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ANALYSIS: NEW FLASH OF OPTIMISM FOR SMALL BUSINESS OWNERS

Small-business optimism surged in July and August to some of the highest levels since the recession started, according to a handful of recent surveys, the Wall Street Journal reported today. A quarterly small-business optimism index from Wells Fargo and Gallup also reached its highest level since the third quarter of 2008, and a similar index from the National Federation of Independent Business released in August had its fourth-highest reading since December 2007. While small-business confidence is at its highest level in years, it is still well under pre-recession levels. "Let's not get too excited," said NFIB chief economist Bill Dunkelberg, who added that its own confidence index "is still well below the average reading" of the past 35 years. Read more. (Subscription required.)

For more on the outlook for small businesses in bankruptcy, be sure to listen to the latest ABI podcast featuring Fall 2013 ABI Resident Scholar Prof. Kara Bruce speaking with Prof. Anne Lawton of Michigan State University. Prof. Lawton proposes to simplify the definition of a small-business debtor in bankruptcy to help produce better results in the middle market. Prof. Lawton's proposal was featured in an article in the Summer edition of the ABI Law Review. To listen to the podcast, please click here.

CFPB WANTS PUBLIC WORKERS BETTER INFORMED ABOUT STUDENT LOAN BREAKS

Following President Obama's call to ease the burden of student loan debt for graduates, the Consumer Financial Protection Bureau launched an initiative yesterday to urge public-service organizations to better inform their employees about loan-repayment and forgiveness options, U.S. News and World Report reported today. In a report issued in tandem with the initiative, the CFPB reports that one in four American workers may be eligible for student loan debt-forgiveness programs that are open to public service employees, such as teachers, health workers, police officers, firefighters and social workers. "People give up higher incomes to serve their city, their state, or their country," said CFPB Director Richard Cordray in a call with reporters Wednesday. "We believe that people who contribute part of their talents, part of the benefits of their education, to society as a whole should not be mired in debt because they stir themselves to the calling of public service." The starting salary for a social worker, according to the U.S. Census Bureau, is around $32,000, but after completing the master's work necessary to become a social worker, most students have incurred $36,000 in student loan debt and would end up paying $415 each month under a standard 10-year repayment plan. Federal loan repayment programs such as the Public Service Loan Forgiveness program wipe away remaining debt for public-service employees after 10 years of on-time payments. However, many public-service workers are not aware of these options and may feel pressure to find higher-paying jobs in order to keep up with their student loan payments. Read more.

To read the full CFPB report, please click here.

COMMENTARY: A SIMPLE SOLUTION ON EXECUTIVE PAY THAT MADE A HARD PROBLEM MORE DIFFICULT

Congressional leaders, in their rage against ever-rising executive compensation and income inequality, have ironically created more murkiness, according to a commentary in the New York Times DealBook blog yesterday. The irony, according to the commentary, is that it all came out of such a simple-sounding idea: requiring that the pay of a company's chief executive be compared to the median salary of its employees. Carrying out the law may well result in costs that are just as obscene as the pay it is disclosing. When the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act was being completed, a new section, Section 953(b), was inserted during the final hours of negotiations. What the section required was that all public companies disclose their median worker pay side-by-side with the chief executive's pay. The first problem is how compensation is calculated. We are decades past the time when manager compensation was simply what you received in a paycheck. Now, compensation includes options, pensions, 401(k) matches, health benefits, parking allowances and various other perquisites. Calculating this all as one figure -- and in particular, valuing average stock options for employees as well as top executives -- can be difficult. The ambiguity arises because the rule says that the median is calculated with respect to "all" employees. Read the full commentary.

WALL STREET'S RENTAL BET BRINGS QUANDARY FOR HOUSING POOR

Since private-equity firms, hedge funds and real estate investment trusts have bought more than 100,000 U.S. homes, they have become dominant single-family landlords in markets hardest-hit by the housing crash such as Atlanta, Bloomberg News reported today. As the companies seek thousands of tenants to fill newly renovated properties, their decision as to whether to lease to low-income Americans with Section 8 vouchers stands to affect both their profitability and their poor residents who have been longtime renters. Blackstone -- the largest company in the fledgling industry after spending more than $5 billion to buy 32,000 U.S. homes -- inherited at least 200 Section 8 tenants when it bought a portfolio of Atlanta-area houses in April for about $100 million. That brought the amount of homes occupied by voucher-holders to less than 1 percent of its portfolio, the company said at the time. Invitation Homes, which operates the business, leases to 81 of the almost 17,000 families with vouchers in Atlanta and neighboring DeKalb and Cobb counties, according to data from the three largest Atlanta-area housing authorities. Some institutional landlords, including Waypoint Homes Realty Trust Inc. and Sylvan Road Capital LLC, consider voucher-holders to be a reliable client base because they have a low turnover rate and the government pays most of their rent on a timely basis. Other investors that are building home-rental companies may not want to take on the red tape, stigma of renting to poorer tenants and the potential extra costs, said Christopher Thornberg, principal at research firm Beacon Economics LLC in Los Angeles. They also don't want to leave their homes vacant for long, he said. "As the markets become more saturated with rentals, you may find these guys going to a Section 8 model -- if they don't decide to sell -- simply because they don't want these houses sitting empty," Thornberg said. Investors are buying houses for the potential value appreciation as much as for the rental cash flow, and some may be reluctant to commit to Section 8 tenants because those leases come with long-term constraints that reduce their ability to sell quickly, according to Raphael Bostic, assistant secretary for policy development and research at the U.S. Department of Housing and Urban Development from 2009 to 2012. Read more.

BLOOMBERG'S LATEST "BILL ON BANKRUPTCY" VIDEO: APPEALS COURT CHANGES THE LAW ON FRAUD

The U.S. Court of Appeals in Chicago may be out on a limb by itself, or an opinion this week may signal a change in attitude toward lenders who discover a customer's fraud and do nothing, as Bloomberg Law's Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle discuss in their new video. To watch the video, please click here.

RECORDING NOW AVAILABLE OF THE ABILIVE WEBINAR EXAMINING THE NEW U.S. TRUSTEE FEE GUIDELINES!

