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The Precedent Research System for Corporate Bankruptcy
The Precedent Research System for Corporate Bankruptcy
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- Asset Resolution Cases Headed to Nevada 12:59am Nov 25
- BlueHippo Funding Files Chapter 11 After Funding Freeze and FTC Action 12:05am Nov 24
- Details of Reader's Digest's October 2009 Financial Results 12:02am Nov 24
Judge Arthur Gonzalez (S.D.N.Y.) entered an opinion today granting two motions, which were opposed by the debtors and the Offical Committee of Unsecured Creditors, to transfer the chapter 11 cases of Asset Resolution LLC and 14 special purpose entities to the District of Nevada. The motions were filed by certain direct lenders and the United States Trustee and were joined by USACM Liquidating Trust, Debt Acquisition Company of America V, LLC and Eagle Investment Partners, L.P.
The companies are successors by foreclosure of certain rights attributed to defaulted commercial mortgage loans. Asset Resolution was formed by Silar Advisors, L.P. to take title to assets that served as collateral for a $67 million loan to Compass USA SPE LLC, which was used by Compass to acquire the assets of USA Commercial Mortgage Company ("USACMC") in an earlier bankruptcy case through a section 363 sale. Compass defaulted on the loan in September of 2008 and Silar foreclosed.
The USACMC bankruptcy case was commenced and prosecuted in Nevada and, beginning in May 2007, "extensive litigation was commenced in Nevada District Court and Nevada State Court . . . with respect to, inter alia, the ability of the Direct Lenders to terminate the loan servicer under the LSAs without cause under Nevada law." Largely as a result of that litigation, Judge Gonzalez found that the economic and efficient administration of Asset Resolution's bankruptcy cases, the "most important factor in analyzing the convenience of the parties" weighed "heavily" in favor of transfer to Nevada. While the court considered other factors as well, Judge Gonzalez determined that transfer is warranted for convenience of the parties.
netDockets has made a complimentary copy of Judge Gonzalez's opinion available on JDSupra.
About netDockets:
With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.
Learn more and sign up for a free trial account by visiting http://www.netdockets.com/. In addition, please contact us directly to learn more about special free trial and payment options for mid-size and large law firms. Contact information can be found on our JDSupra profile page and at http://www.netdockets.com/.
The companies are successors by foreclosure of certain rights attributed to defaulted commercial mortgage loans. Asset Resolution was formed by Silar Advisors, L.P. to take title to assets that served as collateral for a $67 million loan to Compass USA SPE LLC, which was used by Compass to acquire the assets of USA Commercial Mortgage Company ("USACMC") in an earlier bankruptcy case through a section 363 sale. Compass defaulted on the loan in September of 2008 and Silar foreclosed.
The USACMC bankruptcy case was commenced and prosecuted in Nevada and, beginning in May 2007, "extensive litigation was commenced in Nevada District Court and Nevada State Court . . . with respect to, inter alia, the ability of the Direct Lenders to terminate the loan servicer under the LSAs without cause under Nevada law." Largely as a result of that litigation, Judge Gonzalez found that the economic and efficient administration of Asset Resolution's bankruptcy cases, the "most important factor in analyzing the convenience of the parties" weighed "heavily" in favor of transfer to Nevada. While the court considered other factors as well, Judge Gonzalez determined that transfer is warranted for convenience of the parties.
netDockets has made a complimentary copy of Judge Gonzalez's opinion available on JDSupra.
About netDockets:
With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.
Learn more and sign up for a free trial account by visiting http://www.netdockets.com/. In addition, please contact us directly to learn more about special free trial and payment options for mid-size and large law firms. Contact information can be found on our JDSupra profile page and at http://www.netdockets.com/.
On November 23, 2009, Distinctive Call Response, Inc., BlueHippo Funding, LLC and a number of other affiliates filed for chapter 11 protection in a move that the companies blamed upon actions taken by their payment processor, First Region's Bank, apparently in response to a press release issued by the Federal Trade Commission. Specifically, First Region's Bank froze BlueHippo's funds on November 16th, which BlueHippo asserts was "unwarranted" and "effectively prevented it from being able to pay its creditors in the ordinary course."
According to its bankruptcy filings, BlueHippo offers "an effective alternative way for consumers with poor credit and limited financing options to purchase computers and other electronic equipment." Under BlueHippo's model, a customer enters into a layaway agreement and must pay for the merchandise in advance before it is shipped. Customers can gain "the opportunity to finance their layaway purchase" by making 9-13 weeks of layaway payments and returning signed financing documents. BlueHippo's operations generated $33.1 million in sales in 2008 and $21.5 million in sales through the end of September 2009.
