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Most Recent Articles About Restructuring, Insolvency & Vulture Investing:

90 Second Lesson: If I File a Chapter 7 Bankruptcy, Are the Assets of My Single-Member LLC Safe From the Trustee?By The DailyDAC Editors • 05/24/2019
QUESTION: A small business owner emailed us, on behalf of a friend, to ask whether assets in a single-member LLC could be used by a Chapter 7 Trustee in the LLC member’s personal bankruptcy case to satisfy creditors’ claims against[...]
Fancy Filing: Can They File a Chapter 11 Bankruptcy Case Just to Gain a Litigation Advantage?By The DailyDAC Editors • 05/16/2019
The Answer Is: It Depends Debtors often use bankruptcy filing to gain an advantage in litigation. Whether or not they succeed depends on the facts and circumstances of the bankruptcy case. Let’s look at a sample case to determine how[...]
What Happens in the BVI, Doesn’t Stay In The BVI – Clawbacks of Fraudulent TransfersBy Patrick Fitzmaurice • 05/10/2019
How Far Can the Trustee Reach? It is common practice that Trustees will seek to recover or “clawback” fraudulent transfers made prior to the commencement of a Chapter 11 bankruptcy case. But what happens when all transfers by the debtor[...]
Section 363 Sale: Free and Clear of Claims That Are Backed By Strong Public PoliciesBy The DailyDAC Editors • 05/03/2019
Under Section 363(f) Free and Clear Means Free and Clear: A Case Study Bankruptcy sales of assets under section 363(f) can bring more cash into the estate in part because the purchaser takes the assets “free and clear” of the[...]
90 Second Lesson: Can my borrower file for bankruptcy just to keep me from foreclosing?By The DailyDAC Editors • 04/29/2019
  QUESTION: An exasperated loan officer emailed us, asking whether the borrower – a commercial real estate lessor – could really file a chapter 11 case just to evade a state court order to appoint a receiver in a foreclosure[...]
The Road to an Assignment for the Benefit of Creditors (ABC): A Case StudyBy Howard Korenthal • 04/25/2019
This detailed story illustrates how a troubled company considered its duties and its options, then executed a strategy using an Assignment for the Benefit of Creditors (“ABC”) to mitigate successfully its potential losses. This story puts meat onto more skeletal[...]
90 Second Lesson: Secured Creditors and Toll ChargesBy The DailyDAC Editors • 04/16/2019
  QUESTION: An investment banker recently wrote in, saying this:  “I am currently helping a troubled company sell itself.  The proposed buyer wants to buy its assets through a 363 sale in Chapter 11 and is offering to pay the[...]
Chapter 11 Debtor’s Reporting ObligationsBy Richard E. Mikels • 04/11/2019
Reporting Requirements Make the Debtor More Transparent One of the  central principles of bankruptcy is that a debtor should have the benefit of a “fresh start.” However, to accord such relief, the Bankruptcy Code, Bankruptcy Rules, and case law require[...]
Not Necessarily Free and Clear I: Purchasing Real Estate Property in a Section 363 SaleBy The DailyDAC Editors • 03/28/2019
Just Because A 363 Sale Says Free and Clear, Does Not Mean It Is Free and Clear A bankruptcy debtor is offering commercial property in a section 363 sale. It is an attractive property and Lou is considering purchasing it.[...]
File Early and Often: Filing and Amending Claims in a Bankruptcy CaseBy Michael Schwarzmann • 03/20/2019
A Primer for Those Holding Bankruptcy Claims Against a Debtor Bankruptcy claims do more than simply determine the amount of money a creditor is owed or can receive as a distribution. Claims also can generate clout. Clout enables a creditor[...]
90 Second Lesson: What is a “UCC Article 9” Sale?By The DailyDAC Editors • 03/15/2019
QUESTION: Jack B. emailed, asking, “Please explain what an Article 9 sale is. My lawyer said that if I give a security interest to a lender, it can do an Article 9 sale.  What is an Article 9 sale?” ANSWER:[...]
Location, Location, Location – Where to File BankruptcyBy Lawrence V. Gelber • 03/13/2019
The Hows and Whys of Which Bankruptcy Venue to Choose Are you confused where to file bankruptcy? Do you wonder why you should file a bankruptcy case here instead of there? An entity, and more so a group of entities,[...]
When Your Customer Files for BankruptcyBy Michael A. Brandess • 03/06/2019
You Still Have Options In the Event of a Customer Bankruptcy When a customer files for bankruptcy, vendors with debts owed by the customer/debtor that arose before the commencement of the case (the “Petition Date”) can be exposed to considerable[...]
90 Second Lesson: I’ve been asked to sign an involuntary bankruptcy petition. Should I?By The DailyDAC Editors • 03/04/2019
QUESTION: The credit manager of an Akron-based company wrote, asking this: “One of our commercial accounts is pretty far behind in paying on our invoices. Another vendor approached me and asked me to join in signing an involuntary bankruptcy petition.[...]
A Chapter 11 Debtor Need Not Be BrokeBy Renee Fensin • 02/27/2019
A Solvent Debtor Is Not an Oxymoron Suppose that your borrower or customer files a chapter 11 case.[i] You do not like this because you’ll almost certainly not collect the full amount owed to you and to get anything you’ll[...]
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