bankruptcy law

The government’s bankruptcy watchdog says A123 Systems Inc.’s attempt to pay millions of dollars in “incentive” bonuses to a handful of the battery maker’s insiders appears to be a disguised bid to award the employees with illegal “retention” bonuses. Read the Daily Bankruptcy Review article here.

It’s been well over a year since the U.S. Supreme Court handed down a decision in Stern vs. Marshall that called into question the authority of bankruptcy judges to decide certain issues. Although some of the storm has calmed since then, according to a group of bankruptcy judges speaking on a panel at an American Bankruptcy Institute conference in Washington Friday, it’s clear that the wound is still fresh.

“I was offended by the opinion,” said Judge Mary Walrath of the U.S. Bankruptcy Court in Wilmington, Del., referring to the 5-4 Supreme Court decision.

Academics say Chapter 14, which would address failing financial institutions, could co-exist with Dodd-Frank. Read the Daily Bankruptcy Review article here.

Losses bankrupt solar power equipment maker Solyndra LLC racked up during its brief existence could translate into more than $300 million worth of tax breaks for private equity backers in the future, new court papers say. Read the Daily Bankruptcy Review article here.

Due to the decline in home values over the last few years, many people now find themselves with mortgage balances on their homes that exceed the value of their home. Many homeowners are underwater on their homes because of a second mortgage. Bankruptcy can provide relief to those people by stripping second mortgages provided certain [...]