Share this...

Business Bankruptcy

90 Second Lesson: I’ve been asked to sign an involuntary bankruptcy petition. Should I?

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.

KUNEY’S CORNER – Cramdown: An Impaired Class of Claims Says “No” But the Plan is Confirmed Anyway

By filing a chapter 11 petition, the debtor seizes the initiative in proposing a reorganization plan – which is to provide how soon, in what amount, and in what manner creditors’ claims are paid. [i] But a debtor does not necessarily get its way. A class of creditors who are not getting paid in full […]

90 Second Lesson: To Stalk or Not to Stalk? Why be a Stalking Horse Bidder?

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: Jamie S. emailed recently, asking “Can you please sum up the pros and cons of serving as the “stalking horse” in a bankruptcy […]

A Chapter 11 Debtor Need Not Be Broke

Suppose that your borrower or customer files a chapter 11 case.[i]  You do not like this because you’ll almost certainly not collect the full amount owed to you and to get anything you’ll have to get involved with a bankruptcy case and hire attorneys. Your discontent becomes fury when you determine that your borrower or customer […]

Chapter 11 Debtor’s Reporting Obligations

A central principal of bankruptcy is that a debtor should have the benefit of a “fresh start.”  However, to accord such relief, the Bankruptcy Code, Bankruptcy Rules, and case law require transparency from the debtor and other parties in interest.  As such, strict compliance with reporting requirements is a primary responsibility of a debtor in […]

Opening the Kimono: Operational and Financial Reporting Obligations at the Outset of a Chapter 11 Case

While providing numerous advantages to the companies that choose to invoke it, chapter 11 also imposes significant and sometimes burdensome public reporting obligations on them – hence the metaphor of the opened kimono. Because of the debtor’s reporting obligations, creditors and other parties with an interest in the chapter 11 case (such as potential purchasers […]

File Early and Often: Filing and Amending Claims in a Bankruptcy Case

Bankruptcy claims do more than simply determine the amount of money a creditor is owed or can receive as a distribution. Claims also can generate clout, and clout enables a creditor to sit on a creditor committee, have more leverage in negotiations, and claim a higher-priority right to payment – that is, to skip ahead […]

Location Location Location – Where to File Bankruptcy

Are you confused where to file bankruptcy? Why file a bankruptcy case here instead of there? An entity, and moreso a group of entities, may be legally permitted to file for bankruptcy in any one of a number of judicial districts – also referred to as venues. A prospective debtor should carefully consider where to […]

Assessing Potential Return – When the PBGC Files a [Huge] Claim in a Bankruptcy Case

What should interested parties in a bankruptcy case monitor when the Pension Benefit Guaranty Corporation (PBGC) files a claim in the case as an unsecured creditor? When a company that has filed a petition in bankruptcy sponsors the type of pension plan insured by the PBGC, it is more likely than not that the pension […]

Considerations When Selling a Bankruptcy Claim

You sold services and received, instead of payment, a notice that your counterparty has filed for chapter 7 or chapter 11 bankruptcy protection. You understand that you have a “claim” against the “debtor,” in bankruptcy parlance. A bankruptcy claims purchaser offers to purchase your bankruptcy claim from you for cash. You accept. You metaphorically light […]

1 6 7 8