tag:blogger.com,1999:blog-8611063618710165622012-01-25T01:49:01.917-05:00A discussion of bankruptcy law and bankruptcy-related issuesAndynoreply@blogger.comBlogger1461100tag:blogger.com,1999:blog-861106361871016562.post-83425177111289302272010-07-12T10:54:00.003-04:002010-07-12T11:00:48.694-04:00

Beginning today, A Clean Slate will be at its new digs at acleanslateblog.com. Please update your browser bookmarks and RSS feed accordingly. Thanks.

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com6tag:blogger.com,1999:blog-861106361871016562.post-66474058598546386722010-07-12T09:00:00.003-04:002010-07-12T09:00:00.532-04:00

Because I am a nerdy restructuring and bankruptcy attorney, I am on a fair number of email listervs with colleagues. One recurring item in our discussions is what legendary bankruptcy attorney Max Gardner calls the "Alphabet Problem." If you click on that link, you get a wonderful, in-depth explanation of the Alphabet Problem that Max wrote. If you are like me, though, and have a short attention

Andynoreply@blogger.com8tag:blogger.com,1999:blog-861106361871016562.post-948508472844756972010-07-06T09:00:00.002-04:002010-07-06T09:00:11.070-04:00

"Zombie Debt" is a term that people in my business use for debt that is not legally enforceable. The debt generally has been either paid, settled, or discharged in a bankruptcy.So how does it happen?There an industry of debt buyers who buy debt -- both good and bad -- and try to collect it. The debt buyers usually purchase the debt at a discount. Because the debt was purchased at a discount, the

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com5tag:blogger.com,1999:blog-861106361871016562.post-70898238578539615262010-06-28T10:00:00.000-04:002010-06-28T10:00:02.669-04:00

A recent New York Times piece confirms a lot of what readers of A Clean Slate already know: A lot of debt settlement outfits are scams and don't deliver anywhere close to what they advertise.I have written about debt settlement here and here. These are some of the most visited posts on A Clean Slate. To summarize my views of debt settlement, it is a good idea for relatively few people and for the

Andynoreply@blogger.com13tag:blogger.com,1999:blog-861106361871016562.post-87958364438116234482010-06-21T12:00:00.002-04:002010-06-21T15:38:44.250-04:00

The Automatic Stay.It is one of the greatest and most powerful provisions of the Bankruptcy Code. If sections of the Bankruptcy Code were literary characters, the Automatic Stay would be a superhero.The Automatic Stay comes from section 362 of the Bankruptcy Code. Section 362 provides that the commencement of a bankruptcy case stays pretty much any action that creditors can take against a debtor

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-39887317457915948572010-06-07T09:15:00.001-04:002010-06-07T09:15:00.737-04:00

New York Times columnist Ron Lieber writes about student loans and bankruptcy in his Your Money column this week. Ron spotted this post from A Clean Slate about how student loans are like a tattoo and called me to chat about it. Ron happens to know me from years ago so this was a good opportunity to catch up on things.I don't get too involved in the legislative battles over changes to the

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-15431010911670800602010-05-27T10:44:00.004-04:002010-05-27T10:56:23.782-04:00

I wrote a short article on a very nerdy commercial bankruptcy litigation issue for the American Bankruptcy Institute. The article was published in the spring newsletter of the ABI's Bankruptcy Litigation Committee. I have received good feedback on it so I thought it might be worth sharing a link here.Regular readers of A Clean Slate might recall that I discussed Rule 2019 a little back in January

Andynoreply@blogger.com0tag:blogger.com,1999:blog-861106361871016562.post-77244050471944172432010-05-17T14:00:00.003-04:002010-05-26T09:53:00.631-04:00

A couple times recently that people have asked me the same simple question and been surprised by the answer.The question: "When should people call you?"The answer: "When the first really bad thing happens."Let me give a little context. The first time I heard this question, it was from a consultant who was only vaguely familiar with a bankruptcy and restructuring practice. The second was from

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com3tag:blogger.com,1999:blog-861106361871016562.post-21310363603716919482010-05-10T14:00:00.003-04:002010-05-10T14:00:04.541-04:00

In the TV show M*A*S*H, there is a scene in which Colonel Potter is trying to reach a general who happens to be the head chaplain for the U.S. Army. He calls the general's office and asks for the general. He is surprised to discover that he is speaking to the general himself. Colonel Potter then utters the famous line, "The general answers his own phone. He must be a Unitarian."I like the story

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-41085970439963454462010-05-03T13:30:00.000-04:002010-05-03T13:30:00.992-04:00

Readers of A Clean Slate might recall that I have written about Debt Settlement in the past and have suggested that it generally isn't a good idea. I received a number of interesting comments in response to the post, few of which agreed with me. The federal government recently weighed in the matter though and their findings are consistent with what I have seen.The basic allegation will surprise

Andynoreply@blogger.com3tag:blogger.com,1999:blog-861106361871016562.post-82514236086912591772010-04-26T13:00:00.002-04:002010-05-03T09:09:15.076-04:00

Do you think that you might need a bankruptcy attorney? Would you like some help finding one?If you are an individual who might be in financial distress, whether it is from unemployment, a failing business, a divorce, illness, or any other of the typical reasons, and could use a consultation with someone like me, there a couple relatively easy ways to find someone who might be able to help.The

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com5tag:blogger.com,1999:blog-861106361871016562.post-7420022598256143372010-04-19T10:00:00.003-04:002010-04-19T10:00:00.397-04:00

