Momentive Performance Materials (see our extensive coverage in four parts here, here, here, and here), in particular his views on determining a cramdown rate of interest for secured creditors. As we noted before, Judge Drain’s bench ruling suggests that the allowed claim of a secured creditor may be satisfied by a long-dated replacement note with a below-market interest rate. Understandably, the specter of future cramdown scenarios has been spooking many a secured creditor.

(posted 13 hours 3 min ago)

On October 17, 2014, Charles M. Forman, the Chapter 7 Trustee (the “Trustee”) for the bankruptcy estate of Satcon Technology Corp., began filing complaints to recover what he contends are avoidable preferences.  The Trustee filed the preference actions in the Delaware Bankruptcy Court and argued that the transfers, or payments, received by various defendants are avoidable and subject to recovery under 11 U.S.C. § 547 and 548 of the United States Bankruptcy Code. This post will look at the Satcon Technology Corp. bankruptcy proceeding, why the company filed for bankruptcy as well as key developments during the course of the bankruptcy proceeding.  In October, 2012, Jason Cornell published a summary of the Satcon Technology Corporation bankruptcy filings in this post.

(posted 14 hours 38 min ago)

Detroit could get a ticket to get out of bankruptcy next Friday.
U.S. Bankruptcy Judge Steven Rhodes will reveal his decision on whether the city’s bankruptcy-exit plan, which cuts $7 billion in debt, is fair.
City leaders and creditors picked through the details of the plan during a trial that lasted several weeks. The plan calls for $275 million in new borrowing and a $1.7 billion reinvestment in removing blighted buildings and boosting police and fire services in the city.
With Judge Rhodes’s approval, city leaders say Detroit could be out of bankruptcy court as soon as Thanksgiving, bringing to close the largest municipal bankruptcy in U.S. history. The 680,000-resident city filed for bankruptcy on July 18, 2013, to try to negotiate cuts to $18 billion in debt, blaming tax revenue that fell after the real-estate crash and the city’s population decline.
Throughout the case, Detroit leaders fought pressure from some Wall Street creditors and others to sell the city’s valuable art collection to repay a greater portion of the city’s debt. Federal mediators helped negotiate a deal to use more than $800 million from private foundations and the state of Michigan to avoid that sale and make the cuts to city’s worker pensions less severe.
Some individual objectors are still challenging the reorganization plan, arguing in part that the city’s emergency manager acted improperly in cutting any benefits to pensioners. Bankruptcy Beat
(posted 15 hours 38 min ago)

This week's Dealb%k is about foreign debtors that file under the US Code, which also just happens to be the subject of a recent paper that my co-author and I have posted online.

Credit Slips
(posted 15 hours 42 min ago)