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About The DailyDAC Editors

The DailyDAC Editors

The editors and editorial board of DailyDAC include preeminent restructuring and insolvency professionals, journalists, and editors. They are devoted to providing reliable and plain English education and deal intelligence about assignments, corporate bankruptcy, receiverships, out-of-court workouts an similar topics.

Articles by The DailyDAC Editors

90 Second Lesson: What will your lender do if you default on a commercial loan?

Editors’ Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to info@dailydac.com and we will try to answer it. QUESTION: Scott T,  emailed, asking, “I have a client who owns a few income-producing properties and she thinks she may not be able to […]

90 Second Lesson: What is an “Exchange Offer?”

Editors’ Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to info@dailydac.com and we will try to answer it. QUESTION: Fred T. emailed, asking, “I own securities of a company and heard on the news that it is contemplating doing an “exchange offer.” […]

RECOMMENDED READING: Assignments for the Benefit of Creditors: An Overview With a California Flavor

In “Assignments for the Benefit of Creditors: Simple as ABC?” Robert L. Eisenbach III provides a brief and clear summary of ABC procedures, and illustrates the process usefully with a hypothetical scenario of a cash-negative company with insufficient money to fund further operations and no likely prospects for credit, and which has specific technology assets that a […]

RECOMMENDED READING: The Investor’s End Game in Chapter 11

In “Restructurings and Distressed Investing,”[1] James Inness and John Houghton of Latham & Watkins explain that an investor’s return depends upon the debtor making appropriate operational, financial and corporate alterations – of course – but also upon the investor conserving its power to effect such changes (usually in concert with other constituents) according to a realistic […]

RECOMMENDED READING: Executory Contracts that Cannot Be Assumed and Assigned Because Counterparty Cannot be Compelled to Accept Performance From an Assignee

A debtor has the power to assume and assign executory contracts even when those contracts expressly bar such assumption and assignment (see section 365(f) of the Bankruptcy Code).  Thus, the debtor may sell its interests under a contract over its counterparty’s objection.  This power may be very beneficial to a debtor in possession (and its creditors) […]

Highlights from iGlobal Forum’s 6th Global Distressed Debt Investing Summit

iGlobal’s annual Global Distressed Debt Investing Summit, held yesterday, lived up to its reputation as a venue to hear the latest thought leadership about distressed debt investing. The day opened with a keynote by Perry Mandarino (PWC) and then moved right into Mandarino’s interview of Bruce Richards (Marathon Asset Management). One takeaway: Richards predicted that […]

LLC Membership Interests in Chapter 11 – Can They be Sold Over Other Members’ Objections?

When a chapter 11 debtor holds a membership interest in an LLC, it may be permissible for them to sell their membership interest in the LLC—or even force the sale of the entire LLC–over the objections of one or more other members. Or not. At the crux of the debate in various bankruptcy courts is […]

Aereo, Inc.: A Chapter 11 Debtor That is Not Broke

The word bankruptcy is derived from Italian banca rotta, meaning “broken bench,” and may derive from the early modern Florentine custom of breaking a moneychanger’s bench to signify his insolvency and cease his operations.  Yet, as we explained earlier this year, a chapter 11 debtor need not be broke.  We summarized the law as follows: […]

RECOMMENDED READING: Tell the Tax Man How It Will Be – A Primer on Federal Tax Liens

In his article,“Secured Lender Primes Earlier Federal Tax Lien in Fourth Circuit Split Decision,” Michael L. Cook of Schulte Roth & Zabel presents a learned and immediately useful nutshell account of how federal tax liens work — in itself a major service to non-specialist legal and financial professionals.  Having provided that understanding, Cook shows how […]

Can North Riverside, Illinois Pull a Detroit?

North Riverside, Illinois, like many municipalities in Illinois (and the state itself), is beset by burgeoning public employee pension fund liabilities.  The village of about 6,672 souls faces an operating budget deficit of $1.9 million, with $1.8 million due to fire department pension obligations (annual required payments have septupled over the past ten years).  Most […]