Cycling associations – Company Of Cyclists http://companyofcyclists.com/ Thu, 23 Jun 2022 20:11:14 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://companyofcyclists.com/wp-content/uploads/2021/10/icon-7-120x120.png Cycling associations – Company Of Cyclists http://companyofcyclists.com/ 32 32 How Chapter 13 Bankruptcy Works in Indiana https://companyofcyclists.com/how-chapter-13-bankruptcy-works-in-indiana/ Thu, 23 Jun 2022 18:52:21 +0000 https://companyofcyclists.com/how-chapter-13-bankruptcy-works-in-indiana/ When filing for bankruptcy, remember that Indiana has bankruptcy exemptions and special laws that must be considered. You may be considering filing for Chapter 13 bankruptcy in Indiana due to unexpected difficulties. Fortunately, bankruptcy is a legal debt relief option that allows you to relieve your creditors. The purpose of this article is to show […]]]>

When filing for bankruptcy, remember that Indiana has bankruptcy exemptions and special laws that must be considered.


You may be considering filing for Chapter 13 bankruptcy in Indiana due to unexpected difficulties. Fortunately, bankruptcy is a legal debt relief option that allows you to relieve your creditors.

The purpose of this article is to show you the main aspects of Chapter 13 Bankruptcy in Indiana. You might be wondering why we put so much emphasis on Chapter 13 bankruptcy in Indiana. The reason for this is that a Chapter 13 bankruptcy is complex and Indiana has specific guidelines and rules to understand to help you make the most informed decision.

In this article, we will cover the following points:

  • Chapter 7 vs Chapter 13 Bankruptcy
  • Chapter 13 Indiana Bankruptcy Plan Payment
  • Indiana Bankruptcy Exemptions
  • Indiana Bankruptcy Trustees
  • Indiana Bankruptcy Districts and Court Locations
  • Should I File for Chapter 13 Bankruptcy?

Chapter 7 vs Chapter 13 Indiana Bankruptcy

We’ll look at the Indiana-specific aspects of Chapter 13 Bankruptcy, but before that, let’s dive deeper. Indiana Chapter 13 Bankruptcy and the main differences with Indiana Chapter 7 Bankruptcy.

Understanding Chapter 13 Bankruptcy

In a Chapter 13 bankruptcy in Indiana, debtors pay in installments ranging from 36 to 60 months. Payment is made monthly and lawyers are usually helpful in this process, but why do the majority of people in debt prefer Chapter 13? Well, in such cases, their income might be far too high to file for Chapter 13, and in others, they might own valuable assets.

Understanding Chapter 7 Bankruptcy

This is also known as ‘liquidation bankruptcy according to the bankruptcy code‘, and it is ideal for debtors unable to pay their debts; therefore, they opt for Chapter 7 to try to discharge the debts. As long as you qualify for Chapter 7, the process can be completed in three months and it will cost you less. The calculator below can be helpful in getting an estimate of your Chapter 13 payment plan and whether you qualify for Chapter 7.

At this point, we think you can tell the difference between Chapter 7 and Chapter 13, so let’s look at Chapter 13 bankruptcy in Indiana.

Chapter 13 Indiana Bankruptcy Plan Payment

To get started, the first step is to estimate your potential Chapter 13 payment plan. Indiana plus the IRS National Spending Figures. Some of these Indiana expenses include the Indiana Administrative Expense Multiplier and the Allowable Living Expenses for Bankruptcy in Indiana.

We understand that many people are eager to know if they qualify for Chapter 13 and what kind of payment plan they would get if they opted for Chapter 13. It’s good to remember that a self-assessment Accurate chapter 13 bankruptcy payment arrangement can be a difficult problem to resolve due to the complex bankruptcy forms you must complete.

How much does bankruptcy in Indiana cost?

A common question is, “how much does it cost to file bankruptcy in indianaSo the filing fee is $313 for a Chapter 13 bankruptcy, and a Chapter 13 bankruptcy attorney in Indiana will most likely charge around $3,500 in attorney fees. You can pay attorney fees in the plan and potentially some upfront.

Calculating Your Chapter 13 Payment

A Chapter 13 Calculator can help you estimate the monthly cost of a Chapter 13 bankruptcy. You’ll also be able to estimate all-inclusive costs and fees and compare the pros and cons of different debt relief options.

Bankruptcy is test

In addition, the calculator shown above considers Indiana Bankruptcy Means a Test data presented to estimate your Chapter 7 eligibility. In the table, you can also view details of the Indiana Means Test for Cases Filed on Cases Filed in 2022. You can keep in mind that after a certain size household, authorized increases of $9,000 per household member.

Man with Calculator; image by Towfiqu Barbhuiya, via Unsplash.com.

Indiana Bankruptcy Exemptions

Before pursuing bankruptcy, find out if you own any property that is above Indiana’s bankruptcy exemption. While you may be a suitable candidate for Chapter 7, having a significant stake in properties makes you better suited for Chapter 13 or debt settlement.

