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Notable Bankruptcies of 2008: Final Tally

Mon, 05 Jan 2009 23:35:00 GMT

In mid-August I predicted that “major” bankruptcies for 2008 would reach 225 (see Bankruptcies Revisited). Through October there had been 172 such bankruptcies, as reported by Bankrupctydata.com. That implied a pace of around 210 bankruptcies, well short of my prediction. At the time however, I suggested that the filing pace was likely to quicken in November and December as the economy deteriorated at a more rapid clip. Sure enough, the final numbers bear out my prediction. According to Bankruptcydata.com, “major” filings reached 231 in 2008. 231 bankruptcies falls far short of the 289 “major” bankruptcies in 2000 and 383 in 2001[More...]

Bankruptcies Revisited

Thu, 06 Nov 2008 04:34:00 GMT

In mid-August I predicted that bankruptcies for 2008 would reach 225 (see my post Bankruptcy Update). There had been 120 total bankruptcies at the time. The 120 bankruptcies as of August 15th implied a pace of about 195 bankruptcies, well shy of my prediction. But much has changed since mid-August, so let’s revisit that prediction. According to Bankrupctydata.com, there have been 172 bankruptcies through October. If we assume that bankruptcies continue to accumulate at 17 per month for the rest of the year (the monthly average), the implied total for 2008 would be 206. However, we know that the bankruptcy pace has quickened since August. In fact, since mid-August, bankruptcies have been averaging about 21 per month. If we use 21 per month instead[More...]

No Magic in the Monetary Policy Wand

Wed, 05 Dec 2007 15:56:00 GMT

Despite the fact that the Federal Reserve has likely done far more harm than good over the course of the past few decades, investors remain convinced that our nation's central bank has magical powers. That is one reason why equity investors, for instance, have remained steadfastly bullish despite the economic and financial earthquake that has been shaking the ground around them. Unfortunately, as Dr. John Hussman, president and principal shareholder of Hussman Econometrics Advisors, notes in "An Irrelevant Fed: Thimbles of Water in a Forest Fire," that confidence seems terribly misplaced. Pop Quiz How much “liquidity” has the Federal Reserve “pumped” into the $12.7 trillion U.S. banking system since March 2007? a) $1.2 trillion, which banks have used to firm up their balance sheets <[More...]

Brooke's Special Master Accused of Withholding Funds Improperly From Banks, Insurance Agents

Tue, 20 Jan 2009 07:53:00 GMT

Jan. 20--Contending that the special master for Brooke Corp. has improperly withheld $4.8 million from banks and insurance agents, The Bank of New York Mellon has asked a judge to intervene.
In court documents filed Friday, the bank alleged that investors in Brooke's notes and the insurance agents "are in a worse position today than they were in September 2008," when, at the bank's instigation, Albert Riederer was appointed special master to oversee Brooke's operations.
The bank wants U.S. District Judge John Lungstrum to compel Riederer to distribute incoming insurance sales commissions to investors who financed the purchase of Brooke loans and to Brooke agent-franchisees around the country.

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Brooke Corp. Founder Files for Personal Bankruptcy

Wed, 17 Dec 2008 23:49:00 GMT

Dec. 17--The founder of Brooke Corp., the bankrupt franchiser of insurance agencies, has filed for personal bankruptcy.
In an abbreviated Chapter 11 filing Tuesday in U.S. Bankruptcy Court in Wichita, Robert D. Orr didn't specify his assets or liabilities but checked off boxes listing estimated assets ranging between $100,000 and $500,000 and estimated liabilities ranging between $50 million and $100 million.
The filing included a list of Orr's 20 largest unsecured creditors, most of them banks.

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Riederer's Requests for Payment Opposed

Wed, 10 Dec 2008 20:10:00 GMT

Dec. 10--Fee requests submitted by Albert Riederer as the court-appointed special master for Brooke Corp. are being opposed by The Bank of New York Mellon as "sorely lacking" in detail.
Since his appointment as special master in mid-September, Riederer, a former Jackson County prosecutor and Missouri Court of Appeals judge, has essentially run Brooke and its affiliated companies.
Brooke and an affiliate filed for bankruptcy protection in October, and Riederer has been winding down the companies' operations.

