Wednesday, March 20, 2013

Nebraska man pleads guilty to bankruptcy fraud

OMAHA, Neb. —An eastern Nebraska man has pleaded guilty to a federal charge of bankruptcy fraud and faces up to five years in prison when he's sentenced this summer. Read the rest at: http://www.ketv.com/news/local-news/Nebraska-man-pleads-guilty-to-bankruptcy-fraud/-/9674510/19391968/-/st16gdz/-/index.html#ixzz2O8v0tDfq

GTM Research on Suntech’s Bankruptcy: An Optical Illusion

We've been covering Suntech's spiral into bankruptcy as the firm looks to transform into a state owned entity. Meanwhile, Shyam Mehta, GTM Research solar analyst, offers some observations: Ramifications for Suntech: On one hand, the Suntech bankruptcy is an unprecedented event: it is the first company based in mainland China to default on public debt, and the first established Chinese solar firm to enter into insolvency. However, at the same time, all signs point to the city of Wuxi taking over Suntech's Wuxi-based manufacturing subsidiary through one of its holding companies, meaning that Suntech is likely to continue operations as a solar manufacturer. Wuxi's Stake: The insolvency proceedings are to be expected because the city of Wuxi has no incentive to pay back Suntech's bondholders or other creditors or salvage any value for Suntech's shareholders. Its only motivation is to maintain the jobs created in Wuxi by Suntech's manufacturing operations. Chinese Solar Bailouts: If Wuxi does indeed take over Suntech's manufacturing operations as expected, it will serve as yet another case of a near-insolvent Chinese solar firm being bailed out by its local government, following in the footsteps of LDK Solar (Xinyu), Shanghai Chaori Solar (Fengxian) and CNPV Solar (Dongying). As time goes by and the balance sheets of other Chinese solar firms continue to deteriorate, we are likely to see this pattern repeated again and again, whether Beijing approves of it or not. City and district governments will likely do all they can to help their solar companies continue operating and maintain their workforces. Consolidation in Name Alone: As regards the fact that eight Chinese banks filed a petition for insolvency against Suntech, which is what triggered the event, the superficial reading is that Beijing and higher-level state lenders are willing to allow even established Chinese solar companies to fail to allow much-needed consolidation in China to occur. However, as surmised above, it is likely that Suntech will continue operating, effectively as a Wuxi-owned company, which undermines that notion. For consolidation to occur, we have to see firms actually exiting the market or merging/acquiring other firms. Otherwise, the situation will not change. Read the rest at http://www.greentechmedia.com/articles/read/GTM-Research-on-Suntechs-Bankruptcy-An-Optical-Illusion

Directory firms Dex One, SuperMedia file for bankruptcy

(Reuters) - Dex One Corp (DEXO.N) and SuperMedia Inc (SPMD.O) have both filed for bankruptcy protection after the directories publishers failed to win the full support of senior secured lenders for a change to a credit agreement needed to complete their planned merger. Dex One, formerly known as R.H. Donnelley Corp, and SuperMedia agreed last year to combine their businesses, with Dex One shareholders expected to own about 60 percent and SuperMedia shareholders the rest of the combined company. Unusual for bankruptcies, stockholders of both companies will not be legally impacted by the Chapter 11 filings, and the shares of both companies rose sharply on Monday. The bankruptcy filings are the second ones in four years for each of the companies. As part of the proposed deal, Dex One and SuperMedia agreed with a committee of senior lenders to amend their credit agreements to extend the maturity dates of the companies' senior secured debt up to 26 months until December 31, 2016. Read the rest at http://www.reuters.com/article/2013/03/18/us-dexone-bankruptcy-idUSBRE92H05Q20130318

Cyprus works on Plan B to stave off bankruptcy

The Cypriot government and the country's central bank were working Wednesday on an alternative proposal to stave off bankruptcy, a day after its parliament rejected an initial plan to raise billions of euros by seizing up to 10 percent of people's bank savings. Tuesday's decisive rejection of the plan to take a slice of all deposits above 20,000 euros has left the country's bailout in question and fueled fears that the Cypriot economy is on the cusp of bankruptcy and could potentially have to leave the euro. That scenario that could roil global financial markets as well as endanger deposits in the country even further. Government spokesman Christos Stylianides said a meeting was underway at the central bank to discuss an alternative plan for raising funds, but also for reducing the 5.8 billion euros ($7.5 billion) that must be found domestically. Cyprus' Orthodox Church offers to mortgage assets to help secure bailout Royal Air Force sends funds to cash-strapped Cyprus Cyprus lawmakers reject bank tax bill President Nicos Anastasiades was also meeting with the representatives of his country's potential creditors the International Monetary Fund, European Central Bank and European Commission. The three, collectively known as the troika, must sign off on any Plan B the Cypriots come up with if it is to be approved as part of the bailout. Read the rest at http://www.cbsnews.com/8301-505123_162-57575299/cyprus-works-on-plan-b-to-stave-off-bankruptcy/

Frontiers LA Files For Bankruptcy

Frontiers Media, the financially troubled publisher of Southern California’s leading gay magazine, has filed for bankruptcy protection from its creditors. The filing, made March 6 in the U.S. Bankruptcy Court for the Central District of California, claims Frontiers has liabilities of $3.2 million and assets of $342,000, only $58,000 of which is in cash. Frontiers made a Chapter 11 filing, which, if approved by the bankruptcy judge, will allow it to continue operating. A bankruptcy trustee and the bankruptcy court will decide which of Frontiers’ creditors are paid and how much they receive. The company’s largest creditor is Wells Fargo Bank, to which it owes $1.6 million. Another major creditor, owed $242,000, is the estate of Mark Hundahl, who, until his death in December, was co-owner of Frontiers LA with publisher and owner David Stern. Stern himself argues that he is owed $191,600. Other major creditors are printers, lawyers and the landlord for Frontiers’ offices at 5657 Wilshire Blvd. in Los Angeles. Frontiers also owes payments to freelance writers, some of whom haven’t been paid in several months. Its bankruptcy filing indicates it owes $5,560 to Frank Morales, associate publisher and ad director at Frontiers Media, and $3,942 to Dustin Tyner, managing director of integrated media. Payments owed to employees totaled $37,000 on March 6, according to the filing. Read the rest at http://www.wehoville.com/2013/03/20/frontiers-la-files-for-bankruptcy/

The billion-dollar cloud lingering over GM's bankruptcy

More than two years after General Motors received court approval for a plan to issue its old creditors stock in its shiny new self, a dispute among those creditors threatens to saddle the new company with almost $1 billion in liability. In a statement filed this week before U.S. Bankruptcy Judge Robert Gerber of Manhattan, the new company and warring creditor factions disclosed that mediation has failed to produce a settlement of creditor allegations that one group of noteholders extracted preferential treatment from the company as it teetered on the verge of Chapter 11 in 2009. The failure of mediation means that Gerber will be left to reach a ruling based on testimony he heard last fall in an adversary proceeding initiated by the trustee for GM's unsecured creditors. Depending on what the judge makes of the trustee's allegations that four distressed debt hedge funds - Elliot, Appaloosa, Aurelius and Fortress - forced old GM to accede to what amounts to a $367 million fraudulent conveyance, there's even an outside chance that GM's entire 2009 asset sale could be voided. That's a very remote prospect, but the mere possibility shows the risk to new GM in this little-noticed case. The backstory on the hedge funds and their deal with old GM is incredibly complicated, but I'll boil it down. According to the trustee's complaint, filed in March 2012, distressed debt investors began snatching up notes issued by a GM subsidiary called Nova Scotia Financing Company in late 2008 and early 2009, when GM seemed to be well on its way to Chapter 11. Nova Scotia's only real assets were two intercompany loans to GM Canada, which was operating in the same straits as its parent company. GM did not want GM Canada to go into bankruptcy, presumably because it didn't want to deal with bankruptcy proceedings in two different countries at the same time. So the hedge funds that held Nova Scotia notes knew GM was desperate to resolve their potential claims against GM Canada. Days before GM filed for Chapter 11, the parent company loaned $450 million to GM Canada, earmarked for a deal with the Nova Scotia noteholders. Lawyers for GM and the noteholders negotiated right up to - or possibly just after - GM's filing on June 1, 2009. Indeed, the precise timing of their actual settlement is a matter of dispute (and legal consequence). The trustee for GM's other secured creditors claims that the final agreement was not completed until after GM filed for Chapter 11, which would make the deal subject to the bankruptcy court's approval. GM says it reached the agreement minutes before it filed its Chapter 11 petition. (New GM's lawyers at King & Spalding have also argued that details of the settlement with the Nova Scotia noteholders were repeatedly disclosed in various documents early in the bankruptcy.) Read the rest at http://newsandinsight.thomsonreuters.com/Legal/News/ViewNews.aspx?id=72143&terms=%40ReutersTopicCodes+CONTAINS+'ANV'

Chinese banks force Suntech into bankruptcy

Solar panel maker Suntech said today that eight Chinese banks had filed a petition with a local court to declare the company’s Chinese operations bankrupt. Once the world’s biggest solar module manufacturer, Suntech’s Chinese subsidiary, Wuxi Suntech Power Holdings, owes $1.4 billion to Chinese banks, according to a presentation made to bondholders last November. This morning, Suntech had a market cap of $106 million. The Suntech saga is being watched closely as a bellwether for the global solar industry. Fueled by cheap government loans, Suntech, Yingli, Trina and other photovoltaic panel manufacturers ramped up production in recent years, sending panel prices plummeting 75% and capturing a large share of the worldwide market. China is now home to about 80% of global solar module manufacturing capacity. The Chinese solar expansion set off a boom in Europe and the US as installers took advantage of cheap solar panels to expand their business. The collapse of Suntech and other Chinese manufacturers could leave installers like SolarCity on the hook for hundreds of millions in warranties. Having helped build a global solar industry in less than a decade, the question now is whether the Chinese government will engineer its contraction to shrink capacity and allow the surviving companies to thrive. Read the rest at http://qz.com/65127/chinese-banks-force-suntech-into-bankruptcy/

High bidder for Grant farm backed organic grower before bankruptcy Read more: High bidder for Grant farm backed organic grower before bankruptcy - The Denver Post http://www.denverpost.com/breakingnews/ci_22834108/high-bidder-grant-farm-backed-organic-grower-before#ixzz2O8t4dR5V Read The Denver Post's Terms of Use of its content

Localization Partners on Wednesday was the high bidder for 770 acres of land leases and intangibles belonging to bankrupt Grant Family Farms. The consortium of investors, who last year fronted about $1.5 million to stave off the organic farm's bankruptcy, bid $45,000 for nine land leases. The investors also offered $40,000 for intangibles, including the farm's website domain, Grantfarms.com, customer databases and the brand names Grant Family Farms, Grant Family Farms Certified Organic Colorado, Owl Canyon, Rocky Mountain Sweet and Colorado's Finest. A U.S. Bankruptcy Court must approve the sale at a special hearing April 11. Bankruptcy trustee Joli Lofstedt said there were seven bidders, most of who were local. Bidding was held at the Louisville Recreation Center and lasted for about an hour. Read the rest at http://www.denverpost.com/breakingnews/ci_22834108/high-bidder-grant-farm-backed-organic-grower-before

