Bankruptcy Blogs

The Daily Docket: Trump Taj Mahal Workers Protest Outside Icahn’s Office

01/30/15

A group of Atlantic City, N.J., casino workers rallied outside billionaire Carl Icahn ’s Manhattan office Thursday to protest benefit cuts made as part of a protracted battle to keep the Trump Taj Mahal from closing. The Wall Street Journal has the Daily Bankruptcy Review article here.

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Affordable Housing Can't Be Held Hostage to GSE Stalemate

01/30/15

Two Republican legislators have suggested that affordable housing funding should be put on hold until Congress finally decides what to do about Fannie and Freddie. But why give Congress another six years to fiddle around with housing finance while the poor and homeless face a declining level of government housing assistance?

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Powerwave Preference Actions Filed

01/30/15

From January 23-27, 2015, Charles A. Stanziale, Jr., as the Chapter 7 Trustee (the “Trustee”) of Powerwave Technologies, Inc. (“Powerwave” or the “Debtor”), filed approximately 102 preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code.

Background

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After 450 Years, Maker of Squid-Guts Delicacy Seeks Bankruptcy Protection

01/30/15
Shio-kara, or salted squid guts, is shown in this company photo served over rice.
Minoya Kichibee

A steamed fish-paste maker founded during the feudal e

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Morning Scan: Ally Licks Wounds from GM Snub; Apple Pay's Ripple Effect

01/30/15

Receiving Wide Coverage ...

Deutsche Downer: Deutsche Bank's quarterly results beat analysts' expectations, but the bar was pretty low to begin with given that analysts had forecast a loss. "A single quarter aside, the performance of the stock and of the company has simply been poor," writes the Financial Times' Lex team. The column recommends Deutsche consider spinning off "some or all" of its retail banking units and consider boosting returns by growing its asset management...

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Random Thoughts on Reform

01/30/15

I just finished discussing the “random walk” theory in my Corporate Finance class, so I thought I would close out my stint on Credit Slips with some “random thoughts” on reform.

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Bankruptcy Valuations: A Pair of Modest Proposals

01/29/15

I want to take up Michelle Harner's call for "innovation and new approaches to valuation". Valuation may well be the most important issue in bankruptcy, and it is also the issue that is least subject to meaningful judicial review. Imagine a Court of Appeals trying to parse through discounted cash flow models or what are proper comparables.

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Repeat Default Rates Rise Since Great Recession, Says Moody’s

01/29/15

Kicking the can down the road doesn’t seem to work for many distressed companies. The percentage of repeat defaulters since the Great Recession is running at more than double the historical average. That suggests that lax credit markets allowed troubled companies to paper over their problems without fixing them, according to a report Thursday by Moody’s Investors Service.

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To Hedge or Not to Hedge

01/29/15

Much is being made of American Airlines' "bold" decision to avoid hedging its fuel costs.

I fully believe that corporations engage in way too much hedging, mostly to the benefit of big financial institutions. But let's be clear, a just out of bankruptcy counterparty is not going to be doing a lot of swaps deals anyway.

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Coming and Going Concerns

01/29/15

Emanuel Grillo has joined the bankruptcy and workouts group at Baker Botts. Mr. Grillo, who will be a partner at the firm, has represented creditors, debtors and trustees in restructurings. He has worked on such bankruptcy cases as Lehman Brothers Holdings Inc., Delphi Corp. and Silicon Graphics Inc. Most recently, Mr.

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