Bankruptcy
Georgia Bankruptcy Blog 
Scott Riddle graduated from The University of North Carolina at Chapel Hill with a BSBA in 1987 and received his JD, with honors, in 1991.
Post Frequency: 0.9/day Last Entry: November 07, 2009 at 10:00:14 Recent Entries: 287
By Scott Riddle
Go to Georgia Bankruptcy Blog, find other Bankruptcy blogs, or browse all law blogs.
Search
Posts
Southern District Opinion; Relief From Stay; Single Asset Case
Posted on November 07, 2009Suntrust Bank v. Global One, L.L.C. (In re Global One, L.L.C), 411 B.R. 524 (Bankr. S.D. Ga. July 21, 2009). SunTrust sought relief from stay on the grounds that the value of the real property ($460,000) was far less than the amount of the secured claim ($548,159)...
Middle District Opinion: Relief From Stay To Litigate Employment Claims In District Court
Posted on November 07, 2009In re Coachworks Holdings, Inc., Ch. 11 Case No. 09-51096, 2009 Bankr. LEXIS 3369 (Bankr. M.D. Ga. Oct. 16, 2009). Movant filed a motion for relief to pursue employment claims against the debtor and non-debtor parties. Debtor opposed, contending the claims should be resolved in Bankruptcy Court based primarily on the expense of litigating in District Court...
Chapter 11 Cases Files In October and November 2009
Posted on November 04, 2009Foreclosure Day in Georgia was yesterday, November 4, 2009. Below are the Chapter 11 cases filed over the last few weeks. Case No. Related Case Info Ch Party Info Dates Other Info 09-86091-crm 11 Atlanta Rug Gallery, Inc...
Recent Opinions From The Middle District Of Georgia
Posted on October 09, 2009In re Baugh, Ch. 7 Case No. 07-30838 (Bankr. M.D. Ga. September 17, 2009)(J. Walker). A petition preparer was sanction pursuant to section 110 of the Code. The Court found that the preparer violated the Code by failing to provide her address, her partial social security number, and by providing legal advice to the debtor concerning reaffirmation agreements...
When Are 529 Educational Funds Property Of The Bankruptcy Estate?
Posted on September 24, 2009Section 529 Plans are tax advantaged savings plans intended to encourage saving for future college costs. There are two types of qualified tuition programs: a prepaid tuition plan or a college savings plan They are authorized under Section 529 of the Internal Revenue Code (26 U...
Triad Senior Living Facilities File Chapter 11 Petitions in Northern District Of Georgia
Posted on September 23, 2009Triad Senior Living communities filed several related Chapter 11 cases in the Newnan Division of the Northern District of Georgia. Case No. Related Case Info Ch Party Info Judge Trustee Dates 09-13383-whd 11 Triad at LaGrange I, LLC Drake Filed: 09/22/2009 Entered: 09/22/2009 09-13384-whd 11 Triad at Jeffersonville I, LLC Drake Filed: 09/22/2009 Entered: 09/22/2009 09-13385-whd 11 Triad at Lumber City I, LLC Drake Filed: 09/22/2009 Entered: 09/22/2009 09-13386-whd 11 Triad at Powder Springs I, LLC Drake Filed: 09/22/2009 Entered: 09/22/2009 09-13387-whd 11 Triad at Thomasville I, LLC Drake Filed: 09/22/2009 Entered: 09/22/2009
AJC Article Discusses Spa Sydell Chapter 11 Filing
Posted on September 05, 2009Spa Sydell, the well-known day spa in Atlanta, filed a Chapter 11 bankruptcy petition in Atlanta on September 3, 2009. In re Sydell, Inc., Ch. 11 Case No. 09-83407-crm (click here to download 117 page petition). Not only is Spa Sydell in business at all locations, it has plans to open a seventh location in Roswell...
Two More Georgia Banks Fail: First Coweta Bank, EBank Closed By Regulators
Posted on August 22, 2009Two more Georgia banks were shut down yesterday, making them the 17th and 18th Georgia bank failures in 2009. Ebank, the Vinings-based thrift founded in 1998 as Commerce Bank, was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation (FDIC) was named Receiver...
I Have Been Threatened With A Lawsuit If I Don't Return Money A Customer Paid Before They Filed For Bankruptcy! Do I Have To Give It Back?
Posted on August 22, 2009If you have have had the bad luck to deal with customers or clients who have filed a bankruptcy case, chances are good that you have or will receive a demand letter to return money paid to you by the customer or client in the months leading up to the filing of the bankruptcy case...
Fiduciary Duties Of Officers And Directors Of Failing Companies During "Zone Of Insolvency"
Posted on August 08, 2009As more and more companies seek bankruptcy protection, we may see more bankruptcy cases involving officer and director liability during the "zone of insolvency" preceding the filing. Since most states look to Delaware for guidance on matters of corporate law, it is important to keep up with the significant decisions of Delaware courts...
Protecting IP Rights From A Licensor's Bankruptcy
Posted on August 08, 2009I was recently asked to look into a Chapter 11 case by a company that licensed software to the debtor company. The client had a significant pre-petition debt, and was not being timely paid in the Chapter 11 even though the debtor (a very large technology company) continued to use the software...
Atlanta Journal Articles Discuss Waffle House Franchise Bankruptcy Case
Posted on August 06, 2009Joe Guy Collier of the Atlanta Journal Constitution wrote an article for today's edition about the competing bids for the assets of a Waffle House franchisee that filed a Chapter 11 petition in Nashville. The debtor company, Southeast Waffles, LLC, has proposed a plan whereby the assets would be purchased by a group including professional golfer Phil Mickleson...
Bailey Banks & Biddle Parent Files Chapter 11
Posted on August 06, 2009Finlay Enterprises Inc., the parent company of jewelry retailer Bailey Banks & Biddle, filed their petition in New York yesterday. There are three Bailey Banks & Biddle stores in Atlanta: Lenox Square Mall, Perimeter Mall and Mall of Georgia...
Chapter 11 Cases Filed In Northern District In July - August 2009
Posted on August 05, 2009It was not a particularly heavy month of Chapter 11 filings, through foreclosure day this week, but there were still several new Chapter 11 filings in the last month. Case No...
Security Bank Corp., Based in Macon, Georgia, Is Shut Down By Regulators
Posted on July 25, 2009Security Bank Corp. was shut down yesterday by the Georgia Department of Banking and Finance, and the FDIC. Pinehurst-based State Bank and Trust Co. will assume all of the deposits of Security Bank's six subsidaries and will acquire $2.4 billion of the banks' assets...
Starting To Be Old News In Georgia: FDIC Shuts Down First Piedmont Bank In Winder
Posted on July 18, 2009First Piedmont Bank, based in Winder, Georgia, became the state's 15th bank failure in the last year. Its assets were purchased by Athens-based First American Bank and Trust. A total of four banks nationwide were shuttered on Friday. A total of 58 federally insured banks nationwide have been shut down in 2009...
CIT Preparing For A Chapter 11 Bankruptcy Filing? What Happens To Its Borrowers?
Posted on July 14, 2009Lender CIT has been a business lender for 100 years, and is (at least for now) a Fortune 500 company. It is mainly a lender to small to middle market businesses and according to its website has $60 billion in financing and leasing assets. Lawyers who handle Chapter 11 cases have undoubtedly crossed paths with CIT many times...
11th Cir: Debtor Cannot File Suit Against Trustee Or Professionals In District Court Without Leave Of Bankruptcy Court
Posted on July 11, 2009Lawrence v. Goldberg, et al., 08- 11034 (11th Cir. July 10, 2009) (click here for .pdf opinion). Debtor file suit against the Chapter 7 trustee, professionals employed by the trustee, and creditors in District Court.. The District Court dismissed for lack of subject matter jurisdiction...
Another Developer Files Chapter 11: Lake Burton Development, LLC Files Chapter 11 In Northern District
Posted on July 10, 2009The downward spiral of real estate appears to have taken another developer into Chapter 11. Lake Burton Development, LLC, owned by Killearn, and the developer of Waterfall Country Club and Waterfall at Lake Burton, filed a Chapter 11 petition in the Northern District of Georgia on July 10, 2009...
Ritz Camera/Wolf Camera Give Up On Reorganization And Will Close And Sell All Stores
Posted on July 09, 2009The Atlanta Business Chronicle is reporting that Ritz Camera, which operates as Wolf Camera in many locations (incl. Georgia), is giving up its reorganization efforts and will try to sell all remaining locations. Click here for the article by Barton Eckert...
Chapter 11 Cases Filed In Northern District In June-July 2009
Posted on July 08, 2009Case No. Ch Party Info Dates Other Info 09-74867-whd 11 Thomas Key Grading & Trucking Inc Filed: 06/09/2009 Entered: 06/09/2009 Office: Atlanta Assets: No 09-74936-whd 11 Utopia Trading, Inc...
11th Circuit - Bank To Bank Credit Card Balance Transfers Are Avoidable Preferential Transfers
Posted on June 28, 2009Bank of America, NA v. Mukamai (In re Egidi), No. 08-15958 (June 18, 2009) (click here for .pdf of opinion). The facts were not in dispute. Within 90 days of filing her bankruptcy petition, debtor caused one credit card company to directly transfer a total of $16,065 to Bank of America ("BOA") as part of a balance transfer...
Two More Georgia Banks Seized And Closed On Failure Friday
Posted on June 26, 2009Friday afternoon in Georgia often means a bank gets the final visit from the FDIC. Today, two were shut down. Community Bank of West Georgia, based in Villa Rica, was seized. No buyer was found, so the bank will be closed. Click here for the article in the Atlanta Business Chronicle...
Atlanta Journal-Constitution Article Discusses Fall Of Cornerstone Ministries
Posted on June 24, 2009The Atlanta Journal Constitution has an article today entitled "Cornerstone Ministries betrayed them by straying from mission, investors say," by Christopher Quinn. You can read a little more about the Cornerstone Chapter 11 case by clicking here...
Two More Construction Related Companies File Chapter 11 Petitions In Northern District
Posted on June 23, 2009Brown Steel, LLC and Case Engineered Lumber, Inc. have filed Chapter 11 petitions in the Northern District of Georgia. From the Deal Watch Blog - Brown Steel, based in Newnan, manufactures and fabricates structural and plate steel for commercial and industrial customers...
Southern Community Bank In Fayetteville Becomes 12th Georgia Bank Closed By Regulators
Posted on June 20, 2009Southern Community Bank, based in Fayetteville, Georgia, was closed by the Georgia Department of Banking and Finance and the FDIC on Friday. Its assets were taken over by United Community Bank. It is the 12th Georgia bank failure in less than a year...
Supreme Court To Hear Case About Discharge Of Student Loans In Chapter 13 Plan
Posted on June 17, 2009The United States Supreme Court agreed on Monday to decide whether an individual who owes on a student loan may wipe out a portion of the debt in a bankruptcy without showing that the debt posed an 'undue hardship.' United Student Aid Fund v. Espinosa (08-1134)...
MD Ga - Stay Lifted For Lender To Repossess Vehicle Even Where Non-Debtor Assets That Served As Collateral Had Value In Excess Of Loan
Posted on June 15, 2009In re Campbell, 2009 Bankr. LEXIS 833, Ch. 11 Case No. 08-51832-JDW (Bankr. M.D. Ga. March 25, 2009). Debtor owned a 50% interest in an LLC. The LLC was indebted to the Bank for more than $5.1 million, secured by the LLC's assets and Debtor's assets, and Debtor personally guaranteed the debt...
Silverton Financial Services, Formerly The Bankers Bank, Files Chapter 7 Petition After Being Closed By FDIC
Posted on June 15, 2009Silverton Financial Services, Inc., formerly known as The Bankers Bank, filed a Chapter 7 petition in the Northern District of Georgia on June 5, 2009. The Bank was closed by the FDIC on May 1, 2009. The case number is 09-74623-jem...
Six Flags Amusement Parks Files Chapter 11 Bankruptcy Petition In Delaware
Posted on June 13, 2009From the Wall Street Journal, Six Flags, Inc., which has three parks in metro Atlanta (Six Flags, White Water and American Adventures), has filed a Chapter 11 Bankruptcy petition this morning in the District of Delaware. Click here for the company news release...
Recent Opinions In The Northern And Middle Districts Of Georgia
Posted on June 13, 2009In re Taylor, 2009 Bankr LEXIS, 09-63210-PWB (March 25, 2009). The creditor sought dismissal pursuant to § 521(i)(2) because the debtor failed to file pay advices. Debtor was self-employed, so the Court observed that the pay advice requirement was not applicable because the debtor had no pay advices "from any employer...
Business Bankruptcies Rise 40% In May
Posted on June 07, 2009According to an article in Reuters, business bankruptcy cases rose more than 40% over the same period in 2008. There were 7,514 commercial bankruptcy filings for the month, compared with just 5,354 during the same month a year ago, according to Automated Access to Court Electronic Records (AACER), a database of U...
Most Bankruptcy Cases In 2007 Caused By Medical Bills, Study Finds
Posted on June 06, 2009According to the findings of the American Journal of Medicine, over 60% of consumer bankruptcy cases filed in 2007 were due to medical bills. You can read the report by clicking here. A summary of the results -- Using a conservative definition, 62...
Chapter 11 Cases Filed In Northern District In May And June 2009
Posted on June 03, 2009Chapter 11 filings were up leading up to foreclosure day yesterday. In other posts, I discussed filings by Caraustar and related entities, and MPI/Highlands apartments. In all, over 50 Chapter 11 cases were filed in the Northern District over the last month...
Owners of Highlands Apartments Files Chapter 11 Petitions In Northern District
Posted on June 02, 2009The owners and managers of several related apartment complexes in Norcross, Georgia filed Chapter 11 petitions in the Northern District of Georgia, apparently as a result of the real estate market. The filings were precipitated by the filing of a suit in Fulton County by Regions Bank to appoint a receiver...
Caraustar Industries And Related Companies File Chapter 11 Petitions In Northern District
Posted on June 02, 2009Caraustar Industries, one of the nation's largest manufacturers of recycled paperboard and related products, and related entities, filed Chapter 11 petitions in the Northern District of Georgia yesterday. From the Atlanta Business Chronicle: Caraustar (NASDAQ: CSAR) also reached agreement with debt holders to reduce the company's debt obligations by $135 million...
Another County Faces Loss Of School Accreditation, And Potentially Severe Financial Repurcussions
Posted on May 14, 2009While only indirectly related to Georgia or bankruptcy, it appears another county school system is going down the same road as Clayton County, Georgia. The Burke County Board of Education in neighboring North Carolina has received a notice from Southern Association of Colleges and Schools Council on Accreditation and School Improvement (SACS CASI) (based in Decatur, GA) that its accreditation is at risk...
