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With the stock market up by 18.9 percent through the end of November 2009 and “signs” of recovery on the horizon, financial institutions throughout the world continue their quarterly, if not monthly, chore of estimating loan loss reserves during the most challenging times in recent economic history. Estimating these reserves is analogous to determining the exact arrival time of a cross-country flight dealing with headwinds and thunderstorms.

Some potential buyers of distressed companies may be sitting on the sidelines, waiting for the economic cycle to shift to growth mode so they can return to acquisitions, but some of the most recognized names and most prized assets in the nation have landed in bankruptcy during 2009 due to liquidity constraints, too much leverage, operational issues, etc. While buyers are unable to obtain the leverage of previous years, the discounted valuations of companies in distress or near or in bankruptcy can set buyers up for profit-taking once the economy strengthens.

As the Great Recession wreaks havoc on the once recession-proof gaming industry, many gaming companies are struggling to survive. These companies are highly regulated, capital-intensive businesses with high fixed-cost structures. Personal income and consumer spending drive gaming revenues. For more than one year, both have been declining. Net revenues at gaming companies during the last year declined because of weak foot traffic and patrons reallocating their entertainment dollars.

There are thousands of Chrysler and GM automobile dealerships around the country that are currently in the process of restructuring or winding down their businesses.  Additionally, we have been involved in and noticed a significant number of other foreign manufacturer automobile dealer restructurings.

Professionals recognize that receiverships can provide a cost-effective and efficient way to liquidate failed businesses, and that receiverships can provide some bankruptcy benefits without the high cost or lengthy proceedings associated with bankruptcy cases. Receivership professional fees tend to be less than those incurred in a restructuring or liquidation under the Bankruptcy Code. Accordingly, and particularly since BAPCPA’s enactment, the number of receiverships has significantly increased.

The U.S. biofuels industry-both ethanol and biodiesel-are well into a full-scale restructuring. Many companies are sitting idle, struggling with limited cash, ceasing operations, evaluating restructuring options or selling assets. Few, if any, players are prospering in the current environment.

This article reviews the recent, short-lived building boom, surveys the current state of the industry, assesses how the industry ended up in this situation, outlines a rationale for future growth and maps out the road ahead.

At its core, the Obama administration's foreclosure prevention program makes mortgage servicing the lynchpin of a new process that looks to modify and refinance millions of delinquent and underwater mortgage loans. The administration is attempting to incentivize servicers to be both proactive in soliciting modifications and to collect sufficient verifiable information to reunderwrite a borrower's credit in order to modify the existing loan. The plan provides for an annual incentive payment to the mortgage servicer provided the modified loan remains current.

With retailer bankruptcies on the rise, financial advisors need to be aware of the complications and pitfalls associated with gift cards. This article brings to light some of the issues faced when a retailer with a significant amount in outstanding gift cards files for bankruptcy proceedings. Like many problems faced in bankruptcy, gift card challenges can be tackled with solid information, clear communication and planning. To meet these challenges, a financial advisor must understand the liabilities associated with outstanding gift cards.

            This is the final article in a four-part series discussing collusion in bankruptcy sales. Part I discussed the prohibition of collusion in bankruptcy sales under §363(n) of the Bankruptcy Code. Part II discussed the difference between permissible collaboration and impermissible collusion. Part III explored the fine line between agreements that control a sales price at an auction versus agreements that only affect the sales price.

At the ABI Winter Leadership Conference in December 2007, the Financial Advisors Committee, in concert with the Investment Banking Committee, the Public Company and Claims Trading Committee, and the Professional Compensation Committee had the pleasure of presenting a joint educational session following the presentation of ABI’s landmark Professional Fee Study by Professor Stephen Lubben of Seton Hall University School of Law.