Clinton County Treasurer v. Wolinsky, 511 B.R. 34 (N.D.N.Y. 2014) – A chapter 7 trustee sought to avoid a property tax foreclosure as a fraudulent transfer and then to recover damages from the foreclosing county. The bankruptcy court agreed that the … Continue reading →

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In RECOMMENDED READING: What Can a Creditors Committee Do?  Prevent the DIP Lender From Making Off With Assets That Could Help Pay Unsecured Creditors, the Editorial Staff of Commercial Bankruptcy Litigation presents an objection filed by a creditors committee against a proposed financing of a debtor.  The objection illustrates how a committee can protect unsecured creditors from a serious threat to their recovery in a bankruptcy case.
Read the full article here or visit www.commercialbankruptcylitigation.com for more information.

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The Securities and Exchange Commission has launched a broad examination of alternative mutual funds, kicking off regulatory scrutiny of one of the hottest and most controversial investment products to be offered to small investors. AIMkts examines a growing trend – alternatives, and in this case, alternative mutual funds – in light of the recent SEC investigation affecting small investors.
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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ISS has launched a new Equity Plan Data Verification portal to better reflect the most up-to-date data for investors voting on equity plans. While this process is optional for issuers and does not affect whether they receive ISS recommendations, given that issuers frequently criticize the proxy advisory firms for having errors in the voting reports, this portal represents a unique opportunity to ensure those errors are minimized, especially in the complex area of equity plan proposals. Favorable proxy advisory firm recommendations can be crucial to the passage of those plans.

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Investigations trying to unwind the machinations of Bernie Madoff’s Ponzi scheme in 2009 were surprised to find what appeared to be another Ponzi scheme inside it, and the father-and-son team that were running that scam this week pleaded guilty. MarketWatch’s Sitel Patel joined the MoneyBeat show with details.

WSJ.com: Bankruptcy Beat
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We’ve previously focused here and here on the split in authority analyzing whether provisions in LLC operating agreements that automatically strip members of their membership interests upon a bankruptcy filing are unenforceable ipso facto provisions.  Whether an LLC operating agreement is viewed by the court as property of the debtor’s estate or an executory contract influences the analysis and the ultimate answer.  Some courts have analyzed LLC operating agreements as property of a debtor’s estate under section 541 of the Bankruptcy Code and conclude that federal bankruptcy law preempts any ipso facto clauses found in such agreements, making them unenforceable; other courts have analyzed LLC operating agreements as executory contracts and conclude they are subject to section 365’s general prohibition on ipso facto clauses and, in certain cases, its exception permitting ipso facto clauses to operate where “applicable law” protects the non-debtor party from being required to accept performance from an assignee. 

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The time spent preparing these reports has increased exponentially over the years, leaving bankers with less and less time to help customers, and communities, prosper. Allowing highly rated banks to file short-form call reports could significantly ease that burden, writes the ICBA's Camden Fine.

BankThink
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The division of the debts of a failed marriage, however carefully crafted at divorce, can be utterly destroyed if one of the former spouses files a Chapter 13 bankruptcy.
A Chapter 13 discharge is double barreled.  It will eliminate the debts that the filing spouse owes to creditors.  It also wipes out any obligation to the debtor’s former spouse to shield that spouse from those debts.
It gets worse:  any obligation of one party to pay the other to equalize the division of assets can be wiped out in a Chapter 13.  (Support debts survive; they aren’t dischargeable anywhere, any time.)
All parties, the divorcing spouses and their family law attorneys, need to consider the impact on the division of assets and liabilities if either spouse drops the bankruptcy bombshell.
Debts divided and protection promised
Where both spouses are liable on a debt, the divorce agreement often assigns the debt to one spouse and imposes on that spouse an obligation to indemnify the other spouse.

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Banks can use advanced database marketing techniques to identify current customers who may be shopping for a mortgage, writes Garth Graham.

BankThink
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