Business Plan – 18-98 Plus http://18-98plus.com/ Wed, 06 Oct 2021 17:35:30 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://18-98plus.com/wp-content/uploads/2021/07/icon-3-150x150.png Business Plan – 18-98 Plus http://18-98plus.com/ 32 32 Personal Bankruptcy Statistics for 2020 https://18-98plus.com/personal-bankruptcy-statistics-for-2020/ https://18-98plus.com/personal-bankruptcy-statistics-for-2020/#respond Wed, 08 Sep 2021 07:29:27 +0000 https://18-98plus.com/?p=2461 Bankruptcy is a last resort for consumers in financial distress, giving them a chance to liquidate their debts and have a fresh start. That opportunity comes at a cost, both in what consumers pay to file bankruptcy and in the damage it does to their credit score — and getting access to credit with a […]]]>

Bankruptcy is a last resort for consumers in financial distress, giving them a chance to liquidate their debts and have a fresh start. That opportunity comes at a cost, both in what consumers pay to file bankruptcy and in the damage it does to their credit score — and getting access to credit with a bad credit score can be difficult for many years. How many people file bankruptcy every year? Are some demographics more likely to file bankruptcy? And what’s the most common cause? Find out here and head over to bankruptcy hq.

If you think the answer to that last one is medical debt, you’ll soon learn that’s something many news articles have gotten wrong.

In this analysis, we’ll be exploring the most important personal bankruptcy statistics dating back to the 1980s. (We’ll also provide some links below for those interested in credit counseling.)

Key findings

  • Personal bankruptcy filings peaked in 2005, were high during the Great Recession, and have been decreasing since 2010.
  • Chapter 7 personal bankruptcies are consistently the most common, although they’ve gone down since the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act in 2005.
  • The most common contributing factor to bankruptcy is a loss of income.
  • Alabama had the highest bankruptcy filing rate in 2019, and Southern states average higher bankruptcy filing rates than the rest of the country.
  • Debtors who have completed high school or some college account for over half of all bankruptcy filings.
  • Bankruptcy is more common among lower-income debtors, especially those who make $30,000 or less per year.
  • While there aren’t any races with particularly high bankruptcy rates, African Americans are more likely to file Chapter 13 bankruptcy and less likely to successfully discharge their debts through bankruptcy.

Total personal bankruptcy filings by year

In the 25 years from 1980 to 2005, personal bankruptcy filings rose significantly. Bankruptcies went up fast, though there were periods where filings dropped for a few years. We can’t attribute this to population growth, either. In 2004, the bankruptcy filing rate was 5.3 for every 1,000 people, over four times as high as it was in 1980.

What stands out most is that filings reached a record high of 2,039,214 in 2005, and then dropped to just 597,965 in 2006, the lowest rate since 1988. That’s because of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which added new provisions to the bankruptcy process. Most of these provisions took effect on Oct. 17, 2005.

Before the BAPCPA, consumers could file for Chapter 7 bankruptcy and liquidate all their debts regardless of their income. The BAPCPA stipulates that consumers can only file Chapter 7 bankruptcy if they make less than the median income in their state or they pass a means test demonstrating they wouldn’t be able to afford a payment plan for their debts. If neither of those is true, the consumer must file Chapter 13 bankruptcy, which involves a three- to five-year payment plan.

A massive number of consumers filed Chapter 7 bankruptcy in 2005 to get it done while the laws were more lenient. Since so many people filed in 2005, it led to a natural drop-off the following year.

Beyond that big drop, there’s good recent news regarding personal bankruptcies. The number of filings has gone down every year since the start of the decade, and there were less than half as many filings in 2018 as there were in 2010.

Yearly bankruptcy filings by chapter

There are several types of bankruptcies, and they’re referred to by the chapter of the U.S. bankruptcy code that they follow. Before we look at yearly bankruptcy filings by chapter, here’s a summary of how each chapter works:

  • Chapter 7: Also known as liquidation bankruptcy, this lets the debtor liquidate all nonexempt property and discharge their debts within three to six months.
  • Chapter 11: The debtor commits to a payment plan to repay a portion of their debts and discharge the rest. It’s more expensive and complicated than Chapter 13 bankruptcy, which also involves a payment plan. Debtors might select a Chapter 11 bankruptcy if their total debts exceed the limits for Chapter 13 bankruptcy.
  • Chapter 13: The debtor commits to a three- to five-year payment plan. Upon completion of the plan, their remaining debts are discharged.

Chapter 7 bankruptcy filings are the most common in every year in this range. That makes sense, considering the debtor can complete the entire process in a matter of months instead of years.

There was, predictably, a large drop in Chapter 7 filings from 2005 to 2006, in part because the Chapter 7 laws became stricter and most debtors who wanted to file this type of bankruptcy did so in 2005.

The percentage of Chapter 7 filings went back up over the next four years. One possible reason is that, during the financial crisis, people needed to file bankruptcy because of losses or reductions in income, meaning they could qualify for Chapter 7.

Chapter 12 bankruptcy

A less common type of bankruptcy is Chapter 12, which is available only to farmers and fishermen. Like Chapter 13, it involves a payment plan, but it has much higher debt limits.

Chapter 12 filings are the least common of the personal bankruptcy options, but numbers were higher than normal in 2010 and 2011. Here are the yearly numbers going back to 2006:

The most common causes of bankruptcy

The data above comes from a survey of consumers who filed bankruptcy between 2013 and 2016. Debtors were able to choose multiple factors that contributed to their bankruptcy.

By far the most common cause of bankruptcy was a loss of income, with over three-quarters of filers stating it was a contributing factor. Unfortunately, most simply aren’t prepared for this situation.

The usual recommendation on how much to save in an emergency fund is three to six months of living expenses. In our survey on Americans’ financial habits, we found that only 15% felt confident they could go without six paychecks or more before missing financial obligations.

Medical debt is often called the most common cause of bankruptcy, but that’s not quite the case. Medical expenses rank second, as they’re a factor in bankruptcy filings for 58.5% of consumers.

It should be noted that medical issues aren’t just a problem because they’re expensive. They can also result in a loss of income and even a job loss. That’s why having a plan for managing finances during a medical emergency is important, too.

Bankruptcy filings by state

Considering how much their populations vary, it doesn’t make sense to evaluate states by their number of bankruptcy filings.

In the table below, states are ranked by their number of bankruptcy filings per 1,000 residents to provide a more accurate picture of where debtors file bankruptcy the most. It also includes the numbers for Washington, D.C., and the United States as a whole.

Bankruptcy is a much bigger problem in the South — the four states with the highest bankruptcy rates are all Southern states. This could be in part because these states often have more seasonal work and fluctuating wages. Median incomes in several of these states are below the national average, too.

Interestingly, Chapter 13 filings are far more common in the South than they are in the rest of the country. Of the 25 federal judicial districts with the most Chapter 13 filings from 2006 to 2017, 23 were in the South. Chapter 13 bankruptcy originated in this region, which could partially explain this, but fee structures for bankruptcy attorneys in this part of the country are a more likely explanation.

In several Southern states, bankruptcy attorneys don’t charge anything upfront for Chapter 13 cases. Instead, they let debtors pay through their bankruptcy payment plan. With Chapter 7 cases, attorney fees (which can be $1,000 or more) are usually due immediately or shortly. This leads lower-income debtors in these states to predominantly choose Chapter 13 bankruptcy, even if they’d be better off filing through Chapter 7.