When filing for bankruptcy, remember that Indiana has bankruptcy exemptions and special laws that must be considered. If your assets exceed Indiana’s exemptions, you may face liquidation. Here we have a detailed list of Indiana Bankruptcy Exemptions.

There is also something called Federal bankruptcy exemptionsbut Indiana is not among the states that offer you to use federal bankruptcy exemptions.

Indiana Bankruptcy Trustees

For example, the primary responsibility of the trustee is primarily to liquidate the debtor’s non-exempt assets and “administer” the bankruptcy process. You will find that there are many Indiana Chapter 7 Administrators but not as much Indiana Chapter 13 Administrators.

Indiana Bankruptcy Court Locations and Districts

There are two bankruptcy districts in Indiana: Northern Indiana Bankruptcy District and Southern Indiana Bankruptcy District. Let’s dig into each neighborhood.

Northern Indiana Bankruptcy District

There are four bankruptcy courts in the Northern District of Indiana. You might want to watch the local rules and the general orders for this neighborhood. Here is the information for the courts below.

  • South Bend Bankruptcy Court
  • Fort Wayne Bankruptcy Court
  • Hammond Bankruptcy Court
  • Lafayette Bankruptcy Court

Southern Indiana Bankruptcy District

There is also four bankruptcy courts in the Southern Indiana Bankruptcy District. You might want to watch the local rules and local forms. Your lawyer may also know about it. Here is the information for each court.

  • Evansville Bankruptcy Court
  • Indianapolis Bankruptcy Court
  • New Albany Bankruptcy Court
  • High Court of Terre Haute

Is Pursuing Chapter 13 Bankruptcy in Indiana Your Best Option?

If debts overwhelm you, you don’t prefer Chapter 7, or you don’t qualify, you can opt for Chapter 13 bankruptcy. Both Chapter 7 and Chapter 13 have various advantages and disadvantages. Aside from bankruptcy, other alternatives include debt management and debt settlement. Before deciding, you may want to consider the pros and cons of bankruptcy in addition to other debt relief options.

]]>
Preparing PE sponsors and private lenders for a possible wave of bankruptcies https://companyofcyclists.com/preparing-pe-sponsors-and-private-lenders-for-a-possible-wave-of-bankruptcies/ Tue, 21 Jun 2022 16:17:13 +0000 https://companyofcyclists.com/preparing-pe-sponsors-and-private-lenders-for-a-possible-wave-of-bankruptcies/ Fear of an impending recession has increased recently as inflation persists, interest rates rise, global supply chain disruptions persist and commodity price volatility continues in the middle of the war in Ukraine. Add to that a list of privately-funded middle-market companies with over-leveraged balance sheets that have ballooned over the past 18 months, and it’s […]]]>

Fear of an impending recession has increased recently as inflation persists, interest rates rise, global supply chain disruptions persist and commodity price volatility continues in the middle of the war in Ukraine.

Add to that a list of privately-funded middle-market companies with over-leveraged balance sheets that have ballooned over the past 18 months, and it’s clear that private capital providers should prepare for a down economic cycle in the states. -United. and increased Chapter 11 bankruptcy filings.

Some of that distress has already come to the surface as Revlon, Inc., backed by MacAndrews & Forbes. filed for chapter 11 on June 15, 2022 in the United States Bankruptcy Court for the Southern District of New York.

Therefore, private equity sponsors and private lenders should keep several principles regarding Chapter 11 bankruptcy in mind to ensure that they are in the best position to maximize value in the event that a portfolio would experience financial difficulties.

Private capital providers should prepare for a bear economic cycle in the United States and a rise in Chapter 11 bankruptcy filings.

Out-of-court restructuring trumps chapter 11

Chapter 11 is a court-supervised process by which a business can restructure its liabilities (eg, debt, liability, supplier and customer claims) and reorganize into a healthy business. Chapter 11 also allows a business to sell some or all of its assets free and clear of liens, claims, encumbrances, and most successor liability claims.

Notwithstanding the benefits of Chapter 11, if a sponsor-backed company experiences financial difficulty and the board of directors determines, on the advice of counsel, that a restructuring of debt and other corporate obligations business is necessary, the business should seek an out-of-court solution before proceeding with Chapter 11.

There are several reasons why companies, lenders and sponsors might want to avoid Chapter 11 and restructure out of court.

First, an out-of-court restructuring is generally faster and cheaper for the company and its lenders than Chapter 11.

Additionally, in Chapter 11, the company must provide detailed information to the bankruptcy court about its financial condition and conduct prior to bankruptcy, which can be cumbersome and invasive.

Related content: How the middle market is bouncing back

Finally, and perhaps most importantly from the perspective of private equity providers, existing equity is frequently written off in Chapter 11 and holders of funded debt often have their rights changed without their consent. Following its exit from Chapter 11, the holding company has no obligation to restore the integrity of former creditors and shareholders.

In most cases, therefore, private capital providers and their advisors should work with the troubled firm’s advisors to avoid Chapter 11 wherever possible. The best way to do this is to be proactive. The sooner the company, its sponsor and all of its relevant lenders are able to retain professionals and begin to engage in substantive discussions on the terms of an agreement, the better off all parties are likely to be, as this will ensure that there is sufficient time to explore all options for maximizing value.