"Neither a borrower nor a lender be" is one of the more famous lines uttered by Polonius in Hamlet.For those of you, like me, who didn't always pay great attention in high school English class, Polonius was counsel to King Claudius' and father to Laertes and Ophelia, Hamlet's girlfriend. Frankly, Polonius was a bit of gasbag. He also was often mistaken in his perceptions. On the occasion of

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com10tag:blogger.com,1999:blog-861106361871016562.post-16237479627611641662010-03-30T10:00:00.005-04:002010-07-02T13:49:22.649-04:00

I am writing this just before I leave Bankruptcy Boot Camp, a rigorous, four-day seminar that trains a handful of people at a time in specific, obscure areas of bankruptcy practice. Only about four hundred attorneys have completed the course. By my count, I am one of about a dozen or so Boot Camp "survivors" in North Jersey.Bankruptcy Boot Camp is the brainchild of Max Gardner, a legendary

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com6tag:blogger.com,1999:blog-861106361871016562.post-36634729420669811172010-03-22T11:30:00.001-04:002010-03-23T08:13:34.049-04:00

I know it's hard. I know you're desperate. I know you're stressed. I know you're losing sleep.But whatever you do, don't touch your retirement account. Don't borrow against it. Don't withdraw from it. Leave it alone.Why?Because it almost certainly is an exempt asset. That means creditors can't touch it. And more importantly, if you have to file a bankruptcy case, it means that the trustee can't

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com10tag:blogger.com,1999:blog-861106361871016562.post-88161399637015022342010-03-15T11:45:00.000-04:002010-03-15T11:45:00.053-04:00

"Our law firm is a debt relief agency. We help people file for relief under the Bankruptcy Code."You see this odd disclaimer on various documents, websites and advertisements. Where does it come from and why? It comes from section 528(a)(4) of the Bankruptcy Code.Congress decided a few years back to get in the business of regulating what attorneys can tell potential and actual clients. There are

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-54604184680784503042010-03-12T09:55:00.006-05:002010-05-24T12:23:14.296-04:00

Every person in financial distress has his or her own unique story. There are lots of different paths that can lead to my door. But there is at least one very common trait that I see in a lot of my clients.They are stressed.It is relatively rare to see someone with serious financial issues who doesn't have something else going on as well. They often have personal troubles such as a recent divorce

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com3tag:blogger.com,1999:blog-861106361871016562.post-24397905323496097432010-03-08T11:37:00.000-05:002010-03-08T11:37:00.314-05:00

Do you need an attorney to file bankruptcy?If you are an individual, technically, no.Is it a good idea to file a bankruptcy case without an attorney? No.Why?Because bankruptcy law is hard. It is full of arbitrary rules, complex procedures, and odd results.I have been practicing restructuring law almost exclusively for fourteen years. Have you heard of the 10,000-hour rule and how it takes about

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com5tag:blogger.com,1999:blog-861106361871016562.post-91476884609491628412010-03-01T11:03:00.001-05:002010-03-01T11:03:00.192-05:00

I get this question a lot. "Should I do debt settlement?"The answer is easy: "Almost certainly not."Why? Because there is almost always a better alternative.The basic idea of debt settlement is simple: You stop paying your credit cards. You build up a "war chest" of funds. You offer the lure of funds to credit card companies to convince them to take less than the full amount of the balances. You

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com60tag:blogger.com,1999:blog-861106361871016562.post-10241251101034799992010-02-22T11:00:00.001-05:002010-02-22T11:00:06.012-05:00

It might be the number one question I get asked about personal bankruptcy."Can I keep the house?"It makes sense. We are often very attached to our homes. Few of us want to move if we don't have to.It is probably also the area of bankruptcy law where there is the most confusion. I know this because when I give the answer, people are often surprised.The answer: "It depends"Really, there is no hard

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com4tag:blogger.com,1999:blog-861106361871016562.post-64377238855016148372010-02-16T10:00:00.000-05:002010-02-16T10:00:00.082-05:00

One of the harder discussions I have with consumer clients is explaining student loan debt. That's because student loan debt is troublesome in a lot of ways. To show the quirky nature of student loans, I am using a little analogy.Here are four ways that student loan debt is like a tattoo.#1 You tend to get it when you're young.What's the typical age for the first tattoo? I found one Danish site

Andynoreply@blogger.com68tag:blogger.com,1999:blog-861106361871016562.post-86630203468046330202010-02-08T10:00:00.002-05:002010-03-31T08:13:25.178-04:00

About a dozen years ago, my wife gave me a very special birthday present. She arranged for us to have a weekend at Pebble Beach and have me play a round of golf there.This was a special present not just because I got to play Pebble Beach. The year prior I had spent my birthday doing my second of six rounds of chemotherapy. (Ed: It was acute non-Hodgkins lymphoma and I'm fine now, thanks.) So

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com7tag:blogger.com,1999:blog-861106361871016562.post-79852482920582286272010-02-01T11:03:00.005-05:002010-03-02T11:47:05.864-05:00

What's the most common mistake that people in financial distress make?They wait too long before calling someone like meOr at least they probably wait longer than they should.People get into financial distress for all sorts of reasons. They have a health issue, sudden loss of income, poor financial planning, divorce, or any combination of those or other reasons. Some of these we can control to

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-87623064796261676762010-01-28T08:43:00.006-05:002010-01-28T16:27:59.590-05:00

I want to point readers' attention to a very good post from Professor Jonathan Hayes. Professor Hayes makes a quick list of the biggest mistakes in the 2005 Bankruptcy Code amendments that Congress should fix.For those unfamiliar, in 2005 Congress made a bunch of amendments to the Bankruptcy Code. In theory some of the amendments might have been a good idea. In practice just about no bankruptcy

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com22tag:blogger.com,1999:blog-861106361871016562.post-1949614518931723132010-01-26T18:05:00.011-05:002010-01-27T13:15:02.394-05:00

The home mortgage modification programs aren't working.How do I know? My clients are telling me.I have been spending a decent amount of time recently speaking to clients, potential clients, and other lawyers who have clients who might need my services. Complaints about mortgage lenders and mortgage modification programs are a regular feature of these discussions.Just about no one has anything

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com6tag:blogger.com,1999:blog-861106361871016562.post-70285800192470672672010-01-22T08:35:00.004-05:002010-01-22T08:39:10.673-05:00

Morning Edition had a story yesterday on the increase in personal bankruptcy filings. 1.4 million in 2009. Read the script or listen here.

