What is a bankruptcy venue? A debtor should be considerate when selecting a venue to file for bankruptcy and know which eligible venues are best to file in.
A creditor may seek appointment of a chapter 11 trustee in replacement of the debtor in possession, but there are special considerations to make first.
Investing in bankruptcy claims can be very profitable or can result in a significant, or even total, loss. Bankruptcy claims are a creditor’s right to payment from a debtor. A bankruptcy claim can be secured by the debtor’s property or can be unsecured. Claims are classified in chapter 11 plans of reorganization according to their […]
In part one of our series on recharacterization, we discussed the elements of judicial recharacterization of loans as equity interests.[i] In part two of the series, we considered how debtors can “claw back” putative “loans” that they may have repaid years earlier because the “loans” were in fact equity investments and their repayment was invalid.[ii] […]
In our last article[i], we discussed the judicial recharacterization of loans as equity interests. As we described, a court will recharacterize a lender’s debt claim as equity if it determines the “loan” actually was intended to be, and was treated by the parties as, an equity investment. Recharacterization is a powerful tool for creditors and […]