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Daily Archives: June 27, 2021
Jirkov imposes ban on gambling to improve quality of life – TheMayor.EU
Posted: June 27, 2021 at 4:08 am
Jirkov issues ban on gambling to reduce crime
It is hoped that the new decree will make the Czech city a safer place
On 25 June, the Czech City of Jirkov announced that a majority of city officials have agreed to make gambling illegal. The only exceptions to this new decree are small card games with a limit of CZK 500 (EUR 20). With this reform, Jirkov hopes to reduce crime and improve the quality of life in the city.
Mayor of Jirkov Darina Kovov expressed her satisfaction with this new law which restricts the operation of gambling establishments, noting: We are glad that the coalition and the opposition have found common ground in such a crucial matter.
In a press release, the City of Jirkov reported that several establishments halted their activities during the state of emergency brought about by COVID. Now, these centres will not be permitted to resume operating. In addition to the closure of these businesses, the number of pawnshops in the city is also expected to decrease.
The reason behind this is the fact that pawnshops are often located next to casinos and other such establishments which are frequented by individuals with gambling addictions. Unsurprisingly, the presence of these shops only further fuels dependence.
Admittedly, the new decree will initially have a negative impact on the citys economy. Nevertheless, it will reduce the number of indebted citizens and the negative repercussions of gambling addictions. On its website, the City of Jirkov further explained that one of the main reasons why it has issued this ban is to reduce crime.
It is important to note that the decree will further improve public health by ensuring that individuals do not suffer the negative psychological, physical, and social consequences of addiction. In this way, the Czech city seeks to become safer and more secure for all citizens.
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Same Politicians Who Legalized Weed and Casino Gambling Killed Skill Games – Bacon’s Rebellion
Posted: at 4:08 am
by Kerry Dougherty
For more than 30 years Virginias been breathlessly legalizing vices.
It began when voters approved a state-run numbers racket the lottery in 1987. Since then, all manner of wagering has been approved for our gambling pleasure.
Virginia now has horse racing, off-track betting, sports betting and soon, casinos.
But in their wisdom, members of the General Assembly the same ones who battled tirelessly to bring slot machines and blackjack to the Old Dominion decided to 86 electronic skill games that reside mostly in truck stops, convenience stores and restaurants.
Make no mistake, theyre doing the bidding of the greedy big boys of gambling by cracking down on the little guys.
The casinos dont want competition for those Virginia betting dollars.
Never mind that these skill games kept numerous small businesses afloat during the pandemic when there were precious few outlets open for entertainment.
Take the case of Hermie Sadler of Emporia, for instance.
Throughout the Covid-19 shutdowns, this former NASCAR driver and Fox Sports pit reporter was able to keep employees at his convenience stores, restaurants and truck stops on the payroll, despite business being down 30 to 35 percent.
Sadler was even able to provide free lunches to first responders during the month of April 2020.
How did he do it? Two words: Skill games.
Youve seen them, those electronic gambling machines in the corners of convenience stores. They cost anywhere from a nickel to five bucks to play and pay out $25, $50 or the occasional $100 or $500 jackpot.
Revenue from those machines kept Sadler profitable when few people were traveling and patronizing his businesses.
But pressure from the newly legalized casino industry plus whining from the lottery folks that skill games cut into ticket sales convinced the General Assembly to outlaw the games that have been legal for decades.
Yep, on July 1, the same day pot is legalized the harmless little arcade games are gone.
Earlier this week Sadler and his attorney, State Sen. Bill Stanley, filed a two-count civil suit in Greenville County Circuit Court against Gov. Ralph Northam, Attorney General Mark Herring and the Alcoholic Beverage Commission, alleging that the new law is unconstitutional.
Theyre seeking an injunction to allow the machines to stay operational after July 1 until the case can be heard.
What we did in the General Assembly was wrong,Stanley said at a press conferenceoutside the courthouse. We decided that skill games are unseemly and theyre not.
If youre going to legalize gambling in the commonwealth of Virginia youve got to rip the Band-Aid off and legalize all gambling.
