Category Archive: Bankruptcy

Mar 30

Bankruptcy Treatment of Education Debts is Clarified by the Ninth Circuit

A Ninth Circuit Bankruptcy Appellate Panel has ruled that certain tuition related amounts are dischargeable in bankruptcy.  Generally, education related debts are not able to be discharged.  However, the Panel’s ruling did not apply this exception because the financial aid in question was a non-monetary tuition credit offered by a for-profit university. The Panel described the …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2015/03/bankruptcy-treatment-of-education-debts-is-clarified-by-the-ninth-circuit/

Mar 13

Golf Channel May Lose Millions in Stanford Ponzi Clawback

The Ponzi scheme orchestrated by R. Allen Stanford is among the most notable of our time and the Golf Channel might find itself among its extensive list of victims.  The Fifth Circuit has given the go-ahead for the receiver to pursue $6 million of advertising fees paid by Stanford to the Golf Channel.  The basis …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2015/03/golf-channel-may-lose-millions-in-stanford-ponzi-clawback/

Jan 23

$1.5 Billion Clerical Error: Appellate Ruling Finds That Authorization Trumps Intent, Reverses Bankruptcy Court’s Opinion

In the recent matter of re: Motors Liquidation Co., et al. the Court of Appeals for the Second Circuit (the “Appellate Court”) ruled that a clerical error which unintentionally rendered $1.5 billion of debt unsecured due to the inclusion of an improper financial statement, was in fact authorized and thus enforceable. The Appellate Court determined …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2015/01/1-5-billion-clerical-error-appellate-ruling-finds-that-authorization-trumps-intent-reverses-bankruptcy-courts-opinion/

Dec 17

Ernst & Young gets settlement deal of the decade

E&Y just settled the Lehman Brothers class action against them for $99 million. It made little news. The 2008 Lehman Brothers bankruptcy was at least partially caused by accounting malfeasance. This article describes the bankruptcy examiner’s report on this wrongdoing. Arthur Andersen was entirely destroyed for a bad audit of Enron that was no worse …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2013/12/ernst-young-gets-settlement-deal-of-the-decade/

Apr 03

Valuations should carefully consider application of the income and market approach

In a recent bankruptcy case, a plaintiff valuation expert provided, without proper justification, 70% reliance on what the Court described as a biased application of the discounted cash flow (DCF) approach to value (an income approach)  to determine her appraisal conclusions. The discounted cash flow analysis is a commonly-used, and conceptually excellent method of performing …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2013/04/valuations-of-larger-companies-must-carefully-consider-the-market-approach/

Mar 15

Federal Claims Judge Approves AIG Classes in $55 Billion Class-action Lawsuit

shutterstock_2812098

In 2008, there were many complaints surrounding the US government bailout of AIG when it was on the verge of collapse and the disagreement as to whether that was the right course of action continues today. On Monday, March 11, US Court of Federal Claims Judge Thomas Wheeler approved two classes in what was initially …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2013/03/federal-claims-judge-approves-aig-classes-in-55-billion-class-action-lawsuit/

Jul 22

Bankruptcy: coming soon to a city near you

00009076

Three California cities have declared bankruptcy in a month. The most recent California city to declare bankruptcy is San Bernadino, following declarations by Stockton and Mammoth Lakes. According to the Los Angeles Times, San Bernardino’s budget is short $45 million, about ⅓ of its annual general fund budget, and may not make payroll in August. …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2012/07/bankruptcy-coming-soon-to-a-city-near-you/

Jul 09

Bankruptcy Filings Declining in the U.S.

shutterstock_62390641

Businesses and consumers filing bankruptcies declined 14 percent in the first half of 2012.  At this pace, bankruptcy filings could end the year with the lowest level of filings since before the 2008 financial crisis.  There were 632,130 new bankruptcy filings in the first six months of 2012, comprised of 30,946 business and 601,184 consumers …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2012/07/bankruptcy-filings-declining-in-the-u-s/

Jul 06

Fifth Time’s a Charm? Not Likely When it Comes to Bankruptcy.

00009076

Strauss Auto, an auto parts retailer, appears to have set a new record.  It is not likely one they were pursuing. The company is believed to be the only one in the history of the Bankruptcy Code to have entered into Chapter 11 bankruptcy five times (a move some are jokingly calling a Chapter 55 …

Continue reading »

Permanent link to this article: http://betweenthenumbers.net/2012/07/fifth-times-a-charm-not-likely-when-it-comes-to-bankruptcy/