Category Archives: Bankruptcy

Soaring natural gas prices have contributed to the closure of 20 egg farms and 10 broiler farms in Ukraine, Sergey Karpenko, general director of the Ukraine poultry union, said during a press conference in Kyiv.

Photo: Tetiana Shevereva

In early 2020, Ukrainian poultry producers had to spend on average 1.6 hryvnias (US$0.059) to produce 1 kg of broiler meat. In early 2021, this figure increased to 2.11 hryvnias (US$0.075), jumping to 6.4 hryvnias (US$0.23) in December, Karpenko said, adding that this increase is coupled with a sharp rise in the price of feed.

He added that small and medium-sized poultry producers are at risk of closure due to the price hike. Currently, Ukraine exports 30-40% of the produced broiler meat and eggs. However, the further rise in production costs is likely to make Ukraine exports uncompetitive on the global market, which would hit the entire poultry industry, he added.

It is believed that small and medium-sized poultry farms account for 25-30% of Ukraines poultry production.

Over the course of 2021, European wholesale gas prices rose by more than 400%, setting new records. In early January, European gas prices jumped after the breakdown in security talks between Russia and the US deepened concerns about supplies. The picture is believed to be similar across Eastern and Central Europe, where harsh winter conditions prompt poultry farmers to spend more money on heating.

Dark clouds hang over Ukrainian egg industry The Ukrainian egg industry has been on a dream run but there are major problems looming on the horizon. Since the outbreak of the economic crisis in 2014 many companies have been under pressure with the large Avangard agricultural holding now hitting stormy weather. Read more...

"Poultry companies use gas at fattening complexes. The process [of growing poultry] takes 1.5-2 months, during which it is necessary to maintain a certain temperature at the poultry houses," said Alexander Bakumenko, chairman of Ukraines poultry union, adding that previously, natural gas accounted for 5% of production costs, but now this share stands at 30%.

As estimated by Bakumenko, this situation could push poultry farmers to raise prices by 15-20 hryvnias (US$0.53-US$0.71) to offset losses. However, he warned, this would be bad for both domestic consumption and export supplies.

Not only did poultry producers raise concerns over the rising price of natural gas. Ukraine dairy processing plants may have to stop operations in case of a further rise in prices, the Ukraine Union of Dairy Companies said, estimating that natural gas accounts for roughly 25% of production costs.

In this background, the Ukraine government has rolled out plans to limit the price of natural gas on the market, but so far, this proposal covers only bread producers.

Read more:

Costly gas drives Ukraine poultry production to bankruptcy - Poultry World

The Montana Department of Revenue says it's immune from claims that it waged a bankruptcy battle that caused former billionaire Timothy Blixseth hundreds of millions in losses.

Photo by Mario Tama/Getty Images

Jan. 26, 2022, 8:45 PM;Updated: Jan. 26, 2022, 10:11 PM

The Montana Department of Revenue says its immune from claims that it waged a bankruptcy battle that caused former billionaire Timothy Blixseth hundreds of millions in losses.

Although the state partially waived its sovereign immunity to participate as a creditor in Blixseths involuntary Chapter 7 bankruptcy proceedings, it hasnt consented to be a defendant under the jurisdiction of the U.S. Bankruptcy Court for the District of Nevada, it said in a filing Tuesday.

That immunity should protect Montana from facing Blixseths Dec. 23 lawsuit, which accuses the Department of Revenue of bad faith by continuing to pursue the bankruptcy ...

2022 The Bureau of National Affairs, Inc.

All Rights Reserved

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Montana Vies to Ax Suit Over Businessman's Involuntary Bankruptcy (1) - Bloomberg Law

Actor Amitabh Bachchan showed his pride in son Abhishek Bachchan after politician Milind Deora praised him in a tweet. Deora had taken to Twitter and shared an interview of Abhishek, where he had talked about the difficult time in his life when their family was bankrupt, and how he had left his education to help his father.

