The feds will decide within six months whether those involved with New Stream Capital LLC will face criminal charges, but until then, founder David Bryson and other ex-employees will be taking the Fifth Amendment and refusing to answer questions about the “hedge fund” operation that dabbled in the life-settlement business, as well as T-shirts, jewelry operations and real estate, court papers say.
The pending criminal investigation means depositions of Bryson and other former leaders, which were set for later this month, can’t be held until next year, according to papers filed by Michael Buenzow, the official administering New Stream’s confirmed Chapter 11 plan.
“As potential witnesses in the pending investigations, it is expected that the former employees will be instructed by their counsel to invoke their Constitutional privilege,” lawyers for New Stream said in Delaware bankruptcy-court papers.
Bryson could not be reached for comment on the prospect of criminal charges, which are not news to anyone following the case. Attorneys for New Stream did not respond to invitations to comment.
New Stream has been under criminal investigation for years, long before it brawled into bankruptcy battling investors who claimed they had been bilked, according to accounts by financial journalist Teri Buhl. The company denied and ducked talk of a probe for a long time, but then the Securities and Exchange Commission spoke up to clue in the judge at the first hearing in New Stream’s bankruptcy, commencing the official spilling of the beans. Bankruptcy Beat
(posted 1 year 46 weeks ago)

Viable restructuring alternatives to bank holding company debt do exist and will open the door to conventional M&A options or attract fresh equity.

(posted 1 year 46 weeks ago)

As I stated in my prior post, another way that you can deal with your debts is to let your creditors sue you.  Hunh?  Why on earth would anyone want to get sued?  A legitimate question and my answer is not one given lightly nor does it apply in all situations.
In order to make this option of dealing with your debts feasible, you will most likely need a lawyer well-versed in defending debt collection suits.  Preferably, this lawyer is also well-versed in claims under the Fair Debt Collections Practices Act and applicable state debt collection law.  Generally, I am talking about lawsuits against you for old credit card accounts but this type of strategy can sometimes apply to other collection accounts.
So, when would allowing a creditor to sue you make sense?  It would be helpful to delve into how collections are handled nowadays.

Bankruptcy Law Network
(posted 1 year 46 weeks ago)

Using Bankruptcy to Keep Your Small Business OpenIf you are finding it difficult to keep up with business debt obligations but want to keep your business running, bankruptcy may help.  The type of bankruptcy you choose to file could impact the outcome but it also depends on how your business is structured.  Whether you are considering Chapter 7, 11 or 13, there [...]

(posted 1 year 46 weeks ago)

In ALT Hotel LLC v. DiamondRock Allerton Owner, LLC, No. 11 a 1469, 2012 WL 4361434 (Bankr. N.D. Ill. Sept. 25, 2012), the United States Bankruptcy Court for the Northern District of Illinois had to determine whether to recognize an unusual form of veil piercing, in which an affiliate of the debtor would be recognized as the debtor’s alter ego, making the affiliate’s creditor a creditor of the debtor.  Finding that “inside reverse veil piercing”—a variation on reverse veil piercing—was too bizarre a twist on the corporate form, the court determined that the creditor of a debtor’s affiliate should not be recognized as the debtor’s creditor in the bankruptcy case.

(posted 1 year 46 weeks ago)

Many people grew accustomed to a Blockbuster Video in every town.  Ever since the rise of the internet and Netflix, the movie giant has dwindled.
The struggling company filed for Chapter 11 bankruptcy protection in September 2010.  In April 2011, billionaire founder of Dish Network Corp, Charlie Ergen, purchased the company.  With Blockbuster out of bankruptcy, many thought that the company would have a clear path.
Ergen planned to use the company to work with Dish Network to challenge Netflix Inc.
Despite the lofty goals, according to an article in the Chicago Tribune, the plan has fallen through.
According to the report, “the plans broke down when U.S. regulators didn’t immediately approve a waiver allowing Dish to use its satellite spectrum for terrestrial data and voice transmission.”
This leaves Blockbuster’s future much more uncertain than it was just a few months ago.
Currently, Ergen plans to continue running the trimmed down selection of stores.  He believes that the DVD rental stores make sense in more rural regions.  And while down significantly, there are currently still 900 U.S. blockbuster stores (at least as of August).

Total Bankruptcy
(posted 1 year 46 weeks ago)

Proclaim the beliefs you would fight for - the essence of what differentiates your bank from others - then carefully ensure that every action, from your marketing, to your interactions and behaviors, matches those values.

(posted 1 year 46 weeks ago)
Associated Press

After winning crucial labor relief, Hostess Brands Inc. filed its plan to pay creditors and emerge from Chapter 11 protection. 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.”)
A family friend said Peregrine Financial Group Inc.’s founder thinks there might be more money available to clients than what is thought, The Wall Street Journal reports.
According to WSJ, Vertis Holdings Inc., a direct-mail marketing firm, filed for bankruptcy and will sell itself for $258.5 million. Bankruptcy Beat
(posted 1 year 46 weeks ago)

Receiving Wide Coverage ...

The JPMorgan Shuffle Continues: JPMorgan cannot stop revamping its organization chart. One month after an overhaul of its corporate and investment banking division and a week after two upper-level departures, multiple news outlets are reporting the bank's chief financial officer Douglas Braunstein will step down by the end of the year. The move isn't all that surprising given Braunstein found his role significantly diminished during another major executive shake-up back in September...

(posted 1 year 46 weeks ago)

Historically, a municipality could file for protection under Chapter 9 of the United States Bankruptcy Code without seeking prior state approval or satisfying any pre-conditions.  As a response to the City of Vallejo’s 2008 bankruptcy filing, the California state legislature passed AB 506, which became effective on January 9, 2012.  AB 506 permits a financially troubled city or agency to file for bankruptcy protection, but it must satisfy a prerequisite before doing so. 

The entity must either: (1) engage in a neutral evaluation process with its creditors with the help of a mediator for a minimum of 60 days, or (2) declare a fiscal emergency. 

By promoting the use of a neutral evaluator, the legislation encourages the municipality to work with its creditors to craft a settlement or readjustment plan that has the requisite support to be approved. 

(posted 1 year 46 weeks ago)