Q&A on Municipalities and Chapter 9 Bankruptcy
|
|
- Sophia Fitzgerald
- 6 years ago
- Views:
Transcription
1 Q&A on Municipalities and Chapter 9 Bankruptcy Introduction There has been much concern of late regarding the performance of municipal bonds and pending defaults. Some in the industry have gone as far as predicting the extent of the defaults and when they will likely occur. With the size of the U.S. municipal bond market nearing $3 trillion, and in light of the recent financial crisis and the debt ceiling debates, there is cause for concern. To better serve our clients with respect to the analysis and valuation of municipal bonds, Black Swan Consulting researched the Chapter 9 bankruptcy process as outlined in the federal Bankruptcy Code and arranged its findings in a question and answer format. This Q&A seeks to address the most frequently asked questions and least understood aspects bondholders might have regarding Chapter 9 bankruptcies. What is Chapter 9 bankruptcy? In a Chapter 9 bankruptcy, a municipality s assets are not liquidated to pay creditors. Rather, the assets are reorganized through an adjustment of debts to allow for future performance. 1 Chapter 9 bankruptcy should not be confused with Chapter 11 bankruptcy, also known as corporate bankruptcy, which is mainly utilized by businesses seeking to reorganize their financial affairs through a repayment plan. Under Chapter 9, reorganization is accomplished through a plan of adjustment which typically involves extending debt maturities, reducing the amount of principal or interest, and/or refinancing the debt by obtaining a new loan. What does it mean for a municipality to default? The term default has been used somewhat broadly in the news with respect to municipal bonds. A careful distinction should be made between two kinds of default: monetary and technical. A monetary default occurs when the issuing municipality fails to pay principal, interest, or both, when due. 2 A technical default occurs when the issuing municipality fails to meet its legal obligations according to the bond contract (indenture). Examples of technical defaults can include failing to charge rates sufficient to meet rate covenants, failing to maintain insurance on the project and/or failing to maintain a certain level of capital (reserves). 3 Does a municipality that defaults automatically go into Chapter 9? A municipality that defaults on its bonds, whether due to monetary or technical reasons, may not necessarily go into Chapter 9 bankruptcy. There are economic and political reasons why a municipality may want to avoid Chapter 9 bankruptcy altogether and if available, seek state alternatives. Many states have set up mechanisms to help a municipality avoid Chapter 9 bankruptcy which is a federal proceeding. Chapter 9 does not lift from the municipality the 1 11 U.S.C Id.
2 burdens imposed upon it by state laws. 4 To the extent that Chapter 9 impairs or limits state control of the municipal debtor, the state will have standing to challenge this under 903 of the Bankruptcy Code. Who is eligible to file for Chapter 9? Chapter 9 bankruptcy is available only to a municipality. 5 Municipality is defined under the federal Bankruptcy Code as a political subdivision or public agency or instrumentality of a State. 6 Municipalities include counties, cities, towns, villages, municipal utilities, school districts, and other taxing districts. The Bankruptcy Code s definition of municipality does not include states. In addition, municipality filings must be voluntary; this means that creditors cannot file an involuntary bankruptcy case against a municipality. What are the prerequisites for filing a petition for bankruptcy? Section 109(c) of the Bankruptcy Code lists four additional eligibility requirements. The debtor municipality: (1) must be specifically authorized to file under state law in its capacity as a municipality, or by name 7 ; (2) is insolvent 8 ; (3) desires to effect a plan to adjust such debts 9 ; and (4) must satisfy one of the four creditor negotiation requirements for Chapter 9 bankruptcy. It must either (i) have obtained agreement to a reorganization plan by a majority of creditors whose claims it intends to impair; or (ii) have negotiated in good faith with creditors and failed to obtain agreement; or (iii) be unable to negotiate with creditors because negotiations are impracticable; or (iv) reasonably believes that a creditor may attempt to obtain an avoidable preference U.S.C U.S.C. 109(c) 6 11 U.S.C. 101(40) 7 11 U.S.C. 109(c)(2) 8 11 U.S.C. 109(c)(3); The term insolvent, as defined under 11 U.S.C. 32(C), with reference to a municipality is a financial condition such that the municipality is (i) generally not paying its debts as they become due unless such debts are the subject of a bona fide dispute; or (ii) unable to pay its debts as they become due U.S.C. 109(c)(4) In a case under Chapter 9, only a debtor may file a plan for adjustment of debts creditors may not propose and file competing plans U.S.C. 109(c)(5) 2
3 How is a Chapter 9 case commenced? A municipal debtor commences a Chapter 9 bankruptcy by filing the bankruptcy petition. In addition, a Notice of Commencement must be published in a local newspaper for three consecutive weeks and be published in a newspaper which has a general circulation among bond dealers and bond holders. 11 The municipal debtor must also file a list of creditors, usually filed along with the petition. 12 However, the bankruptcy court has discretion to fix a different time for filing the list of creditors if the debtor is unable to prepare the list of creditors in the form and with the detail required by the Bankruptcy Rules at the time of filing. 13 What is the role of the court in a Chapter 9 proceeding? A bankruptcy court s powers are limited in a Chapter 9 proceeding. Absent consent by the municipal debtor, the court may not interfere with the municipal debtor s: (i) political or governmental powers; (ii) property or revenues; or (iii) use or enjoyment of income producing property. 14 As a result, the power of a bankruptcy court in a Chapter 9 case is effectively limited to: (i) (ii) (iii) (iv) determining whether the municipality is eligible to file for Chapter 9 protection; confirming or denying confirmation of a plan of adjustment; approving the assumption or rejection of executory contracts and unexpired leases; and dismissing the Chapter 9 case when appropriate. Is there a deadline for filing the plan of adjustment? The Bankruptcy Code does not fix a specific deadline by which the municipal debtor must file a plan. If the plan is not filed with the petition, the debtor will be required to file a plan at a later date determined by the bankruptcy court. 15 Are there any minimum requirements for the plan of adjustment? The Bankruptcy Code requires that all classes either be unimpaired or have accepted the plan. 16 If the plan proposes treatment for a class of creditors such that the class is impaired, then acceptance by that class is required. Should any class of claims be impaired under the plan, the court may confirm the plan only if at least one impaired class has accepted the plan. 17 As long as one impaired class of creditors consents to the plan, plan confirmation is still possible under the ʺcram downʺ provisions of 11 U.S.C. 1129(b). Under ʺcram down,ʺ if all other requirements are met except the Bankruptcy Code requirement that all classes either be unimpaired or have accepted the plan, then the plan is confirmable if it does not discriminate unfairly and is fair and U.S.C U.S.C Fed. R. Bankr. P U.S.C U.S.C U.S.C. 1129(a)(8) U.S.C. 1129(a)(10) 3
