Check out the latest news from Financial Poise. Don’t miss out on our upcoming live webinars! View the full newsletter here.

(posted 1 day 23 hours ago)

Anadarko Petroleum Corporation and EOG Resources, Inc. agreed with the New York State Attorney General earlier this month to provide additional disclosure regarding hydraulic fracturing risks in, and outside of, their SEC filings. These agreements, available here and here, effectively set forth disclosure checklists for the companies’ annual reports on Form 10-K for any material financial effects of current and future hydraulic fracturing regulation, litigation and impacts to drinking water, air and the environment resulting from hydraulic fracturing, including disclosure of each company’s management of these matters. In addition, Anadarko and EOG agreed to publicly disclose (outside of their SEC filings) detailed information regarding hydraulic fracturing risk mitigation techniques, chemical and greenhouse gas information and injury rate and spill statistics. These agreements resolve investigations the Attorney General brought in June 2011 under the Martin Act, a New York State securities law. 

(posted 2 days 48 min ago)
In this Thursday, April 5, 1990 file photo, Donald Trump ascends the stairs with his fist raised after the opening of the Trump Taj Mahal Casino Resort in Atlantic City, N.J. Trump Plaza closed Sept. 16.
Associated Press

A bankruptcy judge Friday said he would grant Trump Entertainment Resort Inc.’s request to terminate its contract with the union representing more than 1,100 casino workers at the Trump Taj Mahal. 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.”)

WSJ.com: Bankruptcy Beat
(posted 2 days 1 hour ago)

It’s always risky when the Supreme Court grants certiorari in a bankruptcy case. While the Court’s opinion may bring clarity to the narrow question upon which certiorari was granted, it often creates a host of unintended problems in other areas.
This month’s grant of certiorari to resolve the split between the Fifth and Ninth Circuits over the compensability of legal fees incurred by estate counsel in defending a fee award may present far more downside risk to bankruptcy professionals than upside potential. See In re ASARCO, L.L.C.), 751 F.3d 291 (5th Cir. 2014), cert. granted, Baker Botts L.L.P. v. ASARCO L.L.C., 2014 WL 3795992 (Oct. 2, 2014).
On the narrow question, the current strong majority view is that there is discretion to award fees for the successful defense of a fee award in an appropriate case. While the Fifth Circuit adopted a per se rule prohibiting such awards, it may have been better for bankruptcy professionals to leave that decision as the outlier than to risk its nation-wide adoption by the Supreme Court.

GT Restructuring Review
(posted 2 days 1 hour ago)

credit scoreIn the modern era, debt is not a simple matter between you and your creditors.  Anyone who has ever rented an apartment, applied for a credit card, or tried to set up payments on a new car knows that credit scores play a significant role in determining whether you will be able to obtain credit.  For those who have had financial difficulties, this can be frightening, especially if those difficulties have resulted in bankruptcy.  Bankruptcies can remain on your credit report for up to ten years, and a bankruptcy will affect your credit score as well.  But you can take steps after your bankruptcy to improve your credit—all is not lost forever.
Of course, when you go through a bankruptcy, you should have a licensed attorney by your side to make sure that your interests are protected and that all of your debts are properly handled.  When you go through the process with your attorney, you can discuss your specific situation and how you should move forward after bankruptcy.

(posted 2 days 3 hours ago)

I was pleased to see today’s New York Times editorial entitled “A Rate Cap for All Consumer Loans.”  It created a very public description of an industry indiscretion involving loaning money to the military at over 36%. Those loans are illegal because a federal law makes it so, a law that passed with broad and deep bipartisan support because trapping military personnel in high-cost loans interferes with military readiness and thus threatens national security. This editorial, not in some fringe publication, but rather the New York Times, argues that we all deserve the same protections from high cost loans.  I agree (in this recent article), and think the time is right to start listening to people and not industry on this topic.

Credit Slips
(posted 2 days 18 hours ago)

Czyzewski v. Sun Capital Partners, Inc. (In re Jevic Holding Corp.), No. 13-1127-SLR (D. Del. Sept. 29, 2014)
In this Memorandum, arising from the bankruptcy proceedings of Jevic Holding Corp. and its affiliates (together, the “Debtors”), Delaware’s District Court affirmed the Bankruptcy Court’s holding that appellee Sun Capital Partners, Inc. (“Appellee”) was not a “single employer” with debtor Jevic Transportation Inc. (“Jevic”) for purposes of claims asserted under the federal and New Jersey Worker Adjustment and Retraining Notification Act (collectively, the “WARN Act”). In line with Third Circuit precedent, the District Court agreed with the lower court that the allegations alleged and evidence proffered by Jevic’s former employees did not satisfy the standard required for inter-corporate liability under the WARN Act, which rests on whether the former employer and the target-company have become so entangled with one another’s affairs that they are more like divisions of a single enterprise. Read More ›
Tags: WARN Act

Delaware Bankruptcy Insider
(posted 3 days 23 hours ago)

The Delaware Supreme Court Friday weighed in on a key issue in a battle over a $1.5 billion loan tied to the bankruptcy of General Motors Corp., and the word that came down is not good for the company’s lenders.
Asked to advise a federal appeals court in New York that will make the final call, the Delaware high court said creditors are entitled to rely on formal loan documents authorized by secured lenders—even if there’s a big mistake in the documents.
The decision hands an advantage to lower-ranking unsecured creditors in GM’s bankruptcy, who challenged the validity of the security anchoring a $1.5 billion loan from a syndicate of lenders, led by J.P. Morgan Chase & Co. Action continues in the New York court, which had consulted the Delaware court on a fine point of the law that governs loan documents filings.
Lawyers for GM creditors are attempting to persuade the U.S. Court of Appeals for the Second Circuit to rule that a mistake in the paperwork involving the payoff of a different loan effectively rendered the $1.5 billion bank loan an unsecured debt.

WSJ.com: Bankruptcy Beat
(posted 4 days 17 hours ago)