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Creditors Rights

Ousting the Debtor in Possession: The Good, the Bad and the Ugly of Replacing a Debtor’s Management with a Chapter 11 Trustee

The mere act of filing a chapter 11 bankruptcy petition significantly alters the relationship between a debtor and its creditors, yet, perhaps surprisingly, the filing does not automatically trigger removal of the very management team that led (or maybe drove) the debtor into bankruptcy in the first place.  Why?  Because, in enacting the Bankruptcy Code, […]

What do Secured Lenders Want? The Basics of Loan Forbearance Agreements

When a borrower defaults on its loan agreements,[i] a lender may (among other options) sue to foreclose on its collateral and collect from the borrower, or agree to amend the loan documents, or enter into a forbearance agreement. If the borrower can convince the lender that, within a reasonably short time, the borrower can cure the […]

When Your Tenant Files for Bankruptcy

This blog entry provides a basic overview for issues facing a landlord of commercial real property when its tenant becomes a debtor, by starting a bankruptcy case under chapter 11 of the United State Code (the “Bankruptcy Code”). A given case may present other or additional issues (and timelines), due to the nature of the case or orders of the bankruptcy court.

When Your IP Licensor Files for Bankruptcy

In 1888 – yes 1888 – Kodak coined the slogan:  “You press the button, we do the rest.”   Now the company, which was immortalized in Paul Simon’s “Kodachrome” song, is selling its assets – at apparent fire-sale prices – in bankruptcy court in New York.1   The Kodak case has brought into sharp focus the treatment […]

When Your Customer Files for Bankruptcy

When a customer files for bankruptcy, vendors with claims against the debtor that arose before the commencement of the case (the “Petition Date”) can be exposed to considerable losses.  To protect themselves in the days and weeks before and after the bankruptcy filing, creditors must assess how to maximize their distribution on claims and prepare […]