Picking and choosing winners and losers is un-American and un-Virginian.
He added that Sadler was standing up for the little guy.
Asimilar suit was filed this week in Norfolkby five business owners in Tidewater.
Running small businesses in rural areas of Virginia is difficult, Sadler said. Its been way more challenging this past year with Covid-19.
Skill games were a lifeline he said.
Weve been legally operating skill games for more than 20 years, Sadler told me yesterday. Truck drivers have to be down for 12 to 24 hours. Not only do they play the skill games for entertainment, they eat in our restaurants, they buy things. They bring in a lot of revenue for us and the state.
Truck drivers are not going to head to casinos if the skill games are banned, Sadler added.
I believe in the free markets. Let people decide where they want to spend their money.
In a state hellbent on legalizing all manner of gambling, the ban on skill games is punitive and unfair.
The General Assembly needs to fix its mistake when they meet in August.
This column is republished with permission from Kerry: Unemployed & Unedited.
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Gambling: Clemson products set to shine in NFL during first year with Jags – Colorado Springs Gazette
Posted: at 4:08 am
Weve officially hit the doldrums, a time when any coachspeak quote or offseason beach workout is repeatedly dissected. With all teams on siesta until training camps commence, its the perfect time to start diving into futures markets, especially player props. Brad Evans from FTN Bets offers up two of his favorites before the line values evaporate under the sizzling summer sun. Fade or follow? That, of course, is up to you.
Trevor Lawrence OVER 22.5 passing touchdowns (-130, BetMGM) Possibly as or more exquisite than his brothers rather eccentric wardrobe taste, the proposed line is an extraordinary value. Compared to other books, BetMGMs line is a full two TDs lower. Advantage, bettor. This is a gift from the gambling gods. Lawerences entrance into the league should be quite memorable. As displayed during his storied days at Clemson, he possesses the all-fields arm strength and accuracy to pay an instant dividend. Evidenced by the hardware collected, the man soared. Last season with the Tigers, he notched a 111.0 passer rating or higher on every possible throw and finished top-12 nationally in adjusted completion percentage. His pro arsenal isnt too shabby. D.J. Chark, Marvin Jones, Travis Etienne and CU product Laviska Shenault are a formidable bunch. The Jags projected bendable defense, too, will only assist. In the end, 25-plus passing TDs are likely for the new Blonde Bomber.
Travis Etienne OVER 44.5 receptions (-105, PointsBet) Sticking with the Duval County theme, the rushers reteaming with Lawrence should bang the box score. At the collegiate level, the pair connected 48 times last season. Etiennes explosivity and elusiveness combination is top-flight. With Clemson in 2020, he forced the 12th-most missed tackles (43) among all Division I running backs and tallied a laudable 3.84 yards after contact per attempt. His bubbling chemistry with Lawrence cannot be overstated. Under OC Darrell Bevell, whos passing offenses between Seattle and Detroit ranked inside the top-10 in four of the last five years, the youngster will carve out a sizable pass-catching role, similar to what DAndre Swift did with the Lions last year (46 catches in 13 games). Yes, James Robinsons presence muddies the Saint Johns already murky waters, but with multiple scoreboard-chasing scenarios likely to unfold, 55-65 receptions are achievable for Etienne in Year 1. No doubt, this is one of the best early player props available.
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5 Gambling Related TV Shows You Need To Watch in 2021 – Film Threat
Posted: at 4:08 am
In a nutshell, gambling can be very mesmerizing to watch. Not only is there the thrill of the moment; the roll of a dice, the spin of a roulette wheel, but theres also the pageantry of lights and sounds. Put it all together and you get an experience that is a huge joy to watch.
Of course, the truth is that there arent that pieces of gambling entertainment out there. In fact, most gambling takes place in films, including some famous ones like the Oceans franchise which is a part-gambling, part-robbery flick.
Fortunately, though, there are some great TV shows in the genre. Since the world has largely moved from physical casinos to online casinos due to the pandemic, that means well have to get our fill of old-school gambling through our screen.