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Bankrupt Insurance Firm Owes Money to 2 Wichita Banks

Fri, 07 Nov 2008 14:50:00 GMT

In the filing, Brooke listed assets of more than $512 million and debt of more than $447 million as of June 30.
The creditors list does not specify how much is owed to each creditor, nor for what.
Fidelity spokesman Al Sanchez said his bank is owed money on a loan to Brooke.

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Brooke Files for Chapter 11 Bankruptcy Protection

Wed, 29 Oct 2008 07:52:00 GMT

Oct. 29--After a tumultuous month in which it was sued by lenders and placed under the control of a court-appointed special master, Brooke Corp. sought Chapter 11 bankruptcy protection Tuesday.
The filing was not unexpected.
Brooke has been in a downward spiral for months, with lenders calling in their loans and Brooke's insurance franchisees complaining about not receiving commissions.

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Layoffs, Litigation Sting Brooke Corp.

Thu, 23 Oct 2008 07:50:00 GMT

Oct. 23--Troubled Brooke Corp. and its subsidiaries have run into additional trouble, with two more banks suing over unpaid loans and Brooke's special master firing 52 more employees.
The bank is seeking $34.13 million.
And on Monday, Citizens Bank & Trust Co. of Chillicothe, Mo., sued Brooke over a $9 million loan secured by stock in Brooke subsidiary First Life America Corp., a life insurance company based in Topeka.

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Hedge Fund Manager Plans to Redeem $39 Million in Brooke Investments

Fri, 03 Oct 2008 11:50:00 GMT

Oct. 3--Interests associated with a Dallas-based hedge fund manager have notified Brooke Corp. that they intend to redeem preferred stock and dividends in the Overland Park company worth $39 million.
In a regulatory filing Wednesday, Brooke said it had received the notice from an entity it identified only as "an accredited institutional investor" that acquired the preferred stock from Brooke in September 2006.
Filings from that period show that Brooke sold 20,000 shares of convertible preferred stock to HBK Master Fund LP, which is affiliated with HBK Investments, a large hedge fund manager with billions of dollars in investments.

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Finance Company Being Sued

Thu, 25 Sep 2008 19:51:00 GMT

Sep. 25--PHILLIPSBURG -- Brooke Corp., a banking and insurance company that recently moved its executive team from Overland Park to Phillipsburg, has been sued by a New York bank, which alleges Brooke misappropriated millions of dollars.
Brooke denies any wrongdoing and says that lawsuit is retaliation for its efforts to collect past due servicing fees.
Meanwhile, the owners of scores of Brooke franchises, such as Brooke Insurance and Financial Services, 2310 Planet, are watching the legal battle from the sidelines.

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Aleritas Loans Lead to a Mad Scramble

Sat, 13 Sep 2008 14:47:00 GMT

Sep. 13--Scores of banks from Maryland to Nevada and their regulators are scrambling to deal with loans that banks had purchased from an ailing affiliate of Overland Park-based Brooke Corp.
Several banks have stepped between Aleritas Capital Corp., formerly called Brooke Credit Corp., and the borrowers to ensure payments flow to the banks instead of the troubled Aleritas.
Aleritas had made loans primarily to insurance franchisees of Brooke Corp. and then sold stakes in those loans to the banks.

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Bank Sues Brooke Corp., Alleging 'Misappropriation of Millions'

Fri, 12 Sep 2008 07:53:00 GMT

Sep. 12--Accusing them of "misappropriation of millions of dollars," The Bank of New York Mellon has sued Brooke Corp. and its subsidiaries and asked for the appointment of a receiver.
The suit alleges that the Brooke companies and their principal, Robert D. Orr, diverted money that was supposed to be deposited in trust accounts to themselves and to an account at a bank they own -- Generations Bank, formerly Brooke Savings Bank, in Phillipsburg, Kan.
"The Brooke entities are in a rapidly deteriorating financial state and are facing a revolt by hundreds of their franchisees," the suit states.

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Brooke Corporation Reports Second Quarter 2008 Results

Mon, 18 Aug 2008 23:46:00 GMT

OVERLAND PARK, KS -- -- 08/18/08 -- Brooke Corporation today reported its second quarter financial results for the quarter ended June 30, 2008.[More...]

Updated Earnings Release and Conference Call Time -- Brooke Corporation to Report Second Quarter Results on August 18; Conference Call Scheduled for August 19

Tue, 12 Aug 2008 16:41:00 GMT

OVERLAND PARK, KS -- -- 08/12/08 -- Brooke Corporation announced it will report its second quarter 2008 earnings and other financial results following the close of the stock market on Monday, Aug. 18, 2008. A press release will be available online at that time at the company's Web site, www.brookebanker.com.[More...]

Brooke Corporation to Report Results for Second Quarter 2008

Mon, 11 Aug 2008 19:13:00 GMT

OVERLAND PARK, KS -- -- 08/11/08 -- Brooke Corporation announced it will report its second quarter 2008 earnings and other financial results following the close of the stock market on Thursday, Aug. 14, 2008. A press release will be available online at that time at the company's Web site, www.brookebanker.com.[More...]

Brooke Savings Bank Revives Generations Bank Trade Name

Fri, 08 Aug 2008 14:25:00 GMT

OVERLAND PARK, KS -- -- 08/08/08 -- Leland Orr, chairman and chief executive officer of Brooke Savings Bank, announced today that the bank's board of directors has approved changing the bank's name to Generations Bank, the bank's name as originally chartered. The board also approved renovation of a Phillips County historic landmark as the new headquarters of Generations Bank.[More...]

Brooke Corporation Updates Management Initiatives, Investment and Non Investment Activities and Initiatives to Increase Share Price

Mon, 21 Jul 2008 20:14:00 GMT

Brooke Corporation , announced today that, on July 15, 2008, it received a letter from the staff of The Nasdaq Stock Market requiring that the Company take steps to increase its per share price. The Nasdaq Stock Market requires that each listed company maintain a minimum $1.00 per share price as measured by the bid and closing price over a specified period of time. The letter does not result in a delisting of Brooke Corporation shares, and Nasdaq rules allow the Company until January 12, 2009 to accomplish the per share price increase. Brooke Corporation expects to comply by that date or any applicable extension thereof.[More...]

Brooke Savings Bank Announces Management Changes

Mon, 09 Jun 2008 21:38:00 GMT

Brooke Savings Bank, a wholly owned subsidiary of Brooke Corporation , announced the appointment of Leland G. Orr as chief executive officer and chairman of the board of Brooke Savings Bank. Orr replaces Gary Baugh, former president, chief executive officer and chairman of the board; Baugh recently retired.[More...]

Brooke Savings Bank Announces 2008 Year to Date Report

Thu, 29 May 2008 20:41:00 GMT

Brooke Savings Bank, a wholly owned subsidiary of Brooke Corporation , reported on its operating initiatives for 2008.[More...]

Brooke Capital Corporation Provides Update on Operating Initiatives

Wed, 28 May 2008 20:01:00 GMT

Brooke Capital Corporation provided an update on the operating initiatives announced on May 5, 2008, which are designed to realign operations to the current level of expected revenues in 2008. As previously announced, expense reductions have been required as the result of: 1) a reduction in the rate of monthly franchise royalty revenues charged to existing franchisees, which helps them better cope with the current economic uncertainties; and 2) the virtual elimination of initial franchise fee revenues, because loans are generally unavailable to new franchisees in the current uncertain credit environment.[More...]

/ CORRECTION - Brooke Corporation - May 27 2008 12:43AM

Thu, 22 May 2008 22:55:00 GMT

In the news release, 'Brooke Corporation Announces Capital and Investment Plans,' issued Wednesday, May 21, 2008, by Brooke Capital Corporation, we are advised by the company that the source should be 'Brooke Corporation.' Complete corrected text follows.[More...]

Brooke Corporation Announces Capital and Investment Plans - May 27 2008 1:00AM

Wed, 21 May 2008 17:21:00 GMT

Brooke Corporation announces its capital and investment plans. Brooke Corporation's operations focus on banking through Brooke Savings Bank. Brooke Corporation also holds investments in other companies, some of which it may sell or distribute to its shareholders so it can focus on banking. In addition to Brooke Savings Bank, Brooke Corporation currently owns:[More...]

Form 4 ORR LELAND G For: Oct 03 (10K)

Tue, 07 Oct 2008 18:18:00 GMT

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Form 4 BROOKE HOLDINGS INC For: Oct 03 (10K)

Tue, 07 Oct 2008 18:18:00 GMT

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