Chrysler bankruptcy lawyer top pick for Detroit manager

(Reuters) - A bankruptcy expert who collected more than $1 million in fees in Chrysler's restructuring is the top candidate to take over Detroit as emergency financial manager. Kevyn Orr, a partner in Washington with the law firm Jones Day, is expected to be named to the post by Michigan Governor Rick Snyder this week, a source with direct knowledge of the matter said on Tuesday. Orr, 54, has wide experience in business restructuring and a reputation as a calm leader who thoughtfully considers a range of views. He was Jones Day's third most active partner on the Chrysler restructuring, piling up $1 million in fees in the first year on the case. "Facts are stubborn things, and Kevyn is willing to be bound by those and willing to make courageous decisions," said Ben Wilson, Managing Principal at the Washington law firm Beveridge & Diamond. One decision that Orr is likely to face is whether to recommend the city file for bankruptcy, which, if allowed by the state, would be the biggest municipal bankruptcy in U.S. history. Detroit, the birthplace of the U.S. auto industry and Motown music, has suffered an exodus since the U.S. housing crisis, leaving it with falling tax revenue and rising crime. It has "operational dysfunction" in its government, debt of $14 billion, and a deficit projected to hit more than $100 million when its fiscal year ends on June 30, according to a report commissioned by the governor. On Monday, Detroit Mayor Dave Bing said the city had chosen Jones Day as its restructuring counsel. The Detroit Free Press later reported that Orr was the top candidate for emergency manager, which Reuters confirmed by a source with direct knowledge of the matter. Orr did not return calls and emails on Tuesday. Snyder declined to comment. CHRYSLER TRACK RECORD Orr established himself as a restructuring leader during Chrysler's intense five-week dash to complete its sale to Fiat in 2009, a turnaround that some considered improbable at the time. He logged $1 million in fees on the Chrysler restructuring in the first year, according to court documents. He billed as much as $750 an hour, above the average hourly rate of $690 for a Jones Day partner. Two other partners, John Papadakis and Adam Plainer, billed at more than $1,000 an hour. During the initial weeks, Orr appeared regularly in court and examined witnesses as Chrysler battled for approval of its sale to Fiat, a deal backed by U.S. government funding. He briefed reporters during court breaks and patiently walked them through the complex proceedings. Before joining Jones Day, Orr was director of the executive office for the U.S. Trustee, the arm of the Justice Department that oversees bankruptcy. Richardo Kilpatrick, a Detroit attorney who worked with Orr in the Trustee's office, said he expected Orr to try to work by consensus rather than by force. "He's got the right skill set to deal with the issues confronted here, if anybody does," Kilpatrick said. Standing behind Orr will be Jones Day, with 2,400 lawyers, making it the world's fourth-largest law firm, according to rankings by the American Lawyer magazine. The firm recently added Bruce Bennett, a Los Angeles-based bankruptcy attorney who is among the most experienced in the country with municipal, or Chapter 9, bankruptcy. Bennett oversaw the bankruptcy of Orange County, California, which at the time was the largest municipal bankruptcy ever. CITY OPPOSITION Orr, originally from Florida, earned his graduate and law degrees at the University of Michigan, according to Jones Day's website. An African-American, he is the chairman of Jones Day's diversity task force. The pick was "very shrewd by the governor," said John Pottow, a professor specializing in bankruptcy law at the University of Michigan Law School. But not everyone reacted positively to reports of his imminent appointment to the job. "Jones Day has a reputation of protecting big banks while leaving out the small people," said Reverend Charles Williams, head of the Michigan chapter of New York-based Reverend Al Sharpton's National Action Network of community activists. "They'll save bondholders and banks, but not the small, local-based businesses that employ Detroit (residents)." Orr's emergence on Tuesday coincided with a hearing in the state capital, Lansing, where representatives of the Detroit City Council tried to convince state officials not to appoint an emergency manager. David Whitaker, director of the City Council's research and analysis division, said bringing in an outside manager would sideline elected leaders and was "beyond anti-democratic." "Why take a move like that that's so provocative when you have a document in place that everybody's signed onto?" he said, referring to an April 2012 agreement between the city and the state. Edward Keelean, Detroit's acting corporation counsel, warned that the appointment of an emergency manager would trigger court challenges by labor unions and others. An emergency financial manager would have authority over Detroit's fiscal affairs, including contracts, asset sales, layoffs and consolidations. If a manager is appointed, the city can challenge the decision in state court. But such court challenges have failed in Michigan in the past. Michigan Chief Deputy Treasurer Mary MacDowell, who presided over the hearing, said she would review the information presented by city officials and send her recommendation to Snyder. (Reporting by Steve Neavling, additional reporting by Dawson Bell, Tom Hals, Karen Pierog and Ben Klayman; Editing by Eddie Evans, Bernard Orr)

