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Daily Business Review

How Attorneys Saved a Miami Gardens HOA — Before Getting It $11 Million

Bankruptcy trustee Barry Mukamal "righted the ship" for a troubled homeowners' association before getting it an $11 million settlement.
3 minute read

The Recorder

In the Matter of Spanish Peaks Holdings II, LLC

9th Cir.; 15-35572 The court of appeals affirmed a judgment. The court held that the bankruptcy court properly authorized the sale of the debtor’s…
3 minute read

The Legal Intelligencer

Independent Director Tacitly OKs Bankruptcy by Silent Ratification

Over the years, the real estate ­industry relied heavily on securitization vehicles to finance commercial real estate projects. The loans are ­packaged and then sold in pools to investors. Various mechanisms have been developed to ­facilitate collection of the loans without the uncertainty of a borrower bankruptcy filing that could delay and increase the costs of collection. Lenders in these secured transactions often use special purpose entities, or SPEs, to attempt to limit the risk of a borrower bankruptcy filing. While these structures can vary, the concept is to create a separate corporate entity whose only ­purpose and asset is the one real estate project, and the only significant obligation is the mortgage loan. The SPE is isolated from the financial affairs of the corporate parent or affiliates. The lender requires the borrower to appoint an independent director to the board from a mutually acceptable source, and unanimous board approval for certain key decisions, such as the decision to file for bankruptcy. Consequently, a lender is able to reduce the risk of delay after default and high costs of collection, and the ­borrower benefits from lower interest rates and fees from the lower cost loan.
16 minute read

Daily Business Review

Bridal Chain Alfred Angelo's Abrupt Bankruptcy Raises Eyebrows, Blindsides Brides

The national retailer shut its doors at 61 stores without notice hours before the liquidation filing.
12 minute read

The Legal Intelligencer

In re Ross, PICS Case No. 17-1054 (3rd Cir. June 8, 2017) Vanaskie, J. (16 pages).

Bankruptcy court had the authority to issue a filing injunction against a debtor who requested voluntary dismissal under §1307(b) because nothing in the bankruptcy code said otherwise but the injunction the court issued was an abuse of discretion since it failed to explain its reasoning for an injunction that was far broader than the one sought by credit union bringing the action. Order vacated.
4 minute read

Daily Business Review

Swedish Security Co. Boss Declared 'Bankrupt' After Identity Stolen

The man running Sweden's biggest security firm was declared bankrupt this week after his identity was hacked.
5 minute read

The Legal Intelligencer

Ballard Spahr Closes San Diego Office

Ballard Spahr has closed its office in San Diego, the firm confirmed Tuesday, after losing two partners to Dinsmore & Shohl, and transferring other lawyers to its Los Angeles office.
2 minute read

The Recorder

In re Partida

9th Cir.; 15-60045 The court of appeals affirmed a decision of the Bankruptcy Appellate Panel. The court held that the Mandatory Victims Restitution…
3 minute read

The Legal Intelligencer

One Contract, Indivisible, With Defenses and 'Kiwi' for All

Under Section 365(a) of the Bankruptcy Code, a debtor in bankruptcy may assume executory contracts or unexpired leases to which the debtor was a party before its bankruptcy filing. Before it is permitted to do so, however, the debtor must cure any and all defaults existing under the agreement (see 11 U.S.C. 365(b)(1)), thereby making the nondebtor counter-party "whole" upon assumption.
15 minute read

New York Law Journal

Liberty Towers Realty, LLC v. Richmond Liberty, LLC

Bankruptcy Court Did Not Abuse Discretion In Approving Settlement in Foreclosure Case
3 minute read

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