Unfortunately, this affects African Americans more than any other group, something we’ll explore further in a section below.

Alaska does the best in terms of personal bankruptcies, having both the lowest number overall and when adjusted for population. That’s somewhat surprising, considering that the state has the highest average credit card debt. However, it also ranks in the top 10 for median income.

Bankruptcy filings by county

Within each state, certain regions have a much higher number of bankruptcy filings than others. Here are the counties with the most 2019 bankruptcy filings in the five states with the highest bankruptcy rates.

  1. Alabama bankruptcies

2. Tennessee bankruptcies

4. Mississippi bankruptcies

Bankruptcy filings by age group

Bankruptcy filing rates are the highest in middle age, with over 50% of debtors being between 35 and 54 for each year in this study.

The average age at which debtors file bankruptcy has been steadily climbing. From 2006 to 2010, the 18-to-24, 25-to-34, and 35-to-44 age groups all saw their bankruptcy rates decrease. The 45-to-54, 55-to-64, and 65-and-older groups saw the opposite.

This trend isn’t limited to one study or time period, either. The authors of “Graying of U.S. Bankruptcy: Fallout from Life in a Risk Society” found that older age groups had been making up a larger percentage of the bankrupt population from 1991 to 2016. And from 2007 to 2016, the mean age for bankruptcy filers jumped from 44.4 to 48.5.

Rising debt among older consumers is one reason they’re filing bankruptcy at higher rates. From 2001 to 2013, the portion of households headed by someone 60 or older with debt went from 50.2% to 61.3%. In that same period, the median debt for households headed by someone 60 or older with debt went from $18,385 to $40,900.

Debt can be a problem at any age, but it’s more difficult for older consumers because they’re typically retired or near the end of their working years. Money can be tight, especially for those with insufficient retirement savings.

Bankruptcy filings by gender

Just like there’s a gender pay gap, there’s a gender discrepancy in bankruptcies. There’s a population difference, though, as well. In 2010, the population split between men and women was 49.2% to 50.8%.

Even after adjusting for population sizes, women filed bankruptcy more often than men in the most recent available data. This is likely in large part because of that gender pay gap.

Bankruptcy filings by marital status

There are two groups with higher bankruptcy rates than their population percentage: the married and the divorced.

Married debtors accounted for the majority of bankruptcy filings in each year studied. Married couples tend to have more expenses and more debt than those who are single, two factors that can make bankruptcy more likely.

Divorced debtors are also more susceptible to filing bankruptcy. With the cost of divorce attorneys and settlements, and possibly the challenge of going from two incomes to one, it makes sense that those who have gotten divorced have a higher bankruptcy risk.

Bankruptcy filings by education level

The biggest takeaway here is that, besides improving your earning potential, a college education also puts you at a lower risk of bankruptcy. Those with graduate or bachelor’s degrees declared bankruptcy at below-average rates. Associate’s degrees didn’t help nearly as much.

Those who completed some college without getting a degree had the highest bankruptcy rates compared to their population size. This group incurs at least a portion of the typical college costs — but without a degree, they don’t increase their earning potential.

From 2006 to 2010, bankruptcy rates rose among those with a college degree and fell for those with a high school or some college education.

Bankruptcy filings by income level

If you guessed that bankruptcy would be more common in lower income brackets, you’d be right. In each year of this study, over half of all bankruptcy filings were made by people earning $30,000 or less per year.

Bankruptcy rates went up from 2006 to 2010 among Americans making over $60,000 per year, and there’s no clear cause. One possibility is that the financial crisis drove more high earners to bankruptcy than other demographics.

Bankruptcy filings by race/ethnicity

As of 2010, bankruptcy rates for each ethnicity are similar to their population percentages. There were, however, some significant changes from 2006 to 2010.

The bankruptcy rate for African Americans decreased substantially during that period. On the other hand, filings among people of Latino/Hispanic and Asian descent increased, with the filing rate for the latter group more than doubling.

But these bankruptcy filing rates don’t tell the whole story, particularly for African Americans. The American Bankruptcy Institute’s (ABI) Final Report and Recommendations from 2017 to 2019 shows that over half of African Americans who file bankruptcy choose Chapter 13 bankruptcy. That’s a disproportionately higher rate than that of any other race.

One reason African Americans are far more likely to file Chapter 13 bankruptcy is the cost of an attorney. They’re more likely to file a “no money down” Chapter 13 bankruptcy.

The ABI also found that African Americans had disproportionately lower rates of successfully discharging debt through bankruptcy. This is in part because of their high Chapter 13 filing rate. Since that type of bankruptcy requires the completion of a payment plan, discharge rates are much lower than they are with Chapter 7 bankruptcy.

Bankruptcy trends present good news and bad news

Personal bankruptcy statistics are a mixed bag. We can see some positive signs as well as plenty of problematic information.

The number of bankruptcies has been falling since 2010, and fewer consumers filing bankruptcy is a good sign. But bankruptcy rates are much higher than the national average in several parts of the South, and several demographics are especially vulnerable, including older Americans and debtors in lower income brackets.

Work also needs to be done so that debtors of all races have equal access to Chapter 7 bankruptcy, no matter where they live. Chapter 13 bankruptcy is supposed to be for debtors who can pay back at least some of what they owe. Unfortunately, African American and Southern debtors file Chapter 13 bankruptcy at much higher rates because it’s cheaper upfront, even when they’d be better served by Chapter 7.

If you’re considering filing for bankruptcy, consider speaking with a credit counselor first. Credit counseling can help you figure out the best way forward, even if your debt feels completely overwhelming. The National Foundation for Credit Counseling (NFCC) is a great place to learn about the process and find a credit counseling agency near you.

Sources

  • American Bankruptcy Institute (2019). Annual Business and Non-business Filings by Year (1980-2018).
  • American Bankruptcy Institute (2019). Quarterly Non-Business Filings by Chapter (1994-Present).
  • American Bankruptcy Institute (2020). “December 2019: Nationwide Bankruptcy Filings by State and Jurisdiction [XLSX].”
  • Bertelsen, Kris (2019). St. Louis Federal Reserve. “Protecting Wage Earners: The Southern Roots of Bankruptcy Law.”
  • Department of Agricultural, Environmental, and Development Economics, The Ohio State University (2018). Farm Bankruptcies Are Stabilizing.
  • Himmelstein, et. al. (2019). American Journal of Public Health. “Medical Bankruptcy: Still Common Despite the Affordable Care Act.”
  • Kiel, Paul and Hannah Fresques (2017). ProPublica. “Data Analysis: Bankruptcy and Race in America: An in-depth discussion of racial patterns in bankruptcy filings and outcomes.”
  • Linfield, Leslie E. (2011). “2010 Annual Consumer Bankruptcy Demographics Report: A Five Year Perspective of the American Debtor.”
  • Thorne, Deborah, et. al. (2018). “Graying of U.S. Bankruptcy: Fallout from Life in a Risk Society.”
  • U.S. Census Bureau (2011). “Educational Attainment in the United States: 2010: Table 1. Educational Attainment of the Population 18 Years and Over, by Age, Sex, Race, and Hispanic Origin: 2010.”
  • U.S. Census Bureau (2011). “Overview of Race and Hispanic Origin: 2010.”
  • U.S. Census Bureau (2019). “2019 National and State Population Estimates: Table NA-EST2019-01: Table 1. Annual Estimates of the Resident Population for the United States, Regions, States, and Puerto Rico: April 1, 2010 to July 1, 2019.”
  • U.S. Courts (2018). “Just the Facts: Consumer Bankruptcy Filings, 2006-2017.”
  • U.S. Courts (2020). “Table F-5A — Bankruptcy Filings (December 31, 2019).”
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Renzo Rosso on Key US Market, Potential IPO Timeline and Mergers & Acquisitions – WWD https://18-98plus.com/renzo-rosso-on-key-us-market-potential-ipo-timeline-and-mergers-acquisitions-wwd/ https://18-98plus.com/renzo-rosso-on-key-us-market-potential-ipo-timeline-and-mergers-acquisitions-wwd/#respond Wed, 07 Jul 2021 04:02:01 +0000 https://18-98plus.com/renzo-rosso-on-key-us-market-potential-ipo-timeline-and-mergers-acquisitions-wwd/ MILAN – Renzo Rosso has come a long way since his first trip to New York City over four decades ago, but for the entrepreneur, the American dream remains as real today as it was then. “I feel so close to the United States and it continues to be a priority for me. It’s the […]]]>