If you were not able to join last week's well-attended abiLIVE webinar examining the U.S. Trustee Fee Guidelines for chapter 11 cases filed on or after Nov. 1, a recording of the program is now available for downloading! A panel of experts, including Clifford J. White, the director of the U.S. Trustee Program, discussed some of the ways the new guidelines could change day-to-day operations in firms, issues relating to the new market rate benchmarks, and how these changes might alter insolvency practice. The 90-minute recording is available for the special ABI member price of $75 and can be purchased here.

ABI GOLF TOUR UNDERWAY; LAST STOP FOR 2013 IS WINTER LEADERSHIP CONFERENCE IN DECEMBER

The 7th and final stop for the 2013 ABI Golf Tour is on Dec. 5 at the Trump National Golf Club, held in conjunction with ABI’s Winter Leadership Conference. Final scoring to win the Great American Cup — sponsored by Great American Group — is based on your top three scores from the seven ABI events. See the Tour page for details and course descriptions. The ABI Golf Tour combines networking with fun competition, as golfers "play their own ball." Including your handicap means everyone has an equal chance to compete for the glory of being crowned ABI's top golfer of 2013! A 22-handicapper won the tour event at July’s Southeast Bankruptcy Workshop. There's no charge to register or participate in the Tour.

ABI IN-DEPTH

NEW CASE SUMMARY ON VOLO: IN RE SENTINEL MANAGEMENT GROUP, INC. (APPEAL OF FREDERICK J. GREDE; 7TH CIR.)

Summarized by Mazyar Hedayat of M. Hedayat & Associates PC

The Seventh Circuit affirmed the district court's denial of an illegal contract claim that had been filed by the trustee, but reversed the lower court's denial of fraudulent-transfer and equitable-subordination claims, remanding the case back to the district court for further proceedings.

There are more than 1,000 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: FIFTH CIRCUIT PERMITS SECURED CREDITOR TO DISREGARD CHAPTER 11 CASE

The Bankruptcy Blog Exchange is a free ABI service that tracks 35 bankruptcy-related blogs. A recent blog post reported that a few weeks ago in In re S. White Transportation, the U.S. Court of Appeals for the Fifth Circuit permitted a secured creditor that had indisputably received notice of the debtor's chapter 11 case, but took no steps to protect its interests until after the confirmation of the debtor's plan, to continue to assert a lien against the debtor's property post-confirmation.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

Success fees for financial advisors should be prohibited.

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

INSOL INTERNATIONAL



INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 43 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

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2013

September

- ABI Endowment Golf & Tennis Outing

    Sept. 10, 2013 | Maplewood, N.J.

- Lawrence P. King and Charles Seligson Workshop on Bankruptcy & Business Reorganization

    Sept. 18-19, 2013 | New York

- abiLIVE Webinar: Complex Requirements and Ethical Duties of Representing Consumer Debtors

     Sept. 24, 2013

- Bankruptcy 2013: Views from the Bench

    Sept. 27, 2013 | Washington, D.C.

October

- Midwestern Bankruptcy Institute Program and Midwestern Consumer Forum

    Oct. 4, 2013 | Kansas City, Mo.

- Professional Development Program

    Oct. 11, 2013 | New York, N.Y.

- Chicago Consumer Bankruptcy Conference

    Oct. 14, 2013 | Chicago, Ill.

- International Insolvency & Restructuring Symposium

    Oct. 25, 2013 | Berlin, Germany

November

- Complex Financial Restructuring Program

   Nov. 7, 2013 | Philadelphia, Pa.

- Corporate Restructuring Competition

   Nov. 7-8, 2013 | Philadelphia, Pa.

- Austin Advanced Consumer Bankruptcy Practice Institute

   Nov. 10-12, 2013 | Austin, Texas

- Detroit Consumer Bankruptcy Conference

   Nov. 11, 2013 | Detroit, Mich.

- Delaware Views from the Bench

   Nov. 25, 2013 | Wilmington, Del.

December

- Winter Leadership Conference

    Dec. 5-7, 2013 | Rancho Palos Verdes, Calif.

- ABI/St. John’s Bankruptcy Mediation Training

    Dec. 8-12, 2013 | New York

FORMER TREASURY SECRETARY PAULSON REFLECTS ON TARP, BONUSES FIVE YEARS AFTER CRASH

Five years after the financial crisis, Henry M. Paulson Jr., former Treasury secretary, assessing the success of a bailout program, said that the bonuses that the banks paid after the bailouts -- a record $140 billion in 2009 -- fueled public outrage over the program he worked so hard to persuade Congress to pass and the country to support, the New York Times DealBook blog reported yesterday. "My view has nothing to do with legality and everything to do with what was right, and everything to do with just a colossal lack of self-awareness as to how they were viewed by the American public," Paulson said. For Paulson, the bailout program, known as the Troubled Asset Relief Program (TARP), was his crowning achievement during a historic financial crisis in which the global economy nearly toppled. While TARP was terribly unpopular, most economists now credit it and the extraordinary measures taken by the Federal Reserve with helping to prevent another depression. Yet questions about the bailouts remain, including why Paulson and Congress did not seek tighter restrictions on pay. He maintains that it would have been impossible to persuade the majority of the banks to participate in the program if it had significant restrictions on pay, and that to him, the most important aspect of TARP's success in stabilizing the system was that the entire industry participated at the same time. When pressed about whether U.S. banks would have truly been in a position to reject the recapitalization plan had tighter restrictions been put in place, Paulson pointed to the speed at which the banks paid back the TARP funds. "Just look how fast so many of them tried to pay back the capital once it was stigmatized," he said. "How do you ever implement restrictions like that on pay and do it in a way" that included all the banks, and not just those that "desperately needed the capital or were getting ready to fail? I don't know." Read more.

ANALYSIS: DESPITE LOWER UNEMPLOYMENT RATE, OLDER WORKERS FACE TROUBLING TRENDS OF REDUCED PAY AND LONGER JOB SEARCHES

Though they have a lower unemployment rate than other age brackets, a substantial number of older workers who lost jobs -- even those lucky enough to be re-employed -- are facing difficult trends, the New York Times reported today. According to the Bureau of Labor Statistics, the unemployment rate for workers 55 to 64 (the category that best matches boomers, who range from 48 to 67) was 5.4 percent in July, compared with 7.4 percent for the general population. However, two-thirds of the Baby Boomer age group who found work again are making less than they did in their previous job. Most have found that their median salary loss is 18 percent compared with a 6.7 percent drop for 20- to 24-year-olds. The re-employment rate for 55- to 64-year-olds is 47 percent and 24 percent for those over 65, compared with 62 percent for 20- to 54-year-olds. And finding another job takes far longer: 46 weeks for boomers, compared with 20 weeks for 16- to 24-year-olds. Nor are those who believe age discrimination was a factor likely to have much luck in court. In 2009, just as the economy was hitting rock-bottom, the Supreme Court issued a ruling that toughened the standard for proving bias. Read more.