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-40509249767878436772010-01-18T14:25:00.008-05:002010-01-19T11:11:48.798-05:00

Regular readers might recall last month when we discussed a claims trading issue and a post from In The Red. Since then, I helped write a client alert for my old firm about a decision from the Southern District New York on the issue. And now there is yet another case percolating, this time from Delaware.To recap, the basic issue is whether to impose the disclosure requirements contained in

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com6tag:blogger.com,1999:blog-861106361871016562.post-74373682338945556112010-01-14T16:51:00.003-05:002010-01-14T17:29:58.583-05:00

I touched on this a bit a couple weeks ago when discussing starting my own firm. I also noticed there was a lot of discussion on the Twitter feeds today about lawyers' blogging because a lot of tweeters were at a Marketing Partners Panel on social media. In the tweets I saw a lot of discussion about the upside of lawyers blogging but didn't notice much about the potential pitfalls.To be clear, I

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com0tag:blogger.com,1999:blog-861106361871016562.post-48353323766958319712010-01-13T11:47:00.004-05:002010-01-13T12:10:49.535-05:00

We normally stick to bankruptcy and law practice here at A Clean Slate, but the news from Haiti today is too compelling to ignore. In particular, as a Francophone living in an area with so many Haitians, this one hits a little close to home.So here are some ways you can help:The Red Cross has a news page with updates. One option is to text “HAITI” to 90999 to donate $10 to American Red Cross

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com0tag:blogger.com,1999:blog-861106361871016562.post-75294174255442082922010-01-11T09:20:00.002-05:002010-01-11T09:20:00.471-05:00

So anyone who has been following along knows that I opened my own office last week. On Friday, I got around to sending out some announcements to people. Lots of folks knew about my shop either from hearing it directly from me, picking it up on Linkedin or Facebook, or reading it here. But still there were lots of people I hadn't reached yet. And of course the success of this enterprise largely

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-81484361357410629852010-01-07T09:16:00.004-05:002010-01-07T09:46:05.101-05:00

Because I am going to be speaking on one of the panels!I am going to be on a social media panel for the law school section of the American Bankruptcy Institute's Spring Meeting, May 1 at 4:00. It's in National Harbor, Maryland, near D.C. I'm on a panel with Professor Nancy Rapoport of UNLV, Karim Guirguis of the ABI, and Texas bankruptcy attorney Steve Sather. Steve has a great blog, by the way.

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-16231599864785372712010-01-06T12:47:00.003-05:002010-01-06T16:29:53.570-05:00

It took a bit of pushing, but I finally gave birth to my own practice. I guess if I smoked I would be handing out cigars or something at this point.The Law Offices of Andy Winchell opened for business this week. As you might expect, I will focus on a bankruptcy practice. I can help in either commercial or personal cases. I probably can help in other areas as well but with the economy as it is and

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com3tag:blogger.com,1999:blog-861106361871016562.post-21729182852476899072009-12-24T09:30:00.001-05:002009-12-24T09:30:00.775-05:00

When I started A Clean Slate back in April, it was mostly because I was noticing topics which interested me but for whatever reason wouldn't make good articles. I didn't know who was going to read the blog and didn't really care. Whether I had a handful of readers or hundreds or thousands wasn't too terribly important. I didn't know what would come from it and still don't.One of the very pleasant

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-9200848114867292682009-12-09T12:53:00.003-05:002009-12-09T13:21:21.187-05:00

Claims trading is a relatively obscure issue but one that practitioners in larger chapter 11 cases encounter routinely. For those who are unfamiliar, there is a sophisticated market for trading in bankruptcy claims. Hedge funds and other similar investors speculate about the return to creditors and then purchase claims from the creditors based upon such speculation. So, for example, if during a

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-87923187330767365192009-12-02T15:10:00.005-05:002009-12-02T15:19:25.360-05:00

As discussed here, the Supreme Court held arguments on two bankruptcy cases yesterday. Transcripts are available.Here is the transcript for the Milavetz case, the First Amendment challenge to portions of the 2005 amendments to the Bankruptcy Code.And here is the transcript to the Espinosa case, the student loan case

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-87640772313559558592009-12-01T15:13:00.003-05:002009-12-01T15:19:45.164-05:00

Not sure how I missed this a couple months ago but here is a good discussion of the Milavetz case from Law.com.I worked some with Eric Brunstad on the Anna Nicole Smith case years ago. He is, of course, a very bright guy. I'm sure the petitioners handled the case well.