If youre a big fan of Poker, then Poker After Dark is definitely your show, especially if you like No-Limit Texas Hold em. Hour-long episodes show the progress of a specific table over the course of a week, with blinds starting at $100/$200. The top prize was $120k, with a $20k buy-in, so the stakes are pretty high, and it can certainly get pretty dicey (pun intended).
In between each round, thered be commentary from the hosts, as well as the players themselves. The show also started trying to introduce some new elements in the fourth season in the form of different types of games.
Interestingly enough, the show had a bit of a sordid history: it was canceled in its 7th season due to a criminal case, colloquially called the Black Friday Case, which involved one of the shows sponsors. Thankfully, after a 6-year hiatus, the show was rebooted and is now streamed on PokerGo.
Just keep in mind that this isnt a fictionalized gambling show like some of the others on the list (or a gambling movie like 21). Even so, its great fun if you want to see how real-world poker works.
If youre looking for something a bit more fictionalized and a little bit wider, then Las Vegas will do it for you. Its a comedy-drama covering a group of employees working in a fictionalized casino and hotel. As you can imagine, it covers everything from security to sleazy hotel guests, and things of that nature.
The show also has a pretty big star lineup, with celebrities like Tom Selleck and James Caan, and focuses on the character played by the latter: An ex-CIA officer who is president of operations at the fictional casino, before being replaced by another character played by Josh Duhamel.
Unfortunately, while the first two seasons did pretty well, the show started seeing lower and lower ratings starting from the third season, finally being canceled after the fifth. Even so, the show was received pretty well and its a great gambling-related TV show.
Looking at the slightly seedier side of gambling, Breaking Vegas focuses on some of the well-known illegal acts that have happened in vegas. In the same vein as some of the best movie heists, this show covers the cheaters, the liars, and the tricksters who tried to get one over on casinos.
The 14 episodes mostly cover things like the story of Ken Uston, who was one of the first people to perfect blackjack card-counting techniques and even sued several casinos over being blacklisted and won. There are also a few episodes that cover legal gambling strategies, such as throwing dice at a certain angle or with certain numbers on top.
Overall, its an interesting TV docu-series to check out if youve ever wondered how some of the most notorious cheating at gambling was done.
Centered around the world of race-track gambling, and horse racing in general, Luck tells the story of a man driven to gain revenge on those who wronged them. It very much lives up to the reputation HBO has for telling dark and gritty stories such as Game of Thrones and is captivating in its methodical purpose.
Interestingly enough, the main character is played by Dusting Hoffman, who if youll remember played Raymond Babbit in Rainman, one of the best film gamblers of all time.
Unfortunately, though, the show was canceled in its second season. It wasnt due to reception either (which was really good), but instead because there were a couple of horse deaths during the production. Since the show primarily revolves around that, and there was already bad press around their deaths (even though an investigation cleared HBO), they ultimately decided to cancel it.
Another show that revolves around real-life gambling, King of Vegas is a bit different in that it doesnt only focus on one game, such as blackjack or poker, but instead has a variety of them in each episode. The games played, along with the ones mentioned above, including Red Dog, Craps, Mini-Baccarat, and Horse Racing, to name a few.
Something else that makes King of Vegas stand out is that it has a mix of sex professional gamblers, and six amateur gamblers, all vying for the ultimate title of King of Vegas, and a $1mill prize. Each week there would be a set of four new games and one person would be kicked out.
If youve done the math so far, that means there are 12 players in total and 12 episodes to go on, with the final episode crowning the King of Vegas.
Its a shame the show only had one season since it has an interesting premise and a ton of potential.
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Concerns over gambling and gaming habits of Isle of Wight youth – Isle of Wight County Press
Posted: at 4:08 am
YOUTH workers and teachers are being shown how to help young people who have become drawn in to harmful gambling habits or who are gaming too much with behaviours exacerbated during the pandemic.
The Island Youth Mental Health Census 2019 suggested young people on the Island may be particularly vulnerable to anxiety and depression, which is often associated with harmful gambling or gaming behaviours.