CREDIT CARD FIRMS COMPETING AGAIN WITH NO-INTEREST TRANSFERS

U.S. credit card companies, hungry for new customers as many Americans continue to shun debt, are pumping up a popular promotion that can be risky for both lenders and consumers, the Wall Street Journal reported today. The teasers, known as 0 percent balance transfers, have been used periodically since the late 1990s. The current offers, however, cover unusually lengthy periods and, in some cases, are being extended to a wider swath of potential customers than in the past, say industry executives and consultants. Those with spotty credit histories, however, still aren't eligible for the promotions. The offers are coming from the country's biggest credit-card issuers, including JPMorgan Chase & Co., Discover Financial Services Inc., and Citigroup Inc. Credit unions are also joining in: Navy Federal Credit Union is starting a promotion in September that offers all of its 4.5 million members, as well as new customers, an interest-free balance transfer for 12 months. Lenders are pushing the offers as they attempt to bulk up their loan portfolios, which shrank dramatically during the financial crisis while they were writing off bad loans and restricting credit. The strategy carries some risk for card issuers, which historically haven't done a good job of getting the customers who transfer balances to use the cards for new purchases. That leaves the bank with revenue only from the balance-transfer fee and stuck with the cost of maintaining an account. Some customers also pay off the full balance as the offer expires, or they jump to another lender that has a new offer. Read more. (Subscription required.)

LATEST ABI PODCAST: MAKING BANKRUPTCY WORK FOR A SMALL BUSINESS DEBTOR

The latest ABI Podcast features Fall 2013 ABI Resident Scholar Prof. Kara Bruce speaking with Prof. Anne Lawton of Michigan State University about her proposal to simplify the definition of a small business debtor in bankruptcy. Prof. Lawton's proposal was featured in an article in the Summer edition of the ABI Law Review. To listen to the podcast, please click here.

ABI'S LATEST E-BOOK, PROBLEMS IN THE CODE, NOW AVAILABLE FOR PURCHASE

Drawing on articles that originally appeared in the ABI Journal, as well as fresh new insights, Problems in the Code, the second in a digital series known as ABI Briefs, offers commentary from leading bankruptcy practitioners regarding areas of the Bankruptcy Code that, in their opinion, need reform. Edited by Howard Brod Brownstein, Problems in the Code includes sections on constitutional law, executory contracts, intellectual property, real estate and environmental issues, and confirmation and post-confirmation issues. A final chapter details the work of the ABI Commission to Study the Reform of Chapter 11. The new e-book is available for the low member price of $9.99!

RECORDING NOW AVAILABLE OF THE ABILIVE WEBINAR EXAMINING THE NEW U.S. TRUSTEE FEE GUIDELINES!

If you were not able to join last week's well-attended abiLIVE webinar examining the U.S. Trustee Fee Guidelines for chapter 11 cases filed on or after Nov. 1, a recording of the program is now available for downloading! A panel of experts, including Clifford J. White, the director of the U.S. Trustee Program, discussed some of the ways the new guidelines could change day-to-day operations in firms, issues relating to the new market rate benchmarks, and how these changes might alter insolvency practice. The 90-minute recording is available for the special ABI member price of $75 and can be purchased here.

ABI GOLF TOUR UNDERWAY; LAST STOP FOR 2013 IS WINTER LEADERSHIP CONFERENCE IN DECEMBER

The 7th and final stop for the 2013 ABI Golf Tour is on Dec. 5 at the Trump National Golf Club, held in conjunction with ABI’s Winter Leadership Conference. Final scoring to win the Great American Cup — sponsored by Great American Group — is based on your top three scores from the seven ABI events. See the Tour page for details and course descriptions. The ABI Golf Tour combines networking with fun competition, as golfers "play their own ball." Including your handicap means everyone has an equal chance to compete for the glory of being crowned ABI's top golfer of 2013! A 22-handicapper won the tour event at July’s Southeast Bankruptcy Workshop. There's no charge to register or participate in the Tour.

ABI IN-DEPTH

NEW CASE SUMMARY ON VOLO: TOYE V. O'DONNELL (IN RE O'DONNELL; 1ST CIR.)

Summarized by Michael Sugar of Lobel, Neue & Till LLP

The First Circuit upheld the bankruptcy court's determination that David O'Donnell's debt to Thomas Toye III was nondischargeable. The bankruptcy court had held that O'Donnell had failed to properly supervise a loan adviser's preparation of O'Donnell's personal financial statement that was submitted to Toye as part of O'Donnell's agreement to repay a loan made by Toye to an O'Donnell-controlled entity.

There are more than 1,000 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: SEVENTH CIRCUIT SIDES WITH SIXTH CIRCUIT IN HOLDING THAT CONSENT DOES NOT CURE BANKRUPTCY COURTS' LACK OF FINAL CONSTITUTIONAL AUTHORITY

The Bankruptcy Blog Exchange is a free ABI service that tracks 35 bankruptcy-related blogs. A recent blog post examines how, in last week's case of Wellness International Network v. Sharif, the Seventh Circuit Court of Appeals weighed in on the circuit split regarding bankruptcy courts' authority to hear and determine "core" matters as to which they lack final constitutional authority.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

A class of claims should not be considered impaired for purposes of § 1129(a)(10) if the impairment results from the plan proponents' exercise of discretion (i.e., artificial impairment) and not driven by economic need. (In re Village at Camp Bowie I LP).

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

INSOL INTERNATIONAL



INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 43 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

Have a Twitter, Facebook or LinkedIn Account?

Join our networks to expand yours.

2013

September

- ABI Endowment Golf & Tennis Outing

    Sept. 10, 2013 | Maplewood, N.J.

- ABI Endowment Baseball Game

    Sept. 12, 2013 | Baltimore, Md.

