Insufficient liquidity shrinks the range of options for a financially distressed business. The metaphor of a melting ice cube is often used to illustrate the situation. When the cash runs out and the company is unable to pay its employees or vendors, the ice cube has melted. The business has failed, and recoverable value has collapsed.
Bankruptcy Valuation Valuation—the estimation of an entity’s worth—plays a crucial role in all stages of a commercial bankruptcy, as well in any out-of-court restructuring.¹ Valuation can be critical at the beginning of a bankruptcy case in determining whether the debtor[...]
NOTICE OF OPPORTUNITY TO SUBMIT HIGHER AND BETTER OFFERS AND NOTICE OF HEARING ON MOTION TO AUTHORIZE SALE OF REAL PROPERTY LOCATED AT 951-961 WEST THORNDALE AVENUE, BENSENVILLE, ILLINOIS 60106 Pon Group, LLC (the “Debtor”) hereby gives notice of the[...]
Chapter 7 Trustee Kimberly Husted announces the sale of the 100% of World of Good Tastes, Inc. Chapter 7 Trustee Kimberly Husted announces the December 12th auction 100% interest in World of Good Tastes, a corporation which owns the recipes,[...]
A company’s “capital structure” is the array of its liabilities and equity. Capital structure commonly consists of three main components: working capital (or operating debt), financing debt, and equity.
“The time to buy is when there’s blood in the streets.” - Baron Rothschild Don’t Panic, There Are Many Opportunities in Bankruptcy When a client or a competitor files for bankruptcy, it is natural to reflect on the downside. What’s[...]
R. Wayne Klein, Receiver for National Note of Utah, LC and its affiliated entities (the “Receiver”) in the civil case styled as Securities and Exchange Comm. v. National Note of Utah, LC et al., Civ. Case No. 2:12-cv-00591 (D. Utah)[...]
Home Owners Bargain Outlet: Section 363 Bankruptcy Asset Sale Opportunity Prior to filing Chapter 11 on October 25th Home Owner's Bargain Outlet ("HOBO") was a leading regional home improvement bargain retailer of “special buys” (goods that come from opportunistic purchases[...]
NAFER (the National Association of Federal Equity Receivers) held another wisdom-rich conference in October, this time at the Drake Hotel in Chicago. It was the seventh annual event and attracted 200 attendees. The conference included the Training Camp as well[...]
NOTICE OF DISPOSITION OF COLLATERAL UMB Bank, National Association (“Collateral Agent”), as collateral agent for lenders Pine River Master Fund Ltd. and Pine River Fixed Income Master Fund Ltd. (collectively, “Lenders”), hereby gives notice that Amur Finance IV LLC (“Debtor”)[...]
Editor’s Note: This is an updated version of an article published in May of 2013. If you are a vendor, service provider or another unsecured creditor to a chapter 11 debtor, you cannot be blamed for feeling like a duped[...]
Chapter 11 bankruptcies find the debtor generally to be insolvent, but not always. Occasionally, a debtor will emerge from the bankruptcy process as a solvent entity, and in those situations, Bankruptcy Code §726(a)(5) may entitle creditors of the debtor’s estate[...]
Notice of Bankruptcy Auction of 1212 75th St., Downers Grove, Illinois BACKGROUND Executive Summary. Bankruptcy auction of 76,850 square foot retail building on approximately 9.69 acres, commonly known as 1212 75th St., Downers Grove, Illinois (the “Property”), on November 14,[...]
The Life, Death and Many Reincarnations of Penthouse Magazine Penthouse International, publisher of Penthouse Magazine, sold for $11.2 million in June. The company was worth about $700 million (adjusted for inflation) at its height. The latest Penthouse Magazine bankruptcy highlights just[...]
The relationship between a lender and borrower can be complex. The borrower wants capital to run and grow its business and the lenders want to earn a return and eventually get its principal back. If the borrower complies with the[...]
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