Atlanta Turnaround Management Association Seminars
Posted on May 12, 2009The Atlanta Turnaround Management Association presents… A Series of Interdisciplinary Educational Programs For Lenders, Attorneys, Turnaround Consultants, Investment Bankers and other Professionals When: June 3, 9, 16 and 23, 2009, from 6:00 to 8:15 p...
Bankruptcy Seminar and Pollard Award Luncheon on May 21, 2009
Posted on May 07, 2009Bankruptcy Seminar and Pollard Award Luncheon honoring Harry W...
Crunch Fitness Files Chapter 11 In New York
Posted on May 06, 2009Crunch Fitness, which has a location on Piedmont Road in Buckhead, filed a Chapter 11 petition in New York today. From Bloomberg - Crunch Fitness, a gym operator with 73,000 members and clubs in six U.S. cities, filed for bankruptcy protection from creditors in New York, citing slowing membership and overpriced leases for some locations...
Chapter 11 Cases Files In May 2009
Posted on May 06, 2009Yesterday was foreclosure day in Georgia, and several new Chapter 11 cases were filed. Here are the cases filed in the last month, through yesterday May 5, 2009. Case No. Ch Party Info Dates 09-11246-whd 11 Jack Benjamin Griffin Filed: 04/06/2009 Entered: 04/06/2009 09-21414-reb 11 MVP Building Group, LLC Filed: 04/06/2009 Entered: 04/06/2009 09-68826-mhm 11 G & T Restaurant, Inc Filed: 04/06/2009 Entered: 04/06/2009 09-68845-jem 11 Seventy Spruce Street, LCC Filed: 04/06/2009 Entered: 04/06/2009 09-69003-crm 11 Ronald Lynn Pearcey Filed: 04/06/2009 Entered: 04/06/2009 09-69020-mhm 11 McGhee Holdings, LLC Filed: 04/06/2009 Entered: 04/06/2009 09-69030-mhm 11 SEC Enterprise, LLC Filed: 04/06/2009 Entered: 04/06/2009 09-69036-jem 11 Vail Group, LLC Filed: 04/06/2009 Entered: 04/06/2009 09-69042-crm 11 First Atlanta, LP Filed: 04/06/2009 Entered: 04/06/2009 09-69049-mhm 11 The Sword Believers, LLC Filed: 04/06/2009 Entered: 04/06/2009 09-21492-reb 11 West Family Restaurant, Inc...
Title Lender TitleMax Files Chapter 11 In Southern District Of Georgia
Posted on April 21, 2009From Deal Watch Blog - TitleMax, one of the largest title-lending companies in the U.S. and a frequent advertiser on Atlanta television stations, filed for bankruptcy in Savannah on Monday...The bankruptcy filing was triggered by the maturity of a $165 million loan from Merrill Lynch Mortgage Capital Inc...
General Growth Properties, Owner Of Four Atlanta Malls, Files Chapter 11 Petition
Posted on April 16, 2009From Reuters, General Growth Properties, which owns Comberland, North Point, Perimeter and Southlake Malls in Metro Atlanta, field a Chapter 11 Bankruptcy petition in the Southern District of New York. General Growth Properties Inc, the second largest U...
ND GA - Court May Consider Reaffirmation Agreement Where Debtor's Attorney Refuses To Provide Certification
Posted on April 10, 2009In In re Goodman, Ch. 7 Case No. 08-41521, 2009 WL 936910 (Bankr.N.D.Ga. Apr 06, 2009), the debtor proposed a reaffirmation agreement with her auto lender. However, although her attorney represented her in the negotiations of the agreement, and continued to represent her in the other matters in the case, the attorney refused to sign the certification 11 U...
Chapter 11 Cases Files In March And April 2009
Posted on April 07, 2009Today is foreclosure day in Georgia, and here are the Chapter 11 filings through today. Case No. Ch Party Info Dates Other Info 09-66184-mhm 11 Greg Holland, Inc...
Omni National Bank Becomes 10th Georgia Bank Failure
Posted on March 27, 2009Omni National Bank was seized by the FDIC today, becoming the tenth Georgia bank failure in the last few months. Click here for NASDAQ announcement. From the Atlanta Business Chronicle - The Federal Deposit Insurance Corp. has taken over as receiver for Atlanta-based Omni National Bank, which was battered by rising losses stemming from souring real estate loans...
Supermarket Chain Bi-Lo Files Chapter 11 In South Carolina
Posted on March 23, 2009Supermarket chain Bi-Lo filed for Chapter 11 bankruptcy relief in the United States Bankruptcy Court, District of South Carolina. According to its website, the chain has several stores in Georgia. From the Associated Press - Details of the credit agreement terms were not immediately available but the company said it has met all the loan's terms so far...
Ninth Georgia Bank Goes Down: FDIC Closes FirstCity Bank In Stockbridge
Posted on March 20, 2009FirstCity Bank in Stockbridge was closed by the FDIC today. It is the ninth Georgia bank closed in the last seven months. Unlike the previous closings, the FDIC did not find a buyer for the Bank. More information is available at the FDIC website...
Record Number Of Georgia Foreclosures Scheduled For April
Posted on March 17, 2009The Atlanta Journal has an article about the record number of foreclosures scheduled for April in Georgia. The foreclosure problem in metro Atlanta appears to be worsening. More than 10,000 lender-owned properties are scheduled to be sold on courthouse steps next month, according to EquityDepot...
Atlanta Bar Association Elections
Posted on March 17, 2009If you are member of the Atlanta Bar Association, you received an email about the upcoming elections (click here for the elections information page). I am a candidate this year for the Members at Large Board of the Atlanta Bar Bankruptcy Section...
Theme Parks Suffering With Economy? Six Flags May Be Filing Chapter 11 Bankruptcy And Ghost Town Already Has
Posted on March 14, 2009Six Flags Theme Parks, which includes Six Flags Over Georgia, Six Flags White Water, and American Adventures parks in the Atlanta area, is experience significant financial difficulties and there is speculation that a Chapter 11 Bankruptcy filing might be in its future...
House Considers Changes To Chapter 11 To Help Major Retailers
Posted on March 12, 2009From the Wall Street Journal Bankruptcy Beat - The House Judiciary Committee's Subcommittee on Commercial and Administrative Law is holding a hearing this afternoon on the collapse of Circuit City and how recent changes to the Bankruptcy Code may be hurting the ability of companies to restructure under court protection...
Ritz Camera To Liquidate Boater's World And Sell 400 Camera Shops
Posted on March 11, 2009As mentioned in this post, Ritz Camera, owner of Wolf Camera, filed a Chapter 11 petition last month. Ritz also owns Boater's World stores, with two locations in Georgia. According to the article, Ritz will liquidate Boater's World Stores and close half of its 800 camera stores...
N.D. Ga. - Judicial Estoppel Not Applied To Claim Not Disclosed In Debtor's Chapter 13 Schedules
Posted on March 06, 2009Another Friday Evening, Another Georgia Bank Failure - Freedom Bank Of Georgia Closed
Posted on March 06, 2009Freedom Bank of Georgia, based in Commerce, became the seventh Georgia bank failure in the last seven months. Its deposit accounts have been transferred to Northeast Georgia Bank. From the FDIC Notice: On March 6, 2009, Freedom Bank of Georgia, Commerce, GA was closed by the Georgia Department of Banking and Finance...
Senator Joe Lieberman Complains About PACER Fees And Personal Data In Court Documents
Posted on March 03, 2009Failed Haven Trust Bank Files Chapter 7 Petition In Northern District of Georgia
Posted on February 24, 2009Haven Trust Bank, which was closed by Georgia Banking and Finance and the FDIC in December 2008, filed a Chapter 7 petition in the Northern District of Georgia yesterday, February 23, 2009. In re Haven Trust Bancorp, Inc., Ch. 7 Case No...
Ritz Camera, Owner Of Wolf Camera and Boaters World, Files Chapter 11 Bankruptcy Petition
Posted on February 23, 2009Ritz Camera, the owner and operator of Boaters World and Wolf Camera, filed a Chapter 11 petition today in Delaware. Ritz bought Wolf in 2001 after Wolf filed a Chapter 11 in 2000. Wolf had previously purchased Fox Photo. Wolf has several stores in Atlanta, and Boaters World has two locations in Georgia...
Redaction Gone Awry - Screw-up Leads To Disclosure Of Clusely Guarded Settlement, And Value Of Facebook
Posted on February 14, 2009This is not Bankruptcy related, but hopefully it will be a good tip for lawyers who try to electronically redact or remove text from documents. For lawyers in states or districts with electronic filing (which includes virtually all Bankruptcy lawyers in Georgia), it is important to know how to properly redact a document in ...
Several More Pure Med Spa Affiliates File Chapter 11 Petitions In Northern District Of Georgia
Posted on February 13, 2009On December 4th, 2008, seven affiliates of Pure Med Spa filed Chapter 11 petitions in the Northern District of Georgia. Click here for information. The cases have been jointly administered with the lead case being Ch. 11 Case No. 08-85038-CRM. Since the initial filing, eight more related entities have filed Chapter 11 petitions, including four more yesterday, February 12, 2009...
Peanut Corporation of America Files Chapter 7 Bankruptcy Petition
Posted on February 13, 2009Georgia based Peanut Corporation of America, which obviously is facing a long list of problems, filed a Chapter 7 Bankruptcy petition in the Western District of Virginia. From Reuters: NEW YORK (Reuters) - Peanut Corporation of America sought bankruptcy protection on Friday after a salmonella outbreak traced to one of its plants led to one of the biggest product recalls in U...
Article Discusses Chapter 11 Case Of Real Estate Exchange Services, Inc.
Posted on February 12, 2009An article in the Atlanta Journal discusses the recent Chapter 11 filing of Real Estate Exchange Services, Inc., Ch. 11 Case No. 08-85871-pwb (filed December 17, 2008). Since the initial filing, Jeffrey K. Kerr, CPA has been appointed Chapter 11 Trustee in the case...
Sixth Annual Emory Law School Bankruptcy Developments Journal Symposium
Posted on February 11, 2009The Emory Law School Bankruptcy Developments Journal will host its Sixth Annual Symposium on March 5, 2009. Click here for more information (though this page is missing the actual date of the seminar) and to register online. The agenda is - 8:50 am - 9:20 am Presentation The Recession and Economic Bailout Speaker: Professor Frederick Tung, Emory University School of Law 9:20 am – 10:50 am Panel Discussion “Hot Topics in Retail Bankruptcy”: The Business Bankruptcy Panel Featured Panelists: Brett Berlin Jones Day Robert LeHane Kelly Drye & Warren LLP Richard NeJame Broadpoint Capital, Inc...
Upcoming Seminar - Bankruptcy Law and Litigation
Posted on February 11, 2009The National Business Institute is sponsoring a seminar on May 13, 2009 on Bankruptcy Law and Litigation (click here for information). I will be speaking on the exciting topic of automatic stay litigation. Other topics and speakers are: GETTING STARTED WITH YOUR BANKRUPTCY CASE 9:00 - 10:00, Paul Burke O'Hearn INTRODUCTION TO THE BANKRUPTCY CODE AND RULES 10:15 - 11:15, Paul Burke O'Hearn AUTOMATIC STAY LITIGATION 11:15 - 12:15, Scott B...
S&K Menswear Files Chapter 11 In Virginia
Posted on February 09, 2009S&K Famous Brands., Inc., doing business as S & K Menswear, filed a Chapter 11 petition today. The company has stores in Georgia and the Southeast. From Reuters: S & K Famous Brands Inc, which operates men's clothing stores mostly in mid-Atlantic states and the Carolinas, filed for Chapter 11 bankruptcy protection on Monday, hurt by sagging sales and the U...
Chapter 11 Filings In Northern District Of Georgia For January 2009
Posted on February 06, 2009Here are the Chapter 11 filings in January, through Foreclosure Day, February 2009. Case No. Related Case Info Ch Party Info Dates 09-10047-whd 11 Middleton Dunn Morehead and Waltraut Caroline Morehead Filed: 01/05/2009 Entered: 01/05/2009 09-20039-reb 11 Habersham Developments, LLC Filed: 01/05/2009 Entered: 01/05/2009 09-60221-pwb 11 Terrance Demond Beasley Filed: 01/05/2009 Entered: 01/05/2009 09-60245-jb 11 Loring Road Venture, Inc...
Seventh Georgia Bank Fails - FirstBank Financial Services Seized By FDIC, Taken Over By Regions Bank
Posted on February 06, 2009McDonough-based FirstBank Financial Services was seized by the Federal Deposit Insurance Corp. today, and the bank was taken over by Regions Bank. From the Atlanta Business Chronicle: Walt Moeling, Bryan Cave Powell Goldstein LLP banking attorney and counsel for the bank, said the failure was due to a combination of market forces and over-concentration in residential real estate lending...
Atlanta Based Spectrum Brands Files Chapter 11 In Texas
Posted on February 04, 2009Spectrum Brands, Inc., the Atlanta-based manufacturer of Ray-o-vac, Remington, Spectracide, Cutter, Repel and other well-known brands, has filed a Chapter 11 petition in the Western District of Texas. Click here for the company's press release: ATLANTA--(BUSINESS WIRE)--Spectrum Brands (PINK SHEETS: SPCB - News) today announced that it has reached agreements with noteholders representing, in the aggregate, approximately 70% of the face value of its outstanding bonds, to pursue a refinancing that, if implemented as proposed, will significantly reduce the Company's outstanding debt and put the Company in a stronger financial position for the future...
Wall Street Journal Launches Bankruptcy Blog
Posted on February 03, 2009The Wall Street Journal has launched the Bankruptcy Beat, which you can access by clicking here. This Blog joins other related blogs by the Journal, including the WSJ Law Blog, The Wallet, a personal finance blog, and Deal Journal. In a recent post, the Bankruptcy Beat discusses the Chapter 7 case of Georgia School Superintendent Kathy Cox (discussed here and here)...
Financial Planning And Money Management From A Biblical Perspective
Posted on February 03, 2009For those of you who are interested in what the Bible has to say about personal finances, North Point Community Church and Buckhead Church , and Pastor Andy Stanley, have a current series entitled Balanced. They have also created a website for more information...
Chapter 7 Trustee Investigates Whether Georgia School Superintendent's Game Show Winnings Are Property Of Bankruptcy Estate
Posted on January 30, 2009As discussed in this prior post, Georgia School Superintendent Kathy Cox and her husband filed a Chapter 7 Bankruptcy petition in the Newnan Division of the Northern District of Georgia. In re John Hamilton Cox, Jr. and Kathryn Burgess Cox, Ch. 7 Case No...
