Dubai's shipyard operator Drydocks World signed a deal Wednesday to form a joint venture for its Asian operations with Singapore's Kuok Group as it tries to close a $2.2 billion debt restructuring, according to The Seattle Times:

The COMI
(posted 1 year 41 weeks ago)

Cadwalader attorneys Peter Friedman, Doug Mintz and Josh Brant, joined by Morgan Stanley Executive Director Colin Adams, recently addressed the Loan Syndications and Trading Association and discussed their views on the 11th Circuit's recent controversial TOUSA decision upholding a bankruptcy court's decision finding that certain loans and liens constituted fraudulent transfers. Continue reading →

Restructuring Review Blog
(posted 1 year 41 weeks ago)

On May 25, 2012, Judge Allan L. Gropper of the United States Bankruptcy Court for the Southern District of New York approved a motion to compel the production of certain documents under section 1521 of the Bankruptcy Code. In his decision, Judge Gropper also suggested that the broad discovery provisions of Bankruptcy Rule 2004 may apply to chapter 15 discovery requests, but stopped short of making such a ruling. In re Millennium Global Emerging Credit Master Fund Limited, Case No. 11-13171 (ALG), (Bankr. S.D.N.Y May 25, 2012). Continue reading →

Restructuring Review Blog
(posted 1 year 41 weeks ago)
Reuters
Armand Assante attends Kazakhstan Fashion Week in October 2010.

Anyone want Armand Assante as a neighbor?
It could happen, if a bankruptcy judge grants the actor’s request to sell 100 acres of his property in a small New York town.
Court papers show that the would-be buyer is planning to divide the property into at least 40 two-acre lots to build luxury homes like “the Villa Venezia” and “the Bellezza Toscana”—an appropriate theme for the actor who in 2010 was inducted into Toronto’s Italian Walk of Fame.
Four Square Development LLC is offering $2.25 million for the property, though Assante is asking a bankruptcy judge to let him put that to the test at an auction in August. Rival bids would have to exceed Four Square’s bid by at least $25,000, court papers show.

WSJ.com: Bankruptcy Beat
(posted 1 year 41 weeks ago)

Credit enhancement of commercial construction lending has a new, important twist to the traditional (full) payment and performance guaranty: the burn-off events go beyond valuation and debt service thresholds to also include many of the check list items utilized by permanent lenders.  The burn off has a new price.

 
Finally, construction loans are bubbling up for the  ”right” real estate developer in the “right” market, with the “right” product, with the “right” tenants in tow, and with the “right” amount of cash to bake into the project (before the first substantial draw on the construction loan).  And the competition among the lenders often gives the developer (or the key sponsor) the ability to back away from the full payment and performance guaranty – a staple of construction lenders who require it until the project is built, occupied and cash flowing (link to Federal banking materials).
In the “old” economy (pre-2007), the burn-off triggers or bench marks were simple: show a specified appraised value and a healthy debt service coverage.

Tough Times for Lenders
(posted 1 year 41 weeks ago)

A shrinking cash position and mounting liabilities indicate that holders of Patriot Coal Corp.’s convertible bonds would be hard pressed to recover much of their investment in case of a restructuring, credit market watchers say. Read the Daily Bankruptcy Review article here.
(Daily Bankruptcy Review and DBR Small Cap are daily newsletters 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.”)
The Wall Street Journal reports that Moody’s Investors Service lowered its rating on Stockton, Calif., after it voted to suspend some lease and pension bond payments.
Also according to WSJ, the Allied Pilots Association—which represents pilots at American Airlines—said it would put AMR Corp.’s contract offer to a vote.
According to the Associated Press, Bernard Madoff’s brother will plead guilty Friday to conspiracy and to falsifying records as part of Madoff’s massive Ponzi scheme.

WSJ.com: Bankruptcy Beat
(posted 1 year 41 weeks ago)

As per North Chicago bankruptcy attorney David Siegel, not every debt that you are going to list on a Chapter 7 bankruptcy petition is going to be dischargeable or eliminated.  Now, it is true that the overwhelming majority of debts such as medical bills, credit card bills, personal loans, utility bills, rental obligations in the past and things like that are going to be eliminated in the Chapter 7 bankruptcy because they are typically unsecured debts.  However, there are some other debts that are unsecured that are not eliminated such as student loans, recent taxes, parking tickets, child support, maintenance payments and debts incurred by fraud. 
Student loans do have one caveat where they can be eliminated if there is an extreme hardship situation.  In my experience however, I have not seen a case in 20 years where I was able to successfully tell a client that your student loan is going to be eliminated on a hardship provision.  As far as taxes goes, recent taxes are not eliminated but taxes more than three years old are eliminated.  There are some requirements for the tax to be more than three years old and for the return to be filed either on time or not within two years.  So consult with an experienced bankruptcy attorney to learn whether or not your particular debts are going to be dischargeable or non-dischargeable. 

(posted 1 year 41 weeks ago)

High stakes & the USTUsually my posts here have a message or a lesson imbedded.
This one doesn’t, unless readers can help me find it.
But it was a prickly case that resolved well, for unanticipated reasons.  Perhaps, there’s a lesson lurking somewhere here.
The clients were well above median income:  a high tech engineer and a stay at home mom with two children under 9.
The major creditor was the contractor whose remodel of their house caused them ultimately to lose the house.  Rumor said the contractor’s partnership broke up over the botched project as well.
Net, net, net, emotions ran high.
After an unsuccessful attempt at a Chapter 13 case, we dismissed and filed Chapter 7.  The intent was to let the house go.  But the secured debt on the house was an available deduction on B-22, in 7 anyway.
Enter the UST who brought a motion to dismiss under §707(b)(3).  She had a laundry list of disputed expenses, including appropriate care for two children with learning differences and sports and music lessons.  She also seemed offended at a mother who wasn’t in the workforce.

Bankruptcy Mastery
(posted 1 year 41 weeks ago)

What should you look for in a Waukegan bankruptcy attorney?  The first thing you should look for in a bankruptcy attorney is the requisite knowledge, experience and ability to handle a Chapter 7 or Chapter 13 bankruptcy case from start to finish.  You want to investigate that attorney, you want to do some research, and you want to do some background information.  Make sure the person that you are hiring can handle your case from start to finish. 
Don’t simply hire a bankruptcy attorney based on price.  I understand that price is a concern and that you obviously don’t have a lot of money and that’s why you are filing a bankruptcy.  However, if you hire a bankruptcy attorney solely on price, you might find that you don’t get the results that you are looking for.  Bankruptcy has gotten very complicated since the law changed on October 17, 2005.  There are prefiling requirements.  There are post-filing requirements.  There are things that have to be done pursuant to the schedules and pursuant to the Bankruptcy Code that you may not be able to accomplish with a lesser, inexperienced attorney. 

(posted 1 year 41 weeks ago)

During the boom, accounting rules kept banks from building thicker buffers against losses. It was the wrong medicine at the wrong time.

BankThink
(posted 1 year 41 weeks ago)