Bankruptcy Blogs

The Daily Docket: Lehman Estimates $88.8B Recovery

08/04/14

Lehman Brothers Holdings Inc. collapsed nearly six years ago, but the investment bank is still raking in the cash. The team unwinding Lehman now estimates it will bring in $88.8 billion. The Wall Street Journal has the Daily Bankruptcy Review article here.

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Preference Actions Filed in MCG Limited Partnership Bankruptcy

08/04/14

On August 1, 2014, the Chapter 7 Trustee of MCG Limited Partnership, et al., filed approximately 38 complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, and to disallow claims of the defendants pursuant to Section 502(d).

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Morning Scan: HSBC Says Workers Play It Too Safe; CFPB Targets Debt Collectors

08/04/14

Receiving Wide Coverage ...

HSBC Earnings Fall: HSBC's first-half profit dipped 5% from the same period a year ago because of sluggish performance in its investment banking, wealth management and retail businesses. Its net profit was $9.46 billion, compared to $10 billion. HSBC chairman Douglas Finch cited employees' fear of regulatory punishment as a mounting concern. "There is Â... an observable and growing danger of disproportionate risk aversion creeping into decision-making in our businesses as individuals,...

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Puerto Rico To Get Chapter 9?

08/01/14

Long overdue, in my opinion, HR 5305 has been introducted by Resident Commissioner Pedro Pierluisi.  The one-sentence law would allow the territory of Puerto Rico to join the definition of "State" and hence provide access to chapter 9 for its municipal and other entities.  (And no, the territory itself can't file chapter 9, so don't get your hopes up for that solution to its finances.)

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Twisted Logic Contagion, WaPo Edition

08/01/14

From today's Washington Post editorial:

And the battle between Argentina and the hedgies has certainly clarified U.S. law, to wit: If you borrow money, sooner or later, you have to pay it back.

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Where Do We Go Now?

08/01/14

Axl Rose may have said it best, but "where do we go now" was the theme of today's Argentina hearing. There wasn't really any official business to conduct. Unless you count all those pending motions about whether Bank of New York Mellon should keep or return the money, the Euro bondholders should get paid, etc.

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The Broke and the Beautiful: Ne-Yo Edition

08/01/14

This week on The Broke and the Beautiful, Ne-Yo’s accusing his ex-manager, who invested his money in a company that went bankrupt, of conning him. Also, investor and reality-TV host Marcus Lemonis owns a bakery that supplied cupcakes to Crumbs.

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A Subsidy of Any Size Is Still Too Big

08/01/14

A new government report finds that the size of big bank subsidies falls in stable periods and increases in times of stress. That spells danger when the next crisis comes around, writes Independent Community Bankers of America chief Camden Fine.

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Retailer Dots Bounces Back After Shutting Down in Bankruptcy

08/01/14

Bankruptcy seemed to signal the end for trendy women’s clothing retailer Dots, which emptied its 359 stores with going-out-of-business sales this spring.

But a Florida firm in the retail industry bought the Dots brand and is slowly resurrecting it, saying it can avoid the problems that the juniors’ and plus-sized clothes retailer faced. The eighth Dots store opens Friday in South Philadelphia.

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Forward Motions: Revel Aims to Secure a Buyer to Prevent Shutdown

08/01/14
Spencer Platt/Getty Images

In the coming week in bankruptcy court, the biggest ticket will be watching to see if Revel Casino Hotel in Atlantic City, N.J., can secure a buyer to keep the resort fr

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