Creditors of defunct TPG funds defend forced bankruptcy

March 20 (Reuters) - Creditors of defunct financing vehicles of private equity giant TPG Capital are escalating a battle over whether a dissolved entity can be forced into bankruptcy. In court papers filed on Monday, the creditors asked a bankruptcy judge to deny a bid by one of the financing vehicles to have an involuntary Chapter 7 bankruptcy petition dismissed. The creditors, a group of hedge funds led by SPQR Capital, filed the bankruptcy petition in December against TPG Troy LLC. TPG Troy argued last month that it could not be in bankruptcy because, essentially, it no longer exists. But SPQR and fellow creditors say dissolved companies are still liable for their debts. The creditors hold notes issued by subsidiaries of TIM Hellas, a Greek telecommunications company that was owned in part by TPG Troy. They claim they are owed 111 million euros ($143 million) after Hellas defaulted on the notes. The default, they argue, was caused by an "elaborate shell game" of money transfers orchestrated by TPG Troy to keep money out of creditors' hands. The default has led to an onslaught of litigation from the noteholders. According to court papers filed last month by TPG Troy, it faces 13 lawsuits in New York, California, Delaware and Europe, which it said amounted to "forum shopping" by its creditors. SPQR's attempt to use bankruptcy court to resolve the matter is just one more example of forum shopping, TPG Troy said. The TPG Troy case is not first one in which bankruptcy has been used as a way to resolve a technical financial dispute. In 2011, Zais Investment Grade Ltd VII, or ZING, was forced into bankruptcy by noteholders for the purpose of liquidating certain notes. ZING, an issuer of collateralized debt obligations, had no business operations, no officers, and no headquarters outside a Cayman Islands mailbox. Jared Stamell, a lawyer for SPQR and other creditors in the TPG Troy case, said the growing complexity of financial instruments has brought about unconventional uses of bankruptcy. Read the rest at http://newsandinsight.thomsonreuters.com/Bankruptcy/News/2013/03_-_March/Creditors_of_defunct_TPG_funds_defend_forced_bankruptcy/

After Bankruptcy, do I Owe on 2nd Mortgage?

Dear Bankruptcy Adviser, I filed a Chapter 7 bankruptcy that was discharged in 2009. I was paying my second mortgage loan to the bank for four years without a reaffirmation agreement. I never missed a payment during that time. I recently found out the bank wrote off that loan and gave it to a credit collection agency, which I have not heard from. If the bank wrote off the loan, it means the loan is defunct, correct? Would being in Chapter 7 also alleviate any lawsuits against me? Does it also mean the collection agency cannot legally do anything since I completed my bankruptcy? -Mike Dear Mike, Great questions, but you are not clear on a few major issues. I get this question a lot, and while I know you are just hoping to have some equity in your home, you still have to deal with the second mortgage. Based on the information you did give me, I'll try to answer your questions to the best of my ability. You are correct that the second mortgage lender cannot sue you. Because you received a discharge in your Chapter 7 bankruptcy and you did not reaffirm the loan, the lender no longer has the right to sue you to enforce its loan. You had to reaffirm the loan while your bankruptcy was active in order to re-establish liability. However, this is the key part of what you may not understand. When you received the first and second mortgage loans, the lender places a lien against the house for each loan. You have to pay both loans to own the home free and clear. In some states, the lender can sue you for failing to pay on either or both loans. The successful bankruptcy eliminates the lenders' right to sue you, but it does not remove the liens from the property. To remove the liens, you must pay the loans. Read the rest at: http://www.foxbusiness.com/personal-finance/2013/03/19/after-bankruptcy-do-owe-on-2nd-mortgage/#ixzz2O8sh2VkB

Suntech Unit Declares Bankruptcy

HONG KONG — Suntech Power, a Chinese manufacturer that became the world’s largest producer of solar panels by 2011 only to be battered by plummeting prices, announced on Wednesday evening that its main operating subsidiary had been pushed into bankruptcy by eight Chinese banks. Suntech was the Icarus of the solar panel industry, with production that soared year after year on heavy investment, as Western investors bought up its New York-traded shares and its international debt issues. Part of a massive Chinese government effort to dominate renewable energy industries, Suntech grew to 10,000 employees in its hometown of Wuxi and even set up a small factory in Arizona to do further assembly of panels there. But a 10-fold expansion of overall Chinese solar panel manufacturing capacity from 2008 to 2012 produced a three-quarters drop in solar panel prices, undermining the economics of the business. Rapid expansion of natural gas production in the United States and a curtailment of subsidies in the European Union also hurt solar panel prices, as did an American imposition last year of import tariffs totaling about 40 percent after an anti-dumping and anti-subsidy investigation. The European Union is also completing its own trade investigation of Chinese solar panel shipments that could lead to steep tariffs there as well. The Chinese banks quietly asked a court on Monday in Wuxi to declare the operating subsidiary, Wuxi Suntech, to be insolvent and begin restructuring it. The operating subsidiary notified the court on Wednesday that it did not object to the insolvency petition. Suntech Power, the parent, said that it was not filing for bankruptcy and would continue to honor warranties on the company’s solar panels. Read the rest at http://www.nytimes.com/2013/03/21/business/energy-environment/suntech-declares-bankruptcy-china-says.html

Bankruptcy court trustee claims dibs on World Series ring sold by Alex Rodriguez’s Cousin Yuri Sucart

Alex Rodriguez has enough problems trying to rehab from injury without having to deal with the exploits of now infamous cousin Yuri Sucart. Cousin Yuri can't even sell his Alex Rodriguez World Series ring without stepping into a pile of controversy. A South Florida trustee says in court papers filed on Tuesday that the diamond-studded ring belongs to Yuri Sucart's bankruptcy estate, not the collector who consigned it to Goldin Auctions. "We hope the case will be a home run for the creditors," said Eric Silver, an attorney for trustee Soneet R. Kapila. Sucart, of course, is best known as the man Rodriguez claimed persuaded him to use steroids during his tenure with the Texas Rangers. The Daily News reported earlier this month that Sucart, who worked as Rodriguez's driver and go-fer for several years, has become estranged from his famous relative and has even talked about suing Rodriguez, although it's not clear if he has a legal basis for a claim. Sources have told the News that Sucart sold the ring because he is tired of the notoriety that comes with being associated with Rodriguez - and because Sucart, who filed for bankruptcy in April 2011, needs the money. Read the rest at: http://www.nydailynews.com/sports/i-team/cousin-yuri-world-series-ring-belong-bankruptcy-estate-article-1.1294606#ixzz2O8s8DN2B

China Exclusive: Solar panel giant declares bankruptcy

WUXI, Jiangsu, March 20 (Xinhua) -- Leading solar panel maker Wuxi Suntech, a major subsidiary of the New York-listed Suntech Power based in the east China city of Wuxi, declared bankruptcy on Wednesday. In accordance with China's Bankruptcy Law, the Wuxi City Intermediate People's Court on Wednesday approved Wuxi Suntech's filing for bankruptcy following a joint application issued by the company's nine creditor banks on Monday. The company made no objection to the ruling. Founded in 2001, Wuxi Suntech supplies more than 95 percent of Suntech Power's products. Wuxi Suntech's total production capacity reached 2.4 gigawatts (GW) last year. As of February, Wuxi Suntech's credit balance of local and foreign currencies among its creditor banks totaled 7.1 billion yuan (1.14 billion U.S. dollars), a senior company manager said. The banks said based on market rules and the law, since the outstanding loans have been overdue and the company did not render a feasible repayment plan, declaring bankruptcy will protect their legal interests and maintain social stability. In order to revive the company, the banks also expect it to seek a third party for strategic reorganization, according to the manager. One of China's largest solar module makers, Wuxi Suntech was founded in 2001 by Shi Zhengrong, a prominent solar power scientist. In 2005, Suntech Power Holdings Co., Ltd., or Suntech Power, was founded and listed in New York. Read the rest at http://news.xinhuanet.com/english/china/2013-03/21/c_132249607.htm

Solar panel maker Suntech declares bankruptcy

BEIJING (AP) — Suntech, one of the world's biggest solar panel manufacturers, was forced into bankruptcy court Wednesday, the latest casualty of a painful slump in the global solar industry. Suntech Power Holdings said eight Chinese banks asked a court to declare it insolvent after the company missed a $541 million payment to bondholders last week. Suntech said it would not oppose the petition. The development is a dramatic reversal for a company that was a leading force in China's fast-growing renewable energy industry. Its founder, Shi Zhengrong, has seen much of his multibillion-dollar fortune evaporate. Read the rest at http://www.usatoday.com/story/money/business/2013/03/20/suntech-bankruptcy/2002429/

Suntech Is Pushed Into Chinese Bankruptcy Court

Solar-panel maker Suntech Power Holdings Co. STP -8.58% has been forced into Chinese bankruptcy proceedings, sparking questions about how U.S. investors will fare in the decline of one of China's most prominent companies. Given Suntech's status as a major employer and a key player in an emerging industry—it once was the world's largest supplier of solar panels—Chinese authorities might be reluctant to let the company fold. But if Suntech is liquidated, its Chinese creditors, who are owed more than $2 billion, likely would gain access to the company's assets before foreign bondholders would. U.S. creditors were gearing up for a fight Wednesday. Suntech defaulted on a $541 million U.S. bond payment on Friday. "If they take all the assets and give nothing to the U.S. investors, on the next deal, that's going to be remembered," said James Millar. The Wilmer Cutler Pickering Hale and Dorr LLP partner represents four bondholders that had threatened to sue the company in the U.S. to collect on their investment after Suntech defaulted on the bond payment. Rest the rest at http://online.wsj.com/article/SB10001424127887324557804578372082733827860.html

Chinese Solar Panel Maker Falters as Prices Plunge

HONG KONG — It was the Icarus of the solar power industry. And, on Wednesday, it fell to earth. The main subsidiary of Suntech Power, one of the world’s largest makers of solar panels, collapsed into bankruptcy in a remarkable reversal for what had been part of a huge Chinese government effort to dominate renewable energy industries. The bankruptcy is a sign of the worldwide consolidation of the solar industry, which has been crippled by a glut of products on world markets and Western tariffs on Chinese products. It also signals China’s unwillingness to continue to subsidize struggling manufacturers in the industry, which is contributing to the steep decline of its green energy pursuits. More than any other country, China had leaned heavily on renewable energy to solve its problems of severe air pollution and dependence on energy imports from politically unstable countries in the Middle East and Africa. Suntech, a centerpiece of the country’s efforts, had grown to 10,000 employees in its hometown, Wuxi, on China’s east coast, and even set up a small factory in Arizona to assemble panels. But a tenfold expansion of Chinese solar panel manufacturing capacity from 2008 to 2012 pushed down the price of solar panels about 75 percent, undermining the economics of the business. The rapid expansion of natural gas production in the United States and a curtailment of subsidies in the European Union also hurt prices, as did the United States’s imposition of import tariffs totaling about 40 percent after an antidumping and antisubsidy investigation last year. The European Union is completing its own trade investigation of Chinese solar panel shipments that could lead to steep tariffs there as well. After Suntech grew spectacularly, with production that soared year after year on heavy investment, and after Western investors bought up its New York-traded shares and its international debt issues, the company was battered by plummeting prices as the overall manufacturing industry sank. Ocean Yuan, the president of Grape Solar, an importer of solar panels based in Eugene, Ore., said he foresaw a series of bankruptcies by big Chinese solar panel manufacturers, some of which, like Suntech, have very high debt. Chinese manufacturers lost as much as $1 for every $3 of sales last year as they struggled to keep factories open despite falling prices. “They are bleeding every day,” Mr. Yuan wrote in an e-mail. “The more they sell, the more they lose money.” Read the rest at http://www.nytimes.com/2013/03/21/business/energy-environment/chinese-solar-companys-operating-unit-declares-bankruptcy.html?pagewanted=all