MILAN – Renzo Rosso has come a long way since his first trip to New York City over four decades ago, but for the entrepreneur, the American dream remains as real today as it was then.

“I feel so close to the United States and it continues to be a priority for me. It’s the country where I invest the most, along with China, ”said the founder and president of the OTB group, citing“ James Dean, chewing gum, jukeboxes and Coca-Cola ”among the most popular idols. fascinating and most enduring America in his head.

“When I was 20 and first came to JFK [airport], I didn’t know a word of English, but I immediately felt at home, ”he said, smiling at the memory and marveling at the fact that Diesel’s debut show by Glenn Martens, digitally presented on June 21 for Spring 2022, was broadcast live in Times Square.

The love is mutual, as North America, which accounts for around 10% of the group’s sales, is expected to experience a growth rate almost double that expected for the rest of OTB around the world. In a three-year business plan, OTB is expected to achieve annual revenue growth of 15%, with North America expected to grow 27% year-over-year.

Investments totaling $ 250 million are planned over the next three years and “a large chunk” of that is destined for the United States, the entrepreneur said.

As part of this plan, the expansion of OTB’s retail distribution in the United States will be key.

The fashion group includes Diesel, Maison Margiela, Marni, Jil Sander, Viktor & Rolf and a stake in Amiri, as well as the production lines Staff International and Brave Kid.

Diesel RTW Spring 2022
Courtesy of Diesel

In addition to the relocation of a Diesel store to New York, five new units of the brand are expected to open in the United States in 2021. In Miami, Diesel will open 143 apartments under contract with Wynwood, which will be completed in a few years, as the work was stalled by last year’s pandemic.

By the end of 2021, there will be 16 directly operated Diesel stores, four Marni units and five Maison Margiela units in the United States.

“It’s a magical moment in the United States now, since the arrival of the president [Joe] Biden, stimulating economic development; there is so much energy and a desire to invest, ”said Rosso. “Sales in all of our stores in the United States are growing. “

Rosso was open to discussing Diesel USA’s Chapter 11 filing, although that is “a thing of the past,” he said, as the brand is now profitable. “I can say it with joy and I am very proud of this turnaround. I thank Stefano [his son and former Diesel USA chief executive officer] for the tremendous job it has done in reducing costs, implementing more selective and brand-compliant distribution by reducing the number of stores by 50% and improving brand visibility, ”said Rosso. “If we had been a public company, we couldn’t have done this. “

Over the years, Rosso has hinted that it is possible someday to publicly list the group and, when asked for a possible timeline, said that given the three-year business plan, this “doesn’t would not arrive for three years “.

He praised “an already strong, well structured and well managed group”, admitting that an IPO would also help bring “more transparency and soundness in the management of the company and in the change of generations”. Rosso has seven children and believes that while and when OTB is a public company, the family should have a controlling stake.

Last year, as reported, OTB saw an increase in online revenue and 20% growth at Maison Margiela – bright spots for the group, despite the effects of the COVID-19 pandemic.

In 2020, the group’s profit before interest, taxes and depreciation amounted to 176 million euros, down 7.3% compared to 190 million euros in 2019.

During the fiscal year ended December 31, OTB’s consolidated sales amounted to € 1.31 billion, a decrease of 14.3% compared to € 1.53 billion. euros in 2019, when the company was back in the dark.

Diesel, after a reorganization and repositioning of its retail and wholesale channels, continues to be a core business for OTB, accounting for over 50 percent of sales.

It is in the United States that Diesel will host an event in September to present a new line of sneakers, possibly in New York and Miami. Considering the growing importance of the category, Rosso brought in five new designers dedicated to sneakers and a technician specializing in research and development “from one of the largest sneaker companies in the world”, a- he declared, without naming him.

Rosso trumpeted Martens’ creativity, which, combined with Diesel’s techniques and know-how, is the recipe for success. The Belgian designer, who joined Diesel as creative director last October, is launching a major project called Diesel Library, a gender-neutral collection that will be presented in spring 2022 as part of the group’s “For Responsible Living” sustainable development initiatives. , dear to Rosso and her sons Andréa. The library will carry a wide range of evergreen and more durable denim items, from pants and jackets to tops and skirts to name a few, with 50 percent of the overall denim collection having a length of permanent conservation.

Rosso said the United States is also a very successful market for Maison Margiela, “best in class” and growing globally. There are five stores in the United States – one in Miami, one in Los Angeles, two in New York and one in San Francisco – and the goal is to open another unit in the United States by the end of the year. ‘year.

A Margiela store will open in Toronto at the end of the year or early 2022.

In the fall of 2019, the group renewed John Galliano’s employment pact for Maison Margiela. The designer was appointed creative director of the brand in 2014 and since then the income of the Parisian house has more than doubled.

Margiela House

The Maison Margiela store in London
Henri bourne

Also in Miami, Rosso plans to reopen the Pelican Hotel, which it first unveiled in 1994 and which was closed for renovations in 2020. The works will allow the hotel to expand by two bedrooms, reaching 30. “The location had become too commercial, but now [that] the mayor closed four blocks and changed the layout, it became the real heart of Miami and a pedestrian zone, ”explained Rosso. In a true Art Deco building, it has been faithfully restored to reflect this era. “I plan to open it before Christmas and I am currently looking for a partner to manage it.

Marni is also performing very well both in her Bal Harbor store – a move with a new concept earlier this year – and in her Madison Avenue unit.

The first store with the new Marni interior design concept opened in London, followed by Paris, Shanghai and Miami.

At the end of June, a pop-up called Marni Marine at the Sunset Beach Hotel in Shelter Island, NY, opened “with a specific and unique concept and dedicated products,” said Rosso.

He noted that, thanks to creative director Francesco Risso, “men’s clothing is booming”. He admitted that the creative change, when founder Consuelo Castiglioni came out in 2016, was a tough transition moment, “but now we’re getting offers to do branded capsules, Marni is super cool.” Namely, Rosso extended Risso’s contract with Marni in December 2020.

In the US next year, both Marni and Margiela will be available on the omnichannel platform supported by Moon, an in-house designed operating model that also promotes the customer experience. With a major investment, Moon was first deployed for Diesel in the United States, then in Europe.