Bankruptcy Court Approves Process for Selling Rhythm & Hues

Despite some late fireworks, a California federal bankruptcy judge has approved an auction for the sale of VFX house Rhythm & Hues. The decision to go ahead with bidding came Wednesday in an eight-page order issued by Judge Neil Bason. South Korea’s JS Communications has been established as the "Stalking Horse Bidder" and will make a $425,000 cash deposit that it will be able to get back if the company ultimately doesn't win the bidding. STORY: Rhythm & Hues Draws Early Bid in Bankruptcy Sale Interested buyers will have to make qualified bids by March 22. The auction commences March 27, and a hearing on the approval of the sale of R&H will happen the following day. In making the decision to go ahead with the auction, Bason noted that he had considered various declarations including the response that was filed by the Committee of Unsecured Creditors. In that filing, the committee questioned the loans that have been allowed to keep R&H in operation and also the proposed auction, saying that liquidation might be a better approach to the recovery of creditors' money. That drew an angry response from 20th Century Fox and R&H's lawyers, who defended how the bankruptcy was playing out. Bason didn't articulate his reasoning in the court documents, but there will be future opportunities for objections to the sale. Parties other than the committee must file oppositions to the proposed sale of assets free and clear of liens, claims and interest by March 25. The committee can file its own objection by March 28, the date in which R&H's future seems likely to be determined.

Portland law firm recovers from bankruptcy to continue legal fight against hormone replacement drugs

A Portland law firm that fell into bankruptcy while waiting out a prolonged legal battle against a big pharmaceutical company has recovered, paid all of its debts and expects the case to be formally closed next month. After nine years of legal maneuvering, Williams Love O'Leary & Powers reached a settlement last year with Pfizer Inc. on behalf of about 500 women who allegedly developed breast cancer or other diseases as a result of using the company's hormone replacement therapy drugs. Terms of the settlement are confidential, firm partner Michael Williams said, but it was enough to pay the firm's debts. The firm filed for Chapter 11 bankruptcy in 2011 because it couldn't make payments on a bank loan during the expensive legal fight. The firm continued to operate after the filing, which provided the lawyers some breathing room. "It was a matter of time," Williams said. "We knew they'd eventually settle and it probably be enough to pay (debts), but the timing of it was the problem." Williams Love O'Leary & Powers may be the only law firm to emerge intact from a Chapter 11 reorganization, said Albert Kennedy, an attorney with Portland's Tonkon Torp firm who represented Williams and his partners. "What usually happens is Chapter 11 is almost always used to facilitate an orderly liquidation of the firm," Kennedy said. "The biggest single key was the commitment of the partners to stay together and make this work." In pursuing the Pfizer case, the firm spent $3 million in advance costs such as obtaining expert testimony, travel and other expenses, Kennedy said. The firms’s focus on complicated pharmaceutical litigation made it difficult to ride out the expense. Its cash flow from other work was enough to support daily operations, but not to pay the full amount of bank loans. Kennedy called the firm's survival a "very good result." Williams in particular is a "linchpin of the local legal community, a nationally-known tort lawyer," Kennedy said. "It's very gratifying to see them weather this storm, get their creditors paid off, the landlord paid off, and continue to provide service." The Portland firm's settlement with Pfizer was among an estimated 10,000 lawsuits brought by litigants who claimed the company's hormone-replacement drugs caused breast cancer. A June 2012 report by Bloomberg News said Pfizer had paid $896 million to resolve 60 percent of the cases. Pfizer inherited the litigation in 2009 when it bought Wyeth, which manufactured hormone-therapy drugs such as Prempro. The drug was intended to treat conditions associated with menopause.

Revel CEO resigns weeks before expected bankruptcy filing

ATLANTIC CITY — Kevin DeSanctis, the man who guided Atlantic City's Revel casino-hotel through its tortuous development, only to see it struggle amid the cutthroat East Coast gambling market, is stepping down as head of the $2.4 billion resort. The company announced Wednesday that DeSanctis and chief investment officer Michael Garrity will resign from their positions with Revel Atlantic City but retain their jobs with Revel Group, the holding company that developed the resort and holds its license. There, they will work on developing amenity projects for Revel. Taking over the resort's day-to-day operations is Jeffrey Hartmann, a 20-year veteran of the casino, hospitality and leisure industry. His duties will begin once he is approved by New Jersey casino regulators.The moves come less than two weeks before Revel is expected to file a pre-packaged Chapter 11 bankruptcy filing that will wipe out about two-thirds of its debt and give lenders a greater equity stake in the resort in return. "Having worked with Jeff for many years, I have no doubt he is the right person to lead Revel AC through the restructuring process and oversee day-to-day operations," DeSanctis said in a statement. "Revel's resort is the marquee asset in the Northeast and with a right-sized balance sheet and under Jeff's stewardship, I am confident that revel is poised for success." The company's board of directors said in a statement that Hartmann is "a natural choice for the role." Hartmann said he is "deeply committed to ensuring that we operate our business as usual, and emerge from this process positioned for long-term success."Revel opened last April but has languished near the bottom of Atlantic City's 12 casinos in terms of gambling revenue. Many hoped that Revel would be the kind of game-changer that Atlantic City desperately needs to shake off a six-plus year stretch of plunging casino revenues and declining market share. But it never really caught on. After reaching a high point of $20 million in revenue last August, Revel's take from gamblers sank, reaching just $6.2 million in November, a month in which all 12 casinos were affected by the aftermath of Superstorm Sandy. Its revenues have since rebounded somewhat to $9 million last month.