Sunday, March 17, 2013

Saints Row IV Emerges From THQ Bankruptcy, Launches August 20

After THQ went bankrupt earlier this year, the Saints Row franchise found its way into the coffers of Deep Silver. The small European publisher is better known for European RPGs and the Dead Island franchise, but it’s ready to become a publishing powerhouse with its acquisition of Saints Row. Deep Silver and Volition announced today that Saints Row IV will be heading to current-gen consoles and PC on August 20. The game, originally envisioned as an expansion for Saints Row: The Third, has now been expanded into a full fledged game where players take on the role of the U.S. president who happens to have super powers. In the next open-world installment of Saints Row, Deep Silver Volition continues the story of the Third Street Saints by elevating their status to the highest level – the leaders of the free world. In Saints Row IV, the head honcho of the Saints has been elected to the Presidency of the United States. But the Saints are just getting started. Now the larger-than-life insanity of the Saints series gets a new twist with a catastrophic alien invasion, and the aliens have transported the Saints to a bizarro-Steelport simulation. Wield gargantuan superpowers and fight to free humanity from alien granddaddy Zinyak’s mental grasp. Escape the simulation that’s trapped the Saints crew, or die trying. Read the rest at http://www.webpronews.com/saints-row-iv-emerges-from-thq-bankruptcy-launches-august-20-2013-03

Portland law firm recovers from bankruptcy to continue legal fight against hormone replacement drugs

A Portland law firm that fell into bankruptcy while waiting out a prolonged legal battle against a big pharmaceutical company has recovered, paid all of its debts and expects the case to be formally closed next month. After nine years of legal maneuvering, Williams Love O'Leary & Powers reached a settlement last year with Pfizer Inc. on behalf of about 500 women who allegedly developed breast cancer or other diseases as a result of using the company's hormone replacement therapy drugs. Terms of the settlement are confidential, firm partner Michael Williams said, but it was enough to pay the firm's debts. The firm filed for Chapter 11 bankruptcy in 2011 because it couldn't make payments on a bank loan during the expensive legal fight. The firm continued to operate after the filing, which provided the lawyers some breathing room. "It was a matter of time," Williams said. "We knew they'd eventually settle and it probably be enough to pay (debts), but the timing of it was the problem." Williams Love O'Leary & Powers may be the only law firm to emerge intact from a Chapter 11 reorganization, said Albert Kennedy, an attorney with Portland's Tonkon Torp firm who represented Williams and his partners. "What usually happens is Chapter 11 is almost always used to facilitate an orderly liquidation of the firm," Kennedy said. "The biggest single key was the commitment of the partners to stay together and make this work." In pursuing the Pfizer case, the firm spent $3 million in advance costs such as obtaining expert testimony, travel and other expenses, Kennedy said. The firms’s focus on complicated pharmaceutical litigation made it difficult to ride out the expense. Its cash flow from other work was enough to support daily operations, but not to pay the full amount of bank loans. Read the rest at http://www.oregonlive.com/business/index.ssf/2013/03/portland_law_firm_recovers_fro.html

Paul Krugman’s phony bankruptcy: a history

Toni Straka lives in Vienna, Austria. He’s the 48-year-old founder and publisher of the Prudent Investor blog, the subtitle of which reads, “CHRONICLING THE GLOBAL DEBT EXCESS SINCE 2005.” A recent piece from the Austrian magazine Format caught Straka’s attention — it spoke of New York Times columnist Paul Krugman’s filing for Chapter 13 bankruptcy. That’s a slam-dunk post for Straka. “This is the birthplace of Austrian economics,” says Straka. “It was just too good of a story that the prototypical Keynesian follower, Krugman, had declared bankruptcy. That was just too saucy a story for us.” That’s not to say Straka didn’t check Google. He did, and found not a lot of hits for the story. “They have a scoop,” he concluded, before putting the story on Prudent Investor. Prudent Investor — “one of the early and few warners about the U.S. housing bubble,” Straka says — has some reach. “I’m being syndicated and aggregated in more feeds than I could remember,” Straka says. One of the feeds that pulls in the Prudent Investor is knit together by a California company named Financial Content, which delivers stock quotes and financial information and news to its clients’ websites. And one of those clients is Boston.com, a portal that presents content from the Boston Globe. Wing Yu, the CEO of Financial Content, says that his people generate absolutely no news, no content. They merely grab it, wrangle it and push it onto websites. “We’re strictly a tech company,” Yu says. “We don’t have any editorial oversight.” Read the rest at http://www.washingtonpost.com/blogs/erik-wemple/wp/2013/03/11/paul-krugmans-phony-bankruptcy-a-history/

Revel CEO resigns weeks before expected bankruptcy filing

ATLANTIC CITY — Kevin DeSanctis, the man who guided Atlantic City's Revel casino-hotel through its tortuous development, only to see it struggle amid the cutthroat East Coast gambling market, is stepping down as head of the $2.4 billion resort. The company announced Wednesday that DeSanctis and chief investment officer Michael Garrity will resign from their positions with Revel Atlantic City but retain their jobs with Revel Group, the holding company that developed the resort and holds its license. There, they will work on developing amenity projects for Revel. Taking over the resort's day-to-day operations is Jeffrey Hartmann, a 20-year veteran of the casino, hospitality and leisure industry. His duties will begin once he is approved by New Jersey casino regulators. Read the rest at http://www.nj.com/business/index.ssf/2013/03/revel_ceo_resigns_weeks_before.html

Southern Air Wins Judge’s Approval to Exit Bankruptcy

Southern Air Holdings Inc., an air- cargo company that transported troops into Afghanistan, won court permission to exit bankruptcy under the control of a group of lenders lead by Canadian Imperial Bank of Commerce. U.S. Bankruptcy Judge Christopher Sontchi approved the company’s reorganization plan today, less than six months after seeking court protection from creditors. Its former owner, Oak Hill Capital Partners LP, will retain 17.5 percent of the company and appoint one person to the new, five-member board, Southern Air attorney Brian Rosen, with Weil Gotshal & Manges LLP, said after the hearing. “This plan was the product of a long and hard-fought negotiation,” Rosen told Sontchi today in federal court in Wilmington, Delaware. After unsecured creditors objected to the original plan filed last year, Oak Hill agreed to increase the amount of money it put back into Southern Air to boost recoveries. Read the rest at http://www.bloomberg.com/news/2013-03-14/southern-air-wins-judge-s-approval-to-exit-bankruptcy.html

Slideshow: Triangle’s largest bankruptcy law firms

RALEIGH – While a modest economic recovery is underway, large numbers of companies continue to struggle to pay creditors, and that translates into lots of work for bankruptcy attorneys. Bankruptcy practices have grown noticeably at several Triangle-area law firms, both among the large firms that represent banks in all sorts of matters and among the small boutique firms that specialize in representing borrowers. Still, the largest bankruptcy practices are at relatively large firms, led by Smith Debnam, where seven attorneys represent creditors in pre-bankruptcy negotiations and then in bankruptcy cases. Smith Debnam attorney Byron Saintsing says banks’ sheer volume of loans means they end up channeling legal work to attorneys who in turn work on numerous problem loans, including large numbers of commercial loans and even larger number of loans to individuals. Read the rest at http://www.bizjournals.com/triangle/news/2013/03/14/slideshow-triangles-largest.html

Revel bankruptcy could jeopardize tax breaks the casino seeks to tap to pay creditors

Revel wants to satisfy some of its debt by earmarking money from future state tax breaks, but by filing for bankruptcy, the megaresort is jeopardizing $261 million in total eligible tax breaks, financial filings show. Atlantic City’s newest casino, which has begun the process of restructuring $1.5 billion in debt, wants to satisfy its obligation to one group of creditors by promising them rights to future tax breaks up to $70 million, according to documents Revel filed Thursday with the federal Securities and Exchange Commission. But in an agreement Revel struck with the state Economic Development Authority in 2011 — which authorized the granting of $261 million in tax breaks over 20 years — filing for bankruptcy, including voluntarily, is grounds for a default and allows the state to end the agreement. That means Revel may never receive any tax breaks for which it had once been approved, and creditors also may never have access to it. No decision has been made on whether to end the Economic Redevelopment and Growth Incentive Grant Agreement with Revel. But state officials said there is no risk to taxpayers because Revel has not yet satisfied all of the requirements in its grant agreement. That means that even though the casino has been operating for nearly a year, no tax reimbursements have been paid to the casino. Read the rest at http://www.pressofatlanticcity.com/communities/atlantic-city_pleasantville_brigantine/revel-bankruptcy-could-jeopardize-tax-breaks-the-casino-seeks-to/article_d1862b96-8cde-11e2-b5bf-001a4bcf887a.html

Birmingham legislator proposes occupational tax to allow Jefferson County to exit bankruptcy

MONTGOMERY, Alabama — A state representative from Birmingham has proposed a plan that he says will allow Alabama's largest county to escape from bankruptcy. Democratic Rep. John Rogers told The Birmingham News (http://bit.ly/YgAove) that he will introduce a bill in the Legislature to reinstate the Jefferson County 0.5 percent occupational tax and generate as much at $65 to $70 million. Rogers is co-chairman of the Jefferson County legislative delegation. Read the rest at http://www.therepublic.com/view/story/f53f3724c85141928611018320be9450/AL-XGR--Alabama-County-Bankruptcy

Chrysler Bankruptcy Vet Named Detroit Emergency Manager

Over the protest of city officials and many residents, Michigan Gov. Rick Snyder today made the unprecedented move to appoint an emergency manager who will run Detroit's failing finances and hopefully bring the city back from the brink. Snyder announced that he is naming Washington bankruptcy lawyer Kevyn Orr, at right above, as his candidate for the position, according to the Detroit News. Snyder stressed that Orr still has to be approved by the state's Local Emergency Financial Assistance Loan Board, but it looks like the emergency manager gig will be a go after all. Orr has experience with both dire financial situations and what makes Detroit tick. He helped shepherd Chrysler through their bankruptcy proceedings in 2009. From the News: Read the rest at http://jalopnik.com/chrysler-bankruptcy-vet-named-detroit-emergency-manager-453730601