Rosso, one of the few Italian entrepreneurs to have spoken openly about starting a fashion conglomerate, also spoke enthusiastically about his latest acquisition, Jil Sander, which he bought from Onward Holdings Co. Ltd. in March. “Day after day, I marvel at the beauty, cleanliness and sophistication of this product, and I have a great relationship with [creative directors] Luc and Lucie [Meier], enthused Rosso, who said early on that he did not want to change the creative direction of the brand. “I involve them more and more actively in the company, beyond creativity, I want their opinion.

The Meiers’ designs resulted in solid business, as Rosso revealed that the brand saw sales growth last year compared to 2019, despite the pandemic.

According to the latest available results, for the fiscal year ended February 28, 2019, Jil Sander’s revenues totaled 11.3 billion yen, or $ 104 million.

Rosso is hoping to open a temporary Jil Sander store in SoHo, New York with a new concept designed a year and a half ago. By the end of the year, it is preparing to open Jil Sander stores in New York and Shanghai.

“Based on our online sales, we see a strong demand for Jil Sander in the United States and we want to be there physically,” he said.

Rosso is also now considering the acquisition of specialist manufacturers, a strategy that allows a company to “become more solid and develop know-how,” he explained, while protecting the company’s unique supply chain. ‘Italy. He is interested in different fields: manufacturers of handbags and shoes, as well as companies specializing in washes and treatments.

His group was support artisans through the CASH program, which stands for Credito Agevolato [facilitated credit] Assistance to suppliers launched in 2013. Rosso is part of the Camera della Moda strategic committee and is a delegate of Confindustria, representing the Made in Italy supply chain in front of the institutions.

OTB also owns a minority stake in the American brand Amiri, which Rosso has defined as a “beautiful” label, citing long-lasting lines in front of the brand’s Rodeo Drive store and plans to open two new stores, in New York and Las Vegas. this summer.

As reported, Paulo Redeem, a Philadelphia-based fashion brand, won the inaugural edition of the Amiri Award, 2021, created by Mike Amiri, founder and creative director of his Los Angeles brand for men and women, as Annual fashion incubator created to inspire little-known American fashion talent by providing a support system outside of the current establishment.

“We work well with Mike [Amiri] and help develop the brand in Asia. He can count on the structure and our financial assistance. We are developing a business plan, but it doesn’t want to open too many doors, ”said Rosso, noting that Amiri’s sales will double in 2021 compared to 2020. Amiri, who created his company in 2014, is merging l ‘authentic rock’ n from LA. ‘roll and street culture. It has diversified into new categories through haute couture, accessories and shoes, and presents its main collections twice a year at Paris Fashion Week. In 2020, he opened his first retail store on Rodeo Drive in Los Angeles.

As for the wholesale trade, which represented more than a third of sales at group level last year, Rosso is working to convert the corners of its various brands into concessions with the main American department stores, Neiman Marcus and Bergdorf. Goodman at Saks Fifth Avenue and Nordstrom.

“We are becoming partners, as department stores are increasingly becoming destinations, working to have fewer but more beautiful locations,” he said.

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Shell would like to leave Aera Energy | New https://18-98plus.com/shell-would-like-to-leave-aera-energy-new/ https://18-98plus.com/shell-would-like-to-leave-aera-energy-new/#respond Wed, 07 Jul 2021 00:15:00 +0000 https://18-98plus.com/shell-would-like-to-leave-aera-energy-new/ One of Aera Energy LLC’s two partners is seeking to pull out of the Bakersfield-based oil producer, according to a report last week that relies on comments from four anonymous sources. London-based news service Reuters said Royal Dutch Shell Plc. informed Exxon Mobil Corp. of his intention to leave their 24-year partnership. It would be […]]]>

One of Aera Energy LLC’s two partners is seeking to pull out of the Bakersfield-based oil producer, according to a report last week that relies on comments from four anonymous sources.

London-based news service Reuters said Royal Dutch Shell Plc. informed Exxon Mobil Corp. of his intention to leave their 24-year partnership. It would be the Anglo-Dutch oil major’s latest move to sell carbon-intensive assets as part of efforts to reduce emissions.

It was not clear on Tuesday what a withdrawal from Shell could mean for Aera and its 1,100 employees, most of whom are based in Kern. The company is responsible for about a quarter of the oil and gas produced in California.

None of the parties involved have confirmed or denied the Reuters report, which cited people familiar with the talks who spoke on condition of anonymity because the companies’ talks are private.

The Houston-based US subsidiary of Shell said it had no comment, while a spokeswoman for Exxon Mobil said the company was not commenting on “market rumors or speculation about our plans. ‘business”.

A spokeswoman for Aera said the company could comment later if decisions were made that could impact local stakeholders.

“Aera does not comment on the details of our business strategy or speculate on possible business development opportunities that may or may not occur in the future,” spokeswoman Cindy Pollard said via email. “While we make decisions that could impact the communities we live in or the stakeholders in Aera’s business, we remain committed to communicating internally and externally as soon as possible. “

Reuters noted that Shell sold its refinery in Washington earlier this year, as well as its stake in a refinery in Texas, and that it was considering selling its stakes in the Texas Permian Basin oil fields.

The press service also reported that a Dutch court had rejected the company’s efforts to reduce the carbon intensity of its products by at least 45% by 2035. Calling the decision insufficient, the court said instead ordered Shell to reduce its emissions by 45% from 2019 levels by 2030..

Aera’s founding CEO, retired oilman Gene Voiland, noted on Tuesday that Shell had long signaled its intention to pull out of the oil business in favor of electricity. But while stressing that he had no specific information about the proposed divestiture of Aera announced by the company, he said the Reuters report was still a surprise given the high quality of the company’s California assets. .

“Saying like, ‘I’m going to quit it all,’ it’s just surprising in a way,” Voiland said. “I know they are under a lot of pressure but it’s surprising someone would do that.… You are making a huge bet” by leaving, he added.

Bakersfield Oil Director Steve Layton, chairman of local oil producer E&B Natural Resources, speculated that Exxon Mobil could end up buying Shell’s stake, although that could also go to a more aggressive company and keen to expand Area operations.

“It’s a guessing game at this point,” he said.

Reuters report was picked up by industry news site Oil Octobers, who said Shell is the majority owner of Aera with a 52% stake in the joint venture.

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Form 8-K GOLDMAN SACHS GROUP INC To: March 08 https://18-98plus.com/form-8-k-goldman-sachs-group-inc-to-march-08/ Fri, 12 Mar 2021 01:43:11 +0000 https://18-98plus.com/form-8-k-goldman-sachs-group-inc-to-march-08/ Receive instant alerts for news on your actions. Claim your 1-week free trial for Street Insider Premium here. Exhibit 5.1 [Letterhead of Sullivan & Cromwell LLP] March 8, 2021 The Goldman Sachs, Inc. group, 200 West Street, New York, New York 10282. Ladies and gentlemen: We are acting as counsel to The Goldman Sachs Group, Inc., […]]]>

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Exhibit 5.1

[Letterhead of Sullivan & Cromwell LLP]

March 8, 2021

The Goldman Sachs, Inc. group,

200 West Street,

New York, New York 10282.

