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Kings Holdings Files For Chap 11

by Terry Keenan on July 1, 2011

Word World Files For Bankruptcy

by Scott Paul on February 14, 2011

Retail Watch: Ultimate Electronics Decides To Press Delete Button

February 10, 2011

Ultimate Acquisition Partners LP, the parent company of retailer Ultimate Electronics, has hired Gordon Brothers Retail Partners as consultant for the liquidation of its stores as part of its Chapter 11 bankruptcy reorganization. The company plans to begin closing sales immediately at all 46 of its stores. Prior to the commencement of its bankruptcy case late last month, Ultimate Electronics said it faced a variety of negative factors including…

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Dr. Philip Neches: Resolving the Mortgage Mess

February 8, 2011

Bank of America (NYSE: BAC) announced last Friday that they were creating a new subsidiary, Legacy Asset Servicing, to handle their 1.3 million troubled mortgages. They hoped that their announcement would get buried under the snow — and news about Egypt and the Super Bowl. Their wish seems to have come true. What does this move really mean? Permit me a somewhat cynical view, based on sad personal experience with corporate bankruptcy — as a director and investor. Usually, the hardest part in a bankruptcy is for the broke party to recognize the situation, much less admit to it. Every bankruptcy candidate bitterly resists even thinking about the process. You would think that near or actual catastrophe would overcome this reluctance. But that is a logical, not a human, analysis. BAC, like all of its fellow large banks, still cannot admit publicly the magnitude of their problems and how close to ultimate disaster they came in the fall of 2008. Most corporate bankruptcies start by trying a process known as reorganization under Chapter 11, after the part of the bankruptcy law involved. The company tries to make a plan that lets it continue in business, and gets temporary financing and relief from some of its obligations under the supervision of the bankruptcy court. During Chapter 11, the company has three goals: fix the problems that got it in trouble, stabilize its operations, and reposition itself to be a going concern after it emerges from the bankruptcy process. The TARP process was the equivalent of Chapter 11, with the Federal Reserve and the Treasury acting as both the “debtor in possession” lender and the bankruptcy judge. When put that way, the flaw in the idea becomes immediately obvious: the roles of lender and supervisor are inherently in conflict with each other. The lender, seeking to minimize its risks, pushes for strict controls over the operation of the bankrupt party; the supervisor has to balance the demands of all parties, including other creditors, employees, customers, and public. TARP clearly succeeded at one of the three goals of Chapter 11: stabilize operations. It did not, however, achieve the other two goals: fix the problems and reposition for the future. While the banks and the administration would like to declare success and move on, no bankruptcy judge would discharge the case at this point. Often, Chapter 11 does not succeed: the problems are too big and there is not enough time, money, and good will available. Could this be the case with BAC? Here’s a back-of-the-envelope analysis. Suppose that the average balance of the 1.3 million troubled loans is $200,000. Suppose that the best that can be done is to realize 50% of the nominal value of the loan. Suppose that every one of the remaining 13 million mortgages is perfectly good. Do the math, and that comes to a loss of $130 billion, just a whisker short of BAC’s $144 billion market capitalization. So what is this about? It could be the process of liquidation, which if it were done in bankruptcy court would be called Chapter 7 (again after the statutes involved). Chapter 7 is a complex set of rules, but it boils down to a few steps: Step 1: separate good assets and obligations from bad ones. Step 2: sell the good items for as much as possible. Step 3: write the rest down to zero. Step 4: disburse the proceeds, if any, as fairly as possible, Step 5: close the doors. BAC is doing Step 1. Clearly, they hope to survive the process, so that it is not Bank of America that will land at Step 5 and close its doors. This means that they are preparing to separate the Legacy Asset Servicing business from the BAC holding company at some future date. The bet is that some investor or group of investors will buy the “bad bank”, even if it’s just for $1. The benefit for the remaining “good bank” is obvious: it now has clearly positive net worth and is better positioned for the future. Chapter 11 success, at last. But what about the folks who buy the “bad bank”? The bet they would make is that they can manage the portfolio of troubled loans, foreclosures, personal bankruptcies, lawsuits, and claims better than BAC was doing. Just losing 49% instead of 50% on the portfolio would be an enormous upside. Of course, losing 51% instead of 50% would be an enormous loss, so this is not an adventure for the faint of heart or light of pocket. However, considering the low reputation Bank of America created for itself and its management prowess, this might be a really good bet for the right someone(s). All this seems like a constructive resolution of a problem so huge that it threatens not only BAC’s survival but the ability of the US economy to ever fully recover. BAC’s announcement left me wondering: Why hasn’t every other major bank already done this? Why is Bank of America leading what should be a parade? Why didn’t regulators, shareholders, and boards of directors force this action two years ago? Inquiring minds want to know. Disclosure: the author has been a Bank of America account holder since he was 6 years old and currently has a mortgage serviced by BAC. It is one of their good ones.