Bel Air payroll company AccuPay files for bankruptcy protection

A Bel Air payroll company under investigation for allegedly not forwarding clients' tax payments to tax collectors has filed for bankruptcy. AccuPay Inc. filed a petition for a Chapter 7 bankruptcy Tuesday in U.S. Bankruptcy Court in Baltimore, listing 95 creditors and debts of between $100,001 and $500,000. Chapter 7 allows for an orderly liquidation of a company's assets to pay of creditors. A bankruptcy attorney for the company's owners said Wednesday that his clients believe they will have funds available to pay creditors. In the bankruptcy filing, the company lists estimated assets of between $100,001 and $500,000. "The principals believe that there is sufficient money to pay the claims," said James A. Vidmar, the attorney for AccuPay's owner, Beverly Carden. "That's what they think, and that's subject to bankruptcy court procedures." Carden could not be reached Wednesday for comment. The East Churchville Road firm, which has an estimated 500 to 600 clients, shut down at the end of February after a Bel Air veterinary hospital, Animal Emergency Hospital, accused it in a lawsuit of "repeatedly and regularly" failing to pay or making only partial payments of federal and state withholding and unemployment taxes over the past five years. DuClaw Brewing Co. had filed a complaint last summer. Three more AccuPay clients — a law firm, another veterinary clinic and a construction company — then filed lawsuits making similar allegations, bringing the total losses alleged in pending complaints to more than $465,000. The company had been sued by other clients for similar claims about five years ago. Since the recent lawsuits, both the Bel Air Police Department and the Internal Revenue Service have started investigating the firm. Vidmar, AccuPay's bankruptcy attorney, said he did not know how many of the 95 businesses and individuals listed as creditors are clients. Some of those listed could be owed business expenses, he said. "There were 95 potential creditors listed, and a lot are probably owed nothing," Vidmar said. "That's got to play out. When the company abruptly stopped, there may have been deposits in the works and payments in the works. There is money there. The bank accounts are there. There's money there to be distributed." But some creditors worry that relief may come too late to help, or not at all. Gary Burrows, owner of Honor Star Service Inc. of Dallastown, Pa., an AccuPay client that provides snack services to offices, says his company is out about $23,000 worth of payments that AccuPay was supposed to make last year to the IRS and tax collectors in Maryland and Pennsylvania. "It's going to be a long, drawn-out thing," Burrows said. "The tax people are going to want to get paid before all this is settled, and being a small company, we just don't have that money laying around." Vidmar said the bankruptcy trustee assigned to the case has begun working with the company and attempting to secure funds that had been frozen as part of a Harford County judge's order. Police in Bel Air have said the investigation could involve hundreds of potential victims — any business that hired AccuPay to handle its payroll and remit its state and federal taxes.

Western Shooting Journal provides better advice than Biden's on shotgun home defense

Check out our April issue of Western Shooting Journal for the full article. Western Shooting Journal's April issue will hit newsstands around the country at the end of March, and can also be purchased online for $1.89/issue. Gun pro Keith Sipmann of Arizona explains how to correctly use a shotgun for home defense, that will not get you arrested, unlike Biden's advice.(click image to enlarge)

Shotgun self-defense tips from Joe Biden

Continuing Resolutions Splitting Conservatives

As Congress fails year after year to agree upon an annual budget, the government is kept limping along through temporary Continuing Resolutions (CRs). The budget is supposed to be adopted each year by October 1st, the beginning of the fiscal year. Instead, Congress has been passing multiple stopgap funding measures each year. Under Senate Majority Leader Harry Reid, Democrats have not passed an annual budget since April 29, 2009. The CR was approved by a vote of 267 to 151, with most Republicans voting in favor and most Democrats opposed. Democrats voted against it because it included deep spending cuts and freezes.

On March 6th, 2012, only sixteen Republicans voted against the latest CR. Erick Erickson of Red State refers to the bulk of them as the “Conservative Fight Club.” Most of them come from the libertarian or Tea Party wings of the Republican Party.

Yet, are they any more principled than the conservatives in the party who voted for the latest CR? Conservative stalwarts like Rep. David Schweikert (R-Ariz.), Michele Bachmann (R-Minn.) and Steve King (R-Iowa) all voted for it.

Read the rest of the article at Selous Foundation for Public Policy Research

Dutch bankruptcies hit record in February

AMSTERDAM -- More Dutch companies declared bankruptcy in February than at any time since records began in 1981. The country's Central Bureau for Statistics also says Monday that on a three-month average, bankruptcies are at their highest level on record: around 680 per month, not counting one-person businesses. The Dutch economy is struggling as the government cuts spending and increases taxes to meet European budget rules that require countries to get their budget deficits down to 3 percent of their annual gross domestic product. Real estate markets are especially weak, due to a glut in office space and cuts in residential mortgage deductions. The country's economic forecasting office expects the Dutch economy to shrink for the second year running in 2013 before muted growth returns in 2014. Read more here: http://www.miamiherald.com/2013/03/11/3279146/dutch-bankruptcies-hit-record.html#storylink=cpy

