Bankruptcy Blogs

Children’s Tablet-Maker Fuhu Files for Chapter 11 Bankruptcy

12/07/15

Children’s tablet-maker Fuhu Inc. filed for chapter 11 bankruptcy protection Monday with a tentative deal to be acquired by Mattel Inc. for $9.5 million. Read the Daily Bankruptcy Review story via The Wall Street Journal.

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Let's Put the Inclusive Back in Financial 'Inclusion'

12/07/15

The vaguely defined term needs an overhaul to meet the financial demands of refugees and others long ignored by efforts to expand banking access.

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Morning Scan: Big Banks' Effort to Seize Mortgage Business from GSEs

12/07/15

New York Times

Big banks have been working behind the scenes, and making considerable progress, in taking over the home loan market from Fannie Mae and Freddie Mac, Gretchen Morgenson writes in the Times. The effort has been led by a group of professionals who have walked the revolving door between the private sector and public sector; including Michael Berman, a consultant to real estate lenders and David Stevens, head of the Mortgage Bankers Association. ...

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Post-petition Interest Excluded from Unsecured Indenture Creditor’s Claim

12/07/15

The U.S. Bankruptcy Court for the District of Delaware held in a recent opinion that post-petition interest should be excluded from an unsecured creditor’s claim, as otherwise it would violate the plain meaning of Section 502(b)(2).  In the case of In re Energy Future Holdings Corp., et al., Case No. 14-10979 (CSS) (Bankr. D. Del. Oct.

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Offshore Group Investment Limited files a Prepack in Chapter 11

12/06/15

On December 3, 2015, Offshore Group Investment Limited and 23 affiliates filed for relief under chapter 11 of the Bankruptcy Code.  The cases are jointly administered under Case Number 15-12422 and presided over by Judge Shannon.  The first day hearing was held on December 4, 2015.  The second day hearing is scheduled for January 7, 2016 at 10:00 a.m.

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Puerto Rico's Recovery Act to be Considered by Supremes

12/04/15

In a somewhat surprising move, the Supreme Court has granted cert. to consider if Puerto Rico's Recovery Act is preempted by section 903 of the Code. I have previously argued it is not, but the First Circuit disagreed. We will now see who wins.

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Save the TIA!

12/04/15

So a brazen attempt to undermine the Trust Indenture Act of 1939 has failed, but you can expect the proponents will try again.

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HARA$$ the CFPB: Omnibus Edition

12/04/15

It's appropriations season and efforts to harass the CFPB seem to be going into overdrive. The latest scheme:  hit the CFPB with financial reporting requirements unparalleled for any government agency.  This little nugget of petty harassment is found in section 504 of the House Financial Services Appropriations bill being considered for inclusion in the final budget package. 

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Congress Has Not Acted, So Here's a Simpler GSE Plan

12/04/15

Legislative proposals to reform the housing finance system have failed to garner enough support, but a surprisingly simply reform idea is in plain sight: deeper private mortgage insurance coverage.

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