Thomas Jefferson School of Law

Thomas Jefferson School of Law is scrambling to restructure its debt after blowing a bond payment deadline.
The downtown San Diego private law school has disclosed in a financial filing that it failed to meet its entire debt obligations in June. But an agreement the school struck with creditors staves off doomsday at least until Oct. 17, while requiring it to come up with another $2 million.
School officials say they’re counting on reaching a restructuring deal with bondholders, who’ve agreed not to pursue legal remedies for the time being.
“As part of the negotiations, various potential structures and restructuring alternatives have been discussed,” the school said in a statement Tuesday evening following a report by the Above the Law blog about its borrowing woes.
“The parties have a mutual interest restructuring the law school’s debt in a way that will allow the school to remain in operation and prosper,” the statement said.

WSJ.com: Bankruptcy Beat
(posted 4 days 6 hours ago)

A Adp-garnishment-report-1 valuable and groundbreaking source of data on wage garnishment has just been released by ADP, the nation's largest payroll services provider. I immediately recalled a great paper by Rich Hynes about the paucity of wage garnishments in Virginia and Illinois in the mid-2000s. According to ADP, things have changed since the recession, especially for blue-collar (manufacturing and transportation/utilities) workers in the Midwest making between $25,000 and $40,000 a year, of whom more than 10% suffered a garnishment in 2011-2013. About half of these garnishments were for child support, but the other half were for taxes, consumer debts, and bankruptcy cases (presumably wage orders entered for Chapter 13 plans).

Credit Slips
(posted 4 days 8 hours ago)
Burned out lights can be seen as a woman passes Trump Plaza Hotel & Casino on the boardwalk Sept. 16, 2014, in Atlantic City, N.J.
Associated Press

Carl Icahn holds all the cards at the Trump casinos in Atlantic City, and the question is, will he hold ‘em or will he fold ‘em?
As a secured lender who’s owed $285 million plus interest, he’s in a prime position in the Trump Entertainment Resorts Inc. Chapter 11 case, which began Tuesday and is speeding toward a possible shutdown of the two casinos on the Atlantic City Boardwalk still bearing the name of rival billionaire Donald J. Trump.
Trump Plaza closed Tuesday, but there’s a chance Trump Taj Mahal, the larger and more successful of the two, can be saved. Court papers pin that hope on concessions from Unite Here Local 54, the union that represents thousands of Atlantic City casino workers.
Union chief Bob McDevitt said the Taj Mahal negotiating committee looks forward to talking to the new owners, but voted a unanimous “no” to cuts asked by current management.

WSJ.com: Bankruptcy Beat
(posted 4 days 9 hours ago)

Collections Seminar Invite Join us for a FREE luncheon and […]
The post Bernstein-Burkley, P.C. to host COLLECTIONS: TURNING DEBT INTO DOLLARS appeared first on Bernstein-Burkley, P.C..

Bernstein-Burkley, P.C.
(posted 4 days 9 hours ago)

Come October 1, 2014 it will be hard to collect on portfolios of consumer debt in New York State.  For more see http://www.nytimes.com/2014/09/17/nyregion/new-york-state-judiciary-adopts-rules-to-protect-debtors.html

The COMI
(posted 4 days 10 hours ago)

The extent of a transferee’s knowledge in the context of fraudulent transfer claims under the Bankruptcy Code has been a frequent topic of discussion on the Weil Bankruptcy Blog. Recently, we examined the knowledge required to establish a transferee’s “good faith” defense under section 548(c) of the Bankruptcy Code. Now, the United States Court of Appeals for the Third Circuit in SB Liquidation Trust v. Preferred Bank, Nos. 13-1373 and 13-1959 (3rd Cir. Aug. 11, 2014) has provided more food for thought when it comes to the issue of a transferee’s knowledge, concluding that it is not necessary to plead the transferee’s knowledge of the fraudulent transfer to maintain a cause of action under section 548(a)(1) of the Bankruptcy Code.
Background

(posted 4 days 10 hours ago)

SEC Chair White has spoken about the SEC's interest in reforming the current disclosure regime, which we discuss here. Perhaps foreshadowing the possible benefits of change, the WSJ recently reported on Corp Fin’s role in prowling through securities filings, dubbed the “the world’s most impenetrable prose,” followed by a story on how an outfit that runs the SAT test graded the filings of six large companies for “readability.”  

(posted 4 days 11 hours ago)

The recent Middle District of Florida decision in In re Nabavi, 2014 WL 3939595 (M.D. Florida, August 12, 2014) made reference to the 11th Circuit Court of Appeal’s longtime adoption of the "civil plain error rule" - an exception to the general rule that an appellate court will not consider an issue not raised in the lower court.  In the In re Nabavi  appeal to the District Court from the Bankruptcy Court, the creditor raised arguments which it had failed to before the Bankruptcy Court.

Miami Bankruptcy Law Blog
(posted 4 days 12 hours ago)

The recent Middle District of Florida decision in In re Nabavi, 2014 WL 3939595 (M.D. Florida, August 12, 2014) made reference to the 11th Circuit Court of Appeal’s longtime adoption of the "civil plain error rule" - an exception to the general rule that an appellate court will not consider an issue not raised in the lower court.  In the In re Nabavi  appeal, the creditor raised arguments before the District Court which it failed to preserve before the Bankruptcy Court.

(posted 4 days 12 hours ago)

Energy Future Holdings Corp. is “in the midst of a bidding war” and still talking to NextEra Energy Inc., the Florida company that sparked a competition that shook up one of the biggest bankruptcies on record, company attorney Edward Sassower said Tuesday. Read the story in the Daily Bankruptcy Review.
(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.”)
A judge on Tuesday approved several routine motions to allow NII Holdings Inc. to keep operating normally, as the owner of Nextel-branded wireless units in Latin America assured the court that negotiations with bondholders on a restructuring have been fruitful. Read the DBR story in The Wall Street Journal.

WSJ.com: Bankruptcy Beat
(posted 4 days 12 hours ago)