Lawyers Can Now Take Camera Phones In Federal Courthouses In Northern District Of Georgia
Posted on January 28, 2009The options for phones and Blackberries has expanded for lawyers in the Northern District. The ban on camera phones has been lifted. Getting the new iPhone is not completely pain free, however, because lawyers must be admitted to the Bar of the Northern District and get an ID card...
Wanted: Two New Bankruptcy Judges For The Northern District Of Georgia
Posted on January 21, 2009The Atlanta Business Chronicle has an article discussing the need for two additional Bankruptcy Judges in the Northern District of Georgia - For the second year in a row, bankruptcies jumped more than 20 percent in 2008. Filings climbed to 39,214, up 25 percent over 2007...
Circuit City Decides To Liquidate And Close All Stores; Future Not Bright For Other Retailers
Posted on January 18, 2009Circuit City, which filed Chapter 11 in November 2008 and closed several stores, gave up the fight this week and announced it would liquidate and close. It could not find a lender or buyer and had no choice. This will be a common theme according to the Washington Post article: With the economy in the tank, companies are doing all they can to stay afloat...
Nortel Networks FIles Chapter 11 In Delaware
Posted on January 14, 2009From Reuters: Nortel Networks, the maker of telephone equipment, filed for bankruptcy protection on Wednesday, a day before it was scheduled to make an interest payment of about $107 million. Nortel and a number of its affiliates filed for Chapter 11 bankruptcy protection in federal bankruptcy court in Delaware...
Goody's, Already Liquidating, Files Chapter 11 Again
Posted on January 14, 2009Discount Clothing Retailer Goody's Family Clothing decided last week to liquidate and close its remaining stores, after emerging from Chapter 11 only a few months earlier. Now it has filed Chapter 11 again. From Reuters - Goody's LLC, a privately held family apparel retailer that emerged from bankruptcy in October, has filed for Chapter 11 protection again, and said it plans to liquidate its remaining 282 stores...
Record Number Of Atlanta Foreclosures Scheduled For February 2009
Posted on January 13, 2009According to the AJC article, Equity Depot reports that a record number of foreclosures are scheduled for February 2009. In the 13 counties Equity Depot tracks, 8,425 properties are scheduled to be auctioned Feb. 3. The previous high was 7,967 properties from last September...
Shane Company, A Jewelry Retailer With Atlanta Area Locations, Files Chapter 11 - Most Creditors Are Customers
Posted on January 12, 2009Shane Company, a jewelry retailer with four locations around Atlanta according to its website, filed a Chapter 11 petition in the U.S. Bankruptcy Court for the District of Colorado. Chapter 11 Case No. 09-10367. Hear the announcement from Tom Shane himself...
Wall Street Journal - Carl Icahn Believes Exclusivity Period In Bankruptcy Thwarts Recovery
Posted on January 11, 2009Carl C. Icahn has an article in the Wall Street Journal entitled Bankruptcy Rules Thwart the Recovery. Here are a few excerpts - The epic financial crisis afflicting the banking industry over the past 18 months is largely the result of cratering loan and other asset values stuck on bank balance sheets...
Key Delaware Corporate Decisions of 2008
Posted on January 11, 2009Francis G.X. Pileggi, Esq. has compiled a summary of key corporate and commercial decisions in Delaware for the year 2008. You can view the summary (as well as links to key decisions of prior years) by going to his Delaware Corporate and Commercial Litigation Blog...
11th Cir. - Trustee Can't Avoid Security Deed When BFP On Inquiry Notice Prior To 90-Day Reachback
Posted on January 11, 2009Watts, Ch. 7 Trustee v. Argent Mortgage Company, LLC, No. 07-14615, 2008 WL 5257157 (11th Cir. December 18, 2008). The facts are as follows: On July 8, 2004, debtor Santrice Hunt purchased a house from Bellwood Homes. At closing, Bellwood gave her a warranty deed to the property, and she, in turn, executed and gave Argent two notes and two security deeds...
Atlanta Business Chronicle: Georgia Bank Failures Could Reach One A Month In 2009?
Posted on January 10, 2009Joe Rauch of the Atlanta Business Chronicle has an article in the current edition entitled Bank Failures Could Reach One A Week. 2008 ranked as one of the worst years for Georgia banking since the Great Depression. 2009 may become the worst ever...
Chapter 11 Filings In Northern District Of Georgia For December 2008 - January 2009
Posted on January 07, 2009Chapter 11 Filings in the Northern District of Georgia for the last half of December 2008 and through Foreclosure Day, January 2009. Case No. Related Case Info Ch Party Info Dates Other Info 08-85718-reb 11 EDC, INC...
Wall Street Journal Wealth Blog Discusses Country Club Crashes, References Georgia Bankruptcy Blog
Posted on January 07, 2009The Wall Street Journal Wealth Blog has a post today entitled The Country Club Crash. The post discusses the problems country clubs are having in these economic times, and the article references the posts here about Gold Creek Golf Club and Cherokee Run Club...
Former Clayton County Sheriff Victor Hill Files Chapter 7 Bankruptcy Petition
Posted on January 01, 2009Former Clayton County Sheriff Victor Hill, whose term ended on December 31, 2008, filed a Chapter 7 bankruptcy petition on Tuesday. In re Victor Hill, Ch. 7 Case No. 08-86567-crm (filed Dec. 30, 2008) (download petition here). Click here for Fox5 Atlanta report...
Another Georgia Bank Seized: Duluth-Based Haven Trust Bank
Posted on December 13, 2008From the Atlanta Business Chronicle, "Duluth-based Haven Trust Bank was seized by state and federal bank regulators late Friday, as the fifth failure in Georgia this year and the second in as many weeks. Winston-Salem, N.C.-based BB&T Corp...
District Court: Bankruptcy Court Must Appoint Examiner If Requirements Of §1104(c)(2) Are Established
Posted on December 12, 2008The District Court held that the language of 11 U.S.C. §1102 requires the appointment of an Examiner if certain facts are established. The Bankruptcy Court's Order denying the US Trustee's Motion to Appoint an Examiner was reversed...
Atlanta And North Georgia Housing Market Hitting "Depression" Level?
Posted on December 11, 2008Kevin Duffy of the Atlanta Journal discusses the North Georgia and Atlanta housing market. See Experts: North Georgia housing market in depression; Banks starting to turn against builders, lawmakers told at hearing. The housing market is so bad that some banks and builders that had been business partners are now adversaries, and experts are using the dreaded “D” word...
Retailer KB Toys, With Several Georgia Locations, Files Chapter 11 In Delaware After Drop In Sales
Posted on December 11, 2008Update: KB Toys to close and quickly liquidate for the Christmas rush, according to a Court filing and this Wall Street Journal article: The company plans to quickly start going-out-of-business sales at hundreds of its stores, "in order to take advantage of the last two weeks of the holiday selling season," KB Toys said in a filing with the U...
Tribune Company Files Chapter 11 Bankruptcy Petition In Delaware
Posted on December 08, 2008From the Wall Street Journal - Tribune Co. filed for bankruptcy protection Monday, in a sign of worsening trouble for the newspaper industry. In recent days, as Chicago-based Tribune continued talks with lenders to restructure its debt, the newspaper-and-television concern hired investment bank Lazard Ltd...
Early Registration Open For Southeastern Bankruptcy Law Institute
Posted on December 07, 2008Join more than 500 attorneys from the Southeast and across the country for the SBLI's 35th Annual Seminar on Bankruptcy Law and Rules. APRIL 23 – 25, 2009 The Economy at Sea: New Rules of Engagement Featuring Consumer Toolbox and Breakout Sessions LEADING EXPERTS – This nationally recognized seminar brings the nation's bankruptcy experts, including judges, professors and practicing attorneys together to help you and thereby your clients navigate the Bankruptcy Laws...
Bankruptcy Court Pleadings Show How Michael Vick Spent Millions Of Dollars
Posted on December 07, 2008Alan Judd at the Atlanta Journal has an article about Michael Vick's spending in the time leading up to his imprisonment, including millions of dollars transferred just before his incarceration. This information was contained in pleadings filed in his Bankruptcy case...
WSB TV And Radio Financial Advisor Mike Kavanaugh Passes Away
Posted on December 07, 2008Mike Kavanaugh, a financial advisor and radio show host on WSB, passed away of a heart attack. From WSB WSB Radio) - News/Talk 750 WSB mourns the death of Money Matters Radio Talk Show host Mike Kavanagh. His passing was sudden and unexpected. He suffered a heart attack in his suburban Atlanta home Saturday...
A Favorite Shop Of "Real Housewives Of Atlanta" Files Chapter 11 In Atlanta
Posted on December 06, 2008Blue Genes, a retail fashion store at Lenox, has filed a Chapter 11 petition in the Northern District of Georgia. In re Blue Genes, Inc., Ch. 11 Case No. 08-84980 (filed December 3, 2008). Apparently, this is a favorite of a group of people known as the "Real Housewives of Atlanta which, according to news reports might be experiencing other financial difficulties (see "Real Housewife NeNe Evicted From Big Home")...
Freddie Mac And Fannie Mae Four Loan Limit - Will It Chill Foreclosure Buying And Real Estate Market
Posted on December 05, 2008From the AJC, many people believe that imposing a four loan limit on Freddie Mac and Fannie Mae mortgages will lead to fewer buyers of foreclosed properties and an extension of the recession. See Freddie Mac Bulletin. Real estate investors decry four-loan limit; New rule restricts number of loans backed by Fannie Mae, Freddie Mac, by D...
FDIC Seizes First Georgia Community Bank
Posted on December 05, 2008From the Atlanta Business Chronicle, the Federal Deposit Insurance Corp. (FDIC) seized the assets of First Georgia Community Bank late today. See the FDIC Release by clicking here. Zebulon, Ga.-based United Bank will assume all of the deposits of Jackson, Ga...
Pure Med Spa Files Chapter 11 Petitions In Northern District Of Georgia
Posted on December 05, 2008Pure Med Spa has filed Chapter 11 bankruptcy petitions in the Northern District of Georgia. The filing entities are below. According to its website, Pure Med Spa "is a leading international provider of laser aesthetics, skin rejuvenation and anti-aging solutions such as Botox®, Restylane™ and Laser Hair Removal...
Final Nail Is In The Coffin At Tweeter - They Abruptly Close And Convert To Chapter 7
Posted on December 04, 2008Tweeter Home Entertainment, the parent of HiFi Buys (which had several locations in Atlanta), first filed a Chapter 11 petition in June 2007 (click here). It was bought by an investment firm and operated as Tweeter Opco, LLC, but that entity filed another Chapter 11 in November 2008 (click here)...
Bally Total Fitness Files Chapter 11 (Again) In New York And Seeks Buyer
Posted on December 03, 2008Bally Total Fitness has filed Chapter 11 for the second time in a little over a year. The website lists eight clubs in Metro Atlanta. From Reuters: NEW YORK, Dec 3 (Reuters) - Bally Total Fitness Holding Corp, which operates 347 health clubs serving more than 3...
11th Circuit En Banc Reverses Panel : 11 U.S.C. §303 Is Not Subject Matter Jurisdictional And Can Be Waived
Posted on December 03, 2008Trusted Net Media Holdings, LLC v. The Morrison Agency, Inc. (In re Trusted Net Media Holdings, LLC), No. 07-13429 (11th Cir. Dec. 2008) (click here for .pdf opinion). The issue in this case is "whether the requirements in 11 U.S.C. § 303(b) for commencing an involuntary bankruptcy petition are elements of subject matter jurisdiction...
NASCAR Could Be Victim Of Financial Problems Of Big Three Automakers
Posted on December 02, 2008I have not commented much on the possible Bankruptcies of the Big Three Automakers, simply because articles can be found every day, but Fox News has an article on the financial hit NASCAR will take. Since NASCAR is a major presence in the South, and in recent years, nationwide, it could ave a huge trickle down impact on jobs...
Recent Chapter 11 Cases In Northern District Of Georgia
Posted on December 02, 2008As foreclosure day is today, here are the recent Chapter 11 cases filed in the Northern District of Georgia. Yesterday was a relatively light day for the day before foreclosure, with only five cases filed. I will update with any cases filed later today...
Poultry Producer Pilgrim's Pride, Parent Of Atlanta-Based Goldkist, Files Chapter 11 In N.D. Texas
Posted on December 01, 2008From the Atlanta Business Chronicle - Chicken processor Pilgrim’s Pride Corp., which in 2007 acquired Atlanta-based Gold Kist Inc., confirmed Monday it has filed a voluntary petition for Chapter 11 bankruptcy protection. The filing, which was made in the U...
Cherokee Run Country Club, Host Of 1996 Olympic Events, Files Chapter 11 In Northern District
Posted on November 26, 2008Cherokee Run Country Club in Conyers, Rockdale County, filed a Chapter 11 petition in the Northern District of Georgia on November 25, 2008. In re Cherokee Run Country Club, Inc., Ch. 11 Case No. 08-84120-jb (click here for petition). Estimated assets and liabilities are listed as $1 to 10 million...
As Retailers Go Bankrupt, Discounters Moving In On Atlanta
Posted on November 25, 2008Retailers Circuit City, Goody's, Whitehall Jewelers, Linens N' Things are either gone already, or will be soon. According to data from CoStar Group Inc. and DJM Realty LLC, those stores combined take up space larger than Cumberland Mall...
Report: Bankrupt Companies More Likely To Face SEC Enforcement Action For Financial Statement Fraud
Posted on November 24, 2008From Marketwatch: Deloitte Forensic Center Study Highlights Correlation Between Bankruptcy and Fraud: Companies Filing for Bankruptcy More Likely to Face SEC Enforcement Related to Fraud According to a new study published by the Deloitte Forensic Center, "Ten Things About Bankruptcy and Fraud," companies filing for bankruptcy protection are three times more likely than non-bankrupt companies to face enforcement action by the Securities and Exchange Commission relating to alleged financial statement fraud...
Add CitiGroup To The Government Bailout List?
Posted on November 24, 2008From the Wall Street Journal (sub req'd): The federal government agreed Sunday night to rescue Citigroup Inc. by helping to absorb potentially hundreds of billions of dollars in losses on toxic assets on its balance sheet and injecting fresh capital into the troubled financial giant...
Fine China Manufacturer Lenox Group Files Chapter 11 Petition
Posted on November 24, 2008Another well-known business feels the crunch. Fine China and collectible manufacturer Lenox Group, Inc. filed a Chapter 11 petition in the Southern District of New York. From Yahoo (AP): The Eden Prairie, Minn., company will continue to conduct "business as usual," Chief Executive Marc Pfefferle said in a statement...