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-46164092010401320162009-12-01T08:54:00.004-05:002009-12-01T09:10:19.176-05:00

We touched on this some earlier in one of the very first posts on the blog, but there is a new study suggesting that the 2005 amendments to the Bankruptcy Code helped worsen the housing crisis. Wenli Lee and Michelle L. White discuss the study in an article today in the Wall Street Pit. The basic idea is that by making bankruptcy less available and preventing people from being able to discharge

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-21333998855637051672009-12-01T08:05:00.003-05:002009-12-01T08:14:05.454-05:00

The student loan bankruptcy case being heard at the Supreme Court today received some attention from National Public Radio's Nina Totenberg this morning. On Morning Edition, she discussed the facts and procedural history of the case.Listening to the report reminded me of the "Catch-22" nature of the government and lenders' position. They argue that for any portion of a student loan obligation to

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com5tag:blogger.com,1999:blog-861106361871016562.post-36279595362803566942009-11-30T17:06:00.003-05:002009-11-30T17:29:35.264-05:00

The Supreme Court will hold oral argument in two bankruptcy cases on Tuesday, December 1.The first case is Milavetz, Gallop & Milavetz, P.A. v. United States. Milavetz is a small law firm in Pennsylvania that filed an action to declare that portions of the 2005 amendments to the Bankruptcy Code violate the First Amendment. Such provisions include the prohibition against counseling clients to

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com0tag:blogger.com,1999:blog-861106361871016562.post-82017557561524435302009-11-30T08:24:00.003-05:002009-11-30T09:18:10.870-05:00

Today's Financial Times features a column from Professor Willem Buiter, [Update: Named today as chief economist for Citigroup] who suggests that the effect of Dubai's default on the world economy might be overstated:Take the worst-case scenario where the debt, all $60bn of it, is worthless. The wealth loss would, through the wealth effect on consumption, reduce consumer expenditure by no more

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com0tag:blogger.com,1999:blog-861106361871016562.post-11109172818032541492009-11-17T08:15:00.004-05:002009-11-19T15:14:10.681-05:00

At the American Bankruptcy Institute Legislative Symposium on November 16-17, one of the more interesting ideas came from Harvey Miller. Harvey suggested that the federal government become a leading provider of debtor-in-possession financing.To get everyone up to speed, most chapter 11 bankruptcy cases feature debtor-in-possession ("DIP") financing wherein a lender provides liquidity to the

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-4464189475527762352009-11-12T14:50:00.003-05:002009-11-12T15:10:29.156-05:00

There were a lot of questions regarding the U.S. Government's involvement in General Motors earlier this year. And there were many grounds on which to question the government's actions and whether the facilitating the bankruptcy was a good idea. Most of us assumed however, that the government would not get much direct return on its investment.How much would the calculus change if we knew that the

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-15019055072631545392009-10-13T07:30:00.002-04:002009-12-01T08:53:21.058-05:00

Corinne Ball, head of Jones Day's bankruptcy group and lead counsel to Chrysler, had a piece in the New York Times Dealbook section recently. It is an interesting read. One section I noticed:Of course, one can criticize the lender and purchaser choices, particularly when the lender is the Treasury. Nevertheless, one must consider the factors potentially motivating the policy choices made at the

Andyhttp://www.blogger.com/profile/09622779909538501157noreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-43018940843833302502009-09-28T11:42:00.002-04:002009-09-28T11:54:52.992-04:00

My apologies and condolences to anyone (everyone?) on my contact list who got a phishing scam email from a hacker using my hotmail account. I contacted Microsoft about it and have been changing email accounts the last couple of days.

Andynoreply@blogger.com0tag:blogger.com,1999:blog-861106361871016562.post-61541919569526593212009-09-14T05:05:00.000-04:002009-09-14T05:05:00.369-04:00

I had hypothesized recently that "it is hard to imagine any health care reform that won't reduce bankruptcy rates at least to some degree." It turns out I might have been completely wrong about that.Check out what Dr. David Himmelstein, one of the authors of the famous study connecting medical costs and bankruptcy, said in a recent New York Times interview:Q. Would any of the plans under

Andynoreply@blogger.com0tag:blogger.com,1999:blog-861106361871016562.post-82280647144262261542009-08-20T07:00:00.000-04:002009-08-20T07:00:05.166-04:00

Credit Slips recently had an addition to the discussion on medical debt in bankruptcy. Most of our readers are probably well familiar with the issue by now but following is an abbreviated description of it.In a nutshell, medical debt is a factor in a substantial chunk of individual bankruptcy cases. Whether that portion is a quarter, a half, or three quarters apparently is debatable. With

Andynoreply@blogger.com4tag:blogger.com,1999:blog-861106361871016562.post-22129177801930398752009-08-03T07:50:00.001-04:002009-08-03T08:34:43.879-04:00

I ended up taking the New Jersey Bar Exam last week. It is sort of a long story but this was my third bar exam. I took California back in 1996, New York in 2006 when I moved back east, and now New Jersey in 2009. Three bar exams in thirteen years definitely gives one a little perspective on the process. Other than losing some work and blogging time while trying to undertake minimal preparations

Andynoreply@blogger.com12tag:blogger.com,1999:blog-861106361871016562.post-24109593051560675602009-06-21T10:50:00.001-04:002009-06-21T15:45:04.306-04:00

The U.S. Supreme Court's latest addition to bankruptcy jurisprudence might be the least useful opinion in recent memory. It requires a certain gift to take a clear circuit split and provide essentially no guidance at all to which circuits might be correct. But the Travelers opinion does just that.For those who have not been following along, the case of Travelers v. Bailey has a long and tortuous

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-81127327008199955392009-06-18T11:28:00.004-04:002009-06-18T11:31:40.300-04:00

This morning the U.S. Supreme Court upheld the bankruptcy court's order enjoining lawsuits against Travelers. Opinion is available here. More discussion to follow in upcoming days, I imagine.