Deora shared the interview and captioned it, In case you missed it, sharing these words of wisdom from my friend @juniorbachchan Bollywoods most underrated actor whose best is yet to come. The actor was facing bankruptcy in 1999 when his venture, Amitabh Bachchan Corporation Ltd (ABCL), faced major losses.

Amitabh Bachchan quote-tweeted the post and wrote, Yo baby, thats the way we do it!

In the Brut interview, Abhishek had opened up about how he left his education in Boston university to help his father out. My father was going through this really rough time, he said, explaining that their business had not taken off. He also revealed that he didnt feel that he was qualified to help in any way, but he felt that he needed to be there for his father. He recalled on how they decided to make it work, that they would fight through this painful situation.

Abhishek also mentioned that Big B went over to Yash Chopras house, explaining the dire situation, and that evening, he was offered Mohabbatein. Abhishek said that his parents had always brought him up to not have a backup and not be a quitter. He explained that if a person knows they dont have a safety net, theyll just work hard and not give up.

When he was on Ranveer Singhs show The Big Picture, Abhishek elaborated further and said, I cant be sitting in Boston and my father doesnt know how hes going to get dinner. Thats how bad it was, and he said it publicly. He had to borrow money from his staff to put food on the table. I just felt morally obliged to be with him.

Abhishek Bachchan was last seen in the film Bob Biswas, while Amitabh Bachchan has several films including Brahmastra in the pipeline.

Read more:

Amitabh Bachchan shares Abhisheks video talking about their bankruptcy, how they bounced back: Thats the way we do it - The Indian Express

We are continuing to see fallout from the COVID-19 pandemic and its impact on the tech industry, with one of the latest developments coming out from France. Sigfox a high-profile IoT startup that had raised over $300 million in venture funding and had ambitions to build a global communications network using a new approach to wireless networking has filed for bankruptcy protection in France, citing slow sales of its products and challenging conditions in the IoT industry due to COVID-19.

It said it would be using the process, which will initially last six months, to seek a buyer to support Sigfoxs long-term development and propose to maintain jobs. It will continue operations in the meantime: Sixfox says says its network spans 75 countries, stitching together capacity from 75 carriers, and that it connects 20 million objects and sends 80 million messages per day.

The details for the bankruptcy were outlined in a statement provided to TechCrunch by the company. The statement also noted that business was being impacted by a shortage in electronic components.

The decision to place Sigfox under the protection of the Justice through this proceeding was made because of a slower-than-expected adoption cycle for its technology, despite effective shareholder support, it reads. In addition, the IoT sector has suffered from the Covid-19 pandemic crisis, slowing down activity over the past two years and putting the pressure on the electronic components market, now in shortage. These factors combined have strongly impacted the companys financial situation, in particular its debt level, which now makes it difficult to speed up the development of Sigfox and its worldwide recognized technology in an increasingly competitive market.

Sigfox had raised more than $300 million from a group of high-profile investors that included Salesforce, Intel, Samsung, NTT, SK Telecom, energy groups Total and Air Liquide, and many others. When we last covered the companys financing, a 150 million round in November 2016, it was valued at around 600 million ($670 million at todays rates). A profile of the company a year later described it as a unicorn that is, valued at over $1 billion.

According to Sigfoxs statement, the receivership/rehabilitation proceeding was opened in the Commercial Court of Toulouse at the request of the CEO, and it pertains both to Sigfox and its French subsidiary Sigfox France. It will last for an initial observation period of six months, the notice said. (That notice does not appear to be on the companys own news pages, where the most recent update is from earlier this month and seemed to imply business as usual, announcing a partnership with two semiconductor companies to advance its networking solutions.)

This procedure will allow the Sigfox group to continue all its commercial activities to deliver its clients and meet their needs, under the authority of mandators designated by the Court, the notice reads.

For those who had been keeping tabs on the IoT market out of Europe, and Sigfox in particular, this development should not come as too much of a surprise. As Chris points out in the French Tech Journal, auditors for the company had issued a stark warning in September that year that the company had to raise funding by the end of the year or risk insolvency.

That funding has yet to materialize.

