NORTH OF THE BORDER UPDATE
This article has been contributed to the blog by Ziyi Shi. Ziyi Shi is an associate cross-appointed to the Corporate Group and the Insolvency Group of Osler, Hoskin & Harcourt LLP.
In lengthy insolvency proceedings, interest accrued on existing claims during the “post-filing” period can represent a substantial portion of the debtor’s estate. In Re Nortel Networks Corporation et al, 2014 ONSC 4777, the Ontario Superior Court (the “Court”) ruled on whether the holders of unsecured bonds of the now-defunct Nortel group (“Nortel”) could assert a claim to post-filing interest in proceedings under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”).
The ensuing decision, in which Justice Newbould of the Court rejected the post-filing interest claim on the basis of the Canadian “interest stops” rule, could be of consequence for future rulings under both the CCAA in Canada and Chapter 11 proceedings in the US.
BACKGROUND

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The Office of the Circuit Executive for the United States
Third Circuit announced today that Laurie Selber Silverstein, Esq., of Potter
Anderson Corroon LLP, has been tentatively selected to fill Judge Walsh’s
vacant seat on the Delaware Bankruptcy Court following His Honor’s retirement
at the end of this year.  Ms. Silverstein currently heads the Bankruptcy
and Corporate Restructuring practice of Potter Anderson and has over 27 years
of experience in the field. Read More ›
Tags: Announcements

Delaware Bankruptcy Insider
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facebookHistorically, people who have experienced crushing debt have faced seemingly endless harassing phone calls from debt collectors.  Consumer protections are in place to help limit the worst of these calls.  Debt collectors have now moved on to a new technology to attack Americans who struggle to make ends meet.  Now the collectors have taken to social media.
Debt Collectors on Facebook?
The Pittsburgh Post-Gazette reported on the case of a man who says his experience with a collection agency that was hired to collect his student debt went from being merely annoying to borderline cyber-stalking.  The man’s student debt had ballooned well into six-figures due to non-payment, so in 2012 he hired an attorney and accountant to set up a payment plan.  He thought he was taking the proper steps to resolve the situation, and that harassment from collectors would stop.

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On October 1, a bankruptcy judge ruled that the pension agreement between Stockton, California and Calpers, California’s massive state-run pension fund for public employees, is an executory contract that can be rejected in bankruptcy. Judge Christopher Klein of the Eastern District of California found that California laws designed to protect Calpers from municipal bankruptcies could not be enforced once a city entered bankruptcy.  The ruling came during a portion of the confirmation hearing on Stockton’s plan to exit Chapter 9 bankruptcy, the remainder of which has been continued until October 30. Stockton, which declared bankruptcy in 2012, had spent millions to revitalize its downtown in the years before the recession but was hit hard by the foreclosure crisis. The city is attempting to reorganize more than $900 million of long-term debt.

Absolute Priority
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Unless regulators coordinate their efforts to reform banks' home lending, mortgage servicing and remittance businesses, American consumers will continue to lose access to affordable financial services.

BankThink
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This Sept. 22, 2011 file photo shows the Trump Taj Mahal Casino Resort in Atlantic City, N.J.
Wayne Parry/Associated Press

Carl Icahn will move ahead on his plan to take over the Trump Taj Mahal even if the union representing more than 1,100 casino workers goes on strike, Allan Brilliant, attorney for the billionaire, told a bankruptcy judge Tuesday. 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.”)

WSJ.com: Bankruptcy Beat
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Last Wednesday, an 8-K from Icahn Enterprises L.P. reported that its chairman, Carl Icahn, intends to use Tumblr, Facebook, Twitter and a particular website (www. www.shareholderssquaretable.com) to communicate about the company and “other issues.” The 8-K acknowledges that it is possible that the information he posts could be deemed to be material information, and therefore the company encourages investors, the media and other interested parties to review this information along with traditional investor relations communications channels such as its own website, SEC filings and press releases.  

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Receiving Wide Coverage ...

Big Changes at Citi: Citigroup probably won't want to include this week in its highlights reel. Its Mexican unit, Banamex, is embroiled in another scandal; not unrelatedly, reports are circulating that Manuel Medina-Mora, the bank's head of consumer banking and chairman of Banamex, is planning to step down; and in a separate decision, the so-called "everywhere bank" is shutting down businesses in 11 countries, including El Salvador, Japan and Egypt. The Times...

BankThink
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Finding the right financial advisor can make a significant impact on your investment dollars. Are you approaching the financial advisor hunt in the wrong way? AIMkts has advice for how to begin your search.

Read the entire article here.
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Here’s the latest news and events from DailyDAC, LLC. Don’t forget to check out the newest listings on the Opportunistic Deal Database and the Mature Deal Database!
Click here to read the full newsletter.

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