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Basics for Beginners
A written tour of business bankruptcy and its alternatives. This is the latest in the series, Dealing with Distress for Fun & Profit, which you can read from the beginning if you like1. Our last installment focused on the basics of confirming a plan. In this installment, our fearless authors drill down into the various ways of confirming a plan with respect to individual classes of creditors.
A written tour of business bankruptcy and its alternatives. This is the latest in the series, Dealing with Distress for Fun & Profit, which you can read from the beginning if you like. In this bat-installment, we turn to what is, theoretically, one of the most important parts of any chapter 11 case: confirming a chapter 11 plan. Chapter 11 Plans Are Not Always in the Cards Notice our use of the word “theoretically” above? That is because in many chapter 11 cases there never is a plan. Some cases […]
There is a seeming irony here in that a company that files for bankruptcy often does not have the cash to do so. That’s where DIP financing comes in.
This series was started with a broad overview of business bankruptcy, but our last few installments have focused on: unsecured creditors the priority scheme in bankruptcy protecting/collecting your claim In this installment, we draw on our discussion of the priority scheme, with a special focus on super and residual priorities. As previously discussed, not all claims are treated the same. At its foundation, claims can be divided into two general buckets—secured and unsecured. If there is collateral securing the claim, it is secured. If not, it’s unsecured. However, Congress decided […]
This series was started (click here to read from the beginning) with a broad overview of business bankruptcy but our last few installments have focused on unsecured creditors (click here to read about unsecured creditors) and the priority scheme in bankruptcy (click here for the 30,000-foot view or you can find more specific treatment here, here and here). In this installment, we move on to the nuts and bolts of filing, preserving and protecting your claim in bankruptcy. A. File Proof of Claims and Adhere to Bar Dates to Protect Your Claim Of all bankruptcy […]
A written tour of business bankruptcy and its alternatives. If you would like to read from the beginning, this series started here with a broad overview of business bankruptcy. Most recently, the series has focused on the automatic stay, where you can find the 30,000-foot view. Or you can find more specific treatment here, here and here. In this installment, we give a crash course from a particular perspective – the unsecured creditor. When a debtor files for bankruptcy, creditors hold different types of claims or interests against the debtor’s estate. Generally, […]
A written tour of business bankruptcy and its alternatives We started this series (click here to start reading from the beginning) with a broad overview of business bankruptcy but our last several installments have focused on one small, albeit important, aspect- the automatic stay. We’ve heard from a number of readers that they would like to read more about the proverbial forest, rather than just the automatic stay tree. And, so, with this installment we pan the camera back to explain a concept that is at play throughout a bankruptcy […]
A written tour of business bankruptcy and its alternatives Editors’ Note: If you are a regular reader of this column, you will know that this is the third installment in a row about the automatic stay (it is a big topic and we didn’t want to lay too much on you at once). If you’re growing bored of the topic, don’t despair, as our next installment will pan the camera back a bit and give you a flavor for how litigation in bankruptcy court works more generally. We’ll spend a […]
A written tour of business bankruptcy and its alternatives Our most recent installment in this series gives an overview of the automatic stay. In this installment we dive a little deeper, and we start with this question: how do you know when a contemplated action would violate the stay and, thus, require stay relief before the action is taken? Consider these examples: a plaintiff believes that its lawsuit relates wholly to post-petition conduct, but the debtor alleges that it is based on pre-petition events; a creditor believes that it is exercising […]
A written tour of business bankruptcy and its alternatives We discussed the automatic stay from the perspective of a secured creditor in Installment #9 of this series.This time we pan the camera back and look at the automatic stay from a broader and more general perspective. It is sometimes said that the two primary objectives of chapter 11 are to maximize the going-concern value of the bankruptcy estate and to assure equality of distribution among similarly situated creditors. The automatic stay furthers both of these goals. It preserves going-concern value […]