Meanwhile, the companys finances speak for themselves. Public account filings for the company note that in the last financial year, the company posted a net loss of nearly 91 million on revenues of just over 24 million, and financial debts of 118 million.

Sigfox had been one of the bigger names in IoT to come out of Europe and its early and robust fundraising put it on the map among French startups attempting to deliver groundbreaking technology.

Sigfox emerged at a time when IoT was still very much a nascent concept, with little in the way of lucrative business models behind it, and much of IoT activity being pushed by carriers who looked at IoT as an enterprise play and way to sell capacity on their established mobile networks.

Sigfoxs unique claim was not just that it was building an IoT network, but that it was going to do so on a new kind of concept for harnessing power, making its networks, and the devices connected to it, considerably more sustainable and efficient. As we noted at the time, it was part of a bigger picture put forward by the companys then-head and founder, Ludovic Le Moan, about how Sigfoxs understanding of how power and communication worked related to Simulation theory.

[The simulation] is part of the vision that I have, and I want Sigfox to be able to stay true to this, he said at the time. This world is virtual. At the end of the day we are not living in the real world.

Le Moan parted ways with the company in February 2021, to be replaced by Jeremy Prince, who is the current CEO.

Despite the companys financial troubles, it seems that there is a business to be salvaged or saved here. Sigfox claims that its low cost and low energy technologies currently span across a global network that owned and operated by 75 operators (in other words, it seems to stitch together capacity from several other carriers for its own virtual network). That network, is says, covers a population of 1.4 billion people in 75 countries, and processes nearly 80 million messages per day generated by 20 million objects registered to its network. It says that it has commitments from 5,000 customers to deploy 50 million objects in total.

Well update this post as we learn more.

More here:

Sigfox, the French IoT startup that had raised more than $300M, files for bankruptcy protection as it seeks a buyer - TechCrunch

Toys R Us has been liquidated, resurrected, liquidated again and resurrected again. Meanwhile, the story of the old big-box version of the toy store chain is still being written.

In court papers this week, new allegations emerged against former executives and board members of Toys R Us, who approved a loan deal meant to finance the company through its bankruptcy and a turnaround, but which ultimately triggered a collapse of the country's last national toy store. Specifically, former creditors to Toys R Us claim that company leadership should have never approved its bankruptcy financing in the first place.

The slow-grinding litigation has been years in the making and has dredged up voluminous documents, including internal emails at Toys R Us, along with testimony from former officials of the retailer.

In a December court filing asking for summary judgment in the case, the defendants described "fatal defects" in the plaintiff's claims.

In a statement, Bob Bodian, managing member with the Mintz law firm and attorney for the denfendants, said of the plaintiff's recent filing: "The claims asserted by the Trust are baseless and irresponsible.They know that their case is legally unsupportable, so they seek to impugn the defendants through the media.Defendants will continue to refute these meritless claims in court, and we expect that the defendants, who always acted in the best interests of the company, will be fully vindicated."

This time in 2018 Toys R Us was in Chapter 11 after filing for bankruptcy the previous September. At the time of the company's filing which took analysts by surprise CEO Dave Brandon as well as other executives and attorneys for the company said the court process would be used to right the retailer's finances and make it stronger than ever.

Preceding the filing were years of decline, as Toys R Us, burdened with billions in debt from a private equity buyout, lost market share to mass merchants like Walmart, Amazon and Target.

Those retailers continued to outflank Toys R Us during the 2017 holidays. Behind the scenes, toy makers and suppliers were shipping to Toys R Us on assurances that it was supported by a bankruptcy loan for those suppliers shipping to the retailer on trade credit.

And then, in March, Toys R Us surprised the world again by announcing it would be forced to liquidate after breaching covenants tied to its bankruptcy financing. Vendors who had been supplying the retailer with product all along the way collectively lost hundreds of millions of dollars.

None of these events should have happened, in the view of former creditors who have been pursuing litigation against former Toys R Us leaders, including Brandon and the company's then chief merchant Richard Barry, who went on to lead a revived version of the toy retailer.

