ROCKPORT DEVELOPMENT BANKRUPTCY: REAL ESTATE LIQUIDATION

Rockport Development filed for bankruptcy in May, 2020 under Chapter 11 in Santa Ana.  The company develops, builds and/or “flips” high end single-family and multi-family residential homes in Southern California.

The company is owned by Kevin Zhang.  Allegations of impropriety surfaced against Mr. Zhang in connection with several of his real estate projects, which led to the Chapter 11 filing.  Continue reading “ROCKPORT DEVELOPMENT BANKRUPTCY: REAL ESTATE LIQUIDATION”

PROFESSIONAL INVESTORS BANKRUPTCY: REAL ESTATE FMV

Professional Investors bankruptcy was filed under Chapter 11 on July 26, 2020 in San Francisco.  The joint debtors (Professional Investors Security Fund Inc. and Professional Financial Investors Inc.) own 29 real estate projects in Marin County.

The properties include both commercial and residential.  These projects were financed largely by individual investors who live in Marin County. Continue reading “PROFESSIONAL INVESTORS BANKRUPTCY: REAL ESTATE FMV”

CALIFORNIA SENATE BILL 939 FAILS IN COMMITTEE

The year 2020 has been rough for business, so far.  But there is a silver lining: this is the perfect environment in which to restructure and rightsize your business.  With brand businesses everywhere filing for Chapter 11 and otherwise restructuring commercial leases and other obligations, 2020 offers the perfect cover for small businesses to do the same.

California Senate Bill 939

For California businesses, commercial lease relief looked as if it was on the way.  California Senate Bill 939, if passed, would have required a moratorium on commercial evictions as well as rent restructuring.  The entire proposed bill can be read here.   [UPDATE]: this bill subsequently died in committee and will not become law in the state of California. Continue reading “CALIFORNIA SENATE BILL 939 FAILS IN COMMITTEE”

FMV PART 4: FAIR MARKET VALUE IN LITIGATION

The primary thesis of this blog series is that assessing fair market value in litigation and bankruptcy must now account for general economic conditions, due to Federal Reserve distortions of fair market value through unlimited monetary expansion and the unavoidable influence of global derivatives trading markets. Continue reading “FMV PART 4: FAIR MARKET VALUE IN LITIGATION”

FMV PART 1: DISTORTIONS OF FAIR MARKET VALUE

Our legal system depends on accurate assessments of fair market value in virtually every business-related matter that comes before a court. Distortions of fair market value, from whatever source, are problematic. Valuation issues materially affect everything from real estate values to stock and commodity values to more esoteric valuations involving crop prices for farmers. Continue reading “FMV PART 1: DISTORTIONS OF FAIR MARKET VALUE”

WALL STREET ON PARADE: “THE TIDE IS GOING OUT…”

Wall Street on Parade is the best available blog site that follows the daily activities of the Wall Street banks and the Federal Reserve.  Authored by Pam and Russ Martens, the Wall Street on Parade blog routinely tracks the relationship between the worst derivative speculators and their counter-party insurers. The title of this article (March 29, 2020) succinctly describes the most recent economic and financial disaster caused by derivatives speculation: The Tide Is Going Out and JPMorgan, Deutsche Bank and AIG Appear to Be Swimming (Read Trading) Naked.

While last week’s bailouts, by both Treasury and the Fed, have helped stem the “tide” (no pun intended), the share prices for JPMorgan, Deutche Bank, AIG and Ameriprise Financial are falling significantly faster and farther than other financial and corporate share prices. This derivatives disaster is highly material to holders of annuities and life policies from any of these insurers, forecasting a near certainty that policy and contract claims will go unpaid–or at the very least–only partially paid. Continue reading “WALL STREET ON PARADE: “THE TIDE IS GOING OUT…””