Theater club – Acotonline http://acotonline.org/ Wed, 13 Oct 2021 10:16:47 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://acotonline.org/wp-content/uploads/2021/10/icon-4-120x120.png Theater club – Acotonline http://acotonline.org/ 32 32 Seadrill files for Chapter 11 bankruptcy https://acotonline.org/seadrill-files-for-chapter-11-bankruptcy/ Fri, 12 Mar 2021 01:43:05 +0000 https://acotonline.org/seadrill-files-for-chapter-11-bankruptcy/ Image file Posted on February 10, 2021 at 7:11 PM by The maritime executive Oslo-listed offshore drilling contractor Seadrill has filed for bankruptcy in Texas federal court, marking the start of its second cycle of Chapter 11 protection in four years. Five of Seadrill’s Asian subsidiaries filed for bankruptcy in the Southern District of Texas […]]]>


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Posted on February 10, 2021 at 7:11 PM by

The maritime executive

Oslo-listed offshore drilling contractor Seadrill has filed for bankruptcy in Texas federal court, marking the start of its second cycle of Chapter 11 protection in four years.

Five of Seadrill’s Asian subsidiaries filed for bankruptcy in the Southern District of Texas earlier this week. On Wednesday, the company’s board of directors announced that Seadrill itself and most of its consolidated subsidiaries have filed for Chapter 11, with the exception of Seadrill New Finance Limited and a dozen others. units.

The documents filed on the first day ask the court to give the company the power to continue paying its trade creditors and employees. The company says it has $ 650 million in cash and expects to meet its normal obligations to its workforce and suppliers without interruption during bankruptcy proceedings.

The cases in Chapter 11 aim to ensure the continuation of operations for the Seadrill fleet through a restructuring of the balance sheet. The company expects this to result in a significant debt-for-equity swap, which “will likely result in minimal or no payback for current shareholders.” Seadrill is a company registered in Bermuda, and the courts in Bermuda will likely have a supervisory role in the proceedings.

“This announcement marks the start of the court-supervised process that will create a financially viable business over the long term. We are working closely with our stakeholders to ensure that we achieve an outcome that gives us the flexibility to overcome weaknesses in the business. our industry cycles, while also positioning ourselves well for the market recovery, “said Stuart Jackson, CEO of Seadrill.” I would like to thank all of our stakeholders for their continued support as we move forward in this legal process, in particular our customers, suppliers and employees, all of whom demonstrate ongoing support. “

Seadrill entered into a series of forbearance agreements with its major creditors last year, but the last expired on January 29. He had sought the consent of several of his bankers to delay the payment of $ 5.7 billion on his total debt of $ 7.3 billion. Most of this debt will likely be converted to equity, eliminating existing shareholders.

Seadrill filed for bankruptcy in 2017, nearly wiping out its shareholders in a pre-arranged deal that gave the company $ 1 billion in new financing and relieved it of $ 2.4 billion in un-bond debt. guarantee. An additional $ 5.7 billion in bank loans have seen their maturities extended until 2022.



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Chesapeake Energy comes out of bankruptcy https://acotonline.org/chesapeake-energy-comes-out-of-bankruptcy/ Fri, 12 Mar 2021 01:43:05 +0000 https://acotonline.org/chesapeake-energy-comes-out-of-bankruptcy/ Chesapeake Energy, the most publicized victim of the turmoil that swept through the U.S. shale industry last year, emerged from bankruptcy on Tuesday, vowing that an era of debt-fueled supply growth was over. Of the society Chapter 11 filing June was a milestone in the pandemic-induced oil crash, as a spearhead of the shale revolution […]]]>


Chesapeake Energy, the most publicized victim of the turmoil that swept through the U.S. shale industry last year, emerged from bankruptcy on Tuesday, vowing that an era of debt-fueled supply growth was over.

Of the society Chapter 11 filing June was a milestone in the pandemic-induced oil crash, as a spearhead of the shale revolution collapsed under a mountain of liabilities accumulated over years of soaring spending and expansion.

Its reappearance coincides with a 12 month high oil prices and signals the start of a new chapter for the shale sector, as operators pledge to prioritize shareholder returns, not supply growth.

“It’s a new era,” said Doug Lawler, CEO of Chesapeake. “It’s a question of responsibility, profitability and discipline.

Lawler said his company would be a smaller, more focused operator, determined to spend without exceeding its cash flow.

“We are no longer forced to seek cash flow to service the debt,” he told the Financial Times. “This is a fundamental reset of the legacy obligations that impacted our performance in the past. “

Chesapeake’s debts when it filed for bankruptcy last year amounted to more than $ 9 billion. The court-approved deal reached with its creditors last month eliminates about $ 7 billion in debt and will permanently reduce $ 1 billion in annual operating costs.

The company also secured $ 2.5 billion in exit financing and the lenders agreed to back a $ 600 million rights offer.

Chesapeake will end 2021 with just $ 500 million in net debt – less than the annual interest payments it has made in recent years – and generate $ 2 billion in free cash flow over the next five years, Lawler said. .