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-15869425056815164272009-06-11T17:34:00.000-04:002009-06-11T17:34:00.534-04:00

As usual when I discuss anything of a political nature, I will preface my comments by noting that this not a political site and that politically I am a non-partisan moderate. And given the nature of transaction, I don't have the financial background to comment intelligently on whether the Chrysler sale was economically wise.By getting the general public to the focus on the duration of Chrysler's

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-51587511876407395732009-06-09T11:46:00.002-04:002009-06-09T11:46:00.670-04:00

With the Chrysler sale appeal currently pending at the Supreme Court, there have been occasional questions and concerns about whether the sale violates the absolute priority rule. Now is a good time to lay to rest any confusion about the role of the absolute priority rule here.First a quick primer on the absolute priority rule: It has its origins in the Bankruptcy Act of 1898 and the requirement

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-85350629877192096252009-06-08T16:20:00.002-04:002009-06-08T16:24:26.089-04:00

From the New York Times:The United States Supreme Court agreed Monday afternoon to delay the sale of most of Chrysler’s assets to Fiat pending further consideration of an appeal by three Indiana state funds, in a move that injects a new element of uncertainty over the carmaker’s bankruptcy case.Justice Ruth Bader Ginsburg, who handles emergency matters arising from the United States Appeals Court

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-19901861619036017912009-06-05T10:37:00.005-04:002009-06-06T09:49:07.789-04:00

By now many readers of this blog will have heard or read about the Harvard study that came out this week showing that medical bills play a significant role in over sixty percent of personal bankruptcy cases. Here is a story from CNN reporting the study.Most versions of the story that I read did not explain that the 2009 study is a sequel. The results are not very different from a similar study

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-54843345446399985202009-06-03T08:24:00.003-04:002009-06-03T09:01:55.210-04:00

There is a post on the Legal Blog Watch entitled Bankruptcy Lawyers: Parasitic or Productive? which suggests that perhaps bankruptcy attorneys should reduce their fees when bankruptcy cases get complex and provide less of a return to creditors. With high-profile bankruptcy cases in the news in recent days, this was one of the numerous articles about bankruptcy attorneys and their fees. Without

Andynoreply@blogger.com15tag:blogger.com,1999:blog-861106361871016562.post-41782251580581777702009-06-02T08:08:00.002-04:002009-06-02T08:55:48.781-04:00

This post comes in response to an excellent comment on yesterday's post on the legality of the Chrysler sale. The commenter asked asked about the portion of the Chrysler sale opinion (p. 42-44) dealing with "personal injury, property damage, and wrongful death claims of current and future litigants injured by Chrysler cars bought before the sale to Fiat" and whether there will be any recovery

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-9598175643504499952009-06-01T14:21:00.005-04:002009-06-02T08:58:28.089-04:00

With the Chrysler and GM bankruptcies at the forefront of attention in recent days, I have noticed that I have been spending an increasing amount of time discussing the propriety and legality of the Chrysler sale with friends and neighbors. So perhaps it worth sharing a few thoughts here. With the benefit of the sale opinion now (available here) there is little doubt that the sale was legal

Andynoreply@blogger.com3tag:blogger.com,1999:blog-861106361871016562.post-1593767503681982422009-06-01T08:41:00.002-04:002009-06-01T08:43:22.031-04:00

If you would like to read Judge Gonzalez' opinion on the Chrysler sale, it is available for free here.

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-3800927589603490682009-05-28T08:40:00.001-04:002009-06-01T15:07:59.664-04:00

We had a good reaction to Tuesday's entry on Judge Sotomayor's bankruptcy opinions. I was unaware of the prevailing criticisms of Judge Sotomayor at the time that I was writing the post. Because there was so much interest in the subject, I went back to see whether there might be any additional bankruptcy opinions that I might have missed. Sure enough, Judge Sotomayor authored the Second

Andynoreply@blogger.com5tag:blogger.com,1999:blog-861106361871016562.post-68468458382681412002009-05-27T13:19:00.003-04:002009-05-27T13:33:40.561-04:00

According to reports coming from Judge Baum's courtroom, he has changed the schedule for the crucial hearing on the right to move the Phoenix Coyotes. That hearing now is scheduled for June 9.Regular readers might recall that whether the NHL can dictate where a team plays has a huge effect on the value of the team. Jim Balsillie is offering over $200 million if he can relocate the team to

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-45979966203603627722009-05-26T12:56:00.004-04:002009-05-27T10:30:38.969-04:00

Lost in the excitement over GM, Chrysler and the other high-profile bankruptcy cases, there is a decision upcoming in a bankruptcy case pending before the Supreme Court. I discussed the oral arguments here and the effect that the decision will have an a current circuit split here. Back then, I did not hazard a guess as to which way the Court would rule. But today we have a new tool.The New

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-21544516345674820362009-05-26T12:02:00.002-04:002009-05-27T10:29:00.866-04:00

Since hearing about President Obama's selection of Judge Sotomayor to fill the vacancy on the Supreme Court, I have been reading Judge Sotomayor's reported decisions arising in bankruptcy cases. Although this review is not exhaustive, I have not found anything particularly troublesome from a bankruptcy perspective yet.Judge Sotomayor authored the Second Circuit's opinion in In re Adelphia Comm.