4 equitable. 18 What this means is that if a bankruptcy court judge finds that the plan does not discriminate unfairly and is fair and equitable, the municipality can proceed to Chapter 9 bankruptcy, hence cram down over the objection of creditors. Who may object to the plan? Creditors whose claims are affected by the plan, an organization of employees of the debtor, special taxpayers, as well as the Securities and Exchange Commission (SEC) may object to the plan. 19 What happens once a Chapter 9 plan is confirmed? Once a Chapter 9 plan is confirmed by the bankruptcy court, the municipal debtor s former obligations are replaced by the new obligations outlined under the confirmed plan. As mentioned above, the plan of adjustment typically involves extending debt maturities, reducing the amount of principal or interest, and/or refinancing the debt by obtaining a new loan. What can a creditor do when a municipality files for Chapter 9? The Bankruptcy Code permits objections to the petition. 20 The court may dismiss a petition if it determines that the debtor did not file the petition in good faith or that the petition does not meet the requirements of title 11, the chapter of the Bankruptcy Code that deals with reorganization. 21 A court may also dismiss a petition for: (i) (ii) (iii) (iv) (v) lack of prosecution; unreasonable delay; failure to propose a plan within the time the court has stipulated; material default under a plan; and other causes. If the court dismisses a petition, creditors are returned to their pre petition state, with their nonbankruptcy procedural and substantive rights under state law. If the petition is not dismissed upon an objection, the Bankruptcy Code requires the court to order relief, allowing the case to proceed under Chapter How much will a Chapter 9 bankruptcy cost and how long will a take? The Code does not have a provision regarding cost. And outside of 11 U.S.C. 921(c), which says a court may dismiss a petition for unreasonable delay, or failure to propose a plan within the time the court has stipulated, the Bankruptcy Code does not have a rule regarding the duration of a Chapter 9 bankruptcy. However, if prior cases are any indication, bondholders can expect the process to be long and expensive. Orange County, California filed for Chapter 9 bankruptcy in December 1994 and emerged eighteen months later, in Vallejo, California filed for U.S.C. 1129(a)(8) U.S.C. 901(a), 943, 1109, 1128(b) U.S.C. 921(c) 21 Id U.S.C. 921(d) 4
5 bankruptcy in April of The city won approval for its financial plan to exit bankruptcy protection in July As of this writing, a Bank of America report estimates that Vallejo has already spent about $10 million in legal fees. 24 What is the role of creditors in Chapter 9? The role of creditors is more limited in a Chapter 9 case than in other bankruptcy cases. There is no first meeting of creditors, and creditors may not propose competing plans. If certain requirements are met, the municipal debtorʹs plan is binding on dissenting creditors. In each Chapter 9 case, however, there is a creditorsʹ committee that has powers and duties that include: (i) (ii) (iii) selecting and authorizing the employment of one or more attorneys, accountants, or other agents to represent the committee; consulting with the debtor concerning administration of the case; investigating the acts, conduct, assets, liabilities, and financial condition of the debtor; participating in the formulation of a plan; and (iv) performing such other services as are in the interest of those represented. 25 Is there a priority among different types of bondholders? Chapter 9 bankruptcy draws a distinction between general obligation bondholders and special revenue bondholders. By definition, general obligation bonds are backed by the full faith and credit of the issuing municipality. This means the bonds are backed by the taxing power of the municipality. However, in Chapter 9, a court may treat general obligation bonds not secured by a pledge of any specific revenue or assets as general unsecured debt. As such, the municipality is not required to make payments of either principal or interest on such bonds during the Chapter 9 bankruptcy. In addition, general obligation bonds are subject to negotiation and possible restructuring under the plan of adjustment. Special revenue bonds differ in that they are secured by a pledge of a specific stream of income often a particular tax or revenues generated by a utility or other project. Special revenue bondholders, by contrast, maintain their collateral security and can expect to receive payment on such bonds during the Chapter 9 case, if revenues are available. 26 In addition, the automatic stay (which goes into effect when a Chapter 9 petition 23 _July/Judge_approves_Vallejo,_Calif bankruptcy_exit_plan/ U.S.C. 901(a), U.S.C 922(d). Special revenues is defined under 11 U.S.C. 902(2) as (A) receipts derived from the ownership, operation, or disposition of projects or systems of the debtor that are primarily used or intended to be used primarily to provide transportation, utility, or other services, including the proceeds of borrowings to finance the projects or systems; (B) special excise taxes imposed on particular activities or transactions; (C) incremental tax receipts from the benefited area in the case of tax increment financing; (D) other revenues or receipts derived from particular functions of the debtor, whether or not the debtor has other functions; or (E) taxes specifically levied to finance one or more projects or systems, excluding receipts from general property, sales, or income taxes (other than tax increment financing) levied to finance the general purposes of the debtor; 5