Ladies and gentlemen:

We are acting as counsel to The Goldman Sachs Group, Inc., a Delaware corporation (the ?? Company ??), in connection with the issuance and delivery, as of the date hereof, of (i) $ 700,000,000 in total principal of 0.523% Bonds maturing in 2023 (the “Fixed Rate Bonds”); (ii) $ 450,000,000 in aggregate principal of the Floating Rate Notes due 2023 (the ?? 2023 Floating Rate Notes ??); (iii) $ 1,750,000,000 in aggregate principal amount of the 0.673% Fixed / Floating Rate Notes due 2024 (the ?? 2024 Fixed / Floating Rate Notes ??); (iv) an aggregate principal amount of $ 700,000,000 of the Floating Rate Notes due 2024 (the ?? 2024 Floating Rate Notes ??); (v) $ 3,000,000,000 in aggregate principal amount of the 1.431% Fixed / Floating Rate Notes due 2027 (the ?? 2027 Fixed / Floating Rate Notes ??); and (vi) a total principal amount of $ 400,000,000 of the Floating Rate Bonds maturing in 2027 (the ?? 2027 Floating Rate Bonds ?? and, together with the Fixed Rate Bonds, the 2023 Floating Rate Bonds, the Fixed Income Notes and 2027 Fixed / Floating Rate Notes, the ?? Notes ??). The Company filed with the Securities and Exchange Commission on July 1, 2020, a registration statement on Form S-3ASR (To file No. 333-
239610) (the ?? Registration Statement ??) under the Securities Act of 1933 (the ?? Act ??) relating to the proposed offer and sale of an unspecified principal amount of unsecured debt securities of the Company, including the Notes. The Notes are issued pursuant to a Deed of Trust, dated July 16, 2008 (as previously amended, most recently by the Fourth Supplementary Indenture, dated December 31, 2016, the “Deed of Trust ??” ), between the Company and The Bank of New York Mellon, as Trustee (the “Trustee”).

In rendering this opinion, we reviewed the following documents:

1.

The updated certificate of incorporation and the amended and updated certificate
Regulations the company.


The Goldman Sachs, Inc. – 2 –

3.

Certificates from officers of the Company relating to the authorization of the Notes, the determination of the terms of the Notes and related matters.

4.

Forms of Notes.

We have also considered the questions of law that we have deemed necessary or appropriate for the purposes of this opinion. Based on such examination, we are of the opinion that the Notes constitute valid and legally binding obligations of the Company, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws. of general application concerning or affecting creditors? rights and general principles of equity.

The foregoing opinion is limited to the federal laws of the United States, the laws of the State of New York and the General Corporation Law of the State of Delaware, and we express no opinion as to the effect of the laws of any other jurisdiction. .

In rendering the foregoing opinion, we do not convey and assume no responsibility for any disclosure in the registration statement or any related prospectus or other offering material relating to the Company or the Notes or their offering and sale.

For certain matters, we have relied on information obtained from public officials, company officers and other sources which we hold responsible, and we have assumed, without independent verification, that the act was duly authorized. , executed and delivered by the Trustee, that the Notes conform to the forms we have reviewed, that the Trustee’s Note Authentication Certificates have been manually signed by one of the Trustee’s authorized agents, that the Notes have been delivered against payment as provided in the registration statement and that the signatures on all documents we have examined are authentic.

We hereby consent to the filing of this opinion as an attachment to the registration statement. By giving this consent, we do not therefore admit that we are in the category of persons whose consent is required under section 7 of the Act.

Sincerely yours,
/ s / Sullivan & Cromwell LLP
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How business bankruptcy works https://18-98plus.com/how-business-bankruptcy-works/ https://18-98plus.com/how-business-bankruptcy-works/#respond Fri, 12 Mar 2021 01:43:03 +0000 https://18-98plus.com/how-business-bankruptcy-works/ More than 20,000 companies file for bankruptcy each year. While businesses follow many different paths to bankruptcy, each encounters a carefully designed process to balance the rights of debtors and creditors. As I have learned from studying and practicing bankruptcy law, the system is not perfect and the results sometimes seem unfair. But bankruptcy is […]]]>

More than 20,000 companies file for bankruptcy each year.

While businesses follow many different paths to bankruptcy, each encounters a carefully designed process to balance the rights of debtors and creditors.

As I have learned from studying and practicing bankruptcy law, the system is not perfect and the results sometimes seem unfair. But bankruptcy is certainly not a way out of jail for heavily indebted companies.

Make the most of a gloomy situation

For most people, bankruptcy has a negative image. And for good reason: a deposit almost always means that there is not enough money for everyone.

But the system makes the most of a gloomy situation by forcing an orderly and open process that preserves value and encourages negotiation. Bankruptcy reorganizations of well-known brands like Delta and General Motors show they can bring the parties together and resuscitate struggling businesses.

At the most basic level, the Bankruptcy Code creates an estate to bring all the assets together in one place, identify and rank the claims against the debtor in terms of priority, and then allocate the assets accordingly.

How exactly this plays out depends largely on the type of bankruptcy that the debtor files.

Delta went public after coming out of bankruptcy in 2007.
AP Photo / Mark Lennihan

Chapter 7 vs. Chapter 11

Large business debtors have two options for bankruptcy: liquidation or reorganization.

Chapter 7 cases are designed to liquidate the company, meaning it will no longer exist, and any remaining value is divided and distributed to creditors.

In contrast, a Chapter 11 reorganization allows a debtor to sell some or all of its assets or come up with a reorganization plan that aims to resolve and satisfy enough creditors to re-emerge as a going concern.

For example, airlines United, Delta, and American all filed for Chapter 11 protection in the mid-2000s and managed to offload enough debt to stay aloft. The most recent reorganization requests include those of Sears, Pacific Gas and Electric Company and Toys R Us.

Once a Chapter 11 reorganization plan is finalized and approved, a debtor comes out of bankruptcy and continues to operate, usually in a stronger position than before.

Benefits of bankruptcy for debtors

Bankruptcy offers at least two valuable benefits to all debtors: time and space.

The moment a debtor files their petition, an automatic stay is imposed on creditors, which functions as a pause button on any collection effort, litigation, or similar action. Creditors can ask the court to lift the stay in certain circumstances, but the standard for doing so is often difficult to meet.

The bankruptcy court has broad authority to review all matters relating to the debtor’s estate, including claims that are distantly related to the main bankruptcy case. The debtor can ask the court to stay other lawsuits apart from the bankruptcy case if they affect the estate. By bringing together all those who have an interest in the assets of the business in one place, a debtor can more efficiently deal with all claims against him.

Debtors then assess their problems and make the changes necessary to be successful after the reorganization. This includes deciding which contracts they wish to postpone and which to abandon.

To avoid a contested process, savvy debtors seek a comprehensive settlement with as many stakeholders as possible and come up with “softeners” to convince undecided creditors to back their plan.

Benefits for creditors

Obviously, bankruptcy gives debtors significant power to reorganize their affairs.

What many people misunderstand, however, is that this power is balanced by strong protections against creditors. before taking many actions outside the ordinary course of business.

The code provides for additional checks on the debtor, including the Unsecured Creditors Committee and the US Trustee. Creditors who are concerned about the debtor’s ability to preserve the value of the estate may ask the court to appoint an examiner or trustee to take possession of the estate, and creditors may even decide to drop the case if they think the debtor is abusing the bankruptcy process.

These and other characteristics add a certain degree of fairness to an inherently unfair situation. The debtor may be seated in the driver’s seat, but there are many other stakeholders who have the power to ensure that the company obeys the rules of the road.

This is an abridged version of an article originally published on August 29, 2019.