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Lease Down: Anchor Blue Calls It Quits, Closing 115 Stores

January 20, 2011

Anchor Blue Inc., a specialty retailer of casual apparel and accessories for the teenage market, filed a petition for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code with the Bankruptcy Court for the District of Delaware. Anchor Blue previously emerged from a restructuring in August 2009. Since then, the company has worked to implement a series of initiatives to position the business for future growth including introducing new merchandise…

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Lease Down: Anchor Blue Calls It Quits, Closing 115 Stores

January 20, 2011

Anchor Blue Inc., a specialty retailer of casual apparel and accessories for the teenage market, filed a petition for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code with the Bankruptcy Court for the District of Delaware. Anchor Blue previously emerged from a restructuring in August 2009. Since then, the company has worked to implement a series of initiatives to position the business for future growth including introducing new merchandise…

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Arthur Rosenfeld: Working Around Life’s Obstacles

January 16, 2011

Walks like a duck and talks like a duck, it has to be a duck, right? In a word, no. At least not in the case of Russell Bishop’s new offering Workarounds That Work — How to Conquer Anything that Stands in Your Way at Work . The title, subtitle and cover art all suggest yet one more addition to the huge library of business success books, yet there is a wonderful surprise lurking beneath the surface here. Bishop has a long and impressive track record solving problems and bringing people together as a corporate consultant for major corporations. In that role he has developed something of the voice of the elder statesman, not necessarily a member of the wink-and-nod crowd, but certainly a certain savvy and perhaps even gravitas. He’s a straight shooter and his chapter heads, ( It All Starts With You, Getting the Right Things Done, Misaligned Leadership and Unclear Direction, Death by Decision: Stop Deciding and Start Choosing, When the Best and Brightest Are Wrong , just to name a few) ring simple and true. Indeed, every one of the book’s 238 pages delivers something that smells like nuts and works like bolts — useful observations, information and techniques that help the reader look at the same old thing in a fresh and different way. Most of it isn’t startlingly new, but all of it is couched in a fashion that makes it feel like it is, and stimulates a different approach. That’s something, because unless we’re Einstein or Homer, it has all been said before. How many times, for example, have we read ways to stop procrastinating and just get down to work? How many times have we heard not to blame others for our own laziness and shortcomings? Plenty, and Bishop doesn’t go there. Instead, for example, he likens work to exercise. It’s there and you can duck and dance all you want, but it still has to get done. In the chapter titled The Email Avalanche he adds to the run of solid advice by giving the desk jockey’s nemesis a clever once-over. “Always change the ‘subject’ line to reflect what you’re doing,” he writes. “Use the Cc line for people who need to know about the action but do not have to take action themselves.” Ever thought of it quite that way? Hmm. In addition to tried-and-true recommendations for handling clutter, Bishop actually discusses screen dimensions in this chapter, reminding you that there may be important messages waiting below the line of your browser window. Nuts-and-bolts indeed. Admittedly, some of Bishop’s observations are standard corporate fare, as in the obvious concept (in the chapter Are You a Corporate Firefighter? ) that while it’s wonderful to be the hero, the need for repeated dramatic rescues reveals some fundamental mismanagement. On the other hand, there are some real gems. The chapter on making decisions, for instance, advances the innovative notion that we should substitute choosing for deciding. The word “decide”, Bishop says, suffers from the suffix “ide”, which is often associated with killing, as in fratricide, homicide, etc. Deciding, he writes, is a process of limitation, while choosing can be a creative, a positive and proactive process. In another particularly memorable passage, the author reminisces about the way spelling tests were graded when he was a child. -7, for example, or -4. Instead, he suggests, why not focus on how many answers we get right? This deceptively simple idea echoes one of the books recurring themes, which has to do with choosing positive options over negative ones. Many books in this category work their magic from the outside in. That is to say they examine the circumstances, obstacles and issues and propose external solutions. Other books in the genre turn this around and go from the inside out, looking at the prejudices, presuppositions, habits and addictions we harbor on the inside, and how they manifest in our external life. Workarounds That Work is a rare find in that it examines its topic from both directions. Thus, in addition to advice on how to organize your in boxes, we see lines like “What could you do that would make a difference in your job that requires no one’s approval, cooperation, support, or agreement other than your own?”, concepts like “time management problems are really self management problems”, and chapter heads like Multitasking Our Way to Oblivion , wherein Bishop cleverly proposes substituting the setting of multiple goals to the juggling of multiple tasks. The more you read, the more you realize that Workarounds That Work is a personal development guide hidden as a business handbook. Spirituality circulates through the book’s business meat and management gristle like blood through bone. It’s a treat of a read for a much wider swath of readers than its category feel would suggest. Here’s hoping that in his next book, this practical sage will be brave enough to cross the line he only touches with his toe in this one and give us his thoughts on the repurposing of business so that profits are not the Holy Grail, but rather merely a tool for the development of employees and community.