6 is filed and prohibits creditors from attempting to collect a debt from the municipality, its elected officials or officials and the municipality s taxpayers 27 ) does not apply to pledged special revenues as long as the pledge is consistent with 11 U.S.C. 928, which ensures that a lien of special revenues is subordinate to the operating expenses of the project or system from which the revenues are derived. 28. Bondholders should refer to the bond agreement and be aware of this distinction between the general obligation bondholders and special revenue bondholders. Conclusion The Bankruptcy Code provides a general framework as to how a Chapter 9 bankruptcy shall proceed. In a Chapter 9 proceeding, the bankruptcy court s powers are limited.to ensuring that the municipal debtor acts in accordance with the general framework. It is then left to the municipal debtor and its creditors to reach some agreement on an acceptable reorganization plan. Therefore, how much bondholders will recover will inevitably vary from case to case based on their reorganization plan. (3) ʺspecial tax payerʺ means record owner or holder of legal or equitable title to real property against which a special assessment or special tax has been levied the proceeds of which are the sole source of payment of an obligation issued by the debtor to defray the cost of an improvement relating to such real property; (4) ʺspecial tax payer affected by the planʺ means special tax payer with respect to whose real property the plan proposes to increase the proportion of special assessments or special taxes referred to in paragraph (2) of this section assessed against such real property; and (5) ʺtrusteeʺ, when used in a section that is made applicable in a case under this chapter by section 103(e) or 901 of this title [11 USCS 103(e) or 901], means debtor, except as provided in section 926 of this title [11 USCS 926] U.S.C. 922(a)(1) U.S.C. 922(d); 11 USC 928(b); The automatic stay is an injunction that prevents creditors from filing or continuing lawsuits or other collection activities against the debtor 11 U.S.C
Municipality must be specifically authorized under state law to be a chapter 9 debtor
Chapter 9 Basics H. Slayton Dabney, Jr. King & Spalding LLP 1185 Avenue of Americas New York, NY 10036-4003 212-556-2287 Eligibility Requirements.. Must be a municipality (political subdivision or public
More informationDUTIES AND OBLIGATIONS OF SMALL BUSINESS REORGANIZING UNDER CHAPTER 11 OF THE BANKRUPTCY CODE
DUTIES AND OBLIGATIONS OF SMALL BUSINESS REORGANIZING UNDER CHAPTER 11 OF THE BANKRUPTCY CODE In a Chapter 11 case, the party filing the case is referred as a debtor. Upon filing, the debtor automatically
More informationWhen City Hall Moves to the Bankruptcy Courthouse (Chapter 9 and AB 506)
When City Hall Moves to the Bankruptcy Courthouse (Chapter 9 and AB 506) County Counsels Association of California 2012 Annual Meeting September 12-14, 2012 San Diego, California Presented By Allan H.
More informationNORTHERN DISTRICT OF CALIFORNIA GENERAL ORDER 34. converted to chapter 13 on or after December 1, 2017, all chapter 13
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 In re CHAPTER 13 DEBT ADJUSTMENT CASES UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA (a) Mandatory Form Plan. GENERAL
More informationChapter 11 for Individuals and Small Businesses. A Primer on Small Chapter 11 Cases
Chapter 11 for Individuals and Small Businesses A Primer on Small Chapter 11 Cases Chapter 13 v. Chapter 11 Debt limitations and eligibility under 11 U.S.C. 109(e) Individuals and Companies Semi-superdischarge
More informationEXHIBIT 7 1 Flow Chart for Chapter 12
EXHIBIT 7 1 Flow Chart for Chapter 12 The Filing of the Chapter 12 Petition The debtor files with the bankruptcy court clerk s office: 1. Filing fee and administrative fee 2. Voluntary petition (Official
More informationUNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF GEORGIA DIVISION CHAPTER 13 PLAN. Extension ( ) Composition ( )
UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF GEORGIA DIVISION IN RE ) Case no: ) ) Chapter 13 ) Debtor ) CHAPTER 13 PLAN Extension ( ) Composition ( ) You should read this Plan carefully and discuss
More informationPuerto Rico Federal Bar Association Seminar
Puerto Rico Federal Bar Association Seminar Modification or Discharge of Debt In a Chapter 9 Case and How This Could Be Relevant To Puerto Rico ZACK A. CLEMENT Partner Fulbright & Jaworski LLP Norton Rose
More informationModification or Discharge of Debt In a Chapter 9 Case. How will it affect you? How can you
Modification or Discharge of Debt In a Chapter 9 Case How will it affect you? How can you prepare p to deal with it? October 20, 2011 I. What is a municipality that may file a Chapter 9 case? A. Under
More informationUNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF LOUISIANA
UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF LOUISIANA * * * * * * * * * * * * * * * * * * * IN RE: * * * ENTERGY NEW ORLEANS, INC. * Debtor * * * * * * * * * * * * * * * * * * * * * Case
More informationOfficial Form 113 Chapter 13 Plan 12/15
Draft - 05/13/2013 United States Bankruptcy Court for the District of Debtor(s): Case No.: Date: Check if this is an amended plan Official Form 113 Chapter 13 Plan 12/15 Part 1: Notice to Interested Parties
More informationUNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY
UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY Last revised 9/1/10 In Re: Case No.: Judge: Chapter: 13 Debtor(s) Chapter 13 Plan and Motions Original Modified/Notice Required Discharge Sought Motions
More informationChapter 9 Municipal Bankruptcy Primer. By Harold L. Kaplan and Mark F. Hebbeln
Chapter 9 Municipal Bankruptcy Primer By Harold L. Kaplan and Mark F. Hebbeln 26 ABA Trust & Investments November-DECEMBER 2010 While the Chapter 9 municipal bankruptcy provisions of the Bankruptcy Code
More informationUNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY
UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY IMPORTANT NOTICE TO THE BAR AND PUBLIC CONCERNING REVISION AND IMPLEMENTATION OF LOCAL FORMS, CHAPTER 13 PLAN AND MOTIONS AND NOTICE OF CHAPTER 13
More informationUNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY IMPORTANT NOTICE TO THE BAR AND PUBLIC
UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY IMPORTANT NOTICE TO THE BAR AND PUBLIC THIRTY-DAY COMMENT PERIOD CONCERNING PROPOSED MODIFICATION OF D.N.J. LBR 2016-5. REQUESTS AND APPLICATIONS FOR
More informationOfficial Committee of Unsecured Creditors Committee Information Sheet
Official Committee of Unsecured Creditors Committee Information Sheet Purpose of Unsecured Creditors' Committees. To increase participation in the chapter 11 proceeding, section 1102 of the Bankruptcy
More informationCase PJW Doc 762 Filed 07/29/13 Page 1 of 20 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE
Case 13-10061-PJW Doc 762 Filed 07/29/13 Page 1 of 20 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE ------------------------------------------------------x In re : Chapter 11 : Penson
More informationBankruptcy 1. WHAT IS A DISCHARGE IN BANKRUPTCY?
