Gene stock – Genetic Science Services http://geneticscienceservices.com/ Tue, 17 May 2022 01:12:42 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://geneticscienceservices.com/wp-content/uploads/2021/10/icon-7.png Gene stock – Genetic Science Services http://geneticscienceservices.com/ 32 32 Colorado bankruptcies drop 40% in April – Loveland Reporter-Herald https://geneticscienceservices.com/colorado-bankruptcies-drop-40-in-april-loveland-reporter-herald/ Mon, 16 May 2022 23:25:42 +0000 https://geneticscienceservices.com/colorado-bankruptcies-drop-40-in-april-loveland-reporter-herald/ Colorado bankruptcy filings fell 40% in April from the same period a year ago, continuing a downward trend seen throughout 2021 and so far in 2022. Deposits also fell in Larimer, Weld, Boulder and Broomfield counties from the prior year period. That’s according to a BizWest analysis of US bankruptcy court data. The figures quoted […]]]>

Colorado bankruptcy filings fell 40% in April from the same period a year ago, continuing a downward trend seen throughout 2021 and so far in 2022.

Deposits also fell in Larimer, Weld, Boulder and Broomfield counties from the prior year period.

That’s according to a BizWest analysis of US bankruptcy court data. The figures quoted include all new filings, including cases opened, closed and dismissed. Colorado recorded 415 bankruptcy filings in April, down from 694 in April 2021.

Since the start of the year, the state has recorded 1,514 bankruptcy filings, compared to 2,325 in the first four months of 2021, down 34.8%.

Among northern Colorado and Boulder Valley counties:

  • Larimer County filings totaled 28 in April, down from 33 a year ago, down 15%. Filings in the first four months of the year totaled 91, compared to 106 in the first four months of 2021, a decline of 14.1%. Larimer County recorded 29 bankruptcy filings in March 2022.
  • Weld County bankruptcy filings totaled 27 bankruptcy filings in April, down from 56 filed a year ago, a drop of 51.8%. Year-to-date filings totaled 116, down from 174 a year ago, down 33%. Weld County recorded 42 bankruptcy filings in March 2022.
  • Boulder County had 12 bankruptcy filings in April, down from 31 in April 2021, down 61.3%. The county has seen 55 filings year-to-date, down from 94 in the first four months of 2021, down 41.5%. Boulder County recorded 19 bankruptcy filings in March 2022.
  • Broomfield recorded two bankruptcy filings in April, compared to five in April 2021, a drop of 60%. Year-to-date filings totaled 17, down from 23 a year ago, down 26%. Broomfield recorded six bankruptcy filings in March 2022.

This article was first published by BizWest, an independent news agency, and is published under a license agreement. © 2022 BizWestMedia LLC.

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A metals company has handed over a £586million support package to the Scottish government in the face of court bankruptcy battle https://geneticscienceservices.com/a-metals-company-has-handed-over-a-586million-support-package-to-the-scottish-government-in-the-face-of-court-bankruptcy-battle/ Sun, 15 May 2022 03:30:00 +0000 https://geneticscienceservices.com/a-metals-company-has-handed-over-a-586million-support-package-to-the-scottish-government-in-the-face-of-court-bankruptcy-battle/ A metals company that received a £586million Scottish government support package to buy a Highland smelter is facing a legal battle against bankruptcy. Taxpayers could suffer crippling losses if businessman Sanjeev Gupta’s GFG alliance goes bankrupt following the controversial deal signed by SNP ministers. The company, which received massive state backing to buy metal and […]]]>

A metals company that received a £586million Scottish government support package to buy a Highland smelter is facing a legal battle against bankruptcy.

Taxpayers could suffer crippling losses if businessman Sanjeev Gupta’s GFG alliance goes bankrupt following the controversial deal signed by SNP ministers.

The company, which received massive state backing to buy metal and power stations in Lanarkshire and Fort William, is now at the center of a fraud investigation and could be liquidated if it loses a court battle with its creditors.

The Sunday Mail revealed last year that then rural economy secretary Fergus Ewing may have breached rules of conduct by attending a dinner with Gupta at a top restaurant in Glasgow.

He dined with no officials present and took no notes – a strict rule included in the ministerial code when he was in government business.

It came after Ewing struck a complex financial deal to allow GFG to buy a smelter in Lochaber, near Fort William, and a Highlands hydroelectric power station from Rio Tinto in 2016.