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Richard Gaudreau: How to Get Rid of a Second Mortgage Without a Loan Modification

January 3, 2011

Following the maxim that drastic times call for tepid measures, the banking industry continues to pay “lip service” to loan modifications while doing little. On Dec. 15, the Congressional Oversight Committee admitted the government’s HAMP loan modification program has failed to help enough homeowners to stem the tide of foreclosures. The vast majority of loan modification requests fail, in part, experts believe, because banks have balked at offering a reduction in mortgage principal, the most effective way to halt costly foreclosures. Trying to revive HAMP, the administration in December announced new regulations designed to push banks into offering more reductions in principal than they have in the past. Fannie Mae and Freddie Mac immediately proclaimed, however, that they remain opposed to making this option available to struggling homeowners. Protecting the interests of the banking industry over the consumer, the Federal Reserve also blocked new foreclosure regulations that would have reined in foreclosure abuses. Although the economic collapse of 2008 has caused the tide to rush in on everyone, there has been no bailout for the “little guy.” Left to fend for themselves, increasing numbers of homeowners are turning to a little-known provision in the federal bankruptcy law, which permits the discharge of a second or even third mortgage in its entirety in a Chapter 13 bankruptcy. The American Bankruptcy Institute recently reported that Chapter 13 bankruptcies have risen by 9 percent in 2010 compared to last year. Flying under the media radar, the right to discharge a second mortgage in a Chapter 13 bankruptcy provides a glimmer of hope to homeowners stuck with a foreclosure because they own a home they can’t afford and can’t sell. With one in 10 Americans out of work, while others have suffered a pay cut as a condition of keeping their jobs, the amount of disposable income available to pay a mortgage is not what is used to be. Getting rid of a 2nd mortgage payment can sometimes make the difference between keeping a home and losing it to a foreclosure. How then does a homeowner qualify? Quite simply, when a home is worth less than the balance of a first mortgage, federal bankruptcy law — at least in most states — permits a homeowner to treat a second mortgage like an unsecured credit card and discharge it in a Chapter 13 bankruptcy. Housing prices dipped for the third straight month in October, and hope for a recovery in 2011 has started to fade. According to Corelogic, an industry researcher, 11.8 million homes , or more than one out of five mortgages in the United States are “underwater” — i.e. the total mortgage debt exceeds the value of the home. The U.S. Department of the Treasury estimates eight to 13 million foreclosures will occur from December 2010 through 2012 unless something intervenes. Ironically, the HAMP requirement that a homeowner generally be at least 60 days behind on a mortgage in order to qualify has led to foreclosures on homes where the mortgage payment had been up to date. In fact, a recent National Consumer Law Center’s survey of 96 foreclosure attorneys in the US found that mortgage servicers began foreclosure proceedings against 2,500 of their clients even though a loan modification request was pending. Loan servicers do make more in fees from the foreclosure process than from the loan modification process, so this is not surprising. Bankruptcy is a business decision, no less for a homeowner than it was for General Motors when it filed a Chapter 11 bankruptcy. This economy has sent clients to my door that I seldom used to see — attorneys, physical therapists, nurses, college professors, and scores of people dependent on the real estate market for their livelihood. A bankruptcy is usually preceded by a loss of income, a divorce or medical issues, sometimes all three. Bankruptcy