July 18, 2008
National Law Journal Comments on Kagenveama
As long as they spell your name right is what I always say. The NLJ Article on Kagenveama can be accessed here. There is a great quote from the Chapter 13 guru, Judge Keith Lundin:
"[Kagenveama] is a huge message to Congress that they've got a mess on their hands and they can't leave it to the courts to fix it," said Judge Keith Lundin, a bankruptcy judge for Tennessee's Middle District and author of Chapter 13 Bankruptcy (3d ed). "Bankruptcy trustees around the country warned Congress in 2005 this would be a problem, but they ignored it," Lundin said.
Countrywide to Pay Chapter 13 Trustee $325,000 Settlement
According to the Los Angeles Daily News, Countrywide has agreed to pay Western Pennsylvania chapter 13 trustee Rhonda Winnecour $325,000 as a settlement for an action she filed against Countrywide seeking sanctions. Countrywide was charging borrowers improper fees and was failing to provide documents to the trustee when requested according to the report. The action requested loan histories in 293 cases which Countrywide apparently could not provide. The settlement still must be approved.
July 17, 2008
Landsource DIP Financing of $1 Billion is Denied
According to troubledcompanyreporter.com, the Bankruptcy Court in Delaware, Judge Kevin Carey, denied a motion to approve DIP Financing for Landsource based in part on the objection of the unsecured creditors committee, represented by Laura Jones of the Pachulski, Stang firm. In the course of an eight hour hearing, Jones argued that the proposal was "simply an attempted asset/leverage grab" by the lenders. "The Debtors' contention that rolling $1 billion in prepetition debt into an administrative claim is necessary as 'adequate protection' for the First Lien Lenders under these
circumstances is absurd on its face." The Troubled Company news report can be found here.
UST Director Clifford J. White III Report to the National Association of Chapter 13 Trustees
Mr. White's remarks can be found here. One surprising comment is that the UST audits, while they were conducting them full blast in fiscal year 2007, found "at least one material misstatement" in 30% of the cases. I assume that the bulk of those are in pro per filings. That tends to prove, to me, that the goal of Congress (i.e., the Senator from MBNA) was to make bankruptcy filings too complicated to do without an attorney and much more expensive to do with an attorney. That has played a large part in the reduced filings the past few years since October 17, 2005. I'm not sure I could fill out the means test form myself, the famous B22, without the computer program I paid $1,300 for.
July 13, 2008
Supreme Court Justice Anthony Kennedy to Speak at the Ninth Circuit Judicial Conference, Sun Valley, July 28 to 31
The Ninth Circuit Judicial Conference is scheduled to take place on July 28-31 at the Sun Valley Inn and Lodge. Supreme Court Justice Anthony Kennedy will be one of the speakers as well as Paul Clement, until recently, the Solicitor General. The purpose of the meeting is "for the purpose of considering the business of the courts and advising means of improving the administration of justice." The schedule is here.
Circuit Court of Appeals Cases from Last Week
5th Circuit Court of Appeals, July 08, 2008
In re Hilal, --- F.3d ---, 2008 WL 2655796 (5th Cir. 2008)(appeal not moot even though chapter 11 plan substantially consummated)
5th Circuit Court of Appeals, July 10, 2008
In Re Enron Corp. Sec., Derivative & ERISA Litig., --- F.3d ---, 2008 WL 2689248 (5th Cir. 2008)(claims against Enron 3rd parties dismissed - note: the caption in this case is 7 pages)
10th Circuit Court of Appeals, July 07, 2008
In re Jones, --- F.3d ---, 2008 WL 2640116 (10th Cir. 2008)(confirmation of chapter 13 plan reversed based on objections of "910" secured creditor; postpetition interest on claim required)
11th Circuit Court of Appeals, July 07, 2008
In re Walker, --- F.3d ---, 2008 WL 2637649 (11th Cir. 2008)(award of sanctions under 9011 and inherent authority of the court affirmed)
Thanks again to Findlaw.com.