Bankruptcy DISCLAIMER: The information contained in this fact sheet is of a general nature and is provided for your assistance. It is not intended as legal advice and is not a substitute for legal counsel.
More informationIf this is an Amended or Modified Plan, the reasons for filing this Amended or Modified Plan are: [state reasons].
[Attorney name, bar # Attorney address Attorney city, state zip Attorney phone number Attorney fax number Attorney email] UNITED STATES BANKRUPTCY COURT DISTRICT OF ARIZONA In re [Debtor name(s)], Case
More informationCALPERS MAY PREVAIL DESPITE BANKRUPTCY JUDGE S WARNING
CALPERS MAY PREVAIL DESPITE BANKRUPTCY JUDGE S WARNING IN CITY OF STOCKTON, CALIFORNIA THAT FAILURE TO IMPAIR PUBLIC PENSION OBLIGATIONS MAY CONSTITUTE UNFAIR DISCRIMINATION IN PLAN OF ADJUSTMENT Timothy
More informationMunicipal Bankruptcy: A Primer on Chapter 9
Municipal Bankruptcy: A Primer on Chapter 9 Market Commentary August 2017 MUNICIPAL BANKRUPTCY FILINGS REMAIN RARE, but recent high-profile Chapter 9 cases may be changing long-held views of the bankruptcy
More informationUNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF KENTUCKY DIVISION IN RE: CASE NO. Original Amended Date:
UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF KENTUCKY DIVISION IN RE: CASE NO. DEBTOR(S) CHAPTER 13 PLAN AND MOTIONS Original Amended Date: NOTICE TO CREDITORS: This Plan may modify your
More informationDoc#: 475 Filed: 03/05/15 Entered: 03/05/15 15:51:03 Page 1 of 18 UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF MONTANA.
14-60074 Doc#: 475 Filed: 03/05/15 Entered: 03/05/15 15:51:03 Page 1 of 18 UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF MONTANA In Re: Roman Catholic Bishop of Helena, Montana, a Montana Religious
More informationUNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION CHAPTER 13 PLAN. [ _#_ Amended (if applicable)] Chapter 13 Plan
UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION CHAPTER 13 PLAN Debtor(s) Case No: [ _#_ Amended (if applicable)] Chapter 13 Plan 1. MONTHLY PLAN PAYMENTS: Including Trustee's
More information(a) Plan Requirements. In addition to the requirements of Bankruptcy Code 1322(a), a plan shall be in the form of Local Plan Form 13-2 and shall have:
RULE 2084-4. PLAN (a) Plan Requirements. In addition to the requirements of Bankruptcy Code 1322(a), a plan shall be in the form of Local Plan Form 13-2 and shall have: (1) The debtor's estimate of the
More informationChapter 11 and CCAA. » A Cross-Border Comparison
Chapter 11 and CCAA» A Cross-Border Comparison TORONTO CALGARY VANCOUVER MONTRÉAL OTTAWA NEW YORK LONDON RIYADH/AL-KHOBAR* BAHRAIN BEIJING Blake, Cassels & Graydon LLP *Associated Offices blakes.com Chapter
More informationHow To Negotiate A Ch. 11 Plan Support Agreement
Portfolio Media. Inc. 860 Broadway, 6th Floor New York, NY 10003 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com How To Negotiate A Ch. 11 Plan Support Agreement Law360,
More informationAlternatives to Bankruptcy. Options for Corporate Recovery
Alternatives to Bankruptcy Options for Corporate Recovery Overview Strategic guidelines Analytical framework Causes of business failure Restructuring options The turnaround process DIP financing structures
More informationChapter 12 Bankruptcy Hope for Financially Stressed Family Farms. Robert Moore Attorney Wright Law Co. LPA
Chapter 12 Bankruptcy Hope for Financially Stressed Family Farms Robert Moore Attorney Wright Law Co. LPA There are probably few words that have a more negative connotation in the farm business world as
More informationSecurity Structures Beyond GOs
Security Structures Beyond GOs Municipal Analysts Group of NY luncheon Amy Laskey, Managing Director September 8, 2017 Agenda Explain the relationship between the Issuer Default Rating (IDR) and security
More informationKORNFIELD, PAUL & NYBERG Harrison Street, Suite 800 Oakland, California Telephone: (510) Facsimile: (510) or 8681
KORNFIELD, PAUL & NYBERG 1999 Harrison Street, Suite 800 Oakland, California 94612 Telephone: (510) 763-1000 Facsimile: (510) 273-8669 or 8681 Memorandum TO: Frances Medema - League of California Cities
More informationCase 8:10-bk TA Doc 662 Filed 12/22/11 Entered 12/22/11 16:11:05 Desc Main Document Page 1 of 60
Main Document Page of 0 RON BENDER (SBN ) TODD M. ARNOLD (SBN ) JOHN-PATRICK M. FRITZ (SBN 0) LEVENE, NEALE, BENDER, YOO & BRILL L.L.P. 00 Constellation Boulevard, Suite 00 Los Angeles, California 00 Telephone:
More informationOfficial Form 113 Chapter 13 Plan 12/17
Fill in this information to identify your case: Debtor 1 Debtor 2 First Name Middle Name Last Name (Spouse, if filing) First Name Middle Name Last Name Check if this is an amended plan, and list below
More informationGetting to the Front of the Line What to Do When Your Debtor Declares Bankruptcy
Getting to the Front of the Line What to Do When Your Debtor Declares Bankruptcy August 22, 2013 All animals are equal, but some animals are more equal than others George Orwell, Animal Farm Edward H.
