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In re Melillo, 385 B.R. 476, 481-82 (Bankr. D. Mass. 2008) (Hillman) (Failure to object to balloon payment of arrearages is not consent to treatment that is inconsistent with § 1325(a)(5)(B)(iii)(l). “I cannot infer a secured creditor’s consent to treatment which is expressly prohibited by the Bankruptcy Code from a lack of an objection because ‘it has a reasonable expectation that I will not approve treatment which violates the Bankruptcy Code.’ Here, graduated payments and backloaded balloon payments in plans are exactly the proposed treatment Congress sought to prohibit.”).

In re Bethoney, 384 B.R. 24, 34 (Bankr. D. Mass. 2008) (Hillman) (Failure to object to plan that bifurcates a 910-day PMSI car claim is not inferred acceptance of plan; court denies confirmation notwithstanding adequate notice and lack of objection from lienholder. Citing In re Montoya, 341 B.R. 41 (Bankr. D. Utah 2006), “I cannot infer Capital One’s consent to this treatment from the lack of objection because it has a reasonable expectation that I will not approve treatment which violates the Bankruptcy Code.”).
See Also:  Bankruptcy Lawyers Boston

FirstFed Financial Corp. filed for chapter 11 protection less than a month after its banking unit was shut down by federal regulators, Reuters reported yesterday. The company listed assets of $4.8 million and liabilities of $159.7 million in court papers filed on Wednesday. OneWest Bank, formerly failed mortgage lender IndyMac, bought 39 branches of FirstFed’s bank in December. In addition to assuming $4.5 billion in total deposits, OneWest, of Pasadena, Calif., agreed to buy essentially all of First Federal’s assets of $6.1 billion. The case is In re FirstFed Financial Corp., U.S. Bankruptcy Court, Central District Of California, No 10-10150.

See Also:  Bankruptcy Lawyers Boston

House Financial Services Committee Chairman Barney Frank (D-Mass.) said that he plans to propose legislation today that could force bond-rating companies to take a more positive stance toward state and municipal bonds, the Wall Street Journal reported today. The $2.5 trillion municipal-bond market is currently rated on a risk scale that is generally tougher than the one used for corporate bonds or national-government debt. Moody’s has found that investment-grade corporate bonds between 1970 and 2000 had a 10-year default rate of about 2.3 percent, far higher than the 0.03 percent default rate of investment-grade munis. Muni-bond issuers and politicians across the country have argued that the tougher ratings treatment is basically a hidden tax on cities, states and the public. Bond-rating firms, however, may argue that the bill comes too close to legislating their methodologies, something that Congress has been reluctant to do in the past.

Continental Airlines said yesterday that it had abandoned merger talks with United Airlines and was planning to remain an independent carrier, a blow to lengthy efforts by United to find a merger partner, the New York Times reported today. Continental’s move was a stunning development for United’s parent, UAL, which had been negotiating in expectation of reaching a deal by late this week. Continental decided to drop the discussions after UAL announced worse-than-expected earnings, which sent shares falling last week. On Tuesday, United said it lost $537 million during the first quarter, on sharply higher costs for jet fuel. The airline, which spent more than three years under bankruptcy protection earlier this decade, said it would cut flights and eliminate a further 1,000 jobs. Directors at Continental, who met Sunday afternoon, feared that a merger with United could put their company in peril.