This is believed to have worsened due to Covid pandemic lockdowns, when young people didn't have the structure of school or any social events or clubs to attend leaving them with more time on their mobile phones and other devices.
Experts at YGAM, a gambling charity, believe gaming has started to overlap because both habits involve devices and being drawn in to making micro-transactions.
Both are easily accessible and involve the 'excitement' of lootboxes (or virtual treasure boxes).
Gaming age ratings are lower than for gambling, which means children are getting used to the mechanisms of playing and winning at a younger age.
Another popular activity is e-sports, where you can bet on your team.
Kyle Riding, of YGAM, explained: "Children now get a strange perception of winning. During the pandemic, sport was cancelled but e-sport continued, and e-sport betting has gone through the roof.
"Young people may have been gaming and on e-sports before but usage increased during the pandemic. There are some incredible games out there, but there are lots of crossovers with real gambling, and there are blurred lines between the two."
YGAM is extending its reach to the Island, as previously reported by the County Press.
Katherine Sawyer, YGAMs education manager for the South West, said: "I recognise that the Island faces many unique challenges around this topic both geographically in terms of rural isolation and socio-economically."
What are the Island's statistics on gambling?
There is very little local data showing how many young people are gambling.
However the Isle of Wight Council said national data suggests that increasing exposure to online adverts for gambling and increased use of various platforms for learning and social interchange has contributed to an increase in gambling among young people.
Research indicates that gambling using mobile phones is the most popular way especially for younger people and that in-play and eSports betting is highest among young people especially males.
Gambling Commission data from 2019 indicates that 11 per cent of 11 to 16 year olds had spent money on gambling in the last seven days. It is recognised that increasing trends are seen in exposure to online gambling adverts as well as problem gambling.
The Children and Young Peoples Survey (from 2019) showed that 97 per cent of secondary respondents stated they have received information on how to stay safe online with 70 per cent responding that they always follow that advice.
This was pre-pandemic, with YGAM saying trends are showing an increase in gambling since then.
The County Press has found that on the Island, there are no specialist local gambling support services for young people.
YGAM is a help and advice service which offers resources and training to the childrens workforce, not direct intervention with young people themselves.
Scroll down for various helplines on this issue.
What are the signs to look out for in someone excessive gambling or gaming?
There is a big impact on mental health and although gaming disorder was classified by the World Health Organisation (WHO) in 2018 it is still a very new recognition.
WHO defines it as a pattern of persistent or recurrent gaming behaviour so severe that it takes precedence over other life interests.
Look out for someone spending too much time or money online, building up or hiding debt issues, having arguments with family, and neglect of personal hygiene.
Other signs are lying and hiding behaviours, and people expressing excitement and adrenaline then a crash in their mood.
What are the solutions?
What are the problems?
The following national resources focused on gambling may be of help:
BigDeal is part of GamCare, the organisation that runs the National Gambling Helpline, and provides information, advice and support to young people aged 11 to 18 who have a gambling problem or who are affected by someone elses gambling. On the website bigdeal.org.uk there is a free live chat function which provides 1:1 advice, 24/7 and there is also a young persons helpline (0203 092 6964). Out of hours, a young person can talk to someone at the general National Gambling Helpline, which is staffed 24/7, on 0808 8020 133.
Young people on the Island can access the following resources in relation to their general emotional wellbeing and mental health:
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Gambling Commission survey warns of overspending risk in cashless payments – iGaming Business
Posted: at 4:08 am
The Gambling Commission has released the results of a survey into cashless payments in land-based gambling, revealing that participants think cashless payments make it easier to overspend and feel less in control when using cashless options.
However, the regulator also suggested, following the results, that an app to record cashless payments and allow operators to intervene if necessary could reduce any potential risk of harm from cashless gambling.
The online survey, which was conducted by 2CV, was taken by 314 land-based gamblers who had gambled in the last 12 months as part of the Gambling Commissions ongoing research campaign, Consumer Voice.