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-35157463999378982512009-05-26T10:11:00.004-04:002009-05-26T10:24:31.578-04:00

According to this article from the New York Times (free registration required), Weil Gotshall and Kirkland & Ellis are expected to represent General Motors when it files its chapter 11 case. Weil will represent the debtor in possession and Kirkland will represent the reformed GM after the 363 sale.A reason that so many lawyers are needed is that the reorganization, as envisioned by the automaker

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-36356686469421950512009-05-26T08:58:00.000-04:002009-05-26T12:00:25.802-04:00

With President Obama about to announce Judge Sotomayor as his nominee to the Supreme Court, SCOTUSBlog has an excellent piece this morning about the nominee. If your friends and family are like mine, you will get at least a question or two about the nominee. At a minimum, reading this will provide you some basis to respond intelligently.

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-49980140003797234182009-05-25T16:22:00.003-04:002009-05-25T16:29:07.346-04:00

The Globe and Mail reports this afternoon that the NHL and Jerry Moyes have agreed on operation of the team during the bankruptcy case: The NHL and Phoenix Coyotes owner Jerry Moyes have essentially agreed on how the team will be operated on a day-to-day basis as a result of court-ordered mediation.Both sides will be able to tell U.S. Bankruptcy Court Judge Redfield T. Baum at a hearing on

Andynoreply@blogger.com3tag:blogger.com,1999:blog-861106361871016562.post-34639464181417116832009-05-22T11:54:00.003-04:002009-05-22T12:00:10.015-04:00

This is brilliant. I wish I had thought of it myself:In a surprise announcement, US President Barack Obama announced earlier today that a new government organization is being created to oversee the takeover of the fledgling Phoenix Coyote hockey franchise.“It is in our national interest to have a profitable, stable, and fan-friendly hockey industry within this nation. This isn’t something we

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-1004442184851955542009-05-22T08:36:00.006-04:002009-05-22T11:24:39.246-04:00

Here is a very interesting read from The American Lawyer. Last year the smaller regional firms grew more than the larger firms in major urban areas: Reports of their demise, it turns out, were premature. For years, the regional firms that constitute much of the Second Hundred were told that they were exactly the wrong size: too big to compete with the narrow focus of boutiques and too small to

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-27371114431406200922009-05-22T07:55:00.005-04:002009-05-22T11:25:06.032-04:00

In a move that should surprise no one, the Washington Post reports today that GM will file chapter 11 as early as next week: The Obama administration is preparing to send General Motors into bankruptcy as early as the end of next week under a plan that would give the automaker tens of billions of dollars more in public financing as the company seeks to shrink and reemerge as a global competitor,

Andynoreply@blogger.com3tag:blogger.com,1999:blog-861106361871016562.post-88849278927824877462009-05-21T13:05:00.001-04:002009-05-21T13:07:57.738-04:00

From the New York Times: The United Automobile Workers union said Thursday that it had reached a tentative deal with General Motors and the Treasury Department that would help G.M. cut its labor costs and reduce its obligations to a new retiree health care fund by billions of dollars.The U.A.W. did not release details of the deal, which must be ratified by G.M. workers. The agreement is expected

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-90338114583252536122009-05-21T08:01:00.003-04:002009-05-21T08:14:07.950-04:00

It's not a global settlement but resolves a lot of issues for the PBGC, Daimler and Cerberus. It puts a small dent in a $10 billion dollar pension shortfall. Here is a summary of the terms from Randy Reese: * Daimler will forgive all of its outstanding loan ($1.5 billion) to the Debtors under the Second Lien Credit Agreement, and Cerberus will forgive all of its outstanding loan ($500 million)

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-14741430084298873902009-05-20T09:20:00.005-04:002009-05-20T15:02:53.969-04:00

As discussed here and extensively in the media, one of the major issues in the Phoenix Coyotes case is whether the NHL has the right to control where its franchises play. This is an issue of competing considerations in a bankruptcy case. On the one hand, sports leagues in the United States operate more like franchised restaurants than like true competitors. McDonald's wouldn't want two

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-84860523362174976312009-05-20T07:34:00.004-04:002009-05-20T08:15:10.072-04:00

Judge Baum has ordered the Phoenix Coyotes and the NHL to mediation, but not on the issue that seems more suited to mediation. From Bloomberg: The Phoenix Coyotes and the National Hockey League were ordered by a judge to try to resolve their dispute over who should control the team while it’s in bankruptcy.U.S. Bankruptcy Judge Redfield T. Baum, at a hearing today in Phoenix, ordered the two

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-70795208341436287472009-05-19T22:46:00.000-04:002009-05-19T22:46:00.728-04:00

Here is a piece from an article discussing bankruptcy on a global level. It points out that reforms of insolvency laws often take place at a time of financial crisis: Importantly, systemic crisis periods are also periods of great opportunity for meaningful reform that would otherwise be stymied by powerful political interests. Claessens et al. (2002) provide examples of such reforms from East

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-49790733914766070322009-05-19T17:16:00.002-04:002009-05-19T17:19:14.751-04:00

At least that's what I am reading on the many live updates and Twitter feeds coming from the courthouse.

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-88583724793262830372009-05-19T16:40:00.007-04:002009-05-19T17:08:45.712-04:00

The Toronto Star is live-blogging and has Twitter feeds. Go here.Update: The Arizona Republic has a live chat going from its Twitter feed. Go here for the live chat.Further update: The Twitter feed from Chris Johnston is excellent.

