In this Sept. 7, 2012, file photo, Joe Francis attends the House of Hype Music Awards at the Beverly Hills Hotel in Beverly Hills, Calif.
Arnold Turner/Associated Press

Your move, Joe Francis.
A federal judge has slapped the Girls Gone Wild founder with a daily fine of $5,000 until he returns two luxury cars that belong to the porn business, whose famous brand was recently sold out of bankruptcy.
The fines, which started on Friday, came after Judge Sandra Klein didn’t buy Mr. Francis’s explanation for why he hasn’t returned the 2007 Cadillac Escalade or a 2012 Bentley Flying Spur.
Mr. Francis had said in court papers that he was “powerless” to return the autos after a Mexican strip club owner—angry that several Girls Gone Wild promotions fell through—took the vehicles.
Mr. Francis is appealing the sanctions. His attorney said in an email that the court decision is “outside the scope of proper civil contempt sanctions.”

WSJ.com: Bankruptcy Beat
(posted 4 days 23 hours ago)

Federal Reserve stress tests evaluate banks' ability to withstand severely adverse scenarios like the Great Recession. But the next downturn may pose different problems, according to Tony Hughes of Moody's Analytics.

BankThink
(posted 4 days 23 hours ago)
In this July 27, 2009, photo, Scott Rothstein is shown in his former office.
Associated Press

More than four years after Scott Rothstein’s $1 billion-plus Ponzi scheme came to light, a bitter turf war between representatives of his fraud victims and his creditors has finally been resolved.
A recently reached settlement between federal prosecutors and bankruptcy officials should bring an end to a long-running fight over how to divvy up the fruits of Mr. Rothstein’s fraud among fraud victims and creditors of his now-defunct law firm.
Ever since Mr. Rothstein’s arrest and the bankruptcy filing of his Florida law firm in late 2009, prosecutors and bankruptcy lawyers have bickered over whether Mr. Rothstein’s luxury cars, watercraft, jewelry, cash, real estate and other assets were his personal property or property of the law firm.

WSJ.com: Bankruptcy Beat
(posted 4 days 23 hours ago)

As a result of the sheer number of legal and factual issues involved in many chapter 11 cases, bankruptcy judges can sometimes find themselves as captives of the parties; they may not appreciate the significance of an issue or a provision buried in a longer document unless it is properly presented. Thus, it is imperative that counsel flag the key issues for the court. Failure to do so risks severe consequences for parties in interest, as exemplified by In re Lower Bucks Hospital.

(posted 5 days 18 min ago)

Int’l Union v. Visteon Corp., No. 1:13-cv-01742-RGA, 2014 WL 3547014 (D. Del. July 18, 2014)
Through this decision, Delaware District Court Judge Andrews retained jurisdiction over a post-confirmation proceeding commenced by a group of retirees formerly employed by Visteon Corporation (“Visteon”). Read More ›
Tags: Post-Confirmation Jurisdiction

Delaware Bankruptcy Insider
(posted 5 days 23 min ago)
A customer orders food at the Union Station location of Sbarro in Washington, D.C., in March.
Alex Wong/Getty Images

The family of a man shot to death while finishing his shift at a Little Rock, Ark., Sbarro store received a small measure of relief from the pizza chain’s bankruptcy judge on Monday.
Judge Martin Glenn of U.S. Bankruptcy Court in Manhattan lifted a provision of Sbarro’s bankruptcy-exit plan so the estate of the late Christian Ellis Hayes can go after the company’s liability insurance in an Arkansas lawsuit.

WSJ.com: Bankruptcy Beat
(posted 5 days 1 hour ago)

8632883494_62b7ddd71f_zWe’ve had a string of them….
[Hint: in a small practice, a "string" means "three. " ]
But three clients in the past month with confirmed Chapter 13 plans have contracted to sell their homes without mentioning it to us, their attorneys.
The degree of chaos varied:  inadequate time to get approval of the sale from the trustee within the contractual closing date;  mortgage stripping issues when the plan is paid off early; and taxing authorities who decided to claim the post petition appreciation.
But the bigger problem is clear:  operating successfully in Chapter 13 requires debtors to absorb a bunch of information about how bankruptcy works.

  • What can they, and can’t they, do without prior consent?
  • What does the vesting option mean in the real world?

When is the best time to learn?
When we first meet prospective debtors, we’re dealing with people experiencing stress, shame, and overload.
Clients are overwhelmed with the information they must process on bankruptcy choices, procedure, and consequences.
When the case is confirmed, and all the client has to do (they think) is make the plan payments, they relax and tune out.

Bankruptcy Mastery
(posted 5 days 1 hour ago)

You might think overhead expenses as a percentage of average assets decline as institutions get bigger. You'd be wrong.

BankThink
(posted 5 days 1 hour ago)

Approximately 60% of S&P 500 companies provide shareholders with the right to call special meetings. Coupled with the move away from classified boards and toward annual director elections, which generally permit shareholders to remove directors for cause, there has been increasing concern that companies are dismantling their defensive mechanism and leaving themselves vulnerable to activist attacks. 

(posted 5 days 1 hour ago)
Reuters

Two former Dewey & LeBoeuf LLP executives have settled a civil suit brought by the defunct firm’s bankruptcy trustee to recover nearly $22 million, according to a Tuesday court filing. Law Blog 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.”)
The Mt. Gox bankruptcy trustee said he would think about returning the company’s remaining bitcoins unconverted, The Wall Street Journal reports.

WSJ.com: Bankruptcy Beat
(posted 5 days 1 hour ago)