Homeowners facing foreclosure getting insufficient help

by Sundeep Kothari

Atlanta, Georgia Bankruptcy Attorney

http://www.nytimes.com/2009/12/30/nyregion/30foreclose.html?hp

President Obama’s $75 billion plan presented a few months ago hasn’t helped a sufficient number of homeowners.

Report: Chrysler expected to file for Chapter 11 bankruptcy

by Sundeep Kothari

Atlanta, Georgia Debt Help Attorney

Report: Chrysler expected to file for Chapter 11 protection

From the article:

Auto industry, will file for bankruptcy today after last-minute negotiations between the government and the automaker’s creditors broke down last night, an Obama administration official said.

U.S. officials had offered Chrysler’s secured lenders $2.25 billion in cash if they would agree to writedown the $6.9 in secured debt that the company owed. But a small group of hedge funds refused the 11th-hour deal, forcing an imminent bankruptcy.

An administration official this morning expressed disappointment, saying the holdouts had failed to “do the right thing,” but that “their failure to act in either their own economic interest or the national interest does not diminish the accomplishments made by Chrysler, Fiat and its stakeholders, nor will it impede the new opportunity Chrysler now has to restructure and emerge stronger going forward.”

President Obama is scheduled to address the issue at noon today at the White House.

As talks broke down late last night, it became near certainty that the Obama administration would send Chrysler into bankruptcy under a plan that would replace chief executive Robert L. Nardelli and pump billions of dollars more into the effort, all in hopes that the company could emerge from court proceedings as a re-energized competitor in the global economy.

When Lehman Brothers was allowed to go into bankruptcy, the stock market soon-after went into free fall, and the economy hasn’t recovered since.

Will the same thing happen now? Or will the economy stay about where it is?

No one really knows. This is kind of a test against the idea that some companies are simply too big to fail.

Lots of jobs are going to be lost through this bankruptcy, not simply at Chrysler but for dealers, suppliers, and more.

And no one is certain that Chrysler can emerge from a Chapter 11 bankruptcy, rather than end up getting liquidated, the way Circuit City went into bankruptcy thinking it could emerge but eventually shutting down completely.

Treasury announces new plan to help homeowners with second mortgages

by Sundeep Kothari

Atlanta, Georgia Bankruptcy Lawyer

Treasury announces help with second mortgages

From the article:

The Obama administration sought to expand its $50 billion plan to reduce home foreclosures, announcing a new program on Tuesday to help troubled homeowners modify second mortgages or piggyback loans.

Under the new plan, the Treasury Department will offer cash incentives and subsidies to lenders who agree to substantially reduce the monthly payments on second mortgages or forgive those loans entirely.

The goal of the plan is to plug a hole in the administration’s original program, which offered subsidies to lenders who agreed to modify the primary or first mortgages of homeowners who had fallen delinquent or were in danger of doing so.

But millions of homebuyers took out second mortgages to buy houses with little or no down payment or to finance home improvements and other purchases. Those second-lien mortgages have to be renegotiated separately, a step that often complicates efforts to modify the primary loans.

Analysts predict that at least 4 million homeowners will face foreclosure proceedings this year, up from about 2.2 million in 2008. Administration officials said about half of those people had second mortgages.

Parent company of Perimeter, North Point, Cumberland, Southlake Malls files for bankruptcy

by Sundeep Kothari

Atlanta Georgia Bankruptcy Lawyer

Parent company of Perimeter Mall files for bankruptcy

General Growth Properties, parent company of Atlanta malls Perimeter Mall, North Point Mall, Cumberland Mall and Southlake Mall, filed for bankruptcy protection in New York. The company was unable to get debt holders to agree to different terms.

No change is expected for customers and visitors to the various malls.

Equitable Building to be auctioned on May 5th

by Sundeep Kothari

Atlanta Georgia Bankruptcy Attorney

Equitable Building to be auctioned on May 5th

Equitable Building, the 33 story building located in downtown Atlanta, will be auctioned on May 5th. The building currently has only about 50% of its space leased.

Report: GM preparing to file for bankruptcy by June 1st

by Sundeep Kothari

Atlanta Georgia Bankruptcy Attorney

GM preparing to file for bankruptcy by June 1, 2009

The New York Times is reporting that GM may file for bankruptcy by June 1, 2009. This would be a pre-packaged bankruptcy, meaning that creditors would agree to terms prior to filing. The aim of this bankruptcy would be to divide GM into two parts, a “good” part and a “bad” part. The good part would emerge quickly out of bankruptcy, while the bad part would stay in bankruptcy for a longer period of time. Bondholders are expected to object to any bankruptcy filing.

Eason maintains control of Creative Loafing

by Sundeep Kothari

Kothari Law Firm

Eason maintains control of Creative Loafing

The judge in Creative Loafing’s Chapter 11 Bankruptcy case decided that Ben Eason, current CEO of Creative Loafing, would maintain control of the company, but noted that the proposed Chapter 11 plan would be difficult to confirm.