It found that 85% of participants thought that making a cashless payment, such as debit card or a mobile contactless payment, made it easier to spend more money than was first intended. Some 77% of those surveyed reported that cashless payments made it easier to spend more time on gambling.
Further, 68% reported difficulty in taking stock of their total spend after using cashless payments, while only 47% said they found it easy to keep track of spending. 70% reported that paying for gambling activities with cash makes it easier to set personal limits on spending.
In addition, 37% of respondents said they would spend a little more than intended when using a contactless card payment, and 13% reported that they would spend a lot more than intended. However, with cash payments, only 9% of participants said they would spend a little more than intended while 1% said they would spend a lot more.
The survey also revealed that cash is the most common method of payment land-based gambling activities, such as slots, with 77% of respondents using cash over card payments.
In response to the findings, the Gambling Commission suggested that it could be beneficial to create an app that would track gambling activity in customers and intervene when necessary, while facilitating cashless payments. 22% of participants said they would be happy to pay for gambling through an app that allowed gambling companies to access and track their information, while 33% said they would not, with concerns around privacy.
Use of cashless payments which are currently not allowed for land-based gambling in the UK is one area that the UK government is currently examining in its Gambling Act Review.
Earlier this week, the Gambling Commission released a survey revealing that 34% of players were influenced to gamble through marketing in the last year.
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Exclusive: XCLAIM Raises $6.6M To Democratize The World Of Bankruptcy Claims – Crunchbase News
Posted: at 4:07 am
As retail investors increase and find new opportunities in different financial markets, Los Angeles-based XCLAIM is hoping to bring the overlooked world of bankruptcy claims to the masses.
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The online marketplace for bankruptcy claims has closed a $6.6 million seed extension after launching its platform in the fall. The round was led by General Catalyst with participation from First Round Capital, Freestyle VC, Innovation Ventures, Luge Capital, Quiet Capital, Tribe Capital and strategic angels. Founded in 2018, the company has now raised $10.6 million.
XCLAIMs marketplace allows for both the buying and selling of bankruptcy claims. The theory behind buying a bankruptcy claim is that it eventually will be repaid, however the amount and timeline are uncertain. The uncertainty does create risk for the buyer, while the seller can receive a payout on the claim likely faster than waiting for the claim to be repaid.
Its a relatively hidden market, but it is huge, said Karim Gillani, general partner of Luge Capital. Its a market that is opaque to many.
The company has claims on the site ranging from $1,000 to $2 million and takes a one percent commission on each transaction to monetize the platform.
XCLAIM has managed to digitize the process of buying and selling claims through exclusive partnership agreements in place with five of the seven claim agencies that handle bankruptcies in the 94 federal courts, said founder and CEO Matthew Sedigh.
Sedigh sees the platform as a chance to bring more clarity to what is often a misunderstood process, and one that can now be open to more than just hedge funds and distressed asset investors combing through court records.
In the chase for better yield, people are turning to more alternative asset classes, he said.
The site currently lists more than 2 million creditors with claims of $3.5 trillion of unsecured debts and since launching trading volumes on the site have surpassed $20 million.
This is not the first time a company has tried to digitize the bankruptcy claim market. About a decade ago, SecondMarket which primarily tried to help employees at startups sell shares of private companies also attempted to buy and sell claims, Sedigh said. However, the company did not have integrations in place with claim agencies to keep supply up, Sedigh said.
Sedigh added that when the stock market became digitized in the 1990s, trading exploded. Something similar is happening currently in the bond market as companies such as MarketAxess and Tradeweb have taken it into the twenty-first century.
XCLAIM can have a similar effect on bankruptcy claims, he believes.
We look at ourselves as the NASDAQ of receivables, he said.
With a large and seemingly open market, Gillani said Luge was excited to invest.
When we did our due diligence, it was hard to find a comparable, he said. Its just such a hidden market. The average person on the street does not know bankruptcy claims can even be traded.
Illustration: Li-Anne Dias.