- Lawrence P. King and Charles Seligson Workshop on Bankruptcy & Business Reorganization

    Sept. 18-19, 2013 | New York

- abiLIVE Webinar: Complex Requirements and Ethical Duties of Representing Consumer Debtors

     Sept. 24, 2013

- Bankruptcy 2013: Views from the Bench

    Sept. 27, 2013 | Washington, D.C.

October

- Midwestern Bankruptcy Institute Program and Midwestern Consumer Forum

    Oct. 4, 2013 | Kansas City, Mo.

- Professional Development Program

    Oct. 11, 2013 | New York, N.Y.

- Chicago Consumer Bankruptcy Conference

    Oct. 14, 2013 | Chicago, Ill.

- International Insolvency & Restructuring Symposium

    Oct. 25, 2013 | Berlin, Germany

November

- Complex Financial Restructuring Program

   Nov. 7, 2013 | Philadelphia, Pa.

- Corporate Restructuring Competition

   Nov. 7-8, 2013 | Philadelphia, Pa.

- Austin Advanced Consumer Bankruptcy Practice Institute

   Nov. 10-12, 2013 | Austin, Texas

- Detroit Consumer Bankruptcy Conference

   Nov. 11, 2013 | Detroit, Mich.

- Delaware Views from the Bench

   Nov. 25, 2013 | Wilmington, Del.

December

- Winter Leadership Conference

    Dec. 5-7, 2013 | Rancho Palos Verdes, Calif.

- ABI/St. John’s Bankruptcy Mediation Training

    Dec. 8-12, 2013 | New York

ANALYSIS: CRITICS OF DETROIT'S BANKRUPTCY HAVEN'T OFFERED UP ALTERNATIVES

Objections to Detroit’s historic chapter 9 bankruptcy have been coming from the usual suspects. But none of them offers to change the fundamental reality facing America’s poorest major city, according to an analysis in The Detroit News on Tuesday. They can’t. Detroit’s government is insolvent and managerially spent, facts unaltered by complaints that Emergency Manager Kevyn Orr and his team failed to bargain in good faith. One month into the largest municipal bankruptcy in American history, it is clear that this won’t be a quick-rinse job akin to the General Motors Corp. or Chrysler LLC bankruptcies — but it is moving along nonetheless. The precedent-setting legal fight’s outcome could have a profound impact on unions, pension funds and the municipal finance market. The stakes are enormous, and financial creditors, unions, pension funds, retirees and ordinary citizens are objecting to Detroit’s bankruptcy filing because there are few opportunities otherwise to do so. Should U.S. Bankruptcy Judge Steven Rhodes accept the objections following an eligibility trial scheduled to begin Oct. 23, Orr, the city and their sponsors in Lansing would be back at square one with no Plan B. But experts say that Detroit’s case is progressing relatively rapidly. "For a case of this size — think about how complex it is — it’s moving quickly," says Douglas Bernstein, managing partner of Plunkett Cooney’s banking, bankruptcy and creditors’ rights practice group in Bloomfield Hills, Mich. Judge Rhodes is "way quicker than any of the others" in Alabama, California and Rhode Island, "and he’s got the biggest case of them all," Bernstein said. Click here to read the full analysis.

INVESTORS ARE SELLING MUNICIPAL BONDS AGAIN

Municipal bonds usually don’t get much attention unless something’s wrong, but they’re getting attention now, the Associated Press reported today. Investors have been running away from bonds issued by state and local governments for several months, even though they offer tax-free income. The worries began when interest rates started to rise in the spring and heightened after Detroit became the biggest city in the country ever to file for bankruptcy. The selloff is reminiscent of one that smacked municipal bonds in late 2010 and early 2011, following a prediction that a wave of defaults would hit the market. But now, like then, managers of municipal-bond mutual funds say that the worries have created a buying opportunity. Investors who bought in late 2010 did well: The average intermediate-term municipal bond fund returned 9 percent in 2011. Managers say such big gains aren’t likely this year, but long-term municipal bonds can offer tax-free yields of 5 percent and have the potential to increase in price if interest rates don’t take off, says John Miller, co-head of global fixed income for Nuveen Investments. Nearly every municipal bond mutual fund has lost money over the last three months. For a rebound in the municipal bond market to happen, it needs to snap out of the self-feeding selling cycle that has overtaken it. Click here to read the full article.

BANKRUPTCY, EVEN FOR DETROIT, COMES WITH A COST

As if Detroit doesn’t have enough money problems, now the cash-strapped city faces a huge bill from its bankruptcy lawyers — which, according to a Marketplace.org report today, begs the question: Is bankruptcy worth it? For example, Lehman Brothers’s bankruptcy fees topped $2 billion. "It can get very expensive," says Prof. David Skeel of the University of Pennsylvania. He says plenty of bankruptcies cost millions of dollars these days. One reason is that no one wants to speak up. "Nobody that’s in the case wants to rat on somebody else and say, ‘Your fees are way too high,’" he says. Over the past 10 years, Skeel says more companies have decided to fold rather than deal with bankruptcy costs. But there’s also more oversight now, especially since the Department of Justice updated its fee guidelines to make bankruptcy fees more transparent. "I’ll call up the professional and say, ‘Tell me why you made this choice,’" says Prof. Nancy Rapoport of the University of Nevada, Las Vegas, who has been a fee examiner. "Sometimes it’s a great choice. Sometimes we talk about a reduction in fees." Oversight, she says, is essential. "If reasonable fees aren’t being charged, then something is wrong with the system," she says. Click here to read the full article.

In related news, ABI held a webinar on Tuesday about the new U.S. Trustee Fee Guidelines, which will affect all attorneys and firms who work on larger chapter 11 cases filed on or after Nov. 1. Presented by ABI’s Ethics & Professional Compensation Committee, a panel of experts, including Clifford J. White, the director of the U.S. Trustee Program, discussed some of the ways that the new guidelines could change day-to-day operations in firms, issues relating to the new market rate benchmarks, and how these changes might alter insolvency practice. Click here to download a recording of the webinar.