Georgia School Superintendent Kathy Cox Files Chapter 7 Bankruptcy Petition In Northern District
Posted on November 22, 2008Just two months after she won, and gave away, $1 million dollars from the TV game show Are You Smarter Than A Fifth Grader (click here), Georgia School Superintendent Kathy Cox and her husband filed a Chapter 7 Bankruptcy petition in the Newnan Division of the Northern District of Georgia...
Twitter And Facebook Page For Georgia Bankruptcy Law
Posted on November 22, 2008I am trying to keep up with new media, and finding that many lawyers and other professionals are using Facebook and Twitter for keeping up with new developments and keeping in touch. I just created a Georgia Bankruptcy Law group on Facebook, which you can access by clicking here...
Directors Quitting As Firms Flounder
Posted on November 22, 2008The Wall Steet Journal has an article about directors quitting as many corporations are experiencing financial troubles, or failing altogether. See As Firms Flounder, Directors Quit by Joann S. Lublin (sub. required). These high-profile executives find it hard to handle the heavy board workload for a company in crisis...
Community Bank Of Loganville Seized By FDIC, Assets Go To Bank Of Essex
Posted on November 22, 2008The Community Bank of Loganville was seized by the Federal Deposit Insurance Corporation yesterday. See the FDIC notice here. From the Atlanta Business Chronicle: The Bank of Essex in Tappahannock, Va., will assume all of the bank's $611 million in total deposits...
Liquidation Company Buys Assets of Bankrupt Retailer, Then Files Its Own Bankruptcy Petition
Posted on November 21, 2008From the Detroit Free Press: BH S&B Holdings, an entity formed to buy bankrupt retailer Steve & Barry's LLC out of bankruptcy for $163 million, sought court protection itself, citing the deteriorating U.S. economy. BH S&B Holdings, created by hedge funds and former owners of Steve & Barry's, filed for bankruptcy protection today in Manhattan federal court...
Statistics For Bankruptcy Filings In Northern District: Numbers Going Up.
Posted on November 21, 2008I took a look at the most recent bankruptcy statistics for the Northern District of Georgia, which you can find by clicking here. Not surprisingly, the numbers are going up. In October 2008, 4,109 cases were filed in the district. That is an increase of forty percent over October 2007 (2,884 cases)...
Another Wine Shop Joins The Grape In Chapter 11
Posted on November 21, 2008The economy seems to have hit the retail wine business. Several days ago, The Grape filed Chapter 11 petitions in the Northern District. Yesterday, it was Wine for the Times, located in Cumming, filing in the Gainesville division. In re Wine for the Times, LLC, Ch...
Fannie Mae And Freddie Mac Halt Foreclosures For Holidays
Posted on November 21, 2008From Fannie Mae Press Release and USA Today: Mortgage giants Freddie Mac and Fannie Mae will suspend foreclosures and evictions for owners of occupied homes through the holidays — the latest effort to keep people in their houses. Freddie and Fannie, which were seized by the government in September, announced Thursday that they will contact an estimated 16,000 borrowers who are facing foreclosure or evictions between Wednesday and Jan...
Bill Introduced In Congress Which Would Allow Bankruptcy Judges To Modify Home Mortgages
Posted on November 19, 2008Obviously, everyone saw this coming after the election, but Illinois Democrat Senator Richard Durbin has not even waited for the run-off elections to be decided or a new Congress seated in January. He introduced a bill that would allow Bankruptcy Judges to modify home mortgages...
Vubotics, Inc. Files Chapter 11 Petition In Northern District
Posted on November 19, 2008Vubotics, Inc., (FDBA Halifax International, Inc.; FDBA Christopher Partners, Inc.), filed a Chapter 11 petition in the Northern District of Georgia on November 18, 2008. Ch. 11 Case No. 08-83616-jb (click here for petition). (Google Finance, Yahoo Finance)...
General Motors Begs For Support Of Government Bailout To Avoid Bankruptcy
Posted on November 18, 2008It looks like GM really wants the government bailout and is going as far as begging its customers for support. Dear [GM Customer], You made the right choice when you put your confidence in General Motors, and we appreciate your past support...
Westminster Ceramics, LLC FIles Chapter 11 In Northern District Of Georgia, Will Liquidate
Posted on November 15, 2008Westminster Ceramics, LLC, (dba "BananAppeal" and "Innercore"), based in Stone Mountain, filed a Chapter 11 petition in the Northern District of Georgia on November 14, 2008. In re Westminster Ceramics, LLC, Ch. 11 Case No. 08-83408 (Bankr...
Land Resource, LLC, Developer At Cumberland Island, Files Chapter 11 In Florida
Posted on November 15, 2008Land Resource, LLC, and related entities filed Chapter 11 Petitions in the Middle District of Florida on October 30, 2008. See bottom of post for case information. A description of the entities and facts can be found in the Declaration in Support of First Day Pleadings by J...
Michael Vick's House And Other Property For Sale Under Bankruptcy Plan
Posted on November 14, 2008Former Atlanta Falcons Quarterback, and current resident of a federal prison, Michael Vick is selling his house in Sugarloaf in Gwinnett County. See the Deal Watch Blog for the report. The disclosure statement and plan of reorganization filed with the Bankruptcy Court also assume that creditors will be paid, at least in part, by Vick's future earnings in the National Football League...
Introsul, Inc., Designer And Installer Of Bathrooms And Fixtures For Hotel Industry, Files Chapter 11 Petition In Middle DistrictOf Georgia
Posted on November 14, 2008Introsul, Inc., which according to its website offers "innovative solutions in bathroom design and installation to make life better for innkeepers and their guests all over North America," filed a Chapter 11 petition in the Middle District of Georgia on November 11, 2008...
US News & World Report: More Bankruptcies Coming
Posted on November 13, 2008Rick Newman at U.S. News and World Report believes that more big bankruptcies are coming - Here Comes a Bankruptcy Boom. So far in 2008, there have been a few name-brand bankruptcies—like the recent Circuit City filing, Linens-n-Things, Frontier Airlines, and Mrs...
Delaware Bankruptcy Courts Are Busy - ECF Website Crashes For Several Days
Posted on November 13, 2008From Bloomberg - Nov. 13 (Bloomberg) -- Web site failures at one of the busiest bankruptcy courts in the U.S. have forced attorneys to return to the oldest tool in their arsenal: paper. The Web site used to view cases in the U.S. Bankruptcy Court in Delaware was shut down for nearly three days...
General Growth Properties, Owner Of Several Atlanta Malls, May Seek Bankruptcy Protection
Posted on November 13, 2008From the Atlanta Business Chronicle: General Growth Properties Inc., which owns Cumberland Mall, Perimeter Mall, North Point Mall, Southlake Mall in metro Atlanta, said it may be forced to seek protection from its creditors as it struggles to refinance debt...
Amended Bankruptcy Rules And Forms Effective December 1, 2008
Posted on November 12, 2008NOTICE 1. Regarding new and amended Federal Rules of Bankruptcy Procedure that are effective December 1, 2008. Click HERE for a copy of this notice. Click HERE to see related General Order No. 9-2008. 2. Regarding new and amended Bankruptcy forms that are effective December 1, 2008...
What Would Happen If General Motors Was Not Bailed Out By Congress, And Instead Filed Chapter 11?
Posted on November 12, 2008A new article in Business Week discusses the fate of GM: The Threat of Bankruptcy GM's senior management, business experts, and some members of Congress think letting the automaker go Chapter 11 would be a disaster. Bankruptcy lawyers say the automaker could benefit from a prepackaged bankruptcy, which would be a reorganization that is worked out among the automaker's creditors before the case ever gets to a bankruptcy court judge...
"Bloodbath" Coming To Buckhead Because Of Overbuilding?
Posted on November 12, 2008An article in the Atlanta Journal discusses the current real estate market in Atlanta, specifically Buckhead, and some people believe a crash is imminent. See Atlanta a poor choice for real estate investment, report says; City is overbuilt, ‘bloodbath coming’ in construction-crazy Buckhead, Urban Land Institute says, by Kevin Duffy...
Middle District Changes To ECF Definitions
Posted on November 12, 2008From the Middle District of Georgia Clerk of the Bankruptcy Court - CMECF DICTIONARY CHANGES EFFECTIVE NOVEMBER 24, 2008 Motion to Release Unclaimed Funds: This is a new event in the motions category. Trustee’s Response: This was formerly called “Trustee’s Approval/Objection Letter...
Upcoming CLE: Bankruptcy And Commercial Law Year In Review
Posted on November 10, 2008Bankruptcy and Commercial Law Year in Review The Section's Most Popular, Useful and Informative Seminar! Tuesday, December 9, 2008 9:00 am - 3:30 pm The Capital City Club - Downtown 7 Harris Street (at Peachtree Street) 5 CLE Hours Faculty: Hon...
Circuit City Files Chapter 11 Petition
Posted on November 10, 2008It is certainly not a surprise that Circuit City filed a Chapter 11 petition in the Eastern District of Virginia. See the press release here. Last week the company announced it was closing many stories, and pulling out of Atlanta entirely. According to this article, the company hired Skadden Arps a few weeks ago.
More Chapter 11 Filings: The Grape Files Chapter 11 In Northern District
Posted on November 06, 2008The Grape wine bar and shop, with locations in Atlanta and Florida, filed Chapter 11 petitions in the Northern District today. The cases are: Case No. Ch Party Info 08-82818-reb 11 The Grape Enterprise Group, Inc...
Recent Chapter 11 Filings For Northern District
Posted on November 04, 2008Here are most of the Chapter 11 filings since the last update in early October. It appears as though fewer cases were filed in the days leading up to foreclosure day (today). Case No. Related Case Info Party Info Date Filed 08-80235-mhm Letap Management, LLC Filed: 10/07/2008 Entered: 10/07/2008 08-80248-reb American Synthol, Inc...
Atlanta Journal - Chapter 11 Filings In Northern District Increase
Posted on November 01, 2008From the Atlanta Journal, an article entitled North Georgia Bankruptcy Filings Surge by Margaret Newkirk. Chapter 11 filings are up between 50 percent and 70 percent over all of last year, depending on how they’re counted. They’re also up significantly from any of the past 20 years —- and there are almost 10 weeks left in 2008...
Did 2005 Amendments To Bankruptcy Code Lead To Failures Of Financial Institutions?
Posted on November 01, 2008An article in the Financial Times entitled Wall Street ‘Made Rod For Own Back’, by Francesco Guerrera, Nicole Bullock and Julie MacIntosh, discusses the 2005 amendments ("BAPCPA") and its (unintended) consequences: Wall Street unwittingly created one of the catalysts for the collapse of Bear Stearns, Lehman Brothers and American International Group by backing new bankruptcy rules that were aimed at insulating banks from the failure of a big client, lawyers and bankers say...
Integrity Bank Files Chapter 7 In Northern District Of Georgia
Posted on November 01, 2008Integrity Bank, seized by federal regulators on August 29, 2008 (read here and here), filed a Chapter 7 Bankruptcy petition on October 10, 2008. In re Integrity Bankshares, Inc., Ch. 7 Case No. 08-80512-pwb (October 10, 2008). Robert M...
Recent Articles Of Interest
Posted on November 01, 2008I am catching up after a trip to Spain, and the Atlanta Business Chronicle has several articles of interest in recent issues that are related to bankruptcy or the econonomic downturn. Legal Eagles Swooping in on Foreclosure Work. Banks Face Environmental Fines from Foreclosed Subdivisions...
MD Ga - Oversecured Creditor Entitled To Post-Petition Attorneys Fees Notwithstanding Failure To Comply With O.C.G.A. § 13-1-11
Posted on October 29, 2008JP Morgan Chase Bank v. ELL 11, LLC, No. 7:07-CV-158-HL, 2008 WL 4682263 (M.D. Ga. October 21, 2008). The issue before the Court is -- This case presents the question of whether after the filing of a debtor's Chapter 11 petition, an oversecured creditor is entitled to attorney fees actually incurred post-petition when the creditor failed to comply with the notice requirements of O...
American Synthol Files Chapter 11 In Northern District
Posted on October 09, 2008Lubricant manufacturer American Synthol filed a Chapter 11 petition in the Northern District of Georgia, Ch. 11 Case No. 08-80248. Parker, Hudson, Rainer & Dobbs partner Rufus T. Dorsey IV and associate Tyronia Morrison represent the company, which makes lubricants under the Amerilube brand and private brands...
Chapter 11 Filings In Northern District Of Georgia, October 2008
Posted on October 07, 2008Today is foreclosure day in Georgia, and as usual, several Chapter 11 cases were filed in the last few days. Also as usual, it is no surprise that many are real estate related (well ... it is foreclosure day). The Chapter 11 cases include the following: Case No...
AtheroGenics Consents to Relief, Moves To Convert To Chapter 11
Posted on October 07, 2008After an involuntary Chapter 7 petition was filed against it in the Northern District of Georgia, AtheroGenics has consented to relief and yesterday filed a Motion to convert to Chapter 11. From Market Watch - During the bankruptcy proceedings, AtheroGenics expects to sell the Company and/or its key assets...
Catalyst Natural Gas Files Chapter 11 Bankruptcy Petition In Northern District
Posted on October 04, 2008Gas Marketer Catalyst Natural Gas, and related companies, filed Chapter 11 petitions in the Northern District of Georgia on October 1, 2008. In re Catalyst Natural Gas, LLC, Ch. 11 Case No. 08-79390, In re Catalyst Energy Group, Inc., Ch. 11 Case No...
Atlanta Business Chronicle - Robert Harris Homes Expected To FIle Bankruptcy Soon; Other Builders Facing Problems
Posted on October 01, 2008The Atlanta Business Chronicle has an article in the latest edition entitled "Home builder Expected to Liquidate." Robert Harris Homes Inc. in Woodstock, which ranked as metro Atlanta’s 19th-largest home builder according to Atlanta Business Chronicle’s 2007-2008 Book of Lists, closed its doors in July and is making “an orderly wind-down to a liquidation,” said attorney L...
Dan Rather Reports, On HDNET, Reports On Foreclosures In Georgia
Posted on October 01, 2008If you have DirecTV or another provider that carries HDNet, this week's edition of Dan Rather Reports is about foreclosures in Georgia. The episode is "Dirty Money Down South," and will be on several times in the next week. I recorded it, but have not yet watched it...
Wall Street Journal - Court Orders Credit Bureaus To Remove Discharged Debt
Posted on September 30, 2008Today's online edition of the Wall Street Journal has an article entitled "Dealing With Debt That Refuses To Die" (free now, but might require sub later). The problem: Old debts, which are typically forgiven by the courts in a bankruptcy filing, are still being reported as active on many consumers' credit reports...
