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Creditors Rights
Solvent Debtor? A Chapter 11 Debtor Need Not Be Broke
A debtor does not have to be insolvent to file for chapter 11 bankruptcy. Can its creditors pursue dismissal of a chapter 11 case?
What Secured Lenders Should Know If Their Borrower Files for Bankruptcy
When your borrower files bankruptcy, choosing to cooperate can lead to a more successful restructuring or sale. Here’s how to protect yourself if you do.
3 Issues for Vendors to Consider When Their Customer Files For Bankruptcy
If a customer files bankruptcy, vendors (trade creditors) should consider administrative priority, critical vendor status, and avoidance actions.
Who Gets Paid First (and Second, Third, etc.) in Bankruptcy
Who makes the top of the list in the order of priority? See where you fall based on the absolute priority rule.
The Order of Claims in Bankruptcy: Absolute Priority Rule, Structured Dismissals, and More
The absolute priority rule dictates which unsecured creditors receive priority for their claims. But is it always absolute?
Uptier Transactions and Other Lender-on-Lender Violence: The Potential for More Litigation and Disputes on the Horizon
Lender-on-lender violence has been noted more in recent news, and have been increasingly used in out-of-court restructurings in recent years including during the COVID-19 pandemic.
90 Second Lesson: What is a “UCC Article 9” Sale?
An Article 9 sale allows a creditor to sell its collateral to a third party in a private or public sale without the need for judicial proceedings.
Commercial Real Estate Tenant Bankruptcy — What To Do
When a commercial real estate tenant files a chapter 11 bankruptcy case, the landlord faces unfamiliar issues. Although each case is unique, this article provides a basic overview of the issues commercial landlords could run into.
Ponzi Scheme Lender May Be Off The Hook, After All: A Case Study
The Sixth Circuit would quote Ohio case law to explain that “A contract of novation is created where a previous valid obligation is extinguished by a new valid contract, with the consent of all the parties, and based on valid consideration.” In a sense, a novation establishes that the prior contract is fully performed by the novated contract.
What do Secured Lenders Want? The Basics of Loan Forbearance Agreements
When a borrower defaults on its loan agreements, a lender may, among other options, sue to foreclose on its collateral and collect from the borrower. The lender, however, may instead agree to amend the loan documents or enter into a loan forbearance agreement. If the borrower can convince the lender that, within a reasonably short time, it can cure the defaults and perform or observe such new conditions as the lender may require in exchange for waiting, a loan forbearance agreement memorializing such new arrangements may be entered into by […]