Detroit Bankruptcy Case Hot Topic At Legal Conference

The Daily Docket: OGX Enters Bankruptcy

Rosen has been conducting a series of closed-door talks with creditors and has appointed his own team of mediators to help. Kenneth Klee, a bankruptcy attorney for Jefferson County, Ala., which is in bankruptcy, questioned whether it will be productive for the city of Detroit because it has nearly 50 unions. "Mediation in Detroit?" Klee said. "I cannot imagine how mediation is going to be anything other than a waste of resources." But Judge Frank J. Bailey, who oversaw the Chapter 9 bankruptcy of Central Falls, R.I., said mediation "has a role" in resolving municipal bankruptcy disputes. Q: What exactly does "good faith" negotiations mean? A: This question is so difficult that Rhodes recently surprised attorneys involved in Detroit's bankruptcy by giving them until mid-November to deliver official opinions on the definition of "good faith" negotiations.
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FACTBOX-Charting OGX's path through Brazil's bankruptcy process

Regulators seized a Florida bank in a rare midweek failure, American Banker reports . Stephen J. Lubben writes in DealBook about the remaining questions involving failing financial giants. Like some other California cities, Fresno is having its own financial issues, WSJ reports . Extended Stay America Inc. wants to raise up to $593 million in its initial public offering, Bloomberg reports .
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Avoid the stress of bankruptcy with the help of EasyCarMoney.com

Suntech defaulted in March on a principal payment on its $541 million convertible bonds, prompting its main manufacturing unit, Wuxi Suntech, to file for bankruptcy protection in China five days later. Suntech, once the largest panel maker in the world, has not been able to recover after a global glut of panels depressed selling prices and the withdrawal of subsidies in top European solar markets. Its stock price has collapsed since touching a life-high of $86.28 in December 2007. One of the four U.S. bondholders is Trondheim Capital Partners LP. Colin Peterson, a managing director at the distressed-debt firm, told Reuters in March that he would sue Suntech if it failed to make the payments.
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Suntech to challenge U.S. bondholders' bankruptcy push

Brazil's bankruptcy law was enacted in 2005 to correct inefficiencies in the previous system, which was based on postponing debt payments rather than saving a company through renegotiation or restructuring. Creditors, who rarely saw repayment following a bankruptcy filing, would charge exorbitant interest rates in response. Inspired by the U.S. bankruptcy code's Chapter 11 procedure, creditors now play a key role in Brazil's process, which is designed to increase recovery rates, reduce credit risk, and bring down the cost of financing. Some of the largest Brazilian companies to have filed for bankruptcy protection under the new law include airlines Viacao Aerea Sao Paulo SA, known as Vasp; Viacao Aerea Rio-Grandense SA, or Varig; pulp producer Eucatex SA, and electricity holding company Grupo Rede Energia SA. While some companies, such as Eucatex, have successfully emerged from the process, others such as Vasp were liquidated. Others, such as Grupo Rede, were sold off.
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They must total all debts and assets, including a mortgage as debt and the value of property as an asset, and then assess which debts are positive and negative (i.e. college loans are positive and credit card bills are negative). Next, drivers should reduce expenses wherever possible. They must first total all monthly expenses and indicate which are necessities and which are not. Add up the minimum payments and cost of monthly necessities, which is the minimum amount needed to pay bills each month. If a person has difficulty paying bills or reducing debts he or she must find a way to reduce expenses, even if by temporarily switching from name brands to generic labels. Then, it is recommended that drivers find a way to consolidate debt. Several small debts can be difficult to manage, but consolidating them will reduce monthly bills and the amount of payments.
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