The company would reinvest 60-70% of its cash flow in production in the future, he said, echoing recent promises from other shale executives to limit supply growth. Chesapeake’s oil production would decline this year and next, while natural gas production would increase only modestly, if at all, Lawler said.

After last year’s crash, U.S. oil and gas executives united around a mantra of the discipline of capital, focusing on margins and not on production growth. This is a big change for an industry where spectacular drilling successes in recent years have made the United States the world’s largest producer of oil and gas.

Lawler has suggested that the “reset” of Chesapeake – a company once synonymous to many investors with the excesses of the shale patch – could now help lead reform.

“We feel a great responsibility to all stakeholders in an industry that has not performed well on capital efficiency and has not performed well for the investment community,” Lawler told the FT .

Chesapeake lost its listing on the New York Stock Exchange after going bankrupt last year, but will begin trading on the Nasdaq on Wednesday. The Houston court that approved the company’s reorganization last month valued the company at around $ 5 billion, although some analysts now say it could be worth close to $ 8 billion.

Chesapeake embodied exuberance of the shale sector because it has built a huge land position and incurred colossal debts in the process. The company was for a time one of the largest producers of natural gas in the United States.

It was part of a strategy for growth at any cost established under Aubrey McClendon, the founder of the company who was once America’s highest-paid CEO. He died in a car accident in 2016, a day after being charged with bid-rigging.

The company’s total liabilities peaked at nearly $ 30 billion in 2012 after years of accumulating land to drill for natural gas and signing contracts with pipeline companies to bring future supplies to market. Analysts said the company got into shale oil too late.

The restructured Chesapeake will once again focus more narrowly on natural gas, reserving new capital only for assets that offer “exceptional returns,” Lawler said. This will include low-cost equilibrium gas fields in the Marcellus Shale in the northeastern United States and the Haynesville Shale in Texas and Louisiana, analysts said.

Lawler also told the FT his company would end its routine natural gas flaring, cooperate with President Joe Biden’s crackdown on methane emissions and achieve zero direct greenhouse gas emissions by 2035. Payment of executives would be tied to environmental goals, he said.

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Recent impact of the CAA revival bill on bankruptcy https://acotonline.org/recent-impact-of-the-caa-revival-bill-on-bankruptcy/ Fri, 12 Mar 2021 01:43:05 +0000 https://acotonline.org/recent-impact-of-the-caa-revival-bill-on-bankruptcy/ [ad 1] Points to consider The new Consolidated Credit Act allows the Small Business Administration discretion to choose which small debtors and people can access PPP loans in bankruptcy, in an effort to clarify contradictory court decisions. The CAA permits debtors in all bankruptcy proceedings was redirect to https://bankruptcyhq.com/ to automatically elect to continue with […]]]>

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Points to consider

The new Consolidated Credit Act allows the Small Business Administration discretion to choose which small debtors and people can access PPP loans in bankruptcy, in an effort to clarify contradictory court decisions.

The CAA permits debtors in all bankruptcy proceedings was redirect to https://bankruptcyhq.com/ to automatically elect to continue with a non-residential real estate lease for up to 210 days (thus prolonging the 90-day legal period) and gives small company debtors an additional grace period on payments after a deposit.

The new law also gives non-residential real estate owners and providers of products and services who have received deferred payments from a debtor extra protection against “preference” claims.

A number of temporary amendments to Title 11 of the United States Code (the Bankruptcy Code) are included in the new 2021 Consolidated Finance Law (CAA), which are aimed at offering relief to creditors and debtors, both businesses and people.

The CAA was signed into law by President Trump on December 27, 2020, and it is a $900 billion stimulus measure that updates prior legislation from the CARES Act, which was passed last spring.

Below is a summary of nine key components of the new Bankruptcy Code provisions.

Debtors or trustees receive PPP loans

The Paycheck Protection Program (PPP), a forgiving loan programme operated by the Small Business Administration, was established by the CARES bill of March 2020. (SBA). There has been dispute about whether PPP loans are available for bankrupt enterprises since the introduction of the CARES Act. PPP loans are only available to debtors if the SBA administrator issues a letter to the Director of the Executive Office of the United States Trustee approving PPP loans to be available during the bankruptcy.

Small company borrowers, chapter 12 family farmer debtors, and self-employed chapter 13 debtors will all be eligible for PPP loans if the SBA administrator approves them during bankruptcy. Commentators point out that this clause does not alleviate the question because it gives the SBA administrator wide power.

These modifications will be phased out on December 27, 2022.

Conditions for Chapter 13 debtors to be released from debt

A discharge from debts is now available, at the bankruptcy court‘s discretion, for a debtor who has failed to make payments under a Chapter 13 plan if: 1) the debtor defaults on three monthly residential mortgage payments by March 13, 2020, due to financial hardship caused by the COVID-19 pandemic, or 2) the Chapter 13 plan provides that the debtor can remedy a default on a loan residential mortgage and the debtor has entered into a qualifying loan modification.

The debtor will not be free of mortgage debt, but he will be eligible for other debt discharge even if he has not made all of his mortgage payments when they are due under the confirmed plan. This clause will be phased out on December 27, 2021.