Prime Minister Nicola Sturgeon visits the UK’s last remaining aluminum smelter in Fort William, marking the start of a multi-million pound investment by companies GFG Alliance, Simec and Liberty House

The amount of financial guarantee given by the Scottish Government to facilitate the purchase was originally around £360million in public money, but later rose to £586million.

Opposition politicians reacted with fury to the announcement of bankruptcy proceedings and demanded that Prime Minister Nicola Sturgeon “come clear” on the decision to risk taxpayers’ money on GFG.

Labor Funding spokesman Daniel Johnson MSP said: ‘It is the incomes of hard-working taxpayers that are at risk because of the SNP’s deal with GFG.

“We have seen Fraud Office raids, investigations and now liquidation proceedings, but we still do not know what assessment the SNP Government made before pumping billions of Scottish cash into the business. The SNP must be clear.

Conservative finance spokesman Jamie Halcro Johnston, MSP, said: ‘The SNP’s Lochaber smelter dealings have been murky from the start.



Jamie Halcro Johnston MSP

“The SNP have done all they can to hide the extent of the safeguards they have put in place against the smelter and, although this has now been revealed to be a colossal £586million, there is still huge questions to be answered about the government’s financial involvement with the GGF Alliance.

“With GFG facing liquidation proceedings, it’s time for the SNP to come clean about these deals, which have seen over half a billion pounds of taxpayers’ money used for collateral.

“The Scottish Government must urgently set out in full the concerns raised with Scottish Ministers about the deal and the safeguards put in place by Ministers to ensure that public money is protected.”

GFG was plunged into crisis last year due to the collapse of Greensill Capital, a financial firm for which former Prime Minister David Cameron acted as a lobbyist in a bid to gain access to a bailout of the British government Covid. Greensill’s owner, Lex Greensill, was also at the Glasgow dinner Ewing was attending.



The Dalzell works at Motherwell.

The company is now battling the insolvency of some of its major companies after Credit Suisse pulled out of debt talks.

Under UK law, creditors can ask the courts to shut down businesses that owe them money if they can prove those businesses cannot pay.

Credit Suisse has pulled out of negotiations with GFG over nearly £1bn of debt after the UK’s Serious Fraud Office (SFO) served a Section 2 notice to produce documents. The offices were also raided by the French police.

GFG has repeatedly stated that it is close to securing new funding, but its prospects have been affected by several criminal investigations.

A spokesperson said: “Since 2016, GFG has invested £275 million in Scotland and remains fully committed to operating and developing its Scottish aluminium, steel and hydropower assets in a way that will ensure sustainable industrial growth and will generate long-term employment.

“Following the collapse of our lender Greensill Capital, GFG continues to work constructively with creditors and stakeholders on the refinancing, which will allow us to meet our obligations.

“The Lochaber smelter is profitable despite the impact of high energy prices. Plans to nearly double capacity at the site with a new billet casting and recycling plant remain on track.

“As expansion plans progress…this will drive additional spending into the local and national economy and allow us to target growing demand for Lochaber’s low-carbon aluminium.

“We will continue to invest to improve productivity, modernize existing facilities and preserve long-term jobs. Our core international businesses continue to generate strong returns and reach record production levels.

“We remain committed to repaying all creditors and continue to make…progress towards…debt restructuring.”

After initially promising to create 2,000 new jobs, it emerged last year that only 50 positions had been created by GFG in Scotland.



Lex Greensill, CEO of Greensill Capital

The criticism of Lochaber’s guarantee follows fresh attacks on Sturgeon following the Ferguson Marine fiasco.

Over £200million has been invested in the business, but two CalMac ferries are unfinished five years after entering service.

The contract was approved by ministers without normal financial guarantees and Audit Scotland was unable to establish why the original £97million order was given to Ferguson shipyard without such guarantees.

At the time, the yard was owned by billionaire businessman Jim McColl.

A Scottish Government spokesperson said: ‘There has been no call on the Scottish Government Guarantee, no debt is owed to the Scottish Government under the Lochaber Guarantee, all guarantee charges are up to date and we hold a full suite of titles when it comes to the Lochaber Guarantee.

“If the guarantee were to be called, the assets guaranteed to the Scottish Government would cover more than the cost of the guarantee.

“The net present value of the remaining revenue stream from the power purchase agreement over the remaining 20 years is £284m, while company accounts valued Fort William assets at £438m. pound sterling.”