is not on anyone’s list of fun things to do, and clients only consider it when the alternative, like a foreclosure, is worse. Many have tried to do a short sale or loan modification to no avail and have found that the bank would rather foreclose. In New Hampshire, a homeowner will be responsible for a mortgage deficiency for 20 years. These problems will persist until the powers that be decide to offer more than half-measures to address the foreclosure crisis. For those facing the loss of their home and wondering whether a Chapter 13 bankruptcy may help get rid of a second mortgage, the following information may be helpful: (1) It is disingenuous of banks to lull homeowners into a false sense of security by scheduling a foreclosure auction when a loan mod request is pending. If this happens to you, don’t be too trusting when your bank tells you not to worry about the foreclosure because they’ll continue the auction if there’s no answer by the auction date. What they are really saying is if you are denied, the foreclosure will happen. One client told me that Bank of America won’t even consider continuing a foreclosure auction due to a loan mod request until it was 72 hours before the auction date. I regularly receive panicked calls from homeowners denied a loan mod just before the auction occurs. While a Chapter 13 stops a foreclosure automatically, given how busy most bankruptcy lawyers are these days, finding one who has time to do a court filing at the last minute may be difficult. (2) If you decide to see if you can get rid of a second mortgage, ask a broker to give you an opinion in writing of what your house is worth. Brokers will usually do this as a courtesy, figuring if you ever do decide to sell your house, you’ll go through them. Make sure you ask for the potential sales price rather than a list price, which may be somewhat inflated. If the estimate is less than the balance of your first mortgage, then removing it in a Chapter 13 bankruptcy is possible. (3) Even if you can get rid of a second mortgage, however, a Chapter 13 is not for everyone. Removing a second mortgage only works if you have enough income to complete the plan successfully. If the real problem is that you don’t have enough monthly cash flow to pay your first mortgage and other expenses, Chapter 13 won’t solve that problem. (4) Chapter 13 will permit strapped homeowners to discharge most or all of their credit card debt. It usually won’t discharge certain debt like taxes and student loans. (5) Before making a decision, you want to be sure you can keep all property. Most states have exemptions sufficient to permit a homeowner to keep a house, vehicles, and other assets, however, some states are more generous than others. The above is not intended as legal advice for your particular situation. Questions should be addressed to attorneys admitted to practice within your state. Richard Gaudreau is a lawyer admitted to practice in New Hampshire and Massachusetts and may be reached by email at: richard@attorneygaudreau.com or by phone at: 603-893-4300.

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GGP Reorganization Results in CRE Fundraising Surge

December 16, 2010

Companies and funds reported raising $13.2 billion in November for commercial real estate-related investments and financing. The amount was about $5 billion more than was raised in October – all of which was to be used to complete the financial restructuring of General Growth Properties, which exited Chapter 11 bankruptcy reorganization last month. The monthly amount raised brings the total inflow for the first 11 months of the year to more than…

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ISCEBS Elects Haraden President of Boston Chapter

December 14, 2010

BOSTON, MA–(Marketwire – December 14, 2010) – Patrick J. Haraden, a principal of Longfellow Benefits, was elected president of the Greater Boston Chapter of the International Society of Certified Employee Benefit Specialists at its annual meeting.