Companies that go bankrupt are protected from discriminatory treatment

The CAA alters the Bankruptcy Code to ensure that no one can be denied relief under the CARES Act’s sections 4011 to 4042 simply because they are or have been a debtor in a bankruptcy proceeding. The following provisions of the CARES Act are affected by this amendment:

Foreclosure moratorium and right to request forbearance

Mortgage payment suspension for multi-family properties

Eviction requests are on hold for the time being.

This clause will be phased out on December 27, 2021.

Individual and family farmers and fishers) Modifications and ratification of the plan)

The CARES Act allows borrowers with federally guaranteed residential and multi-family mortgages to seek for forbearance because to COVID-19-related financial hardship. The forbearance period for residential mortgages can last up to 12 months. The mortgagor must pay the deferred mortgage payments in full at the end of the forbearance term. Because the CARE Act’s provisions have produced issues in Chapter 13 cases, the CAA permits qualified agents to file proofs of claim for deferred payments even if the claim deadline has past.

Debtors can also use the CAA to change a confirmed Chapter 13 plan to reflect the deferred payment plan. The bankruptcy court, the US trustee, the Chapter 13 trustee, or any interested party may request a change if a debtor does not amend their plan. These modifications will be phased out on December 27, 2021.

In a subchapter V case, performance under an unexpired non-residential real estate lease

If a debtor is undergoing or has suffered considerable financial hardship as a result of COVID-19, the CAA has extended the time frame for subchapter V small company debtors to enforce an unexpired non-residential real estate lease. The debtor can postpone execution for up to 60 days after filing, and the court can extend the time restriction for another 60 days if the court determines that the debtor is still experiencing hardship as a result of COVID-19.

Any unpaid deferred obligation on confirmation is treated as an administrative expenditure that debtors can repay over time under the confirmed plan. This adjustment only affects Case of Subchapter V, and he is scheduled to retire on December 27, 2022.

Acceptance or rejection of enforceable contracts and leases under section 365 (d) (4) Subchapter V Small Business Debtors – The CAA has extended the time period for Subchapter V debtors who have been financially impacted by the pandemic to assume or reject leases by an additional 60 days, bringing the total time period to 210 days after the filing of the motion, reflecting the maximum time period generally available in Chapter 11 cases. Any claim originating from the 60-day extension will be regarded as an administrative expense priority under Section 507 (a) (2) of the Bankruptcy Code, according to the modification.
In Chapters 7 and 11, all debtors and trustees – The CAA increased the time a debtor has to assume or reject non-residential leases from 120 to 210 days after the restructuring order is issued. The bankruptcy code has been changed, and it will remain in effect until December 27, 2022.
Preferably, protection for covered payments.

Owners of non-residential real estate and providers of goods and services who received deferred payments from a debtor after March 13, 2020 are given further protection under the CAA. A debtor or trustee can no longer recover these deferred payments under Section 547 of the Bankruptcy Code. Ideally, as long as the debtor and the owner or supplier are both present:

Before declaring bankruptcy, you signed a lease or an enforceable contract.
After March 13, 2020, any changes to the lease or enforceable contract would be considered null and void.
Initial payments due under the lease or an enforceable contract that have been deferred

The CAA, however, clearly excludes some fees, penalties, and interest from this choice protection exemption. This change will be in effect for the next two years and will apply to bankruptcy cases filed prior to the two-year deadline.

Customs duties are given priority attention

Section 507 (d) of the Bankruptcy Code is amended by the CAA to allow entities that pay a customs duty to the US government for the importation of commodities to be subrogated to government priority status under Section 507 (b) (8). (F). This change is only in effect for a year.

Utilities treatment

Under Section 366 of the Bankruptcy Code, the CAA protects individual debtors by prohibiting utility companies from terminating service if the debtor does not provide adequate insurance for future utility payments, as long as the debtor I makes a utility payment within twenty (20) days of filing for bankruptcy and (ii) continues to make timely payments throughout the case. This amendment is only good for a year.

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NPC International asking price: at least $ 725 million https://acotonline.org/npc-international-asking-price-at-least-725-million/ Fri, 12 Mar 2021 01:43:05 +0000 https://acotonline.org/npc-international-asking-price-at-least-725-million/ NPC International is asking at least $ 725 million for the sale of its Wendy’s and Pizza Hut businesses, according to plans filed with bankruptcy court earlier this week. The franchise giant, which declared bankruptcy in July, said in a plan filed with the court that it would seek at least $ 400 million for […]]]>


NPC International is asking at least $ 725 million for the sale of its Wendy’s and Pizza Hut businesses, according to plans filed with bankruptcy court earlier this week.

The franchise giant, which declared bankruptcy in July, said in a plan filed with the court that it would seek at least $ 400 million for its Wendy’s operations and at least $ 325 million for its Pizza Hut business.

But NPC’s bankruptcy plan also gives the company some flexibility. He could sell the whole business as a single entity if a buyer is interested and that offers a better return. If it cannot find buyers, NPC could also restructure its debt through bankruptcy proceedings.

