One method for obtaining ownership of a company in bankruptcy is to make a Debtor in Possession loan and then, as part or all of the purchase price, agree to forgive repayment of that loan in exchange for buying the company or its assets.  This makes sense because the DIP loan would have to be [...]

As the economy continues to falter overall, there are some bright spots.  As reported earlier, Ford earnings increased and the company saw its first profit in some time.  Now comes a report on gains for home sales.  The question of course is whether this is part of a general and continuing trend upward or whether [...]

J. Michael McBride recently lectured at the University of Houston’s Collecting Debts and Judgments seminar. He spoke to audiences in both Dallas and Houston. Mr. McBride spoke on the timely subject of Foreclosures and Deficiencies. The Firm also published a lengthy paper in conjunction with the speech. Please let us know if you would like [...]

Ford has returned to profitability, at least as reflected in its second quarter reports.  According to the Wall Street Journal [ http://online.wsj.com/article/SB124834005025175293.html#mod=djemalertNEWS ], Ford reported a 2.3 billion profit for the second quarter, as compared to a loss of 8.67 billion for the same time period last year.  “Helped by a lightened debt load, Ford [...]

As you may know I enjoy this topic as it is one area where there are plenty of rules/laws in place but the actual events which occur in a bankruptcy sale often push the limits of the rules and they are always unpredictable.  (I even wrote a book on the topic of asset sales should [...]

A short article in The Economist entitled: “Can’t Pay Won’t Pay” states that “HOUSE prices in America have fallen so far that as many as one in five households have mortgage debt greater than the value of their homes.”  Moreover, some of the defaults on mortgage loans is what the author calls “strategic” meaning that [...]

Unemployment is rising throughout the US; however, among the black population in New York, it is rising at a much higher rate (four times as fast) than for the NY population as a whole.    
 “By the end of March, there were about 80,000 more unemployed blacks than whites, according to the report, even though there [...]

“Lenny Dykstra, the former star center fielder for the New York Mets and Philadelphia Phillies, has filed for Chapter 11 bankruptcy protection, court records show.
Dykstra, 46, has no more than $50,000 in assets and between $10 million and $50 million in liabilities, according to a petition filed Tuesday with the U.S. Bankruptcy Court in the [...]

Texas Attorney general won a victory against GM when the Bankrutpcy Court ruled that Texas law covering dealers still had to be followed even in the context of GM’s reorganization.  “Abbott’s office said this week a U.S. bankruptcy court ruled that General Motors must comply with Texas state law and cannot use the government’s 60 [...]

The markets are reacting to the bad news concerning unemployment in the US which was reported today.  At the time of this post, the Dow was down 186 points. 
“Employers cut a larger-than-expected 467,000 jobs in June and the unemployment rate climbed to a 26-year high of 9.5 percent. Workers also saw weekly wages fall, [...]