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ISCEBS Elects Haraden President of Boston Chapter

December 14, 2010

BOSTON, MA–(Marketwire – December 14, 2010) – Patrick J. Haraden, a principal of Longfellow Benefits, was elected president of the Greater Boston Chapter of the International Society of Certified Employee Benefit Specialists at its annual meeting.

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American Media Files For Chap 11

November 21, 2010

American Media and its 15 affiliates have filed for Chapter 11 protection in the US Bankruptcy Court

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Retail Watch: Lack’s Lacks Cash, Closing Down Its 36 Stores

November 18, 2010

Lack’s Stores Inc., one of the largest independently owned retail furniture chains in the U.S. with 36 stores, is closing up shop. The Victoria, TX-based retailer filed for Chapter 11 bankruptcy reorganization but in its filing said has not been able…

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Loehmanns Files For Chap 11

November 16, 2010

Discounted designer goods seller Loehmanns has filed for Chapter 11 to reduce its debt by 115 million

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The Gloucester County Chapter of American Red Cross Appoints South Jersey Attorney Scott H. Marcus to the Board of Directors

November 11, 2010

WASHINGTON TOWNSHIP, NJ–(Marketwire – November 11, 2010) – Scott H. Marcus, president of Scott H. Marcus & Associates , a South Jersey law firm specializing in corporate law, commercial litigation, debt collection , bankruptcy and real estate matters, has been appointed to the Board of Gloucester County Chapter of the American Red Cross.

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General Growth, Split Into Two Companies, Emerges from Historic Bankruptcy

November 11, 2010

General Growth Properties Inc. (NYSE: GGP) emerged from Chapter 11 restructuring this week, along with Howard Hughes Corp. (NYSE: HHC), a separate publicly traded company spun off by GGP consisting of the former company’s portfolio of master-planned communities…

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Simba Analyst Investigates Thompson Publishing’s Chapter 11 Filing

October 5, 2010

STAMFORD, CT–(Marketwire – October 5, 2010) –  Thompson Publishing Group (Washington), whose publications focus on regulatory compliance advice for professionals, this month filed for Chapter 11 bankruptcy protection as a result of the poor economy and having to compete against more free content available online, reports Simba.

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Retail Watch: Blockbuster Files Chapter 11; Immediately Closes 145 Stores

September 30, 2010

Blockbuster Inc., a Dallas-based global provider of rental and retail movie and game entertainment through 3,306 stores in the U.S., filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Southern District of New York. And store closings…

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Blockbuster Set To File For Chap 11

September 27, 2010

US movierental chain Blockbuster is set to file for Chapter 11 bankruptcy within the next few days

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Ambac Files For Chap 11 Bankruptcy

September 11, 2010

Ambac Financial Group has filed for bankruptcy under Chapter 11

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ISE Files for Chapter 11 Bankruptcy Protection

August 10, 2010

SAN DIEGO, CA–(Marketwire – August 10, 2010) –  ISE Limited ( TSX : ISE ) announced today that its principal operating subsidiary, ISE Corporation (a California corporation) has filed a voluntary petition to reorganize its business under Chapter 11 of the United States Bankruptcy Code. The filing was made in the United States Bankruptcy Court for the Southern District of California. 

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This Week in Retail: General Growth Properties Files Plan To Split into Two Firms

July 14, 2010

General Growth Properties Inc. filed its proposed plan of reorganization to emerge from Chapter 11 protection this past week. GGP said expects to emerge from its financial restructuring with a significantly improved balance sheet and substantially…

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TLC Vision Completes Financial Restructuring

May 20, 2010

Emerges From Chapter 11 With Strong New Capital Structure; Announces New Board of Directors

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TLC Vision Completes Financial Restructuring

May 20, 2010

Emerges From Chapter 11 With Strong New Capital Structure; Announces New Board of Directors

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New England Clean Energy Council Appoints Peter Rothstein to President

April 28, 2010

Venture Capitalist and Entrepreneur Succeeds Nick d’Arbeloff as Council Begins Next Chapter in the Region’s Clean Energy Development

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Firstgold Releases Control of All Assets to Secured Lenders

April 26, 2010

TORONTO–(Marketwire – April 26, 2010) –  Firstgold Corp. ( PINKSHEETS : FGOCQ ) on January 27, 2010 voluntarily filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. The filing was made in the United States Bankruptcy Court, District of Nevada (Case #10-50215). Since the date of that filing Firstgold’s current management continued to operate the Company as debtor-in-possession subject to the supervision and orders of the Bankruptcy Court.

