BankruptcyProf Blog

Beacon Power bankrupt; had U.S. backing like Solyndra

"Beacon Power Corp filed for bankruptcy on Sunday, just a year after the energy storage company received a $43 million loan guarantee from a controversial Department of Energy program."

Read more here.

MF Global files for bankruptcy protection

"MF Global, a trader in commodities and derivatives brought down by bad bets on Europe, filed for bankruptcy protection on Monday, leaving behind more than $2 billion in debt to some of Wall Street's biggest players.

The fate of MF Global, run by former New Jersey Gov. Jon Corzine, has been closely watched on Wall Street as a sign of how Europe's sovereign debt crisis could be cause trouble for U.S. financial companies."

Read more here.

In re Baud - SCOTUS is Looking Carefully at the Committment Period

from Aki Koyama,

My Colleagues: It looks like I misinterpreted an email from the staff attorney for the Appellee (the Chapter 13 Trustee) in the In re: Baud matter. The Debtor and Appellant in Baud has filed a Petition for Writ of Certiorari and SCOTUS has requested a response to the Petition from the Appellee which is due in the 2nd half of November. The Writ has not been granted as of now. Sorry for the misinformation and thanks to Prof. M. Jonathan Hayes for the clarification.

New Data from the Central District of California

• Pro per filings for the Jan through Sept, 2011 period were 28.3% of the total.  The national average is 7.9%. 
• The central district clerk's office processes one bankruptcy petition every 3 minutes, 44 seconds. 
• The next highest number of filings after the central district is the middle district of Florida.  The C.D. Cal has 146% more filing than M.D. Fl. 
• The central district expects 141,000 filings this year, up from 109,000 in 2009, and 66,000 in 2008. 

Doc Holliday’s Dentist Chair Up for Sale in Bankrupt Harrisburg

"Harrisburg, Pennsylvania’s capital, plans to auction off more than 8,000 relics ranging from 1900s- era rifles to wooden wagons that were meant to be part of a Wild West museum in the bankrupt city in the Northeast.

Representatives of 10 auction houses examined the artifacts yesterday, Robert Philbin, a spokesman for Mayor Linda Thompson, said. He declined to name them, though he said 25 firms, including Christie’s Inc. and Sotheby’s, were invited to submit proposals."

Read more here.

LACBA Commercial Law & Bankruptcy Section

The Mortgage Morass: MERS, Securitization, Servicers and Robots

Thursday, November 3, 2011

Los Angeles County Bar Association
1055 West 7th Street, 27th Floor
Los Angeles, CA 90017

1.0 hr CLE

Analysis and Practice Tips on Recent Foreclosure Cases:
- Who Does What?
- Who Holds What?
- Who Can Foreclose?
- Who Can Obtain Relief From Stay?
- What is MERS?
- How Do You Prove or Disprove These Issues?

Speakers:
Hon. Scott C. Clarkson, U.S. Bankruptcy Court
Richard W. Esterkin, Morgan Lewis & Bockius LLP
David B. Lally, Law Offices of David B. Lally
Jason D. Wallach, Gladstone Michel Weisberg Willner & Sloane ALC

Registration:
11:30 AM

Meal/Reception:
11:30 PM - 12:30 PM

Program:
12:00 PM - 1:00 PM

Pricing & Event Code:
CLE+ Members (meal not included)
FREE
CLE+ Plus Members with meal
$15.00
Law Students with meal
$25.00
Commercial Law and Bankruptcy Section Members with meal
$55.00
LABF, FLC and CDCBAA Members with Meal
$55.00
LACBA Members with meal
$65.00
All Others with meal
$75.00

Registration Code: 011506

Call our Member Services Department, 9:00 a.m. - 4:00 p.m., at (213) 896-6560.