Onondaga County bankruptcies: March 7

These are commercial and personal bankruptcies filed recently in the U.S. Bankruptcy Court for the Northern District of New York in Utica. The list includes major unsecured creditors of more than $5,000 when available. Bankruptcy definitions: Chapter 7, debtor sells assets in return for discharge of debts; Chapter 11, debtor company reorganizes under court supervision; Chapter 12, family farm repays debt; Chapter 13, debtor arranges plan to repay debt. March 7 Karl E. Ashley and Kristine M. Ashley, Clay, Chapter 7, major unsecured creditor: Spruce Mountain Pioneers LLC, Hermon, $143,960. Richard G. Bracy Sr., also known as Richard Bracy and Claire M. Bracy, formerly doing business as Richard G. Bracy JMJ Taxi, Weedsport, Chapter 7, major unsecured creditor: Social Security Administration, Syracuse, $14,000. Katrina Y. Brooks, Syracuse, Chapter 13, major unsecured creditor: Social Security Administration, Salt Lake City, Utah, $29,204. Heather A. Buff, Skaneateles, Chapter 7, major unsecured creditor: Bank of America Corp., El Paso, Texas, $21,354. Mark William Cole, Syracuse, Chapter 7, major unsecured creditor: HSBC Finance Corp., Brandon, Fla., $19,397. Gene A. Corrice Jr. and Angela K. Corrine, formerly known as Angela K. Gordon, North Syracuse, Chapter 7, major unsecured creditor: SLM Corp., Wilkes-Barre, Pa., $22,650. Daniel R. Duffy, Camillus, Chapter 13, major unsecured creditor: F.W. Webb Co., Bedford, Mass., $53,015. John J. Dunn III, Syracuse, Chapter 7, major unsecured creditor: Bank of America Corp., Wilmington, Del., $7,405. Jennie M. Flood, Clay, Chapter 13, major unsecured creditor: JPMortan Chase & Co., Wilmington, Del., $15,000. Eleni W. Georgiades, Syracuse, Chapter 7, major unsecured creditor: Bank of America Corp., Wilmington, Del., $12,120. Norman J. Harp III and Stephanie A. Harp, also known as Stephanie A. Ventura, Liverpool, Chapter 7, major unsecured creditor: Carolina Collegiate, Columbia, S.C., $6,424. Jacob C. Hopp and Christina L. Hilton-Hopp, formerly known as Christina L. Hilton, also known as Christina L. Hopp, Syracuse, Chapter 7, major unsecured creditor: SLM Corp., Wilkes-Barre, Pa., $34,734. Jonna L. Wright, formerly known as Jonna L. Barker, Jonna L. Laribee, Syracuse, Chapter 7, major unsecured creditor: Oneida Healtcare Center, Oneida, $14,921. Henry D. McNeill and Nancy M. McNeill, formerly known as Nancy M. Gannon, Jordan, Chapter 13, major unsecured creditor: Citigroup Inc., Kansas City, Mo., $13,766. Kathleen I. Mirarcki, Syracuse, Chapter 7, major unsecured creditor: JPMorgan Chase & Co., Wilmington, Del., $8,546. Matthew C. Mosher, Syracuse, Chapter 7, major unsecured creditor: Amercican Education Services, Harrisburg, Pa., $7,597. Wilma M. Nixon, Syracuse, Chapter 7, major unsecured creditor: St. Joseph’s Hospital Health Center, Syracuse, $5,000. Margarita Ortiz, Syracuse, Chapter 7, major unsecured creditor: Bank of America Corp., El Paso, Texas, $10,543. JoAnne K. Parkhurst, Syracuse, Chapter 7, major unsecured creditor: HSBC Finance Corp., Elmhurst, Ill., $9,693. Bernard D. Perkins, Brewerton, Chapter 7, major unsecured creditor: Target Corp., Minnepolis, Minn., $6,090. William David Prue, Manlius, Chapter 7, major unsecured creditor: Empower Federal Credit Union, Syracuse, $5,017. Christine Rigle, Syracuse, Chapter 7, major unsecured creditor: Citigroup Inc., Sioux Falls, S.D., $6,300. Sharon S. Boatwright, also known as Sharon S. Salmond, Syracuse, Chapter 7, major unsecured creditor: SLM Corp., Wilkes-Barre, Pa., $28,420. Kevin M. Sass, Liverpool, Chapter 7, major unsecured creditor: Elan Financial Services, St. Louis, Mo., $5,341. Michael S.S. Shenouda, Syracuse, Chapter 7, major unsecured creditor: JPMorgan Chase & Co., Indianapolis, Ind., $18,348. Leslie T. Sparks Jr. and Helen Grace Sparks, Baldwinsville, Chapter 13, major unsecured creditor: Vital Recovery Services, Norcross, Ga, $8,222. Eric D. Williams and Cynthia J. Williams, Liverpool, Chapter 7, major unsecured creditor: RAC Acceptance, Plano, Texas, $6,541.

