 | | Featured Premium Content | | | | | ABI Journal: Betting on a Fresh Start? Gambling Debt Dischargeability in an Era of Online Sports Betting
Section 523 of the Bankruptcy Code includes an extensive list of debts that are specifically nondischargeable. Although the Bankruptcy Act of 1867 provided that courts could refuse to discharge gambling debts, later versions included no such direction. While gambling debts — or more generally, any “illegal debts” — are not directly legislated as being exempt from the bankruptcy discharge, this does not prevent them from coming under other exceptions to discharge found in § 523, according to a recent ABI Journal article. READ MORE | | | | | SPONSORED CONTENTPrivate Credit and BSLs: Friends or Foes?With private credit and broadly syndicated loans (BSLs) competing for dominance, the lending landscape is in flux. But can these markets ultimately work hand in hand? SRS Acquiom, in partnership with Debtwire, surveyed 200 senior executives from alternative asset management firms across Europe and the U.S. to uncover the true dynamics of these two critical markets. Download the Report | | |  | | Editor's Picks | | | | | Fast-Fashion Retailer Forever 21 Files for Bankruptcy Again
Fast-fashion retailer Forever 21's U.S. operating company on Sunday filed for chapter 11 protection for the second time in six years, hamstrung by dwindling mall traffic and mounting competition from online retailers, Reuters reported. The move means liquidation for the company, named F21 OpCo, which was unable to find a buyer for its roughly 350 U.S. stores. Forever 21's trademark and intellectual property — still held by an entity called Authentic Brands Group — may live on in a different form. READ MORE | | Solo Brands Warns It Could File for Bankruptcy
Solo Brands on Wednesday said there is “substantial doubt about our ability to continue as a going concern,” citing liquidity challenges and existing debt, according to the company’s 10-K, Retail Dive reported. The company, which said that it is exploring strategies to refinance its debt, said it risks defaulting on its obligations under its credit agreement. Such an event could cause Solo Brands to liquidate or file for chapter 11 bankruptcy protection, the company said. READ MORE | | Matrix Saga Maker Files for Bankruptcy Amid Warner Lawsuit
The film production house behind The Matrix and Ocean’s sagas filed for bankruptcy in the U.S. amid a long-drawn legal battle with Warner Bros Discovery Inc., Bloomberg News reported. Village Roadshow Entertainment Group sought bankruptcy protection in Delaware on Monday with $223.8 million in asset-backed secured notes and $163.1 million of senior secured debt, according to court documents. The company, based in both the U.S. and Australia, had struggled to bounce back from the pandemic slump and the 2023 Hollywood writers’ strike, which delayed film productions. Its liquidity problems, however, stemmed largely from an ongoing arbitration with long-standing partner Warner. READ MORE
MORE NEWS BELOW | | |  | | Upcoming Events | | | | | ABI Distressed Real Estate SymposiumPendry Newport Beach
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April 24-26 | Washington, D.C. | | | | |  | | Daily Roundup | | | | | Retail Sales Increased 0.2% in February
Consumers spent at a slower than expected pace in February, though underlying readings indicated that sales still grew at a solid pace despite worries over an economic slowdown and rising inflation, CNBC.com reported. Retail sales increased 0.2% on the month, better than the downwardly revised decline of 1.2% the prior month but below the Dow Jones estimate for a 0.6% increase, according to the advanced reading Monday from the Commerce Department. Excluding autos, the increase was 0.3%, in line with expectations. READ MORE | | Wisconsin Man Convicted of Bankruptcy Fraud & Contempt of Court, Had Several Million Dollars in Cashier’s Checks
A Wisconsin man who is also from Key West, Florida was convicted on Thursday for two counts of bankruptcy fraud and another count of criminal contempt of court, WFRV.com reported. Bernard Seidling had a four-day trial in a Madison federal court, as the jury reached its verdict after roughly five hours of deliberating, according to a release from Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin. READ MORE | | Left for Dead, the CFPB Inches Back to Life
In the Trump administration’s broad dismantling of the federal government, the Consumer Financial Protection Bureau was one of the first agencies to fall, its offices shuttered and all 1,700 workers sent home, the New York Times reported. “CFPB RIP,” Elon Musk wrote on social media on Feb. 7. Last week however, the agency’s consumer response team was called back to work to tackle a backlog of 16,000 complaints, including dozens from homeowners facing imminent foreclosures. READ MORE | | Supreme Court Allows FINRA Proceedings Against Alpine Securities
The U.S. Supreme Court declined on Friday to halt a Financial Industry Regulatory Authority proceeding to expel one of its members, broker-dealer Alpine Securities, in a case challenging the constitutionality of the Wall Street's self-regulator's enforcement power, Reuters reported. Chief Justice John Roberts denied Alpine's request to stop the FINRA proceeding, while the Supreme Court considers whether to hear the broker-dealer's appeal of a lower court ruling that allowed the non-governmental self-regulatory organization's enforcement action to move forward. FINRA has weighed the expulsion of Salt Lake City-based Alpine, accusing it of stealing more than $54.5 million from customers by charging excessive fees and misusing their investments. READ MORE | | Trump Targets Another Law Firm Days After Judge Questions Legality of First Order
President Donald Trump expanded his attack on private law firms Friday, issuing an executive order that targets law firm Paul Weiss' contracts and its employees' security clearances, USA Today reported. The move came two days after a Washington, D.C. federal judge issued a temporary restraining order halting several restrictions in a similar order against another firm, Perkins Coie. READ MORE | | A Secret Mortgage Blacklist Is Leaving Homeowners Stuck With Unsellable Condos
Condominium owners across the country are facing a paralyzing problem: They can’t sell their properties because of a fast-growing and mostly secret mortgage blacklist, the Wall Street Journal reported. The blacklist is maintained by Fannie Mae and includes condo associations that the mortgage finance giant thinks don’t have adequate property insurance or need to make critical building repairs. Being on the list can make it harder for potential buyers to get a mortgage. (Subscription required.) READ MORE | | | | |