"As of August 2017, [Toys R Us] met all of the criteria for a business that needed to wind down: it had been losing money for years, had a broken business model, had no plausible path for a turnaround, and sales and margins were in an accelerating spiral downward," the plaintiffs stated in court papers this week.

Instead of an orderly wind down, Toys R Us signed a deal for debtor-in-possession (DIP) financing, a common tool to keep companies afloat while they work toward reorganization in bankruptcy. The company announced in a press release it had $3.1 billion in financing from a group of lenders led by JP Morgan.

By October, Kirkland & Ellis attorney Josh Sussberg said in court that Toys R Us had the backing of its vendors and was "continuing to fix" its issues. Brandon put out a media statement saying, "We are continuing to provide customers outstanding service whenever, wherever and however they want to shop with us just as we have for the past 70 years and will continue to do for decades into the future."

The key to both the company's turnaround and supplier support was DIP financing. According to the plaintiffs, key leaders at Toys R Us failed to "assess whether the Company could comply with the financial covenants in the DIP financing, which was required to avoid a precipitous default and forced liquidation."

As evidence, they cite testimony from company leaders, including that of Josh Bekenstein, co-chair of Bain Capital, one of Toys R Us' private equity owners at the time. When asked if he conducted an assessment of whether Toys R Us would be able to comply with the covenants tied to its DIP financing, Bekenstein answered with a simple "No."

Toys R Us defaulted on those covenants, which included budgets and revenue goals for the holiday season that the retailer ultimately fell well short of. Plaintiffs also argue that there was essentially no way Toys R Us could meet the financial targets required by the covenants, and the leaders knew or should have known that. Citing deposition testimony and other evidence, the plaintiffs argue that Brandon and then Chief Financial Officer Michael Short "knew that the Company could not comply with the financial covenants."

"Worse still, Defendants not only knew that the Company lacked sufficient capital and time to conduct a turnaround, they knew the purported 'Turnaround Plan' did not exist," plaintiffs alleged. "This was a 'Hail Mary' with no plausible chance of succeeding." Approving the DIP financing, in their view, amounted to a breach of their fiduciary duties.

Suppliers were still shipping products to Toys R Us while behind the scenes executives, directors, advisers and lenders were discussing covenant defaults and the possibility of liquidation.

When Toys R Us fell, unsecured creditors had $800 million in claims against the company. With Toys R Us' DIP financing secured by its inventory, lenders were repaid through the retailer's going-out-of-business sales while suppliers who shipped product much of it sold in its liquidation sales had nothing to secure their claims.

Many of those suppliers are among the plaintiffs suing the retailer's former leaders. Along with claims about the DIP, previous allegations have centered on executive bonuses paid to company leaders just before it filed for bankruptcy today a common practice but one that is under scrutiny and potentially subject to clawback and fraud claims.

While the Toys R Us drama played out years ago, it remains relevant. To some extent, it, along with other cases, may have altered the relationship between retailers in Chapter 11 and the suppliers they depend on. At the very least, many vendors are more wary than they were before the toy retailer's bankruptcy.

Original post:

The story of Toys R Us' bankruptcy is still unfolding, and it still matters - Retail Dive

Young Bucks battle with his bankruptcy estate continues over claims the rap star hid hundreds of thousands of dollars.

Young Buck, born David Danell Brown, filed for bankruptcy in January of 2020 after spending the last half of 2019 in jail for being a fugitive from justice.

The rappers debts started piling up after running into financial issues with the IRS. He also owes child support to his kids, and supposedly, $250,000 to his former friend turned foe, 50 Cent.

Things were going smooth until July of 2021, when Young Buck was accused of withholding his royalty statements from ASCAP and attempting to hide $35,000 paid out to his publishing company Mouth Full Of Ice.

Young Buck eventually settled with the bankruptcy trustee over the $35,000.

However, 50 Cent is attempting to terminate the settlement because the money allegedly belongs to G-Unit since Young Buck never fulfilled his contractual obligation to deliver two albums to the label.

And now Young Buck has more financial issues to deal with as his bankruptcy winds through court.

Young Buck received over $108,000 from Sound Exchange which he never reported to the bankruptcy estates trustee, Erica Johnson.