Regional bankruptcies: March 1

These are commercial and personal bankruptcies of $5,000 or more filed recently in the U.S. Bankruptcy Court for the Northern District of New York in Utica. The list includes major unsecured creditors when available. Bankruptcy definitions: Chapter 7, debtor sells assets in return for discharge of debts; Chapter 11, debtor company reorganizes under court supervision; Chapter 12, family farm repays debt; Chapter 13, debtor arranges plan to repay debt. March 7 Sherry Britton-Susino, Oswego, Chapter 7, major unsecured creditor: Capital One Auto Finance, Plano, TX, $9,212. Jodie M. Hudack, formerly known as Jodie M. Brooks, Jodie M. Gorzynski, Oswego, Chapter 7, major unsecured creditor: First National Bank Credit Card Center, Omaha, NE, $14,619. Robert R. Hatfield and Susanne R. Hatfield, Pulaski, Chapter 13, major unsecured creditor: Galaxy Asset Purchasing LLC, Atlanta, GA, $16,639. Jeffery A. Hoffman, Oswego, Chapter 7, major unsecured creditor: M & T Bank, Buffalo, $13,256. Donald C. Livingston, Jr. and Melodie A. Livingston, Pennellville, Chapter 7, major unsecured creditor: Citibank, Sioux Falls, SD, $20,995. Mark P. Moberg and Patricia L. Moberg, Oswego, Chapter 7, major unsecured creditor: Capital One Auto Finance, Plano, TX, $9,783. Ralph D. Paro and Amy S. Paro, Fulton, Chapter 7, major unsecured creditor: Diamler Chrysler LLC, East Syracuse, $9,086. Melissa A. Pullano, formerly known as Melissa Pullano-Hannel, Fulton, Chapter 7, major unsecured creditor: Community General Hospital, Syracuse, $14,346. Brenda L. Southgate and Edward A. Southgate, Oswego, Chapter 7, major unsecured creditor: Social Security Administration, Jamaica, $12,341. Rodney F. Trumble, Richland, Chapter 7, major unsecured creditor: Onemain, Hanover, MD, $5,497. John W. White, West Monroe, Chapter 7, major unsecured creditor: Discover Card/DB Servicing Corp, Charlotte, NC, $9,450. Charles M. Burns and Lisa M. Burns, Weedsport, Chapter 7, major unsecured creditor: Chase Auto Finance, Tampa, FL, $12,120. Jessica L. Ladd, Hannibal, Chapter 7, major unsecured creditor: Department of Education, Oklahoma City, OK, $28,850.

The best candidate(s) to replace Max Wilson as County Supervisor

There is a list up on AZCentral of the 14 applicants along with their resumes. I see four candidates on there who I like and who would do an excellent job (the others I either don't know or find them to be liberal Republicans). Joe Hobbs, Jack Harper, Jean McGrath and Sandra Dowling are all principled, ethical, trustworthy conservatives who I would like to see in that office. If I had to choose one, I would probably go with Joe Hobbs, just because I've gotten to know him very well having worked with him closely over the last few years. Please contact your County Supervisors about who they should choose; we need ethical, honest folks in that office! I especially recommend contacting Steve Chucri and Denny Barney, who are new to that office and can be trusted not to continue protecting the shenanigans that have gone on there in the past.

Hualapai corporation seeks bankruptcy protection

FLAGSTAFF, Ariz. -- The Hualapai tribal corporation that managed the Grand Canyon Skywalk has filed for Chapter 11 bankruptcy protection after a federal judge upheld a $28 million judgment in favor of the Las Vegas developer who built the glass bridge. Sa' Nyu Wa contracted with David Jin in 2003 to share revenue from the Skywalk that gives visitors a view of the Colorado River from beyond the edge of the canyon on the Hualapai reservation. The corporation has assets of up to $10 million from ticket sales but owes creditors as much as $50 million, court documents filed late Monday show. The corporation is appealing the judgment while Jin's attorneys seek to garnish its bank accounts to help fulfill the award granted in arbitration. SNW chief executive Jennifer Turner said the corporation cannot continue its business operations. The Grand Canyon Resort Corporation- which runs a tribal lodge, rafting trips and other tourism operations- now is running the Skywalk and has hired the employees from SNW, Turner said. SNW has a six-member board of directors. Its only shareholder is the Hualapai Tribe. Jin's attorneys see the bankruptcy filing as another tactic to delay payment to Jin. His company, Grand Canyon Skywalk Development, is by far the largest of the creditors that also include food distributors, photographers, fuel suppliers and a souvenir company. The filing frees Sa' Nyu Wa from any lawsuits by creditors while it reorganizes its finances. ``I'm sure the tribe will seek to pay pennies on the dollar, as they have all along,'' one of Jin's attorneys, Mark Tratos, said Tuesday. ``They're not going to change the strategy to not pay what they owe.'' The tribe and Jin have been wrangling over management fees and an unfinished visitor center at the skywalk for more than two years. The dispute has led the tribe to cut Jin out of the management contract through eminent domain and led Jin to court to try to preserve his contractual rights. At least one tribal council member who has been critical of Jin has been recalled, and two more are targets of a recall election Wednesday in Peach Springs. Turner and Hualapai Chairwoman Sherry Counts sent a letter to tribal members Tuesday morning informing them of the filing. She said Jin will not have access to the tribal budget or any tribal funding, as the bankruptcy proceeding involves only Sa' Nyu Wa. The tribe has said it would pay Jin fair market value for the skywalk, which is worth an estimated $18 million. The tribal court is overseeing the eminent domain case. In a recent opinion piece, Jin said the Tribal Council should not believe that its financial responsibility to him is limited to SNW's liquid assets because it has sought to take over his rights in tribal court. Jin's attorneys have put the value of the contract at $277 million.