THE UNITED STATES TRUSTEE BROWN BAG SERIES

Mandatory Requirements for Debtors in Chapter 11:
New procedures for electronic submission of 7-Day Package and Monthly Operating Reports
to the Woodland Hills Office of the United States Trustee

Presented by the
Woodland Hills Field Office, Region 16

Date: Wednesday, December 7, 2011
Time: 12:30 p.m. to 1:30 p.m.
Where: Woodland Hills Meeting Room
21051 Warner Center Lane #105
Woodland Hills, CA 91367

Subject: New, mandatory procedures effective January 1, 2012 for electronic submission of 7-day package documents and Monthly Operating Reports to the Woodland Hills Office of the U.S. Trustee

This program has been approved for 1 hour of MCLE credit.

This program is designed for attorneys with a valid State Bar number.

This U.S. Trustee program is co-sponsored by the San Fernando Valley Bar Association. This activity will count for one hour of MCLE credit with the State Bar of California. The San Fernando Valley Bar Association certifies that this activity conforms to the standard for approved education activities prescribed by the rules and regulations of the State Bar of California.

A Discussion of CURRENT BANKRUPTCY ISSUES in Chapter 7 and Chapter 11 Cases

Proudly Presented by the Armenian Bar Association, CLE Committee

Thursday, October 27, 2011
7:00 p.m. – 8:30 p.m.

Loyola Law School
The Fritz B. Burns Academic Center
Student Lounge
919 Albany Street
Los Angeles, CA 90015

Panelists:
Mark Horoupian -- SulmeyerKupetz, APC
Aram Ordubegian -- Arent Fox, LLP
Varand Gourjian -- Gourjian Law Group
Moderator: Tamar Kouyoumjian -- Assistant United States Attorney

Registration Fees (includes appetizers and drinks):
Members of Armenian Bar Association: $35
Government Employees: $35
Others: $45
Students: Free

Crystal Cathedral to be used as college campus in bankruptcy deal

"The Crystal Cathedral has endorsed selling its sprawling campus to a university as part of a bankruptcy reorganization plan, church officials said Wednesday.

The church's board of directors has backed Chapman University's offer to buy the property if the church is unable to raise enough money to avoid a sale, the church said in a written statement.

Under the plan, the church would be able to continue to use a number of buildings on the Garden Grove campus and possibly repurchase them at a later date."

Read more here.

"Dodgers owner Frank McCourt looted nearly $190 million from the Los Angeles team, using the money for non-baseball use in violation of Major League Baseball rules, according to Delaware bankruptcy court documents filed on Monday....

It's the first time the league has specified an amount, the Los Angeles Times said....

The league claimed McCourt funneled $73 million in parking revenue through Blue Land Co., a non-team related entity, and he used $61 million in team revenue to pay off personal debts. The court documents also said McCourt took $55 million from team revenue for personal use...

A flurry of bankruptcy documents filed Monday also said San Francisco Giants fan Bryan Stow, who was severely beaten in the Dodger Stadium parking lot on opening day, could be a central figure in next week's critical bankruptcy court hearing in Dover, Del. Stow lawyer Thomas Girardi has said his client's medical bills could exceed $50 million.

Stow's representatives sit on the official committee of creditors.

An earlier court document said there were 197 sworn police officers were on duty the day Stow was attacked, and it noted McCourt was the Dodgers owner to hire uniformed Los Angeles police officers. 'McCourt, however, omits the fact that he removed uniformed officers before the 2011 season, including the opening game when Stow was so seriously injured,' the league responded in its filing on Monday."

Read more here.

Vucurevich In U.S. Bankruptcy Court

"The former owner of the Sioux Falls Storm and the now closed Ground Round restaurant appeared in Federal Bankruptcy Court this afternoon. Creditors have filed a petition for involuntary Chapter 7 bankruptcy against Kent Vucurevich."

Read more here.

Madoff trustee, firm awarded another $45.3 mln

"Irving Picard, the trustee seeking money for victims of Bernard Madoff's fraud, and his law firm were awarded another $45.3 million of fees by the judge overseeing the liquidation of the imprisoned Ponzi schemer's investment advisory firm.