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Bankruptcy Court Rules Title Holder’s Consent Sufficient to Give Debtor Collateral Rights to Grant Liens | Troutman pepper https://geneticscienceservices.com/bankruptcy-court-rules-title-holders-consent-sufficient-to-give-debtor-collateral-rights-to-grant-liens-troutman-pepper/ Fri, 13 May 2022 16:26:34 +0000 https://geneticscienceservices.com/bankruptcy-court-rules-title-holders-consent-sufficient-to-give-debtor-collateral-rights-to-grant-liens-troutman-pepper/ On April 28, the US Bankruptcy Court for ND Oklahoma in Kirtley v. Mabrey Bank (In re Rudick)[1] ruled that an entity other than the debtor may grant a lien on the debtor’s property, affirming the legal standard that the consent of the true owner is sufficient to give a debtor rights in the collateral […]]]>

On April 28, the US Bankruptcy Court for ND Oklahoma in Kirtley v. Mabrey Bank (In re Rudick)[1] ruled that an entity other than the debtor may grant a lien on the debtor’s property, affirming the legal standard that the consent of the true owner is sufficient to give a debtor rights in the collateral to grant a security interest in that property . As a result, the bankruptcy court also held that the bank’s security, perfected prior to the debtor’s bankruptcy, was enforceable and took priority over the trustee’s rights to the property.

One of the three key elements of Article 9 of the Uniform Commercial Code (UCC) for seizure of a lien on personal property is that the debtor granting the lien has “rights in the security”.[2] The concept of “rights in the collateral” is distinct from that of “title” to the assets; a debtor can grant a lien under less than the entire bundle of rights that includes title. Under the UCC, a debtor’s “limited rights in collateral, other than full title, are sufficient for a security interest to be seized”. The bankruptcy court of In re Rudick tackled this problem.

Background

In In re Rudick, individual Michael Rudick has filed a voluntary petition for relief under Chapter 7 of the US Bankruptcy Code. Rudick’s petition included, among other things, certain personal property consisting of vehicles, tractors, boats and trailers (collectively, the Property). Prior to the date of the Petition, Rudick had a banking relationship with Mabrey Bank (Bank) and had entered into several personal loans with the Bank. Rudick also owned an Oklahoma limited liability company known as Cornerstone Concrete and Excavation LLC (Cornerstone). Cornerstone was a separate legal entity from Rudick. Prior to the date of the petition, Cornerstone had entered into a commercial loan transaction with the Bank, whereby it purported to grant a security interest in the property to the Bank to secure Cornerstone’s loan from the Bank. The Bank has filed liens on the property. Rudick executed the relevant bank loan documents on behalf of Cornerstone in his capacity as President of Cornerstone.

Analysis

The issue is whether Cornerstone’s grant of a security interest in the property was attached to the date of the petition and was enforceable, which would violate the trustee in bankruptcy’s rights to the property following the Chapter 7 filing. The trustee in bankruptcy claimed that Cornerstone could not grant a security interest in the property because it did not own the property. The Bank did not dispute that Cornerstone did not own the property, but argued that ownership did not affect Cornerstone’s ability to grant enforceable security.

Bankruptcy court noted seizure of security is governed by Oklahoma Commercial Code Section 1-9-203[3], which adopts UCC Rule 9-203. Under Oklahoma UCC Rule 9-203, a security interest attaches to the warranty when:

  • The debtor has signed a guarantee contract describing the guarantee.

  • The value has been given.

  • The debtor has rights in the collateral or the power to transfer rights in the collateral to a secured creditor.

Only the third point was in issue — whether Cornerstone had rights in the Property or the power to transfer rights in the Property to the Bank. The bankruptcy court determined that Cornerstone had rights to the property based on Rudick’s consent to grant those rights to Cornerstone. The bankruptcy court upheld a previous decision that “an owner’s permission to use collateral creates rights in the debtor sufficient to give rise to enforceable security”, and that consent may be implied depending on facts and circumstances.

Result

The bankruptcy court found that Rudick’s signature on behalf of Cornerstone was evidence that Rudick had been informed and knew of Cornerstone’s grant to the Bank and that Rudick had consented to the grant. Further, the Bank could rely on Rudick’s statement that Cornerstone had the authority to pledge the property as security for the loan. As such, Cornerstone had rights in the property, and the property was subject to a valid security interest in favor of the bank at the time Rudick filed for bankruptcy.