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Hertz Is About to Exit Bankruptcy. Why Its Stock Is a Buy. – Barron’s
Posted: at 4:07 am
A Hertz car rental location in Silver Spring, Md. Kristoffer Tripplaar/Sipa USA via AP
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Hertz Global Holdings is set to emerge from bankruptcy this week at a perfect time. And shareholders stand to gain.
The rental-car industry is capitalizing on both a domestic travel surge and a vehicle shortage this summer to raise prices. Vacationers are paying $275 a day or more for midsize sport utility vehicles from Hertz in popular locations and $100-a-day rentals are common, double what Hertz was getting in the first quarter. Used-car prices, meanwhile, have surged, benefiting the industry when they sell their fleets.
The rental-car market is on fire, and the companies have found pricing discipline, says Hamzah Mazari, an analyst at Jefferies. What used to be a dysfunctional oligopoly is now functional. Hertz (ticker: HTZGQ), Avis Budget Group (CAR), and privately owned Enterprise control about 95% of the domestic market.
The way to play Hertz is through its current stock, which has nearly doubled, to $7.15, since mid-May. Thats when a group led by Knighthead Capital Management, Certares Management, and Apollo Global Management (APO) won a bidding contest in bankruptcy court for the company. More upside is likely after Hertz exits bankruptcyexpected on June 30, with the new stock trading the next day. Hertz will emerge with little or no net corporate debt, while Avis has about $3.5 billion.
E=Estimate. Ebitda=earnings before interest, taxes, depreciation, and amortization.
Sources: Barron's calculations; company reports
Sources: Barron's calculations; company reports
Our plan for Hertz is to invest heavily in modernizing the companys technology and improving the customer experience, Greg OHara, senior managing director and founder of Certares, tells Barrons. Along with a right-sized capital structure and favorable economic tailwinds, we can turn Hertzwhich has always had a strong brandinto a stronger company, as well.
Andy Taylor, managing director at Carronade Capital Management, another firm involved in the restructuring, says, Its hard to overstate how well positioned Hertz is coming out of this restructuring. Hertz will emerge with the healthiest balance sheet in the rental-car sector into an unprecedented demand and pricing environment, which should persist through the second half of 2022, given that the industry cant increase supply due to a 50-year low in auto inventory.
Current Hertz shares are due to be exchanged for a package consisting of $1.53 a share in cash, 3% of the stock in the reorganized company, and warrantsa long-term call optionfor 18% of the new, postbankruptcy company. Holders of the current Hertz shares could realize $10 to $12 a share, Taylor says.
The initial trading in new Hertz stock could begin at $13.80, valuing it at $6.5 billion based on about 472 million shares outstanding. There is also $1.5 billion of preferred stock held by Apollo.
Assume no net debt and Hertz is valued at about nine times projected 2023 earnings before interest, taxes, depreciation, and amortization, or Ebitda, of $859 million. This projection was made by Hertz management in April and could prove conservative given the strong industry trends.
Many investors are confused by the package of securities that Hertz holders will get. As noted, holders will get $1.53 a share in cash, new stock, and warrants for each current Hertz share. The stock portion could be worth about $1.25 for a current Hertz share, based on the estimated issuance to Hertz holders of 14 million new shares, or nearly one-10th of a new share for each current Hertz share.
Current Hertz holders are expected to get nearly two-thirds of a warrant for each share with a strike price of $6.5 billion of new equity value, or $13.80 a share based on the new stock. The warrant is expected to account for the bulk of the package value.
The warrants are tricky to value. Their maturity of 30 yearsmost warrants mature in less than 10 yearsmakes them valuable. Based on option pricing models, each could trade around $8, assuming a stock price of $14, meaning that holders would get roughly $5 in warrant value.
Using these assumptions, the package of cash, stock, and warrants could be worth about $8 per current Hertz share: $1.53 a share in cash, $1.25 in stock, and $5 of warrantsa premium to the current stock price. If new Hertz gains, there would be additional upside. The risk is a lower price on the new stock and warrants.