It gets worse.

According to Johnson, Young Buck also received over $32,000 from independent distributor Select-O-Hits. After he filed for bankruptcy, he also pulled down over $47,000 in royalties from Universal Music Publishing.

Johnson maintains that all of this money belongs to the bankruptcy estate so the rapper can pay off his debts.

The bankruptcy estate is requesting a judge make Young Buck turn over all ongoing distributions and an order declaring the rap stars catalog belongs to the bankruptcy estate free and clear of any and all exemptions and/or interest of the debtor.

Johnson is also seeking a judgment against Young Buck in the amount of the distributions the rapper has received and hidden.

The rest is here:

Young Buck Accused Of Hiding Over $100000 In Bankruptcy - AllHipHop

Opinions expressed by Entrepreneur contributors are their own.

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Ahmed Alomari started out a small town kid from Michigan with big dreams of financial freedom.

In the last 7 years Ahmed or GMoney as hes popularly known as online has founded and built four 7 figure online businesses, made millions investing in the stock market (audited and verified) and has coached hundreds of students to find financial freedom.

Ahmed is a big believer in network equals net worth and often says, Relationships open doors that money cant.

Ahmed is not only an entrepreneur, coach and investor but he is also a father of 6 children.

But before you rush to apply to work with him he has a disclaimer:

I busted my (expletive) to get where Im at today. If your an entrepreneur or investor that wants to work with me be forewarned I DEMAND that same work ethic from you or dont waste your time.

He adds, We all have a sob story guess what? NO ONE CARES. Life is 10% what happens to you and 90% of how you react to it.

Even though many of his consulting clients are amongst the elite Ahmed loves to mentor young up and coming entrepreneurs and investors and gets a real heartwarming kick out of their success stories.

Things werent always peaches and cream for this next gen entrepreneur in 2017 there were 790,830 bankruptcies in the United States and Ahmed almost became one of them.

Following his career you would come to realize Ahmed has overcome many real-life obstacles going from a broke pizza delivery driver to building and selling an online company for millions of dollars by the young age of 32.

But like every great story worth reading there was a plot twist.

Just 2 weeks after the sale of his company Ahmeds mother Catrina was diagnosed with stage 4 Ovarian cancer and while vulnerable he lost most of his fortune in an elaborate scam. But even in the face of adversity and having to start over with negative funds with FOUR kids and a pregnant wife Ahmed didnt give up.

His children got tossed out of private school, cars got repoed, collections agencies and IRS letters and visits were a normal part of his everyday life. But he NEVER give up.

Two of the lowest points of hitting rock bottom were when he and his family had to resort to eating fast food paid from out of a change jar that they saved up over the years and stowed away. The other was when he would have to send his pregnant wife into the grocery store to lift the groceries while he would circle the parking lot so the repo man wouldnt repo his families only remaining vehicle.

Most people would have been broken and defeated after having fallen off from such grace. Once again Ahmed never gave up and he didnt make excuses.

With his back against the wall and his families survival as his motivation he began leveraging his relationships, building 3 new 7 figure online businesses and investing in the market.

Over the next 3 years he slowly rebuilt his career, payed off his debts and was back better than ever.

The road to success was not easy, but nothing worthwhile comes easy. Everything good takes time.

Some notable businesses Ahmed has built in his career are:

World Renowned Marketer Neil Patel calls Ahmed One of the best social media marketers he knows pertaining to Facebook.

Out of all of his ventures Ahmed most enjoys investing and teaching others to invest in the stock market.

A born hustler, G Money has demonstrated his prowess as a successful entrepreneur in all of the ventures he has take while also setting huge benchmarks for many millions to follow.

Ahmed now resides in the New England area with his wife Maya and their 6 young children. He continues to work as a consultant and advisor to celebrities and publicly traded companies and a mentor to students through his education business Anything's Possible. He has coached and consulted hundreds of students leading them to understand the fundamentals and advanced learnings of the stock market and online business.

Ahmed stands as a true testament of leaving no stone unturned in chasing his passion and dreams to turn them into reality.