More informationIN THE UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF TEXAS EL PASO DIVISION. Debtor(s) Chapter 13 Proceeding
IN THE UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF TEXAS EL PASO DIVISION IN RE: CASE NO. Debtor(s) Chapter 13 Proceeding DEBTOR(S) CHAPTER 13 G AMENDED PLAN AND MOTIONS FOR VALUATION AND
More informationBankruptcy Court Holds that Detroit Is Eligible to File for Chapter 9 Protection
December 11, 2013 Bankruptcy Court Holds that Detroit Is Eligible to File for Chapter 9 Protection The birthplace of the American auto industry now holds another, less fortunate distinction, that of being
More informationBasic Debtor Creditor Terminology
Basic Debtor Creditor Terminology Debtor: person who owes the money Creditor: person to whom the money is owed To qualify as a debt, it must be: Certain (i.e., not contingent on some future event) Liquidated
More informationPrinciples of Business Credit
Principles of Business Credit National Education Department 8840 Columbia 100 Parkway, Columbia, MD 21045-2158 Fax: 410-740-5574 Email: education_info@nacm.org Eighth Edition Questions for Discussion
More informationBankruptcy BASICS. APRIL 2006 Revised Third Edition. Bankruptcy Judges Division. Administrative Office of the United States Courts
Bankruptcy BASICS (Applicable to Cases Filed on or After October 17, 2005) Bankruptcy Judges Division Administrative Office of the United States Courts APRIL 2006 Revised Third Edition Bankruptcy Basics
More information) ) ) ) ) ) CHAPTER 13 PLAN [ ] MOTION(S) TO VALUE COLLATERAL AND [ ] MOTION(S) TO AVOID LIENS [check box if motion(s) included] CHAPTER 13 PLAN
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA In re: Debtor. Case No. CHAPTER 13 PLAN [ ] MOTION(S TO VALUE COLLATERAL AND [ ] MOTION(S TO AVOID LIENS [check box if motion(s included] CREDITORS
More informationFantastic Form Plans, Related Amendments, and Where To Find Them
Fantastic Form Plans, Related Amendments, and Where To Find Them National Chapter 13 Form Plan (Official Form 113) and Related Amendments to Federal Rules of Bankruptcy Procedure Effective December 1,
More informationIN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF MONTANA. Case No.
Mont. LBF 19. CHAPTER 13 PLAN. [Mont. LBR 9009-1(b)] Name of Attorney Office Mailing Address Telephone Number Facsimile Number E-Mail Address State Bar I.D. Number (Attorney for Debtor(s)) IN THE UNITED
More informationV. Bankruptcy Concepts
V. Bankruptcy Concepts Familiarity with several fundamental bankruptcy concepts and a bit of bankruptcy terminology is helpful in analyzing the bankruptcy issues that most frequently confront state courts.
