Businesses with a global footprint require agile, sophisticated counsel possessing in-depth knowledge of the international aspects of bankruptcy and restructuring. The bankruptcy court decision in Suntech Power Holdings highlights the issues of debtor eligibility under the Bankruptcy Code and the appropriate venue for a chapter 15 case of one such global business: a multi-national group of corporations focused on solar energy. In our two-part series, we first turn our spotlight on the court’s ruling that Suntech was eligible to be a debtor under the Bankruptcy Code and that venue was proper in the Southern District of New York because of a bank account established in New York on the eve of the chapter 15 filing. Tomorrow, we will focus on the court’s center of main interests (COMI) analysis, including whether the activities of the foreign administrators transferred COMI from China (where the debtor listed its principal executive offices as being located) to the Cayman Islands (where the provisional liquidation was commenced).
The Cross-Border Proceedings

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Rick Antonoff has joined law firm Blank Rome as a partner with the finance, restructuring and bankruptcy group. Mr. Antonoff, who most recently worked at Clifford Chance, represents secured and unsecured creditors, investors and other parties in bankruptcy cases and out-of-court restructurings. He has worked on such well-known bankruptcy cases as the Los Angeles Dodgers, AMR Corp. and Arcapita Bank. Mr. Antonoff is a member of the American Bankruptcy Institute.
Giorgio Bovenzi has joined the Dentons law firm in New York as a partner in the restructuring, insolvency and bankruptcy group. Mr. Bovenzi has experience in areas including bankruptcy, credit, and cross-border insolvency. He has represented international clients in Chapter 15 bankruptcy cases, including chip maker Elpida Memory Inc. Most recently, Mr. Bovenzi worked at law firm Davis Polk & Wardwell.

WSJ.com: Bankruptcy Beat
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There's little point to Fannie and Freddie's large profits if that money is remitted to the Treasury rather than making the GSEs more financially stable.

BankThink
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Tactical Firearms

A bankrupt gun retailer in suburban Houston that hasn’t been shy about its political views will get a new owner once it emerges from Chapter 11 protection.
A judge has approved a reorganization plan for Tactical Firearms, which filed for bankruptcy in June to stop a bank from foreclosing on its store and shooting range in Katy, Texas.
It is unclear whether the company’s new owner, Texas businessman Steven Coe Wilson, will be as outspoken as current majority owner Jeremy Alcede, who blamed the store’s financial problems on President Barack Obama and others in billboard messages posted outside the store.
Mr. Coe Wilson already owns 30% of Tactical Firearms’ business. Earlier in the case, his lawyers argued that Tactical Firearms shouldn’t be profiled in a reality show, stating that the show’s filming “risks disrupting the [company’s] current retail operations,” which employ about 30 people, according to documents filed in U.S. Bankruptcy Court in Houston.

WSJ.com: Bankruptcy Beat
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It looks like much of December will be spent sitting around the RUFO sickbed, waiting for the clause to expire of natural causes on December 31. The clause, recall, prevents Argentina from "voluntarily" giving holdout creditors a better deal than the one given to restructuring participants. When the RUFO clause expires, we will see whether country officials viewed it as a serious barrier to negotiation or, rather, as a convenient excuse to justify their refusal to negotiate.
In the interim, however, there are some potentially interesting developments on the horizon:

Credit Slips
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Associated Press

People with unpaid medical bills are finding themselves in a “haphazard system” of debt collection, in which some consumers don’t realize they owe money or are still waiting for bills when their debt is sent to a collections agency, a U.S. regulator says.
The Consumer Financial Protection Bureau on Thursday issued a study highlighting concerns about how consumers are treated when their medical bills are sent to collections.
It comes as CFPB officials are working on a proposal for new consumer protections for the debt-collection market.  Those rules, expected to be unveiled next year, are likely to target the kinds of practices criticized by the CFPB.

WSJ.com: Bankruptcy Beat
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Associated Press

Detroit’s Chapter 9 bankruptcy case officially ended Wednesday, a day after the city’s emergency manager resigned, The Wall Street Journal reports.
The closed Revel Casino Hotel is asking a bankruptcy judge to terminate a $110 million deal to sell the boardwalk resort to a Canadian private-equity firm, putting a Florida-based real-estate developer in line to buy the Atlantic City property. WSJ 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.”)

WSJ.com: Bankruptcy Beat
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More robust risk management frameworks and technology infrastructures are at least as important as higher capital standards in preventing another global financial crisis.

BankThink
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In the United States, the term “tax break” is often used pejoratively, as if to imply the inherent unfairness of any regulation that does not tax everyone in exactly the same manner. However, there are valid policy reasons that cause different people to be taxed accordingly. Still, due to the stigma associated with passing ‘tax breaks,’ legislatures do not often publicize them unless they will apply to a wide swath of people. Because of this, it is very likely that you are eligible for tax breaks you may not be aware of.
Credits, Deductions and Exemptions
Under the law, there are many categories of ‘tax break,’ and they all differ in terms of the procedure used to claim them.
A tax credit allows you to subtract a certain amount from the amount of tax you owe the government. New York has several tax credit options, most of which mirror those found on the federal return. The major credit that differs is called the Empire State child tax credit. Many states have tax credits for qualifying children, but the amount of the New York credit is specifically contingent on whether someone has claimed the federal child tax credit as well – if not, the amount of the credit will be significantly less.

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Receiving Wide Coverage ...

Through the Back Door: Democrats are pushing back against the GOP's effort to repeal a Dodd-Frank derivatives rule by slipping the change into the government spending bill slated for a vote today. Analysis in the New York Times and Wall Street Journal suggests that getting rid of the rule would be a bad idea Â-- but not for the obvious reasons. The provision obliges banks to move a small percentage of derivatives...

BankThink
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