Suntech Falls as Maxim Predicts ‘Likely’ Default, Bankruptcy

Suntech Power Holdings Co. (STP), the Chinese solar-panel maker that announced a forbearance agreement for $541 million in convertible debt due tomorrow, fell to a record low after Maxim Group LLP said the company is “likely” to default and enter bankruptcy. Suntech tumbled 22 percent to 65 cents at the close in New York, the lowest since it began trading in December 2005. The bonds increased to 32 cents on the dollar. There is “no legal way around the March 15 maturity,” Aaron Chew, a Maxim analyst based in New York, wrote in a note to investors today, citing the bond prospectus. The company said in a statement March 11 that about 60 percent of the bondholders had agreed to wait until May 15 before exercising their rights. Such a delay isn’t allowed “without the consent of the holders of each outstanding note affected,” according to the prospectus. Some of the remaining 40 percent of bondholders said they weren’t contacted by the Wuxi, China-based company about a forbearance and want to be paid on schedule. A default would be the first for a bond issued by a company in mainland China. Suntech, the largest solar panel maker in 2011, has reported losses for the past two years and had about $2 billion of debt as of the end of August, according to a bondholder presentation in November filed with the Securities and Exchange Commission. Read the rest at http://www.bloomberg.com/news/2013-03-14/suntech-falls-after-maxim-predicts-likely-default-bankruptcy.html

Stockton avoids bankruptcy stigma for now

As we sit here, about a week from Stockton's bankruptcy trial, our civic ordeal has not carried quite the stigma that was anticipated by many. Including yours truly. That's not to say what happens in a Sacramento courtroom starting March 25 won't intensify the Stockton malaise ten-fold. But so far, the city has endured and battled and used a good deal of cogent strategy and forward thinking to lessen the impact of filing for bankruptcy. For that, City Manager Bob Deis, council members, city employees and even the general citizenry deserve a lot of credit. This "B" word could have buried the city. Instead, Stockton took the initial hit, surfed along the waves of uncertainty and outside scorn, and has emerged with a can-do, positive approach moving forward. Things could get tricky with the trial, which is expected to be completed in four or five days. Many of the city's creditors - who range in approach from cooperative to bloodthirsty - will line up to state their cases. The city must show U.S. Bankruptcy Judge Christopher Klein not only its fiscal situation, but also the plan to turn things around. Klein could have simply declared Stockton eligible for bankruptcy at a hearing late last month, but he made the proper decision to proceed with a compacted trial. Read the rest at http://www.recordnet.com/apps/pbcs.dll/article?AID=/20130317/A_NEWS0801/303170311

Indicted investor had bankruptcy filings in 2001 and 2011

Baker businessman James R. Holdman filed bankruptcy cases in 2001 and 2011 before a federal grand jury in Baton Rouge indicted him Feb. 28 on 18 counts of mail fraud. Holdman, 57, cost investors in his hedge fund operations $13 million by sending them false statements that reflected nonexistent profits, U.S. Attorney Donald J. Cazayoux Jr. said after the grand jury returned the indictment. “Prosecuting those who commit investment fraud in (this) district will continue to be a priority,” Cazayoux added. In a telephone interview Thursday, Holdman declined to discuss that indictment. He also declined to name any attorney who could speak on his behalf. No attorney for Holdman is listed in the federal court file containing his indictment. “I’m really not going to comment,” Holdman repeated. Holdman won discharge from debts listed in his 2001 bankruptcy case, but those records are archived in Fort Worth, Texas. And documents containing the amount of his assets and debts in that case cannot be opened in the electronic file available in Baton Rouge. When Holdman filed for bankruptcy in June 2011, he listed total assets of $233,455 and total debts of nearly $12.1 million. He was discharged from his debts in January 2012. Read the rest at http://theadvocate.com/home/5456548-125/indicted-investor-had-bankruptcy-filings

Southern Air wins approval to exit bankruptcy

NORWALK -- Southern Air Holdings, an air- cargo company that transported troops into Afghanistan, won court permission to exit bankruptcy under the control of a group of lenders lead by Canadian Imperial Bank of Commerce. Southern Air is based in Norwalk, but announced recently it would be moving its headquarters to Cincinnati. U.S. Bankruptcy Judge Christopher Sontchi approved the company's reorganization plan this week, less than six months after seeking court protection from creditors. Its former owner, Oak Hill Capital Partners, will retain 17.5 percent of the company and appoint one person to the new, five-member board, Southern Air attorney Brian Rosen, with Weil Gotshal & Manges LLP, said after the hearing. Read the rest at http://www.thehour.com/business/southern-air-wins-approval-to-exit-bankruptcy/article_19a72f25-94db-537c-8243-35b10f258337.html

Retiree lost money when Fowler went bankrupt

Among the creditors who lost money when Joshua Fowler filed bankruptcy was retiree Shirley Cox. Cox rents a sparsely furnished one-bedroom apartment in Winter Garden, three miles from the house she sold Joshua Fowler for $550,000. At the time of the sale, her husband, Jimmy, a citrus buyer, was dying of cancer. The money for the house was supposed to support Shirley after he passed. The money from the sale of the house is gone. So is the $100,000 Joshua Fowler borrowed from the Coxes when he purchased their house. Fowler said he needed the money to renovate the 4,100-square-foot, four-bedroom brick house. "I had to put a lot of money into that home," Fowler said. Cox said she didn't feel good about the deal, but her husband was insistent that they sell the house before his death. Fowler's offer was the only one they had Read the rest at http://www.orlandosentinel.com/news/local/breakingnews/os-joshua-fowler-bankruptcy-retiree-20130317,0,3031744.story

Casey Anthony Bankruptcy: Anthony Fights Gonzalez Over New Finance Disclosure Requests (VIDEO)

Casey Anthony is refusing to be questioned on her bankruptcy for a second time by Zenaida Gonzalez's lawyers. A new court filing has confirmed that attorneys for Anthony are fighting against Gonzalez's lawyers attempts to be able to question her on her finances, saying they have already had an opportunity to do so once before. According to reports, Gonzalez's legal team has asked U.S. Bankruptcy Judge K. Rodney May to be given permission to examine Anthony's finances again. That has caused Anthony's legal team to make a filing demanding the judge refuse their attempts. At the beginning of March Anthony filed for Chapter 7 bankruptcy, and testified that she had received financial gifts among other things from supporters. However, she did not identify who those supporters were, and also declined to inform the court about who is supporting her on a day to day basis. She did, however, explain that she currently does not have to pay any rent or utility bills thanks for "friends." Gonzalez's legal team believes that Anthony's disclosure was not sufficient, and is now pushing for them to be able to analyze her finances in more detail. Read the rest at http://www.christianpost.com/news/casey-anthony-bankruptcy-anthony-fights-gonzalez-over-new-finance-disclosure-requests-video-92022/#w2IeZUWVE1l3dJIe.99

Bankruptcy filings in Minneapolis and St. Paul

This is a list of recent business-related bankruptcies filed in U.S. Bankruptcy Court in Minneapolis and St. Paul. The number after the filing date is the case number. A Chapter 7 petition is for liquidation of the business; Chapter 11 (or Chapter 12 for farmers or Chapter 13 for small businesses) gives protection from creditors while the business is reorganized. MINNEAPOLIS Richard James Elsen, as surety for Richard J. Elsen Construction Inc. and Can-Am Investments, and Lynn Marie Elsen, 11317 Toledo Av. N., Champlin; filed March 13, 13-41182; Chap. 7; assets, $472,802; liabilities, $1,756,169. Read the rest at http://www.startribune.com/business/198557221.html?src=news-stmp

D.C. area bankruptcy filing, March 18

This firm recently filed with a U.S. Bankruptcy Court’s local court clerk’s office. Under Chapter 11 of the federal bankruptcy code, a company is protected from claims by creditors while it attempts to reorganize its finances under a plan approved by the court. Read the rest at http://www.washingtonpost.com/business/economy/dc-area-bankruptcy-filing-march-18/2013/03/17/9accb1d4-8ce7-11e2-9f54-f3fdd70acad2_story.html

Detroit bankruptcy would be largest

Chapter 9, or municipal bankruptcy, is the fate that awaits Michigan’s most populous city if Michigan Gov. Rick Snyder’s efforts to restructure the city fail. Detroit, a city of 706,585 residents as recorded by the 2010 census, would be the largest municipal bankruptcy filing in U.S. history. Stockton, Calif., a city of 291,707 residents, filed for bankruptcy in 2012. Central Falls, R.I., a city of 19,376 residents, filed for bankruptcy in 2011. Prichard, Ala., a city of 22,659 residents, filed for bankruptcy a second time in 2009 after it had already been bankrupted in 1999. “There is probably no city that is more financially challenged in the entire United States,” Snyder said after he announced the city was in financial distress as reported by The Economist. Economists and financial experts contend the effects of municipal bankruptcy are often widespread and cause economic distortions harmful to other municipalities as well as the state. Read more at http://www.easternecho.com/article/2013/03/detroit-bankruptcy-would-be-largest

Cyprus says tax on deposits was alternative to bankruptcy

NICOSIA – Cyprus's president said on Sunday he had to accept a painful compromise on accepting a tax on bank deposits in return for international aid, or else the island would have faced bankruptcy. Read more: http://www.foxbusiness.com/news/2013/03/17/cyprus-says-tax-on-deposits-was-alternative-to-bankruptcy/#ixzz2NrG1SFHO

Saturday, March 16, 2013

Metro Phoenix bankruptcy filings fall at fast clip

Plenty of Arizonans continue to struggle financially, but their stress isn’t showing up in bankruptcy filings: The number of Valley residents seeking protection in February fell at the fastest pace in nearly 6 1/2 years. Throughout metro Phoenix, 1,059 individuals and businesses started bankruptcies last month, down nearly 35 percent from February 2012, according to the U.S. Bankruptcy Court in Phoenix. Filings have dropped for the past 25 months when compared with the same month in the previous year. The cyclical peak of 3,063 bankruptcies was reached in March 2010. The most recent results showed the best rate of improvement since October 2006 — one year after the numbers were distorted by a change in the law making it less advantageous to file. Filings fell nearly 35 percent throughout Arizona, mirroring the trend in metro Phoenix. Some 1,412 individuals and businesses statewide filed in February, down from 2,160 in February 2012. In general, consumer finances have been improving, driven by higher job growth and a generally declining unemployment rate and helped by rising housing prices, a surging stock market and other factors. Still, plenty of individuals continue to struggle. A reader financial call-in session hosted last week by The Arizona Republic featured dozens of questions about bankruptcy, debt or credit problems. Most were answered by Phoenix bankruptcy attorneys Diane Drain, who heads her own firm, and Cindy Greene of law firm Carmichael & Powell. Drain said she senses that a lot of today’s filers are people who typically had above-average incomes. “They were liquidating other assets to pay their bills,” she said, adding that some of those money sources have been tapped out. By contrast, most of the financially stressed people in middle-income ranges have already sought bankruptcy help, she said, while poorer individuals lack the money to pay attorney fees, don’t have enough assets to protect or aren’t filing for other reasons. Nationally, bankruptcy filings of 82,285 were down 21 percent from 104,537 in February 2012, according to Epiq Systems. Read the rest at http://www.azcentral.com/business/news/articles/20130314metro-phoenix-bankruptcy-filings-fall-at-fast-clip.html

