Patricia Hennelly and Wayne Walker have joined advisory firm CohnReznick, which bought an ownership interest in Mr. Walker’s Philadelphia-based consulting firm, Walker Nell Partners. Mr. Walker, appointed as principal, has experience in turnaround management, corporate restructuring and bankruptcy matters. He is a member of the American Bankruptcy Institute and Turnaround Management Association. Ms. Hennelly, a member of the American Bankruptcy Institute, has joined the firm as a director and has experience in bankruptcy, restructuring, forensic accounting and mergers and acquisitions. She previously was vice president of administration and finance of an academic medical center in Manhattan.
Benjamin Hoch joined law firm Wilson Sonsini Goodrich & Rosati as a partner and will work in the New York office. Mr. Hoch, who most recently chaired Covington & Burling’s bankruptcy and corporate restructuring practice, advises clients in corporate finance and financial restructuring. He’s also worked with clients on inter-creditor disputers and mergers and acquisitions in industries including energy, entertainment, transportation and real estate.

WSJ.com: Bankruptcy Beat
(posted 4 days 22 hours ago)

Efforts to limit so-called tax inversions are destined for failure until policymakers reform the corporate tax rate, writes Mark Olson of Treliant Risk Advisors.

BankThink
(posted 4 days 23 hours ago)

A judge’s ruling Tuesday in the bankruptcy of Momentive Performance Materials Inc. has shaken up the distressed investing world. The decision in favor of the company allows it to force holders of secured bonds to accept repayment in new debt at below-market interest rates, something the funds that own the debt had argued against.
The little known silicone maker’s bonds were the most actively traded corporate debt in U.S. markets Wednesday and Thursday. In all, Momentive bonds with a face value of more than $550 million changed hands, according to data from TRACE. Paper losses on the bonds have exceeded $60 million this week.
Momentive’s bankruptcy pits its owner, private-equity firm Apollo Global Management LLC, against funds that own $1.35 billion of the company’s so-called first-lien bonds. The two sides had been haggling for months and Judge Robert Drain’s decision was at least partially fueled by his frustration at the two sides’ inability to settle their dispute, people close to the litigation say.
Senior bondholders wanted Momentive to repay their bonds in full plus a premium — called make-whole — or issue them new bonds paying a market rate of interest. Apollo offered to pay the bondholders par value and accrued interest, but not the make-whole. The firm threatened to swap the first-lien bonds for new debt at a low interest rate if they didn’t agree.

WSJ.com: Bankruptcy Beat
(posted 5 days 7 min ago)

Some of our readers may have had the pleasure of renting a resort villa during their summer vacation (electronic postcards of such fancy digs are always welcome at the Weil Bankruptcy Blog, especially if you pose for a photo where you are reading one of our entries!). For the uninitiated (including yours truly), villas are often viewed as the ultimate upgrade for privacy and convenience when staying at a large resort for a week or more—a private home with the luxuries of a full service hotel. A villa is not exactly the first thing that comes to mind when thinking of real estate bankruptcies, but the recent decision by Judge Lane of the United States Bankruptcy Court for the Southern District of New York in the chapter 11 cases of In re MSR Resort Golf Course LLC gives a glimpse into the business behind these luxury rentals.

(posted 5 days 59 min ago)

The Earned Income Tax Credit (EIC) is a tax credit that helps you keep more of what you earned. The credit was initially passed in 1975 to offset the burden of social security taxes and provide incentive for working. How is it calculated, and who qualifies?The post What is the Earned Income Tax Credit, and How Can It Help You? appeared first on Tucson Bankruptcy Attorney.

(posted 5 days 1 hour ago)

Banks that misinterpret regulatory guidance on vendor risk management can wind up shortchanging themselves and stifling industry innovation, according to consultant Paul Schaus.

BankThink
(posted 5 days 1 hour ago)

Receiving Wide Coverage ...

Hacked: JPMorgan Chase and at least four other banks were hacked this summer in a "sophisticated" cyber attack, the Times reports, and the hackers are said to have stolen customers' checking and savings account information. The FBI and Secret Service are investigating whether the hackers have Russian ties. JPMorgan "isn't seeing considerable fraud related to the attack," the Wall Street Journal reports, citing anonymous sources, without really explaining what that vague statement...

BankThink
(posted 5 days 2 hours ago)

A judge Wednesday said most of MF Global Holdings Ltd.’s $1 billion lawsuit against PricewaterhouseCoopers LLP over alleged bad accounting advice can go forward. Read 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.”)
The Chinese-backed company that bought Swedish auto maker Saab out of bankruptcy has entered bankruptcy itself, The Wall Street Journal reports.
KPMG is facing criticism for its audit work with the Espirito Santo Group, WSJ reports.
Hayman Capital founder Kyle Bass is speaking out against the dispute between Argentina and hedge-fund manager Paul Singer, the New York Post reports.

WSJ.com: Bankruptcy Beat
(posted 5 days 2 hours ago)

Authored by Adam B. Brandon of Rogers TowersThe Florida Consumer Collection Practices Act (“FCCPA”) prohibits anyone attempting to collect a debt from using certain types of abusive, deceptive, and misleading tactics.  In a recent decision, Florida’s Second District Court of Appeals ruled that the FCCPA applies not just to “debt collectors” but also to banks that send demand letters to borrowers whose loans are in default.
In Gann v. BAC Homes Loan Services, LP, a bank agreed to permanently modify a loan.  The borrower then timely made payments in accordance with the modification agreement.  However, the bank sent the borrower a letter which claimed that she was in default under the original terms of the loan.  The bank threatened to foreclose its mortgage unless the borrower paid the amount which the bank claimed she owed.  In response, the borrower sued the bank for violating the FCCPA by ignoring the terms of the loan modification and attempting to enforce an illegitimate debt.

Florida Banking Law Blog
(posted 5 days 2 hours ago)

From June of 2010 to June of 2013, Pennsylvania bankruptcy attorney Jason Mazzei handled approximately 1,300 Chapter 13 cases.  Collectively, those cases earned him an estimated $1.7 million in retainer fees — and the attention of several bankruptcy judges, one of whom eventually removed himself from the case after referring to Mazzei as a “sociopath.”

Two businessmen having a difference of opinion
Legal Battle Escalates into Personal Feud Between Judge Agresti and Attorney Mazzei
Jeffrey A. Deller is the Chief Judge for the U.S. Bankruptcy Court Western District of Pennsylvania.  It was Deller who first noticed unusual financial activity on behalf of bankruptcy lawyer Jason J. Mazzei, who is based in Pittsburgh.  Judge Deller — along with several other area bankruptcy judges — had received multiple complaints from Mazzei’s former clients.
Concerned, Deller turned to U.S. Bankruptcy Judge Thomas P. Agresti to request a closer review of Mazzei.

Young, Klein & Associates
(posted 5 days 3 hours ago)