Last year the Obama administration created the American Recovery Capital lending program which is providing $255 million in emergency loans until September for “viable” small businesses facing immediate financial hardship. Businesses facing financial problems could receive deferred payment loans of up to $35,000 interest-free for five years.  However the program has not worked out as many had hoped and it may not provide much relief for businesses who …

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… debtor’s discharge because he failed to disclose that he owned a small interest in a business venture from which he received some income.

The details of the bankruptcy case:

The debtor filed for Chapter 7 bankruptcy after a state court found him liable for $68,460.  The debtor claimed in his bankruptcy filing that his only income was $812 a month in Social Security payments.  However, it was later revealed that the debtor had received a total of $2,200 in October 2008 from a …

Tags: Bankruptcy Chapter 7 Title 11 United States Code United States Venture capital

According to an article in the Washington Post, Capital One Financial lost $276 million in their second quarter, due to continuing losses from its credit card loans. Capital One’s U.S. credit card business was down by 51 percent in 2009 compared to last year’s numbers.

The article said:

“Chief executive Richard D. Fairbank told investors and analysts in a conference call Thursday that the McLean company expects worsening unemployment …

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… it was able to slash its US$2.2 billion ($3.1 billion) debt load by 75 per cent and boost its capital levels. It has access to US$525 million in funding after refinancing certain bonds, which also will save the company US$30 million in interest costs annually. There is another $50 million available in a revolving credit line.

“Emerging with a de-levered balance sheet and a strong new capital structure is a significant step forward as we continue to transform Reader’s Digest …

… proposal worked out before the broadcaster filed its bankruptcy, affiliates of Oaktree Capital Management L.P. will own a majority of the new stock to be issued once Regent leaves bankruptcy.

Current stockholders will receive about $5.5 million and the company will have a new loan of $95 million, according court records. A judge must first approve the reorganization proposal.

The company said the reorganization should not affect its day-to-day operations because it has $11 …

… A Chapter 11 bankruptcy was unlikely because Veoh had already burned through millions in capital and was unable to make a profit.  In Chapter 7 bankruptcy it assets will be liquidated and the proceeds will be distributed to its creditors.

… On Wednesday Jay-Z filed a lawsuit in U.S. District Court in Manhattan, which claims that Highland Capital Management and NexBank attempted to pinch extraneous payments from the rapper as he repaid a loan related to a planned hotel development, the Wall Street Journal reports.

Jay-Z’s foreclosure dispute is not too different from the foreclosure problems of everyday homeowners.  Many mortgage lenders fail to respond to mortgage modification requests in a timely manner and even blame the …

… and improve their dismal balance sheet.  Master Land Holding LLC and its parent company Allen Capital Partners LLC said the bankruptcy filing would allow them to “extend debt maturities, improve their capital structure and further strengthen the Dallas Logistics Hub’s competitive position.”

“We have a balance sheet problem, not an operational one,” said Richard Allen, chief executive of DLH and ACP. “The unprecedented collapse of the U.S. real estate and capital markets …

… Properties’ cash flow required to be held in reserve, which affected the company’s working capital.

Miles Properties has 15,000 to 20,000 residents who have not yet been affected by the Chapter 11 bankruptcy filing; but it is not clear yet if they will be affected in the future and if so, how.  Right now, Miles Properties is saying that they are struggling to pay their employees and are need of immediate concessions from creditors in bankruptcy to continue doing business.

Miles …

… is supported by a steering committee of its secured creditors and led by investment firm Avenue Capital Management, which would take control of the company under the plan.

But the company’s official committee of unsecured creditors opposes the plan saying it undervalues the theme park operator.

A group of junior noteholders led by Stark Investments want to offer their own plan to take control of the company. It would give back more money to certain groups of creditors.

Six …

… consortium of banks, most of them foreign, extended a $1.75 billion loan, which along with JBS’ capital will allow Pilgrim’s to pay off all secured and unsecured creditors.

Well at least the “bailout banks” aren’t discriminating.  They equally ignore big business as well as the individual debtor.  What exactly were these bailout funds for? Weren’t they designed to restart the engine of lending, stop foreclosure and help companies emerge from bankruptcy with a fighting …

… are more financially vulnerable to job losses than their predecessors in 1982. And some would even venture to suggest that unemployed workers are worse off than the unemployed during the Depression.  Today there is a domino effect taking place where employers opt for job losses, consumers cut back on spending and the banks feel the crunch as both individuals and businesses find it difficult to pay their debts. With the rising cost of health insurance, many unemployed workers are finding …