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July 2011 Archives
The Orlando Sentinel reports that personal bankruptcy are down 13% this year. Interestingly the article mentions a potential cause being the slow down in foreclosures. This seems to agree with the previous blog posting, which also mentions the pace of foreclosures as a bankruptcy factor.
According to a NY Times article, bankruptcy filings are down. There are projected to be between 5 and 10% few filings this year. There are a number of factors cited: access to credit, amount of consumer debt, and economic factors (unemployment and foreclosures).
Jefferson County Alabama is struggling under $4.2 Billion in debt and is contemplating filing Bankruptcy under Chapter 9. A large part in the debt is due to bonds issued on a $2 Billion sewer project than the county has had difficulties refinancing. Kenneth Klee is currently working with the county to help them explore their potential options. Klee has worked many large bankruptcies, including Orange County CA. Original articles found here and here.
Ultimate Electronics was recently forced into bankruptcy. Now they are seeking $420,00 back from Apple as preferential transfers. Those reading this blog are probably all too familiar with preferences. No creditor wants to have to give back money, especially after they have probably lost money to the debtor. Original article can be found here.
Borders announced it was closing its remaining stores and would not emerge from bankruptcy. This probably doesn't come as much of a surprise. I didn't realize Borders was still around. Full article here.
At issue is a loan to the Dodgers. Dodger's owner, Frank McCourt, has managed to negotiate a lower interest rate which has satisfied the creditors; however, MLB is offering a loan at a lower interest rate. McCourt believes that the MLB is trying to force him out as owner. Full articles can be found here and here.
Article in the Hollywood reporter about David Bergstein. Bergstein is a money guy for financing movies. Improper actions by the Trustee are alleged. Usually its the Debtor doing something wrong. This is an interesting turnabout.
To bankrupt or not to bankrupt... Yes, it is a little cliché, but that was the question faced by CEO of Edison International, John Bryson, during the California electricity debacle. Now Bryson, has been nominated for the Secretary of Commerce. The full LA Times article can be found here.
Interesting, short article about the fees in the Texas Rangers baseball team bankruptcy. The team was sold for $593 million. $6.3 million is sought in fees - $159,000 is just for photocopying.
Defendant owned companies forced into Chapter 11 bankruptcy, but was not a debtor in the proceedings. The plan was confirmed and prohibited suits against the bankruptcy professionals and certain litigation against pre-bankruptcy creditors. Years later defendant sued plaintiff, pre-judgment creditors, and the bankruptcy professionals in an Indiana state court, based on Indiana law. The creditors removed the suit to bankruptcy court (28 U.S.C. 1452(a)) rather than asking the bankruptcy judge to enforce his order. The statute authorizes removal of any claim of which that court would have jurisdiction under 28 U.S.C. 1334, which confers on the district courts original jurisdiction of all civil proceedings arising under the Bankruptcy Code, or "arising in or related to cases under" the Code. The bankruptcy judge determined that the suit against the bankruptcy professionals was barred. Defendant filed an amended complaint eliminating all defendants except plaintiff and stating that the only claims arose from alleged violations of confidentiality agreements. The bankruptcy judge ruled that, as amended, the complaint was unrelated to the bankruptcy and ordered the suit remanded to the state court. The district judge affirmed. The Seventh Circuit concluded that the dismissal was not subject to review.
According to the Bankruptcy Mortgage Project's homepage:
The National Consumer Law Center created the Bankruptcy Mortgage Project as a resource for courts, consumers, trustees, mortgage servicers, attorneys, academics, and others in the bankruptcy community. It organizes and provides access to numerous local rules, forms, general orders, and court opinions addressing a variety of mortgage issues in consumer bankruptcy cases.
Bankruptcy: In re Lymberopoulous, 10-26209
Adv: Weinstein v. Lymberopoulous, 10-02055
Opinion Issued July 13, 2011
By Judge Jacqueline P. Cox
Click here to view and download the opinion in .pdf format
7th Circuit Opinion Summaries courtesy of Justia.com
Bankruptcy, Criminal Law, Government, White Collar Crime
Bankruptcy, Real Estate & Property Law, Tax Law
Bankruptcy, Commercial Law, Securities Law
Bankruptcy, Business Law, Securities Law
Bankruptcy, Utilities Law
Bankruptcy, Injury Law
Wisconsin smelting plant owed more than $1.3 million in delinquent utility charges to the local municipal utility when it filed for Chapter 11. Months later, despite the Automatic Stay, a utility company implemented a process pursuant to Wisconsin Statutes and Local Ordinances 66.0809 and 66.0627 by which the plant's unpaid utility bills became a lien against the Debtor's property. Both the Bankruptcy and District Courts found that none of the exceptions to the Automatic Stay applied to make their actions. They were, in fact, a violation of the Stay. The 7th Circuit Court of Appeals affirmed, holding that no exception to the Stay applied and the offending utility company creditor did not obtain a pre-petition security interest in the plant's property by providing services or by giving notice in the form of billing. Finally, the 7th Circuit agreed with the District Court that the utility bills produced did not amount to a "tax or special assessment" that would have exempted them from the operation of the Stay.
Check out this interactive map of US job growth and State by State statistics from CNN Money. Shudder ...
Mazyar M. Hedayat, Esq.
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