CREDIT CARD DEBT IS FALLING, BUT STILL VERY HIGH

Consumer credit card debt in the U.S. has been edging down in recent years after peaking in July 2008 at $1 trillion (about the size of Mexico's annual GDP), IB Times reported yesterday. According to data from the Federal Reserve, as of July 2013 the average indebted household in the U.S. carries average credit card debt of $15,325, although that figure is somewhat skewed by a small number of extraordinarily debt-stricken families and couples. But that average credit card balance pales in comparison with average mortgage debt ($147,924) and average student loan debt ($32,041). On the whole, American consumers currently owe an aggregate of $856.5 billion in credit card debt. This figure has been falling since the height of the global financial crisis — not just because some debtors are paying off their balances, but also due to rising defaults as credit card companies and banks simply wrote off seriously delinquent debts, a phenomenon that coincided with soaring unemployment and personal bankruptcies. Thus, credit card balances are falling for both good and bad reasons. "Overall, consumers have been much more cautious about spending on credit since the recession; they discovered what overleveraging can do when the economy is struggling," said Leslie Levesque, U.S. economist at IHS Global Insight. Click here to read the full article.

BILL ON BANKRUPTCY VIDEO: AFSCME SAYS BANKRUPTCY LAW UNCONSTITUTIONAL

The AFSCME labor union is opposing the Detroit bankruptcy by contending that the entire municipal bankruptcy scheme violates the U.S. Constitution, as Bloomberg Law's Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle discuss in their new video. Again this week, Rochelle and Pacchia cover the American Airlines bankruptcy, this time focusing on whether parent AMR Corp. can persuade the bankruptcy judge to approve the reorganization plan before there's resolution to the government's antitrust suit. Rochelle also mentions the newest statistics showing no increase in business for bankruptcy professionals. The video ends with discussion of an important new decision from the U.S. Eleventh Circuit Court of Appeals in Atlanta adopting a new theory for taking assets outside of a bankrupt estate. Click here to watch the video.

ABI GOLF TOUR UNDERWAY; LAST STOP FOR 2013 IS WINTER LEADERSHIP CONFERENCE IN DECEMBER

The 7th and final stop for the 2013 ABI Golf Tour is on Dec. 5 at the Trump National Golf Club, held in conjunction with ABI’s Winter Leadership Conference. Final scoring to win the Great American Cup — sponsored by Great American Group — is based on your top three scores from the seven ABI events. See the Tour page for details and course descriptions. The ABI Golf Tour combines networking with fun competition, as golfers "play their own ball." Including your handicap means everyone has an equal chance to compete for the glory of being crowned ABI's top golfer of 2013! A 22-handicapper won the tour event at July’s Southeast Bankruptcy Workshop. There's no charge to register or participate in the Tour.

ABI IN-DEPTH

ABI’S VOLO PROJECT POSTS 1,000TH CIRCUIT COURT OPINION: PATRIOT COAL CORP. V. PEABODY HOLDING CO. (IN RE PATRIOT COAL CORP.; 8TH CIR.)

ABI now hosts more than 1,000 circuit court opinion summaries on its circuit court first-responder site, volo.abi.org. Appellate opinions are summarized within 24 hours of being issued and are then posted by a team of editors, led by Scott F. Gautier (Peitzman Weg LLP; Los Angeles). Opinion summaries also include links to the full text of each opinion.

Reversing the decision of the bankruptcy court, in Patriot Coal Corp. v. Peabody Holding Co. (In re Patriot Coal Corp.), Case No. 13-6031 (B.A.P. 8th Cir. Aug. 21, 2013), the Eighth Circuit Bankruptcy Appellate Panel held that Peabody Holding must continue to pay health care benefits for certain retired miners and dependents who worked for Heritage Coal Co., a Peabody subsidiary that was transferred to Patriot Coal in 2007.

Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: TAX REFORM PROPOSAL BACKS CREDIT UNIONS INTO A CORNER

The Bankruptcy Blog Exchange is a free ABI service that tracks 35 bankruptcy-related blogs. A recent blog post explains how credit unions’ advocating to keep their tax-exempt status alive merely pass tax increases along to American businesses.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

A class of claims should not be considered impaired for purposes of § 1129(a)(10) if the impairment results from the plan proponents' exercise of discretion (i.e., artificial impairment) and not driven by economic need. (In re Village at Camp Bowie I LP).

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

INSOL INTERNATIONAL



INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 43 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

Have a Twitter, Facebook or LinkedIn Account?

Join our networks to expand yours.

2013

August

- Southwest Bankruptcy Conference

    August 22-24, 2013 | Incline Village, Nev.

September

- ABI Endowment Golf & Tennis Outing

    Sept. 10, 2013 | Maplewood, N.J.

- ABI Endowment Baseball Game

    Sept. 12, 2013 | Baltimore, Md.

- Lawrence P. King and Charles Seligson Workshop on Bankruptcy & Business Reorganization

    Sept. 18-19, 2013 | New York

- abiLIVE Webinar: Complex Requirements and Ethical Duties of Representing Consumer Debtors

     Sept. 24, 2013

- Bankruptcy 2013: Views from the Bench

    Sept. 27, 2013 | Washington, D.C.

October

- Midwestern Bankruptcy Institute Program and Midwestern Consumer Forum

    Oct. 4, 2013 | Kansas City, Mo.

- Professional Development Program

    Oct. 11, 2013 | New York, N.Y.

- Chicago Consumer Bankruptcy Conference

    Oct. 14, 2013 | Chicago, Ill.

- International Insolvency & Restructuring Symposium

    Oct. 25, 2013 | Berlin, Germany

November

- Complex Financial Restructuring Program

   Nov. 7, 2013 | Philadelphia, Pa.

- Corporate Restructuring Competition

   Nov. 7-8, 2013 | Philadelphia, Pa.

- Austin Advanced Consumer Bankruptcy Practice Institute

   Nov. 10-12, 2013 | Austin, Texas

- Detroit Consumer Bankruptcy Conference

   Nov. 11, 2013 | Detroit, Mich.

- Delaware Views from the Bench

   Nov. 25, 2013 | Wilmington, Del.

December

- Winter Leadership Conference

    Dec. 5-7, 2013 | Rancho Palos Verdes, Calif.