Atlanta Business Chronicle Highlights Atlanta Bar Association's Reaffirmation Project
Posted on September 30, 2008This week's (Sep. 26th) edition of the Atlanta Business Chronicle has a very good article about the Reaffirmation Project started by the Atlanta Bar Association. Unfortunately, the articles does not appear to be online so I cannot provide a link, but it appears on page 11D of the Law and Accounting section of the print edition...
Bill Heard Chevrolet Files Chapter 11 Bankruptcy In Northern District Of Alabama
Posted on September 29, 2008On September 28, 2008, Bill Heard Chevrolet filed Chapter 11 Bankruptcy in the United States Bankruptcy Court for the Northern District of Alabama. As discussed in this prior post, the dealership closed its locations last week. Bill Heard is represented in the cases by Derek Meek and Mark Solomon of the Birmingham office of Burr Forman...
11th Cir. - Secured Creditor May Still Pursue Deficiency After Surrender of "910 Vehicle"
Posted on September 29, 2008In re Barrett, Nos. 07-14796, 07-14797 (11th Cir. Sep. 29, 2008) (download opinion here). The issue raised on appeal concerned a pure question of law: "whether a Chapter 13 debtor’s surrender of a “910 vehicle” (i.e., a vehicle purchased for personal use within 910 days before filing for bankruptcy) fully satisfies a creditor’s claim secured by the vehicle and prevents the creditor from filing an unsecured claim for any remaining deficiency...
Creative Loafing Parent Files For Chapter 11
Posted on September 29, 2008The parent of Creative Loafing, the alternative newspaper/magazine, filed a Chapter 11 petition today. From the company - September 29, 2008 at 1:11 pm by John F. Sugg in Inside CL, News Creative Loafing Inc. — which owns alternative weekly newspapers in Chicago, Washington, Tampa, Charlotte and Sarasota, as well as Atlanta — today filed for bankruptcy protection...
Citi Group To Buy Wachovia With Federal Aid
Posted on September 29, 2008The FDIC reported this news just a few minutes ago, for $1.00 a share. That is One Dollar. It traded at $10-12 per share last week. (Google Finance WB). The banking landscape continues to change quickly, and it is moving further south...
More Eateries File Chapter 11: Fox & Hound, Hand In Hand
Posted on September 28, 2008Two related neighborhood pubs filed Chapter 11 petitions. Fox & Hounds, which is located on Collier Road in Atlanta, filed on September 27, 2008. In re Fox & Hounds, Inc., 08-79021-pwb (filed September 27, 2008). A related company, Derek Lawford Ventures, which operates Hand in Hand pub on N...
Wachovia Is Next In Line To Be Purchased?
Posted on September 27, 2008Wachovia Bank looks to be the next takeover target in the financial industry. The latest reports have Wachovia and Citi discussing a deal, but Wells Fargo is apparently still in the mix, as is Spain bank Banco Santander according to the NY Times post...
Whats Left Of Washington Mutual Files Chapter 11 Bankruptcy
Posted on September 27, 2008After its bank assets were seized by the FDIC and sold to J.P. Morgan Chase two days ago, Washington Mutual, Inc., the holding company, filed a Chapter 11 petition in Bankruptcy Court in Delaware. Sept. 27 (Bloomberg) -- Washington Mutual Inc...
FDIC Issues Cease And Desist Order To Chestatee State Bank
Posted on September 27, 2008From the Atlanta Business Chronicle, the FDIC has issued a cease and desist order against Chestatee State Bank. The Bank is NOT closed, but does have to address the issues raised in the Order. The Federal Deposit Insurance Corp. disclosed Friday it issued on Aug...
Biggest Bank Failure In U.S. History: Washington Mutual Siezed Last Night And Sold To J.P. Morgan Chase
Posted on September 26, 2008In the biggest bank failure in U.S. History, Washington Mutual (note the website has already been changed) was seized by federal regulators last night and immediately sold to J.B. Morgan Chase for $1.9 Billion. See an article here. Seattle-based WaMu, which was founded in 1889, is the largest bank to fail by far in the country's history...
Law School Teaches Bankruptcy, Then Files Bankruptcy
Posted on September 26, 2008From the Wall Street Journal Legal Blog: Many believe that, some time ago, legal education in the United States arrived at a sorry junction, where it’s been stuck ever since. Schools proliferating without regard to the job market, churning out debt-strapped students with limited ability to repay loans...
Owner Of Atlanta Area Sonny's Real Pit Bar-B-Q Restaurants Files Chapter 11
Posted on September 25, 2008Greater Atlanta Bar-B-Q, LLC in Norcross, Georgia, filed a Chapter 11 petition in the Northern District of Georgia. In re Greater Atlanta Bar-B-Q, LLC, Ch. 11 Case No. 08-78865. The company, which owns and operates several Sonny's Real Pit Bar-B-Q restaurants in the Atlanta area, is represented by Wendy L...
Bill Heard Chevrolet Closes All Dealerships; Bankruptcy Coming?
Posted on September 25, 2008With new car sales slumping with the economy, Bill Heard Chevrolet closed down suddenly. (Atlanta Business Chronicle article). The company began in Columbus in 1919, founded by W.T. Heard Sr. It developed into the country’s biggest Chevrolet dealer for years and runs dealerships in Georgia, Alabama, Florida, Tennessee, Texas and Nevada...
I am Twittering !
Posted on September 25, 2008I don't know why, or what it really means, but I am jumping on the bandwagon and joining Twitter, and you can follow me right here (or @sbriddle in Twitter lingo). Other lawyers seem to think it is a benefit. See here and here. But NOT here...
Krispy Kreme Ice Kreme?
Posted on September 23, 2008Off topic (though it does involve a company trying to overcome years of financial problems), but Krispy Kreme is going to sell ice cream ... or is it "ice kreme?" If someone had the bright idea to throw the oreo factory rejects and unbaked cookie dough into ice cream mix, why not mix in the superior flavor, and maybe a few chunks, of The Kreme? I note that the other great flavor of the Carolinas, Cheerwine, is already available in ice cream, but not around here...
Atlanta Business Chronicle: Builder Says Bankruptcy Process Was Great Learning Experience
Posted on September 22, 2008In a previous post, I mentioned the bankruptcy case of Atlanta builder/developer Stephen Macauley. See also this post about his business partner Brian Jordan. Macauley filed a Chapter 7 petition reflecting that he had $131 million in personal debt, ,uch of which was business related debt...
Atlanta Business Chronicle: Home Builders and Developers Opt For Chapter 7 Instead Of Reorganization
Posted on September 20, 2008Lisa Schoolcraft of the Atlanta Business Chronicle has an article in the September 19th edition entitled Home Builders at the End of the Line (subscription required for full article). In the article, Lisa discusses the reality that a reorganization is simply not an option for most builders and developers in today's market...
Involuntary Chapter 7 Bankruptcy Petition Filed Against AtheroGenics, Inc.
Posted on September 18, 2008Creditors filed an Involuntary Chapter 7 Bankruptcy Petition against Alpharetta based AtheroGenics, Inc. (AGIX: Google Finance). In re AtheroGenics, Inc., Involuntary Ch. 7 Case No. 08-78200-jem (filed September 15, 2008). According to its website, AtheroGenics is "a pharmaceutical company focused on the discovery, development and commercialization of novel drugs for the treatment of chronic inflammatory diseases, including diabetes and coronary artery disease (atherosclerosis)...
Big Week On Wall Street: Two Giants To Disappear?
Posted on September 15, 2008The news hit over the weekend that Lehman Brothers intended on filing a Chapter 11 petition in the Southern District of New York. See their announcement here. ( WSJ Legal Blog). Additionally, Bank of America is buying Merrill Lynch (WSJ article)...
SEC Investigates Incorrect Rumors Of New United Airlines Bankruptcy Filing
Posted on September 12, 2008In the past few days, incorrect rumors of a new bankruptcy filing by United Airlines have circulated over the internet. It turns out that it was a story from 2002 that was recirculated. According to this story in the Wall Street Journal, the Securities and Exchange Commission has now opened an investigation to see if the release of the old story was an attempt to manipulate the market...
Bankr. M.D. Ga. - Debtor's Equity Of Redemption Extinguished When High Bid Made At Foreclosure Sale, Even If Deed Under Power Not Recorded Until After Bankruptcy Petition Filed
Posted on September 12, 2008In re Williams --- B.R. ----, 2008 WL 4168151 ( Bkrtcy.M.D.Ga., September 04, 2008) (J. Hershner). In a motion to set aside a foreclosure sale, the Court held that a debtor's equity of redemption was extinguished when the highest bid was made at a foreclosure sale, even if the deed under power was not recorded until after the debtor's bankruptcy petition was filed...
U.S. Trustee Has Until Conclusion Of First Meeting Of Creditors To File Presumption Of Abuse Statement; But, Failed To Show Cause To Extend Deadlines For Motion To Dismiss Or Objection To Discharge
Posted on September 12, 2008In re Molitor, --- B.R. ----, 2008 WL 4155283 (Bkrtcy.S.D.Ga. Sep. 5, 2008) (J. Barrett). The first issue was whether the United States Trustee (“UST”) was required to file the § 704(b) presumption of abuse statement within 10 days of the “Commencement” or “conclusion” of the § 341 meeting of creditors...
Crocs, Lawsuits, Warning Labels and Neal Boortz
Posted on September 11, 2008This is off-topic, except to the extent that it does relate to the financial condition of companies and sometimes these issues lead to Bankruptcy. Crocs are cheap plastic shoes, but very trendy nonetheless for some reason. Like flip flops and similar shoes, one can generally look at them and know that are not sturdy shoes...
Bankruptcy Court Order Dismissing Adversary Was Final Appealable Order Notwithstanding Absence Of Entry Of Judgment By Clerk Of Court
Posted on September 09, 2008Klauman v. GMAC Mortg., LLC, Slip Copy, 2008 WL 4098947 (M.D.Ga. August 28, 2008) (J. Land). Debtors filed a class action against Defendant alleging that Defendants added undisclosed fees during their Bankruptcy case. The Bankruptcy Court entered an Order dismissing the adversary for lack of subject matter jurisdiction on April 10, 2008: Since [Debtors] fail to allege an injury in fact, the court must dismiss this case pursuant to FRCP 12(b)(1) for lack of subject matter jurisdiction...
Duke Has The Worst College Football Team In America, As A Matter Of Law?
Posted on September 08, 2008The university's lawyers seem to think so, and have said so in court! For background, go to the comprehensive post on the N.C. Business Litigation Blog, and the follow-up post here, but I'll summarize. The University of Louisville filed suit against Duke University in Kentucky state court because Duke backed out of a contract to play a four game series against Louisville (read the complaint)...
Doctrine Of Equitable Mootness Does Not Protect Debtor's Counsel From Disgorgement Of Fees
Posted on September 08, 2008From law.com, Winstead Ordered to Disgorge up to $500,000 in Bankruptcy Case: A 5th U.S. Circuit Court of Appeals opinion that one former bankruptcy judge calls "scary" for lawyers requires Dallas-based Winstead to disgorge up to $500,000 in attorney fees the firm received for its work on the restructuring of a restaurant chain that filed for bankruptcy...
Georgia School Superindendent Kathy Cox Wins $1 Million On "Are You Smarter Than A 5th Grader?"
Posted on September 06, 2008... and the remaining Clayton County School Board members need some of those fifth graders to help them figure out how to hold a meeting.
Eighth Circuit Says Bankruptcy Lawyers Can Advise Clients To Run Up Pre-Bankruptcy Debt
Posted on September 05, 2008In Milavetz, Gallop & Milavetz, P.A. v. U.S., --- F.3d ----, 2008 WL 4068448 (8th Cir. September 4, 2008) (click here for .pdf), the Eighth Circuit struck down the part of the Bankruptcy Code that prohibits lawyers from telling their clients they cannot incur more debt before filing a petition...
Atlanta Bankruptcy Lawyer Hayden Kepner Debates Neal Boortz On Fair Tax
Posted on September 05, 2008Hayden Kepner, a bankruptcy partner at Scroggins & Williamson, recently participated in a roundtable debate over the Fair Tax. The debate was moderated by CNN's Rick Sanchez, and included Neal Boortz, John Linder, and others. You can access the video of the debate, which aired on CNN, by clicking here.
Discount Clothing Chain Goody's Family Clothing Files Chapter 11 - Will Close Nine Georgia Stores
Posted on June 10, 2008From the Atlanta Business Chronicle - Discount clothing retailer Goody's Family Clothing Inc. has filed for Chapter 11 bankruptcy protection blaming pressures from tightening credit markets, strain on merchandise flow and dozens of underperforming stores in the chain...
Atlanta Based Credit Card Marketer CompuCredit Charged With Deceptive Marketing And Abusive Debt Collection Tactics
Posted on June 10, 2008From the Atlanta Business Chronicle - The Federal Trade Commission has sued Atlanta-based credit card marketer CompuCredit Corp. and its debt collection unit Jefferson Capital Systems LLC, charging them with using deceptive marketing and abusive debt collection tactics on consumers in the subprime market...
Practice of North Georgia Residents Filing Bankruptcy In Chattanooga Might Come To An End
Posted on June 10, 2008By Scott B. Riddle, Esq.It has been a common practice for residents of northeast Georgia to file bankruptcy petitions in Chattanooga, Tennessee rather than Rome, Georgia, in spite of the Bankruptcy Code's requirement that cases be filed in the district in which the debtor resides...
Cheerwine Coming Back To Atlanta
Posted on June 09, 2008Obviously not bankruptcy related, but former North Carolinians will be interested in Cheerwine coming back to Atlanta (the article incorrectly says it is making its debut - it was sold in Atlanta grocery stores a few years ago). Tar Heels, rejoice! Cheerwine, one of our state's indigenous delicacies, is now available in the ATL...
Latest Bankruptcy Statistics, Mortgage And Foreclosure Updates
Posted on June 05, 2008From the Administrative Office of the U.S. Courts, via Law.com, bankruptcy filings are up 30% for the twelve month period ending March 31, 2008. It is not a surprise that Georgia is near the top - The top five states for bankruptcy filings per capita in the 2008 data are Tennessee, 6...
Delaware Bankruptcy Court: Breach of Fiduciary Duty Claim Was Not Disguised Deepening Insolvency Claim; Aiding And Abetting Fraudulent Conveyance; In Pari Delicto
Posted on June 05, 2008From the Delaware Bankruptcy Blog, comes the case of Miller v. McCown De Leeuw & Co., Inc. (In re Brown Schools), No. 05-10841, Adv. No. 06-50861 (Bankr. D. Del. April 24, 2008).Duty of care violations more closely resemble causes of action for deepening insolvency because the alleged injury in both is the result of the board of directors’ poor business decision...