More informationBANKRUPTCY AND RESTRUCTURING
BANKRUPTCY AND RESTRUCTURING Bankruptcy and Insolvency Act (BIA) 161 Companies Creditors Arrangement Act (CCAA) 165 By James Gage Bankruptcy and Restructuring 161 Under Canadian constitutional law, the
More informationUNITED STATES BANKRUPTCY COURT DISTRICT OF NEVADA CHAPTER 13 PLAN
NVB#113 (rev. 12/17) UNITED STATES BANKRUPTCY COURT DISTRICT OF NEVADA In re: BK - Debtor 1 - Chapter 13 Plan # Debtor 2 - Debtor. Confirmation Hearing Date: Confirmation Hearing Time: CHAPTER 13 PLAN
More informationInsolvency and Creditor/Debtor Regimes Report (ICR ROSC) Romania Key challenges in the restructuring and insolvency framework REORGANIZATION
Insolvency and Creditor/Debtor Regimes Initiative Legal Vice Presidency -The World Bank Insolvency and Creditor/Debtor Regimes Report (ICR ROSC) Romania Key challenges in the restructuring and insolvency
More informationCase Document 213 Filed in TXSB on 05/02/17 Page 1 of 22
Case 17-31575 Document 213 Filed in TXSB on 05/02/17 Page 1 of 22 IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION ) In re: ) Chapter 11 ) GOODMAN NETWORKS INCORPORATED,
More informationUNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION In re: ) ) Case No. Debtor(s). ) Hearing Date: ) Hearing Time: ) Hearing Location: CHAPTER 13 PLAN PAYMENTS. Debtor is to pay
More informationUNITED STATES BANKRUPTCY COURT WESTERN DISTRICT OF WASHINGTON
UNITED STATES BANKRUPTCY COURT WESTERN DISTRICT OF WASHINGTON In re: Case No. CHAPTER 13 PLAN Original Amended Debtor(s). Date: I. Introduction: A. Debtor is eligible for a discharge under 11 USC 1328(f)
More informationUNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF MICHIGAN. In Re: Case #: Chapter 13. // Filed: CHAPTER 13 PLAN
UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF MICHIGAN In Re: Debtor(s). Case #: Chapter 13 Hon. // Filed: CHAPTER 13 PLAN ( )Original or ( )Amendment No.: ( )Pre-Confirmation ( )Post- Confirmation
More informationBankruptcy BASICS (Applicable to Cases Filed on or After October 17, 2005)
Bankruptcy BASICS (Applicable to Cases Filed on or After October 17, 2005) Leonidas Ralph Mecham, Director Administrative Office of the United States Courts Bankruptcy BASICS (Applicable to Cases Filed
More informationLOCAL FORM 4 August 1, IN THE UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA [insert correct division name] DIVISION
LOCAL FORM 4 August 1, 2010 IN THE UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA [insert correct division name] DIVISION In re: Case No. - - - Chapter 13 Debtor(s DETAILS OF
More informationNOTICE OF COMMENCEMENT OF CHAPTER 11 CASES AND FIRST DAY HEARING
Harvey R. Miller Stephen Karotkin Joseph H. Smolinsky WEIL, GOTSHAL & MANGES LLP 767 Fifth Avenue New York, New York 10153 Telephone (212) 310-8000 Facsimile (212) 310-8007 Attorneys for Debtors and Debtors
More informationAn introduction to court procedures for insolvency in Japan
An introduction to court procedures for insolvency in Japan April 1, 2011 1. An introduction to court procedures for insolvency in Japan This document is an introduction to court procedures for insolvency
More informationWEB APPENDIX 7B. Bankruptcy and Reorganization 1. Federal Bankruptcy Laws
WEB APPENDIX 7B Bankruptcy and Reorganization 1 In the event of bankruptcy, debtholders have a prior claim to a firm s income and assets over the claims of both common and preferred stockholders. Further,
More informationBankruptcies, liquidations and quasi-reorganizations
Financial reporting developments A comprehensive guide Bankruptcies, liquidations and quasi-reorganizations Revised May 2018 To our clients and other friends This publication is designed to assist professionals
More informationChapter 9 Bankruptcy: Simulation Exercise
Chapter 9 Bankruptcy: Simulation Exercise Staff Paper Observations By: Eric Scorsone, Ph.D. Nicolette Bateson, CPA Amanda Wright Department of Agricultural, Food and Resource Economics Michigan State University
More informationUNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF LOUISIANA. * Case No
UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF LOUISIANA * * * * * * * * * * * * * * * * * * * Case No. 05-17697 IN RE: * * Chapter 11 ENTERGY NEW ORLEANS, INC. * * Section B Debtor * * * *
More informationBankruptcy & Child Support: An Introduction
WICSEC Conference September 7th - September 11th, 2008 Bankruptcy & Child Support: An Introduction John Cardoza VCDCSS john.cardoza cardoza@ventura.org What we ll discuss. Bankruptcy Basics Filings Chapter
More informationSession of SENATE BILL No By Committee on Utilities 2-15
Session of 0 SENATE BILL No. By Committee on Utilities - 0 0 0 AN ACT concerning electric utilities; relating to the state corporation commission; authorizing the approval and issuance of K-EBRA bonds;
More informationFIELD & PLAYING CREATING A LEVEL WORKSHOP CORPORATE ARGENTINA RESTRUCTURING PREPACKAGED PLANS. Gordon W Johnson. The World Bank
ARGENTINA CORPORATE RESTRUCTURING WORKSHOP CREATING A LEVEL PLAYING FIELD & PREPACKAGED PLANS Buenos Aires, Argentina 2 May 2002 Gordon W Johnson The World Bank TOPICS COVERED Context for Insolvency and
More informationDated: New York, New York December 29, /s/ Arthur J. Gonzalez Chief United States Bankruptcy Judge
UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK ------------------------------------------------------x In re: : : Amending General Order M-364 Adoption of Modified Loss Mitigation : Program
More informationProviding Corporate Finance to a Chapter 11 Company: Lending To, Buying From and Providing Exit Financing to Chapter 11 Debtors
Providing Corporate Finance to a Chapter 11 Company: Lending To, Buying From and Providing Exit Financing to Chapter 11 Debtors Berry D. Spears Zack A. Clement R. Andrew Black Johnathan C. Bolton TABLE
More informationUNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA In re: Case No. Debtor. CH APT ER 13 PL AN [ ] MOTION(S) TO VALUE COLLATERAL AND [ ] MOTION(S) TO AVOID LIENS [check if motion(s) included]
More informationBusiness Bankruptcy: Executive Summary
Business Bankruptcy: Executive Summary Business Information for Clients and Friends of Shumaker, Loop & Kendrick, LLP April 2014 Need to Know Bankruptcy Concepts David H. Conaway, Partner Chair, Shumaker
More informationEnterprise Insolvency Law of the People s Republic of China
Enterprise Insolvency Law of the People s Republic of China (Adopted at the 23 rd Session of the Standing Committee of the 10 th National People s Congress on August 27, 2006 and goes into effect since
More informationCase: LTS Doc#:2545 Filed:02/19/18 Entered:02/19/18 14:33:10 Document Page 1 of 11
Document Page 1 of 11 UNITED STATES DISTRICT COURT DISTRICT OF PUERTO RICO -------------------------------------------------------------x In re: THE FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO
More informationCayman Islands: Restructuring & Insolvency
The In-House Lawyer: Comparative Guides Cayman Islands: Restructuring & Insolvency inhouselawyer.co.uk /index.php/practice-areas/restructuring-insolvency/cayman-islands-restructuringinsolvency/ 5/3/2017
More informationIN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF KANSAS STANDING ORDER NO ORDER ADOPTING FORM CHAPTER 13 PLAN
IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF KANSAS STANDING ORDER NO. 10-2 ORDER ADOPTING FORM CHAPTER 13 PLAN The Bench Bar Committee has recommended the adoption of a form Chapter 13 Plan,
More informationBANKRUPTCY ISSUES FOR THE BUSINESS LAWYER AN OVERVIEW. Jon D. Schneider, PC Goodwin Procter LLP, Boston
BANKRUPTCY ISSUES FOR THE BUSINESS LAWYER AN OVERVIEW Jon D. Schneider, PC Goodwin Procter LLP, Boston TABLE OF CONTENTS Page INTRODUCTION...1 ELIGIBILITY FOR RELIEF...2 Chapter 7...2 Chapter 11...2 Chapter
More informationANNOTATED VERSION of Chapter 13 Plan Form effective 2/1/2014
ANNOTATED VERSION of Chapter 13 Plan Form effective 2/1/2014 Pursuant to Local Rule 3015(a) the Chapter 13 Trustees have issued a form Chapter 13 Plan. As of 2/1/2014 a new plan is in effect. Attached
More informationPrepack Bankruptcy Strategies and Problems
Prepack Bankruptcy Strategies and Problems CONCURRENT SESSION Hon. James M. Carr, Moderator U.S. Bankruptcy Court (S.D. Ind.); Indianapolis Mark A. Berkoff Neal, Gerber & Eisenberg, LLP; Chicago Stephen
More informationThe continuance of the business and the restructuring of debts. The Greek case
The continuance of the business and the restructuring of debts The Greek case In Greece, rescue and insolvency procedures are governed by the Bankruptcy Code. The Bankruptcy Code envisages that a distressed
More informationUNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF MICHIGAN ORIGINAL CHAPTER 13 PLAN
UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF MICHIGAN In re: Debtor(s), / Case No. Chapter 13 Hon. Filed: ORIGINAL CHAPTER 13 PLAN PREAMBLE To Debtors: Plans that do not comply with local
More informationCase CSS Doc 56 Filed 04/06/18 Page 1 of 10 UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE. Chapter 11
Case 18-10679-CSS Doc 56 Filed 04/06/18 Page 1 of 10 UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re CANDI CONTROLS, INC., Debtor. Chapter 11 Case No. 18-10679 (CSS) DEBTOR S APPLICATION TO EMPLOY
More informationBankruptcy Law Section MCLE Meeting DCBA Bar Center November 28, 2017
Bankruptcy Law Section MCLE Meeting DCBA Bar Center November 28, 2017 11:45 AM Noon Welcome/Introductions Martin Tasch, Momkus McCluskey LLC Noon 1:00 PM Program Title New National Chapter 13 Form Plan
More informationRule Chapter 13 Payments. Commencement of Payments.
Rule 3070-1. Chapter 13 Payments. (A) Commencement of Payments. (1) Deadline to Commence. Payments to the chapter 13 trustee pursuant to the proposed plan, as may be amended, shall commence not later than
More informationUNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF FLORIDA DIVISION. AMENDED (if applicable) CHAPTER 13 PLAN
UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF FLORIDA DIVISION IN RE: Debtor(s). CASE NO.: AMENDED (if applicable) CHAPTER 13 PLAN CHECK ONE: Debtor 1 certifies that the Plan does not deviate from
More informationFIRST LIEN/SECOND LIEN INTERCREDITOR AGREEMENTS AND RELATED ISSUES
FIRST LIEN/SECOND LIEN INTERCREDITOR AGREEMENTS AND RELATED ISSUES An Introduction to the ABA Model Intercreditor Agreement Presented by: Michael S. Himmel, Chapman and Cutler LLP ABA Business Law Section
More informationIn re Luedtke, Case No svk (Bankr. E.D. Wis. 7/31/2008) (Bankr. E.D. Wis., 2008)
Page 1 In re: Dawn L. Luedtke, Chapter 13, Debtor. Case No. 02-35082-svk. United States Bankruptcy Court, E.D. Wisconsin. July 31, 2008. MEMORANDUM DECISION AND ORDER SUSAN KELLEY, Bankruptcy Judge. Dawn
More informationJULY 2014 RESTRUCTURING ALERT. Contacts: IMPACTS STAKEHOLDERSS IN PUERTO RICO S ENERGY & INFRASTRUCTURE SECTORS 1
RESTRUCTURING ALERT JULY 2014 NEW DEBT ENFORCEMENT ACT SIGNIFICANTLY IMPACTS STAKEHOLDERSS IN PUERTO RICO S ENERGY & INFRASTRUCTURE SECTORS 1 On June 28, 2014, the Commonwealth of Puerto Rico adopted the
More informationRobert F. Reilly, CPA Willamette Management Associates
Robert F. Reilly, CPA Willamette Management Associates DISCLAIMER All rights reserved. No part of this work covered by the copyrights herein may be reproduced or copied in any form or by any means graphically,
More informationNavigating Lien and Trust Fund Rights When a Party in the Construction Supply Chain Files for Bankruptcy
Navigating Lien and Trust Fund Rights When a Party in the Construction Supply Chain Files for Bankruptcy Speakers: Bruce S. Nathan, Esq. Lowenstein Sandler LLP Date: June 11, 2018 Time: Session Number:
More informationChapter 4. 1:05 2:05pm. The Chapter 13 Plan and Saving Your Client s Home. William F. Malaier Jr. Nagler & Malaier, P.S.