- ABI/St. John’s Bankruptcy Mediation Training

    Dec. 8-12, 2013 | New York

ANALYSIS: WHEN LENDERS ARE NOT PAID BACK

Much of the lending done in the U.S. relies on having both collateral and contractual obligations (loan covenants) that together provide the lender with assurance that the funds lent out will be repaid. Rather than putting up physical assets as collateral, governments often instead promise to repay bondholders out of a dedicated stream of income, such as via the tolls collected on a bridge or out of unspecified revenue from future taxes. It is not surprising, then, that a financial crisis involving trillions of dollars of bad loans led to legal conflicts and policy debates about the role of collateral and the sanctity of contracts, according to an analysis in today's New York Times Economix Blog. It seems likely that people owed money by the city of Detroit will get less than promised. One of the many elements in the city's bankruptcy proceedings is the treatment of the holders of general obligation bonds, which constitute $530 million out of the city's $18 billion in total debt. In the past, this type of municipal bond was considered relatively safe in that the borrowing authority was seen as having an implicit commitment to raise taxes as necessary to pay off the obligation. The proposal from Kevyn Orr, Detroit's emergency manager, however, would have these bonds paid back at only 20 cents on the dollar. With Detroit city services already threadbare, and with Orr's bankruptcy proposal foisting losses on retired city workers and current employees through reductions in pensions and other benefits, it seems only fair for bondholders to share in the pain. Bond insurers are likely to file suit, but success by Orr in upending the heretofore accepted view of general obligation bonds could inflict considerable pain on other municipal borrowers, who might well expect to pay higher interest rates to investors nervous that one day other cities might follow Detroit's example. Click here to read the full analysis.

COMMENTARY: NO BANKER LEFT BEHIND

The Detroit bankruptcy case has been cast as a contest between bondholders and pensioners that can be resolved only by shared sacrifice. In principle, there is no problem with that, although in practice, the pensioners' fair share will have to take into account their extreme vulnerability: Public pensions are not federally insured, and many municipal retirees do not receive Social Security. What is problematic is shared sacrifice that does not seem to apply to the big banks that abetted Detroit's descent into bankruptcy, according to a commentary in Friday's New York Times. Just days before its bankruptcy filing last month, Detroit reached its first settlement with creditors. The settlement was with UBS and Bank of America, and although the precise terms will not be nailed down until the bankruptcy judge weighs in, Detroit is set to pay an estimated $250 million to terminate a soured derivatives transaction from 2005 that was supposed to protect Detroit from rising interest payments on a chunk of its variable rate debt. By 2009, both interest rates and the city's credit rating were falling, forcing Detroit to pay the banks some $50 million a year and to pledge roughly $11 million a month in casino-tax revenue as additional collateral. The banks have agreed in a settlement to a discount of as much as 25 percent off what they are owed. But the haircut doesn't mean that the banks will suffer. The banks' 25 percent hit is nothing compared with the city's suggested 90 percent cut to the pensions' unfunded liability — which will result in benefit cuts that would be disastrous in both human and political terms and that the State of Michigan must prevent from happening, according to the commentary. Click here to read the full commentary.

DETROIT SCHOOLS SELL BONDS, FOR A PRICE

Detroit's public-school system sold $92 million in debt today at a substantial yield premium in the largest Michigan municipal-bond sale since Detroit's bankruptcy filing last month, the Wall Street Journal reported today. The Michigan Finance Authority, which sold the debt for Detroit Public Schools, offered the one-year debt at a yield of 4.375%. That compares with 0.18% on a typical triple-A-rated, one-year municipal bond, according to Thomson Reuters Municipal Market Data. The borrowing is backed by a pledge of state aid, a protection cited by some investors who placed orders for the debt. Still, some investors stayed away. Detroit's bankruptcy, filed July 18, has sparked concerns that municipal bonds may not be as safe as many investors once assumed. Kevyn Orr, the city's emergency manager, has proposed imposing cuts on some muni bondholders as the city looks to restructure more than $18 billion in debt. And while Detroit's school district is a separate entity from the city and isn't involved in its bankruptcy, it has still seen its share of financial struggles. It has been under state control, under a separate emergency manager, since 2009, and it has also lost more than 33,000 students, or 40% of its enrollment base, since 2010, according to S&P. Even so, holders of the one-year debt sold today should get paid even if enrollment falls as much as 33%, according to S&P. Click here to read the full article. (Subscription required.)

TRANSUNION: AUTO LOAN DELINQUENCIES REMAIN FLAT DESPITE INCREASE IN LOAN BALANCES

The national auto loan delinquency rate (the percentage of accounts 60 or more days past due) remained relatively flat year-over-year, moving from 0.79% in Q2 2012 to 0.80% in Q2 2013, according to a newswire report today. On a quarter-over-quarter basis, the auto loan delinquency rate experienced an 8-basis-point drop from 0.88% in Q1 2013, according to data provided by TransUnion's Industry Insights Report. Auto loan balances continue to increase, jumping more than 4% between Q2 2012 ($12,875) and Q2 2013 ($13,435). Every state except for Michigan experienced an increase in average auto loan balances during this time frame. While subprime borrower debt increased more than 7% in the last year, delinquency levels for this segment remained about the same, moving from 4.94% in Q2 2012 to 5.02% in Q2 2013. Click here to read the full article.

ABI GOLF TOUR UNDERWAY; NEXT STOP IS THE SOUTHWEST BANKRUPTCY CONFERENCE ON THURSDAY

The 6th stop for the ABI Golf Tour is on Aug. 22 at the Incline Village Champion course, held in conjunction with ABI's Southwest Bankruptcy Conference. Final scoring to win the Great American Cup — sponsored by Great American Group — is based on your top three scores at seven scheduled ABI events, so play as many as you can before the tour wraps up at the Winter Leadership Conference in December. See the Tour page for details and course descriptions. The ABI Golf Tour combines networking with fun competition, as golfers "play their own ball." Including your handicap means everyone has an equal chance to compete for the glory of being crowned ABI's top golfer of 2013! A 22-handicapper won the tour event at July's Southeast Bankruptcy Workshop. There's no charge to register or participate in the Tour.

ABI IN-DEPTH

NEW CASE SUMMARY ON VOLO: AMERICAN BANK, FSB V. IN RE CORNERSTONE COMMUNITY BANK (IN RE AMERICAN BANK, FSB; 6TH CIR.)

Summarized by Bryan Robinson of Law Offices of Bryan Robinson

The Sixth Circuit Court of Appeals affirmed the ruling by the district court that, in regards to the competing secured claims by American Bank and Cornerstone Community Bank, in the funds of the insolvent debtor U.S. Insurance Group (USIG), held in an account at Cornerstone, American Bank's interest was superior to Cornerstone's interest and that Cornerstone had no right to the money. The court's decision was based on the Premium Finance Company Act, Tenn. Code Ann. §§ 56-37-101 et seq. (2008), which gave American a senior perfected security interest in the contested funds good against any competing interest claimed by Cornerstone.