New York Times Article On Kirk Wright Suicide And Continuing Litigation Involving NFL Players And Union
Posted on June 03, 2008By Scott B. Riddle. Esq. The New York Times has an article about the recent suicide of Kirk Wright (discussed in this post). See Hedge Fund Manager's Death Does Not Halt Suit Against N.F.L. and Players Union by Mike Tierney. Six former players, including the star defensive backs Steve Atwater and Blaine Bishop, are involved in a two-year-old civil suit against the Players Association and the N...
Article: Wave Of Litigation From Subprime Crisis
Posted on June 03, 2008Corporate Counsel and Law.com have an article about litigation arising from the subprime mortgage meltdown. The article is entitled Wipeout: Subprime Crisis Spawns Wave of Litigation, by Sherry Karabin. Among the highlights: A new study by Navigant Consulting Inc...
Dischargeability Of Stated Income Loans ("Liar Loans") Based Upon Material Misrepresentations Of Income
Posted on June 01, 2008By: Scott B. Riddle, Esq. From Conglomerate (and now the Wall Street Journal) comes the recent decision in National City Bank v. Hill (In re Hill), Adv No. 07-4106, Ch. 7 Case No. 07-41137 (Bankr. C.D. Ca. May 23, 2008) (click here for .pdf of opinion)...
Countrywide Fires Back In Lawsuit Filed By United States Trustee (In re Atchley)
Posted on June 01, 2008By: Scott B. Riddle, Esq.In this February 29, 2008 post, I discussed the adversary complaint filed in the Northern District of Georgia against Countrywide by the Office of the United States Trustee. See Walton, United States Trustee v. Countrywide Home Loans, Inc...
Kirk Wrights Commits Suicide Before Sentencing
Posted on May 25, 2008Kirk Wright, recently convicted of a massive fraud, and head of Chapter 11 Debtor International Management Associates (discussed in previous posts here, here and here) committed suicide on Saturday, prior to being sentenced. From the AJC - Wright, 37, was found dead Saturday in the cell, where he was being held for federal authorities while awaiting sentencing...
UK Guardian Article: Why Delaware And New York Get Largest Chapter 11 Case, And Why Chicago Does Not
Posted on May 23, 2008The Guardian has an article about the dominance of Delaware and New York when it comes to large Chapter 11 cases. The choice of judge and court is often seen as particularly important in bankruptcy cases where there are no juries and limited ability to appeal the decisions made by that judge...
Several Related Real Estate Entities File Chapter 11 Petitions In Northern District
Posted on May 22, 2008It looks like the real estate slide continues, as these related entities filed Chapter 11 petitions in the Northern District - 08-69440-mhm 11 GT Architecture Contractors Corp Murphy Filed: 05/20/2008 Entered: 05/20/2008 Office: Atlanta Asset: Yes Fee: Paid County: Clayton 08-69445-mhm 11 Southside Grading, Inc...
The Other Side Of Bankruptcy: Buying Foreclosures
Posted on May 20, 2008By: Scott B. Riddle, Esq.If you have been reading real estate Bankruptcy blogs and headlines, you know foreclosures are up. Way up. Georgia, and Atlanta in particular, are amount the nations leaders in that respect. That naturally crates a market for individuals or companies who have the ability to invest in foreclosed properties...
Federal Reserve Bank Of New York Interactive Map Of Non-Prime Mortgages In United States
Posted on May 13, 2008The Federal Reserve Bank of New York has posted Dynamic Maps of Non-Prime Mortgage Conditions in the United States. The interactive map is searchable by state and ZIP code, and provides quite a bit of information on mortgage loans.Thanks to Jeb Howell of Auction Management Corporation for the link.
Delaware Chancery Court Holds Directors Did Not Breach Fiduciary Duty To Creditors By Filing Chapter 11 Petition
Posted on May 10, 2008From the Delaware Litigation Blog comes the case of Nelson v. Emerson, 2008 WL 1961150 (Del. Ch., May 6, 2008) (the opinion is linked from the Delaware Litigation Blog), where the one major secured creditor alleged the directors of the corporation breached their fiduciary duty to the creditor by filing a Chapter 11 petition and paying themselves excessive compensation...
Countrywide Admits Bankruptcy Errors, Tells Senate It Is Making Changes To Avoid Similar Errors In The Future
Posted on May 06, 2008From CNNMoney.comThe Countrywide executive told a U.S. Senate Judiciary subcommittee that the company was taking new steps to address concerns that have led to an outcry from consumer advocates and that were the catalyst for Tuesday's hearing. Bailey said Countrywide plans to hire an independent auditor to review its treatment of loans whose borrowers have filed for bankruptcy...
Pre-Foreclosure Day Chapter 11 Cases
Posted on May 06, 2008It was not a very busy pre-foreclosure week in the Northern District, as far as new Chapter 11 petitions, but a few cases were filed in the last several days -- 08-21204-reb 11 MM Acquisition, LLC Filed: 05/02/2008 Entered: 05/02/2008 08-68330-crm 11 Markee William Brown Jr...
ND Ga - Chapter 7 Trustee Could Neither Assign Tort Claim Nor "Conditionally Abandon" Valuable Cause Of Action
Posted on May 03, 2008In re Allen, Ch. 7 Case No. 01-82408-MHM, 2008 Bankr LEXIS 366 (Bankr. N.D. Ga. February 14, 2008). Debtor’s pre-petition state law cause of action was property of the Chapter 7 Estate, with a value that likely exceeded the liabilities of the Estate...
ND Ga - Compensation For Chapter 11 Counsel After Appointment of Chapter 11 Trustee And Then Conversion Of Case To Chapter 7
Posted on May 03, 2008Two recent opinions from the Northern District (in the same Bankruptcy case) concern debtor's counsel's right to attorneys fees where, first, a Chapter 11 Trustee is appointed and then the case is converted from a Chapter 11 to a Chapter 7:In re Patterson, Case No...
Fifth Circuit Says "No" To Full Hourly Rate For Travel Time
Posted on May 02, 2008From the Wall Street Journal Legal Blog - Tax firm Caplin & Drysdale was appointed national counsel for the asbestos claimants’ committee in the bankruptcy of Babcock & Wilcox, a maker of boilers and generators. The firm sought about $6...
Linens N' Things Finally Files Chapter 11
Posted on May 02, 2008After being on the verge of a filing for many months, Linens N' Things finally pulled the trigger. According to this article in the Atlanta business Chronicle, the following local stores will close -It will close stores at Perimeter Mall in Atlanta, Uptown Square Shopping Center in Fayetteville, Stonecrest Marketplace in Lithonia, Macon Mall in Macon and Southlake Pavillion in Morrow...
Georgia Still Second In The Nation In Rate Of Personal Bankruptcy Filings
Posted on May 01, 2008From the May 2, 2008 Atlanta Journal Constitution - Georgia ranked No. 2 nationally for its rate of consumer bankruptcy filings in the first quarter of the year. The bankruptcy courts statewide processed 12,981 consumer filings during the quarter, up 16 percent from the same period in 2007...
11th Circuit - In A Case Of First Impression, Court Rules On Proportionate Liability In Private Securities Litigation Reform Act Of 1995
Posted on April 30, 2008Not a Bankruptcy case, but relevant to corporate and shareholder litigation:KITTIE LAPERRIERE, Class certification, to consist of all persons who acquired the publicly traded equity securities of Vesta Insurance Group, Inc., between June 2, 1995, and June 28, 1998, inclusive (the “Class Period”)...
New Bankruptcy Rule 6003; Judge Massey Order Cited In New Article
Posted on April 30, 2008By: Scott B. Riddle, Esq.In a prior post, I discussed Judge Massey's opinion concerning Amended Bankruptcy Rule 6003. In re Smith, Ch. 11 Case No. 08-63990 (click here for Order). Catherine Vance, Vice President of Research & Policy and Associate General Counsel of Development Specialists, Inc...
Recent Chapter 11 Filings: Verso Technologies, Inc. And Related Companies File Chapter 11 In Northern District
Posted on April 27, 2008After a slow three weeks for Chapter 11 filings, Atlanta-based technology company Verso Technologies, Inc. (yahoo! Finance, Google Finance), and four related entities, filed Chapter 11 petitions in the Northern District of Georgia on April 25, 2008...
If You Live In Clayton County, Georgia, Watch Your Home Values Plummet
Posted on April 24, 2008The disaster that is the Clayton County School Board has struck again. On the verge of being the third school district in the United States to lose accreditation in the last 20 years (see the report here), they struck again last night...
11th Circuit Holds Requirements Of Section 303(b) (Involuntary Bankruptcy) Are Jurisdictional -- But It Doesn't Like It.
Posted on April 23, 2008By: Scott B. Riddle, Esq.Trusted Net Media Holdings, LLC v. The Morrison Agency, Inc. (In re Trusted Net Media Holdings, LLC), No. 07-13429 (11th Cir. April 29, 2008) (click here for pdf of opinion). The basic facts are the following - On April 20, 2002, Morrison, as a creditor, filed an involuntary bankruptcy petition against its debtor Trusted Net, requesting liquidation of Trusted Net’s assets pursuant to Chapter 7 of the Bankruptcy Code...
When Visiting Russia, Check Your Luggage For High Powered Ammunition
Posted on April 21, 2008I can't really turn this into a Bankruptcy or litigation issue, so it will be a rare stray for this news story - Wall Street Journal: U.S. Pastor's Hunting Ammunition Gets Him 3 Years in Russian Prison. Phillip Miles, from South Carolina, has been in custody since his arrest on Feb...
LinkedIn: New Group For Bankruptcy Lawyers In Georgia
Posted on April 20, 2008Like a few million other people, I created a profile on LinkedIn. I am not quite sure what that means in the long run (see below), but after joining the legal bloggers group, it occurred to me that it might be useful for creating an online directory for Bankruptcy lawyers in Georgia...
Tithing And Paying Off Debt
Posted on April 20, 2008I ran across a post about the issue of tithing and paying off debt on the Free Money Finance Blog entitled Tithe or Pay Off Debt: Which Should You Do? There is a follow-up post on the subject here. These posts, and the blog, may be of interest to some readers...
Gretchen Morgenson On Lender Misconduct
Posted on April 19, 2008Gretchen Morgenson of the New York Times has an article in tomorrow's Sunday edition about the improper conduct of mortgage lenders. See Piling On; Borrowers Buried By Fees. Morgenson discusses several cases in which Bankruptcy Judges have found misconduct on the part of lenders...
Bankruptcy Trustee Sues Law Firm For $1.2 Billion For Client Taking Too Long To Go Into, Then Out Of, Bankruptcy
Posted on April 17, 2008From Law.com - The 75-page complaint, filed Monday in Manhattan Supreme Court by trustee Richard Gray, alleges McDermott Will put off a much-needed Chapter 11 filing to facilitate self-dealing by two other members of the hospital group's restructuring team...
Foreclosures Hit Record High In Metro Atlanta
Posted on April 16, 2008From the Atlanta Journal Constitution - A record number of metro Atlanta properties are scheduled to be auctioned on the courthouse steps next month, according to numbers released Tuesday by Equity Depot, an Alpharetta company that tallies foreclosures...
Bankruptcy Judge Slams Firm For Conflict Of Interest
Posted on April 15, 2008A warning for firms that have unpaid pre-petition fees when they represent a Chapter 11 debtor. From Law.com - In a stinging 38-page decision, Southern District of New York Bankruptcy Judge Arthur J. Gonzalez denied Windels Marx Lane & Mittendorf any compensation for its work on the bankruptcy of hip-hop media company Source Enterprises Inc...
Georgia Court Of Appeals Upholds Expansive Scope Of Personal Jurisdiction
Posted on April 15, 2008By: Scott B. Riddle, Esq.Vibratech, Inc. v. Frost, et al., 2008 WL 1704091 (Ga. App. March 27, 2008). Although this Georgia Court of Appeals opinion involves a bankruptcy issue, it is more important for the discussion and holding on personal jurisdiction...
Delaware Bankruptcy Court Imposes Caremark Duty Of Care On Corporate Officers
Posted on April 14, 2008Francis Pileggi, in this post, discusses the Delaware Bankruptcy Court's opinion in the case of Miller v. McDonald (In re World Health Alternatives, Inc.), 2008 WL 1002035 ( Bankr., Del. April 9, 2008) (pdf opinion here)...
The Rumor Mill: Jefferson County, Alabama, Which Includes Birmingham, Might Be Largest U.S. Municipal Bankruptcy
Posted on April 14, 2008From Bloomberg -April 11 (Bloomberg) -- They're talking more about Chapter 9 municipal bankruptcy in Jefferson County, Alabama, the home of the largest city in the state, Birmingham. Who can blame them? The county is now being whipsawed by an ill-thought-out debt policy and the collapse of the bond insurers...
11th Cir: Trustee's Abdndonment Of Cause Of Action Already Ruled Upon By Bankruptcy Court Did Not "Re-Vest" Plaintiffs With Ability To Re-Litigate Claims
Posted on April 14, 2008By:Scott B. Riddle, Esq. Matthews, Wilson & Matthews, Inc. v. Capital City Bank, 2008 WL 901919, 07-15615 (April 4, 2008). MWM [Debtor] had trouble making loan payments, and ultimately filed for Chapter 7 bankruptcy. The bankruptcy trustee sought approval from the bankruptcy court to sell the Conyers property [owned by Debtor] and use the sale proceeds to satisfy the [Capital City Bank's] lien...
"Lessons Learned in the Nifong Case"
Posted on April 14, 2008A plug for my law school and a CLE event in Atlanta-- UNC School of Law is pleased to present - "Lessons Learned in the Nifong Case" A two-hour CLE program presented by Richard E. Myers II,Assistant Professor of Law at UNC School of LawTuesday, April 22, 20083:00 - 5:00 p...
Retailer Linens 'N Things Expected To File Chapter 11 Within A Week
Posted on April 11, 2008From the Wall Street Journal - Linens 'n Things Inc., a home-furnishings retailer caught by an increasing debt load and shrinking housing market, is expected to file for Chapter 11 bankruptcy-court protection by Tuesday, several people familiar with the matter said...
10th Circuit Rules On Pay Advice Issue, Reverses Bankruptcy Court
Posted on April 10, 2008From the Bankruptcy Prof Blog -Miller v. Cameron (In re Miller) ---- B.R. ----, 2008 WL 754809 (10th Cir. Mar. 2008) (click here for opinion). Issue: Is a debtor's pay stub containing year-to-date income totals “other evidence of payment” sufficient to meet the filing requirements of payment advices for the previous 60 days? Holding: Yes Under the bankruptcy court's interpretation, a debtor would not only need to provide a separate piece of documentary evidence for each pay period during the sixty days prepetition, he would also have to ensure that each piece of evidence was created by his employer...
