Bankruptcy Blogs

Germany-based Maple Bank’s insolvency administrator sought chapter 15 bankruptcy protection in New York Monday to shield the bank’s U.S. assets. The Wall Street Journal has the Daily Bankruptcy Review article here.

Jared R. Clark has joined law firm law firm Phillips Nizer as a partner in the New York office. Mr. Clark worked on well-known bankruptcy cases including the city of Detroit, Lehman Brothers, General Motors and Enron. He has worked on insolvency matters both in and out of bankruptcy court. Mr.

For years, creditors unwilling to take the time (or risk) to wait for payments from a bankrupt company have been able to sell their claims to distressed investors. But as the secondary market has grown, so have questions about the practice.

Distressed investors have long jumped at the chance to pay pennies on the dollar to acquire a claim that they are betting will pay out at a much higher rate. They say they provide a service to the creditors, often vendors and suppliers, by giving them a quick and certain payout in an inherently uncertain situation.

Wall Street Journal

Baby boomers are changing the idea that the older you get, the less debt you carry. The average 65-year-old borrower has 47% more mortgage debt now than in 2003. They also have 29% more auto debt. Both figures, adjusted for inflation, were compiled by the Federal Reserve Bank of New York. ...