Alternatives to Business Bankruptcy
90 Second Lesson: Bankruptcy vs Receivership
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.
Update To: Missouri’s New Receivership Statute
David Warfield published an article on Missouri’s new receivership statute on Commercial Bankruptcy Alternatives in August, 2016. Warfield characterized the new receivership statute as “modernized,” specifically pointing to concepts imported from bankruptcy law, including: the automatic stay, stay, abandonment of property, ability to incur debt, assumption and rejection of executory contracts and unexpired leases, the […]
Missouri’s New Receivership Statute
Missouri has joined the ranks of those states that have modernized their receivership statutes. The Missouri Commercial Receivership Act (“MCRA”) becomes effective on August 29, 2016. Codified in Chapter 515 of the Missouri Revised Statutes, the MCRA recognizes the increasing importance of non-bankruptcy solutions to the problems caused by distressed businesses. The new statute will […]
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 […]
An Introduction to Receiverships
American state and federal courts have the equitable power to take custody of property at issue in a legal dispute and to appoint a receiver to act as agent for the court in keeping, managing, and even selling the property, in order to protect the interests of those parties with a claim on such property. […]
90 Second Lesson: Is Bankruptcy Needed if Creditors Will Just Agree to Take Less?
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.
90 Second Lesson: What is an “Exchange Offer?”
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: Fred T. emailed, asking, “I own securities of a company and heard on the news that it is contemplating doing an “exchange offer.” […]
Golf is a Crazy Game: Stanford International Ponzi Scheme
On March 11, 2015, the Fifth Circuit Court of Appeals, in Ralph Janvey, as Receiver for Stanford International Bank Limited, et al., v. The Golf Channel Incorporated, Case No. 13-11305, issued a stomach curdling decision requiring The Golf Channel (“Golf Channel”) to return nearly $6 million to the Receiver for Stanford International Bank, Limited (“Stanford”), […]
RECOMMENDED READING: Assignments for the Benefit of Creditors: An Overview With a California Flavor
In “Assignments for the Benefit of Creditors: Simple as ABC?” Robert L. Eisenbach III provides a brief and clear summary of ABC procedures, and illustrates the process usefully with a hypothetical scenario of a cash-negative company with insufficient money to fund further operations and no likely prospects for credit, and which has specific technology assets that a […]
The Road to an Assignment for the Benefit of Creditors (ABC): A Case Study
This detailed story illustrates how a troubled company considered its duties and its options, then executed a strategy using an Assignment for the Benefit of Creditors (“ABC”) to mitigate successfully its potential losses. This story puts meat onto more skeletal discussions of ABC rules and how they compare with competing resolution structures under the Bankruptcy […]