Get E-mail Updates From U.S. Trustee
Posted on April 09, 2008From the Bankruptcy Prof Blog, you can now get email updates from the U.S. Trustee. Go to their website, click on Email Updates in the top right corner, and sign up.
Recent Chapter 11 Filings In Northern District of Georgia
Posted on April 09, 2008Recent cases filed in the Northern District over last two weeks -- 08-40915-mgd Northstar Vinyl Products, LLC Filed: 03/28/2008 Entered: 03/28/2008 08-65697-jb Heritage Point Apartments Inc...
Should You File Chapter 7 For Your Small Business?
Posted on March 28, 2008Many of the calls I receive are from individuals who own small or mid-size businesses that are experiencing financial difficulties are need to shot down. They often assume that they should file a bankruptcy petition on behalf of the business if it is a corporation, partnership or limited liability company...
Would Bankruptcy Be A Better Option For Bear Stearns?
Posted on March 21, 2008At least one investor believes Bankruptcy is a better option for Bear Stearns than the $2 per share offer by JP Morgan.From CNN Money - Here's what Nye Lavalle, a private investor, investor and consumer advocate, in Atlanta, writes: My recommendation and our vote of our shares will be to turn down the proposal and force a bankruptcy liquidation...
Blog Rankings For The Month
Posted on March 20, 2008I was prompted by this blog post to check the monthly Justia Blog Rankings. I was surprised to see this Blog as the No. 22 most popular legal Blog. I am not sure what it means, but it has to be a good thing. Other good Blogs on the list, that may be of interest to readers interested in bankruptcy, business litigation or Georgia law, are: Above the Law Delaware Corporate and Commercial Litigation Blog Wall Street Journal legal Blog Mortgage Fraud Blog Bankruptcy Law Network Atlanta Injury Law & Civil Litigation Blog Credit Slips Real Lawyers :: Have Blogs theBKblog Georgia Family Law Blog
Bankruptcy Law and Litigation Seminar, May 19, 2008.
Posted on March 18, 2008On May 19, 2008, I will be speaking at a seminar on Bankruptcy Law and Litigation, presented by National Business Institute. The description of the course is the following:Your clients rely on you to unravel the complexities of the bankruptcy process and guide them to the most favorable outcome possible...
Amended Bankruptcy Rule 6003 And Chapter 11 Applications For Employment
Posted on March 18, 2008On December 1, 2007, amended Federal Rule of Bankruptcy Procedure 6003 became effective. It states the following:Except to the extent that relief is necessary to avoid immediate and irreparable harm, the court shall not, within 20 days after the filing of the petition, grant relief regarding the following: (a) an application under Rule 2014; (b) a motion to use, sell, lease, or otherwise incur an obligation regarding property of the estate, including a motion to pay all or part of a claim that arose before the filing of the petition, but not a motion under Rule 4001; and (c) a motion to assume or assign an executory contract or unexpired lease in accordance with § 365...
Assignments For The Benefit Of Creditors In California
Posted on March 17, 2008In this post, I summarized Assignment for the Benefit Creditors in Georgia. Bob Eisenbach just posted an article in the Business Bankruptcy Blog entitled Assignment for the Benefit of Creditors; Simple as ABC?
Emory Bankruptcy Developments Journal 2008 Banquet Honoring Douglas Baird
Posted on March 11, 2008Emory Bankruptcy Developments Journal 2008 Banquet Honoring Douglas BairdHere is the flyer.When: March 27, 2008 Maggiano’s -Buckhead Where: 3368 Peachtree Road, Atlanta GA Time: 6:30-9:00 PMSeats are $80 each and limited tables of ten are available for $1000...
Eve Marie Carson
Posted on March 11, 2008Most of us in the Atlanta area have heard the story of Eve Marie Carson, the Student Body President of my alma matar, The University of North Carolina. Eve grew up in nearby Athens, Georgia, where she was the student body president of Clark Central High School...
Business Bankruptcy And Reorganization In Canada
Posted on March 07, 2008See Bob Eisenbach's post entitled North Of The Border: Reorganization Under Canada's Companies' Creditors Arrangement Act describing the the Bankruptcy and Insolvency Act, known as the BIA, and the Companies' Creditors Arrangement Act, known as the CCAA...
11th Circuit - Mere Failure To Comply With Court Order Insufficient For Denial Of Discharge
Posted on March 07, 2008The Cradle Company v. Matos (In re Matos), 2008 WL 596744, No. 07-12628 (11th Cir. March 6, 2008). The creditor sought an order denying the debtors' discharge for failure to comply with a Court Order. The Bankruptcy Court found that the creditor did not establish the requirements of denial of discharge, and the District Court affirmed...
Assembly Line Foreclosures?
Posted on March 06, 2008I previously posted about the US Trustee's action against Countrywide for alleged abuses in Chapter 13 cases. From the Wall Street Journal Law Blog - Does flat-fee pricing foster assembly-line lawyering? That’s what U.S. bankruptcy judge Jeff Bohm suggested in a decision, entered yesterday, in a consumer bankruptcy case involving Countrywide and a Texas homeowner...
Several Related Shopping Centers File Chapter 11 In Northern District
Posted on March 05, 2008Several related entities, owners of shopping centers, filed Chapter 11 petitions in the Northern District on March 3, 2008. They include the following - 08-64027-crm 11 Airport North Business Center, LLC Filed: 03/03/2008 Entered: 03/03/2008 08-64031-mgd 11 Griffin Land Development, LLC Filed: 03/03/2008 Entered: 03/03/2008 08-64038-crm 11 Pointe South Shopping Center, LLC Filed: 03/03/2008 Entered: 03/03/2008 08-64053-crm 11 Red Oak Shopping Center, LLC Filed: 03/03/2008 Entered: 03/03/2008 08-64061-crm 11 Tri-County Station Shopping Center, LLC Filed: 03/03/2008 Entered: 03/03/2008 08-64068-crm 11 Virginia Station Shopping Center, LLC Filed: 03/03/2008 Entered: 03/03/2008
Upon Requests From Clients, Ford & Harrison To Stop Billing For First Year Associates
Posted on March 03, 2008According to this article in the recent edition of the Atlanta Business Chronicle, Ford & Harrison has decided to stop billing for first year associate work - C. Lash Harrison said his law firm received four letters last year from Fortune 500 companies, stating that they would no longer pay for first-year associates on their cases...
United States Trustee Sues Countrywide For Abusive Practices And Frivolous Pleadings
Posted on February 29, 2008On February 28, 2008, in an unusual filing, the United States Trustee for the Region that includes Georgia filed a lawsuit against Countrywide for a multitude of alleged offenses in a Chapter 13 case pending in the Northern District. See Walton, United States Trustee v...
Deepening Insolvency Trends
Posted on February 29, 2008I have written about the waning popularity of deepening insolvency (and here) as a cause of action. Bob Eisenbach refers to a new article by his colleagues in the Bankruptcy & Restructuring group at Cooley Godward Kronish LLP, Michael Klein and Ronald Sussman...
Employment Applications In Sharper Image Bankruptcy
Posted on February 29, 2008Jonathan Hayes at the BankruptcyProf Blog discusses the employment applications in the Sharper Image Chapter 11 case filed recently in Delaware. The Weil Gotshal firm disclosed that it received a $400,000 retainer of which about $376,000 was used up prepetition...
Pike Nursery Assets Sold At Auction, Subject To Court Approval.
Posted on February 27, 2008The auction of Pike's assets was held, and based upon this pleading filed today, the results are the following (subject to Court approval) - (a) The Debtor accepted a bid for its "retail" assets by Armstrong Garden Centers, Inc. ("Armstrong") for a sale price of approximately $5,184,000 (the "Armstrong Sale ")...
Emory Bankruptcy Developments Journal Symposium On March 6, 2008
Posted on February 25, 2008"Emerging Trends in Bankruptcy" is the topic. Here is the flyer and the agenda - Panel topics will include: • The Rise of Non-Bankruptcy Consumer Actions and Emerging Trends in Consumer Bankrupcy Litigation; • Emerging Trends in Chapter 11 Litigation and Evidentiary Issues in Bankruptcy; and • The Use of Alternative Dispute Resolution in Bankruptcy...
Sharper Image Files Chapter 11 In Delaware
Posted on February 20, 2008I have never been a Sharper Image shopper, but apparently not as many other people are these days. The company filed a Chapter 11 petition in Delaware. Litigation involving Sharper Image's Ionic Breeze air purifiers resulted in ``negative publicity'' and a decrease in total revenue, according to court papers...
District Court for Middle District Holds Surrender Of "910 Vehicle" Constitutes Full Satisfaction Of Claim
Posted on February 16, 2008Jason Braswell of Morgan & Morgan in Athens, Georgia passed along is case of In re Carter , Case No. 3:07-CV-50, Ch. 13 Case No. 06-30846 (M.D. Ga.) (click here for .pdf), wherein Judge Land affirmed the Bankruptcy Court's ruling that surrender of "910 vehicles" constitutes full satisfaction of the claim...
Directors Of Corporation Cannot Sue Derivatively If They Are Not Shareholders
Posted on February 14, 2008In the corporate litigation field, the Delaware Supreme Court has held that directors of Delaware corporations, who are not shareholders of the corporation, cannot assert derivative claims against fellow directors. While this issue may not arise often, it is important as many corporations are governed by Delaware law, and other states follow Delaware law...
Member/Manager of Georgia Limited Liability Company Not Necessarily A Fiduciary For § 523(a)(4) Purposes.
Posted on February 14, 2008Tarpon Point, LLC v. Wheelus, Adv. No. 07-3022, 2008 WL 372470 (Bankr. M.D. Ga. Feb 11, 2008) (Walker). Plaintiffs alleged that the debt owed by Debtors was nondischargeable pursuant to § 523(a)(4), defalcation while acting as a fiduciary. The issue was whether the Debtors had a fiduciary duty sufficient to invoke this section merely because there were members and managers of a Georgia limited liability company...
Project Lifeline: President Bush And Lenders To Announce Foreclosure Aid Plan
Posted on February 12, 2008From CNN.com - The plan, called Project Lifeline, will allow overdue homeowners to suspend foreclosures for 30 days while they try to work out more affordable terms with lenders. It's not clear how many homeowners will be covered under the plan, but the proposal is aimed at delinquent homeowners whose mortgages are 90 days or more past due...
Wheeler's, Inc. And 19 Related Building Products Suppliers, File Chapter 11 Petitions In Northern District
Posted on February 12, 2008(Update: See the Rome News-Tribune reports here and here). In what may be another sign of the state of the building and construction industry, and housing industry as a whole, Twenty related building supply companies filed Chapter 11 petitions in the Rome Division of the Northern District on February 1, 2008...
Cornerstone Ministries Investments, Inc., Lender To Churches And Faith-Based Organizations, Files Chapter 11 Petition
Posted on February 12, 2008Cornerstone Ministries Investments, Inc. (google finance) filed a Chapter 11 Petition in the Northern District of Georgia on February 10, 2008, Case No. 08-20355. From the organization's website -- Cornerstone was founded in 1985 to finance church growth and building programs...
Creditors Committee's Counsel's Fees Cut For Failure To Disclose Ties With Client
Posted on February 07, 2008From Law.com - Nearly $75,000 in legal fees have been blocked by a federal judge who complained that a Long Island, N.Y., law firm was "purposefully vague" in disclosing that its lead attorney in a bankruptcy case was the son-in-law of the executive of one of several unsecured creditors it was representing...
New Chapter 11 Filings Include Several Real Estate And Construction Related Companies
Posted on February 06, 2008Since today is foreclosure day in Georgia, I took a look at the Bankruptcy Court dockets for new Chapter 11 cases. An unusually high number have been filed in the Northern District in the last few days, including several that appear to be related to real estate and construction...
North Carolina Supreme Court Holds That Arbitration Clauses In Consumer Loan Agreements Are Unconscionable
Posted on February 05, 2008The Womble Carlyle Construction Industry Blog reports a landmark decision in North Carolina, in which the N.C. Supreme Court held that arbitration clauses in consumer loan agreements are unconscionable and unenforceable. The case is Tillman et al v...
Pike Nurseries Seeks Court Approval For Sale of Assets
Posted on February 02, 2008Pike Nursery Holding, LLC, which filed a Chapter 11 petition in November 2007, fled a motion seeking Court approval to sell assets free and clear of liens, claims and encumbrances, and to establish procedures with respect to the sale. (click here for motion)...
Roark Capital, Owner Of Chapter 11 Debtor Pike Nurseries, Forms $1 Billion Equity Fund
Posted on February 01, 2008From the Atlanta Business Chronicle, Roark Capital, which owns Chapter 11 Debtor Pike Nursery Holding, LLC., has formed a new equity fund - Roark Capital Group said it has formed a private equity fund with $1 billion with which it will invest in consumer and business service companies...
Northern District Chief Judge Bihary Comments On Rising Bankruptcy And Foreclosure Rates
Posted on February 01, 2008Last week's Atlanta Business Chronicle has an article by John Manasso about the rise in bankruptcy filings and foreclosures. See Bankruptcy Filings Bullet Past Other States (subscription req'd).The Northern District of Georgia is second only to the Eastern District of Michigan (which includes impoverished Detroit) in the number of Bankruptcy filings -- 31,435 in 2007...
11th Circuit - In Case of First Impression, Bankruptcy Court Order Removing Trustee Is Final Appealable Order
Posted on February 01, 2008Walden v. Walker (In re Walker), 06-11743 (11th Cir. January 31, 2008) (click here for pdf). The debtor filed a motion to remove the Chapter 7 Trustee. The Bankruptcy Court, after hearing evidence, held that the Chapter 7 Trustee lied about her previous relationship with a creditor of the estate and removed her as Trustee in an oral order...
Summary Of Important Delaware Corporate Cases In 2007
Posted on January 30, 2008Francis Pileggi has written a summary of the key Delaware Chancery Court and Supreme Court cases of 2007. Obviously, these cases are important to corporate litigation lawyers in other states, including Georgia. You can access the summary from the Delaware Corporate and Commercial Litigation Blog.
Judge Fuller On Brian Nichols - "Everybody In The World Knows He Did It"
Posted on January 30, 2008Update Wednesday afternoon at 3:30 pm: Judge Fuller has stepped down from the Brian Nichols case.This is a relatively rare stray from the topics of bankruptcy and financial matters, but a subject of interest to lawyers in Georgia. Judge Hilton Fuller, the Judge in the Brian Nichols ("Courthouse Shooter") case, has essentially held up the case indefinitely and caused the state to allocate millions of dollars to his defense...