For this reason, private lenders should consider temporarily waiving their right to seek remedies in the event of a debt security default in order to allow the parties time to negotiate a mutually beneficial out-of-court settlement.

Further, given the time and attention required to do so, the troubled holding company should seriously consider having its advisers prepare the pleadings and perform the due diligence required to file for Chapter 11 if necessary. This will not only avoid a haphazard bankruptcy filing, but allow the company and its equity sponsor to incentivize a consensual deal that leaves former shareholders in place. To do so, he credibly threatens to open a Chapter 11 case that would leave lenders with a pale recovery compared to what they could have obtained through consensual, out-of-court restructuring.

Reorganization via Chapter 11

In some cases, however, a voluntary filing under Chapter 11 is unavoidable. Even in the private credit environment where loan relief makes it less likely that a holding company will breach a debt document, a company may simply run out of cash and have to file for Chapter 11 to obtain bridge financing. In other situations, even if a non-bank junior lender is willing to agree to an out-of-court settlement, senior lenders may not be as agreeable. In this case, without the unanimous consent of the lender for an out-of-court settlement – ​​which is generally required by most corporate debt documents – a company may need to file a Chapter 11 petition to obtain an automatic stay of debt. adverse action by creditors.

From the perspective of a distressed holding company, Chapter 11 offers several key benefits intended to facilitate its reorganization.

First, in certain circumstances, a Chapter 11 debtor may impose its restructuring plan on creditors against their will, even if those dissenting creditors do not receive full recovery. Additionally, because of the special protections the law extends to lenders who provide financing in the event of bankruptcy, it may be easier for a business to get a Chapter 11 liquidity lifeline.

A company may also get rid of unprofitable contracts and leases (for example, those based on commodity prices that differ from the current market price) and leave the counterparty with an unsecured claim that often goes unpaid. totality.

Actively participate in a portfolio company’s Chapter 11 case

Just because there are circumstances where equity sponsors and private lenders may receive little or no clawback in the case of a Chapter 11 holding company doesn’t mean they shouldn’t be actively involved. to the process. Indeed, the exact opposite is true.

Just because there are circumstances where equity sponsors and private lenders may receive little or no clawback in the case of a Chapter 11 holding company doesn’t mean they shouldn’t be actively involved. to the process.

For example, with the assistance of competent advisers, junior lenders or owners of shares that are partially “in-the-money” may be able to acquire shares in the reorganized company by reason of their claims and interests. . It is also not uncommon to see a Chapter 11 debtor issue new securities on favorable terms to sponsors and equity lenders prior to bankruptcy if they are willing to invest fresh money.

In addition, Sponsors and Lenders may each be able to obtain valid releases of certain claims and causes of action held by Company and third parties. It is common for a Chapter 11 restructuring plan to provide for the release of a company’s officers and directors, private equity sponsor and its willing lenders. This is extremely important protection for private capital providers should other interested parties threaten to bring fraudulent transfer demands against the fund in, for example, a leveraged buyout prior to bankruptcy. or a dividend recapitalization transaction.

Related content: Unboxing the performance of branded food brands.

Likewise, these same parties may also threaten to sue based on alleged breaches of fiduciary duties by board members affiliated with private equity funds that have invested in the company. In a relatively consensual Chapter 11 restructuring, these claims are also frequently released.

The foregoing discussion is simply intended to provide providers of private capital with a brief introduction to some of the most important principles of Chapter 11. It is not intended to be the final word in bankruptcy or to replace the advice of a experienced restructuring lawyer. Hopefully, however, the principles discussed above will help funds avoid being caught off guard in the next downturn.

Bryan V. Uelk is a member of Sheppard, Mullin, Richter & Hampton LLPof the finance and bankruptcy team. He represents companies, creditors, distressed buyers and other key stakeholders in all aspects of corporate restructuring, bankruptcy and financial distress. He has considerable experience in guiding clients towards value-added results in out-of-court and in-court restructurings, including numerous Chapter 11 reorganizations across the country. Bryan also served as a JAG officer in the Air National Guard for several years, during which he advised wing and squadron level commanders with various personnel actions and provided all types of assistance. legal aid to airmen and their families.

]]>
Google’s Russian subsidiary files for bankruptcy, Interfax reports https://companyofcyclists.com/googles-russian-subsidiary-files-for-bankruptcy-interfax-reports/ Fri, 17 Jun 2022 22:58:00 +0000 https://companyofcyclists.com/googles-russian-subsidiary-files-for-bankruptcy-interfax-reports/ June 17 (Reuters) – Alphabet’s (GOOGL.O) Russian subsidiary Google has filed for bankruptcy, Interfax reported on Friday, citing online court documents. The subsidiary announced plans to file for bankruptcy in May after authorities seized its bank account, making it impossible to pay staff and suppliers. Read more “The seizure by Russian authorities of Google Russia’s […]]]>

June 17 (Reuters) – Alphabet’s (GOOGL.O) Russian subsidiary Google has filed for bankruptcy, Interfax reported on Friday, citing online court documents.

