Determining Whether or Not to Seek Court Approval of a Sale in a Delaware Assignment for the Benefit of Creditors Case

In a Delaware assignment for the benefit of creditors case, court approval is not required for a sale, but, time, money, and preference can factor.

Can an Executive Exert Control of Corporate Attorney-Client Privilege?

Does Corporate Counsel Represent the Executive or the Company? The F-Squared Investments Bankruptcy is a Warning for Executives [Editor’s Note: Russell C. Silberglied ([email protected]) is a director of Richards, Layton & Finger, P.A. The views expressed in this article are those of the author and not necessarily those of Richards, Layton & Finger or its clients. Mr. Silberglied and RL&F represented F-Squared in its chapter 11 case, but were not counsel of record in the SEC action described in this article.]   What exactly does it mean when a company’s […]

When are Goods ‘Received by the Debtor’ for Purposes of a Section 503(b)(9) Administrative Expense Claim?

Two Decisions that Clarify “Receipt” of Goods in Administrative Expense Claims   Section 503(b)(9) of the Bankruptcy Code1 allows a creditor an administrative expense claim (i.e., a claim with payment priority over other pre-bankruptcy claims) for the value of goods that the debtor “received” within 20 days before filing for bankruptcy. But what precisely does “received” mean in this context?  Suppose the parties agree that shipments will be free on board (“FOB”) at the origin, or the shipping point. Then, the buyer files for bankruptcy. Does the seller have an […]

Claims Trading of Notes of a Debtor Might Become More Difficult After Woodbridge

When a debtor files for Chapter 11 or Chapter 7 bankruptcy, often a creditor’s only remedy is to wait for a sale or reorganization, the claims resolution process and other actions to be taken before the debtor or trustee can make distribution on the claim.