In an order made public on Friday, U.S. Bankruptcy Judge Burton Lifland in Manhattan awarded Baker & Hostetler $44.7 million and Picard $599,301 for their work in the four months ended May 31, a court filing shows."

* Madoff trustee, law firm paid $202.6 mln so far

* More litigation foreseen

* Trustee has recovered $8.7 bln, much tied up in lawsuits

Read more here.

Southern Montana Electric G&T Cooperative Files Bankruptcy

"Southern Montana Electric Generation & Transmission Cooperative Inc., a provider of electrical power to utility cooperatives in Montana, filed for bankruptcy protection.

The company listed assets and debt in the range of $100 million to $500 million each in Chapter 11 papers filed Oct. 21 in U.S. Bankruptcy Court in Butte, Montana."

Read more here.

E-Bulletin regarding a newly enacted California statute

October 20, 2011

Dear Insolvency Law Committee Constituency List members, please find
attached an E-Bulletin regarding a newly enacted California statute:

Governor Signs SB-4 (Calderon) Establishing New Requirements for Notices of
Trustee Sales

Most lenders with real property security in California foreclose by means of
nonjudicial foreclosure trustee's sales, rather than through
court-supervised judicial foreclosures. The first step in the nonjudicial
foreclosure process is to record and give a Notice of Default. The next
step, after the passage of at least three months, is to record and give a
Notice of Sale, giving at least 20 days' notice of the specified date, time
and place of sale.

Recent amendments to Civil Code section 2924f (2011, Chapter 229, S.B. 4,
approved by the Governor and filed with the Secretary of State on September
6, 2011), add three new requirements relating to the issuance of a Notice of
Sale. These requirements will become effective on April 1, 2012, and apply
only when the deed of trust or mortgage containing a power of sale is
secured by real property containing one to four single-family residences.

First, the Notice of Sale must contain a "Notice to Potential Bidders"
explaining some of the risks involved in bidding at the sale, including
that: (1) the successful bidder does not automatically receive free and
clear title to the property, (2) the lien being foreclosed may be a junior
lien, resulting in the successful bidder's title being subject to surviving
senior liens and the responsibility for paying off the senior liens before
obtaining clear title, (3) the bidder is encouraged to investigate the
condition of title to the property before bidding, and (4) the foreclosing
lender may hold more than one mortgage or deed of trust on the property.
The stated need for this requirement was to inform an increasing number of
unsophisticated bidders of the risks of bidding at a foreclosure sale.

Second, the Notice of Sale must contain a "Notice to Property Owners" to
better inform property owners about the foreclosure sale process and the
time at which ownership of the home is transferred to another party. This
notice explains that: (1) the sale date may be postponed one or more times
pursuant to Civil Code section 2924g, (2) the owner and the public can learn
of any rescheduling of the date and time for the sale by calling a telephone
number or visiting an internet website, and (3) the best way to verify
postponement information is to attend the scheduled sale.

Third, the statute requires a beneficiary, trustee, mortgagee or authorized
agent to make a good faith effort to provide up-to-date information, free of
charge, regarding sale dates and postponements, either by an internet
website, a telephone recording accessible 24 hours a day, seven days a week,
or through any other means that allows 24 hours a day, seven days a week, no
cost access to updated information.

These new requirements do not modify or create any substantive rights or
obligations for any person specified in either of the required notices, and
failure to comply with the new requirements will not invalidate any sale
that would otherwise be valid under Civil Code section 2924f. The
information provided in the required notices does not constitute the public
declaration of sale postponement required by subdivision (d) of Civil Code
section 2924g.

While the new amendments provide some helpful bidder caveats, they do not
obviate the need for a fully informed bidder to conduct additional pre-sale
due diligence and attend the sale with a clear bidding strategy in mind.

SB-4 may be viewed by clicking HERE
<http://info.sen.ca.gov/pub/11-12/bill/sen/sb_0001-0050/sb_4_bill_20110906_c
haptered.pdf>

These materials were prepared by John R. Engel, a shareholder at Sullivan,
Hill, Lewin, Rez & Engel, LLP, in San Diego, California.