In his office he has a portrait of his family outside of the new 10,000 square foot house he bought them and right next to it is the change jar they used to eat out of.

That way he NEVER forgets just how far he has come.

Read more:

From Near Bankruptcy To 8 Figures: An Entrepreneurs Story Of Stocks, Online Business And Never Giving Up - Entrepreneur

MIAMI Puerto Rico received approval from a federal judge on Tuesday to leave bankruptcy under the largest public-sector debt restructuring deal in the history of the United States, nearly five years after the financially strapped territory declared it could not repay its creditors.

Since Puerto Rico entered bankruptcy, its economic crisis has only been further deepened by Hurricanes Irma and Maria, a series of earthquakes and the coronavirus pandemic.

The restructuring plan will reduce the largest portion of the Puerto Rico governments debt some $33 billion by about 80 percent, to $7.4 billion. The deal will also save the government more than $50 billion in debt payments.

And, though at a discount, Puerto Rico will start repaying creditors, something it has not done in years. The government said in 2015 that it could no longer pay its loans.

Today is truly a momentous day, and it is a new day for Puerto Rico, Natalie A. Jaresko, the executive director of the oversight board that has overseen Puerto Ricos finances since 2016, said a virtual news conference on Tuesday afternoon. This period of financial crisis is coming to an end.

The unelected board, which was created by Congress, is far from well loved in Puerto Rico, where many of the islands more than three million people refer to it as la junta. Critics worry that Puerto Rico will not have enough money in its general fund to make even the reduced debt payments over the long run, eventually forcing more painful economic cuts.

When the territory entered bankruptcy in May 2017, it had more than $70 billion in bond debt and more than $50 billion in unfunded pension obligations to public workers. The bankruptcies of other public entities, including the Puerto Rico Electric Power Authority, remain unresolved.

The agreement, while not perfect, is very good for Puerto Rico and protects our pensioners, university and municipalities that serve our people, Gov. Pedro R. Pierluisi said in a statement. We still have a lot of work ahead of us.

The scale of Puerto Ricos bankruptcy was unlike anything seen before in the United States. The territory had more than $120 billion in debt and pension obligations, far exceeding the $18 billion bankruptcy filed by Detroit in 2013.

Judge Laura Taylor Swain of the Federal District Court for the Southern District of New York, who presided over the Puerto Rico bankruptcy case, noted in her findings on Tuesday that some creditors objected to the restructuring plan. But she also wrote that the plan would enable the commonwealth to provide future public services and remain a viable public entity.

Judge Swain held lengthy hearings over the plan in November, including some in San Juan, the Puerto Rico capital. Protesters gathered outside the federal courthouse when the hearings began.

On Tuesday, Julio Lpez Varona, an activist and interim campaign manager for the Center for Popular Democracy, a left-leaning advocacy organization, attacked the deal as terrible for average Puerto Ricans.

Were talking more budget cuts, more compromising our services and potentially rate hikes like the ones weve seen for the last 10 years, he said, referring to Puerto Ricos very high electricity rates. We know its an unsustainable deal. Many, many economists have said Puerto Rico is not cutting enough debt. Its a recipe for disaster.

Jos Caraballo-Cueto, an economist and associate professor at the University of Puerto Rico, says that when a federal law giving foreign companies a tax incentive to operate on the island stops at the end of the year, it will result in less money for the governments general fund.

Whats happening to the general fund will translate to more austerity measures to essential services or higher taxes to make the payments, he said.

The oversight board pushed back hard against those arguments on Tuesday, forcefully defending the restructuring plan, which says the government has enough to make debt payments through 2034. David A. Skeel Jr., the boards chairman, said that the plan was long and complicated and that many of its critics have most likely not read it.

This is absolutely sustainable, he said. Its not going to lead to more cuts. I really think theres a lot of misimpression out there.

An earlier deal had been struck in early 2020, but it had to be reworked after the coronavirus pandemic wreaked havoc on Puerto Ricos frail economy, which in recent years has relied heavily on federal tax breaks and disaster relief funds. Hurricane Maria hit just days after Hurricane Irma in 2017, devastating the island.

