Your company has just been served with a preference complaint. The complaint seeks to recover tens or hundreds of thousands of dollars even though your company already has taken a loss on the debtor’s accounts. Your initial response is anger at the unfairness of being sued. Fortunately, Congress included defenses to preference actions so that […]
This article is the second in a series of articles discussing long-term disruptive trends and their impact on restructuring activity. Read Bankruptcy Venue Reform, the first installment of this series. Introduction to Disruptive Trends The English Oxford dictionary defines “disruption” as a disturbance or problems which interrupt an event, activity, or process. Disruption is ubiquitous […]
This article is the first in a series of articles discussing long-term disruptive trends and their impact on restructuring activity. Introduction to Disruptive Trends The English Oxford dictionary defines “disruption” as a disturbance or problems which interrupt an event, activity, or process. Disruption is ubiquitous in business. A few examples include customers filing for bankruptcy […]
Imagine yourself as the owner of a small company, or the CEO of a large corporation. The company is not doing well, but you are convinced the distress can be overcome. While sales are down, competition is fierce and your latest expansion – made with borrowed money – did not go well, the business is […]
One of the most powerful tools in the Bankruptcy Code available to bankruptcy trustees (or other estate representatives) to maximize the recovery of creditors is the power to avoid and recover fraudulent transfers of a debtor’s property. These include transfers that are made, or obligations that are incurred, by a debtor (a) with the actual […]
mong the most powerful and best known tools the Bankruptcy Code provides a debtor is the ability to reject burdensome contracts or to assume (and potentially assign) valuable contracts. From the perspective of non-debtor counterparties to such contracts, it may seem that the Bankruptcy Code stacks the deck against them. The well-publicized spike in retail bankruptcy cases has highlighted the treatment of leases of non-residential real property (i.e., store leases).
Are They Really “Absolute,” Are They Really “Rules,” and Do They Always Provide “Priority” to Some Claimants Over Others? At its core, corporate bankruptcy addresses the problem of the “inadequate pie.” While occasionally the debtor will be solvent, in most cases, the debtor will, for lack of a better term, be “bankrupt”—that is, it won’t have […]
Two important decisions by the Third Circuit Court of Appeals and the Delaware Bankruptcy Court shed light on goods in receipt of debtors in Section 503(b)(9) claims.
Like commerce in general, bankruptcies are not necessarily restricted by borders. A company that files for insolvency protection in the Caribbean, Europe or the Far East may also have assets or interests elsewhere, like New York or Miami. Under those circumstances, the debtor’s representative may need the assistance of the U.S. bankruptcy courts to achieve […]
Documenting a Claims Trade In our previous article, Introduction to Bankruptcy Claims Trading, we discussed the claims trading marketplace, focusing on its characteristics, the motivations for its participants, some basics of documentation, key business and legal structuring considerations, as well as risks borne by sellers and purchasers in these types of transactions. In this article, […]