Business Bankruptcy

What are your options when handling your distressed business? Pursing an Assignment for the Benefit of Creditors is one of your options. The DailyDAC Editors offer reading recommendations to fill you in on the ABC process.

The borrower is an LLC managed by a greedy principal member. The borrower slowly pays the secured creditor and unsecured creditors over years and its business becomes insolvent. The insolvent LLC makes cash distributions to its members, but not to the secured creditors. Is there a law against this sort of behavior?

The Jevic case upheld the absolute priority rule, but it did not prohibit structured dismissals. How are structured dismissals affected post-Jevic?

A Series on the ABCs of ABCs, when it comes to claims there’s a plethora of them. From secured, to unsecured, to bankruptcy, and trade. Read all the basics in this installment of Dealing with Corporate Distress.

A creditor may seek appointment of a chapter 11 trustee in replacement of the debtor in possession, but there are special considerations to make first.

Examining the “Fiduciary for Hire” and the NRA’s Bad Faith Bankruptcy “When in doubt, mumble, when in trouble, delegate, when in charge, ponder.” – James H. Boren, When In Doubt, Mumble: A Bureaucrat’s Handbook (1972) Business entity debtors in chapter 11 cases come in all shapes and sizes, with varying degrees of integrity and competence in managing those entities. Debtor’s professionals, while arguably also fitting those parameters, must play the cards they are dealt—usually in financially urgent circumstances—and make real-time strategic decisions with real-world consequences. When questions arise as to […]

The ABCs of ABCs, Business Bankruptcy & Corporate Restructuring/Insolvency In this installment, we take you on a tour of the time leading up to the filing of a chapter 11 case and the days that immediately follow. Mostly, we’re referring to first day motions. Before we dive into first day motions, however, you should understand that a debtor and its professionals are typically doing many other things immediately before and after they file a chapter 11 petition. For example: Continuing to explore alternatives to chapter 11 Negotiating with various parties […]

The ABCs of ABCs, Business Bankruptcy, & Corporate Restructuring/Insolvency In Installment 5, we walked through the lifecycle of a hypothetical traditional chapter 11, and in Installment 6 we discussed key concepts you must comprehend in order to understand any chapter 11 case. Now we pull the camera back and turn our focus away from chapter 11 specifically, to look more broadly at the options available to a company (that is, a “debtor”) and to its various constituents (e.g., creditors and equity owners) when that company is experiencing financial distress so […]

A Panel Discussion on the Choice and Challenges of Bankruptcy Venue and Venue Transfers In bankruptcy litigation, the venue can have a major influence on an outcome. We selected expert panel members—each a partner or managing director in the restructuring industry—to discuss why venue fights occur and how business owners (and their advisors) should approach choice of bankruptcy venue, as well as venue transfers. Our expert panelists explore how courts resolve disputes over the venue of a case. Expert Panelists Lisa Vandesteeg, Financial Services and Restructuring Partner at Levenfeld Pearlstein, […]

How to Develop Board Committees Equipped for a New Landscape As Covid induced bankruptcies proliferate, creditors who become stockholders will need to focus not only on the future financial health of the reorganized company, but also on its overall governance. The new post-pandemic landscape will be revolutionary, not evolutionary. It will demand new owners and advisors to construct a multi-talented board, capable not only of reacting quickly and intelligently to dislocations and threats, but more importantly, to crafting a strategy that positions the new company as a leader in its […]