Most Recent Articles About Restructuring, Insolvency & Vulture Investing:
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.
Understand the ways in which distressed real estate is different from when an operating business in distress.
Understand what the "in pari delicto" defense is and how it can be used in a bankruptcy proceeding to protect yourself.
The statutes that dictate how to start and manage a receivership may differ depending on the state. One thing is for sure: Washington state a’int Minnesota.
There are a number of mistakes that can be made in documenting a commercial loan. Learn the top 12 mistakes to avoid.
Careless mistakes in UCC-3 terminations and continuations can lead to costly litigation with secured parties. Learn best practices for filing and recording.
Ordinary asset purchase? Article 9 sale? Bankruptcy acquisition? When buying a distressed business, the type of purchase should be top of mind.
State Court Receivership 101: Closing Out a Receivership
This is an important part of the receivership process. We’re focusing on four main points as a part of this discussion, planning ahead, termination vs discharge, final reporting, and a discharge order. Planning Ahead Always looking through your order and…
Although commonly used interchangeably, recharacterization and equitable subordination have different purposes and effects on order of priority of claims.