This month, the Examiners will tackle a timely and thorny topic—Argentina’s debt troubles.
Last month, the U.S. Supreme Court declined to take up a long-running battle between Argentina and its bondholders. The court’s move means that a lower court ruling barring Argentina from repaying its new bonds ahead of its old bonds will stand, and Argentina is now entering mediation with a group of holdout bondholders, mostly hedge funds, that have refused to accept the country’s restructuring proposals. At stake in the talks is Argentina’s ability to avoid what would be its second default in 13 years, and it must reach a deal by next Wednesday. A federal judge ordered the country and its holdout creditors to around-the-clock mediation. But as of Friday afternoon, the mediator said no deal had been reached, and Argentina’s delegation was slated to return home from the talks in New York.

WSJ.com: Bankruptcy Beat
(posted 4 days 2 hours ago)

In my earlier blog I discussed the numerous lawsuits brought by the feds and several states against law firms in Arizona: CFPB Files Suits for Operations that Used Deception and False Promises to Collect More than $25 Million in Illegal Fees from Distressed Homeowners
Here is a Consumer advisory from the CFPB (Consumer Financial Protection Bureau).
Skull& Crossbones - goldWarning signs:
There are red flags that a company claiming to offer legal foreclosure relief help may not be worth your money. Watch for the following warning signs and ask more questions:

(posted 4 days 2 hours ago)

As Anna points out, there are indeed moments of poignancy in the pari passu litigation, largely having to do with the fact that, days from a major sovereign default induced in no small part by their rulings, the US courts only now seem to be discovering basic facts about the case. The transcript of the most recent hearing before the district court contains passages that might have been appropriate two years ago, but are depressing to encounter now.

Credit Slips
(posted 4 days 2 hours ago)

According to the American Bar Association Journal Federal agencies and 15 states have announced a wave of litigation against law firms, attorneys, affiliated companies and others that claimed to perform work on behalf of homeowners struggling to pay their mortgages.  The states involved in the enforcement sweep are Arizona, Delaware, Florida, Indiana, Illinois, Kansas, Louisiana, Maryland, Michigan, New Mexico, New York, North Carolina, Ohio, Washington and Wisconsin.
Greed - signCommon themes in the 41 suits (the CFPB filed three, the FTC six and states another 32, the NLJ says) are upfront fees charged to homeowners, with little or no meaningful work allegedly provided to them in return.  “The defendants disguised their false promises of foreclosure relief for struggling homeowners with claims that they were performing legal work,” says the CFPB. “These tactics are used by foreclosure relief scams to attract victims, add credibility to their schemes, or exploit certain legal exemptions for the practice of law.”

(posted 4 days 2 hours ago)

In Aaron L. Hammer and Michael A. Brandess, “Demystifying Administrative Expenses in Bankruptcy,” Commercial Bankruptcy Alternatives (July 23, 2014), the authors provide a brief primer for parties doing business with a company in bankruptcy, as regards to their getting paid ahead of unsecured creditors and others.
To read the full article click here or visit www.commercialbankruptcyalternatives.com for more information.

(posted 4 days 2 hours ago)

It’s no secret that medical bills are often the cause of a Southeastern Wisconsin bankruptcy. Many Southeastern Wisconsin residents find themselves under a pile of bills after a major illness or injury. Even if you have health insurance, health insurance rarely covers 100% of medical bills. Copayments, non-covered services, and out of pocket expenses add up fast.
 
Southeastern Wisconsin Medical Bankruptcy AttorneySoutheastern Wisconsin bankruptcy attorney, Shannon Wynn, asks you to consider this scenario:
After a lengthy hospital stay with the best health insurance coverage of 90%/10%, one must realize that even 10% of a $100,000 bill is $10,000. To add to the turmoil, the patient hasn’t been able to work while recovering. Most Southeastern Wisconsin residents end up having to file a bankruptcy because they do not have this large amount of cash to cover the medical debt.
 

Wynn at Law, LLC
(posted 4 days 3 hours ago)

AirbnbÂ's recent rebranding featured personal narratives from employees and customers as well as stories that emphasized the companyÂ's local roots. Banks can apply these lessons to their own marketing and product development, according to consultant Sam Maule.

BankThink
(posted 4 days 3 hours ago)

A Delaware bankruptcy judge next week could approve the creditor-payment plan that would distribute money from the $149.2 million sale of failed hybrid auto maker Fisker Automotive Inc.
On Monday, Judge Kevin Gross has the power to approve the distribution plan for proceeds from the company’s sale to China’s Wanxiang Group. Wanxiang America has said it will revive Fisker’s car-making operations, and the plan offers old company’s trade vendors and other unsecured creditors a chance to share in the profits through a 20% ownership stake in the reorganized company.
Unsecured creditors, which include dealers and some owners of Fisker’s Karma cars, are also supposed to split $20 million of the sale proceeds, according to court papers. The group is owed between $75 million to $250 million.
Hong Kong billionaire Richard Li, who bought the U.S. Department of Energy’s $168 million loan to Fisker prior to the company’s bankruptcy auction, would collect about $100 million under the plan.
In court papers, lawyers who drafted the plan said that it got supporting votes “from every voting class by an overwhelming margin, including approximately 95% of all voting creditors by number and more than 99% by value.”
Founded in 2007 with the goal of launching a luxury plug-in hybrid vehicle, Fisker filed for Chapter 11 protection last year.

WSJ.com: Bankruptcy Beat
(posted 4 days 5 hours ago)

Everyone these days is chasing Apple and Amazon.com. But are the strengths of these brands applicable to the banking industry?

BankThink
(posted 4 days 5 hours ago)