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Point Blank Solutions Files Voluntary Petition for Chapter 11 Reorganization; Reaches Agreement to Obtain Debtor-in-Possession Financing for up to $20 Million

April 14, 2010

POMPANO BEACH, FL–(Marketwire – April 14, 2010) –  Point Blank Solutions, Inc. ( OTCBB : PBSO ), a leader in the field of protective body armor, today announced that the Company and its subsidiaries have filed a voluntary petition for Chapter 11 reorganization. The Company also announced that it has reached an agreement for up to $20 million of Debtor-in-Possession (“DIP”) financing, pending bankruptcy court approval. 

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Station Casinos Files Chap 11 Exit Plan

March 27, 2010

Station Casinos has filed for a reorganization plan to emerge from Chapter 11 protection

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Station Casinos Files Chap 11 Exit Plan

March 27, 2010

Station Casinos has filed for a reorganization plan to emerge from Chapter 11 protection

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Bankruptcy Bloodbath May Hit Muni Bond Owners Next: Joe Mysak

February 10, 2010

Commentary by Joe Mysak Feb. 10 (Bloomberg) — Public officials shouldn’t think about filing for Chapter 9 municipal bankruptcy to solve mounting labor costs and pension liabilities. Even talking about this action will invite an inquiry from Fitch Ratings, the company said in a report published Jan. 27. “The more bankruptcy is publicly discussed as an option for financial relief, the more its tarnish wears off, increasing the likelihood of its actual use,” Fitch said. The biggest financial crisis since the Great Depression is squeezing municipalities across the country. Since Vallejo, California, successfully petitioned for bankruptcy protection in May 2008, California’s towns, Detroit’s schools and Pennsylvania’s capital city of Harrisburg have all talked about Chapter 9. That should make bondholders nervous because it “questions whether a local government’s labor contracts would be surgically undone with bondholders’ rights left intact,” Fitch said. Or as John H. Knox , a partner with Orrick, Herrington & Sutcliffe in San Francisco, which is counsel to Vallejo in its bankruptcy, said in an interview: “Any plan is going to impair all classes of creditors, including bondholders.” Share Losses Vallejo, a city of 117,000 on San Francisco Bay, wants to roll back salary and benefits, cut services — and reduce debt payments. “No interest would accrue for four years, and general fund principal and interest payments would be suspended for three years,” the city’s workout plan states. This might save the municipality, or, depending upon your point of view, cost investors, $13.4 million. Fitch is concerned that if Vallejo’s plan is approved, it may set a precedent. “At least some classes of bondholders must share in losses along with other creditors,” the rating company’s statement said. Stiffing bondholders, even a little bit, would be unusual in the tax-exempt market, said James E. Spiotto , a partner at Chapman & Cutler in Chicago and a municipal bankruptcy specialist. That’s because most municipalities don’t go out of business in bankruptcy and need ready access to the credit market in order to borrow money. Reducing interest rates and extending repayment terms to bondholders are the usual strategies. Hard Choices Investors have long taken for granted municipalities’ ability and willingness to make bond payments. More Chapter 9 bankruptcies might force buyers to cast aside such assumptions. Public officials’ capacity to make unpopular decisions might become as important as the state of a community’s finances. Local governments have been reluctant to reduce headcount during the recession. Since employment peaked at 115.6 million in December 2007, businesses have cut 8.5 million jobs, a 7.4 percent reduction. Local governments , by contrast, continued adding employees through September 2008, to a high of 14.6 million and have since fired 141,000 workers, or 0.96 percent, according to the U.S. Bureau of Labor Statistics. “In most states, labor laws applicable to public employee contracts place numerous restrictions on revising labor agreements, even if the agreements are pushing the municipality toward bankruptcy,” Orrick’s Knox and colleague Marc Levinson wrote in “Municipal Bankruptcy: Avoiding and Using Chapter 9 in Times of Fiscal Stress,” a booklet published in 2009. “However, if all parties realize that failure to modify extant agreements would likely land the municipality in bankruptcy court, all parties should be willing to work very hard to achieve consensual modification of burdensome agreements.” Rare Option Chapter 9 bankruptcy is rare, according to the American Bankruptcy Institute in Alexandria, Virginia. Only six occurred during the first three quarters of 2009, the latest period for which data is available. There were four in 2008. Since 1980, we’ve seen 227 instances, the peak year being 1991, with 18. Most have involved utilities or special districts, according to Spiotto, not cities or counties. States can’t enter Chapter 9 bankruptcy, and 26 of them prohibit their municipalities from filing, according to Knox and Levinson. “A municipality in those states must seek enactment of a specific statute particular to it authorizing the filing. It goes without saying that a floundering municipality faces an uphill battle in such states.” That hasn’t stopped municipalities from talking about it more than they have since 1994, when Orange County, California, suffered through the country’s biggest municipal bankruptcy. Bondholders have to worry if it’s more than just talk. ( Joe Mysak is a Bloomberg News columnist. The opinions expressed are his own.) Click on “Send Comment” in the sidebar display to send a letter to the editor. For Related News and Information: To contact the writer of this column: Joe Mysak in New York at jmysakjr@bloomberg.net