The reorganization process could mean a number of options for NPC, one of the country’s largest operators of any kind and the largest franchisee for Wendy’s and Pizza Hut.

NPC declared bankruptcy with $ 900 million in debt after several months of work on a possible reorganization. Much of this debt was contracted in 2018 when NPC was sold to two investment firms, Delaware Holdings and Eldridge Investment Group.

The franchisee’s Wendy’s units performed better, given the better performance of this brand in recent years. The Company’s Pizza Hut units have struggled in large part because NPC operates a large number of full-service units. Many of them are closed after the operator has reached an agreement with the franchisor to nearly 300 Pizza Hut units. These closures were to help pave the way for a potential sale of the remaining restaurants.

NPC said in its file that it began marketing its Wendy’s business and chose to continue with a formal sales process after reviewing potential buyers. The company operates approximately 400 Wendy’s branches. The operator said it is looking to sell these Wendy’s restaurants “subject to a minimum purchase price of $ 400 million, in order to achieve a value maximization result for stakeholders at scale. of the company “.

Closures of Pizza Hut restaurants would give NPC 900 of those locations.

NPC could, however, choose to restructure if it cannot find a buyer for all or part of its restaurants. The plan would include a “significant capital investment” that would reduce debt and increase liquidity.



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Another Oklahoma energy company seeks bankruptcy protection https://acotonline.org/another-oklahoma-energy-company-seeks-bankruptcy-protection/ Fri, 12 Mar 2021 01:43:05 +0000 https://acotonline.org/another-oklahoma-energy-company-seeks-bankruptcy-protection/ The number of energy companies headquartered or operating in Oklahoma that file for bankruptcy continues to increase. Gulfport Energy became the last and at least the ninth in the past two years to seek help on Saturday, when it filed for Chapter 11 status with the U.S. South District Bankruptcy Court of Texas . Gulfport’s […]]]>


The number of energy companies headquartered or operating in Oklahoma that file for bankruptcy continues to increase.

Gulfport Energy became the last and at least the ninth in the past two years to seek help on Saturday, when it filed for Chapter 11 status with the U.S. South District Bankruptcy Court of Texas .

Gulfport’s filing is based on a Restructuring Support Agreement (RSA), its petition says it has negotiated with lenders. He said the deal has also been accepted by investors who hold more than two-thirds of its senior unsecured debt. In addition, certain noteholders have agreed to support a minimum investment of $ 50 million in new money by agreeing to accept convertible preferred shares in exchange.

The company also proposes to issue $ 550 million of new senior unsecured notes under the plan to existing unsecured creditors of certain subsidiaries of Gulfport.



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Bankrupt and in debt, Trump’s taxes show he threatens US security https://acotonline.org/bankrupt-and-in-debt-trumps-taxes-show-he-threatens-us-security/ Fri, 12 Mar 2021 01:43:05 +0000 https://acotonline.org/bankrupt-and-in-debt-trumps-taxes-show-he-threatens-us-security/ In a tour de force of hard-earned reporting, the New York Times put digital clothes on what we’ve known about President Donald Trump for decades – that at best, he’s a random businessman, a human billboard artist, and a serial bankrupt artist who crams himself of debts that he may have difficulty repaying. The Times, […]]]>


In a tour de force of hard-earned reporting, the New York Times put digital clothes on what we’ve known about President Donald Trump for decades – that at best, he’s a random businessman, a human billboard artist, and a serial bankrupt artist who crams himself of debts that he may have difficulty repaying.

The Times, in a report on Sunday night that disclosed years of the president’s tax returns, also put a lot of clothes on things we didn’t know. Trump only paid $ 750 in federal income taxes in 2016, the year he was elected president, and the same amount the following year, when he entered the White House. In recent years he hasn’t paid anything at all. He played so fast and so cowardly with the tax authorities that he got involved in an audit. He paid his daughter Ivanka a lush consulting fee which he deducted as a business expense even though it helped him run the Trump Organization. And he’s taken questionable tax deductions on everything from hairdressing to running his personal residences.

ALSO READ: Trump’s Companies Paid $ 750 in Tax in US, $ 145,400 in India in 2017: NYT

Walk away from the tragicomic ugliness and swindle that tax returns define, however, and focus on what they reveal about Trump as the most powerful man in the world and occupying the Oval Office. .

Because of his debt load, his dependence on foreign income, and his unwillingness to genuinely distance himself from his mishmash of affairs, Trump poses a profound threat to national security – a threat that does not will only intensify if he is re-elected. Tax returns also show how Trump has repeatedly betrayed the interests of many average Americans who elected him and remain his most loyal supporters.

I have a certain history with Trump and his taxes. Trump sued me for libel in 2006 for a biography I wrote, “TrumpNation,” claiming that the book distorted his background as a businessman and downplayed the size of his fortune. He lost the lawsuit in 2011. During the litigation, Trump resisted the release of his tax returns and other financial documents. My attorneys got the statements, and while I can’t divulge the details of what I saw, I imagine Trump still refused to release them because they would reveal how bad his businesses and finances are. solid and would highlight some of its strangers. source of income. The Times has now solved this problem for us.