Chapter 4 1:05 2:05pm The Chapter 13 Plan and Saving Your Client s Home William F. Malaier Jr. Nagler & Malaier, P.S. PowerPoint distributed at the program and also available for download in electronic
More informationUNITED STATES BANKRUPTCY COURT DISTRICT OF NEW HAMPSHIRE
UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW HAMPSHIRE In re: Kingsbury Corporation Donson Group, Ltd. Ventura Industries, LLC Debtors. Bk. No. 11-13671-JMD Bk. No. 11-13700-JMD Bk. No. 11-13687-JMD
More informationPlainSite. Legal Document. Michigan Eastern Bankruptcy Court Case No Kazi Foods Of Michigan, Inc. Document 177. View Document.
PlainSite Legal Document Michigan Eastern Bankruptcy Court Case No. 11-43971 Kazi Foods Of Michigan, Inc. Document 177 View Document View Docket A joint project of Think Computer Corporation and Think
More informationUNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION. // Filed: CHAPTER 13 PLAN
In Re: Debtor(s). UNITED STATES BANKRUPTCY COURT FOR THE WESTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION Case #: Chapter 13 Hon. // Filed: CHAPTER 13 PLAN ( )Original or ( )Amendment No.: ( )Pre-Confirmation
More informationGUIDELINES AND HELPFUL HINTS TO COMPLETING THE NATIONAL FORM PLAN EFFECTIVE 12/01/2017
GUIDELINES AND HELPFUL HINTS TO COMPLETING THE NATIONAL FORM PLAN EFFECTIVE 12/01/2017 HELPFUL HINTS:! Plan form is Mandatory. Use Form Dated 12/01/2017.! This plan does not contain a priority of payment.
More informationNature of Bankruptcy & Insolvency Proceedings
1 c01.fm Page 1 Wednesday, March 9, 2005 1:34 PM CHAPTER ONE Nature of Bankruptcy & Insolvency Proceedings 1.1 Objectives 1 (a) Introduction 1 (b) Scope of Coverage 2 1.2 Alternatives Available to a Financially
More informationInvestors rights When a fund or its general partner Goes
2009 FALL FEATURE Investors rights When a fund or its general partner Goes bankrupt 48 PREA Quarterly, Fall 2009 I n today s tumultuous economic environment, what was once unexpected the bankruptcy of
More informationUNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA DIVISION CHAPTER 13 PLAN
UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA DIVISION IN RE: CASE NO: Debtor (in a joint case, "debtor" shall include "debtors") CHAPTER 13 PLAN The format of this chapter
More informationAdvanced Chapter 11 Practice: Strategies for Minimizing Losses and Maximizing Recoveries in a Customer Bankruptcy
Advanced Chapter 11 Practice: Strategies for Minimizing Losses and Maximizing Recoveries in a Customer Bankruptcy Thomas R. Fawkes and Brian J. Jackiw Goldstein & McClintock LLLP Agenda Chapter 11 Overview
More informationUNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION
John D. Fiero (CA Bar No. ) Kenneth H. Brown (CA Bar No. 00) Miriam Khatiblou (CA Bar No. ) Teddy M. Kapur (CA Bar No. ) 0 California Street, th Floor San Francisco, California -00 Telephone: /-000 Facsimile:
More informationA REVIEW OF THE NEW BANKRUPTCY LAW. Wednesday, 15 February 2006
A REVIEW OF THE NEW BANKRUPTCY LAW Wednesday, 15 February 2006 I. One of the main purposes of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 is to prohibit granting relief under Chapter
More informationAmerican Bankruptcy Board of Certification Sample Exam General Bankruptcy Multiple Choice Total Time Two Hours
American Bankruptcy Board of Certification Sample Exam General Bankruptcy Multiple Choice Total Time Two Hours NOTE: The Bankruptcy Multiple-Choice exam contains 50 questions. You must correctly answer
More informationNC General Statutes - Chapter 39 Article 3A 1
Article 3A. Uniform Voidable Transactions Act. 39-23.1. Definitions. In this Article, the following definitions apply: (1) Affiliate. Any of the following: a. A person that directly or indirectly owns,
More informationEverything A Secured Creditor Wants To Know About Chapter 11! But Was Afraid To Ask!
Everything A Secured Creditor Wants To Know About Chapter 11! But Was Afraid To Ask! David Y. Wolnerman, Esq.! Randolph E. White, Esq.! David Y. Wolnerman, Esq.! dwolnerman@wwlawgroup.com!! Randolph E.
More informationREDSTONE LEGAL BRIEF. A Preventive Law Service of The Office of the Staff Judge Advocate Redstone Arsenal, AL
REDSTONE LEGAL BRIEF A Preventive Law Service of The Office of the Staff Judge Advocate Redstone Arsenal, AL Keeping You Informed On Personal Legal Affairs Bankruptcy THIS HANDOUT is provided for general
More informationBankruptcy Q&A For IAM Members at US Airways
Bankruptcy Q&A For IAM Members at US Airways September 13, 2004 The IAM, in conjunction with our bankruptcy attorneys, have prepared this document to explain how bankruptcy laws apply to the current US
More information