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-31920267841834725152009-05-19T14:17:00.002-04:002009-05-19T14:22:01.862-04:00

From Reuters: General Motors Corp's plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-23679933806582875112009-05-19T13:09:00.004-04:002009-05-19T13:13:15.076-04:00

From the Arizona Republic:Although court filings already number in the hundreds of pages, the key issues in today's Phoenix Coyotes bankruptcy hearing are simple.• Who controlled the team, franchise owner Jerry Moyes or the National Hockey League?• Regardless of who had control, can a team decide to move without approval of its league? Where the hockey franchise plays in the fall, and who

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-22118154362136961292009-05-18T17:00:00.002-04:002009-05-18T17:04:43.367-04:00

The Wall Street Journal is reporting that CrossHarber Capital Partners has a deal to acquire the Yellowstone Club. Details here.Hat tip: netDockets

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-28621553949016074272009-05-18T11:43:00.002-04:002009-05-18T11:46:18.165-04:00

If this were not apparent already:If General Motors follows Chrysler into bankruptcy court, as many are now expecting, it is likely to be far more painful for both the carmaker and the U.S. economy than its smaller rival’s bankruptcy filing of a few weeks ago.GM's vast scale and complex network of partners make the ramifications of a bankruptcy highly unpredictable, especially given the

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-55875699406757484352009-05-18T09:54:00.005-04:002009-05-18T11:23:48.598-04:00

There are so many news stories out there now about the Phoenix Coyotes case that you would think it was one of the Big Three auto manufacturers rather than a struggling hockey franchise in the Sun Belt. That said, the Phoenix Coyotes case is fascinating at a couple of levels.First, there is the issue of control of the case. As we discussed a couple weeks ago, Jerry Moyes filed the case with the

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-7346688552980909652009-05-18T09:22:00.003-04:002009-05-18T09:29:10.731-04:00

Here is a funny site worth checking out if you have a few minutes. Bankruptcy Bill has bankruptcy-practice-based cartoon strips, haiku, and other such fun stuff. This morning was the first time I had bumped into it. I really liked this one.

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-50515082523574915662009-05-18T09:01:00.002-04:002009-05-18T09:12:27.781-04:00

It is an ironic situation for Michigan. Even as the automotive sector has been the subject of case after case, many of the big cases are going to Delaware and New York. The Freep reports:Detroit can't even realize the economic benefits to be had from the bankruptcies of its largest companies.AdvertisementThe headquarters for Chrysler and General Motors might be in Michigan, but when Chrysler

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-88689956133134144262009-05-15T10:09:00.002-04:002009-05-15T10:17:07.533-04:00

CNBC reports that GM indicated its bankruptcy intentions in a regulatory filing on Thursday: General Motors said Thursday night, it would most likely pursue the same legal strategy as Chrysler if it spirals into bankruptcy...The GM disclosure, in a regulatory filing, marked the first time the automaker has said it would most likely follow the same legal strategy Chrysler is using under federal

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-16709374449711591242009-05-15T09:52:00.002-04:002009-05-15T10:03:23.853-04:00

Harvard's Mark Roe has a piece in Forbes.com about how the Chrysler sale has not been put to a market test. Here is a taste:But there was a way to check the bona fides here to convince Buffett and financial players that the deal was fair: The court could have market-tested the plan. If the court and the Treasury had given Buffett and others the chance to outbid the Treasury for those assets and

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-21034689795429549742009-05-15T07:47:00.002-04:002009-05-15T07:51:17.348-04:00

As of Friday morning, our chosen prediction market lists about an 85% chance for a GM filing in May or June 2009. That is up a few points from a few days ago. Inkling markets lists June 2009 at $44.71 and May 2009 at $40.46. View the full report here.

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-13748569389717925822009-05-14T09:34:00.004-04:002009-05-14T09:40:07.331-04:00

The New York Post reports this morning that Clear Channel Communications is looking at a restructuring: Radio and billboard giant Clear Channel Communications has begun reaching out to lenders about restructuring the company's massive debt load just nine months after the company was acquired in a $27 billion leveraged buyout, sources told The Post.As part of those discussions, one topic being

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-50072352873739624292009-05-14T09:18:00.003-04:002009-05-14T09:28:48.650-04:00

A short story from the Wall Street Journal says that GM will pay suppliers a few days early this month: General Motors Corp. plans to make critical payments to its direct-material suppliers nearly a week before a Treasury-imposed deadline for an out-of-court restructuring.Spokesman Dan Flores said GM told suppliers it will pay them on May 28 instead of June 1. He said the decision was made due to

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-48942094471482841652009-05-14T09:01:00.002-04:002009-05-14T09:05:43.758-04:00

Peter Coy writes in this week's Businessweek that the bankruptcy process has failed: Failure can be a beautiful thing. Maybe not if you work for General Motors (GM), which seems to be stumbling toward bankruptcy. But for the U.S. economy as a whole, the swift and clean disposition of weak companies is an essential part of the formula for getting growth back on track.However, for this cleansing to

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-77086749745969029652009-05-13T16:28:00.005-04:002009-05-14T11:08:17.470-04:00

Take this with whatever sized grain of salt you deem appropriate, but one prediction market has about an 89% a 79% chance of a GM bankruptcy filing in May or June. As I write this, May 2009 is at $33.85 and June 2009 is at $45.69. If my math is were correct that would add up to about 89% a 79% percent chance in the next seven weeks.Update: Fixed the math

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-50863129432307591362009-05-13T15:46:00.003-04:002009-05-13T15:53:58.664-04:00

Reuters is reporting that Judge Peck has appointed a fee committee for the Lehman case: A judge appointed a committee on Wednesday to review fees in the bankruptcy of Lehman Brothers Holdings Inc and postponed a decision on a $55 million request from Weil Gotshal & Manges LLP, one of the largest single fee requests ever.The committee was requested by Harvey Miller of Weil Gotshal, the lead

Andynoreply@blogger.com0tag:blogger.com,1999:blog-861106361871016562.post-73538261703279424362009-05-13T12:28:00.003-04:002009-05-13T12:39:10.320-04:00

