Education & Information About Restructuring & Insolvency

Wave of Restaurant Bankruptcies Could Signal Coming Recession

Wave of Restaurant Bankruptcies Could Signal Coming Recession

October 15, 2016

There have been 10 restaurant company bankruptcy filings since November 2015.  These companies, with approximately 1,000 combined locations, showcase the difficult operating realities of restaurant chains and could be a leading indicator of a...

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From the Oil Patch: Observations of Opportunity Amidst the Crisis

October 10, 2016

The past 20 months have witnessed the U.S. energy sector slide into a state of distress not experienced since the 1980s. The magnitude of the price collapse and its duration is causing pain everywhere, with producers trying to cut their operations to...

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Keen-Summit Capital Partners Wins Turnaround Management Association’s 2016 Transaction of the Year Award

October 3, 2016

Selling the  Aziz Convenience Store Chain at Bankruptcy Auction for $41.6 Million Harold J. Bordwin and Matt Bordwin, Principals and Co-Managing Directors of Keen-Summit Capital Partners LLC, have received the 2016 Transaction of the Year Award...

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eSign & Commercial Finance: A License to Trash the Original Note?

January 26, 2016

Are “electronic document” provisions appearing in your commercial loan documents?  This is the second in a series examining two provisions recently reviewed by me in commercial real estate transactions.   Unfortunately, the two provisions have serious problems: for UCC Article 3 notes, making a copy of it will not clothe the copy with Article 3 protections. Copy & Trash the Original Note: No No & No Electronic...

Lien Stripping in Bankruptcy

October 17, 2016

On October 11, 2016, Chief Judge Brendan L. Shannon of the Delaware Bankruptcy Court issued a letter ruling in which he opined on the appropriate valuation of a fist lien.  A copy of the Opinion is available here. While the ruling is short, it is important that lenders are cognizant of it.  Judge Shannon cites to a prior opinion he issued in which he held that “the operative date for valuation of residential property under §...

The Puerto Rico Oversight Board Has Been Appointed (Sell on the News).

September 1, 2016

Yesterday, August 31, President Obama appointed the 7 voting members of the oversight board for Puerto Rico under the law colloquially known as Promesa.  The board has a broad charter and a ridiculously impossible task in front of it. Back in June, in a moment of weakness, I told a friend of mine at a hedge fund, “Sure, you can try to put my name on one of the lists of nominees.”  Then came August and his liaison in...

New Rule Would Make It Easier For Consumers To Sue Banks

May 6, 2016

Per www.npr.orgMay 5, 2016:Many credit card and loan agreements these days have in the small type what's called a "mandatory arbitration clause." Most people don't even know what that means. But by signing, customers agree not to sue the financial firm in a class action lawsuit. Instead, they agree to work out any problem with an arbitrator hired by the bank."The company can sidestep the legal system, avoid accountability, and continue to pursue...

How a “Voluntary” Default under An Indenture Converted an Optional Redemption Provision into a Mandatory Redemption Provision Requiring Payment of a Make-Whole Premium

October 11, 2016

Although the Southern District of New York case we discuss in this blog entry is outside the restructuring context, we discuss it here because of the relevance of make-whole premiums in many restructuring deals and cases.  Indeed, courts in restructuring cases first look to standard contract/indenture interpretation cases (usually under New York law) to determine whether the make-whole premium has been triggered in a particular...

Jevic Could Be the Most Consequential Chapter 11 Decision in Many Years

October 14, 2016

The U.S. Supreme Court will hear the case of Czyzewski v. Jevic Holding Corp. during the new term that began last week.  The questions it presents are relatively simple.  First, can a bankruptcy court, in dismissing a case under the U.S. Bankruptcy Code, permit parties to “structure” the dismissal to include substantive provisions regarding the distribution of assets of a debtor’s bankruptcy estate, instead of simply...

New LSTA Par Confirm Penalizes Buyers for Settlement Delays

August 31, 2016

  In an effort to reduce settlement times, the Loan Syndications and Trading Association (the “LSTA”) recently revised its standard par loan trading documents to penalize buyers who take too long to settle. Beginning September 1, 2016, buyers who fail to fulfill their obligations to timely settle par loan trades will forfeit the right to receive interest that accrues prior to the settlement date. The changes do not apply to loans...

The Color of Credit: Cities vs. Banks

October 20, 2016

On Election Day, the Supreme Court will hear argument in the cases of  Wells Fargo v. City of Miami and Bank of America v. City of Miami. At issue is the standing of cities to sue banks for mortgage redlining and reverse redlining. The history of redlining is well known. Banks, in concert with the housing agencies of the New Deal, drew lines around minority neighborhoods where no home mortgage loans would be made (or backed by federal...

Delaware Organizational Meeting – IMX Acquisition Corp.

October 13, 2016

Upcoming Committee Formation Meeting: Wednesday, October 19, 2016, 10:00 a.m. Case Name: IMX Acquisition Corp.Case Number: 16-12238 (BLS) Location: The Doubletree Hotel, 700 King Street Wilmington, DE 19801 The Debtors’ petition can be found here.  The docket is available through Kurtzman Carson Consultants. Notice of Formation Meeting for Official Committee of Unsecured Creditors can be found here....

Netflix Barred by Bankruptcy Plan of Relativity From Streaming Films Before Their Release

September 26, 2016

Relativity Debtors are the “Masterminds” while Netflix sits in “The Disappointment Room” Faced with debts exceeding $1 billion and lacking liquidity, but hopeful that certain assets would bear bountiful fruit in due course,...

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Litigation Funder Monetizes Portion of Fraudulent Transfer Judgment in Cutting-Edge Transaction

September 19, 2016

Gerchen Keller purchases a portion of the interest in proceeds of $213 million fraudulent conveyance judgment in innovative public sale. An interesting transaction took place on September 8, 2016. The chapter 7 bankruptcy trustee for Magnesium...

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PUBLIC NOTICE OF SALE BY ONLINE AUCTION OF SHOPPING CENTERS: Two shopping centers located in Jasper, Alabama, to be sold individually. Online Bidding Only @ Bidding Ends 10/13/16

September 16, 2016

SALE OF TWO MALLS.  Notice is hereby given that Pierce & Associates, on behalf of Development Specialists, Inc. as Liquidating Trustee appointed in the chapter 11 bankruptcy case of In re J&E Land Company, Inc., Case No. 13-02081 (Bankr....

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