A bankruptcy judge cleared the operator of the Indiana Toll Road to exit Chapter 11 and continue its hunt for a buyer who can help the company pay off about $6 billion in debt. 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.”)
GT Advanced Technologies Inc . said it needs to settle disputes with Apple Inc. because “protracted litigation against one of the largest corporations in the world with over $100 billion of cash would be challenging and expensive,” DBR reports in WSJ.
A new lawsuit accuses pension consultant Gabriel Roeder Smith & Co. of covering up a shortfall in Detroit’s pension plan, DealBook reports.

WSJ.com: Bankruptcy Beat
(posted 2 days 16 hours ago)

Receiving Wide Coverage ...

New CFO in the Haus: Deutsche Bank has tapped Goldman Sachs partner Marcus Schenck as its future chief financial officer, with plans for current CFO Stefan Krause to take on a newly created position at the company. The change comes as investors pressure the German lender to improve its financial strength, according to the Wall Street Journal. The papers all note Krause has made slow progress in strengthening the bank's regulatory reporting;...

(posted 2 days 16 hours ago)

I always assume that people who like NASCAR are really watching for the wrecks.  The cars loop around the track for hours, but only the wrecks make the highlight reels.  In a recent Texas Supreme Court case, the high court considered whether a supermarket was liable for destruction of evidence when it retained only the video recorded around the time of a slip and fall after its looped camera system deleted the rest.
shake and bake
The case is Brookshire Brothers Ltd. v. Aldridge at the Texas Supreme Court (for those of you outside of Texas, Brookshire Brothers is a supermarket).
In the Brookshire case, a slip and fall claim made it to the SCOTX because Brookshire had allowed a security camera (on a loop) to record over all but a few minutes before and after of the actual fall.  At the heart of Brookshire’s reasoning for recording over the video was the risk manager’s mistaken belief that the time prior to the fall was “not relevant”.
Even folks not familiar with the law have a general concept that destroying evidence is a bad thing.  The question in practical terms in a real lawsuit is – what is “evidence”.  At the heart of that question is relevance to the dispute.  That concept fills volumes of scholarly papers.  I won’t go into it here.

Tough Times for Lenders
(posted 2 days 17 hours ago)

Under Section 503(b)(9) of the Bankruptcy Code, creditors may receive administrative-expense priority for the value of goods “received” by the debtor within 20 days before the debtor’s bankruptcy filing in which the goods have been sold to the debtor in the ordinary course of business. 11 U.S.C. § 503(b)(9).
The question becomes: when are goods considered to be received” under Section 503(b)(9) of the Code?
The majority of Courts construing the word “received” have relied upon the Uniform Commercial Code (“UCC”). For example, in the decision of In re Circuit City Stores Inc., 432 B.B. 225 (Bankr. E.d. Va. 2010), the United States Bankruptcy Court for the Eastern District of Virginia ruled that “received” was the functional equivalent of “receipt” under the UCC, and indicated that the terms should be construed identically.
The Court ruled that “received” means “having taken into physical possession” the goods and should be applied as a “federal definition” for purposes of interpreting Section 503(b)(9). This analysis was subsequently applied by the U.S. Bankruptcy Court for the District of New Hampshire which also applied the UCC’s definition of “receipt” to the term “received” contained in Section 503(b)(9). See In re Momenta Inc., 455 B.R. 353, 358-59 (Bankr. D. N.H. 2011).
For creditors seeking to assert a Section 503(b)(9) claim, below are several additional articles on this topic:

(posted 2 days 18 hours ago)

The Supreme Court doesn't take many cases on bankruptcy issues.  It has only ruled on attorney's fees in bankruptcy once since the Code was adopted and that ruling was on the narrow issue of whether a chapter 7 debtor's attorney could recover fees from the estate.    As a result, it was big news when the Court granted cert in  No. 14-103, Baker Botts, LLP v. ASARCO, LLC on October 2, 2014.    The issue in ASARCO is whether an attorney can recover fees for defending his fee application or whether those expenses are merely "a cost of doing business" as held by the Fifth Circuit.   The issue matters in the particular case because Baker Botts spent $5 million in time defending its $113 million application.   
What Happened

(posted 3 days 6 hours ago)

Searching for a bankruptcy lawyer can be a lot tougher than one might think. One of the main reasons for this is that people do not readily refer bankruptcy attorneys to other people because they don’t want to advertise to their friends, family, and co-workers that they had to file for bankruptcy. Thus, people are+ Read More
The post The Top Five Obstacles To Avoid When Searching For A Bankruptcy Lawyer appeared first on David M. Siegel.

(posted 3 days 9 hours ago)
Peter Dinklage in “Game of Thrones.” Todd-Soundelux used to do postproduction work on the TV series.
HBO/Courtesy Everett Collection

Looking to get some bang for your buck? Then you might be interested in an upcoming auction at which sound effects are up for grabs.
Hollywood’s Todd-Soundelux LLC, which until its shutdown provided postproduction sound effects for movies and television shows, is selling a collection of sound effects to the highest bidder at a Nov. 13 auction.

WSJ.com: Bankruptcy Beat
(posted 3 days 10 hours ago)

The historic Detroit bankruptcy trial came to a close on Monday when city attorneys gave closing arguments as to why U.S. Bankruptcy Judge Steven Rhodes should approve the city’s bankruptcy plan.
Judge Rhodes is expected to announce his ruling on November 7.
Closing arguments highlighted the necessity to pass the debt-cutting plan, which would free Detroit from $7 billion in debt and open up money to improve city services.
The City of Detroit filed for bankruptcy in June 2003, claiming to owe over $18 billion in debt. The bankruptcy plan was revealed earlier this year: it aims to restructure and settle debts through several different severe measures, including reducing city employee pensions.
Funding of roughly $200 million will come from Michigan taxpayers and due to an agreement to not sell off art pieces from the Detroit Institute of Arts, the city will received nearly $500 million from private and corporate donors.
City lawyer Bruce Bennett identified the greatest risks that would stop Detroit from executing the debt-cutting strategy. He stated the plan could collapse if city leaders strayed from the plan to invest $1.7 billion.
"The worst thing that could happen is if the $1.7 billion is misused or perceived to be misused," Bennett said. "Either would be an enormous problem."

Total Bankruptcy
(posted 3 days 10 hours ago)

Bankruptcy filings are subject to a long list of complex legal and financial rules, so it’s reasonable to expect that your job could have some bearing on the outcome of your case.  But what if you don’t have a job?  Can you file for bankruptcy if you’re unemployed?  And perhaps more importantly, should you?  Our bankruptcy attorneys explore some of the factors you need to consider before you file.

Application For Employment
If I Don’t Have a Job, Can I Still File?
The short answer to this question is yes, you can.  There is no law or regulation prohibiting unemployed people from filing, and in fact, losing a job can often be the catalyst which prompts the decision to file.  Moreover, there is no minimum amount of debt necessary to file, nor is there an age limit (provided you are at least 18 years old). Believe it or not, you don’t even have to be a citizen of the United States.  With some exceptions, just about anyone who wishes to file may do so perfectly legally.
That being said, unemployment can have an effect on how your case proceeds, so you need to assess your financial goals and work prospects before you get started.

Young, Klein & Associates
(posted 3 days 11 hours ago)

Bernstein-Burkley, P.C.’s Co-Managing Partner, Kirk B. Burkley, discusses how to […]
The post 5 Minute Legal Master Series: Making Demands appeared first on Bernstein-Burkley, P.C..

Bernstein-Burkley, P.C.
(posted 3 days 12 hours ago)