Mar 30
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 …
Permanent link to this article: https://betweenthenumbers.net/2015/03/bankruptcy-treatment-of-education-debts-is-clarified-by-the-ninth-circuit/
Mar 13
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 …
Permanent link to this article: https://betweenthenumbers.net/2015/03/golf-channel-may-lose-millions-in-stanford-ponzi-clawback/
Permanent link to this article: https://betweenthenumbers.net/2015/01/1-5-billion-clerical-error-appellate-ruling-finds-that-authorization-trumps-intent-reverses-bankruptcy-courts-opinion/
Dec 17
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 …
Permanent link to this article: https://betweenthenumbers.net/2013/12/ernst-young-gets-settlement-deal-of-the-decade/
Apr 03
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 …
Permanent link to this article: https://betweenthenumbers.net/2013/04/valuations-of-larger-companies-must-carefully-consider-the-market-approach/
Mar 15
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 …
Permanent link to this article: https://betweenthenumbers.net/2013/03/federal-claims-judge-approves-aig-classes-in-55-billion-class-action-lawsuit/
Jul 06
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 …
Permanent link to this article: https://betweenthenumbers.net/2012/07/fifth-times-a-charm-not-likely-when-it-comes-to-bankruptcy/
Jan 23
$1.5 Billion Clerical Error: Appellate Ruling Finds That Authorization Trumps Intent, Reverses Bankruptcy Court’s Opinion
January 23, 2015
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 …
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