Activists and elected officials did notch a big victory in the debt restructuring negotiations late last year when the oversight board backed away from plans to cut pensions for retired teachers and other government workers. That proposal was dismissed out of hand by Puerto Rico politicians. Many Puerto Ricans feared that such cuts would exacerbate poverty among older people.

Johnny Rodrguez Ortiz, who spent 31 years working for the power company, now spends every Wednesday morning protesting outside the companys headquarters. He fears that the companys bankruptcy proceedings may cost him his pension.

The only path they left us is poverty or to struggle in the streets, said Mr. Rodrguez, 73, of the town of Sabana Grande, in southwestern Puerto Rico.

Critics have also demanded an audit of how the large debt was incurred and demanded that those responsible face prosecution or other accountability.

But for all of the controversy the restructuring plan has stirred on the island, it has also charted a way forward albeit not necessarily an easy one after years of debt limbo.

The restructuring plan will give Puerto Ricans a level of certainty of how much the island will have to pay annually and allow us to create effective economic policy, said Heriberto Martnez Otero, the executive director of the Ways and Means Committee of the Puerto Rico House of Representatives.

The plan, he added, also starts the countdown to the exit of the oversight board. Frustration about the boards power was so intense that when angry Puerto Ricans took to the streets to oust Gov. Ricardo A. Rossell in 2019, they often chanted, Ricky, renuncia, y llvate a la junta! Ricky, resign, and take the board with you. (Mr. Rossell resigned. The board remained.)

To do away with the board, Puerto Rico must balance budgets for four consecutive years and meet other requirements, such as obtain access to the credit market at reasonable rates.

So at the very least, the board will be around for at least three more years, Mr. Skeel said. It may be a bit longer than that.

Read the rest here:

Judge Approves Deal to Resolve Puerto Rico Bankruptcy - The New York Times

After a bankruptcy filing, the task of repairing your credit begins. But how soon can you apply for new credit? It depends on the type of bankruptcy you filed because your bankruptcy must first be discharged. This can take as little as six months or as long as five years.

There are two types of bankruptcy for most consumers: chapter 7 and chapter 13.

Most consumers in crushing debt would prefer a chapter 7 bankruptcy to get a fresh start by liquidating all debts. However, to qualify for a chapter 7, you must pass a means test that assesses your income to determine if its over the median for your state and how much disposable income you have.

Chapter 7 is the most efficient and most damaging form of personal bankruptcy. It remains on your credit report for a full 10 years. However, once the chapter 7 has been filed, it is usually discharged (completed) in four to six months. So, while chapter 7 has the longer period of damage to your credit report, it has the shortest time to begin repairing your credit.

If you dont qualify for chapter 7, you may have to take a chapter 13 bankruptcy. This chapter requires repayment of a portion of your debt over three to five years. Chapter 13 will remain on your credit report for seven years from the filing date and is not discharged until your debt is paid off. Getting conventional credit or loans during this time is very unlikely.

As noted, your bankruptcy must be discharged in federal bankruptcy court before you can apply for any new credit; the bankruptcy notation does not have to be gone from your credit report, it just needs to be discharged. Your credit score will suffer serious damage from the bankruptcy, no matter the chapter filed.

To improve your credit score, you must begin by repairing your credit report. The process is similar to just starting out using credit for the first time. However, in addition to adding positive behaviors to your credit report, you also have to contend with the negative items that already exist.

Before you begin to apply for new credit, have a game plan to handle any new debt you take on. Dont get trapped again by letting out-of-control debt sneak up on you. The credit counseling required for filing and discharging can help you put together a credit management plan that works for you.

Before you apply for new credit, you should check your credit score to know exactly where you stand. You might have access to your score through your bank or other financial institution, but there are many free ways to check your credit score. Also, anyone can get their credit report for free at annualcreditreport.com. While this site does not offer free scores, it is a valuable tool to check for the accuracy of your credit file because it is this information that defines your score.