There are nearly 1,000 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: § 502(b)(2) AND THE COLLECTION OF POST-PETITION INTEREST

The Bankruptcy Blog Exchange is a free ABI service that tracks 35 bankruptcy-related blogs. A recent blog post discusses the Ninth Circuit's decision that a creditor can collect post-petition interest from a nondebtor party even though the Code prohibits a creditor from asserting a claim for "unmatured interest."

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

A class of claims should not be considered impaired for purposes of § 1129(a)(10) if the impairment results from the plan proponents' exercise of discretion (i.e., artificial impairment) and not driven by economic need. (In re Village at Camp Bowie I LP).

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

INSOL INTERNATIONAL



INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 43 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

Have a Twitter, Facebook or LinkedIn Account?

Join our networks to expand yours.

2013

August

- Southwest Bankruptcy Conference

    August 22-24, 2013 | Incline Village, Nev.

September

- ABI Endowment Golf & Tennis Outing

    Sept. 10, 2013 | Maplewood, N.J.

- ABI Endowment Baseball Game

    Sept. 12, 2013 | Baltimore, Md.

- Lawrence P. King and Charles Seligson Workshop on Bankruptcy & Business Reorganization

    Sept. 18-19, 2013 | New York

- abiLIVE Webinar: Complex Requirements and Ethical Duties of Representing Consumer Debtors

     Sept. 24, 2013

- Bankruptcy 2013: Views from the Bench

    Sept. 27, 2013 | Washington, D.C.

October

- Midwestern Bankruptcy Institute Program and Midwestern Consumer Forum

    Oct. 4, 2013 | Kansas City, Mo.

- Professional Development Program

    Oct. 11, 2013 | New York, N.Y.

- Chicago Consumer Bankruptcy Conference

    Oct. 14, 2013 | Chicago, Ill.

- International Insolvency & Restructuring Symposium

    Oct. 25, 2013 | Berlin, Germany

November

- Complex Financial Restructuring Program

   Nov. 7, 2013 | Philadelphia, Pa.

- Corporate Restructuring Competition

   Nov. 7-8, 2013 | Philadelphia, Pa.

- Austin Advanced Consumer Bankruptcy Practice Institute

   Nov. 10-12, 2013 | Austin, Texas

- Detroit Consumer Bankruptcy Conference

   Nov. 11, 2013 | Detroit, Mich.

December

- Winter Leadership Conference

    Dec. 5-7, 2013 | Rancho Palos Verdes, Calif.

- ABI/St. John’s Bankruptcy Mediation Training

    Dec. 8-12, 2013 | New York

JULY FORECLOSURE ACTIVITY DOWN 32 PERCENT OVER LAST YEAR

RealtyTrac reported that foreclosure filings last month -- including default notices, auctions and bank repossessions -- increased 2 percent from their 78-month low in June but were still down 32 percent from a year ago, USA Today reported today. Foreclosure starts -- the beginning of the process -- were up 6 percent from June but 38 percent lower year over year. Overall, foreclosure activity in July touched almost 131,000 homes. That's down 64 percent from the peak of foreclosure activity in early 2010, but still 54 percent above the average monthly foreclosure activity before the 2006 housing bust. Read more.

U.S. HOUSEHOLD DEBT DECLINED SLIGHTLY DURING SECOND QUARTER

The Federal Reserve Bank of New York reported yesterday that U.S. household debt fell 0.7 percent during the second quarter as a drop in mortgage balances outpaced a rise in borrowing to finance cars and education, Bloomberg News reported yesterday. Consumer indebtedness declined $78 billion to $11.15 trillion, according to a quarterly report on household debt and credit released today by the Fed district bank. Mortgage balances decreased $91 billion to $7.84 trillion, and home-equity lines of credit fell by $12 billion to $540 billion. Americans have slashed their debt from a peak of $12.68 trillion in the third quarter of 2008, according to the New York Fed. Non-housing borrowing increased by 0.9 percent as car loan balances rose by $20 billion, and student loan and credit card borrowing each increased by $8 billion, the report said. Auto-loan debt has grown by $108 billion in the last nine quarters, according to the New York Fed. Read more.

ANALYSIS: STUDENT-LOAN LOAD KILLS STARTUP DREAMS

The rising mountain of student debt, recently closing in on $1.2 trillion, is forcing some entrepreneurs to abandon startup dreams and others to radically reshape their business plans, the Wall Street Journal reported yesterday. The average student who borrows has piled up about $40,000 in debt by graduation, including parents' loans -- nearly double the levels of a decade ago, according to Edvisors.com, which runs college-planning and financial-aid websites. Recipients of graduate and professional degrees who borrow carry an average of more than $55,000 in debt at graduation, including undergraduate loans but not parent loans. That is up from $40,800 some 10 years ago. Some academic experts say that leftover loans are the biggest impediment to upstart entrepreneurship by those who recently received college or graduate degrees. At least one state has taken steps to alleviate the pressures. California this year enacted legislation that will reduce college costs for middle-class Californians who attend its public universities. Similarly, the Rhode Island Student Loan Authority (RISLA), a quasigovernmental nonprofit group, is looking at whether it is feasible to temporarily forbear or reduce payments for recent graduates who start a businesses or go to work for a new venture. The aim is to give recent graduates "the opportunity to try working for a startup or creating a startup instead of having to run off to Arizona and start working for Intel," says Charles P. Kelley, RISLA executive director. Read more. (Subscription required.)

STATES RECEPTIVE TO PROPOSALS AIMED AT BREAKING UP BIG BANKS



Sen. Elizabeth Warren's (D-Mass.) effort to break up Wall Street banks through proposals to resurrect the Glass-Steagall Act may not have a lot of support in Congress, but it has a sympathetic audience in state capitals across the country, Politico reported yesterday. Lawmakers in at least 18 states have introduced resolutions this year calling on Congress to split up banking giants by putting back in place a wall between commercial banking, taking deposits and making loans, and investment banking, the world of traders and deal-makers. "We on the state level have been looking for an Elizabeth Warren -- someone to carry this banner for us," said Illinois state Rep. Mary Flowers, a Democrat who is the lead sponsor on a resolution introduced in May that urges Congress to reinstate Glass-Steagall, which was repealed in 1999. Read more.

abiLIVE WEBINAR NEXT TUESDAY: HOW WILL THE NEW U.S. TRUSTEE FEE GUIDELINES IMPACT YOU?