The bankruptcy court found an opposite circumstance with a contrary decision. In this case, a person taking out a personal loan and signing the corresponding loan documents in his own name could not pledge rights to property belonging to a company that the same person owned. The individual’s signature alone does not prove any consent of the company to pledge company property or that the individual otherwise has any rights to company property. Lenders should take note of the divergent results.

Importance

It is essential that a lender understands who owns the collateral, especially if it is important to the underwriting and credit profile of a loan. In In re Rudick, the Bank had the advantage of the law favoring its position, but the prudent approach would have been to have Rudick directly engage the rights in the Property in a personal and non-representative capacity. Notwithstanding the ultimately favorable outcome, properly documenting this transaction would have saved the Bank the time and cost of litigation with the trustee in bankruptcy.

Lenders are advised to consult their legal advisor whenever issues relating to seizure or perfection of liens are involved. This may be “other property”, but legal counsel can help a lender determine the suitability of such property as collateral.


[1] Kirtley v. Mabrey Bank (In re Rudick), No. 20-11918-M (Bankr. ND Okla. April 28, 2022).

[2] § 9-203. Seizure and enforceability of security; Product ; support bonds; Formal Requirements., UCC Text § 9-203.

[3] Ok so. Stat. tit. 12A, § 1-9-203.

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Coinbase CEO Blames SEC Memo for Bankruptcy Risk Alarm https://geneticscienceservices.com/coinbase-ceo-blames-sec-memo-for-bankruptcy-risk-alarm/ Thu, 12 May 2022 01:07:00 +0000 https://geneticscienceservices.com/coinbase-ceo-blames-sec-memo-for-bankruptcy-risk-alarm/ By Elise Hansen (May 11, 2022, 9:07 p.m. EDT) — Coinbase has updated its risk disclosures to reflect new guidance from the US Securities and Exchange Commission on holding cryptocurrencies, CEO Brian Armstrong said at the time. that he was trying to calm clients’ nerves about what would happen to their assets in the event […]]]>
By Elise Hansen (May 11, 2022, 9:07 p.m. EDT) — Coinbase has updated its risk disclosures to reflect new guidance from the US Securities and Exchange Commission on holding cryptocurrencies, CEO Brian Armstrong said at the time. that he was trying to calm clients’ nerves about what would happen to their assets in the event of bankruptcy.

Coinbase Global Inc.’s quarterly report released on Tuesday included new risk factors explaining what could happen to some users’ holdings if the company goes bankrupt. According to the filing, digital assets “held in custody” could be considered bankruptcy property and Coinbase customers who use the service could find themselves treated as general unsecured creditors, putting them…

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The former owner of the Beverly factory files for bankruptcy | News, Sports, Jobs https://geneticscienceservices.com/the-former-owner-of-the-beverly-factory-files-for-bankruptcy-news-sports-jobs/ Tue, 10 May 2022 08:03:19 +0000 https://geneticscienceservices.com/the-former-owner-of-the-beverly-factory-files-for-bankruptcy-news-sports-jobs/ LANCASTER, Pa. — Armstrong Flooring — which previously operated a hardwood flooring factory in Beverly before selling the operation in 2018 — announced Monday that the company has filed for bankruptcy. Armstrong Flooring sold its wood flooring division to American Industrial Partners for $100 million in November 2018. The transaction included Armstrong’s six […]]]>

LANCASTER, Pa. — Armstrong Flooring — which previously operated a hardwood flooring factory in Beverly before selling the operation in 2018 — announced Monday that the company has filed for bankruptcy.

Armstrong Flooring sold its wood flooring division to American Industrial Partners for $100 million in November 2018. The transaction included Armstrong’s six wood flooring manufacturing plants, including the Beverly plant. , which is now operated by AHF Products.

Randolph County Development Authority Director Robbie Morris said Monday’s news caused heartbeats locally until area residents realized that “Armstrong and the Beverly factory are no longer connected.”

“Armstrong Flooring, that company, sold its wood flooring division in 2018, creating AHF in Beverly,” Morris told The Inter-Mountain on Monday. “When this news of the bankruptcy first broke I received frantic calls and texts until everyone could figure out that Armstrong Flooring and the Beverly factory are no longer connected. It will have no impact on the Beverly plant.