[ Deep knowledge, daily. Sign up for The Conversation’s newsletter. ]

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CAA emerges from Chapter 11 | Health care https://18-98plus.com/caa-emerges-from-chapter-11-health-care/ https://18-98plus.com/caa-emerges-from-chapter-11-health-care/#respond Fri, 12 Mar 2021 01:43:03 +0000 https://18-98plus.com/caa-emerges-from-chapter-11-health-care/ The parent company of American Addiction Centers completed its bankruptcy reorganization, during which it deleveraged by about $ 500 million. The reconstituted AAC operates 26 facilities in eight states and employs more than 2,000 people. It is, as he did as he approached its filing in chapter 11, led by CEO Andrew McWilliams, who succeeded […]]]>

The parent company of American Addiction Centers completed its bankruptcy reorganization, during which it deleveraged by about $ 500 million.

The reconstituted AAC operates 26 facilities in eight states and employs more than 2,000 people. It is, as he did as he approached its filing in chapter 11, led by CEO Andrew McWilliams, who succeeded founder Michael Cartwright earlier this year.

“We are grateful to the court and our major secured lenders for recognizing the critical need for our services both now and in the future,” McWilliams said in a statement. “We are thrilled to be positioned for growth as the first company to truly transform drug treatment. “

A quintet of five investment firms that controlled much of AAFC’s pre-bankruptcy debt had asked this summer find a buyer for the company. This effort failed, leaving the businesses under the control of the Brentwood-based company for the foreseeable future.

McWilliams is one of the seven board members of the new AAC. The others have been nominated by investment firms and are:

• Jason Gart, analyst at HG Vora Capital Management, who can appoint two directors as long as he owns at least 17.5% of the shares of AAC

• Sengal Selassie, co-CEO and co-founder of Brightwood Capital Advisors and former managing partner of Cowen Capital Partners. Brightwood also has the same appointment rights as HG Vora.

• Mikhail Katz, Director at Brightwood and Former Senior Vice President at Jefferies Finance

• Loren Beck, commercial litigator and former President and General Counsel of Cliffside Malibu

• Bowen Diehl, President and CEO of Capital Southwest Corp., who will chair the Board of Directors. Diehl is a past president of The Meadows of Wickenburg, an Arizona-based alcohol and drug treatment provider.

• Mark Stolper, CFO of publicly traded RadNet and former investment banker

Similar to HG Vora and Brightwood, asset manager CQS LLC can appoint a board member if he or she owns at least 8.75% of AAC’s equity. Capital Southwest and Main Street Capital may jointly appoint a director provided they also own a combined 8.75 percent.

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Student Loan Debt Remission and Elimination – Top 4 Pros and Cons https://18-98plus.com/student-loan-debt-remission-and-elimination-top-4-pros-and-cons/ https://18-98plus.com/student-loan-debt-remission-and-elimination-top-4-pros-and-cons/#respond Fri, 12 Mar 2021 01:43:03 +0000 https://18-98plus.com/student-loan-debt-remission-and-elimination-top-4-pros-and-cons/ 1. Federal Reserve Board of Governors, “Consumer Credit – G.19,” Federalreserve.gov, April 7, 2021 2. Abigail Johnson Hess, “US Student Debt Has Grown Over 100% in the Past 10 Years,” cnbc.com, December 22, 2020 3. US Department of Education Federal Student Aid, “Federal Student Loan Portfolio”, studentaid.gov, 2020 4. Dudley L. Poston, Jr., “3 Ways […]]]>
1. Federal Reserve Board of Governors, “Consumer Credit – G.19,” Federalreserve.gov, April 7, 2021 2. Abigail Johnson Hess, “US Student Debt Has Grown Over 100% in the Past 10 Years,” cnbc.com, December 22, 2020 3. US Department of Education Federal Student Aid, “Federal Student Loan Portfolio”, studentaid.gov, 2020 4. Dudley L. Poston, Jr., “3 Ways America’s Population Will Change Over the Next Decade,” pbs.org, January 2, 2020 5. New York Federal Reserve Microeconomic Data Center, “Household Debt and Credit Quarterly Report 2020: Q1,” newyorkfed.org, May 2020 6. US Department of Education Federal Student Aid, “Coronavirus and Tolerance Information for Students, Borrowers, and Parents,” studentaid.gov (Accessed May 6, 2021) 7. Carmen Maldonado, “College Price Rises Almost 8 Times Faster Than Salaries”, forbes.com, July 24, 2018 8. Hanneh Gundersen, “Federal Student Loan Remission Update: Find Out Where the Latest Policies and Proposals Stand,” msn.com, May 5, 2021 9. Ashlee Kieler, “You Can’t Get Rid of Your Student Loans in Bankruptcy Due to the Panicked Legislation of the 1970s,” consumerist.com, March 17, 2015 ten. John O’Connor, “Make Student Loan Debt Dischargeable in Bankruptcy… Again”, natlbankruptcy.com, February 28, 2014 11. Federal Student Aid, “Discharge in Bankruptcy,” studentaid.ed.gov (accessed January 4, 2018) 12. Bill Fay, “Bankruptcy & Student Loans,” debt.org (accessed January 4, 2018) 13. Brett Greene, “The $ 1,000 Billion Student Loan Debt Bubble: An Interview with Robert Applebaum,” huffingtonpost.com, November 11, 2011 14. Christopher Ingraham, “7 Ways $ 1.6 Trillion In Student Debt Affects The US Economy,” washingtonpost.com, June 25, 2019 15. Elyssa Kirkham, “What Are the Effects of Student Debt on the Economy?” Experts share their thoughts ”, studentloanhero.com, October 28, 2019 16. Chris Arnold, “Student Debt Forgiveness Would Boost Economy, Economists Say,” npr.org, November 25, 2019 17. Judith Scott-Clayton, “Reducing Racial Gaps in Student Debt and Default: Recommendations to Congress,” ccrc.tc.columbia.edu, March 6, 2019 18. Cristina Silva, “Student Debt Crisis Crashes Black Americans. Here’s how loan forgiveness could help ”, usatoday.com, April 15, 2021 19. Raphaël Charron-Chenier, Louise Seamster, Tom Shapiro and Laura Sullivan, “Student Debt Forgiveness Options: Implications for Policy and Racial Equity”, rooseveltinstitute.org, August 2020 20. Knowledge @ Wharton, “The Student Debt Crisis: Could It Slow Down the US Economy?” », Knowledge.wharton.upenn.edu, October 22, 2018 21. United States Supreme Court, Williams v. United States Fid. & Guar. Co., justia.com, 1915 22. Ethan Trex, “7 Very Successful People Who Survived Bankruptcy,” mentalfloss.com, November 6, 2015 23. Mark Huelsman, “Want to help troubled student loan borrowers? Start with bankruptcy reform ”, demos.org, May 31, 2017 24. Jeffrey J. Selingo, “Has Your College Mistaken You About Job Prospects? It could become much easier to get your loans canceled. », Washingtonpost.com, July 20, 2016 25. Megan Thompson, “Are you over 60 and paying off your student loans?” Tell us your story. », Pbs.org, September 3, 2017 26. Rebecca Safier, “50% Say Mass Student Loan Forgiveness Is Unfair to Former Borrowers: Survey,” studentloanhero.com, April 29, 2020 27. Matthew Noyes, “Canceling student debt is unfair to graduates like me who sacrificed themselves to pay off our loans,” fee.org, January 26, 2021 28. Zack Friedman, “Why Student Loans Shouldn’t Be Canceled,” forbes.com, February 24, 2021 29. Knowledge @ Wharton, “How Student Loan Forgiveness Could Increase Inequality,” knowledge.wharton.upenn.edu, December 15, 2020 30. Emma Ayers, “I sold Bibles to reduce my student debt. It turns out that I didn’t even need this diploma ”, usatoday.com, December 3, 2020 31. Adam Looney, “How progressive is Senator Elizabeth Warren’s loan forgiveness proposal?” », Brookings.edu, April 24, 2019 32. Michelle Cheng, “What Will the $ 10,000 Student Debt Cancellation Really Do?” », Qz.com, March 2, 2021 33. Anthony Carnevale, Stephen J. Rose and Ban Cheah, “The College Payoff: Education, Occupation, Lifetime Earnings”, 2011 34. Kelsey Sheehy, “Undergraduates Explode With Student Loan Payments,” usnews.com, July 24, 2013 35. Mike Brown, “Study on Student Loans for Spring Break,” lendedu.com, March 8, 2017 36. Federal Student Aid, “Understanding Delinquency and Default,” studentaid.ed.gov (accessed January 2, 2018) 37. Rajeev Darolia, “Should Student Loans Be Dischargeable in Bankruptcy? », Brookings.edu, September 29, 2015 38. Gray Gordon and Aaron Hedlund, “Accounting for Increased University Tuition Fees,” nber.org, February 2016 39. Abigail Hall Blanco, “Don’t Forgive Us Our Debt: The Student Loan Forgiveness Case,” insidesources.com, April 14, 2015
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Biden left a generation of college graduates in debt https://18-98plus.com/biden-left-a-generation-of-college-graduates-in-debt/ https://18-98plus.com/biden-left-a-generation-of-college-graduates-in-debt/#respond Fri, 12 Mar 2021 01:43:03 +0000 https://18-98plus.com/biden-left-a-generation-of-college-graduates-in-debt/ Your regrettable Sunday endorsement editorial states that “Biden is a man of compassion, honor and decency.” Anyone can see it. This is not true. Biden gets a lot of “nice” press. But he tried to cut Social Security and Medicare for 40 years. He still lies about his support for the war in Iraq, a […]]]>