According to the Times, Trump has approximately $ 421 million in debt that he has personally guaranteed and which is due over the next several years. This is consistent with previous reports on how much debt he carries, some of which could be taken from personal financial disclosures he is required to file with the federal government. But Trump’s overall debt is higher than the Times tally, I believe.

Russ Choma reported in Mother Jones last summer that Trump’s debts stood at nearly $ 500 million and would fall due within a relatively short period of time, putting pressure on the president’s finances. But Trump’s debts are even bigger than that, and he’s worked hard to keep them hidden for decades. Dan Alexander, editor-in-chief at Forbes, has been covering Trump’s business interests since 2016 and has published a new book on the President’s financial conflicts of interest, “White House Inc”. Alexander, in a helpful tally he shared on Sunday night, estimates Trump’s total indebtedness at around $ 1.1 billion. Now it’s more like that.


READ ALSO: Main revelations of Donald Trump’s hidden tax information for a decade

Trump is touting $ 10 billion worth since entering the 2016 presidential race, a figure that is simply not true. It is only worth a fraction of that amount, and the more its debt increases, the more it puts a strain on its assets. The Covid-19 pandemic has wreaked particularly brutal havoc in the sectors in which the Trump Organization operates – real estate, travel and recreation. If Trump is unable to repay his debts, he will either have to sell assets or be bailed out by a friend with funds. Trump has never liked to sell anything, even when it comes to hemorrhaging money. So if he’s tempted to run away by getting a handout, that makes him a mark.

If Trump was still just a reality TV quirk, it wouldn’t be overwhelming. But he’s president, and the compromises someone like him would make to save his face and his wallet mar every public policy decision he makes, including matters of national security. If Vladimir Putin, for example, can channel a loan or donation to the president, how harsh is Trump going to be on Russia? Not that we should be worried about Trump’s relationship with Putin. I’m just raising it theoretically.

Trump’s own story of avoiding tax payments – and often paying nothing – is the other issue that should alarm supporters of the president. Trump and the Republican Party engineered a massive tax cut in 2017 that largely benefited wealthiest Americans and largest corporations in the United States. but plucked the nests of the most privileged, rarely paid taxes in recent years.

Trump paid $ 750 in taxes the year he was elected! That’s far less than the $ 130,000 in secret money he paid Stormy Daniels. In 2012, Trump criticized Barack Obama for “only” paying $ 161,950 in taxes. It’s a lot more than $ 750 too! And that’s way more than the $ 0 tax Trump frequently paid.

READ ALSO: Relief for TikTok: US judge blocks Trump administration’s app store ban

Trump even paid a lot less than his really wealthy pals. As Times reporter David Leonhardt noted: “Over the past two decades, Mr. Trump has paid about $ 400 million less in combined federal income taxes than a very wealthy person who paid the average of this group every year. It’s even more disturbing when you compare Trump’s tax payments to an American household earning around $ 75,000 in 2016. These people paid around $ 14,000 in federal income taxes, which is also a lot more. than $ 750.

Anyone who buys Trump’s guts on watching the little guy while he occupies the White House, or who takes charge of his life by attending one of his campaign rallies defying Covid-19, should keep in mind one of the many things reported by The Times justifies: The President of the United States is in it for himself, and he laughs right down to the bank. And he makes fun of you too.



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Is bankruptcy student loan release now within reach? | Business https://acotonline.org/is-bankruptcy-student-loan-release-now-within-reach-business/ Fri, 12 Mar 2021 01:43:05 +0000 https://acotonline.org/is-bankruptcy-student-loan-release-now-within-reach-business/ Getty Images Anna Helhoski, NerdWallet Student loan borrowers looking to have their debt canceled by bankruptcy – the so-called discharge – generally find it to be an expensive process with standards that can be difficult to meet. But recent bankruptcy court rulings and the support of lawmakers for relief from overburdened borrowers may indicate that […]]]>








Getty Images


Anna Helhoski, NerdWallet

Student loan borrowers looking to have their debt canceled by bankruptcy – the so-called discharge – generally find it to be an expensive process with standards that can be difficult to meet. But recent bankruptcy court rulings and the support of lawmakers for relief from overburdened borrowers may indicate that a change is coming.

In January, a New York court discharged over $ 200,000 in student loan debt for a borrower. Then, in August, a federal appeals court ruling eliminated $ 200,000 for a Colorado couple who held 11 private student loan accounts. And in September, a New York judge ruled to apply a $ 400,000 pre-bankruptcy discharge of federal student loans from a borrower that a service agent had failed to execute.

The rulings could set a precedent for future bankruptcy cases involving student loans, said John Rao, an attorney at the National Consumer Law Center.

“A lot of people, even some of the attorneys who represent consumers, have thought for years that you shouldn’t even try because there’s no way you will win, but I think everyone is watching now. kind of new look, “says Rao.