“My understanding is that the wood flooring division was thought to be part of the financial drag on the business (for Armstrong) when they sold it,” said Morris. “Obviously that was not the case, as AHF Products is doing extremely well. Sales are extremely strong. They are hiring and continuing to hire and things are going well there.

Beginning in 2019, AHF Products oversaw an 85,000 square foot expansion of the Beverly plant, which is the nation’s largest prefinished solid hardwood flooring plant.

Armstrong Flooring announced on Monday that the company and some of its subsidiaries have filed for voluntary protection under Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court for the District of Delaware.

Following an ongoing sale process, the Company intends to pursue the sale of its business through a competitive Chapter 11 sale process. The Company’s operations in China and Australia will not be included in the Chapter 11 filing, but they are part of the sales process.

“Our company and our team members have worked diligently to strengthen our financial footing in the face of several macroeconomic trends, including supply chain challenges, the current inflationary environment and the continued headwinds of the COVID-19 pandemic. 19”, declared Michel Vermette, President and Chief Executive Officer.

“With the support of our Board of Directors, we have determined that using the Chapter 11 process to effect a potential sale is the right next step for our company. As we have said previously, we strongly believe in the value and potential of Armstrong Flooring and are confident that this final action places us in the best possible position to preserve and maximize value for our stakeholders. In the meantime, we are open for business and remain firmly committed to our customers, suppliers and employees as we navigate the path forward. »

Armstrong Flooring, Inc., headquartered in Lancaster, Pennsylvania, operates seven manufacturing facilities worldwide. The company has been around for 150 years.



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india sri lanka news: India to step up aid as Sri Lanka nears bankruptcy https://geneticscienceservices.com/india-sri-lanka-news-india-to-step-up-aid-as-sri-lanka-nears-bankruptcy/ Sat, 07 May 2022 02:02:00 +0000 https://geneticscienceservices.com/india-sri-lanka-news-india-to-step-up-aid-as-sri-lanka-nears-bankruptcy/ India is expected to step up its economic aid to Sri Lanka as the country is on the verge of bankruptcy and its usable foreign exchange reserves have fallen below $50 million. The new aid could focus on humanitarian needs and the two governments are in close contact, ET has learned. The Lankan government has […]]]>
India is expected to step up its economic aid to Sri Lanka as the country is on the verge of bankruptcy and its usable foreign exchange reserves have fallen below $50 million.

The new aid could focus on humanitarian needs and the two governments are in close contact, ET has learned. The Lankan government has sought to source urea from India. Previously, India provided fuel, medicine and rice.

Sri Lanka’s Cabinet recently approved a proposal to source more fuel from India, through a $200 million short-term loan facility from the Exim Bank of India. India has provided nearly $3 billion to cash-strapped Sri Lanka since January 2022, through currency swaps, lines of credit for essential commodities and loan deferrals

On Friday, Lanka’s bus and train networks came to a standstill as offices and factories stood empty in a nationwide strike demanding the resignation of the government.

Sri Lanka’s economy is in dire straits, with its usable foreign exchange reserves falling to less than $50 million, the country’s finance minister said on Wednesday.

Finance Minister Ali Sabry was addressing parliament after returning to Sri Lanka after talks with the International Monetary Fund.

He said any IMF rescue package, including a rapid financing instrument needed to urgently address shortages of essential goods, would depend on debt restructuring negotiations with creditors and would take six months to implement. . The country must repay $7 billion this year of the $25 billion in foreign loans it must repay by 2026.

Sabry – who resigned on April 4, a day after being appointed, to return – warned “we have spent two and a half times too much”. “In 2021, total income was 1.5 trillion (Sri Lankan) rupees…expenditure was 3.522 billion rupees…we were living (above) our means…” he said, warning Members that help from the World Bank or the IMF would not solve deep-rooted problems. problems.

“The IMF is not Aladdin’s magic lamp,” he said. Last week, the World Bank announced it would provide $600 million in aid to help Sri Lanka meet payment requirements for essential imports.

On Thursday, Sabry told parliament that Sri Lanka had lost around 500,000 taxpayers each in 2020 and 2021 after the ill-timed tax cuts were put in place. Prolonged and intermittent shutdowns caused by the pandemic have prevented the economy from achieving what was initially expected from tax cuts, Sabry said.