In a Wall Street Journal editorial today, George Mason University law professor Todd Zywicki strongly criticizes the Obama Administration's handling of the Chrysler case: The U.S. government also wants to rush through what amounts to a sham sale of all of Chrysler's assets to Fiat. While speedy bankruptcy sales are not unheard of, they are usually reserved for situations involving a wasting or

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-52633177993615448452009-05-13T08:22:00.004-04:002009-05-13T08:27:56.560-04:00

I have not seen a copy of the interim order yet, but there is a story from the AP that Credit Suisse First Boston has had its loan to Yellowstone Club subordinated: A federal bankruptcy judge ruled Tuesday that a $375 million loan Credit Suisse made to a Montana resort for the ultrarich was predatory and should be subordinated to other debts.Judge Ralph Kirscher wrote in a partial and interim

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-86008238852726374492009-05-12T13:23:00.004-04:002009-05-12T13:39:56.996-04:00

Although recent posts might indicate otherwise, I do not have a strong political leaning one way or the other. But in keeping with the theme, here is a pair of reads from the Ayn Rand Center for Individual Rights on the Chrysler bankruptcy.First, a bit of a blog post by Tom Bowden entitled Chrysler's scary backseat driver: Unfortunately, the bankruptcy filing is overshadowed by the Obama

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-87485759428178858022009-05-12T12:04:00.002-04:002009-05-12T12:11:08.604-04:00

Lots of BK-NHL news from the Toronto Star. First, Jerry Reinsdorf and the NHL will have to reveal the terms of his bid: The Coyotes won a court ruling that will force the NHL to tell all it knows about White Sox owner Jerry Reinsdorf's mysterious bid to purchase the Coyotes to a Phoenix bankruptcy court judge.The NHL must produce all documents related to Reinsdorf's bid today, ruled judge

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-67460063870904873032009-05-12T10:53:00.002-04:002009-05-12T11:00:45.223-04:00

Is anyone surprised at Professor Epstein's take on the Chrysler bankruptcy? Didn't think so. From Forbes: In a just world, [the] ignominious fate [of having the sale struck down as a taking] would await the flawed Chrysler reorganization, which violates these well-established norms, given the nonstop political interference of the Obama administration, which put its muscle behind the beleaguered

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-64998382341539997712009-05-12T10:25:00.002-04:002009-05-12T10:30:13.011-04:00

The Financial Times reports that holders of credit default swaps have a particular incentive not to agree to GM's current restructuring proposal: Hedge funds and other investors stand to make billions of dollars on credit insurance contracts if GM de­clares bankruptcy, a prospect that is complicating efforts to persuade creditors to agree to a restructuring plan for the automaker, analysts

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-5084615537895416892009-05-12T09:55:00.001-04:002009-05-12T10:35:32.969-04:00

Hey, I got a comment! And it happens to be from the author of the article I discussed. This is very cool.Yesterday I posted my thoughts on Professor Lynn LoPucki's new study on bankruptcy fees. You can find the post here. If you scroll to the bottom you can see Professor LoPucki's comment.When I was a law student and writing my dissertation on a bankruptcy topic, my professor read my first

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-5353501573814747002009-05-11T16:57:00.003-04:002009-05-11T17:01:36.491-04:00

From the National Law Journal:Lawyers representing directors and officers of IndyMac Bancorp Inc. are attempting to remove a cap on their billing rates, the latest example of how judges are scrutinizing hourly fees in large bankruptcies.IndyMac, one of the nation's largest mortgage lenders, filed for Chapter 7 protection on July 31, 2008. Six law firms representing more than a dozen directors and

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-5895448817463570622009-05-11T10:18:00.002-04:002009-05-12T09:49:17.624-04:00

I have reviewed Lynn LoPucki's new article on fees in bankruptcy cases that I mentioned a couple days ago. You can get a free copy here. He makes some good points but on balance his approach tends to conflate the formal legal issues with the policy goals behind them. Ordinarily I would consider myself pretty cynical when it comes to fees and venue decisions, but even I found myself becoming an

Andynoreply@blogger.com2tag:blogger.com,1999:blog-861106361871016562.post-47315606749402468822009-05-11T09:10:00.003-04:002009-05-11T10:10:49.596-04:00

There is an AP report out suggesting that a GM bankruptcy is all but inevitable. For General Motors Corp., the task at hand is so difficult that experts say a Chapter 11 bankruptcy filing is all but inevitable.To remake itself outside of court, GM must persuade bondholders to swap $27 billion in debt for 10 percent of its risky stock. On top of that, the automaker must work out deals with its

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-27400765872916636702009-05-09T09:57:00.003-04:002009-05-09T10:20:44.759-04:00

A couple more news articles on the Phoenix Coyotes bankruptcy and Jim Balsillie's quixotic attempt to move the NHL team to Hamilton, Ontario. The first, from the National Post, contains some words of wisdom from Canadian business and baking icon Ron Joyce about the business of hockey:In 1990, Joyce was Jim Balsillie. He was the guy with the deep pockets trying to bring a National Hockey League

Andynoreply@blogger.com1tag:blogger.com,1999:blog-861106361871016562.post-82601508375210442232009-05-08T15:26:00.004-04:002009-05-08T18:17:01.742-04:00

Reuters reports this afternoon that the famous dissident creditor group we have been following all week has disbanded: A group of Chrysler LLC's dissident lenders disbanded, representatives said on Friday, removing the last legal hurdle to the embattled automaker's quest to complete a merger with Italy's Fiat SpA with U.S. government backing."After a great deal of soul-searching and quite frankly

Andynoreply@blogger.com2