Courts are not the only example of potential relaxation of standards. The House of Representatives recently passed a bill that would extend bankruptcy relief to more student loan borrowers. And former Vice President Joe Biden’s platform, the Democratic presidential candidate, included a bankruptcy reform proposal to end rules that make it “nearly impossible” to pay off private student loan debt. .



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Chesapeake emerges from bankruptcy as CEO Lawler sees ‘new era’ for shale https://acotonline.org/chesapeake-emerges-from-bankruptcy-as-ceo-lawler-sees-new-era-for-shale/ Fri, 12 Mar 2021 01:43:05 +0000 https://acotonline.org/chesapeake-emerges-from-bankruptcy-as-ceo-lawler-sees-new-era-for-shale/ Through Sergio Chapa to 02/10/2021 Doug Lawler, CEO of Chesapeake Energy (Bloomberg) – Chesapeake Energy, the once-iconic energy explorer who helped spark America’s shale gas boom, is emerging from bankruptcy protection like a shadow of itself. And in a way, it’s great with his boss. “Shale has been marked by growth, and growth for all […]]]>


Through Sergio Chapa to 02/10/2021

Doug Lawler, CEO of Chesapeake Energy

(Bloomberg) – Chesapeake Energy, the once-iconic energy explorer who helped spark America’s shale gas boom, is emerging from bankruptcy protection like a shadow of itself. And in a way, it’s great with his boss.

“Shale has been marked by growth, and growth for all the wrong reasons,” said Doug Lawler, CEO of the company, in an interview. “What we see in the future is a new era for shale.”

The driller left Chapter 11 protection on Tuesday. Co-founder and ex-CEO Aubrey McClendon, who died in 2016 three years after being kicked out in a boardroom revolt led by Carl Icahn, is long gone. Chesapeake’s place in the pantheon of major US energy producers like Exxon Mobil Corp. and Chevron Corp. charged.

These days, Chesapeake is refined, mellowed, and looking to find his way into a shale industry that has undergone a painful evolution. Lawler, who has run the company since 2013 (and who says bankruptcy could have been avoided had it not been for the 2020 oil crash) oversaw a 90% reduction in its workforce. As recently as last week, the company carried out another round of job cuts at its Oklahoma City campus and decided to redevelop the sprawling site, much of which is now surplus to needs.

Chesapeake is also committed to producing free cash flow, an increasingly common mantra in shale that has been heavily criticized by shareholders for prioritizing production growth over returns on investment. Their stigma is understandable: over the past decade, the industry has suffered losses of over $ 300 billion. Lawler, 54, said the days of burning shale silver were over.

“They are absolutely over,” he said. “Investors and the market demand it. It requires that we return more money to shareholders and that we have more discipline in our activities. It also requires improvements in ESG.

Darkened outlook

Chesapeake stock jumped 16% to $ 49.97 at 9.44 a.m. in New York City on its post-bankruptcy debut on Wednesday.

Lawler, a former head of overseas exploration at Anadarko Petroleum Corp., dismantled the personality cult that had prevailed in Chesapeake even after McClendon left and instituted an austere and pragmatic focus on financial returns. Under his tenure, Chesapeake reduced his debt by more than half.

But the turnaround was too small and too late given the company’s cash flow demands by debtors just as the pandemic crippled economies – and energy use – around the world. Chesapeake filed for bankruptcy protection in June, with more than $ 9 billion in debt.

The filing came just months after the company refinanced billions of debt. During the course of the case, noteholders and other unsecured creditors claimed that Chesapeake was undervaluing much of its undeveloped real estate and demanded a higher payment.

U.S. bankruptcy judge David Jones sided with the company and approved Chesapeake’s reorganization plan despite the committee’s objection. But Jones found that Chesapeake was worth around $ 5 billion, hundreds of millions more than the company’s estimate.

Departures of experts

Still carrying $ 1.27 billion in debt, the hydraulic fracturing pioneer is breaking out of Chapter 11, with energy markets looking a little better than they were a year earlier. Oil recovered in 2021 after Saudi Arabia slashed production, while in gas, US inventories are expected to end the winter at below normal levels due to freezing weather and robust foreign orders .

But Chesapeake is also re-entering the realm of publicly traded drillers without many of the assets and in-house experts he could previously call upon. Not only did Chesapeake auction off top-tier gas fields in an unsuccessful attempt to stay afloat, but it also fired many of the geologists, engineers and physicists who were among the most experienced shale specialists in the world.

Despite the job cuts, the company’s multigenerational workforce has enough expertise to maximize the value of Chesapeake’s asset base, spokesman Gordon Pennoyer said.

“We’re going to offer a very competitive free cash flow generation machine that has a disciplined approach to our capital reinvestment rate, that has a very solid and disciplined approach to our cash costs – focused not only on profitability but also on sustainability, ”Lawler said.

Chesapeake plans to use $ 1.3 billion in new funding to focus on drilling for gas in the Marcellus shale in Pennsylvania and the Haynesville area of ​​Louisiana. The company is also committed to phasing out flaring – the intentional combustion of excess gas at remote well sites – by 2025 and achieving zero net greenhouse gas emissions by 2035.

