Party-goods supplier Event Rentals Inc. is kicking off the week in bankruptcy with a Monday auction of its assets.
A group of the company’s senior lenders, including Cerberus Capital Management, has been approved as the lead bidder with a $124 million credit bid. If it emerges as the winner, the lender group would forgive Event Rentals’ debt in exchange for the company’s assets.
Event Rentals filed for bankruptcy protection on Feb. 13 with roughly $148 million in assets and $246 million in liabilities. The company blamed its financial problems on an ill-timed growth spurt and the reluctance of corporations in recent years to throw lavish parties.
On Tuesday, plus-size women’s clothing retailer Ashley Stewart will seek a Trenton, N.J., bankruptcy court’s blessing of its proposed sale to Clearlake Capital Group for approximately $18 million. Bankruptcy Beat
(posted 4 days 21 hours ago)
Downtown Detroit
Paul Sancya/Associated Press

Wayne State University is trying to pull college kids who are home in Michigan for the summer into the heart of Detroit with a new class about the city’s quest for financial redemption.
College officials are advertising the 13-week class, “Detroit: Metropolis in Transition,” both to their own students and to students at other universities who want to take a summer class. It’s a good opportunity, they said, for the school to pull outsider students into the heart of the 700,000-resident city, which filed the largest municipal bankruptcy in U.S. history in July.
Detroit officials have blamed the city’s financial problems on the loss of residents who fled in large numbers for safer suburbs and took their tax dollars with them. But the 28,000-student school is still rooted in downtown Detroit.
“It’s really booming,” said college spokesman Mike Brinich. Bankruptcy Beat
(posted 4 days 22 hours ago)

A recap of the informed opinions (and the discussions they generated) on BankThink this week.

(posted 4 days 23 hours ago)

flowers spring
Easter is about redemption, forgiveness and a fresh start with a new life.
Guess what ? … bankruptcy is about the very same thing.
As you enjoy this Easter holiday weekend with family and friends, focus on those relationships and think about changing your life and removing the burden of debt so you can more richly enjoy those relationships without the constant worry of debt and debt collectors.
You don’t have to live like this … and we can help. Call today 1-888-651-9353
photo credit: Bert Kaufmann via photopin cc

(posted 5 days 1 min ago)

In no particular order, here are my Top 5 favorite references (overt or implied) to bankruptcy law in pop culture:
1.  Michael Scott “Declares” Bankruptcy
Filing a petition might be easy, but it’s not this easy…

2.  Homer Simpson’s Company Animotion Declares “Super-Duper Bankruptcy”
Kent Brockman: “Turning to the stock market, animotion is up an eighth…”
Homer: “Yes!”
Kent Brockman: “After plunging 75 points this morning.”
Homer:  “I hope plunging means up, and 75 means 200.”
Kent Brockman: “The firm declared super-duper bankruptcy. Which is terrible news for the company’s only stockholder…”

3.  Conan O’Brien’s Parade of Offensive Stereotypes Laments Sbarro’s Chapter 11

4.  It’s a Wonderful Life — Bailey Building & Loan

Creditors' Sidebar
(posted 5 days 4 min ago)
In this Tuesday, April 15, photo, Homeland Security Investigators raid telecommunications and marketing firm TelexFree in Marlborough, Mass.
Alan Jung/Associated Press

The Securities and Exchange Commission has filed charges against a Massachusetts telephone marketing company for allegedly running a pyramid scheme that targeted primarily Dominican and Brazilian immigrants. Read the DBR 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.”)
Mt. Gox suitors are launching a last-ditch effort to revive the bitcoin exchange after it said it would move to liquidate, WSJ reports. Bankruptcy Beat
(posted 5 days 9 min ago)

Bank of New York Mellon v. GC Merchandise Mart, L.L.C. (In re Denver Merchandise Mart, Inc.), 740 F.3d 1052 (5th Cir. 2014) – A lender sought to recover a prepayment premium of $1.8 million after acceleration of a note due to … Continue reading →

(posted 5 days 3 hours ago)

Last year I wrote a post criticizing an article by Yale Law School professor Bruce Ackerman in which he argued that a third year in law school was more or less essential to any hope one might have to function as an intelligent citizen.  In compensation, I heartily recommend this article from a different Yale Law School blog to everyone. The author is Dan M. Kahan, and if only all law school faculty were of this mind.

Necessary and Proper
(posted 5 days 16 hours ago)

Sounds amazing, right ?
But the facts are pretty much established that it will.
How do we know this ?
For the first few months, most clients see no change in their credit score. After about the first year or so, folks will generally see their credit score improve and continue to improve year after year as long as they establish good financial practices and goals.
What ?! You are thinking: “But I thought filing bankruptcy totally destroyed my credit ?”
But it really doesn’t
I always tell clients that there are three reasons we know this.
#1 Having practiced bankruptcy law for the past 25 years, we have had folks that have filed, and need to come back several years later and file again. Since the first bankruptcy, they have incurred additional credit such as home loans, car loans, and other debt and for example, may have a loss of income, and have to file bankruptcy again. The point is they were able to obtain credit after the first bankruptcy.

(posted 5 days 16 hours ago)

The WSJ “Real Time Economics” blog carried a post Monday, April 14, headlined “Hedge Funds Help Fan Financial Crises: SF Fed Paper” that referred to an article in the San Francisco Fed Letter released earlier in the day.  The article is written by a visiting scholar, Reint Gropp, and summarizes a paper he and others have written that I think I found online ( I will refer to the authors collectively as “Gropp” for expediency). If that is not the actual paper, it is a draft or earlier iteration thereof.

Necessary and Proper
(posted 5 days 17 hours ago)