The subsidiary announced plans to file for bankruptcy in May after authorities seized its bank account, making it impossible to pay staff and suppliers. Read more

“The seizure by Russian authorities of Google Russia’s bank account has rendered the operation of our office in Russia untenable…As a result, Google Russia has filed for bankruptcy,” a company spokesperson said.

Join now for FREE unlimited access to Reuters.com

“People in Russia rely on our services…and we will continue to keep free services such as Search, YouTube, Gmail, Maps, Android and Play available.”

Russia has restricted access to Twitter (TWTR.N) and the flagship social networks of Meta Platforms Inc (META.O), Facebook and Instagram.

Google and its YouTube video hosting service, although under pressure, remain available for the time being. Moscow, in particular, objects to YouTube’s treatment of Russian media, which it has blocked.

But Anton Gorelkin, deputy head of the State Duma committee on information policy, said the American company was not yet at risk of being blocked. Read more

Join now for FREE unlimited access to Reuters.com

Reuters Editing reporting by Jason Neely and Mark Potter

Our standards: The Thomson Reuters Trust Principles.

]]>
Brazos bankruptcy judge rejects arbitration over $770 million contract claim https://companyofcyclists.com/brazos-bankruptcy-judge-rejects-arbitration-over-770-million-contract-claim/ Wed, 15 Jun 2022 23:09:00 +0000 https://companyofcyclists.com/brazos-bankruptcy-judge-rejects-arbitration-over-770-million-contract-claim/ Overhead power lines are seen during record temperatures in Houston, Texas, U.S., February 17, 2021. REUTERS/Adrees Latif Join now for FREE unlimited access to Reuters.com Register Summary Law firms Related documents Brazos walked away from a long-term power purchase agreement with Sandy Creek Energy Associates Companies are co-owners of a coal-fired power plant Brazos said […]]]>

Overhead power lines are seen during record temperatures in Houston, Texas, U.S., February 17, 2021. REUTERS/Adrees Latif

Join now for FREE unlimited access to Reuters.com

  • Brazos walked away from a long-term power purchase agreement with Sandy Creek Energy Associates
  • Companies are co-owners of a coal-fired power plant
  • Brazos said arbitration would have delayed bankruptcy filing for months

(Reuters) – A Texas judge overseeing the bankruptcy of Brazos Electric Power Cooperative Inc has denied a request by one of its creditors to arbitrate a contract dispute worth up to $770 million, saying the arbitration proposed could derail the restructuring of the electricity cooperative and harm consumers in rural areas. Texas at a time when energy prices are already high.

In a hearing on Wednesday in Houston, lawyers for creditor Sandy Creek Energy Associates LP pushed Brazos, Texas’ largest electric cooperative, to arbitrate a contract dispute outside of bankruptcy court.

U.S. Bankruptcy Judge David Jones sided with Brazos, saying Sandy Creek’s proposal could “radically change the landscape” of bankruptcy and ultimately hurt other creditors, including rural customers of electricity.

Join now for FREE unlimited access to Reuters.com

“I don’t accept the explanation that it’s going to be faster at all,” Jones said.

Brazos filed for bankruptcy after a historic winter storm in 2021 left millions of Texans without power and sparked a $2 billion battle between Brazos and the state’s power grid operator. The deadly storm sent energy prices up several thousand percent and caused several other energy companies to file for bankruptcy.

Brazos is trying to settle its dispute with the Texas electricity grid operator before proposing a restructuring plan in court.

Sandy Creek said Brazos must pay for its decision to terminate a power purchase agreement at a coal-fired power plant jointly owned by the two companies.

Brazos has agreed to buy fixed amounts of power generated by the coal-fired plant, and arbitration would quickly clarify how much Brazos owes for backing out of the deal, Paul Hastings attorney Ken Pasquale said.

Brazos refuted Sandy Creek’s estimate of $640-770 million in damages and said the dispute should stay in bankruptcy court. Brazos attorney Holland O’Neil of Foley & Lardner argued that the arbitration would stay the bankruptcy until at least February 2023 and could invite other contract partners to make similar demands.

Jones said he’s been “unusually possessive” of the bankruptcy case because of its potential impact on everyday Texans whose energy bills could rise at a time when utility prices gasoline are $5 a gallon.

“They’re unrepresented, they don’t have a lawyer,” Jones said. “These are people who live in small houses and trailers across Texas, who don’t even know this case is going on.”

The case is In re Brazos Electric Power Cooperative Inc, US Bankruptcy Court, Southern District of Texas, No. 21-30725.

For Brazos: Lou Strubeck and Nick Hendrix of O’Melveny & Myers; Jason Boland, Paul Trahan and Steve Peirce of Norton Rose Fulbright; Lino Mendiola, Michael Boldt and Jim Silliman of Eversheds Sutherland (USA); and Holland O’Neil of Foley & Lardner

For Sandy Creek Energy Associates: Ken Pasquale of Paul Hastings

For ERCOT: Kevin Lippman, Deborah Perry, Jamil Alibhai and Ross Parker of Munsch Hardt Kopf & Harr

Read more:

Brazos Electric asks for more time to control bankruptcy in mediation

Lawsuit over Texas co-op’s $2 billion energy bill suspended for mediation

Texas bankruptcy lawsuit begins with energy bill over $2 billion after 2021 winter storm

Join now for FREE unlimited access to Reuters.com

Reporting by Dietrich Knauth

Our standards: The Thomson Reuters Trust Principles.