“What is clear from the development plans is that Chesapeake will become a natural gas growth company anchored by Marcellus and Haynesville while the oil assets are tapped to generate free cash flow,” wrote Josh Silverstein, analyst. from Wolfe Research LLC, in a note to clients.



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Governor of Puerto Rico rejects key deal with creditors to reduce debt amid reduced pensions https://acotonline.org/governor-of-puerto-rico-rejects-key-deal-with-creditors-to-reduce-debt-amid-reduced-pensions/ Fri, 12 Mar 2021 01:43:05 +0000 https://acotonline.org/governor-of-puerto-rico-rejects-key-deal-with-creditors-to-reduce-debt-amid-reduced-pensions/ The governor of Puerto Rico announced on Tuesday that a federal board of control had reached a key deal that would reduce the overall debt of the US territory by almost 80%, but that his administration was rejecting it because it would require cuts to the pension system ruined public of the island. The standoff […]]]>


The governor of Puerto Rico announced on Tuesday that a federal board of control had reached a key deal that would reduce the overall debt of the US territory by almost 80%, but that his administration was rejecting it because it would require cuts to the pension system ruined public of the island.

The standoff between the governor and a board of directors that oversees Puerto Rico’s finances threatens to throw into limbo attempts to end a bankruptcy-like process for a government that six years ago said unpayable its public debt of more than 70 billion dollars.

The deal was made with creditors who hold general bond and Public Building Authority bonds sold by the government of Puerto Rico and would resolve $ 35 billion in non-debt claims and receivables, according to board of directors. It would also reduce the debt held by these creditors from $ 18.8 billion to $ 7.4 billion, a reduction of 61%, and provide them with $ 7.4 billion in bonds and $ 7 billion in cash, among others.

The board said the deal would free up more than $ 300 million a year for government services, and that instead of 30 cents for every dollar in taxes and fees the government of Puerto Rico collects from creditors , that would be less than 8 cents.

“I firmly believe that this is the best result we can achieve in the current economic uncertainty, not only for the people of Puerto Rico but also for the creditors who have an interest in the long term viability and solvency of Porto. Rico, ”said Chairman of the Board, David Skeel.

Governor Pedro Pierluisi, however, does not agree.

He said in a statement that while the deal is positive in many ways for Puerto Rico, his administration does not support the deal due to go to court next month and requires final approval by a federal judge. overseeing the bankruptcy process.

“The adjustment plan should not be structured in a way that affects our retirees even more,” he said.

Pierluisi added that finalizing the restructuring of part of Puerto Rico’s debt is a priority for his administration, but not at the expense of retirees: “Putting the bankruptcy process behind us is a fundamental step towards recovery and economic development of our island.

Puerto Rico has racked up debt after decades of mismanagement, corruption, and excessive borrowing to balance budgets. A former governor declared it unpayable in 2015, then two years later the government filed for the largest US municipal bankruptcy in history.

Authorities are now restructuring some of that debt amid an almost 15-year economic crisis that worsened after Hurricane Maria, a series of strong earthquakes that struck a year ago and the pandemic In progress.

The creditors groups involved in the deal hold more than $ 11 billion in bonds. Those who hold more than $ 8 billion of those bonds have said they have made a good faith commitment with the board to provide Puerto Rico with the financial flexibility it needs to recover from the pandemic.

“This widely supported compromise will help Puerto Rico avoid years of costly and inconvenient litigation and ultimately accelerate the island’s long-awaited exit from bankruptcy in 2021,” they said in a statement.

The board said mediation is continuing with creditors who hold other types of bonds, including those of the employee pension system.

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Meeting the challenges of bankruptcy for the benefit of all parties https://acotonline.org/meeting-the-challenges-of-bankruptcy-for-the-benefit-of-all-parties/ Fri, 12 Mar 2021 01:43:05 +0000 https://acotonline.org/meeting-the-challenges-of-bankruptcy-for-the-benefit-of-all-parties/ BK Global CEO Brad Geisen is a 30-year veteran of the real estate industry by default, having built or operated websites such as Foreclosure.com, HomePath.com, HomeSteps.com, TaxLiens.com, HUDHouses.com and many others. He developed and led a pilot program for the US Department of Housing and Urban Development (HUD), which evolved into the highly successful HUD […]]]>


BK Global CEO Brad Geisen is a 30-year veteran of the real estate industry by default, having built or operated websites such as Foreclosure.com, HomePath.com, HomeSteps.com, TaxLiens.com, HUDHouses.com and many others.

He developed and led a pilot program for the US Department of Housing and Urban Development (HUD), which evolved into the highly successful HUD M&M program that still operates today. In this pilot, Geisen created for HUD the first online offer management platform, which became the industry standard used by leading government sponsored companies (GSEs) such as Fannie Mae, among others. .

He also created a national training and education platform for Freddie Mac to improve supplier performance and ensure compliance. He also developed the National Short Sale Platform, which Fannie Mae still uses today to facilitate approvals in as little as 48 hours.

Geisen previously spoke to DS5: Inside the industry Bankruptcy trends webcast as we head into 2021. This is an extended version of this video interview.