Your regrettable Sunday endorsement editorial states that “Biden is a man of compassion, honor and decency.” Anyone can see it. This is not true.

Biden gets a lot of “nice” press. But he tried to cut Social Security and Medicare for 40 years. He still lies about his support for the war in Iraq, a war based on a lie in which 4,500 young Americans died. And his bankruptcy bill – the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 – has buried an entire generation under a mountain of college debt they cannot escape even if they go bankrupt. .

These are not brain cramps. They are cruelty and water companies, and they do not deserve your support.

Tony Sterbenc, Barrington

A vote for Bernie is a vote for Trump

A vote for Bernie Sanders is a vote for Donald Trump. No conservative or moderate will ever support socialism.

I am a military veteran. I helped protect the freedoms of our nation. This election is not about “the establishment” or a “revolution”. We have received the gift of freedom, like owning our businesses and our homes. Allowing the government to tell you how much money you can make is incomprehensible.

And why should everyone get Medicare or a college education without tuition? Wake up, United States!

Philip M. Hopkins, Romeoville

Trump buzzes as virus spreads

First, President Donald Trump said the coronavirus was not serious; it was a “hoax” by the Democratic Party to ruin his chances of re-election. It was a liberal media hype and it went away like the flu when the weather warmed up. Trump has repeatedly contradicted experts from the Centers for Disease Control and Prevention and the World Health Organization.

Then, after weeks of wasted time, a shortage of test kits, and conflicting information, he threw all the mess in the lap of Vice President Mike Pence.

Trump doesn’t believe in science. He is a climate change denier. He has repeatedly cut the budgets of agencies such as the CDC. And now, of course, he blames Obama, as he does for everything.

But the coronavirus is spreading quickly and people are dying. And despite the lies and disinformation Trump is spreading, experts tell us that even with the recent $ 8.3 billion investment in funds, we are catching up and there will likely not be a vaccine for a year. to a year and a half better.

Maybe a new Democratic president will be more competent and truthful.

Tom Minnerick, Elgin

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Victims of Boy Scouts sue to exploit $ 667 million asset pool for abuse claims https://18-98plus.com/victims-of-boy-scouts-sue-to-exploit-667-million-asset-pool-for-abuse-claims/ https://18-98plus.com/victims-of-boy-scouts-sue-to-exploit-667-million-asset-pool-for-abuse-claims/#respond Fri, 12 Mar 2021 01:43:03 +0000 https://18-98plus.com/victims-of-boy-scouts-sue-to-exploit-667-million-asset-pool-for-abuse-claims/ Law360 (Jan. 8, 2021, 8:03 p.m. EST) – Lawyers for victims of alleged Boy Scouts of America sexual abuse sued the bankrupt organization in Delaware on Friday, seeking a Chapter 11 court declaration that over $ 667 million is said to have been spent. limits of property, money and other assets may be the subject […]]]>
Law360 (Jan. 8, 2021, 8:03 p.m. EST) – Lawyers for victims of alleged Boy Scouts of America sexual abuse sued the bankrupt organization in Delaware on Friday, seeking a Chapter 11 court declaration that over $ 667 million is said to have been spent. limits of property, money and other assets may be the subject of damage claims.

The Boy Scouts of America and Delaware BSA LLC’s official Asylum Seekers Committee action challenged a BSA claim that some form of restriction protects more than half of its more than $ 1 billion in cash , land and other assets. For comparison, the debtor identified more than $ 4.37 billion in receivables on Friday, the majority being …

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New “Fair Ground of Doubt” Standard for Alleged Discharge Violations: Proceed With Care | McGuireWoods LLP https://18-98plus.com/new-fair-ground-of-doubt-standard-for-alleged-discharge-violations-proceed-with-care-mcguirewoods-llp/ https://18-98plus.com/new-fair-ground-of-doubt-standard-for-alleged-discharge-violations-proceed-with-care-mcguirewoods-llp/#respond Fri, 12 Mar 2021 01:43:03 +0000 https://18-98plus.com/new-fair-ground-of-doubt-standard-for-alleged-discharge-violations-proceed-with-care-mcguirewoods-llp/ Due to the economic fallout from COVID-19, more bankruptcies are on the horizon, especially as government assistance programs expire and involuntary or voluntary moratoria on creditors’ actions end. [1] Creditors should be aware and prepared to avoid potential claims for alleged violation of the discharge order under the Bankruptcy Code and related ordinances. In Taggart […]]]>

Due to the economic fallout from COVID-19, more bankruptcies are on the horizon, especially as government assistance programs expire and involuntary or voluntary moratoria on creditors’ actions end. [1] Creditors should be aware and prepared to avoid potential claims for alleged violation of the discharge order under the Bankruptcy Code and related ordinances.

In Taggart v. Lorenzen, the United States Supreme Court has unanimously ruled that a creditor can only be found in civil contempt for violating the release when “there is no just cause for doubt as to whether the order prohibited the conduct of the creditor. See 139 S. Ct. 1795, 1799-1804 (2019) (emphasis added). [2] This standard is objective and therefore rejects the use of strict liability in the analysis of alleged discharge violations. As such, a contempt conviction is unlikely when it is objectively unclear whether the actions of the alleged contemptors are to be considered a breach of the discharge or whether these actions comply with applicable and determinative case law.