Be vigilant and skeptical of any unsolicited offers of credit purported to help you recover. Bankruptcy filings can be a mailing list for high-cost products or scams.

Knowing your score will help you target the timing of credit card reentry and find a card you can qualify for. This is important to remember because the bankruptcy will likely prevent you from qualifying for top-tier cards, and each application will entail a credit inquiry, further lowering your damaged score.

So, aim for the best card you can get at the score range you fall within. Bankrates CardMatch tool is a good place to start. A secured card may be your best bet. Getting a top-tier card will come in time, but for now, baby steps are key.

There are also cards with no credit requirements. Many of these cards are designed for college students and others new to credit. All credit cards are required to have a Schumer Box outlining their terms. Look this over carefully and avoid anything misleading or confusing.

Once you have a credit card or loan, the number one key to rebuilding your credit begins with paying all of your billsnot just your credit card billson time, every time. Resist the temptation to ask for an increase in credit line once you have a card until you see your score recover. Otherwise, the answer will most likely be no, and youll damage your score with a hard inquiry.

Keep your credit card balances low. Ideally, you should keep them as close to zero as possible. Remember that this first card wont come with a great rate and may even be secured by your own money. So, keeping your balances low is going to go a long way in building the credit utilization portion of your credit score (second only to on-time payments in importance). Plus, it will save you money in interest if you dont carry a balance.

Finally, if you are a renter, be sure that your landlord is reporting your rent payments. If not, you might look into a rent reporting service. Your rent may be your highest monthly obligation, and having those on-time payments reported can help. You might also look into the Experian Boost program that will report utilities and other monthly obligations.

Your bankruptcy must be fully discharged before you can apply for a new credit card. If you file chapter 7 bankruptcy, your debt will likely be discharged in four to six months. If you file chapter 13 bankruptcy, it will be three to five years.

Applying for new credit is key to rebuilding your score, but its important to have a plan to use your credit responsibly. With your new card, be sure to make healthy habits like paying on time each month and keeping your balances low.

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When to apply for a credit card after bankruptcy - Bankrate.com

Attorneys new to commercial bankruptcy practice often focus on obvious areas to build up their expertise: mastering the substantive and procedural rules of Chapter 11 and boosting their litigation and transactional skills. But new bankruptcy attorneys shouldnt overlook developing three additional skills as they start their careers.

Chapter 11 associates can always benefit from some basic accounting and finance abilities like reading balance sheets, identifying where valuation issues come into play with various provisions of the Bankruptcy Code, and understanding different valuation methodologies. Its also helpful to learn about corporate financing structures, from issuance of bonds to secured revolving credit facilities. Studying these structures will help you spot issues during the case, develop arguments, and evaluate proposed restructuring solutions. Bloomberg Laws Transactional Intelligence Center has a number of helpful resources for understanding financing transactions.

Developing skills in project management will enhance your career as a commercial bankruptcy attorney. Representing a Chapter 11 debtors or creditors committee can be a massive and overwhelming undertaking because these cases not only involve the reorganization process, but also the litigation of varying issues with numerous creditors in multiple contested matters and adversary proceedings. Project management skills can help make representing debtors and committees more manageable. Incorporating these skills into your practice will help you stay organized and will demonstrate that youre ready to move to the next level.

Finally, bankruptcy practice requires you to be a strong oral advocate, whether by making your case in the courtroom, negotiating with multiple parties on conference calls over the terms of a Chapter 11 plan, or explaining complex bankruptcy issues to your client. When you may not yet have a major role in the courtroom or on conference calls, note what the most effective speakers do. Seek out opportunities to speak and improve your verbal communication as well.

In addition to learning the skills above, new associates should explore Bloomberg Laws new Bankruptcy Fundamentals Toolkit, which has helpful resources for orienting attorneys new to bankruptcy practice.

Resources for understanding Chapter 11 are available in our Practical Guidance: Voluntary Chapter 11 suite as well as the Bankruptcy Fundamentals Toolkit.

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ANALYSIS: Three Skills Bankruptcy Associates Need to Stand Out - Bloomberg Law