90 Second Lessons
90 Second Lessons: Working for a Struggling Business: Can this Car Be Turned Around?
Editor’s Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to [email protected] and we will try to answer it. Question Howard S. writes, I work for a company that is struggling and I’ve been offered a position at a competitor. I’d like to stay, but […]
90 Second Lessons: Nothing in Life is Certain but Death and Taxes: Cancellation of Debt Income
Editor’s Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to [email protected] and we will try to answer it. Question Robin T. wrote in asking, I own a small retail chain that has been struggling. I hired a lawyer to negotiate with my creditors, and […]
90 Second Lessons: Virgin Lender, Virgin Land: When the Collateral is Dirt
Editor’s Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to [email protected] and we will try to answer it. Question Tom S. wrote in asking, I am a hard money lender and have loaned on all sorts of collateral, but I’ve never loaned on raw […]
90 Second Lessons: The Mindset of a Real Estate Workout Lender
Editor’s Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to [email protected] and we will try to answer it. Question Russell S. wrote in asking, “I have a real estate portfolio that consists of several commercial buildings, and my loans are badly in default. My […]
90 Second Lesson: What is a UCC Article 9 Sale?
An Introduction to UCC Article 9 Question: What is it? 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: It’s a Creditor’s Remedy to Enforce […]
90 Second Lesson: Stalking Horse Bid, Yay or Neigh?
The Pros and Cons of a Stalking Horse Bid Question: Why Be A Stalking Horse Bidder? A stalking horse bid is an initial bid on a distressed company’s assets made by an interested party that the bankrupt company (debtor) chooses to participate in a 363 sale. The stalking horse bidder agrees to purchase the specific […]
90 Second Lesson: Is a Business Turnaround Still Possible?
How to Know When It’s Too Late for a Distressed Company [Editors’ Note: This lesson is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to [email protected] and we will try to answer it.] Question Depending on the extent of a company’s financial and management woes, […]
90 Second Lesson: What is an Exchange Offer?
Why a Distressed Company May Make an Exchange Offer During Financial Restructuring Question Fred T. asks: “I own securities of a company and heard on the news that [the company] is contemplating doing an ‘exchange offer’. What is an exchange offer?” In this quick lesson, we will discuss distressed exchange offers. Answer An exchange offer […]
90 Second Lesson: The (Arguable) Right to Credit Bid in Plan Sales
Understanding the Right to Credit Bid After Radlax [Editor’s Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to [email protected] and we will try to answer it.] Question A private equity investor wrote in recently asking us to address credit bidding in the […]
90 Second Lesson: First Step Before Buying a Distressed Business
How Types of Sales Affect the Purchase of a Distressed Business Editor’s Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to [email protected] and we will try to answer it. Question What is the first integral decision a buyer must make […]