What do you expect with regards to an increase in bankruptcies in 2021, with so many borrowers potentially reaching the end of forbearance plans?

There has been a lot of discussion about this. The great thing we see is when you look at what we predict [for 2021], and compared to what happened in, say, 2007 — in 2007, you had a lot of properties that had significant negative equity. When the market turned slightly, the only option for homeowners was foreclosure or short selling. In this situation, we have markets that remain strong. Real estate values ​​have increased. We have a lot fewer properties with negative equity, as a percentage, with all of the ones in default. So that’s a big difference.

However, you have a lot of people who haven’t worked and are behind on their other debts: consumer debt, car loan, school debt, credit card. A lot of people live off credit cards. They burnt their savings. Their house is probably the least bit of a problem because they actually had a forbearance, this discount on their house, but they didn’t have any forgiveness on all of their other debts. In a situation like this, bankruptcy is now becoming a better alternative, or a smarter alternative, for many people. We anticipate and predict that bankruptcies will increase because of this.

What should mortgage agents do to help and work with distressed homeowners for whom bankruptcy may be a viable option?

It’s a good question, everyone is trying to figure it out and prepare. We started BK Global five years ago, but we’ve been in this industry for over three decades. We’ve always looked at bankruptcy as a black hole, and I think everyone has. We started BK Global to find better methods of mitigation and bankruptcy. When we first have [entered this space], what we saw was a couple of things. We have seen debtors who have gone bankrupt, who have either settled their debts or renegotiated their debts and hopefully made a fresh start.

But what repairers would generally do is file a claim for redress to get out of bankruptcy. As soon as the debtor goes bankrupt, the administrator files a petition for reparation, which almost raises a wall. Then there is a trustee involved, and the relationship between the trustee and the agents was contradictory. We have seen that all of this is counterproductive when there are a lot of bankruptcy options that are great vehicles for the manager, debtor and trustee to do so.

The first thing we did was put together a program where we bridged the gap between trustees and service officers. What’s ironic is that their intentions and results are really aligned. They were still fighting back and forth, but they want the same result. We have built a technological platform. We brought all of the service agents together nationally and developed programs for service agents and administrators to work together. We created a protocol, an agreed sale, which is basically a short sale in bankruptcy. What’s different about our program is that we get all parties to agree. So it’s not a forced bankruptcy or something contradictory, or some kind of court order. It is all the parties who manage to agree.

What is really advantageous with this program is the savings we make on each file. For an average house of $ 240,000, we saved the repairman and investor about $ 46,000, which is a significant number. We have many cases that represent savings of over $ 100,000, and that’s a big difference.

It creates a lot of goodwill for the consumer. A consumer goes bankrupt to make a fresh start. If they are working to sell their bankrupt home, they have bankruptcy under their belt. If they go through credit counseling, in 18 months to two years that debtor may be bankable again. It’s a new start. This is what they are all trying to achieve. If the home is abandoned in a bankruptcy foreclosure and is dragged into foreclosure, even though the debtor is not responsible for the deficiency, that foreclosure will still be on their record. These programs bring everyone’s consent, save huge amounts of money, and create goodwill for the consumer.

What are the important lessons or take-away points repairers should keep in mind when working with a struggling homeowner? What factors should be taken into account?

One of the things we do to prepare for this next wave is that we rely heavily on our brokers. Our brokers are boots on the ground. We have set up a training program where we certify brokers as Certified Bankruptcy Specialists, and train them to know how to handle these bankruptcy situations and how to work with our program. Then if they need to contact the owner, they know what to do and what to say. There are currently over 800,000 bankrupt properties between Chapter 7 and Chapter 13, and that is before the surge.

Everyone is trying to predict the magnitude of this number after the outbreak, but it is a significant number. The majority of homes, even with our consent sale program, the trustee, in most cases, still gives up the asset. If they do, then we have a second level where we take our brokers that we have trained, who are certified. We contacted this owner, the debtor, to discuss their options. We are working on doing a short sale and we are working with the repairman to put that in place. We put together a structure and an agreement that works for both the server and the debtor, and it ends up being a win-win for both parties.

You’ve been in the industry for almost three decades now, so it’s a long time to deal with anything. What are the main lessons and lessons you have learned from your career so far?

Most importantly, bankruptcy is extremely complicated. Each case is completely different, and the direction in which they are going may be completely different. For repairers, this is in most cases problematic, as a repairman likes to have a structure and a plan. If it is bankrupt, we go down that road. There really is no “one size fits all” for bankruptcy. That’s where the complexities come in, trying to manage these things nationally and in all the different situations.

We have created what we call a bankruptcy advisory service, where we work with the repairer and their legal counsel, and advise them on what we consider the best path. What we do different is that duty officers and their lawyers tend to look at court data to make their decision, and that’s really only a small part of the case. We do a number of other things that have never been done before, where we reach out and have a dialogue with the trustee. The direction the trustees take makes a big difference in the options available to the service agent. By meeting with the trustee, discovering his intentions, aligning his direction with that of the manager, we are able to reach win-win agreements for both parties.



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