SaveAround Reacts to Bankruptcy of Top Competitor, Entertainment Publications

After Michigan based coupon book publisher, Entertainment, closed its doors on Tuesday, SaveAround's management announced that while their industry lost its largest competitor, their business is growing and will continue to be a reliable partner for fundraising groups and merchants across the country. While both Entertainment and SaveAround are recognized as distributors of money saving coupons, SaveAround emphasizes that, at its roots, it is a fundraising company and its mission is to help schools and non-profit groups. Over the past few years, Entertainment Publications shifted focus from its fundraising division toward direct to consumer sales, mobile sales, and private label content. With Entertainment’s sudden closure, SaveAround became the nation’s leader in the coupon book industry. “What do you do when you suddenly find out your number one competitor no longer exists? It’s unfortunate to hear about the hundreds of jobs lost, fundraising contracts that might go unfulfilled, and the uncertainty of customers, but with any change does come opportunity. Our company is in a nice position to help on all fronts,” said the President of SaveAround, Luke Stanton. Read more at http://www.prweb.com/releases/savearound/coupons/prweb10533708.htm

American Airlines Bankruptcy Helped JPMorgan To $6 Billion Loss

NEW YORK (TheStreet) -- In the ever more twisted tale of JPMorgan's (JPM_) risky trading activities, a Senate report released on Thursday indicates that the bankruptcy of American Airlines (AMRPQ) helped the bank to an over $6 billion loss, known as the "London Whale" trade. The Senate subcommittee on investigations report -- titled JPMorgan Chase Whale Trades: A Case History of Derivatives Risks and Abuses -- makes the case that the bank's backfired trading strategy escalated on the heels of a $400 million payout from the bankruptcy of American Airlines in late November 2011.Had American Airlines fallen into bankruptcy just a few weeks later, JPMorgan stood to lose on a trade in complicated credit derivative instruments, potentially exposing a flawed strategy undertaken by the bank, according to the Senate report. Instead, American Airlines declared bankruptcy on November 29, netting JPMorgan between $400 million to $550 million in trading profits that the Senate report says gave traders and risk managers the confidence to grow the risky "London Whale" trade from about $51 billion in notional value at the end of 2011 to $157 billion by early 2012. Read more at http://www.thestreet.com/story/11870749/1/american-airlines-bankruptcy-helped-jpmorgan-to-6-billion-loss.html

Bankruptcy may sink golf course operator

WALLA WALLA — The city is on a path to parting ways with its municipal golf course operator after months of delinquent rent, utility and other payments, officials say. #After a more-than-15-year partnership at Veterans Memorial Golf Course, city officials say they are on course for a split with operator We-Man Vets Golf Inc., which filed for chapter 11 bankruptcy reorganization Feb. 21. #City Attorney Tim Donaldson said the golf course continues to operate through the turmoil and won’t be in danger of closing. #“We’ve had a lot of concern from golfers,” he said. “We have to basically proceed through the bankruptcy.” #In the meantime, he said, season passes will be honored by the operator, as well as the city. #We-Man President and golf pro Nick Manolopoulos did not return a telephone call for comment. #According to Donaldson, the city’s lease with We-Man at the 18-hole course, 201 E. Rees Ave., expires at the end of 2013. #However, by the end of 2012, Manolopoulos had failed to make quarterly lease payments for the third and fourth quarter. The city gave notice that it planned to terminate the lease early — Feb. 21 — unless the lease payments were made. That day We-Man filed for bankruptcy protection. #The filing essentially stops the early termination while the financial proceedings take place through bankruptcy court. Should that, for any reason, run beyond the term of the contract, the filing will not extend the lease beyond its existing term. Read the rest of the article at http://union-bulletin.com/news/2013/mar/16/bankruptcy-may-sink-golf-course-operator/

Southern Air, moving to Kentucky, garners bankruptcy agreement

Bloomberg News Southern Air Holdings, which is moving its corporate headquarters from Norwalk to the Cincinnati/Northern Kentucky International Airport in Kentucky, has won agreement from the bankruptcy judge to sign an order approving the cargo airline's modified reorganization plan. The changes to the company's plan, made at a confirmation hearing Thursday, resolved objections from the official creditors' committee. Southern Air told the state Department of Labor in January that it would lay off 120 workers this month, and a company spokeswoman said at the time that it had a plan to relocate "certain operations." Originally, unsecured creditors with $101 million in claims were told to expect a recovery of 2.6 percent to 3.1 percent by splitting up $2 million in cash. As revised, the plan funds a trust for unsecured creditors with $2.5 million. Unsecured creditors were told to expect a recovery of 2.4 percent to 2.6 percent. Acquired in 2007 by Oak Hill Capital Partners, Southern Air filed for bankruptcy reorganization on Sept. 28, 2012 after working out a plan giving a $17.5 million term loan and 82.5 percent of the stock to secured lenders in return for $295 million in debt. The recovery by the lenders was originally projected at 11.9 percent to 20.6 percent. Read more: http://www.stamfordadvocate.com/news/article/Southern-Air-moving-to-Kentucky-garners-4359033.php#ixzz2NlSORsOj

Judge, Husband Settle Bankruptcy Dispute

A prominent Summerville lawyer and his wife, a Circuit Court Judge, will pay a combined $500,000 to settle a lawsuit that claimed the pair improperly transferred real estate holdings that were tied up in a $61 million bankruptcy. Arnold S. Goodstein and his wife, Circuit Court Judge Diane S. Goodstein, agreed to pay the settlement, but they have not admitted guilt and they continue to dispute the trustee's claims, according to the terms of a settlement filed in U.S. District Bankruptcy Court last week. The case is associated with a 2010 bankruptcy in which Arnold Goodstein's real estate empire collapsed. The trustee overseeing the repayment of more than $61 million in Goodstein's debt alleged that the Goldstein's improperly transferred property that was involved in the bankruptcy. The transfers, termed "fraud" in the settlement, were roughly $2 million below fair value, the settlement states. The sale of property between relatives is permissible during a bankruptcy, but the trustee has the right to review what's fair value. The settlement allows the Goodstein's and the trustee from going to trial on the matter. The trustee was seeking $2 million for the improper land swap, but a trial would have prolonged the already complex bankruptcy and cost the state even more money, the trustee wrote in her filing with the bankruptcy court. Read more at http://summerville.patch.com/articles/judge-husband-settle-bankruptcy-dispute

Bel Air payroll company AccuPay files for bankruptcy protection

A Bel Air payroll company under investigation for allegedly not forwarding clients' tax payments to tax collectors has filed for bankruptcy. AccuPay Inc. filed a petition for a Chapter 7 bankruptcy Tuesday in U.S. Bankruptcy Court in Baltimore, listing 95 creditors and debts of between $100,001 and $500,000. Chapter 7 allows for an orderly liquidation of a company's assets to pay off creditors. A bankruptcy attorney for the company's owners said Wednesday that his clients believe they will have funds available to pay creditors. In the bankruptcy filing, the company lists estimated assets of between $100,001 and $500,000. "The principals believe that there is sufficient money to pay the claims," said James A. Vidmar, the attorney for AccuPay's owner, Beverly Carden. "That's what they think, and that's subject to bankruptcy court procedures." Carden could not be reached Wednesday for comment. The East Churchville Road firm, which has an estimated 500 to 600 clients, shut down at the end of February after a Bel Air veterinary hospital, Animal Emergency Hospital, accused it in a lawsuit of "repeatedly and regularly" failing to pay or making only partial payments of federal and state withholding and unemployment taxes over the past five years. DuClaw Brewing Co. had filed a complaint last summer. Read more at http://articles.baltimoresun.com/2013-03-14/business/bs-bz-accupay-bankruptcy-20130313_1_accupay-files-for-bankruptcy-protection-bankruptcy-court-procedures

Evolving from bankruptcy, Prince Theater names a new board and director

As the next step in its post-bankruptcy evolution, the Prince Music Theater has named a new board of directors and an executive director. James E. Hines, 35, is the new chief staffer, joining the Prince after three years as artistic administrator of the Mann Center for the Performing Arts. The Prince, a former movie house on Chestnut Street, exited Chapter 11 on Oct. 15 after being won at bankruptcy auction by a group of business investors known collectively as 1412 Chestnut Street Corp. The Prince Music Theater - the arts organization as opposed to the piece of prime real estate - will continue to occupy the building, paying rent under a 25-year lease to the ownership group assembled by businessman Herb Lotman. Lotman said his group would "reestablish the Prince as a premier destination in the city's performing arts, contemporary music, and film scene," presenting theater, comedy, classical and pop, jazz, and cabaret. Some of this will be rentals by outside groups; other events will be presented by the Prince itself. Shows and cabaret artists will be visiting in earnest starting in September, he said. Eventually, the theater would like to develop its own programming, as it did under founder Marjorie Samoff - who, according to Lotman, is no longer on the board or staff, but will consult during a period of transition. Lotman says the new board members are not investors - except for those who are partners in 1412 Chestnut St. Corp. - but philanthropists who will raise money and give money themselves. Read more at http://articles.philly.com/2013-03-15/news/37747714_1_marjorie-samoff-group-of-business-investors-new-board

WEEK AHEAD: Hostess Nears Bankruptcy Sales of Twinkies, Wonder Bread

The fate of Twinkies, Wonder Bread and other beloved Hostess brands will be in a bankruptcy judge's hands Tuesday. Up for sale as part of Hostess Brands Inc.'s liquidation, the company took most of its brands off the auction block after no rival bidders stepped forward to challenge initial offers. However, Friday will see the auction of some of Hostess's smaller bread brands, like Sweetheart and Eddy's, at which a subsidiary of United States Bakery Inc. will lead off the bidding. Apollo Global Management LLC (APO) and Metropoulos & Co. have offered $410 million for such snack cake brands as Twinkies, Ho Hos and Ding Dongs, as well as five bakeries and equipment. Metropoulos & Co.'s Evan Metropoulos, whose family owns Pabst Brewing Co., said he hopes to quickly return Twinkies and Hostess's other snacks to store shelves, where they have been missing since their maker launched its liquidation last November. Separately, McKee Foods Corp., which makes Little Debbie snack cakes, offered $27.5 million for Drake's coffee cake and Ring Dings. Read more: http://www.foxbusiness.com/news/2013/03/15/week-ahead-hostess-nears-bankruptcy-sales-twinkies-wonder-bread/#ixzz2NlREH8oj

Judge: No bankruptcy protection for couple

A U.S. bankruptcy judge has ruled that a husband-and-wife-mortgage-business team cannot file for bankruptcy protection again for current and possible future debts arising from the case already heard by the court. The ruling further allows creditors to freely pursue debts owed by Kathleen Patricia Morris, also known as Tricia Morris, and David Duffy Herman of the Kihei-based Hawaii's Premiere Mortgage Co. In court records, the couple disclosed that between 100 and 199 creditors are owed between $1 million and $10 million in estimated liabilities. In January, U.S. Bankruptcy Judge Robert J. Faris dismissed a Chapter 11 bankruptcy reorganization petition by the couple. Without bankruptcy protection, creditors may file actions on their own to get what they are owed. Faris had set another hearing Monday to determine whether to dismiss the case with prejudice, which means the cases cannot be refiled, or without prejudice, where parties may refile their claims. But on Jan. 30, the U.S. trustee, along with Morris, Herman and their attorneys, agreed that the couple shall not receive bankruptcy protection for the case and any future cases for debts arising from the case, court records show. On Feb. 28, Faris granted a motion filed Jan. 31 to approve the stipulation to dismiss the case with prejudice. Faris noted that there were no timely objections to the motion. The couple has said in court statements that their "finances suffered" after Herman had a heart attack in Idaho in 2009. The statements said Morris tried to reorganize their debt and obtain hardship loan modifications. Read more at http://www.mauinews.com/page/content.detail/id/570782/Judge--No-bankruptcy-protection----.html