]]>
TMS Ep193: IPL Media Rights, Bankruptcy Code, Markets, Weather and Economics https://companyofcyclists.com/tms-ep193-ipl-media-rights-bankruptcy-code-markets-weather-and-economics/ Tue, 14 Jun 2022 02:30:00 +0000 https://companyofcyclists.com/tms-ep193-ipl-media-rights-bankruptcy-code-markets-weather-and-economics/ The fight to clinch the Indian Premier League media rights for the next five years has been no less intense than the games themselves. And the money put on the auction table made the IPL the number two sports league in the world, with only the American National Football League ahead of it […]]]>

The fight to clinch the Indian Premier League media rights for the next five years has been no less intense than the games themselves. And the money put on the auction table made the IPL the number two sports league in the world, with only the American National Football League ahead of it in terms of value per game. So why has the race to grab TV and digital rights grown so intense despite a drop in IPL viewership? And what do the winners have to gain?

But not all business models are as lucrative as IPL. Dozens of companies are launched each year and some return to the pavilion without playing a long game. Ravi Mittal, chairman of the Insolvency and Bankruptcy Board of India (IBBI), recently said that there should be no stigma attached to true corporate bankruptcy and businesses should be given an honorable exit. The Insolvency and Bankruptcy Code 2016 was introduced in May 2016 to address bad debt issues. But it has been plagued by high discounts for banks and delays in the resolution process. So what can be done to get a faster resolution?



Markets also take a beating when a big company goes down. Meanwhile, major benchmarks cracked around 3% on Monday. The Indian rupee also recorded a new all-time low. Against the backdrop of yesterday’s tumble and global sentiment overhang, our next report outlines what’s in store for the markets and what are the key support levels to watch?

Not only does the earth scorch and the people living in it, a good monsoon also calms the economy and the markets. Weather and economy are closely linked. In this episode of the podcast, we explain how nature still reigns over us, despite all the technological advances.

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor

]]>
Alex Jones’ plan to avoid paying Sandy Hook families? Trying to twist bankruptcy laws | Genetic marks https://companyofcyclists.com/alex-jones-plan-to-avoid-paying-sandy-hook-families-trying-to-twist-bankruptcy-laws-genetic-marks/ Sun, 12 Jun 2022 11:51:00 +0000 https://companyofcyclists.com/alex-jones-plan-to-avoid-paying-sandy-hook-families-trying-to-twist-bankruptcy-laws-genetic-marks/ Alex Jones is unquestionably a controversial figure. Its Infowars media platform has been accused to spread conspiracy theories that suggest the Sandy Hook Massacre was a staged event to ruminate that chemicals in our water supply were making frogs gay. For a while – and even now – his business garnered millions of followers and […]]]>

Alex Jones is unquestionably a controversial figure. Its Infowars media platform has been accused to spread conspiracy theories that suggest the Sandy Hook Massacre was a staged event to ruminate that chemicals in our water supply were making frogs gay. For a while – and even now – his business garnered millions of followers and made him rich. It didn’t last. Infowars, to the relief of many, is on the verge of bankruptcy. But, unsurprisingly, Jones creates even more controversy. It does this by attempting to overturn new bankruptcy laws that were enacted to help small businesses.

The new bankruptcy law is commonly referred to as “Subchapter V” because of its place in the rules of Chapter 11 of the US Bankruptcy Code. It was signed into law by Congress as part of the Small Business Reorganization Act of 2019 and took effect in February 2020. The purpose of the law was to make it easier for struggling businesses to obtain protection. more affordable while reorganizing. It applies to business owners who have debts of up to $2.75 million (excluding debts to affiliates or insiders, a consideration that will be important for this story) and where less than 50% of debts are due to business or commercial activities of the debtor or the business owner.

If your business falls into this category, the cost of filing for bankruptcy under the new Subchapter V rules is much less and the process is much easier than filing for bankruptcy under the more onerous Chapter 11 rules. you don’t have to form an official committee of unsecured creditors. You do not have to pay quarterly trust fees in the United States. You can take advantage of a reduced period (90 days) to file a reorganization plan. You can spread the payment for administrative services (including attorney’s fees) over the term of the plan, which can be up to five years. You can also create a reorganization plan that does not require approval from all of your creditors. There are other features of this new law, but you probably now understand that it is designed to help small businesses deal with the pain of bankruptcy and give them a chance to restructure with fewer administrative challenges.

Alex Jones decided to take advantage of Subchapter V. Here’s what he did.

Jones and his company Freedom Speech Systems (FSS) were being sued by parents of children murdered in the Sandy Hook school shooting. Jones did not want his or his company’s assets exposed at trial. He therefore decided to avail himself of sub-chapter V of chapter 11 of the bankruptcy code.

