Since it burst onto the Bankruptcy Code scene in 2005 with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), section 503(b)(9) of the Bankruptcy Code, which affords a creditor administrative priority for the value of goods the debtor received within 20 days prior to its bankruptcy filing, has been the subject of many bankruptcy decisions. The express language of section 503(b)(9) has come under heavy scrutiny, with much of the litigation surrounding section 503(b)(9) focusing on what constitutes a “good.” You can read about whether electricity, for example, is a “good” here, here, here and here.

(posted 4 days 20 hours ago)

Americans are still looking for the same fundamental services from their banks. It's their expectations of convenience and accessibility that have changed Â-- and that's where digital offerings should come in.

(posted 4 days 21 hours ago)

TelexFree LLC’s bankruptcy advisers will forgo more than $1 million in fees they charged during the short time they worked for the company, which has since been accused of operating a massive pyramid scheme.
To head off objections from the U.S. Securities and Exchange Commission, one of the many that have sued over the alleged fraud, attorneys at Greenberg Traurig and turnaround advisers at Alvarez & Marsal will dramatically slash the amount they charged TelexFree in the early days of its Chapter 11 case.
Court papers show that Greenberg will cut its request for $969,000 in fees to just $320,000, while its requested expenses of about $76,000 will remain the same. A&M’s roughly $876,000 in fees and expenses, meanwhile, will be cut to $435,000.
In return for these agreed-to reductions—which together total $1.09 million—TelexFree’s court-appointed trustee and the SEC won’t object as the firms seek bankruptcy-court approval for the fees (all debtor advisers in Chapter 11 must submit their fees for court approval). The SEC will also ask a district judge to lift the order freezing TelexFree’s assets so the firms can collect their fees. Bankruptcy Beat
(posted 4 days 21 hours ago)

Judge Drain's recent bench ruling in the Momentive Performance confirmation hearing rests primarily  on the proposition that profit has no place in calculating the interest rate payable to secured creditors under a plan satisfies the standards of section 1129(b)(2)(A)(i).   His ruling invokes two chapter 13 cases, In re Valenti in the 2d Circuit and the plurality opinion in Till v SCS Credit Corp., and treats them as binding in cha

Necessary and Proper
(posted 4 days 23 hours ago)

The multifamily housing sector is likely to remain healthy thanks to favorable demographics Â-- but the apartment market is almost certainly past peak for this cycle.

(posted 4 days 23 hours ago)
Associated Press/Elaine Thompson

As former customers keep a wary eye on the online version that new owners are planning for the Coldwater Creek women’s clothing line, the former company Wednesday won confirmation of its bankruptcy debt-payment plan. 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.”)
Smallpox drug maker Siga Technologies Inc. on Wednesday told a judge that without bankruptcy protection, it “would no longer be able to continue its operations,” DBR reports via WSJ. Bankruptcy Beat
(posted 4 days 23 hours ago)

Receiving Wide Coverage ...

Fed Balancing Act: The Federal Reserve's policy-making Federal Open Market Committee announced Wednesday that the central bank will keep interest rates low in the near-term, though it could change course sooner than expected if data shows greater economic improvement. The Fed's statement, which was approved by an 8-2 vote, noted that unemployment levels remain subpar. "There are still too many people who want jobs but cannot find them, too many who are...

(posted 5 days 57 min ago)

Authored by J. Ellsworth Summers, Jr. and Scott St. Amand and J. Ellsworth Summers, Jr. and Scott St. Amand of Rogers TowersIn Detroit’s ongoing restructuring effort, the city cleared a major hurdle last week by settling with its largest adversary, Syncora Guarantee, a New York based bond insurer.  The settlement was negotiated just a week into the bankruptcy trial and was so significant that Judge Steven Rhodes adjourned the trial for two days to allow the parties to work out the logistics of the deal.  Although the Syncora settlement was a huge step in the right direction for the beleaguered municipality, Detroit still faced a vexing requirement of the Chapter 9 process: feasibility.
In addition to being equitable and in the creditors’ best interest, the Chapter 9 plan must be feasible; however, the Bankruptcy Code fails to define feasibility.  On Monday, however, the court appointed financial expert tasked with determining feasibility concluded that the plan was in fact feasible.  In essence the expert found that the city’s exit strategy could actually work and succeed in placing Detroit on a financial course that avoids falling back into bankruptcy.

Florida Banking Law Blog
(posted 5 days 1 hour ago)

You’re a Pennsylvania resident, and you’ve decided you’d like to file for Chapter 13 or Chapter 7 bankruptcy. Do you need a Pennsylvania bankruptcy lawyer to help you file?  Do you need an attorney at all?

Philly Pin
Why Pennsylvania Filers Need Pennsylvania Attorneys
Most bankruptcy laws are federal, so geographically speaking, it shouldn’t really matter where my bankruptcy attorney practices — right?
Wrong.  While it is true that many aspects of consumer filing are dictated by federal law, it is also true that some aspects of bankruptcy vary greatly from one jurisdiction to the next.  In fact, the state you live in directly influences which chapter you can or should file under, because eligibility is determined by Means Testing, which is based on state median incomes.

Young, Klein & Associates
(posted 5 days 1 hour ago)