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Missouri trucking company files for bankruptcy after USPS cuts contracts https://geneticscienceservices.com/missouri-trucking-company-files-for-bankruptcy-after-usps-cuts-contracts/ Fri, 06 May 2022 16:27:54 +0000 https://geneticscienceservices.com/missouri-trucking-company-files-for-bankruptcy-after-usps-cuts-contracts/ A Missouri-based trucking company, which contracted with the U.S. Postal Service to haul mail, recently ceased operations and filed for Chapter 7 bankruptcy. Family-owned Polo-headquartered Rooney Trucking Inc. filed its petition in U.S. Bankruptcy Court for the Western District of Missouri on Monday. Attorney Ryan Blay told FreightWaves that “fuel and labor expenses were certainly […]]]>

A Missouri-based trucking company, which contracted with the U.S. Postal Service to haul mail, recently ceased operations and filed for Chapter 7 bankruptcy.

Family-owned Polo-headquartered Rooney Trucking Inc. filed its petition in U.S. Bankruptcy Court for the Western District of Missouri on Monday.

Attorney Ryan Blay told FreightWaves that “fuel and labor expenses were certainly issues that plagued Rooney Trucking Inc.”

“The biggest issue, however, was the US Postal Service’s decision to cut some routes and cancel some contracts,” Blay said. “The business could not operate profitably with a restricted revenue stream. It was the most important factor in the decision to declare bankruptcy for the company.

In his file, the road transport company states that it will not be able to fulfill its 14-month contract to carry U.S. mail within a 150-mile radius of Kansas City, Missouri, “due to the anticipated loss of personnel following the bankruptcy filing and past reductions in USPS service.”

Per the Chapter 7 petition, Rooney Trucking appealed to the Postal Service Contracts Appeal Board March 22.

In the filing, Rooney Trucking lists its assets up to $10 million and its liabilities from $500,000 to $1 million. The company, which has up to 49 creditors, argues that no funds will be available for distribution to unsecured creditors after administrative fees are paid.

The IRS is listed as the company’s largest unsecured creditor, owing nearly $200,000. The filing also lists the names of the truckers, but does not include any wage amounts owed to them.

The company, owned by Patrick and Dixie Rooney of Polo, was founded in 1955.

According to Rooney Trucking’s financial statements, its gross revenue from Jan. 1 through its date of filing for bankruptcy is $1 million. His petition says the company earned nearly $5.2 million in 2021 and about $5.7 million in 2020.

The 67-year-old trucking company had 37 drivers and 66 power units, according to the Federal Motor Carrier Safety Administration’s SAFER website.

Its trucks were inspected 26 times and four were retired over a 24-month period, resulting in a 15.4% retirement rate, which is lower than the national industry average. about 21%, according to FMCSA data. .

Rooney’s drivers have been inspected 26 times and none have been taken out of service. The national average for drivers is around 5.9%. Rooney’s trucks were involved in three injury crashes and five tows during the same 24-month period.

A meeting of creditors is scheduled for June 10.

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U.S. Supreme Court to assess whether wife liable in bankruptcy for husband’s fraud https://geneticscienceservices.com/u-s-supreme-court-to-assess-whether-wife-liable-in-bankruptcy-for-husbands-fraud/ Mon, 02 May 2022 23:09:00 +0000 https://geneticscienceservices.com/u-s-supreme-court-to-assess-whether-wife-liable-in-bankruptcy-for-husbands-fraud/ A arrives at the U.S. Bankruptcy Court for the Southern District of New York in Manhattan, New York, U.S., January 9, 2020. REUTERS/Brendan McDermid Join now for FREE unlimited access to Reuters.com Register Husband’s cheating on house sale could impact his bankrupt wife Buyer says wife can’t avoid damage even though she didn’t know about […]]]>

A arrives at the U.S. Bankruptcy Court for the Southern District of New York in Manhattan, New York, U.S., January 9, 2020. REUTERS/Brendan McDermid

Join now for FREE unlimited access to Reuters.com

  • Husband’s cheating on house sale could impact his bankrupt wife
  • Buyer says wife can’t avoid damage even though she didn’t know about fraud

(Reuters) – The U.S. Supreme Court on Monday agreed to hear a case to determine whether a bankrupt person is responsible for the fraud of her business partner – and husband – even though she was unaware actions of his partner.