Rotech Healthcare Says It Will Restructure in Bankruptcy

Rotech Healthcare Inc. (ROHI), a provider of home respiratory products, said it will file to restructure through a pre-arranged plan under Chapter 11 of the U.S. Bankruptcy Code. “This is a game-changer for Rotech that we believe will allow us to grow and thrive,” Steven Alsene, chief executive officer of Rotech, said in an interview today. The Orlando-based company said it expects to file the consensual plan and petitions in the coming weeks. Under the contemplated restructuring, Rotech’s $290 million in 10.5 percent second-lien notes due in 2018 would be converted to equity; holders of a $23.5 million term loan would be paid in full and the $230 million of 10.75 percent first-lien notes would be amended and the maturity potentially extended, Rotech said today in a statement. Orlando-based Rotech’s predecessor company also filed for Chapter 11 protection in 2000, along with its then-parent, Integrated Health Services, and was spun-off in 2002 as a separate entity, it said at the time. The company provides home-based equipment to help people with breathing disorders including Chronic Obstructive Pulmonary Disease (COPD). The company has about 420 operating centers in 49 states. Read more at http://www.bloomberg.com/news/2013-03-15/rotech-healthcare-says-it-will-restructure-in-bankruptcy.html

Casey Anthony Bankruptcy: Offered $10,000 Not to Tell Story

The TMZ celebrity news website reported that a man named James M. Schober is trying to obtain the rights to Anthony’s story, according to court documents. Schober, who appears to have no ties to Anthony’s family, does not want to acquire rights to her story for any other reason than preventing “Ms. Anthony or others from publishing or profiting from her story in the future,” according to the website. Earlier this month, Anthony, who was acquitted July 2011 of murder chargers in the death of her baby, told a bankruptcy court that she is living off of “unsolicited donations,” according to the New York Post. “I don’t pay rent. I don’t pay utilities. I guess you could say I’m living free off the kindness” of other people, she said at a hearing in Tampa, Fla. She added, “When I need to go somewhere, I take the bus.” Read more at http://www.theepochtimes.com/n2/united-states/casey-anthony-bankruptcy-offered-10-000-not-to-tell-story-363654.html

Patriot Coal Asks Bankruptcy Court to Terminate Retiree Health Benefits

On Thursday, Patriot Coal Corp filed a lawsuit against Peabody Energy Corp to ensure that Peabody does not use Patriot’s bankruptcy to evade Peabody’s own obligations to certain retirees. While Patriot has filed the lawsuit to ensure that Peabody, from which Patriot branched off in 2007, does not neglect its own obligations for health benefits towards retirees, in a statement late Thursday, Peabody pointed out that its contract with Patriot “appropriately states that, should Patriot’s benefit obligations decrease, our funding would proportionately be reduced. Patriot is taking the untenable position that our payments should continue in full in the future even if Patriot’s expenses are reduced.” Actually, what lay beneath the surface is that Patriot has already asked a bankruptcy court to terminate retiree health benefits for thousands of its unionized U.S. mine workers as part of its plan for Chapter 11 bankruptcy. Read more at http://www.jdjournal.com/2013/03/16/patriot-coal-asks-bankruptcy-court-to-terminate-retiree-health-benefits/#

Cyprus president says depositors had to pay to avoid bankruptcy

NICOSIA – Cypriot President Nicos Anastasiades said on Saturday a levy on bank depositors was a painful decision he had to make in order to obtain financial aid, or else the island's economy would have gone bankrupt. Anastasiades, elected three weeks ago with a pledge to negotiate a swift bailout, said refusal to agree to terms would have led to the collapse of the island's two largest banks. The president said he would make a state address on Sunday, when the island's parliament was scheduled to meet in an emergency session to decide whether to approve the measure. The eastern Mediterranean nation becomes the fifth country after Greece, Ireland, Portugal and Spain to turn to the euro zone for financial aid. Read more: http://www.foxbusiness.com/news/2013/03/16/cyprus-president-says-depositors-had-to-pay-to-avoid-bankruptcy/#ixzz2NlPf6fKB

Longtime Waynesboro car dealer seeks bankruptcy protection

Berrang Cadillac GMC Inc., a longtime General Motors dealership on Main Street and, more recently, Lew DeWitt Boulevard, has filed a Chapter 7 petition in U.S. Bankruptcy Court in Harrisonburg. The petition, filed on March 1 by dealership president/treasurer Pat Berrang, lists assets of $688,131 and liabilities of $4.8 million. Chapter 7 is a liquidation-type bankruptcy in which assets are sold to meet debts. A personal bankruptcy petition filed by Pat Berrang lists assets of $5.1 million and liabilities of $5.2 million. Berrang's Waynesboro attorney, Jeff Ward, said Wednesday he did not comment on pending cases. Berrang was one of the dealers affected by the GM reorganization, he but regained his affiliation with the company a few years ago to sell Cadillacs and SUVs. His petition says the business opened in 1977. While the dollar volume of car sales in Virginia rebounded during the past fiscal year to more than $18.2 billion, times have become difficult for car dealers in small communities, said Don Hall, president and CEO of the Virginia Automobile Dealers Association. Hall estimates there have been more than 65 dealerships closed in the state in the past five years, the majority of which were in less-populated areas. Read more at http://www.dailyprogress.com/newsvirginian/news/local/article_9b008426-8d16-11e2-929c-001a4bcf6878.html

Howes: Detroit EM Kevyn Orr prepared to use bankruptcy hammer

Kevyn Orr, Detroit's emergency financial manager within the next 10 days, speaks plainly. A Washington lawyer with deep experience in bankruptcy and restructuring, he says he wants to be "consensual," which City Council-in-opposition may like to hear even if most of its members probably won't believe it. He says he wants to negotiate in "good faith" with creditors, pension funds and unions, even if good faith may be in the eye of the beholder. But if a city facing the increasingly real prospect of Chapter 9 bankruptcy falls short under his consensual and good faith efforts, he sounds unafraid to wield a big hammer and initiate what would be the largest municipal bankruptcy in American history. The move would be as defining for this beleaguered city and its legacy as it would be ignominious. If there was a subtext to Orr's introduction Thursday by Gov. Rick Snyder, it was the declaration that financial reality finally has arrived in the city of Detroit. Time to stop endless bickering, to work together and to focus on reaching solutions quickly because this guy isn't afraid of bankruptcy. "People of good faith — don't make me go to bankruptcy court," Orr said, flanked by the governor and Mayor Dave Bing. "You won't enjoy it." From The Detroit News: http://www.detroitnews.com/article/20130315/OPINION03/303150364#ixzz2NlOfAHZo

American Airlines bankruptcy trustee challenges outgoing CEO’s severance

The U.S. trustee in AMR Corp.’s Chapter 11 bankruptcy case has objected to American Airlines CEO Tom Horton’s $19.8 million severance payment, arguing that the company hasn’t explained why such a large sum is permissible under federal bankruptcy rules. Horton’s compensation is addressed as part of the company’s merger agreement with US Airways, which calls for Horton to become chairman of the combined company until its first shareholders meeting, expected in mid-2014. US Airways CEO Doug Parker will be chief executive of the combined carrier. The U.S. trustee in such cases supervises the debtor’s administration. That includes monitoring financial reporting and also compensation and reimbursements, according to a description by the administrative office of U.S. Courts. However, it is the bankruptcy judge who decides on motions before the court. Bankruptcy Judge Sean Lane is scheduled to rule on the merger and Horton’s severance package at a March 27 hearing. Friday was the deadline for objections in those matters. Read more at http://skift.com/2013/03/16/american-airlines-bankruptcy-trustee-challenges-outgoing-ceos-severance/

Bankruptcy expert who helped Chrysler named Detroit emergency manager Read more: http://www.foxnews.com/politics/2013/03/14/bankruptcy-expert-who-helped-chrysler-named-detroit-emergency-manager/#ixzz2NlNqn6AL

A bankruptcy expert who represented automaker Chrysler LLC during its successful restructuring has been chosen to steer Detroit out of its financial abyss. The distressed city, which was once one of the nation's most prosperous manufacturing centers, is now the largest U.S. city to have its finances placed under state control. Gov. Rick Snyder announced Thursday that he had chosen Kevyn Orr, a partner in the Cleveland-based law and restructuring Jones Day firm, as Detroit's emergency manager. He officially will be hired by Michigan's Emergency Loan Board, which had scheduled a meeting for 3 p.m. EDT Thursday. During a news conference Thursday, Orr called Detroit a "storied American city." "We can rise from the ashes," Orr said. "This is a beautiful city and a wonderful state that gave me my start. I feel compelled to do this job." Read more: http://www.foxnews.com/politics/2013/03/14/bankruptcy-expert-who-helped-chrysler-named-detroit-emergency-manager/#ixzz2NlNvTx9t

Follow Reuters Facebook Twitter RSS YouTube RECOMMENDED VIDEO Dog helps missing 3-year-old survive cold frosty night… A 60 second tour of the papal apartment (1:01) Dead pigs found in Chinese river rises to over 2,200… 4 Reasons Not To Upgrade to the Galaxy S4 (LAPTOP Magazine) Check Out the Hottest Thing in Coffee at SXSW (Engadget) [?] READ Pope Francis wants Church to be poor, and for the poor 2:33pm EDT1Palin calls Obama a liar in speech to conservative activists 6:09pm EDT2Cyprus' savers bear brunt of unprecedented bailout 7:52pm EDT3Rapper Lil Wayne says he is fine after health scare 15 Mar 20134Accuser in Steubenville rape case says she recalls little 7:12pm EDT5 DISCUSSED 121 Senator Portman reverses gay marriage opposition: reports 85 Republican budget plan seeks $4.6 trillion more in spending cuts 79 Egypt’s Islamists warn giving women some rights could destroy society SPONSORED LINKS Fresh Options thinking. For a smarter portfolio. Free. ............................................................. Open an IRA in 15 minutes or less Rollover your 401k or open and fund your IRA and get up to $600 cash. ............................................................. Planning for Retirement? $500,000 portfolio? Download the guide by Forbes Columnist Ken Fisher's firm. ............................................................. Ads by Marchex U.S. company's bankruptcy leaves behind cache of weapons

(Reuters) - The U.S. Bankruptcy Court in Delaware may soon be overseeing what could be a legally dicey firesale - an apparent arsenal of Glock and Beretta handguns and other weapons. Advanced Interactive Systems Inc of Seattle, which owns shooting ranges and trains security professionals, filed for bankruptcy on Wednesday under Chapter 7, which means it is going out of business. Its inventory included scores of firearms and parts, including the AR-15 rifle, similar to the one used in the Newtown, Connecticut, school massacre in December. It was unclear how many guns the company actually held. At least 15 guns were listed in the safe of the company's Melbourne, Florida, location. In addition, there were scores of entries for gun parts, from barrels to triggers. The company noted that in its rush to file for bankruptcy its records may be incomplete. Read the rest at http://www.reuters.com/article/2013/03/15/advancedinteractive-bankruptcy-guns-idUSL1N0C76YH20130315

