The overly complex Dodd-Frank Act came about because policymakers failed to tie regulation and regulatory structure together effectively. The next step in financial reform should be to simplify Â-- and perhaps consolidate Â-- regulatory processes.

(posted 6 days 17 hours ago)

341 notice annotated_Page_1You’re looking at bankruptcy official form B9.
It arrived in your mail because someone has filed bankruptcy and listed you on the schedules of a newly filed bankruptcy case.
Most likely, the debtor owes you money or you have an open claim of some sort against the bankrupt.
Your rights against the debtor have just changed.
Bankruptcy law, federal law, is now prepared to upend the debtor/creditor relationship.
You need to find all the information crammed into this single page so you can determine what, if anything, to do next. (Double click the image and you’ll get an enlarged version; hit the back arrow to come back here.)
1.  Who’s filed bankruptcy?
The name of the person  who filed the bankruptcy case and their mailing address is number 1 on our notice.  Any fictitious business names or prior names would appear here as well.

(posted 6 days 17 hours ago)
This Oct. 24, 2014 photo shows the Trump Taj Mahal Casino Resort in Atlantic City N.J.
Associated Press

A judge is threatening to boot Trump Entertainment Resorts Inc. out of Chapter 11 bankruptcy, due to the lack of a “reasonable likelihood of rehabilitation” for the gambling company. 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.”)
The Associated Press reports on Brookfield canceling its plan to buy Atlantic City, N.J.’s Revel Casino Hotel. Bankruptcy Beat
(posted 6 days 19 hours ago)

A government tool for unloading failed bank assets and minimizing FDIC losses may be used as a vehicle to publicly subsidize private gains in the proposed merger between CIT Group and OneWest Bank.

(posted 6 days 19 hours ago)

Receiving Wide Coverage ... Revolving Door?: More evidence has emerged of conflicts of interest involving the New York Fed and Goldman Sachs. This time it's an indication of a revolving door between the two institutions, in which an employee leaves one and quickly joins the other, bringing sensitive market information along for the ride. Goldman fired two workers after the bank learned that one had shared confidential information with his colleagues about the New York Fed'sÂ...

(posted 6 days 20 hours ago)

In a prior post, we discussed the commencement of approximately 72 preference actions filed in the Quantum Foods bankruptcy proceeding by the Creditors Committee.  In the preference actions at issue, the Creditors Committee seeks to avoid and recover purported preferential transfers under Sections 547 and 550 of the Bankruptcy Code, and purported fraudulent transfers under Section 548 of the Bankruptcy Code.
Since the filing of these adversary actions, the Court has scheduled a pretrial conference for December 9, 2014 at 2:00 p.m.  The purpose of a pretrial conference, among other things, is to enter a scheduling order to govern relevant timelines of the litigation.  It is therefore important for any preference defendant to fully review any proposed scheduling order in advance with counsel to determine whether such deadlines and provisions are consistent with scheduling orders commonly entered by the Delaware Bankruptcy Court.

(posted 1 week 8 hours ago)

American Bankruptcy Institute “ABI” Resident Scholar Prof. Lois Lupica interviews Jake Halpern, author of the hot new book Bad Paper: Chasing Debt from Wall Street to the Underworld.   It is a riveting tale of the seamy world of debt collecting and the shady characters at the center of the multi-billion dollar business.
Skull& Crossbones - goldThis book is based on the real underworld of the debt collection schemes and artifices.  According to the interviewer 77 million people in the US have at least one debt in collections.  The average debt is $5,500.  Typically, after a debt is more than 180 days delinquent the original creditor will sell it for “pennies on the dollar”.  The debt buyer rarely receives any back paperwork  such a a copy of the original contract accounting.  Instead, the debt is listed on a spreadsheet along with thousands of other debts.   The original creditor specifically disavows any responsibility for the accuracy of the debt.

(posted 1 week 11 hours ago)
Cars drive by the Chicago Theatre April 3, 2011 in Chicago.
Associated Press

A Chicago sign maker that’s done work for the Windy City’s theaters and stadiums, including the famed Chicago Theatre marquee, has filed for bankruptcy.
White Way Sign & Maintenance Co. aims to restructure and emerge from Chapter 11 protection, its bankruptcy attorney recently told the Chicago Tribune.
White Way, which has remained in the same family since its 1916 founding, has had a hand in everything from helping with the most recent version of the historic Chicago Theatre sign to making and installing the Chicago White Sox’s current video scoreboard at U.S. Cellular Field. It has also lit up Michigan Avenue for holiday shoppers. Bankruptcy Beat
(posted 1 week 15 hours ago)

You might recognize the last name “Underhill” from the 1980’s movie, Fletch. In the movie, the main character, Irwin “Fletch” Fletcher overhears snobby country club member Mr. Underhill speaking rudely to a waiter. To get revenge, Fletch famously tells the waiter he’s “with the Underhills” and proceeds to charge a Bloody Mary, a steak sandwich and…a steak sandwich to the Underhills’ tab. In the recent case of In re Underhill (no relation to the Fletch Underhills, in case you were wondering), the United States Court of Appeals for the Sixth Circuit decided that it, too, was “with the Underhills” when it reversed two lower court rulings and found (in the Underhills’ favor) that debtors’ tortious interference claim was not properly includable in the debtors’ pre-bankruptcy estate.

(posted 1 week 15 hours ago)

For years, it has been the rule in the Ninth Circuit that a chapter 11 plan cannot discharge or otherwise affect the obligation of a non-debtor owed to a third party. This view interprets section 524(e) of the Bankruptcy Code, which provides that “the discharge of a debt of the debtor does not affect the liability of any other third entity on, or the property of any other entity for such debt,” to specifically prohibit the permanent release, discharge, or injunction of non-debtors. See In re Lowenschuss, 67 F.3d 1394, 1401 (9th Cir. 1995); In re Western Real Estate Fund, Inc., 922 F.2d 592, 600 (10th Cir. 1990).  In Fireman’s Fund Insurance Company v. Plant Insulation Co. (In re Plant Insulation Co.), 734 F.3d 900 (9th Cir. 2013), the Ninth Circuit seems to dilute that principle as it applies to mass tort claims.

Absolute Priority
(posted 1 week 17 hours ago)