Patrick Semansky/Associated Press

Kentucky miners who were digging for coal late last year hit an unwelcome surprise: Someone else beat them to it.
U.S. Coal Corp. workers who began scraping off the surface of some eastern Kentucky land quickly realized that the earth below had already been carved out, probably sometime in the 1930s or 1940s. The miners would be extracting far less coal than they thought.
U.S. Coal Chief Executive John Collins said that the discovery was “one more thing” that added to the company’s financial headache as the coal-mining industry struggles to sell their resource while natural gas remains so cheap.
The company is now in bankruptcy and trying to find a way to repay about $75 million in debt.
Frustrating discoveries like this aren’t unheard of in eastern Kentucky and West Virginia where people have mined underground for more than a hundred years—well before state officials began keeping good records, said Bob Ferriter, a senior mine safety specialist at the Colorado School of Mines.

WSJ.com: Bankruptcy Beat
(posted 1 day 7 hours ago)

A Massachusetts mutual's failure to gain depositor approval for a conversion suggests a way for small towns to push back against the loss of their local banks, according to lawyer Kevin Handly.

BankThink
(posted 1 day 9 hours ago)

Lehman Brothers Holdings Inc. said Thursday that it may seek to sell off some of a multibillion-dollar bankruptcy claim that the failed investment bank holds against its U.S. brokerage arm. The Wall Street Journal has the Daily Bankruptcy Review article here.
(Daily Bankruptcy Review is a daily newsletter with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)
Detroit is going to borrow $275 million in exit financing so it can emerge from Chapter 9 protection, WSJ reports.
WSJ has more on Saab’s Chinese-backed owner’s bankruptcy filing.
Detroit’s bankruptcy judge said bond insurer Syncora might face sanctions for accusing the city’s bankruptcy mediators of bias, the Detroit Free Press reports.

WSJ.com: Bankruptcy Beat
(posted 1 day 10 hours ago)

Editor's note: Morning Scan will not publish on Monday, Sept. 1 in observance of the Labor Day holiday. We'll be back on Tuesday, Sept. 2. Receiving Wide Coverage ...

Was JPMorgan Chase the Only Victim? Seven large banks said Thursday that they had no indication that their systems had been breached in the latest cyber attack on financial institutions, the Wall Street Journal and Financial Times both reported. Bank of America, Wells Fargo, U.S. Bancorp, PNC Financial...

BankThink
(posted 1 day 10 hours ago)

Per www.globalinsolvency.com:

Fri., August 29, 2014  A group representing more than 400 of the world’s largest banks, investors and debt issuers has agreed a plan for dealing with financially stricken countries and their creditors, in a bid to prevent a repeat of the wrangling that has pushed Argentina into default, the Financial Times reported. After months of talks convened by the US Treasury in the wake of Greece’s restructuring, global debt experts will on Friday unveil a new framework that could transform the relationship between critically indebted nations and lenders. Lawsuits filed by creditors against defaulting governments have doubled over the last decade and the changes come at a time when levels of sovereign debt have risen to record highs around the world in the wake of the financial crisis. The fallout from recent defaults reignited calls for an international bankruptcy court, but market participants and Washington authorities favour a voluntary response rather than new statutory mechanisms. The International Capital Market Association, whose members include banks, investors and debt issuers, has created fresh clauses for inclusion in sovereign debt contracts that will give countries the option to bind all investors to decisions agreed by the majority.

The COMI
(posted 1 day 10 hours ago)

Casey v. Rotenberg (In re Kenny G Enterprises, LLC), 512 B.R. 628 (C.D. Cal. 2014) – A Chapter 11 trustee sought to avoid a transfer of property under Section 544 of the Bankruptcy Code that occurred after (1) the bankruptcy petition … Continue reading →

(posted 1 day 13 hours ago)

With all the bankruptcy firms available in the Kenosha, Wisconsin area, how do you know which bankruptcy firm is the best one for you? You do not want to regret hiring the wrong Kenosha bankruptcy attorney. The wrong Kenosha bankruptcy attorney could cost you the bankruptcy approval you desperately need from the bankruptcy trustee. You need to do your homework before signing any dotted lines.
Here are five tips to help you find the best Kenosha Bankruptcy Attorney
find the best Kenosha bankruptcy attorney1. Find a Bankruptcy Attorney. By this we mean finding a Kenosha bankruptcy attorney who only practices in the area of bankruptcy, and a few other similar cases. Many law firms who specialize in personal injury, worker’s compensation, and other legal areas are also handling bankruptcy cases. It’s hard to be an expert in everything, not to mention keeping up with the ever changing bankruptcy law. For this reason, it is wise to avoid law firms that advertise too many practice areas. Bankruptcy should constitute the largest percentage of the

Wynn at Law, LLC
(posted 2 days 3 hours ago)

Thoughts on cramdown and "make whole" call provisions, over at Dealb%k.

Credit Slips
(posted 2 days 3 hours ago)

Crumbs Bake Shop was granted permission to sell itself to Lemonis-Fischer Enterprises in a New Jersey bankruptcy court on Tuesday, August 26th.
Judge Michael Kaplan approved the sale of the famed cupcake chain to Marcus Lemonis, star of CNBC’s “The Profit,” and Fischer Enterprises, which is best known as the owner of frozen treat Dippin’ Dots. The purchase will successfully conclude Crumbs’ Chapter 11 bankruptcy case, annulling $6.5 million in debt, according to the Wall Street Journal.
Crumbs closed all 49 of its locations nationwide in July. About half of those locations will remain closed, but new ownership intends to reopen stores in cities such as New York, Chicago, Washington D.C., Boston and Los Angeles.
Scott Fischer, chief operating officer of Fischer Enterprises, states the stores will still focus on Crumbs’ famed cupcakes, but there are plans to integrate other food brands owned by the Oklahoma based investment company, such as ice cream and popcorn.
Crumbs began searching for a buyer in late 2013, but a $5 million investment from Fischer Enterprises in January 2014 temporarily halted the search. Filings show the company resumed hunting in May after an “out of court restructuring failed to take hold,” as stated by The Wall Street Journal.

Total Bankruptcy
(posted 2 days 5 hours ago)

Patricia Hennelly and Wayne Walker have joined advisory firm CohnReznick, which bought an ownership interest in Mr. Walker’s Philadelphia-based consulting firm, Walker Nell Partners. Mr. Walker, appointed as principal, has experience in turnaround management, corporate restructuring and bankruptcy matters. He is a member of the American Bankruptcy Institute and Turnaround Management Association. Ms. Hennelly, a member of the American Bankruptcy Institute, has joined the firm as a director and has experience in bankruptcy, restructuring, forensic accounting and mergers and acquisitions. She previously was vice president of administration and finance of an academic medical center in Manhattan.
Benjamin Hoch joined law firm Wilson Sonsini Goodrich & Rosati as a partner and will work in the New York office. Mr. Hoch, who most recently chaired Covington & Burling’s bankruptcy and corporate restructuring practice, advises clients in corporate finance and financial restructuring. He’s also worked with clients on inter-creditor disputers and mergers and acquisitions in industries including energy, entertainment, transportation and real estate.

WSJ.com: Bankruptcy Beat
(posted 2 days 6 hours ago)