House Judiciary leader wants to update Arizona bankruptcy laws

PHOENIX -- The head of the House Judiciary Committee wants to update Arizona's dated and sometimes anachronistic bankruptcy laws. Nothing in the proposal by Rep. Eddie Farnsworth, R-Gilbert, alters the process that allows individuals to seek protection from creditors. Those are set in federal law. But that same federal law allows each state to decide what those declaring bankruptcy can keep. And Farnsworth said that list for Arizona is long overdue for an overhaul. The big problem, he said, is that it is far too specific. Consider: The Arizona law allows debtors to keep one kitchen table and one dining room table with four chairs each. They can keep additional chairs if there are more than four in the house. The list of permissible items also includes three living room lamps, one radio alarm clock, one vacuum cleaner and a choice of one television set, radio or stereo. And the total value of all that cannot exceed $4,000. HB 2325 would keep that $4,000 limit for household items. But it strikes the specifics of what can be included to give those in bankruptcy some individual choices in deciding what's important to them. "One person may have a hutch from their great grandmother that they want,' Farnsworth explained. "Somebody else may have a clock that's important, or two clocks that are family heirlooms,' he continued. "This just gives them flexibility within the already established cap on exempted property.' Another section of existing law gets into other kinds of items that are off-limits to creditors. Individuals can keep all their musical instruments -- but only up to a fair market value of $200. Farnsworth's legislation would double that figure. Ditto for an allowance for all engagement and wedding rings, with the new cap on their total value proposed to go to $2,000. The law even deals with domestic pets, horses, milk cows and poultry. These now can be shielded from bankruptcy if they're worth no more than $500; Farnsworth's legislation moves that figure to $800. And an individual would be able to have up to $6,000 equity in a motor vehicle, up by $1,000, and $300 in a bank account, double the current limit. Finally, Farnsworth wants to bring Arizona's law into the 21st century -- or at least the late 20th century. As the statute now exists, individuals can keep one typewriter, one bicycle, one sewing machine, a family Bible, a lot in any burial ground and one shotgun, rifle or pistol, though there is an aggregate limit on value of $500. HB 2325 would not only update that total figure to $1,000 but add one other thing to that list: a computer. And that may not be the last word. Farnsworth acknowledged that there is another piece of technology which has become indispensible for many -- and is a tool they may need to seek and keep a job: a cell phone. He said the legislation could be altered as it goes through the hearing process. Another update being proposed to the law relates to the idea of being employed. The law already exempts tools, equipment, instruments and books used in a debtor's business, up to a value of $2,500. Farnsworth not only seeks to double that figure, but he wants that exemption to include something else that might have value: telephone numbers or client contact information. Not everything in the list of what debtors can keep has a dollar value attached. Someone seeking protection from creditors also can keep a professionally prescribed artificial limb or a wheelchair.

United States: Lenders: Beware Of The Arizona "Two-Dollar Bankruptcy

Recently, my partner, Matt Kenefick, obtained a large judgment here in California against an Arizona resident. The desert rat refused to pay up voluntarily, hiding behind Arizona's unique and highly protective community property laws. The problem Matt faced was that only one spouse had been involved in the nefarious scheme to separate our client from its money. Matt ultimately collected from the Arizona judgment debtor, but the difficulties he faced are worth highlighting for those of us who normally do business in states other than Arizona. Lenders: Beware of the Arizona "Two-Dollar Bankruptcy" by Matthew Kenefick Lenders commonly rely upon form documentation when making a loan, often assuming that the form complies with the ever-changing law governing the deal. As we all know, a mistake in documentation can result in serious collection issues if the loan goes into default. If the defaulting obligation is secured by a personal guaranty given by an Arizona resident, or if the guaranty has to be enforced in Arizona, there may be enforcement problems. For many years, an Arizona individual debtor could place his or her future wages and commingled community property assets outside of the reach of his or her creditors simply by getting married. Thus, getting married in Arizona has been colloquially referred to as a "two-dollar Bankruptcy." The term-of-art "two-dollar Bankruptcy" refers to initial cost of an Arizona marriage license, which was at one time two dollars. Although the scope of the "two-dollar Bankruptcy" has been significantly narrowed though legislative and case law developments, its protection continues in certain contexts. One of these contexts is personal guaranties. Under Arizona law, both spouses must execute a personal guaranty to bind the marital community. See Ariz. Rev. Stat. § 25-214(c)(2); Rackmaster Systems, Inc. v. Maderia, 193 P.3d 314 (Ariz. App. 2008). This limitation has been extended to non-Arizona resident debtors in the context of Arizona enforcement proceedings (see Phoenix Arbor Plaza Ltd. v. Dauderman, 785 P.2d 1215 (Ariz. App. 1989)) and Arizona debtors in the context of non-Arizona enforcement proceedings (see G.W. Equipment Leasing, Inc. v. Mt. McKinley Fence Co., 982 P.2d 114 (Wash. App.1999)). Thus, under Arizona law, if only one spouse executes a personal guaranty, only that spouse's separate marital property is subject to the claims arising under that guaranty. Since most assets acquired and income earned after the formation of a marriage are deemed community property, under such circumstances there will be a much smaller universe of assets upon which a lender can enforce its guaranty claims. So, what is a lender to do? Stop doing business with Arizona residents? Obviously not. Require both spouses to execute a personal guaranty in all states, even when it is not needed to bind the marital community -- also a bad idea since that may kill certain deals. The practical solution is for lenders to require execution of a personal guaranty by both spouses in an Arizona marital community and to include in that guaranty a choice of non-Arizona law and a waiver (by both spouses) of the protections of Arizona community property law. If the lender cannot get both spouses to execute the personal guaranty, then this should be taken into consideration in the underwriting process. It may be permissible under Reg. B to require both spouses to sign loan documents, including guaranties, in community property states, such as Arizona. It is also worth noting that Arizona is not the only state with protective community property laws. Furthermore, in states such as Arizona, the failure to name both spouses as defendants in certain types of actions can preclude enforcement of any resulting judgment against marital community assets. See, e.g., Ariz. Rev. Stat. § 25-215(D)(10); Spudnuts, Inc. v. Lane, 676 P.2d 669, 670 (Ariz. App. 1984). It is therefore a good idea to become familiar with the community property laws of the state in which your borrower, guarantor, or debtor resides both when entering into a transaction and when commencing legal proceedings to enforce claims. The lesson here is to check for local laws when doing deals outside your home state. We here in California have our share of legal issues that must be addressed, many in the context of making, restructuring and enforcing commercial and real estate loans. JMBM can help you through the patchwork quilt of well-intentioned but often troublesome laws that affect your ability to collect on loans made to Californians or secured by California real property.