The biggest risk that investors face is if the industrys discipline crumbles when the car shortage eases. Yet Hertz and Avis cut their fleets in the pandemic and have been slow to rebuild them as auto makers prioritize sales of vehicles to dealers. Hertzs U.S. fleet stood at 292,000 on March 31, down from 519,000 a year earlier.
One potential spark for Hertz would be a deal to sell cars to a large used-car retailer. There has been talk about a possible deal between Hertz and Carvana (CVNA), which would help Hertz on used-car sales and give Carvana a regular supply of vehicles. Carvana and Hertz did not respond to requests for comment.
Like its old ad slogan, Hertz puts investors in the drivers seat in a rapidly improving industry.
Write to Andrew Bary at andrew.bary@barrons.com
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The Third Circuit Seeks to Clarify Sovereign Immunity in Bankruptcy – JD Supra
Posted: at 4:07 am
The application of sovereign immunity principles in bankruptcy cases has vexed the courts for decades. The U.S. Supreme Courts opinions on the matter have not helped much. Although they have addressed the issue in specific contexts, they have not established clear guidelines that the lower courts may apply more generally. The Third Circuit took a crack at clarifying this muddy but important area of the law in the case of Venoco LLC (with its affiliated debtors, the Debtors).
Background
The Debtors operated off-shore and on-shore drilling operations. As a result of environmental issues, they abandoned certain of their off-shore operations. Invoking its police powers, the California Land Commission (the Commission) ultimately took over the relevant off-shore facility at issue in the case.
After a chapter 11 plan was confirmed, the liquidating trustee (the Trustee) sued the Commission and the State of California (together California) for inverse condemnation in taking over the off-shore facility, seeking just compensation for its value. California moved to dismiss based on sovereign immunity. The bankruptcy court denied the motion and the district court affirmed.
Sovereign Immunity Prior to Katz
In Central Virginia Community College v. Katz, 546 U.S. 356 (2006), the Supreme Court held that, by ratifying the Constitution, the States waived their sovereign immunity with respect to matters characteristically fundamental to the administration of the bankruptcy process, particularly those that implicate the bankruptcy courts exercise of its in rem jurisdiction over the estate, the status of the debtor, and distributions to creditors. What has proven hard to quantify is exactly what that includes. Katz itself involved a preference action, so that much is certain. But what else?
Prior to Katz, courts in bankruptcy cases focused their sovereign immunity analysis on the meaning and proper scope of section 106 of the Bankruptcy Code. Section 106 purports to abrogate sovereign immunity in bankruptcy cases with respect to matters identified in the section. Granting certiorari in Tennessee Student Assistance Corp. v. Hood, 541 U.S. 440 (2004) to review a circuit split on the constitutionality of section 106, the Supreme Court essentially ducked the issue. It determined that it did not have to decide the constitutionality of the provision because, at least with respect to disputes regarding the debtors discharge, principles of sovereign immunity simply did not apply. The Court reasoned that such matters involved the in rem status of the debtor, rather than a claim against a state entity, and so fall outside the scope of the Eleventh Amendment.
Third Circuits Framework for Applying Katz
Katz did not define with precision the kinds of proceedings or issues that may be resolved in bankruptcy without violating principles of sovereign immunity. According to the Third Circuit in Venoco, however, the relevant types may be described functionally: those involving (i) exercise of exclusive jurisdiction over property of the estate, (ii) equitable distribution among creditors and (iii) the discharge of debts enabling a debtor to obtain a fresh start.
This framework requires courts to examine the function of the proceeding to determine whether a particular matter is exempt from sovereign immunity concerns. The first category concerns proceedings that affect property of the debtor or the estate, i.e., affect the res. Applying this part of the analysis, courts have found that states lack sovereign immunity in turnover actions, preference and fraudulent transfer matters, and contract disputes.
The second category involves matters that bear on the equitable distribution of the estate to creditors. Courts have held that violations of the automatic stay impact this function.
The third category simply encompasses the Courts analysis in Hood, determining that States are bound by the bankruptcy discharge, whether or not they chose to participate in the bankruptcy case.