Detroit, in financial trouble, gets emergency manager

Michigan Gov. Rick Snyder on Thursday tapped a leading bankruptcy lawyer to run the cash-strapped city of Detroit, a last-ditch effort to turn around the city's long-standing financial problems short of bankruptcy. The naming of Kevyn Orr as the city's emergency manger will give him many of the same powers as a bankruptcy judge. He can throw out contracts with public employee unions and vendors that the city can't afford, and he can make further cutbacks in already depleted city services if he decides they city can't afford them. Read the rest at http://money.cnn.com/2013/03/14/news/economy/detroit-emergency-manager/

Thursday, March 7, 2013

Cordillera Golf Club emerges from bankruptcy, signs up 300 new members

Rising from the depths of bankruptcy and litigation, Cordillera Golf Club has signed up more than 300 new members as it drives toward next month's reopening. Scottsdale, Ariz.-based Troon Golf, selected to manage Cordillera after the club's sale to Wind Rose Holdings in December, said Thursday its membership effort is continuing. The 300 new members were part of a special offering that was available only to previous members and Cordillera homeowners who had never been members. Another 180 people have signed up for the interest list, and membership will be offered to the general public next week. "When the company went through bankruptcy and reformed on Jan. 1, we had zero members," said interim general manager Mike Henritze. "After the special offering period from Jan. 10 to March 4, we got just over 300. I would say our goal for 2013 would be 400 members." Read more at:http://www.denverpost.com/breakingnews/ci_22741782/cordillera-golf-club-emerges-from-bankruptcy-signs-up

Biovest files for bankruptcy

Biovest International Inc. returned to bankruptcy court. The Tampa drug development company filed a petition for protection under Chapter 11 of the bankruptcy code, a statement said. Biovest (OTCQB: BVTI) also filed a plan of reorganization that would eliminate $44 million in senior secured debt held by Laurus/Valens Funds and Corp Real LLC. The plan would provide up to $5.6 million in new operating funding from Biovest’s senior secured lenders. The plan proposes that the $44 million of Biovest’s senior secured debt, which includes the new funding, would be converted into common stock. READ MORE AT: http://www.bizjournals.com/tampabay/news/2013/03/07/biovest-files-for-bankruptcy.html

Ways To Quickly Recover From Bankruptcy

Filing for bankruptcy is usually the last resort for those who are struggling to cope with their ever increasing debt. It is a move considered to be one of the worst that you could possibly make and it is one which most people avoid if they can. The Main reason for this is because bankruptcy usually stays on your file for up to ten years. This means that it is harder to gain credit in the future and opening bank accounts and getting a mortgage can seem to be almost impossible during that time. However, there are ways in which you can successfully recover from bankruptcy. You can even do it in half the time.read more at:http://ezinearticles.com/?Ways-To-Quickly-Recover-From-Bankruptcy&id=802777 Article Source: http://EzineArticles.com/802777

The Truth About Bankruptcy

Bankruptcy is a painful, life-changing experience. It hurts. Too many bankruptcy filers never really recover from their financial distress because they never learn new ways to manage their money. For the last two decades, Dave Ramsey has been passionate about helping people find financial peace. He’ll be the first one to tell you there’s hope after bankruptcy. Twenty years ago, Dave and his wife Sharon filed and lost everything.read more at:http://www.daveramsey.com/article/the-truth-about-bankruptcy/

Surviving the Emotional Toll of Bankruptcy

Maybe money can't provide happiness, but it can certainly inspire negative emotions, including sadness, grief, and shame. Those are just a few feelings people may experience when they claim bankruptcy. Chapter 7, the most common form of consumer bankruptcy in the United States, involves handing over one's non-exempt assets to a trustee, who then allocates funds to the filer's creditors, eliminating all or most of his or her debts. With Chapter 13 bankruptcy, filers undergo a financial reorganization to pay off debts with a goal of preserving assets, such as an estate. Those who file for Chapter 7 are typically people who find themselves in such financial ruin that it's not worth filing for Chapter 13.read more at:http://money.usnews.com/money/personal-finance/articles/2013/01/18/surviving-the-emotional-toll-of-bankruptcy

San Bernardino, California, files for bankruptcy with over $1 billion in debts

(Reuters) - San Bernardino filed for bankruptcy protection on Wednesday citing more than $1 billion of debts and making it the third California city to seek protection from creditors. The city of about 210,000 residents 65 miles east of Los Angeles declared a fiscal crisis last month after a report said local government had tapped out its reserves and projected spending would top revenue by $45 million in the fiscal year that began on July 1.Read more at:

Types of bankruptcy

In our society today, revisions to the bankruptcy laws and changes in consumer attitude toward bankruptcy have fostered a climate in which individuals and businesses many times regard bankruptcy as a more plausible remedy for financial problems than disciplined financial management. A revised Bankruptcy Code, enacted in 1978, took effect on October 1, 1979. The Code consolidated some chapters of previous laws pertaining to business reorganizations and sought to streamline the administration of the bankruptcy courts, but its most sweeping changes involved personal bankruptcy. This revision made bankruptcy a more attractive option for both personal and business debtors, primarily because it increased the amount of assets that could be exempt from liquidation.read more at:http://www.crown.org/library/ViewArticle.aspx?ArticleId=577

San Bernardino, California, files for bankruptcy with over $1 billion in debts

(Reuters) - San Bernardino filed for bankruptcy protection on Wednesday citing more than $1 billion of debts and making it the third California city to seek protection from creditors. The city of about 210,000 residents 65 miles east of Los Angeles declared a fiscal crisis last month after a report said local government had tapped out its reserves and projected spending would top revenue by $45 million in the fiscal year that began on July 1.Read more at:http://www.reuters.com/article/2012/08/02/us-usa-bankrupty-san-bernardino-idUSBRE87105220120802

Compton officials talking about possibly filing for bankruptcy

Officials in the financially struggling city of Compton have begun publicly discussing the possibility of filing for bankruptcy, following on the heels of Stockton, Mammoth Lakes and San Bernardino. Treasurer Douglas Sanders told the council Tuesday night that the city has $3 million in the bank and $5 million in bills to pay. "We are in some very critical issues, so by August 1, y'all need to decide what's going to happen -- make the bond payments, default on them, or go into bankruptcy," he told the council. "...For the 20 years I've been here, this is about the worst I've seen."Read More at:http://latimesblogs.latimes.com/lanow/2012/07/compton-bankruptcy.html

Owner of L.A. Times files for bankruptcy

In perhaps the starkest sign yet of trouble in the news business, media giant Tribune Co. -- owner of the Los Angeles Times, KTLA-TV Channel 5 and other newspapers and TV stations -- filed Monday for bankruptcy protection from creditors. Tribune's woes stem from a combination of plunging advertising revenue and a heavy debt load of $12.9 billion, much of it incurred a year ago when it was taken private by Chicago real estate entrepreneur Sam Zell.

Kodak hopeful of moving out of bankruptcy in 2013

COIMBATORE: Kodak, the iconic company that pioneered home photography, is confident of emerging out of Chapter 11 bankruptcy this year. With the renewed focus on commercial imaging and functional printing and the expected sale of personalised imaging and photo finishing businesses, Kodak would emerge out of bankruptcy in 2013, a senior company official said. "We have successfully resolved our legacy issues. We are well on track and would emerge out of bankruptcy before the end of this year," said Oscar Planas, managing director, India, South-East Asia, Kodak. Read more at:http://timesofindia.indiatimes.com/business/india-business/Kodak-hopeful-of-moving-out-of-bankruptcy-in-2013/articleshow/18684534.cms

Getting To Know The Bankruptcy Process

Many people hold misconceptions about the bankruptcy process, most of which are fueled my a lack of information and myths. The truth is that filing for bankruptcy is one debt relief option that can bring immediate relief from creditors, stop wage garnishment, and even protect against the threat of repossession or foreclosure. While it may seem overwhelming to consider bankruptcy as the option for you, getting to know the process can bring you some much needed relief about what to expect.read more at: http://www.articlesbase.com/bankruptcy-articles/getting-to-know-the-bankruptcy-process-6466552.html

A Foresight into the Bankruptcy Filing Trends for 2013

The general theory - for an economy to grow, the people residing in it must take risks for their businesses. This results in an indirect increase in the number of bankruptcy cases. The more debt people accumulate, the more reasons for them to go bankrupt. This can be the general idea of the common man. But, you can always have situations where you owe money to some people. So, whether you borrow money or not, you can always end up getting bankrupt and then filing a suit. Unpaid bills like medical care or rent, negligent accidents on your part, or a breach of contract can all lead to grim situations. The main concept that brings a variation in the volume of cases is that consumers incur debts and have difficulties paying them back. read more at: http://www.articlesbase.com/bankruptcy-articles/a-foresight-into-the-bankruptcy-filing-trends-for-2013-6419886.html

Casey Anthony questioned about bankruptcy filing

On Monday, Anthony came out of hiding for the first time since she was acquitted in the death of her daughter in 2011. She appeared at the Sam M. Gibbons United States Courthouse in Tampa, to answer questions in her recently filed Chapter 7 bankruptcy. First, she faced the media: Anthony exited an SUV into a throng of cameras and reporters. She was ushered to the courthouse under the arm of defense attorney Cheney Mason, a coat and hat covering her face as reporters shouted questions, including, “Did you get away with murder?” Read More: http://flcourier.com/2013/03/07/casey-anthony-questioned-about-bankruptcy-filing/

Wednesday, March 6, 2013

Bankrupt Detroit to become a ward of the state

WASHINGTON, February 28, 2013 ― Michigan Governor Rick Snyder will announce tomorrow (Friday) whether the state is taking over the city of Detroit, Michigan’s largest city. A state review team led by treasurer Andy Dillon concluded last week that Detroit is on the verge of financial collapse and recommended a takeover, which would allow Snyder to appoint an emergency manager to take control of the city’s spending. Detroit, which was once a monument to American ingenuity and success, lies half-empty and financially destitute. According to the review team, it is saddled with more than $14 billion in long-term debt and expectations of an additional $100 million deficit this year. Read more: http://communities.washingtontimes.com/neighborhood/politics-blue-collar/2013/feb/28/detroit-become-ward-state/#ixzz2MoLNYYkR

Bankrupt airline proves to be a winning lottery ticket

I’ve long been puzzled about why investors pour good money into bankrupt companies. General Motors, Trans World Airlines and many others saw inexplicable stock-price rallies weeks or months after court filings made clear that the shares would have no value. The recurring trading pattern seemed to have no rational explanation — until last month, when American Airlines announced that it was merging with US Airways. Shares in American’s parent, AMR Corp., lost 84 percent of their value on the day AMR filed for bankruptcy in 2011. They fell to 26 cents apiece, and they stayed in the bargain basement for most of last year. It looked like another no-hope stock, a sucker’s bet. rea more at:http://www.stltoday.com/business/columns/david-nicklaus/bankrupt-airline-proves-to-be-a-winning-lottery-ticket/article_3c788aba-8c87-5127-968a-108364877486.html

Failure to file taxes 'could bankrupt you'

It's better late than never when it comes to your taxes. If you haven't done your taxes for a year or two — or more — "get on it before CRA gets on you," says tax expert Evelyn Jacks. The author of books such as Jacks on Tax and Essential Tax Facts says you may face big penalties and interest charges for procrastinating. "If you voluntarily comply -- that is, file your tax return before you (are ordered) to file -- you will avoid gross negligence and possible tax evasion penalties." Things can get ugly, says John Waters, head of tax and estate planning at BMO Nesbitt Burns, "and repeat failure to file gets even uglier." The Canada Revenue Agency has recently been more aggressive in going after and fining people who don't file.