Subsequent cases limit the actions of eligible creditors

A recent case brought up Taggart in a Chapter 11 case and an alleged breach of a discharge contained in a confirmation order. See Regarding Kimball Hill, Inc., n ° 08BK10095, 2020 WL 5834884 (Bankr. ND Ill. September 30, 2020). In Kimball Hill, the bankruptcy court confirmed a chapter 11 plan (the plan) containing an injunction as well as multiple releases (discharge of debtors and their directors, successors or assigns, affiliates, representatives, etc.). Identifier. at 4 o’clock. Following the confirmation of the plan, a successor to the assets of the debtors (the purchaser) filed a request for the recording of an order (I) executing the confirmation order; (II) order the dismissal of the claims of the state courts; (III) the award of damages and (IV) the award of related compensation. Identifier. to 1. [3] The buyer claimed that despite the entry of an order confirming the plan, a creditor (the surety) continued to demand 100 percent payment of its contingent unsecured debts. Identifier. Specifically, the surety continued his efforts to collect his claims against the buyer in at least five state lawsuits in addition to arguing the validity of his claims (and seeking payment) in bankruptcy court. See Regarding Kimball Hill, Inc., 2020 WL 5834884, at * 9. [4]

The bankruptcy court rejected the surety’s arguments and issued two opinions: (1) the surety violated the confirmation order by seeking, among other actions, to hold the buyer liable to the surety for his claims in at least five state lawsuits; and (2) the breaches of the surety justified the imposition of damages. Identifier. The surety filed notices of appeal in a timely manner with the district court. See generally Fid. & Deposit Co. of Maryland v. TRG Venture Two, LLC, N ° 19 C 389, 2019 WL 5208853 (ND Ill. October 16, 2019). Although the district court found no error or abuse of power in either Kimball I Where Kimball II, the district court nevertheless returned for a contempt decision pursuant to Taggart. User ID. to * 6 (explaining, because Kimball I and II were issued before Taggart, the bankruptcy court did not consider the surety’s actions to be “just cause for doubt”).

Following the referral, the bankruptcy court explained that the contempt of Taggart the standard was met because, among others, the surety never cited any instances where a surety was authorized to pursue potential and unliquidated claims. See, that is to say, Regarding Kimball Hill, Inc., 2020 WL 5834884, at * 12 (explaining the surety “provided that no finding of case law or supporting law [its] theories. “). [5] Therefore, there was no “good cause for doubt” as to the allegedly contemptible conduct of the surety. When faced with a control law that is contrary to a defendant’s arguments, the defendant’s attempts to overturn that law to avoid a verdict of contempt will fail. See ABI, Just Land of Doubt ‘Under Taggart Is not shown by the intention to overturn the previous one, La Rochelle’s Daily Wire (Oct 7, 2020).

Conclusion

Decisions in Kimball make it clear that creditors cannot argue that they have “good cause for doubt” where the contested actions are not: (i) supported by any case law; (ii) seek to create a new law; or (iii) attempt to reverse a control precedent. Taggart setting the appropriate standard is not a strict responsibility; however, the “good cause of doubt” standard does not allow creditors to pursue actions that are not supported by applicable law. Likewise, attempts to undermine a long-standing bankruptcy policy cannot be used to avoid a verdict of contempt of court. Taggart. [6] While the contempt analysis for 11 USC § 524 is now objective (and therefore more friendly to the defendant), parties should keep in mind that apparently permissible behavior may still be the subject of an objection. scrutiny if challenged.


1. American Bankruptcy Institute (ABI), Personal bankruptcies are expected to increase in 2021 when the stimulus ends, Newsroom (October 29, 2020) (“As stimulus checks and other forms of temporary relief run out, experts predict an increase in personal bankruptcy filings, which have so far been muted during the coronavirus pandemic. ”). Between April 2020 and July 2020, personal bankruptcy filings increased by approximately 40,000 and the total number of businesses seeking Chapter 11 protection in July 2020 increased by 52% compared to July 2019. See Economic Studies at Brookings, Bankruptcy and the coronavirus, DA Skeel, Jr., (October 26, 2020).

2. Detention Taggart rejected the application of: (i) the strict liability standard and (ii) the subjective standard of a creditor’s “good faith belief”. Identifier. in 1799. Notably, the Supreme Court is currently considering whether an entity passively retaining possession of the bankruptcy real estate has a positive obligation under the automatic stay to return such property to the debtor or trustee immediately after the filing of the petition for bankruptcy. bankruptcy. See the city of Chicago, Ill. against Fulton, 140 S. Ct. 680 (2019).

3. Prior to the buyer’s request, the surety filed several joint and several claims against the debtors; the regime administration objected to all but one as duplication. With respect to Kimball Hill, Inc., 565 BR 878, 884-86 (Bankr. ND Ill. 2017). The bankruptcy court upheld the objection filed by the plan administrator. Identifier.

4. In a similar, although distinguishable postTaggart In that case, a Chapter 7 debtor claimed the actions of one of his secured creditors with a lien on his vehicle raised policy concerns about the coercive effect of liens on worthless vehicles. In re Bentley, 607 BR 889, 894-95 (Bankr. ED Ky. 2019), confirmed, n ° 19-8026, 2020 WL 3833069 (BAP 6th Cir. 8 July 2020). The debtor alleged that the creditor had violated “the injunction of discharge[par[] attempting to collect discharged debts by refusing to release lien on his worthless motor vehicle until [the debtor] paid the entire balance due on his [] anticipated debt.Identifier. to * 3- * 4. The debtor in Bentley was based mainly on the conclusion of a non-controlling out-of-circuit case, Pratt v. GMAC, in which the debtor argued that “five material facts” made the actions of the obligee in question “objectively coercive”, violating 11 USC § 524 and justifying contempt Identifier. at * 4 & * 7 (citing 462 F.3d 14 (1st Cir. 2006)). In Bentley, the debtor could not overcome the long-standing federal policy that perfect liens under state law survive bankruptcy. In re Bentley, 2020 WL 3833069, at * 11- * 12. The BAP upheld the bankruptcy court’s decision in its entirety. User ID. to * 12 (“the Pratt court never indicated that the presence of the five “important” facts, without more, “made the behavior of a creditor despicable) (citing Johnson v. Home State Bank, 501 US 78 (1991)); see also In re Hrustanovic, 615 BR 224 (Bankr. WD Ky. 2020) (following In re Bentley, 607 BR 889). It is also important to note that the debtors in these cases were not relying on a determining precedent even if that precedent was distinguishable. As such, the creditor was not faced with the same concerns as those addressed in Kimball.

5. The cases on which the surety relied were either easily distinguishable or inapplicable. Identifier. at 12.

6 Regarding Kimball Hill, Inc., No. 08BK10095, 2020 WL 5834884 (Bankr. ND Ill. September 30, 2020); In re Bentley, 607 BR 889 (Bankr. ED Ky. 2019), confirmed, n ° 19-8026, 2020 WL 3833069 (BAP 6th Cir. 8 July 2020). See also In re Hrustanovic, 615 BR 224 (Bankr. WD Ky. 2020); In re Lucks, Case No. 20-42265, 2020 WL 5998162 (Bankr. ED Mich. 9 Oct. 2020) (following In re Bentley, 607 BR 889). See also ABI, ‘Fair Ground of Doubt’ Under Taggart Is not shown by the intention to overturn the previous one, La Rochelle’s Daily Wire (Oct 7, 2020).

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