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BOOM TIMES FOR BANKRUPTCY: Filings reach four-year high in 2009, fueled by joblessness, eroded real estate values

February 7, 2010

of every 10 bankruptcies in the state are filed for a Chapter 7 liquidation, where most or all debt is erased. Driving forces behind the increase in bankruptcies are high unemployment or underemployment and eroded real estate values, according to local

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Movie Gallery Files Bankruptcy, Closing 800+ Stores

February 2, 2010

Late Tuesday night, the country’s second largest movie rental chain, Movie Gallery, brought to fruition circulating rumors that it would file Chapter 11. Like most retailers, Movie Gallery was hit hard from lack of consumer demand during the recession…

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Movie Gallery May Close Another 1,000 Stores

January 22, 2010

Movie Gallery Inc. could close another 1,000 stores, and/or file Chapter 11 (again) in efforts to restructure the company, reported the Wall Street Journal, citing people familiar with matter. However, a bankruptcy or official number of closures has yet…

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Capmark Investments Joins Parent in Bankruptcy

January 20, 2010

Capmark Investments LP, a subsidiary guarantor of Capmark Financial Group Inc.’s corporate debt obligation, is joining Capmark Financial and its other subsidiary guarantors in its Chapter 11 proceedings. As of Sept. 30, Capmark Investments managed nearly…

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Capmark Investments Files for Bankruptcy

January 15, 2010

lender Capmark Financial Group, filed for bankruptcy in a bid to sell its management contracts and interests in real estate equity funds. Capmark Investments listed assets and debt of at least $1 billion on a Chapter 11 petition on Friday in Bankruptcy

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Business Briefing | Legal: Capmark Investments Files for Bankruptcy

January 15, 2010

lender Capmark Financial Group, filed for bankruptcy in a bid to sell its management contracts and interests in real estate equity funds. Capmark Investments listed assets and debt of at least $1 billion on a Chapter 11 petition on Friday in Bankruptcy

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U.S. Bankruptcy Court Confirms BMHC’s Plan of Reorganization

December 18, 2009

BMHC to Emerge From Chapter 11 at Start of New Year

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TRUSTe Names Chris Babel as CEO

December 8, 2009

Security Software Industry Veteran Will Lead Next Chapter in Company’s Growth

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CIT Bankruptcy Could Hurt Apparel

November 2, 2009

This weekend’s Chapter 11 filing by CIT Group apparently has big ramifications for the retail industry, especially apparel. The firm works with 2,000 vendors that supply merchandise to 300,000 stores and finances about 60% of the apparel industry, according to the Associated Press. The good news, according to a National Retail Federation spokesperson, is that most