The new U.S. Trustee Fee Guidelines will affect all attorneys and firms who work on larger chapter 11 cases filed on or after Nov. 1. ABI's Ethics & Professional Compensation Committee will present a panel of experts, including Clifford J. White, the director of the U.S. Trustee Program, to discuss some of the ways the new guidelines could change day-to-day operations in firms, issues relating to the new market rate benchmarks, and how these changes might alter insolvency practice. Register today to hear government, attorney and academic perspectives speak on this important and timely topic.

ABI GOLF TOUR UNDERWAY; NEXT STOP IS THE SOUTHWEST BANKRUPTCY CONFERENCE NEXT WEEK



The 6th stop for the ABI Golf Tour is on Aug. 22 at the Incline Village Champion course, held in conjunction with ABI's Southwest Bankruptcy Conference. Final scoring to win the Great American Cup — sponsored by Great American Group — is based on your top three scores at seven scheduled ABI events, so play as many as you can before the tour wraps up at the Winter Leadership Conference in December. See the Tour page for details and course descriptions. The ABI Golf Tour combines networking with fun competition, as golfers "play their own ball." Including your handicap means everyone has an equal chance to compete for the glory of being crowned ABI's top golfer of 2013! A 22-handicapper won the tour event at July's Southeast Bankruptcy Workshop. There's no charge to register or participate in the Tour.

ABI IN-DEPTH

ASSOCIATES: ABI'S NUTS & BOLTS ONLINE PROGRAMS HELP YOU HONE YOUR SKILLS WHILE SAVING ON CLE!



Associates looking to sharpen their bankruptcy knowledge should take advantage of ABI's special offer of combining general, business or consumer Nuts & Bolts online programs. Each program features an outstanding faculty of judges and practitioners explaining the fundamentals of bankruptcy, offering procedures and strategies tailored for both consumer and business attorneys. Click here to get the CLE you need at a great low price!

NEW CASE SUMMARY ON VOLO: WILLIAM EDWIN LINDSEY V. PINNACLE NATIONAL BANK, ET AL. (IN RE LINDSEY; 6TH CIR.)



Summarized by Dean Langdon of DelCotto Law Group PLLC

The Sixth Circuit Court of Appeals dismissed the appeal for lack of jurisdiction, holding that the district court's affirmation of the bankruptcy court order declining to confirm a proposed chapter 11 plan was not a final order under 11 U.S.C. § 158(d)(1), and no party had sought certification under § 158 (d)(2). The Court joined the Second, Eighth, Ninth and Tenth Circuits in holding that an order denying confirmation was not a final order under § 158(d)(1), and it rejected contrary decisions from the Third, Fourth and Fifth Circuits.

There are nearly 1,000 appellate opinions summarized on Volo, and summaries typically appear within 24 hours of the ruling. Click here regularly to view the latest case summaries on ABI’s Volo website.

NEW ON ABI’S BANKRUPTCY BLOG EXCHANGE: EFFECT OF THE DOJ'S LAWSUIT IN AMR'S BANKRUPTCY

The Bankruptcy Blog Exchange is a free ABI service that tracks 35 bankruptcy-related blogs. A recent blog post examines the effect that DOJ's anti-merger lawsuit will have on AMR's attempts to emerge from bankruptcy.

Be sure to check the site several times each day; any time a contributing blog posts a new story, a link to the story will appear on the top. If you have a blog that deals with bankruptcy, or know of a good blog that should be part of the Bankruptcy Exchange, please contact the ABI Web team.

ABI Quick Poll

A class of claims should not be considered impaired for purposes of § 1129(a)(10) if the impairment results from the plan proponents' exercise of discretion (i.e., artificial impairment) and not driven by economic need. (In re Village at Camp Bowie I LP).

Click here to vote on this week's Quick Poll. Click here to view the results of previous Quick Polls.

INSOL INTERNATIONAL



INSOL International is a worldwide federation of national associations for accountants and lawyers who specialize in turnaround and insolvency. There are currently 43 member associations worldwide with more than 9,000 professionals participating as members of INSOL International. As a member association of INSOL, ABI's members receive a discounted subscription rate. See ABI's enrollment page for details.

Have a Twitter, Facebook or LinkedIn Account?

Join our networks to expand yours.

2013

August

- abiLIVE Webinar: How Will the New U.S. Trustee Fee Guidelines Impact You?

     August 20, 2013

- Southwest Bankruptcy Conference

    August 22-24, 2013 | Incline Village, Nev.

September

- ABI Endowment Golf & Tennis Outing

    Sept. 10, 2013 | Maplewood, N.J.

- ABI Endowment Baseball Game

    Sept. 12, 2013 | Baltimore, Md.

- Lawrence P. King and Charles Seligson Workshop on Bankruptcy & Business Reorganization

    Sept. 18-19, 2013 | New York

- abiLIVE Webinar: Complex Requirements and Ethical Duties of Representing Consumer Debtors

     Sept. 24, 2013

- Bankruptcy 2013: Views from the Bench

    Sept. 27, 2013 | Washington, D.C.

October

- Midwestern Bankruptcy Institute Program and Midwestern Consumer Forum

    Oct. 4, 2013 | Kansas City, Mo.

- Professional Development Program

    Oct. 11, 2013 | New York, N.Y.

- Chicago Consumer Bankruptcy Conference

    Oct. 14, 2013 | Chicago, Ill.

- International Insolvency & Restructuring Symposium

    Oct. 25, 2013 | Berlin, Germany

November

- Complex Financial Restructuring Program

   Nov. 7, 2013 | Philadelphia, Pa.

- Corporate Restructuring Competition

   Nov. 7-8, 2013 | Philadelphia, Pa.

- Austin Advanced Consumer Bankruptcy Practice Institute

   Nov. 10-12, 2013 | Austin, Texas

- Detroit Consumer Bankruptcy Conference

   Nov. 11, 2013 | Detroit, Mich.

December

- Winter Leadership Conference

    Dec. 5-7, 2013 | Rancho Palos Verdes, Calif.

- ABI/St. John’s Bankruptcy Mediation Training

    Dec. 8-12, 2013 | New York