Bankruptcy Information

Lenders had pushed debtor South Edge into bankruptcy

Inspirada project once expected to have 11,500 homes

Secured lenders recovering 9093 pct of amount owed

KBHome, Toll, others to keep controlpapers

Oct 28 A federal bankruptcy judge has cleared the way for the developer of Inspirada, a nearly 2,000acre housing community near Las Vegas, to emerge from Chapter 11 protection under the control of several big U.S. homebuilders.

U.S. Bankruptcy Judge Bruce Markell in Las Vegas on Thursday approved the reorganization plan for South Edge LLC, which had developed the master planned community in Henderson, Nevada, court papers show.

Inspirada was once expected to have about 11,500 homes but stalled as the Las Vegas housing market collapsed.

The South Edge venture included several builders led by KBHome , with its 48.5 percent stake.

Lenders including JPMorgan Chase & Co , Wells Fargo & Co and Credit Agricole pushed South Edge into bankruptcy in December following a loan default.

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Tags: Bankruptcy

This week on The Broke and the Beautiful, two Florida sports teams are feeling the heat from Scott Rothstein’s bankruptcy trustee. Also, Lenny “Nails” Dykstra motors into a plea deal, and British band UB40 is declared bankrupt.

The NBA’s Miami Heat and the NHL’s Florida Panthers are among many who got money from Ponzi-scheme operator Scott Rothstein’s defunct law firm. According to Bankruptcy Beat, trustee Herbert Stettin growled back at the teams, suing the Heat for $156,000 and suing the Panthers for $31,250. The lawsuits show that Rothstein’s law firm, Rothstein Rosenfeldt Adler PA, paid the Panthers in September 2009 and the Heat in October 2009—not long before Rothstein’s $1.2 billion-plus Ponzi scheme was exposed.

Last time The Broke and the Beautiful mentioned Lenny “Nails” Dysktra, he’d just been arraigned on two counts of indecent exposure. This time, he’s hit home on a plea deal over other alleged criminal activities. The Los Angeles Times rep

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Tags: Rothstein, Scott Rothstein

Almost all of my clients hate to schedule their first appointment with me.

Its not because Im a bad guy, or that I treat my clients poorlyjust the opposite. My clients are shown respect and understanding, and a ready ear to hear their problems. So why dont people want to meet with me?

Its because almost all people who file for bankruptcy feel embarrassed. They feel that they are a failure. They feel ashamed that they cannot pay their bills, or that they are faced with a foreclosure, or a lawsuit. They feel completely alone, a pariah with a large letter B tattooed on their forehead that people will point to and turn away.

While these feelings are real, they are wrong.

Debt problems are nothing recent. In fact, the historical creation of bankruptcy can be found in the Bible. The seven-year forgiveness of debts in Deuteronomy 15 is why Chapter 7 received its name.

Bankruptcy in the Constitution predates the Bill of Rights. The right of Congress to establish laws for bankruptcy appears in the 1789 Constitution in Article I, Section 8.

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Tags: Am Bad, Bad

Bank of America Corporation (NYSE: BAC) has been no stranger to troubles nor any stranger to controversies.  It is now looking to be no stranger to credit rating downgrades.  Moody’s has downgraded the credit ratings of Bank of America.

On July 27 came word that Moody’s affirmed the ratings for BofA, Citigroup Inc. (NYSE: C) and Wells Fargo & Co. (NYSE: WFC).  On that same date it supported a negative outlook on the group.

Today’s move after everything we saw in August is probably not a huge shock to those in the know, but this could be a headline dominating event for the rest of the day and for the newspapers on Thursday.  This remains just one more flag of caution that will act to drive the sentiment away from the banks.

It is too bad that the news is on the heels of when the bank has been making efforts to correct its ship.  The “A2? rating was cut down to “Baa1? based in part

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Tags: Bac, Credit Rating

July visit to Hill: “upbeat” outlook on revenues, jobs

Friday’s visit: Solyndra CEO won’t answer questions

Loan failure a headache for Obama administration

WASHINGTON, Sept 23 Just before solar panel maker Solyndra scrambled in August to get more cash from private investors and better loan terms from federal bureaucrats, top company officials went on a political road show.

Brian Harrison, Solyndra’s CEO who on Friday refused to answer questions posed by a House panel, met in July with congressional Republicans who were skeptical about how much money the Obama administration had sunk into the company’s factory. He also met Democrats eager to support clean energy.

“Things were on the upswing, that’s what they told me,” said Diana DeGette, a Democratic member of the House of Representatives.

“I don’t understand how they could paint such a rosy picture to us and then five weeks later be in bankruptcy court,” DeGette told reporters.

The CEO’s assertions were part of a long pattern of Solyndra putting on a positive face for the public as it struggled to keep its business alive.

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Tags: Solyndra, Solyndra Gave