California resident Kate Bartenwerfer has asked the High Court to overturn an August 9th ruling by the United States Circuit Court of Appeals that she cannot use bankruptcy to escape a judgment resulting from fraudulent omissions that her husband made when selling their house. The pair were business partners in addition to being married, having originally purchased the home with the intention of flipping it, according to court documents.

Bartenwerfer’s lawyers argued in his December speech petition for certiorari that the issue “potentially affects any joint transaction or venture that could be construed as a partnership, including transactions involving married people and couples, even the sale of a family home.”

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The dispute arose after a San Francisco homebuyer, Kieran Buckley, sued the Bartenwerfers, alleging they hid information about major defects and led him to believe the home was in “good condition. health,” Buckley’s attorneys said in court documents.

A lawyer for Buckley declined to comment.

The couple said Bartenwerfer had no way of knowing the house’s structural flaws, in part because the couple had not lived in the house in the months leading up to the sale.

After a California jury returned a verdict in Buckley’s favor in 2012, awarding him more than $600,000 in damages and attorneys’ fees, the couple jointly filed for bankruptcy.

While bankruptcy is generally used to clear debts, those resulting from fraudulent activity cannot be discharged through bankruptcy proceedings.

The 9th Circuit ruled in August that Bartenwerfer could not discharge damages “regardless of his knowledge of the fraud.” The court relied on the 1885 Supreme Court decision in Strang v. Bradner, that a person cannot escape a monetary judgment based on the fact that it was incurred by the actions of his business partner without his knowledge.

Bartenwerfer appealed to the Supreme Court, arguing that the court should take the case to resolve a circuit split. While the 9th Circuit’s decision was consistent with the 5th and 11th Circuits’ decisions, the 7th and 8th Circuits concluded that a debtor must have some knowledge of his partner’s fraudulent activity to be held liable.

The case is Bartenwerfer v. Buckley, United States Supreme Court, No. 21-908.

For Bartenwerfer: Iain Macdonald and Reno Fernandez of Macdonald Fernandez

For Buckley: Zachary Tripp of Weil Gotshal & Manges; and Janet Marie Brayer of the Law Offices of Janet Brayer

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According to Hertz, law enforcement is notified each time a reported stolen vehicle is recovered to remove it from the National Crime Information Center database. However, the Philadelphia Inquirer previously reported that Hertz “has no mechanism to withdraw a criminal reference because … it must maintain a relationship of ‘integrity and accountability’ with law enforcement.”

Malofiy says a starting point for Hertz to do right with customers is to quash incorrect police reports and hire more local business officials to conduct preliminary investigations to prevent future incidents of misuse. fraudulent arrests.

“I appreciate the CEO’s statements that they’re going to settle these claims, that they’re going to put this behind them, but the sincerity of the statement is measured by how he assesses the damages,” Malofiy adds. “Companies don’t learn from their mistakes unless they pay for them and Hertz has to pay for their mistakes.”

]]> Detroit must act now to support recovery from bankruptcy | Opinion https://geneticscienceservices.com/detroit-must-act-now-to-support-recovery-from-bankruptcy-opinion/ Fri, 29 Apr 2022 12:01:57 +0000 https://geneticscienceservices.com/detroit-must-act-now-to-support-recovery-from-bankruptcy-opinion/ Since last night’s sold-out in-person and virtual premieres, some 2,000 people in southeast Michigan have seen “Gradually, then suddenly,” the seizure and – I emphasize – timely documentary that traces the 16 months of 2013-14 in which we nearly lost our city to the largest municipal bankruptcy in American history. More Detroiters will be able […]]]>

Since last night’s sold-out in-person and virtual premieres, some 2,000 people in southeast Michigan have seen “Gradually, then suddenly,” the seizure and – I emphasize – timely documentary that traces the 16 months of 2013-14 in which we nearly lost our city to the largest municipal bankruptcy in American history. More Detroiters will be able to see the film for free next week, ahead of a potential national release.

The film tells the near-miraculous story of creativity, resilience and courage that saved Detroit from the black hole of creditor claims against city pensions, artwork and municipal assets. As producer Sam Katz promised when he approached us for help with financing, this film makes the complexity of bankruptcy understandable without losing sight of the historical context of the city’s fall into insolvency and its costly impact. on residents. It captures the high-stakes clashes in courtrooms up to the $800 million Grand Bargain — to which the Kresge Foundation contributed $100 million — that became the linchpin of a consensus resolution, sparing the city ​​a decade of crippling litigation.

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