In a Breaking News Alert  at, discusses Fitch Ratings’ estimates of recoveries for creditors of Caesars Entertainment Operating Company (CEOC) here!

(posted 2 days 23 hours ago)

In a Breaking News Alert  at, provides an overview of the New York City Opera’s efforts to conduct a section 363 asset sale. Learn who the stalking horse bidder is here!

(posted 2 days 23 hours ago)

Providing proper notice to existing and potential creditors is an important consideration for debtors’ counsel. A seminal Supreme Court decision established that due process for “unknown” claimants is generally satisfied by publication notice, so long as it is reasonably calculated to reach such creditors under the circumstances. As covered extensively on this blog here, here and here, sufficiency of publication notice is a fact-specific inquiry that can make a difference in whether the debtor is or is not liable for certain claims. 

(posted 3 days 2 hours ago)

Two of the most difficult and stressful legal processes that individuals participate in are divorce and bankruptcy proceedings. Unfortunately, as lives are upturned and finances stretched, one often closely follows the other.
Such was the case in a recent case in the United States Bankruptcy Court for the Western District of Michigan.
A husband and wife (both Michigan residents) used equity from property owned by the wife - prior to and during the marriage - to finance a roofing repair business started by the husband in Florida. To accomplish this, the wife quit-claimed her interest in the property to herself and the husband. They then refinanced the property and borrowed $200,000 from the lender. The loan funds were used to pay off the wife's original mortgage on the property ($120,000), pay down the husband's credit card debt and fund the new business.
They then agreed that the husband would make monthly mortgage payments on the new loan until the payments equaled the amount of the original mortgage - $120,000. They subsequently refinanced the loan with two new lenders. Shortly thereafter the husband's business failed, and the husband and wife started divorce proceedings in 2011. Read More ›
Tags: Chapter 7, Western District of Michigan

Michigan Bankruptcy Blog
(posted 3 days 3 hours ago)

Cliff Rosenthal left his credit union colleagues behind to become assistant director of the CFPB in 2012. He found an energetic, dedicated agency under attack from political opponents and hampered by institutional hubris.

(posted 3 days 3 hours ago)
Mel Evans/Associated Press

A bankruptcy judge on Friday scrapped a $110 million deal to sell Atlantic City, N.J.’s closed Revel Casino Hotel to a Canadian private-equity firm. 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.”)
DBR reports via WSJ that Binder & Binder, one of the nation’s largest Social Security disability firms, is preparing for a possible Chapter 11 bankruptcy filing as soon as this week. Bankruptcy Beat
(posted 3 days 4 hours ago)

A legislature, be it city, state or federal, has many options at its disposal to improve the local economy. This can include a significant amount of modification to the tax laws, to allow more money to remain in the pockets of consumers to be spent. One of the more common methods used by several locales in recent years has been the propagation of tax incentives.
Definitions and Parameters of Tax Incentives
A tax incentive is defined as an exclusion or exemption from tax liability, usually offered as an inducement to engage in a certain activity – for example, investing in certain areas or funds. Tax incentives usually have conditions attached, and they can be withdrawn if the conditions are not fulfilled. Given the recent recession in the U.S., more and more cities and states (to say nothing of the federal government) have started using tax incentives to help lure investment to their area. New York State and New York City have both done so, in a variety of areas.
State Corporate Tax Incentives
New York has one of the lowest corporate income tax rates in the country, in addition to the multiple tax incentives still being offered by the state and city legislatures. Some of the better known are:

(posted 3 days 6 hours ago)

Receiving Wide Coverage ...

PetSmart's Debt Financing: That whole thing about regulators cracking down on big banks for providing too much debt-financing in takeover deals? Eh, who cares? Citigroup is one of five banks that's underwriting billions of dollars in in debt to help finance the $8.7 billion private-equity acquisition of retailer PetSmart led by BC Partners. The debt in the PetSmart deal, in the most recent negotiations, equates to more than six times cash flow....

(posted 3 days 6 hours ago)

New York debt collection regulations 2015
On December 3, 2014 New York State Governor Andrew M. Cuomo announced a series of new regulations aimed at curbing debt collection abuse in the state.
“Here in New York we will not tolerate debt collectors who wrongfully take advantage of consumers,” Governor Cuomo said. “That’s why we’re rolling out tough new regulations that protect borrowers and help crack down on illegitimate debt collection practices. These new tools and disclosures will protect New Yorkers across the state, and I am pleased that our administration is leading the way on this issue.”
The new regulations, which take effect on March 3, 2015, will force debt collectors to provide consumers with a series of disclosures and rights. Designed to supplement the consumer protections in the Fair Debt Collection Practices Act (“FDCPA”) and the New York General Business Law, these new reforms include:

  • Improved Disclosures and Debt Information
  • Protections Against Collection of “Zombie Debts”
  • “Substantiation” of the Debt Allegedly Owed
  • Written Confirmation of Settlement Agreements
  • Opportunity for Email Contact

According to the press release:

(posted 3 days 9 hours ago)

If you are anything like me, you enjoy discussing bankruptcy and litigation issues at social gatherings.  It’s basically like being the Most Interesting Man in the World , except the opposite of that.  Or, at the very least it will end a conversation with someone you didn’t want to speak with. With that in mind, below I have compiled the first annual Cocktail Party Talking Points.  Please use them as you see fit.
The Energy Bubble.  With the Saudis keeping the pedal to the metal on production while the US is in the midst of an energy boom, the cost of oil and gas has tanked.  With margins burning off, the E&P firms who had been surviving of cheap liquidity may be in for a correction.  Read about it on Bloomberg.

Tough Times for Lenders
(posted 3 days 16 hours ago)