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Bank Watch: Capmark Financial Group Goes Chapter 11

October 28, 2009

Capmark Financial Group Inc. and some of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. Capmark intends to use the reorganization process to implement a restructuring that reduces its corporate debt…

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Bank Watch: Capmark Financial Group Goes Chapter 11

October 28, 2009

Capmark Financial Group Inc. and some of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. Capmark intends to use the reorganization process to implement a restructuring that reduces its corporate debt…

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Bank Watch: Capmark Financial Group Goes Chapter 11

October 28, 2009

Capmark Financial Group Inc. and some of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. Capmark intends to use the reorganization process to implement a restructuring that reduces its corporate debt…

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Bank Watch: Capmark Financial Group Goes Chapter 11

October 28, 2009

Capmark Financial Group Inc. and some of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. Capmark intends to use the reorganization process to implement a restructuring that reduces its corporate debt…

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Bank Watch: Capmark Financial Group Goes Chapter 11

October 28, 2009

Capmark Financial Group Inc. and some of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. Capmark intends to use the reorganization process to implement a restructuring that reduces its corporate debt…

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Cubs Bankruptcy: Chicago Cubs File Chapter 11 To Ease Sale

October 12, 2009

NEW YORK — The Chicago Cubs baseball team filed for Chapter 11 bankruptcy protection Monday, a step that will allow its corporate parent to sell the team in an $845 million deal. The filing in Wilmington, Del., was anticipated and is expected to lead to a brief stay in Chapter 11 for the Cubs. It comes as part of the Tribune Co.’s plans to sell the team, Wrigley Field and related properties to the family of billionaire Joe Ricketts, the founder of Omaha, Neb.-based TD Ameritrade. Tribune, which also owns the Chicago Tribune and the Los Angeles Times, filed for bankruptcy protection in December, but the Cubs were not included in the filing. The team’s run through Chapter 11 is expected to protect its new owners from potential claims by Tribune creditors. Tribune bought the Cubs in 1981 for $20.5 million from candy maker Wm. Wrigley Jr. Co. It announced plans to sell the franchise in 2007, but got tripped up by the recession and the collapse of the credit markets. It has agreed to sell the Ricketts family a 95 percent stake in a deal that tops the record $660 million paid for the Boston Red Sox and its related properties in 2002. Tribune Co. is keeping the remaining 5 percent. The Cubs’ bankruptcy filing is not the first for a Major League Baseball team. The Baltimore Orioles were sold in a bankruptcy auction in 1993 after owner Eli Jacobs filed for Chapter 11. The same happened to the Seattle Pilots after the 1969 season. The new owners moved the team to Milwaukee and changed the name to the Brewers. The National Hockey League’s Phoenix Coyotes, a franchise that has yet to make a profit since moving from Winnipeg, Manitoba, in 1996, filed for Chapter 11 protection in May.

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Goldman Sachs To Be Paid $1 Billion If Citi Fails; Taxpayers Would Lose $2 Billion

October 4, 2009

Goldman Sachs stands to receive a payment of $1bn — while US taxpayers would lose $2.3bn — if embattled commercial lender CIT files for Chapter 11 bankruptcy protection, people familiar with the matter said.

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U.S. Shipping Partners Plan of Reorganization Confirmed by Bankruptcy Court

October 1, 2009

Company Expected to Emerge From Pre-Arranged Chapter 11 by Mid-October

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Calm before the bankruptcy storm (Stuff)

September 27, 2009

US bankruptcy professionals have noted a curious calm in the pace of corporate Chapter 11 filings, but don’t relax yet, they say. A recent slowdown just marks a calm period before another storm of business collapses.

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Lease Cancellations: ADS Logistics Packs Up Some Facilities

September 9, 2009

ADS Logistics filed for Chapter 11 bankruptcy reorganization earlier this month. ADS provides integrated transportation, distribution and logistics services for the metals industry. It operates a nationwide network of warehousing, shipping and distribution…

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