According to a Fortune report, he did so by taking three non-operating entities, including his Infowars website, and filing for protection, naming the Sandy Hook plaintiffs as his creditors. It allocated estimated liabilities to be in compliance with subchapter V so that litigation is delayed and avoids the requirement of creditors’ approval to restructure. In doing so, he attempted to protect Freedom Speech Systems and himself from liability.

According to a report in Axios, Jones tried “to separate some smaller entities and file them for bankruptcy, rather than personally filing or putting the main operating company that owns his business into bankruptcy.” He siphoned off the assets of his small entities and then claimed them as creditors of Infowars, even though he owned them. Even though the Small Business Reorganization Act 2019 made it easier to file for bankruptcy, it still requires companies filing for bankruptcy to be “engaged in business”. It was obvious to many that these small entities were not.

Justice Department lawyers were not intimidated. “It appears that Jones intends to leverage his holding companies’ bankruptcy filings to extend the automatic stay of pending litigation against him and FSS, while retaining full control of FSS and its assets going forward. “, they wrote in their objection. A judge agreed and stopped the action.

Hopefully your small business never has to file for bankruptcy. But if you are forced to do so and choose to do so under the new Subchapter V bankruptcy rules, be sure to follow the rules. You cannot avoid other creditors by creating new entities that you own and distributing assets. Your debtors cannot be you – or other entities you own. And it is better that they are also real businesses. It’s not a conspiracy. It’s the law.

]]>
UK English Defense League co-founder gambles and declares bankruptcy https://companyofcyclists.com/uk-english-defense-league-co-founder-gambles-and-declares-bankruptcy/ Fri, 10 Jun 2022 16:14:30 +0000 https://companyofcyclists.com/uk-english-defense-league-co-founder-gambles-and-declares-bankruptcy/ Posted on: June 10, 2022, 05:25h. Last update: June 10, 2022, 09:10 a.m. Last year a British court ordered Tommy Robinson, the co-founder of the far-right Islamophobic group English Defense League (EDL), to pay £500,000 (US$624,300) to settle a libel suit. He did not comply, but had no problem spending money on gambling before declaring […]]]>

Posted on: June 10, 2022, 05:25h.

Last update: June 10, 2022, 09:10 a.m.

Last year a British court ordered Tommy Robinson, the co-founder of the far-right Islamophobic group English Defense League (EDL), to pay £500,000 (US$624,300) to settle a libel suit. He did not comply, but had no problem spending money on gambling before declaring bankruptcy.

tommy robinson
Tommy Robinson, co-founder and former leader of the anti-Islam group English Defense League. He appeared in court yesterday on contempt of court allegations. (Image: The Independent)

Jamal Hijazi sued Robinson (legally Stephen Yaxley-Lennon) for defamation after he was attacked in October 2018 at Almondbury Community School in Huddersfield. Robinson claimed, after video of the incident flooded social media, that Hijazi violently attacked English girls at school.

Robinson, a former member of the British National Party, added that Hijazi had “beaten a black and blue girl” and threatened to stab another boy. These claims were proven false in court last summer. As a result, the judge ordered Robinson to pay £43,293 (US$54,072) in legal costs after a preliminary hearing in November 2020. However, Robinson apparently had other plans.

In defiance of the law

After Hijazi’s libel trial was successful, a judge ordered Robinson to pay damages of £100,000 (US$124,930). He also had to pay the plaintiff’s legal costs, around £500,000.

Robinson allegedly did not comply with the judge’s order. As a result, Hijazi’s lawyers asked the court to force Robinson to appear and answer all questions regarding his finances. A judge responded to the request and Robinson was due back in court in March.

The EDL founder did not appear. He told the High Court last month that he had missed the hearing due to mental health issues resulting from harassment. However, he finally appeared at a hearing in London yesterday, the BBC reports.

Robinson described himself as a “disaster with paper” during questioning by the High Court about his finances. He also told the court he owed £160,000 ($199,872) to HM Revenue and Customs, the UK tax authority. However, he later said that was only an estimate.

He also said he had spent around £100,000 on gambling in the two years before he declared bankruptcy. He said, “I sold a property and received the money. I then spent it. However, other reports indicate that some of this money may have come from donations he has received.

Robinson also attempted to claim mental distress. He said he suffered from PTSD and the public fallout had been too great. He complained that he was unable to open a bank account as NatWest, HSBC and Lloyds closed him. It’s not so bad, however, because Robinson was able to open an account with an unidentified online bank.

Wrong direction

The EDL pushes the same rhetoric about Islam as other hate groups. For example, it denounces Muslim extremism, but then puts all Muslims in that category. Robinson led the group from 2009 to 2013.

During his audition yesterday, Robinson also answered questions about his autobiography, enemy of the state. In it, he claimed that seven properties were in his or his wife’s name when he helped establish the EDL in 2009.

However, he acknowledged that there were not seven properties. He shrugged when asked if he believed the book was fake and said he had written it years ago. His excuse was that he used a ghostwriter to help him with the book.