Florence Hospital in Arizona Declares Chapter 11 Bankruptcy

Exactly one year after opening, Florence (Ariz.) Hospital at Anthem has filed for Chapter 11 bankruptcy, according to a Casa Grande Dispatch report. Florence Hospital CEO David Wanger told the Casa Grande Dispatch that the 36-bed hospital has performed well in its primary service areas, but volumes have lagged in its secondary service areas and local prison population. Although Florence Hospital has not missed any payments on its debts, it has fallen short of profit margin and cash on hand requirements outlined in its lease with its landlord. Florence Hospital will now look to have a reorganization plan approved by a bankruptcy court.

Dutch bankruptcies hit record in February

AMSTERDAM – More Dutch companies declared bankruptcy in February than at any time since records began in 1981. The country's Central Bureau for Statistics also says Monday that on a three-month average, bankruptcies are at their highest level on record: around 680 per month, not counting one-person businesses. The Dutch economy is struggling as the government cuts spending and increases taxes to meet European budget rules that require countries to get their budget deficits down to 3 percent of their annual gross domestic product. Real estate markets are especially weak, due to a glut in office space and cuts in residential mortgage deductions. The country's economic forecasting office expects the Dutch economy to shrink for the second year running in 2013 before muted growth returns in 2014. Read more: http://www.foxnews.com/world/2013/03/11/dutch-bankruptcies-hit-record-in-february/#ixzz2NLOugMhA

The Daily Docket: Hostess Gets No Rival Cake Bids

Hostess Brands Inc. said it will seek to sell its Twinkies and other cake brands to Apollo Global Management LLC and Metropoulos & Co. after no rival bidders stepped forward to challenge their $410 million offer. Read the Daily Bankruptcy Review article here. The trustee liquidating Howrey LLP on Monday sued former partners and their new law firms to recover partner payments the now-defunct law firm paid out while its finances were shaky and to stake a claim in profits from the ongoing work those partners took to their new firms. Click here for the DBR article. (Daily Bankruptcy Review and DBR Small Cap are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”) A subsidiary of Macquarie Group Ltd. is suing ATP Oil & Gas Corp., saying it owns the rights to royalty payments from three ATP offshore-drilling operations, entitling it to payments and exempting those rights from ATP’s bankruptcy estate, DBR reports via Deal Journal Australia. According to Reuters, China’s solar-panel maker Suntech Power Holdings Co. STP -8.61% is likely to get a bailout. New York’s attorney general is ready to ask a judge to complete a $410 million with J. Ezra Merkin regarding the Bernard Madoff Ponzi scheme, Bloomberg reports. The city of Detroit retained Jones Day as it looks to fight Michigan’s decision to put the city under control of an emergency financial manager, the Am Law Daily reports. The Washington Post has the “history” of Paul Krugman’s phony bankruptcy. Spanish airline Iberia is close to a restructuring deal with its unions, WSJ reports. Former Dewey & LeBoeuf LLP are allowed to sue over the firm’s collapse as a group, Reuters reports. According to the Detroit Free Press, the government sold $489.9 million in General Motors Co. GM -0.04% stock last month. WSJ reports on the death of Jack Byrne, who rescued Geico from the brink of bankruptcy in the 1970s. Write to Melanie Cohen at melanie.cohen@dowjones.com. Follow her on Twitter at @MelanieLisa.

Republicans Clueless About Minorities

If the GOP is trying to attract more white male voters, it is doing a great job.

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Republicans are losing elections in part because they are losing key demographic groups. Some of those groups, like Hispanics, are growing, making them impossible to ignore. 37 percent of the country is nonwhite. Hispanics comprise 16 percent of the population, accounting for half the population growth within the past decade. 51 percent of children born in California are Hispanic, and 46 percent of the population in New Mexico is Hispanic.