Application of the Framework
Applying the foregoing framework to the Trustees inverse condemnation claim, the Third Circuit found that it implicated two of the three relevant functions. First, it involved property of the estate the off-shore facility at issue and the estates rights therein. While the Trustee sought a money judgement for the value of the facility, the form of judgement is not controlling; it is the substance that counts.
Second, the claim implicated the equitable distribution of the Debtors property. In support of its analysis, the Third Circuit cited references in prior proceedings in the bankruptcy court in which the parties acknowledged the significant value of the off-shore facility. And it noted that California filed a large claim in the bankruptcy case. If California were allowed to recover on its claim but avoid scrutiny over its actions regarding property of the estate, it would improve its position versus other creditors, thus impacting equitable distribution.
Finally, the Court rejected Californias argument that the bankruptcy courts in rem jurisdiction ended on the effective date of the Debtors chapter 11 plan on the theory that the relevant res ceased to be property of the estate at that time. The Court held that the bankruptcy courts in rem jurisdiction did not end on the plans effective date because the trust remained in existence and its primary function was to facilitate the equitable distribution of the value of the estates property to creditors.
California State Law Immunity Rejected as well
As a backup to its Eleventh Amendment claim, California also attempted to assert sovereign immunity under its own state constitution. The Third Circuit rejected this theory on two basic grounds. First, it rejected the argument because it has not been raised in the bankruptcy court and was therefore waived. Second, the Third Circuit observed that, because California was not immune from suit in its own courts, the issue was not one of immunity, but of forum selection.
Conclusion
The Third Circuits opinion in Venoco helps illuminate the rather murky area of sovereign immunity in bankruptcy proceedings. Whether it is adopted by courts outside of the Third Circuit, and whether the Supreme Court ultimately endorses its approach, remain to be seen.
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Kabir Bedi reflects on his ‘bankruptcy’ in Hollywood, says it was ‘very humiliating’ – Hindustan Times
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Actor Kabir Bedi, reflecting on a 'traumatic' chapter in his life when he went bankrupt, has said that it was 'very humiliating'. The actor recently released his autobiography, titled Stories I Must Tell: The Emotional Journey of an Actor.
In the book, Kabir Bedi writes about his youth, his career in journalism, and his subsequent move to the film industry. Kabir also worked in Hollywood and saw the greatest professional success as a star in Europe, particularly Italy.
In an interview with Brut India, he was asked if his spirituality gave him the strength to overcome life's difficulties. He said, "I went through traumatic experiences with my son's suicide, with my bankruptcy in Hollywood. It's very humiliating for a celebrity to be bankrupted. But you have to find ways of rising, and resurrecting yourself."
He continued, "All through my life, I've reinvented myself. A lot of the meditation I learned in my you, a lot of the spiritual underpinnings my parents gave me through their remarkable traditions of Sikhism and Buddhism, and my own inner sense of self gave me the strength to say, 'no, I will fight back'."
During his Hollywood years, Kabir appeared in The Bold and the Beautiful, one of the most-watched shows in the world. He also appeared in Dynasty, Murder, She Wrote, Magnum, PI, Hunter, Knight Rider and Highlander: The Series.
Some of the most difficult subjects that Kabir wrote about in his book include the death of his son Siddharth to suicide, and his relationship with actor Parveen Babi, who suffered mental illnesses herself.
Also read: Kabir Bedi reveals how he ended open marriage with Protima Gupta to be with Parveen Babi: 'She burst out crying'
Parveen died in 2005 after suffering a multiple organ failure. Writing about her death, Kabir wrote, "In the end, I learned how Parveen had died. Her body was found in her Juhu flat four days after she died, a leg rotted by gangrene, a wheelchair by her bed. A lonely and tragic end of a star who had once been the fantasy of millions. Three men who had known and loved her Mahesh, Danny and I came for her funeral at the Muslim cemetery in Juhu. It was a solemn burial with Islamic rites and chants. We carried her body with relatives to a dimly lit grave. I felt for all she had suffered with a sorrow that came from my depths. Each of us had known her in ways not many knew. Each of us had loved her as only each one knew."
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