During the hearing, questions were also asked about his paid employment with a Canadian far-right news site and an online media startup. He acknowledged a relationship with them, but added that he had not received a salary because “they don’t”.

Robinson will have to return to court in August to determine if he was in contempt of court.

]]>
Sexual abuse victims kick off bankruptcy panel negotiating with Archdiocese of New Orleans | Crime/Police https://companyofcyclists.com/sexual-abuse-victims-kick-off-bankruptcy-panel-negotiating-with-archdiocese-of-new-orleans-crime-police/ Thu, 09 Jun 2022 00:00:00 +0000 https://companyofcyclists.com/sexual-abuse-victims-kick-off-bankruptcy-panel-negotiating-with-archdiocese-of-new-orleans-crime-police/ Two hours before church sex abuse victims serving on a court-appointed committee were to address Archbishop Gregory Aymond in bankruptcy court, a federal judge put a stop to it and removed four of the six victims from the panel. US Bankruptcy Judge Meredith Grabill said in her order that she was forced to withdraw them […]]]>

Two hours before church sex abuse victims serving on a court-appointed committee were to address Archbishop Gregory Aymond in bankruptcy court, a federal judge put a stop to it and removed four of the six victims from the panel.

US Bankruptcy Judge Meredith Grabill said in her order that she was forced to withdraw them because one of their lawyers, Richard Trahant, allegedly disclosed “highly confidential information” in violation of her previous orders.

That leaves just two members remaining on a committee representing about 450 alleged victims of clergy sex abuse in the two-year-old Archdiocese of New Orleans bankruptcy case.






The committee was heading to court on Tuesday to begin mediation, a process to decide how much money the archdiocese owes its creditors. Victims of clergy sex abuse were prepared to argue that the church owed them damages for allegedly allowing the abuse to happen and covering it up.

“It really changes the momentum of the bankruptcy, said James Adams, the chairman of the committee and one of four who were removed from office because they are represented by Trahant. “It could add huge delays to the process on the very day the mediation was supposed to start.”

Grabill’s order says an investigation by the U.S. Trustee, a court officer who acts as the Justice Department’s neutral representative in bankruptcy cases, found that Trahant disclosed privileged information to a ” third party” anonymous and to the “media”, but the report was filed under seal and remained secret.

Grabill’s order states that due to Trahant’s alleged actions, she was forced to remove her clients from the committee and would hold a hearing to consider sanctions against Trahant. But Adams said he and Trahant’s other clients were never given the opportunity to choose another lawyer.

“I’m not a lawyer, but it’s very strange to me that someone else’s perceived actions lead to the judge disciplining committee members,” Adams said. ” It’s shocking. It really is.”

Trahant said punishing his clients for his actions is unfair to them and to all victims of sexual abuse they represent.

The biggest stories in business, delivered every day. Register today.

“Our four clients who were removed from the unsecured creditors committee did nothing wrong,” he said. “These child victims of sexual abuse have selflessly given their time and gone to incredible lengths over the past two years to hold the Archdiocese of New Orleans accountable while representing the interests of approximately 450 survivors of sexual abuse in this bankruptcy. It is a sad day for survivors of childhood sexual abuse and for those who defend them, but we will continue to represent our clients zealously.

As a committee member, Adams had access to sealed court records and he said the judge’s allegation that Trahant leaked confidential information “is not consistent with what I know to be Richard Trahant’s actions. “.

Richard Windmann, head of advocacy group Survivors of Childhood Sex Abuse, also lambasted Grabill’s order, saying he “deprived (the victims) of their voice in the midst of their abusers.”

The archdiocese declined to comment on Grabill’s order.

In addition to ousting the four committee members, Grabill’s order bars Trahant and two attorneys he works with, Soren Gisleson and John Denenea, from further participation in settlement negotiations.

Trahant, Gisleson and Denenea account for nearly one in five plaintiffs alleging child sexual abuse in bankruptcy cases. They also handled nearly all of the three dozen sex abuse lawsuits pending against the archdiocese in state court seeking millions of dollars in damages when the local church filed for bankruptcy protection. in May 2020.

By filing for bankruptcy, the archdiocese was able to stop these civil cases in their tracks, including preventing Aymond and other senior church officials from having to testify under oath in depositions.

And since then, according to court records, Grabill has kept hundreds of documents related to the child sexual abuse allegations secret. According to a July 2020 court transcript, Grabill refused to accept documents into the docket related to allegations of sexual abuse against a living former priest, Lawrence Hecker.

The Archdiocese has acknowledged that Hecker was credibly accused of sexually abusing minors in 2018, but Trahant and Gisleson argued in 2020 that records of the allegations against him, disclosed in a trial in a court of State, had not been fully reported to law enforcement. Instead of leaving those documents in the bankruptcy filing, Grabill said she would destroy them because they had previously been sealed in state court.

Trahant and Gisleson said they were not allowed to see the US trustee’s report and were not given a chance to refute the claim that Trahant leaked confidential information. Gisleson said they would challenge the court’s decision.

