What will SCOTUS decide about 1129(a)(2)(A)(iii)? Not always a right to credit bid

By | January 15, 2012 | Chapter 11, Supreme Court | Comments Off on What will SCOTUS decide about 1129(a)(2)(A)(iii)? Not always a right to credit bid

In December, SCOTUS agreed to hear a 7th Circuit case, RadLAX Gateway Hotel, LLC v. Amalgamated Bank, on whether a secured creditor can be denied a right to credit bid its note when a debtor sells its collateral, pre-confirmation, pursuant to a plan.  The issue arises when a court is evaluating whether a plan satisfies the “fair and equitable” requirement for cram down on non-consenting impaired classes of secured claims, under an 1129(b).  1129(b)(2)(A) provides a set of three disjunctive descriptions of how a plan can provide secured claims with fair and equitable treatment, (i), (iii), or (iii).

The first prong involves either transfer of collateral or use by the debtor whereby the secured creditor’s lien remains, and the creditor receives a cash stream with present value of at least the collateral value and payments totaling the claim. Read more…

Public Notice re Holidays 2012

By | January 14, 2012 | Court Clerk Information | No comments

THE UNITED STATES BANKRUPTCY COURT WILL BE CLOSED ON THE FOLLOWING 2012 FEDERAL HOLIDAYS:

Read more…

Judicial Practices Survey — January 6, 2012

By | January 14, 2012 | Court Clerk Information, Judges Corner | No comments

A Judicial Practices Survey with detailed information about each of the judges’ specific judicial practices (such as calendaring hearings, tentative rulings, motions practice, format of papers presented to the Court, chapter 11 and 13 procedures, etc.) is now available on the Court’s website and here.

Judges Neal Bason and Sandy Klein on Automatic Stay in Second Case

By | January 12, 2012 | Judges Corner | No comments

Dear Colleagues!

For those that keep track, Judge Bason has just announced that he follows In re: Reswick in that in a 2nd case, failure to file a timely motion to extend the stay will result in there being no automatic stay as to the debtor AND as to the bankruptcy estate.

KEITH HIGGINBOTHAM
2012 cdcbaa President

Judge Sandy Klein has the same view.  JH

Leigh Steinberg Files Chapter 7

By | January 12, 2012 | Current Events | No comments

Sports agent Leigh Steinberg filed Chapter 7 on January 11, 2012 in Santa Ana.

Bankruptcy Petition #: 8:12-bk-10425-TA. Assigned to the Hon. Theodor Albert. His Chapter 7 Trustee is David L. Hahn.

Steinberg has represented NFL stars such as Troy Aikman, Warren Moon, Steve Young and Ben Roethlisberger. He was the inspiration for Tom Cruise’s character in the 1996 movie “Jerry Maguire.”

His assets include minimal miscellaneous home furnishings, clothing, a car, and almost half a million dollars worth of stock in a corporation. An “amendment [is] forthcoming” re that asset.  He does not own any real property.

An “amendment [is] forthcoming” re almost all of the debts: secured debts, taxes, most of the unsecured creditors. As they stand the unsecured debts total approx. $3.1M and the priority debts total approx. $101,000.

Hostess Brands, Inc. filed Chapter 11 AGAIN

By | January 12, 2012 | Current Events | No comments

Twinkies and Wonder Bread maker Hostess Brands, Inc. filed Chapter 11 for the second time in less than three years, after failing to reach an agreement with workers on pension and health benefits.

The case is Hostess Brands Inc., Case No. 12-22052, U.S. Bankruptcy Court, Southern District of New York.

The company had total assets of $981.6 million and liabilities of $1.43 billion as of December 10, 2011.

Financial Lawyers Conf Program on Claims Trading

By | January 11, 2012 | Chapter 11, Programs | No comments

FINANCIAL LAWYERS CONFERENCE

In or Out? Do creditors become insiders for claims trading purposes by negotiating plan treatment with the debtor and other constituencies?

Thursday, February 9, 2012

In September 2011, Bankruptcy Judge Walrath issued an opinion in the Washington Mutual case, finding that colorable claims for “equitable disallowance” had been stated against certain creditors who were negotiating a settlement of plan issues based upon alleged “insider trading” by those creditors during the bankruptcy case. Some of the alleged nonpublic information concerned the prospects for a consensual plan, something that the creditors knew by virtue of their involvement in settlement discussions.

This program analyzes the backdrop to and potential implications of the Washington Mutual opinion, including the general rules applicable to trading debt inside and outside of bankruptcy, questions raised by different elements of the opinion, and ramifications of the opinion for individual creditors, informal groups of creditors, debtors, and their respective counsel. The program will offer the perspectives of both bankruptcy and non-bankruptcy attorneys on the ripples created when bankruptcy and securities laws collide.

Speakers: Whitman L. Holt, Klee, Tuchin, Bogdanoff & Stern LLP Thomas E. Patterson, Klee, Tuchin, Bogdanoff & Stern LLP Gary J. Cohen, Sidley Austin LLP

Read more…

Professor Peter Lively

By | January 10, 2012 | Current Events | No comments

I survived my first day as assistant professor at my alma mater, UCLA law school, yesterday.  I was nervous for a while until I fully realized that I wasn’t going to be called on at random by the professor to answer difficult questions about the voluminous reading material.  It is certainly more fun watching the socratic method than being subjected to the process.  P.L.

2011 Honor Roll of Pro Bono Volunteers

By | January 10, 2012 | Current Events, Judges Corner | No comments

Honor Roll from Chief Judge Peter Carroll.

Hi everyone,  Happy New Year!

 I wanted to thank you for generously donating your time volunteering with Public Counsel’s Debtor Assistance Project.  In recognition of your volunteer work, the United States Bankruptcy Court recognized your contribution on the 2011 Honor Roll of Pro Bono volunteers.  The Honor Roll is posted on the bankruptcy court website at www.cacb.uscourts.gov.

I am also attaching a copy of the 2011 Honor Roll of Pro Bono Volunteers for your convenience.   Thank you!   Also, Public Counsel has launched a new video and I wanted to take this opportunity to share it with you.

As you know, Public Counsel continues to provide desperately needed legal assistance to thousands of pro se debtors every year.  This couldn’t have been possible without your support.  I hope you will share this video with anyone who would like more information about Public Counsel.

 Wishing you all the best in 2012!

Best,

Magdalena Reyes Bordeaux
Senior Staff Attorney
Public Counsel
Consumer Law Project & Debtor Assistance Project

Southern California Bankruptcy Inn of Court

By | January 10, 2012 | Programs | No comments

The Southern California Bankruptcy Inn of Court will be meeting on Tuesday, February 7, 2012 at the Downtown Daily Grill located at 612 South Flower Street, Los Angeles, CA 90017 beginning at 6:00 p.m. Pupillage Team 4 will be presenting.

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