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April 1, 2011

Old GM exits Chapter 11, carved into four trusts

"The company known as "Old GM" exited Chapter 11 bankruptcy on Thursday and was carved into four trusts, marking the close of one of the most complex Chapter 11 cases in U.S. history."

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April 1, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

Windstar Cruises parent files bankruptcy, plans sale

"Ambassadors International Inc (AMIE.O), the parent of Windstar Cruises, filed for bankruptcy protection on Friday and said it plans to sell itself to Whippoorwill Associates Inc, its largest shareholder.

Windstar operates three internationally flagged luxury yachts with sailings in the Americas including the Caribbean, and Europe including the Baltic region and the Greek Isles, according to the Chapter 11 petition filed with the U.S. bankruptcy court in Delaware."

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April 1, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

Report: Dish, Icahn join bidding for Blockbuster

"Several bidders are set to duke it out for Blockbuster Inc. at a bankruptcy auction in New York on Monday. They reportedly include Dish Network Corp. and billionaire investor Carl Icahn.

The movie-rental chain has received several bids other than the opening bid of $290 million from a group of debtholders made in February. Blockbuster filed for Chapter 11 bankruptcy protection in September."

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April 1, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

American Apparel warns it may file for bankruptcy

"Troubled clothing chain American Apparel Inc., losing money and faced with a cash crunch, says it may have to file for Chapter 11 bankruptcy protection.

The Los Angeles company warned in a filing with the Securities and Exchange Commission Thursday that it "may need to voluntarily seek protection under Chapter 11 of the U.S. Bankruptcy Code" if it can't improve its sales or cash position or find other sources of financing to keep it afloat."

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April 1, 2011 in Current Affairs | Permalink | Comments (1) | TrackBack

Lawsuit Reveals How a Middleman Is Blocking Mortgage Modifications for Homeowners

"Pamela Jeter of Atlanta, Ga., has been trying to get a mortgage modification for more than two years. She seems like an ideal candidate. She has shown she can stay current with a reduction in her monthly mortgage payments. Everybody would seem to win. Even the investors who ultimately own her loan think she should be able to get one. So, why is Jeter facing foreclosure?

A bank that she didn't even know is involved with her loan has thrown up a roadblock to modifications. At least tens of thousands of other homeowners have shared a similar plight. Jeter's case is a window into a broken system where even though the actual investors, when asked, say they want to allow modifications, the bank that acts as their representative has refused to allow them."

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April 1, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

March 31, 2011

Bank Customers Win One (Soon)

"Barring a last-minute assault from the banks, a federal rule to protect vulnerable Americans from overly grabby creditors will take effect on May 1.

The issue involves individuals’ bank accounts that contain Social Security payments for retirement and disability or certain other federal benefits for veterans, the poor, the aged and the disabled. By law, those sums cannot be seized by creditors to cover unpaid debts, a vital protection intended to shield close-to-the-edge recipients from financial calamity and to block creditors from acquiring taxpayer-provided benefits."

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March 31, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

JPMorgan Shouldn’t ‘Escape’ $6.4 Billion Madoff Suit, Trustee Picard Says

"JPMorgan Chase & Co. (JPM) shouldn’t 'escape' a $6.4 billion lawsuit in bankruptcy court by switching the case to district court, the trustee liquidating Bernard Madoff’s collapsed firm said. 'The issue of JPMC’s misconduct belongs before the bankruptcy court as the court most versed in the nuances of the Ponzi scheme and the roles of other, related wrongdoers in that scheme,” Irving Picard, the trustee, said in a filing yesterday in U.S. District Court in Manhattan. “JPMC seeks refuge in this court to escape the scrutiny of the bankruptcy court.' "

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March 30, 2011

Judge Denies Motion To Remove Trustee Overseeing Madoff Money Recovery

"A federal bankruptcy court judge this morning denied a motion by a victim of Bernard Madoff's Ponzi scheme to remove the trustee overseeing the liquidation of Madoff’s brokerage business.

 Madoff victim Helen Chaitman, who is also an attorney, argued that federally appointed trustee Irving Picard struck what she called a "sweetheart deal" with the family of late Madoff investor Norman Levy."

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March 30, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

March 28, 2011

After Dale Saip and Kerry-Lynne Findlay stories, will bankruptcy shaming become commonplace?

"This week, media outlets have been focusing on past financial troubles of Conservative candidates.  Former Delta-Richmond East nominee Dale Saip was forced to step aside after it was revealed that he declared bankruptcy in 1993. This left creditors on the hook for $340,000.

The replacement candidate, lawyer Kerry-Lynne Findlay, also declared bankruptcy. According to a CBC report, she listed $175,000 in assets and debts of nearly $558,000 in 2001. She attributed it to a long legal fight over real estate with the Musqueam band.  In 2008, the Vancouver Sun also highlighted the past bankruptcies of three federal candidates—Conservative Lorne Mayencourt, Liberal Don Olson, and Green Doug Perry.

Those who've never filed for bankruptcy might be quick to judge these politicians. Some will see it as a moral failing, notwithstanding any reasons behind these candidates' financial troubles.  But before we rush to any conclusions, consider this: the man who is often judged the greatest American president in history was also a former bankrupt.

Abraham Lincoln filed for bankruptcy in 1833 after his business partner died. He spent the following 17 years repaying his debts."

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March 28, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

Harry & David Files for Bankruptcy With Agreement to Cut Debt

"Harry & David Holdings Inc., the Oregon-based gift-box retailer that began selling fruit by mail in the 1930s, filed for bankruptcy protection after reaching an agreement with lenders to trim debt that includes almost $200 million in bonds.

The company, owned by investment funds controlled by Wasserstein & Co., listed assets and debt of as much as $500 million each in a Chapter 11 petition filed today in U.S. Bankruptcy Court in Wilmington, Delaware."

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March 28, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack