Most Recent Articles About Restructuring, Insolvency & Vulture Investing:
The Legal Requirements to Cram Down a Plan on Creditors By filing a Chapter 11 petition, the debtor seizes the initiative in proposing a reorganization plan, which is to provide how soon, in what amount, and in what manner creditors’…
Navigating an Extreme Environment as Chief Restructuring Officer The position of Chief Restructuring Officer (CRO) is not well defined or understood. This role does not have as much history as the more traditional positions such as CFO, CEO, or President. In…
Another State Eases Access to Banking Services Pending a Federal Solution On July 6, 2023, Missouri Governor Michael L. Parson signed into law Senate Bill 187 (S.B. 187), also known as the Commercial Financing Disclosure Act. This legislation continues the…
A Match Made in Heaven? At first blush, cannabis and a legal practice like receivership might seem an unlikely match. Medical and recreational cannabis has steadily grown in acceptance and legalization over the past decade in the United States. However,…
Special committees made up of independent directors can guide a company through the bankruptcy process without accusations of bias.
Advice for hard money lenders that have never loaned on raw land before. What special risks does raw land collateral pose to a lender?
The Chapter 11 debtor is subject to reporting obligations which provide parties with financial and business information about the debtor.
To understand California receiverships, it is best to look at the California Code of Civil Procedure to understand receiver appointment and powers.
Secured creditors and buyers of distressed assets don’t have to worry about courts limiting their credit bids, but one Delaware case is cause for concern.
What benefits creditors more? When considering federal court receivership vs. bankruptcy, bankruptcy is often more predictable, but costly.
Creditors looking to pursue a collections action should understand how Chapter 7 and Chapter 13 bankruptcy processes can affect efforts to collect.
Filing an involuntary bankruptcy petition is a powerful collection tool, but an involuntary petition can also come with fees and liability.
A court may recharacterize a creditor’s debt claim as an equity interest. This recharacterization often has a significant impact on creditor claims.
Knowing the collateral value of a secured claim is important. It will impact how the secured creditor is treated under the plan.
Learn how to read a balance sheet, or more importantly, how to read between the lines of the balance sheet assets, liabilities, and equity.
A composition agreement is an out of court agreement between the debtor and two or more creditors regarding payment arrangements on a debt.
Administrative expenses can qualify as priority claims for unsecured creditors. What are the 3 categories of expenses in chapter 11 bankruptcy cases?
When a seller of real property files for bankruptcy the purchaser has rights under the bankruptcy code and as an executory contract.
Subchapter V works. It saves businesses. It helps the people that own those businesses. And it is cheap and fast, at least compared to “traditional” chapter 11.
Do you know how much your business is worth? A business appraiser can give you an objective outsider's view and also venture an opinion on its trajectory.
In 2023, commercial Chapter 11 filings rose by 72% as compared to 2022. Read more about this surge and what to consider in 2024.
A property appraisal is useful in situations like buy/sell transactions, auctions, and liquidation sales. Learn the ins and outs, from process to pricing.
Investors may seek to purchase bankruptcy claims against a debtor as part of an investment strategy. What do they need to know before they invest?
The disposition of a debtor's LLC membership interest depends on the interpretation of the court, executory contract, or property rights.
Have you heard horror stories about parties who filed an improper involuntary bankruptcy petition? Don't worry, the risks aren't as high as you think.
Chapter 15 of the Bankruptcy Code deals with foreign debtors with assets in the United States. It allows for disposition of the property.
Don’t expect to challenge a 363 sale so easily. Find out why you should pursue other options for purchasing assets from a distressed seller.
When a property owner falls behind on their loans, what are their options to receive loan forgiveness?
A debtor does not have to be insolvent to file for chapter 11 bankruptcy. Can its creditors pursue dismissal of a chapter 11 case?
Like a professional fee carve-out, secured creditors may also agree to a carve-out for unsecured creditors to appease the court and creditors’ committee.
When your borrower files bankruptcy, choosing to cooperate can lead to a more successful restructuring or sale. Here's how to protect yourself if you do.
A stalking horse bidder makes the first bid in an bankruptcy auction, setting the initial price and structure of the sale-- but there are some disadvantages.
If a customer files bankruptcy, vendors (trade creditors) should consider administrative priority, critical vendor status, and avoidance actions.
A distressed exchange offer allows a struggling company to purchase its outstanding debt securities by offering new securities rather than cash.
Who makes the top of the list in the order of priority? See where you fall based on the absolute priority rule.
When is a business turnaround no longer viable? Ask these questions to determine if you or your client’s business can be saved.
The absolute priority rule dictates which unsecured creditors receive priority for their claims. But is it always absolute?
Why would a secured creditor prefer to sell its collateral outside of bankruptcy? Here’s how time, money, and control differ in a 363 sale vs Article 9 sale.
Lender-on-lender violence has been noted more in recent news, and have been increasingly used in out-of-court restructurings in recent years including during the COVID-19 pandemic.
A distressed business has a multitude of options to explore. Understand how Bankruptcy Code Section 363 works during a business bankruptcy.