Millionaires fair goes bankrupt

The company which organises an annual trade for millionaires featuring luxury cars and boats, food and jewellry, was declared bankrupt on Tuesday afternoon. The Gijrath Media Groep, owned by entrepreneur Yves Gijrath, publishes the magazines Jackie, JFK and LXRY and organises associated events such as Masters of Lxry, the trade fair for the very rich which used to be known as the Miljonair Fair. The fair attracted an average 53,000 visitors every December. Whether this year's event will go ahead is not yet known and the company is believed to be working on a restart, the Volkskrant reported.

Solicitor Brian O’Donnell fails in latest bid to be declared bankrupt in UK

The High Court in London today dismissed a bid by the former property investor and his wife Mary Pat to reverse a decision to deny them bankruptcy in Britain. The couple had presented a number of new documents to the court under what they said were exceptional circumstances in the hope of turning around the previous decision. Read more at:http://www.independent.ie/irish-news/courts/solicitor-brian-odonnell-fails-in-latest-bid-to-be-declared-bankrupt-in-uk-29114031.html

Casey Anthony says at bankruptcy hearing she is living off the kindness of strangers

TAMPA, Fla. — Appearing in public for the first time since she was acquitted of murder, Casey Anthony revealed that she doesn’t have a job or a car, lives with friends and relies on unsolicited gift cards and cash to get by. “I guess you could say I’m living free off the kindness” of others, Anthony said at a bankruptcy hearing in Tampa. Read More At:http://www.washingtonpost.com/national/casey-anthony-says-at-bankruptcy-hearing-she-is-living-off-the-kindness-of-strangers/2013/03/04/305395ca-853a-11e2-a80b-3edc779b676f_story.html

Suzuki Slouches Toward Bankruptcy. America Shrugs.

Remember the outrage sparked by Saab's bankruptcy announcement? It set off a skirmish of accusations and denials, with investors clamoring to buy a stake in the quirky car company, then silently slinking away, until finally at the 11th hour, a group of Chinese and Japanese funders rode into Saab Town and saved the day. Back in November, Suzuki announced that it was filing for bankruptcy, too. The world yawned. True, there were some differences between the two. Saab was shutting its doors worldwide, while Suzuki was only 86ing the American portion of its car business. After the automaker closes up shop in the U.S., folks elsewhere on Planet Earth will still be able to buy Suzukis all they like. Read more at:http://www.thecarconnection.com/news/1082706_suzuki-slouches-toward-bankruptcy-america-shrugs

Wisdom Wednesdays With Lynn Richardson: Bankruptcy Myths

No one wants to be faced with a bankruptcy, but all too often, people learn that bankruptcy was a viable option to restore them to financial health AFTER it's too late -- AFTER they have lost everything, including, in many cases, their saving accounts, retirement fund, and other valuable assets. Here are a few myths and facts about bankruptcy to help you make a decision that could potentially help you preserve wealth: MYTH 1: If I file bankruptcy, my credit will be ruined forever and I will not be able to buy a home. Read more: http://globalgrind.com/entertainment/wisdom-wednesdays-lynn-richardson-bankruptcy-myths#ixzz2MoEpJa2c

Hualapai corporation seeks bankruptcy protection

FLAGSTAFF, Ariz. (AP) — The Hualapai tribal corporation that managed the Grand Canyon Skywalk has filed for Chapter 11 bankruptcy protection after a federal judge upheld a $28 million judgment in favor of the Las Vegas developer who built the glass bridge. Sa' Nyu Wa contracted with David Jin in 2003 to share revenue from the Skywalk that gives visitors a view of the Colorado River from beyond the edge of the canyon on the Hualapai reservation. The corporation has assets of up to $10 million from ticket sales but owes creditors as much as $50 million, court documents filed late Monday show. Read More at:http://www.businessweek.com/ap/2013-03-06/hualapai-corporation-seeks-bankruptcy-protection

Silver City’s Murray Hotel LLC files Chapter 11 bankruptcy

Murray Hotel LLC, which owns the Murray Hotel in Silver City, has filed for Chapter 11 bankruptcy protection. The historic hotel, built in 1938, is a local landmark noted for its Art Deco style. It sat dormant for years, and in 2005 it was bought by Kurt and Julianna Albershardt, who have worked to remodel the hotel, according to the website. Read more at:http://www.bizjournals.com/albuquerque/news/2013/03/06/murray-hotel-llc-files-bankruptcy.html

Tuesday, March 5, 2013

Metro Phoenix bankruptcies decline further

Valley residents picked up in January where they left off last year, by filing less often for bankruptcy. Filings in metro Phoenix fell a further 17.9 percent in January, marking the 24th consecutive month of year-over-year declines. The 1,084 bankruptcies last month reported by the U.S. Bankruptcy Court in Phoenix were down from 1,321 in January 2012 and from a cyclical peak of 3,063 in March 2010. January filings for all of Arizona slipped to 1,452, down 19.1percent from a year earlier. Read More at: http://www.azcentral.com/business/arizonaeconomy/articles/20130211bankruptcies-decline-further.html

California And Bankruptcy: How Often Do Municipal Bonds Default?

With all of the high profile municipal bond defaults and scares in the last few years from Vallejo, CA to Harrisburg, PA, it is easy to get spooked about the normally staid and safe muni bond market. So with that in mind, I wanted to put some numbers out there regarding municipal bonds, and help to quantify the risks for these securities. Bear in mind all of the figures I report here in this article come from one of four sources: Standard & Poors, Moody's, the NY Fed, and the MSRB (Municipal Securities Ruling Board). Read More at:http://seekingalpha.com/article/1248751-california-and-bankruptcy-how-often-do-municipal-bonds-default?source=google_news

Bosnian airline grounded over debt, faces bankruptcy-minister

SARAJEVO, March 5 (Reuters) - Bosnia's BH Airlines has been grounded and faces possible bankruptcy over an outstanding bank debt, a senior government official said on Tuesday. The Sarajevo-based carrier is solely owned by Bosnia's autonomous Muslim-Croat Federation, after Turkish Airlines pulled out of a joint venture in June last year and handed its 49-percent stake over to the government. Enver Bijedic, the Federation's minister for transport and communications, told Reuters that flights had been halted due to claims of some 7 million Bosnian marka ($4.6 million) by the Bosnian arm of Austria's Hypo Alpe Adria Bank. Read More:http://www.reuters.com/article/2013/03/05/bosnia-bhairlines-idUSL6N0BXF5Q20130305

Judge rules on bankruptcy issue of nursing homes

The Fort Lee-based owners of five Connecticut nursing homes that claim union-negotiated employee contracts helped push the companies into bankruptcy protection can modify the agreements, a federal judge has ruled. Judge Donald H. Steckroth, sitting in U.S. District Court in Newark, gave the owners of the homes - THCI Co., which owns four of the homes, and THCI Mortgage Holding Co., which owns the fifth - approval to change the collective bargaining agreements for six weeks. Read More at:http://www.northjersey.com/news/195277751_Judge_rules_on_bankruptcy_issue_of_nursing_homes.html

Westport bankruptcy converted to Chapter 11

The bankruptcy of the development company behind the Westport Waterfront project can move forward as a Chapter 11 reorganization. Inner Harbor West LLC, one of the companies that developer Patrick Turner formed as part of his planned revitalization of roughly 43 acres in southwest Baltimore, sought Chapter 11 status shortly after an involuntary Chapter 7 petition was filed against the company by two creditors.

NYC bankruptcy baron strikes again

Another week, another bankruptcy filing for pizza-parlor owner and real estate investor James McGown, who is quickly becoming a bankruptcy baron. On Tuesday, Mr. McGown submitted a Chapter 11 bankruptcy petition for his eight-year-old real estate firm Gowanus Inn Inc., citing assets between $1 million to $10 million and liabilities of the same amount. Neither Mr. McGown nor his lawyer, David Leventhal, returned calls requesting comment. The filing follows last week's Chapter 11 petition for P.J. Hanley, a Brooklyn-based bar also owned by Mr. McGown. In fact, Mr. McGown currently has three bankruptcy cases pending in federal bankruptcy court for the New York Southern District. Last year, he also filed petitions for South Brooklyn Pizza, a five-unit chain, and East River Mortgage Corp. Read More at: http://www.crainsnewyork.com/article/20130305/REAL_ESTATE/130309944

YTB International files for Chapter 11 bankruptcy

Online marketing company YTB International Inc. has filed for Chapter 11 bankruptcy protection. In its filing Friday with the U.S. Bankruptcy Court in Southern Illinois, the Wood River-based company listed its assets at $1.31 million and its debts at $7.18 million. “This bankruptcy proceeding will give YTB much-needed protection from creditors and an opportunity to reorganize its affairs," President and CEO Andrew Cauthen said Friday in a statement. The company plans to use the Chapter 11 process to "re-group, reorganize and re-launch," he said. Read more at: http://www.bizjournals.com/stlouis/news/2013/03/05/ytb-international-files-for-chapter-11.html

Hualapai corporation seeks bankruptcy protection

The Hualapai tribal corporation that managed the Grand Canyon Skywalk has filed for Chapter 11 bankruptcy protection after a federal judge upheld a $28 million judgment in favor of the Las Vegas developer who built the glass bridge. Sa' Nyu Wa contracted with David Jin in 2003 to share revenue from the Skywalk that gives visitors a view of the Colorado River from beyond the edge of the canyon on the Hualapai reservation. The corporation has assets of up to $10 million from ticket sales but owes creditors as much as $50 million, court documents filed late Monday show. Read More at:http://www.huffingtonpost.com/huff-wires/20130305/us-travel-grand-canyon-skywalk/?utm_hp_ref=homepage&ir=homepage

Good News for Some: Bankruptcy Filings Fall Further

With low interest rates allowing refinancing options, many companies are able to avoid filing for bankruptcy. This allows them to cut costs, save time and preserve management control, said Sam Gerdano, executive director of the American Bankruptcy Institute, an association of attorneys and other bankruptcy professionals. The total number of commercial bankruptcies dropped this February to 3,674 filings, down about 29% from the year earlier period, according to data from Epiq Systems Inc. After an uptick in bankruptcy filings associated with the financial crisis, they are on the down slope. Read More at http://blogs.wsj.com/deals/2013/03/05/good-news-for-some-bankruptcy-filings-fall-further/

How to Rebuild Your Credit After Filing for Bankruptcy

There are many signs the economy is improving: the rally on Wall Street, rising home prices and improving consumer confidence. But there are also signs that the economy is still struggling: unemployment is high, 1.2 million Americans filed for bankruptcy last year and 14.4% of Americans are underemployed. The Great Recession took a toll on Americans’ finances that have long-lasting effects and have damage their credit scores. A dented credit score affects everything from credit card and mortgage interest rates to insurance payments. It can even hurt hiring prospects. Read more: http://www.foxbusiness.com/personal-finance/2013/03/05/how-to-rebuild-your-credit-after-filing-for-bankruptcy/#ixzz2MiYiN9fU