Thank you for your continued support of the Committee.

Best regards,

Insolvency Law Committee

US bankruptcy claims trading at year high in Sept

"The face value of U.S. bankruptcy claims traded in September was the highest since July 2010, according to a report released on Wednesday.

The value of claims traded in September doubled from August to $4.52 billion, according to SecondMarket, which runs a claims trading platform. The number of claims traded in September rose to 1,264 from 891 in August."

Read more here.

2011 Calvin Ashland Awards Dinner

November 3, 2011
Downtown Marriott
Reception and No-Host Bar at 6:00pm
Dinner and Awards Presentation at 7:00pm

Jazz Trio Featuring Bruce Campbell

Marriott Grand Ballroom
333 S. Figueroa Street
Los Angeles, CA 90071

-Your cdcbaa annual membership fee includes one free ticket to this dinner
-$95 for non-members and guests with RSVP and
payment received by 10/21/11
-$125 for non-members and guests with RSVP and
payment received after 10/21/11
-$150 at the door
-$75 Judicial Officers/Government Employees

To RSVP online, please visit our website at www.bklawyers.org. 
For your convenience you may select your entrée, register your guest,
select your guest’s entrée and remit payment online all at the same time!

For additional information, please contact cdcbaa Administrator Linda Righi at
cdcbaa@aol.com

Delaware Bankruptcy Capital Status May End With Proposed Law

"A bipartisan bill sponsored by leaders of the House Judiciary Committee may strip Delaware of its status as the premier venue for U.S. bankruptcy cases, costing the state’s economy an estimated $100 million a year.

Lamar Smith, the Texas Republican who chairs the Judiciary panel, introduced the bill with Michigan’s John Conyers, its ranking Democrat. The aim is to prevent court-shopping and make companies reorganize at home 'to ensure maximum input from all affected stakeholders,' Smith said in a statement. Delaware’s Congressional delegation disagreed, citing the Wilmington-based court’s expertise.

'When someone has a specific medical problem, they go to a specialist,' Representative John Carney, a Democrat, said by e- mail. 'Delaware’s courts are our nation’s bankruptcy specialists.' The state’s two U.S. senators, Democrats Thomas Carper and Chris Coons, also oppose the bill.

Under the measure, a corporation may file for Chapter 11 reorganization only in the federal district where its principal place of business or assets are located.

The Chapter 11 Bankruptcy Venue Reform Act of 2011 would thus rule out most of the 90 public companies that since 2006 have sought protection from creditors in U.S. Bankruptcy Court in Wilmington, Delaware, where they are incorporated."

Read more here.

National Conference of Bankruptcy Judges

I just got back from NCBJ - Tampa, it was so much fun! I got to hear Supreme Court
Justice Elena Kagan speak on Saturday -- one of the most amazing experiences ever.
She has a great personality and is actually very funny.   

Here are the NCBJ locations for the next couple of years:

San Diego 10/24-27/2012
Atlanta 10/30-11/2/2013
Chicago 10/8-11/2014
Miami 9/27-30/2015
San Francisco 10/26-29/2016
Las Vegas 10/8-11/2017

-Roksana D. Moradi, Esq.

 

Pennsylvania's Capital City Files for Bankruptcy

"Seeking to stave off a state takeover of its beleaguered budget, the city of Harrisburg, Pa., filed for a rare Chapter 9 municipal bankruptcy on Wednesday.

Harrisburg, the Pennsylvania capital that previously defaulted on its debt, cited a 'continued erosion of its finances,' in a resolution that was passed late Tuesday approving the bankruptcy."

Read more here.

Palmeiro asks for time to sell Grapevine property in bankruptcy

"Former Texas Rangers star Rafael Palmeiro has asked creditors in his real estate bankruptcy case for five years to sell nearly 200 acres of land in Grapevine near Grapevine Mills mall."

Read more here.