Purchases made through links on our site may earn us an affiliate commission

]]>
Delaware Court of Chancery intensifies review of ABC liquidation https://companyofcyclists.com/delaware-court-of-chancery-intensifies-review-of-abc-liquidation/ Mon, 06 Jun 2022 23:34:10 +0000 https://companyofcyclists.com/delaware-court-of-chancery-intensifies-review-of-abc-liquidation/ CONTEXT Delaware has seen a significant increase in the number of assignment for the benefit of creditors (ABC) filings. Through recent decisions, the Court of Chancery has sent a strong message that it expects parties seeking this alternative to bankruptcy to do a better job of justifying the relief they seek. This will require much […]]]>

CONTEXT

Delaware has seen a significant increase in the number of assignment for the benefit of creditors (ABC) filings. Through recent decisions, the Court of Chancery has sent a strong message that it expects parties seeking this alternative to bankruptcy to do a better job of justifying the relief they seek. This will require much more frequent and robust disclosures to the court and to the public.

Given the primarily private nature of the CBA winding-up process and the reduced role of the court, there is a dearth of decisions from which parties can glean judicial advice on the appropriate way to facilitate a CBA. This has led attorneys to take the conservative approach of filing new ABC motions that mirror motions previously approved by the court. This trend has caught the attention of the Court of Chancery, which is now beginning to require enhanced disclosures from assignees.

ANALYSIS

The first shot across the arch by the Court of Chancery came from Vice-Chancellor Laster in In Global Safety Labs, Inc., file number 2022-0309. The decision was followed a few days later by a siege decision issued by Vice-Chancellor Fioravanti in In re Kidbox Inc., case number 2022-0379. Collectively, the two cases send an unequivocal message that the Court of Chancery will be more actively engaged in ABC proceedings.

In Global Safety Laboratories, the court was asked to determine that the company “shall not be required to post additional funds as security to provide compensation for unsecured claims, claims that have not come to the notice of [the company], have not yet occurred or may occur within five (5) years of the date of dissolution. The petition, however, offered minimal information regarding the nature and extent of the company’s assets or liabilities.

Vice-Chancellor Laster further noted that the petition was “a stripped-down four-page document consisting mostly of conclusive assertions”.1 The court observed that “[i]t is not an outlier. It is representative of the requests that the court is regularly seized of in cases involving entities that have disappeared or dissolved and in assignment procedures for the benefit of creditors.2 Citing the unique non-public aspect of the ABC proceeding, Vice-Chancellor Laster observed that “many of these proceedings are handled ex parte, so the court never has the benefit of an interested party who can provide a different perspective or ask probing questions”.3

For his part, Vice-Chancellor Fioravanti in the Children’s box the case was brought with a motion seeking restrictions “comparable to the ‘automatic stay’ provisions under the Bankruptcy Code”,4 including the prohibition against initiating proceedings, seizing property, enforcing liens or collecting debts against Kidbox. Denying the relief sought, the Vice-Chancellor noted that the motion was “widely copied, almost verbatim” from In re BeautyCon Media Inc.another ABC case that also failed to provide sufficient grounds for a suspension.

KEY POINTS TO REMEMBER

Counsel asking the court to exercise its powers to facilitate an ABC must be prepared to withstand closer scrutiny and provide more detail than has always been deemed sufficient. According to Vice-Chancellor Laster, “[w]what the motion lacks, and what the court invariably needs, is context.5 Elaborating on this point, the court noted that future petitions should include more details “about the entity, its history, the path that led to the relief sought, and the parties that may be affected by the relief.” Speaking directly to the members of the bar, the court held that “in the context of an ex parte procedure[s]lawyers have an increased obligation to provide information to the court.

Interestingly, to provide additional guidance, Vice-Chancellor Laster felt that day one statements in bankruptcy proceedings would provide a useful template for those writing ABC petitions. “The court is not trying to convert a proceeding in the Court of Chancery involving a defunct or dissolved entity into a bankruptcy case. The lawyer must determine on a case-by-case basis what information the court should have. Nevertheless, the concept of day one reporting can serve as a guide.6


FOOTNOTES

1 In The Glob Affair. Safety Labs, Inc., CA No. 2022-0309-JTL (Del. Ch. 2022).

2 Identifier. to 1.

3 ID. to 1.

4 In D Kidbox.com Inc., CA No. 2022-0379-PaF (Del. Ch. 2022).

5 In The Glob Affair. Safety Labs, Inc., CA No. 2022-0309-JTL (Del. Ch. 2022).

6 ID.

]]>
From the brink of bankruptcy to Serie A victory https://companyofcyclists.com/from-the-brink-of-bankruptcy-to-serie-a-victory/ Sun, 05 Jun 2022 06:18:44 +0000 https://companyofcyclists.com/from-the-brink-of-bankruptcy-to-serie-a-victory/ Ahmed Fahim Shihab | Published: June 05, 2022 12:18:44 22 May 2022. Fans storm the Piazza del Duomo as AC Milan have just won their first Scudetto since 2011. But how did the Rossoneri fall into the pit and how did the 18-time Serie A champion he reappeared from the vicinity of bankruptcy? The fall […]]]>