Georgia Second In Nation In Personal Bankruptcies
Posted on January 29, 2008The Atlanta Journal has an article discussing the dramatic rise in personal bankruptcy cases in Georgia. See Georgia No. 2 In Rate of Personal Bankruptcies Last Year, by Carrie Teegartin. Thousands of Georgians facing economic woes have given the state a dubious ranking: the second-highest personal bankruptcy rate in the nation...
Shaquille O'Neal's Means Test: How The Other Half Lives
Posted on January 24, 2008Taking a short break from the reality of the means test, disposable income and other bankruptcy terms, let's see how the other half .. or Top .0001% .... lives. Shaquille O'Neal's financial disclosures, made in his divorce proceeding, reflect the following monthly expenses - • $1,500 for cable TV...
Creditors File Involuntary Bankruptcy Petition Against Friedman's Jewelers
Posted on January 24, 2008An involuntary petition was filed against Friedman's Jewelers on January 22, 2008. The retailer has several stores in Georgia.From TheLedger.com - A group of jewelry sellers owed $9.1 million from Friedman's Inc. are trying to force the company into Chapter 7 bankruptcy - the retailer's second trip to bankruptcy court in just more than three years...
11th Circuit: Income Taxes Nondischargeable Where Debtor Engaged In Affirmative Acts To Evade Or Avoid
Posted on January 22, 2008In re Zimmerman, No. 06-15151, 2008 WL 161423 (11th Cir. Jan. 18, 2008). The background facts are summarized by the Court as follows: Zimmerman filed an adversary proceeding in his 2004 bankruptcy proceeding seeking a determination that his federal income tax liabilities for the years 1977 through 1979 would be dischargeable in the 2004 bankruptcy proceedings...
Delaware Chancery Court: Automatic Stay Does Not Apply To Order Compelling Shareholder Meeting
Posted on January 22, 2008The Delaware Corporate and Commercial Litigation Blog discusses the case of Fogel v. U.S. Energy Systems, Inc., 2008 WL 151857 (Del. Ch., Jan. 15, 2007) - The Chancery Court cited to a decision of the U.S. Court of Appeals for the Second Circuit--which in turn relied on a Delaware Supreme Court decision, that asserted the "well-settled rule that the right to compel a shareholders' meeting for the purpose of electing a new board subsists during reorganization proceedings...
US Supreme Court Decides Stoneridge Investment Partners v. Scientifc-Atlanta; Limits Investor Fraud Lawsuits
Posted on January 17, 2008By: Scott B. Riddle, Esq. This is not a bankruptcy case, but it will be applicable in many large bankruptcy cases involving allegations of fraud by shareholders or investors.On January 15, 2008, the United States Supreme Court entered an important decision in Stoneridge Investment Partners v...
Disgraced Former Durham Prosecutor Mike Nifong Files Bankruptcy Petition
Posted on January 16, 2008The Raleigh News & Observer story, by staff writers Anne Blythe and Matt Dees, is here. You can download a copy of the 80 page petition and schedules by clicking here. Mike Nifong, the fallen district attorney who lost his job and his career over his zealous prosecution of the Duke lacrosse case, filed for bankruptcy protection Tuesday in federal court, a move described by one legal expert as "throwing in the towel...
Upcoming Speaking Engagement - Creditors' Claims In Chapter 7 Cases
Posted on January 15, 2008On February 28, 2008, I will be speaking at the "Chapter 7 and Chapter 13 Basics" seminar sponsored by HalfMoon Seminars. The course description is found here and the brochure is here. My topic will be Creditors’ Claims in Chapter 7, including - Treatment of secured and unsecured claims Filing claims Cooperating with the trustee Effect of the automatic stay Determining dischargeability I will also discuss the recent cases concerning an unsecured creditor's right to include post-petition attorneys fees as part of its claim...
9th Circuit BAP - Following US Supreme Court Opinion In Travelers, Unsecured Creditors Can Recover Post-Petition Attorneys Fees
Posted on January 15, 2008In a prior post, I discussed the Supreme Court case Travelers Casualty & Surety v. Pacific Gas & Electric (05-1429), (opinion available here) wherein the Supreme Court reversed the Ninth Circuit and held that the Bankruptcy Code does not forbid a claim for attorneys fees where such fees are provided for in a contract, even where the fees were generated in litigating Bankruptcy issues...
Southeastern Bankruptcy Law Institute 2008 On April 3-5, 2008
Posted on January 12, 2008The 2008 edition of the Southeastern Bankruptcy Law Institute is coming up on April 3-5, 2008. For CLE procrastinators, than means it comes just after the March 2008 deadline for making up 2007 hours (but the 19.4 Georgia hours takes care of 1...
NDGa - Misc. Consumer Cases: Means Test, Automatic Stay, Disqualification of Judge, Preferential Transfers
Posted on January 12, 2008In re McDaniel, No. 06-62786, 2007 Bankr. LEXIS 3390 (August 24, 007)(CRM). The United States Trustee filed a motion to dismiss under §707(b)(2) and (b)(3) based on presumption of abuse and totality of circumstances. The Court held that 1) the debtor could deduct secured debt payments on the means test even where he intended on surrendering the collateral (this included payments for rental properties owned by the debtor), 2) The debtor could not take the ownership deduction for a vehicle that was not leased or subject to a secured claim, and 3) the totality of circumstances did not support dismissal after the court considered a child on the way...
City Of Cleveland Sues 21 Banks Over Foreclosures
Posted on January 11, 2008From the AP (via CNN) -- The city of Cleveland, an epicenter of the U.S.'s home foreclosure crisis, has sued 21 banks, claiming subprime mortgage lending in inner-city neighborhoods has created a public nuisance that hurt property values and city tax collections...
Bank of America To Buy Countrywide?
Posted on January 10, 2008January 11 Edit - Looks like a done deal. Bank of America agrees to purchase Countrywide for $4 bilion. It will beinteresting to see where this goes in the coming months and years. Theoretically, based on the price, it could turn out to be a goldmine for BofA down the road...
Downloadable Forms
Posted on January 10, 2008The following forms are available for download.Small Business Worksheets Full Worksheet in Word Format.Full Worksheet in Adobe Acrobat (pdf) Format. Individual Bankruptcy Worksheets:Full Worksheet in Word Format (revised January 2008)Full Worksheet in Adobe Acrobat (...
Can A City Sue A Mortgage Lender For Indirect Or Secondary Damages From Predatory Or Discriminatory Subprime Lending?
Posted on January 09, 2008The City of Baltimore thinks so, and has filed a lawsuit against Wells Fargo. Baltimore homeowners could receive counseling and financial support - including short-term loans to help avoid foreclosure - if the city wins the predatory and discriminatory lending lawsuit it filed yesterday against Wells Fargo Bank, Mayor Sheila Dixon said...
How Would A Countrywide Bankruptcy Would Affect Consumers?
Posted on January 09, 2008Jumping a little more on the potential Countrywide bankruptcy filing, Fox Business has an article entitled Mortgage Lender's Bankruptcy Would Have Severe Impact on Consumers.
More Bankruptcy Talk For Countrywide?
Posted on January 09, 2008From Rueters - The lender said there was "no substance to the rumor that Countrywide is planning to file for bankruptcy, and we are not aware of any basis for the rumor that any of the major rating agencies are contemplating negative action relative to the company," but its shares closed down $2...
What Types Of Cases Does Scott Riddle Handle?
Posted on January 05, 2008Like most lawyers, I am often asked what kinds of cases I generally handle. Obviously, one of my practice areas is bankruptcy law, but I also receive questions about what specific types of bankruptcy matters I handle. After a year and a half of publishing this Blog, I thought it time to describe my practice areas in a little more detail...
Wills, Trusts , Probate, and Elder Care Lawyer in Decatur and Atlanta, Georgia -- Law Office of Luanne M. Bonnie
Posted on January 05, 2008My friend Luanne Bonnie has opened a solo practice in downtown Decatur, Georgia, specializing in wills, trusts, estates, probate and elder care. The office will serve the Decatur and metro- Atlanta areas. Luanne was formerly a partner in a large Southeast firm...
Recent 11th Circuit Bankruptcy Cases: Property of the Estate, Jurisdiction
Posted on January 03, 2008A couple recent 11th Circuit Bankruptcy cases -- Mennen v. Onkyo Corp., No. 06-12050, 2007 WL 2669484 (11th Cir. September 13, 2007). Property of the Estate. Claims of trust rightfully belong to Bankruptcy estate, where creditor trust could not how distinct and individual damage...
Georgia Homebuilder Oakwood Homes, LLC, Which Recently Did Project For "Extreme Makeover," Files Chapter 7 In Northern District Of Georgia
Posted on January 03, 2008Joining other real-estate related debtors (mortgage lenders, builders, developers), Oakwood Homes, LLC, filed a Chapter 7 petition in the Northern District of Georgia on December 28, 2007. The schedules list over $31 million in assets and over $22 million in debt...
Hundreds of Foreclosed Georgia Houses To Be Auctioned
Posted on January 02, 2008An unfortunate consequence of the increase in foreclosures is that many homes are being auctioned by the foreclosing lenders. On January 16 and 17, 2007 600 Georgia houses will be auctioned by the firm of Hudson and Marshall, according to this article in the Atlanta Business Chronicle...
Merry Christmas!
Posted on December 25, 2007Merry Christmas to everyone! To get you going this morning, here is an updated version of 'Little Drummer Boy" from Buckhead Church.
11th Circuit: Party May Not Proceed In Forma Pauperis Where Appeal Is Frivolous
Posted on December 31, 1969Ghee v. Retailers Nat. Bank, No. 07-14128, 2008 WL 816666 (11th Cir. March 27, 2008). Collection lawsuit against former Chapter 7 debtor's spouse, who was not a debtor in the bankruptcy case, did not violate the discharge injunction of §524(a)(2)...
Can Debtors Borrow Money To Redeem Secured Property?
Posted on December 31, 1969Debtors in Chapter 7 generally have three ways to deal with secured debts -- reaffirm the debt pursuant to §524, surrender the property to the lender, or "redeem" the property by paying the secured lender the value of the collateral. (For now, we'll leave discussion of the ride-through for another occasion)...
United States Trustee Receives Broad Authority To Investigate Countrywide
Posted on December 31, 1969In a post on February 29, 2008, I discussed the adversary complaint filed against Countrywide by the United States Trustee in the Northern District of Georgia. Since then, others have picked up on the case, including the New York Times.Countrywide now faces more troubles...
Dress Code For Bankruptcy Lawyers
Posted on December 31, 1969From Above the Law , Kirkland & Ellis wants its bankruptcy lawyers to dress for success -- 04/01/2008 10:58 AM To: #FW Restructuring Attorneys Subject: Upcoming Dress Code Program As part of our KIRT [Kirkland Institute of Restructuring Training] programs, I am pleased to announce a "dress for success" program, which will be held on each Monday for one hour for the next four weeks...
Detroit Bankruptcy Judges Change Rules To Lure Automakers
Posted on December 31, 1969The Bankruptcy Court for the Eastern District of Michigan entered an Administrative Order (click here to view) making the Court more attractive for "a very large, complex case of national significance." Yes, that means GM, Chrysler and/or Ford...
Related Law Articles
How to Stop Home Foreclosure
Bankruptcy can Stop Foreclosure
Bankruptcy Law
A complete prime (pre-2005)
Related Law Questions
How do you recover money from a stop payment placed on a personal check given to you?
you can always take them to small claims court and sure them for 3 times the amo...
Protection from damages from Internet advertising fraud for owners of an Incorporated company?
The "corporate veil" that ordinarily protects business owners and managers from ...
Does a Chapter 7 bankruptcy discharge a secured mortgage loan?
Yes if you file they cannot sue you to the knowledge I know. My brother is in re...
Once a storage company takes possession of a stored asset and attempts to sell it to satisfy delinquent storage fees, can they continue to charge for storage?
what we found out is that the guy held onto the car since 99 and now wants all s...
I have a collection account on my credit report which states a later "account opened" date than the original creditor's default date on the very same report. What should I do? Do not want to file for bankruptcy.
You might consider contesting the account problem in question. If you call the c...
#1 Online Legal Resource
On 08-28 at 21:13PM
Ten months later, Fed must reveal names of emergency lending recipients #FOIA
On 08-25 at 19:02PM
Squeaky Fromme, would-be Ford assassin and Manson devotee, released from prison
On 08-14 at 15:19PM
Likely unintended consequence of cash-for-clunkers stimulus is dampening of 2010 spending
On 08-14 at 14:34PM
Palm seeks to halt Palm Pre Android theme on copyright and trademark ground
On 08-12 at 17:30PM
Congressional investigation demonstrates Karl Rove lied about his active role in US attorney's firing
On 08-12 at 16:20PM
Family of New York City swine flu victim to sue city for failure to secure school #nyc #swineflu
On 08-12 at 12:59PM
Real Network's DVD copying software deemed to break DMCA's anti-circumvention provisions
On 08-12 at 12:57PM
Prepaid funeral operators indicted for $100 Million fraud
On 08-12 at 12:53PM
NY Jets join Cincinnati, Dallas, Green Bay, Houston & Seattle #NFL teams offering branded state lottery games
On 08-12 at 12:43PM
Are you the author of this blog? Adding USLaw.com to your Blogroll increases relevance. You qualify to display a USLaw Network badge.
Suggest changes to this blog's description or nominate another for inclusion. Register for updates.
How do you recover money from a stop payment placed on a personal check given to you?
you can always take them to small claims court and sure them for 3 times the amo...
Protection from damages from Internet advertising fraud for owners of an Incorporated company?
The "corporate veil" that ordinarily protects business owners and managers from ...
Does a Chapter 7 bankruptcy discharge a secured mortgage loan?
Yes if you file they cannot sue you to the knowledge I know. My brother is in re...
Once a storage company takes possession of a stored asset and attempts to sell it to satisfy delinquent storage fees, can they continue to charge for storage?
what we found out is that the guy held onto the car since 99 and now wants all s...
I have a collection account on my credit report which states a later "account opened" date than the original creditor's default date on the very same report. What should I do? Do not want to file for bankruptcy.
You might consider contesting the account problem in question. If you call the c...
 |
|
Contact Us | About Us | Celebrity Law Blog |
Our Partners | Disclaimer
| Law Blog Directory
| Law Jobs
| Law Tweets
| GoDaddy Hosting
All original material © 1999-2009 by USLaw.com. |