BlueHippo's business model has resulted in the company being "investigated and sued multiple times since its inception." It entered into a consent order with the FTC in April 2008 pursuant to which BlueHippo agreed to fund a consumer restitution pool of up to $5 million for customers who purchased a computer prior to March 2006. However, BlueHippo has continued to face class action suits and suits by state attorneys general. Moreover, on November 12th, the FTC filed a motion in the Southern District of New York alleging that BlueHippo has violated the April 2008 consent order, which gave rise to the freeze by First Region's Bank.
netDockets has made a complimentary copy of BlueHippo's motion for approval of DIP financing available on JDSupra.
About netDockets:
With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.
Learn more and sign up for a free trial account by visiting http://www.netdockets.com/. In addition, please contact us directly to learn more about special free trial and payment options for mid-size and large law firms. Contact information can be found on our JDSupra profile page and at http://www.netdockets.com/.
According to its bankruptcy filings, BlueHippo offers "an effective alternative way for consumers with poor credit and limited financing options to purchase computers and other electronic equipment." Under BlueHippo's model, a customer enters into a layaway agreement and must pay for the merchandise in advance before it is shipped. Customers can gain "the opportunity to finance their layaway purchase" by making 9-13 weeks of layaway payments and returning signed financing documents. BlueHippo's operations generated $33.1 million in sales in 2008 and $21.5 million in sales through the end of September 2009.
BlueHippo's business model has resulted in the company being "investigated and sued multiple times since its inception." It entered into a consent order with the FTC in April 2008 pursuant to which BlueHippo agreed to fund a consumer restitution pool of up to $5 million for customers who purchased a computer prior to March 2006. However, BlueHippo has continued to face class action suits and suits by state attorneys general. Moreover, on November 12th, the FTC filed a motion in the Southern District of New York alleging that BlueHippo has violated the April 2008 consent order, which gave rise to the freeze by First Region's Bank.
netDockets has made a complimentary copy of BlueHippo's motion for approval of DIP financing available on JDSupra.
About netDockets:
With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.
Learn more and sign up for a free trial account by visiting http://www.netdockets.com/. In addition, please contact us directly to learn more about special free trial and payment options for mid-size and large law firms. Contact information can be found on our JDSupra profile page and at http://www.netdockets.com/.
On Sunday, The Reader's Digest Association, Inc. and its affiliates filed their consolidated Monthly Operating Report for the month of October 2009. The companies voluntarily filed for chapter 11 protection in New York on August 24, 2009 and the filing of monthly operating reports is a requirement of debtor companies.
The monthly operating report provides consolidated financial statements for the debtors as well as four schedules:
(1) Schedule of Disbursements
(2) Accounts Receivable Aging
(3) Payments to Insiders and Professionals
(4) Debtor Questionnaire
Highlights of the monthly operating report:
* Revenues were $106.3 million
* Operating profit was $19.8 million
* Net income was $16.6 million
* Cash increased by $62.9 million during October
* Cash at October 31st was $190.7 million
* Primary source of cash increase was a $48.5 million increase in net short-term borrowings
netDockets has made a complimentary copy of the monthly operating report available on JDSupra.
About netDockets:
With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.
Learn more and sign up for a free trial account by visiting http://www.netdockets.com/. In addition, please contact us directly to learn more about special free trial and payment options for mid-size and large law firms. Contact information can be found on our JDSupra profile page and at http://www.netdockets.com/.
The monthly operating report provides consolidated financial statements for the debtors as well as four schedules:
(1) Schedule of Disbursements
(2) Accounts Receivable Aging
(3) Payments to Insiders and Professionals
(4) Debtor Questionnaire
Highlights of the monthly operating report:
* Revenues were $106.3 million
* Operating profit was $19.8 million
* Net income was $16.6 million
* Cash increased by $62.9 million during October
* Cash at October 31st was $190.7 million
* Primary source of cash increase was a $48.5 million increase in net short-term borrowings
netDockets has made a complimentary copy of the monthly operating report available on JDSupra.
About netDockets:
With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent.
Learn more and sign up for a free trial account by visiting http://www.netdockets.com/. In addition, please contact us directly to learn more about special free trial and payment options for mid-size and large law firms. Contact information can be found on our JDSupra profile page and at http://www.netdockets.com/.
netDockets's Notes
Asset Resolution Cases Headed to NevadaNov 25, 2009
BlueHippo Funding Files Chapter 11 After Funding Freeze and FTC ActionNov 24, 2009
Details of Reader's Digest's October 2009 Financial ResultsNov 24, 2009
GSI Group, Inc. Files Bankruptcy in DelawareNov 22, 2009
Axiant, Mann Bracken-Affiliated Collections Company, Files Chapter 11Nov 22, 2009
Penn Traffic Files Chapter 11 for Third TimeNov 18, 2009
Foamex Asks Court to Dismiss Chapter 11 CasesNov 18, 2009
Magna Entertainment Key Employee Incentive Plan ApprovedNov 18, 2009
Stallion Oilfield Services Claims Filing Deadline (Bar Date) SetNov 17, 2009
Wilkes Bashford Creditors' Committee AppointedNov 18, 2009