I am sure all of you have been watching the events along the Gulf Coast. I gather that unlike most hurricanes and tornados, this disaster is getting worse and not better at least in New Orleans as the water there continues to rise. Here is a link for Red Cross donations: http://www.redcross.org/ [...]

The risk associated with rejecting a previously assumed real property lease will be greatly reduced under the new Code amendments which will take effect on Oct. 17, 2005. Specifically, in the circumstance where a debtor assumes a real property lease in its bankruptcy and later rejects that lease, the liability associated with that bonehead [...]

Here is a link to a proposed set of rules which will relate to the amendments to the Code:
http://www.uscourts.gov/rules/CPA2005.html
Leslie

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 will bring about many changes to the practice of bankruptcy law. It has also spread potential traps that could adversely affect debtors who are not careful about their record keeping. Under the new law, unless a debtor complies with stringent new notice provisions, creditors can [...]

“It’s hard to find a word that captures the essence of the FDIC’s bringing this action. Irresponsible is close. Arbitrary, dishonest, exploitative, extortionate, and abusive all fit.”
Yesterday, the U.S. District Court for the Southern District of Texas issued an amazing 131 page Opinion on Sanctions in which it ordered that the FDIC repay a [...]

The Fifth Circuit has just issued a decision holding that a lender that foreclosed on land without seeking Court approval when it knew that the debtor had an “arguable claim of right” to title had willfully violated the automatic stay and was subject to the sanctions imposed by the bankruptcy court. The case [...]

Another interesting event in the airline business: United evidently had a jumbo jet repossessed.
Here is a quote from Chicago Business online:
“While United says it voluntarily returned the aircraft, people close to the lessors say the jet was repossessed ? unusual for a major airline ? as a negotiating ploy. The maneuver pressured United execs to [...]

The cost of filing an adversary proceeding has just increased from $150 to $250, effective Sept. 20, 2005. See the attached Memo from the Administrative Office of the US Courts:
http://www.mow.uscourts.gov/General_Information/05_adv_fee_increase.pdf
Mike

A case issued on August 15th by the Third Circuit Court of Appeals addresses the thorny legal matter of substantive consolidation. Recall that there are two kinds of consolidation in chapter 11 cases: administrative and substantive. Both types are efforts to address situations which arise when there are filings by more that one [...]

A quote from the Indy Star online:
“Last week, the chief executive of embattled auto-parts giant Delphi Corp., Robert Miller, said the company was considering a bankruptcy filing. Officials at Delphi, which recently drew down $1.5 billion of its $1.8 billion revolving credit line, said the new bankruptcy rules would be not favorable to the company.
That [...]