90 Second Lessons
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 […]
90 Second Lesson: Selling Collateral in a 363 Sale vs Article 9 Sale
Why a Secured Creditor May Push to Sell Collateral Outside of Bankruptcy Editors’ 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: An investment banker recently wrote in, saying: “I am currently […]
90 Second Lesson: What is the Difference Between Recharacterization and Equitable Subordination?
Discerning Similar Methods to Lower the Order of Priority of Creditors’ Claims [Editors’ 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: Jeff P. from Los Angeles asked us to explain the […]
90 Second Lesson: What Is a Composition Agreement?
How a Composition Agreement Can Be an Alternative to Chapter 11 QUESTION: John B asks: What is a composition agreement? ANSWER: A composition agreement is an out-of-court contract between a debtor and multiple creditors providing for the reduction or delay in payment of amounts owed by the debtor to the creditors entering into the […]
90 Second Lesson: Is Bankruptcy Needed if Creditors Will Just Agree to Take Less?
QUESTION: Murray D. emailed, recently: “I am a general corporate lawyer. One of my clients has been in business for 50 years. It has no bank debt but it owes its vendors about $2 million. He told me that most or all of his vendors are willing to work with him by writing some small […]