Republicans have had difficulty making inroads with Hispanics due to their position on illegal immigration. The left and its other half, the liberal media, have convinced many Hispanics that tough immigration laws are racist. While this is not true, Republicans have had little success convincing Hispanics otherwise. Meanwhile, Republicans continue to make “enforce the border” key parts of their stump speeches.

The problem with this approach is it needlessly reinforces the false stereotype that Republicans are racist. Why repeat something if it's not necessary and costs votes? Many politicians are pro-life, but they don't say “we must stop abortion” in every speech. Illegal immigration is one of those difficult issues that would be better handled gingerly.

On the other hand, Republican politicians like Sen. John McCain (R-Ariz.), who call for a path to citizenship with liberal Democrats, are equally irking voters needlessly. McCain waffles all over the place on illegal immigration; there is no need for him to irritate the GOP base by claiming at times to support a path to citizenship. It didn't work anyways, he received a smaller than usual share of the Hispanic vote as a Republican when he ran for president.

Read the rest of the article at Townhall

I hate it when you're researching a serious story, and this irresistably pops up on the side of an article to distract you

Great article on Matt Salmon in Human Events

Some of the best excerpts - 

Matt Salmon (lifetime American Conservative Union rating: 100 percent) remains unchanged in his swashbuckling conservative philosophy and style.

Salmon has never lost his passion for shutting down the Departments of Education, Energy, Commerce, Labor, and Housing and Urban Development.

 In 2002, he lost the race for governor by about one vote per precinct to Democrat Janet Napolitano, now secretary of Homeland Security. Salmon recalls the state’s campaign finance reform law, the creation of Democratic State Chairman Jim Pederson, “provided state matching funds for a candidate who was facing an opponent who wouldn’t take the state funds, as I wouldn’t. “The law even provided matching funds when an outside group backed the opponent. So that gave her [Napolitano] a big advantage. “I’m glad to say the U.S. Supreme Court finally struck down that insidious law and, had it not been on the books 10 years ago, I would have been governor.”

Sequestration is not the ‘be all, end all’ in the whole fiscal debate. The real fight will be over the continuing resolution down the line and the question of whether we continue to fund the federal government at the same level.

And the question for Republicans in Congress, he said pointedly, “is whether we are willing to partially shut the government down to get to a lower level. We have made $83 billion in cuts this year, but it’s just a start. If we don’t [cut more], we’re going to end up like Greece.”

“We had 72 Republicans come in 1994 and there were only about 11 of us who were willing to go all the way,” he said, “Now, you look at [fellow freshman Reps.] Ron DeSantis [Fla.], Doug Collins [Ga.], Tom Cotton [Ark.], and Steve Stockman, who I think walks on water. We have more patriots this time—at least 20 of us willing to do what has to be done. Things are going to happen this time.”

Read the entire article at Human Events    

I will be on the Austin Hill show Tuesday morning to discuss the left's current efforts at gun control

If you're up early Tuesday morning, and want to hear what community organizers are doing in Idaho and other states to implement gun control, check out my interview as editor of Western Shooting Journal on Austin Hill's Idaho show. 6:35am PST (9:35am EST) ......click here to listen to NewsRadio KINF 99.1 FM live. Click here to check out Western Shooting Journal and subscribe (only $1.89/mth online).

Top Television Shows Today Full of Garbage

If you stopped watching network television awhile ago because it had gotten so bad, you made the correct decision. It has continued to get worse. A few years ago, network television became dominated by cheaply made reality TV shows and talent contests, sitcoms with hyperactive manic characters, and socially liberal themes. Television has always pushed the edge when it comes to socially progressive themes. But at what point does it go too far? Perhaps when there are no other options left during prime time network TV.

The top ten most popular TV shows last fall contained few choices for traditional conservatives, unless they enjoy watching football. The first, fourth and tenth most popular shows were Sunday Night Football, Sunday Night Pre-Kick and The OT (NFL wrap-up) respectively.

The second most popular TV show last fall was Modern Family, which features the lives of three families, including two gay men and their daughter. There is profanity and one episode implied that teenage sex was appropriate. The Big Bang Theory was the third most popular show last fall. The plot is based on the lives of some nerdy guys and a beautiful woman who tries to teach them social skills. It features frequent discussions about sex including masturbation, and is sprinkled with profanity.

Read the rest of the article at Townhall

Cat fishing

The March issue of Western Shooting Journal is out!

You can find it on most newsstands in stores around Arizona. Or sign up for the electronic version for only $1.89/month at WesternShootingJournal.com. This issue features plenty of interest to Arizonans. We've got an interview with Arizona's Gun Guy, Alan Korwin, about gun laws and books he's written about gun. There is a feature article by Phyllis Gross about shooting at outdoor ranges in Arizona. Keith Sipmann of Arizona explains what the scary "black rifles" are that everyone wants to ban. Carrie Lightfoot of The Well-Armed Woman in Northern Arizona explains to curvy women how they can best carry a concealed weapon. I've got an interview with actor Johnny Strong of The Fast and the Furious and Blackhawk Down, asking him about Hollywood's portrayal of guns. He's got some Strong feelings about the subject! There's an interview with Top Shot Dustin Ellerman, who won the History Channel's Top Shot competition. Plus much, much more. You won't want to miss this issue!