The new Apple Watch is pictured during an Apple event at the Flint Center for the Performing Arts in Cupertino, Calif., in this file picture taken Sept. 9.
Reuters

A much-anticipated hearing in the nascent bankruptcy of Apple Inc. supplier GT Advanced Technologies Inc. is scheduled to take place Tuesday in U.S. Bankruptcy Court in Springfield, Mass. At the hearing, a judge will hear why GT Advanced believes it should be allowed to file information about what led to the sapphire producer’s bankruptcy under seal and out of the public eye.
U.S. Bankruptcy Judge Henry Boroff said at a Wednesday hearing that he is having difficulty understanding what should be kept confidential in the documents, saying he is leaning toward unsealing as much as he can.

WSJ.com: Bankruptcy Beat
(posted 5 days 11 hours ago)

For companies considering a review of the audit committee disclosure in proxy statements, the recent review by EY's Center for Board Matters provides several insights on some of the additional information that Fortune 100 companies included in 2014. We previously discussed some of the background related to the increased disclosure here.

(posted 5 days 11 hours ago)
Joe Louis Arena in Detroit
Getty Images

The city of Detroit is tearing down the Joe Louis Arena, where the Detroit Red Wings play, and giving the redevelopment efforts to its holdout creditor, The Wall Street Journal reports.
The public bus operator in Santiago, Chile, filed for bankruptcy Thursday with plans to restructure $368 million in debt. 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.”)

WSJ.com: Bankruptcy Beat
(posted 5 days 11 hours ago)

clotheslines-clues1-storytiming
Work full time for a governmental agency or non-profit, and you can discharge your federal student loans after 10 years of payments.
Regardless of the balance.
Tax free.
And regardless of the job you hold in a qualifying employer.
Rich man, poor man,
Beggar man, thief.
Doctor, lawyer,
Indian chief !

Not sure about these job titles from the nursery rhyme, but the student loan forgiveness isn’t confined to the professionals at these agencies.
The IT person, the school janitor , the administrator and the bus driver are equally entitled to a public service loan forgiveness.
It’s easy to know if you work for a governmental agency of some kind, but drawing the line between non profits and 501(c)(3) entities may be harder.

(posted 5 days 12 hours ago)

elderly cosignor
Would allowing private students to be discharged in bankruptcy really solve the problem?
The CFPB (as well as just about anyone else who thinks about student loans on a regular basis) recognizes that the private student loan market is a lion’s den for students who need to borrow for higher education.
The loans come with higher interest rates, offer none of the programs for income-based repayment or forgiveness of their federally-guaranteed counterparts, and, consequently, suffer a higher rate of default.
Student borrowers, meanwhile, are faced with an ever-increasing cycle of collection activities culminating in lawsuits, judgments and enforcement mechanisms such as wage garnishment and bank account levies.
What’s to be done?
One recommendation set forth by the CFPB is that Congress amend the bankruptcy code to allow borrowers to discharge their student debts without the need for a separate judicial determination.
But the consumer watchdog stops short of recommending an across-the-board discharge of private student loans. After all, the agency recognizes that the big banks aren’t going to let that slide without a major fight.

(posted 5 days 12 hours ago)

Wells Fargo Bank, N.A. v. 804 Congress, L.L.C. (In re 804 Congress, L.L.C.), 756 F.3d 358 (5th Cir. 2014) – After an oversecured creditor obtained relief from the automatic stay and foreclosed on some property, the bankruptcy court asserted jurisdiction … Continue reading →

(posted 5 days 15 hours ago)

The perception that public employee pension obligations cannot be impaired in bankruptcy suffered a damaging blow several months ago in the City of Detroit bankruptcy case, and has now been fatally wounded by the recent ruling of Judge Christopher Klein in the Chapter 9 case of Stockton, California.  Although Judge Klein’s decision is not likely to lead to a spate of municipal bankruptcy filings in an effort to escape burdensome pension liabilities (indeed, it may not even lead to the actual diminishment of pension claims in the Stockton case itself), this is an important decision.  Unless reversed on appeal, it will alter the legal landscape for distressed municipalities.  Together with the similar Detroit decision, the Stockton ruling will affect negotiations among municipalities, employee unions, pension system representatives and financial creditors across the country. 

Bankruptcy Law Insights
(posted 6 days 5 hours ago)

The ability of a foreign debtor to avail itself of the protections of the Bankruptcy Code, such as the automatic stay, with respect to its property located within the United States is one of the most fundamental and valuable tools available to foreign debtors with domestically located property. When a foreign debtor obtains “recognition” of its principal insolvency proceeding by U.S. courts, section 1520 of the Bankruptcy Code does not only provide the foreign debtor the protections of the automatic stay, but also requires the foreign debtor to obtain approval under section 363 of the Bankruptcy Code with respect to any transfer of an interest in property within the territorial jurisdiction of the United States.
It is easier to say with certainty that certain types of property are “within the territorial jurisdiction of the United States” than other types. But what about a foreign debtor’s claim against a domestic debtor? About a year and a half ago, we blogged about a decision in which the United States Bankruptcy Court for the Southern District of New York ruled that a foreign debtor’s claim against a domestic debtor was not “located” in the United States. Since then, the decision was appealed to the United States District Court to the Southern District of New York, which agreed with the bankruptcy court.

(posted 6 days 7 hours ago)

Banks have never before had to establish policies and procedures at the granular level required under the new regulation. Doing so in a timely manner will be a challenge for most institutions. For some, it will be impossible.

BankThink
(posted 6 days 9 hours ago)