90 Second Lessons
90 Second Lesson: Secured Creditors and Toll Charges
QUESTION: An investment banker recently wrote in, saying this: “I am currently helping a troubled company sell itself. The proposed buyer wants to buy its assets through a 363 sale in Chapter 11 and is offering to pay the full amount the bank is owed on its secured debt. The bank is pushing back, trying […]
90 Second Lesson: I’ve been asked to sign an involuntary bankruptcy petition. Should I?
QUESTION: The credit manager of an Akron-based company wrote, asking this: “One of our commercial accounts is pretty far behind in paying on our invoices. Another vendor approached me and asked me to join in signing an involuntary bankruptcy petition. Is there any legal risk in doing this? ANSWER: In a word, yes. If an […]
90 Second Lesson: To Stalk or Not to Stalk? Why be a Stalking Horse Bidder?
QUESTION: Jamie S. emailed recently, asking “Can you please sum up the pros and cons of serving as the “stalking horse” in a bankruptcy sale? ANSWER: Yes, Jamie, we can. A stalking horse bidder plays an important role in many bankruptcy acquisitions, and one of the most important decisions confronting a purchaser in a bankruptcy acquisition […]
90 Second Lesson: When To Request Relief From the Automatic Stay
QUESTION: How do I know if I should request relief from a debtor’s automatic stay? Learn the answer in 90 seconds or less.
90 Second Lesson: First Step When Purchasing a Distressed Business
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: What is the first integral decision a potential purchaser of a distressed business must make? ANSWER: Assuming that the seller has not already […]
90 Second Lesson: Personal Liability for Unpaid Taxes in Insolvency Cases
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: Who can be liable for a chapter 11 debtor’s unpaid taxes? ANSWER: One or more persons, including a fiduciary, may be subject to […]
90 Second Lesson: What is the Difference Between Recharacterization and Equitable Subordination?
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: Jeff P. from Los Angeles emailed asking us to explain the interplay between recharacterization and equitable subordination? ANSWER: While recharacterization and equitable subordination […]
90 Second Lesson: How is a General Carve-Out Different than a Professional Fee Carve-Out?
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: Last month we explained what a professional fee carve-out is. That caused a few readers to email and ask: how does a fee carve-out […]
90 Second Lesson: Credit Bidding in Plan Sales
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: A private equity investor wrote in recently asking us to address credit bidding in the aftermath of Radlax. ANSWER: Thanks to the 2012 […]
90 Second Lesson: California Receiverships
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: Jeffrey B. asks: where is a good starting place to understand California receiverships? ANSWER: The California receivership statutory scheme, encompassed in California Code […]