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Investing in Distressed Businesses

Golf course 363 sale

Not Necessarily Free and Clear: Purchasing Real Estate Property in a Section 363 Sale

Just Because a 363 Sale Says Free and Clear, Does Not Mean It’s True A bankruptcy debtor is offering commercial property in a section 363 sale. It is an attractive property and Lou is considering purchasing it. Lou has heard that a section 363(b) sale “cleans” the assets of all liens, claims, and encumbrances. However, […]


Stalking Horse

90 Second Lesson: Stalking Horse Bid, Yay or Neigh?

The Pros and Cons of a Stalking Horse Bid Question: Why Be A Stalking Horse Bidder? A stalking horse bid is an initial bid on a distressed company’s assets made by an interested party that the bankrupt company (debtor) chooses to participate in a 363 sale. The stalking horse bidder agrees to purchase the specific […]


Economic and Stock Market Data

Stock Market Pundits & Economic Data: What Conclusions Can We Draw on the Distressed Asset Space?

What Distressed Asset Investors Can Glean from Low Interest Rates, Rising Asset Prices and Insolvency on the Horizon DailyDAC readers know that we try to confine ourselves to publishing “evergreen” thought leadership—general education for business owners and investors about business bankruptcy, its alternatives, and related subjects. There isn’t a stark line between the news of […]


Documenting a Claims Trade

An Introduction to Bankruptcy Claims Trading Part 2: Documenting the Sale of a Claim

Trade Confirmations, Sale Agreements and the Provisions You Need to Know to Document 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 […]


Tsunami of Executory Contracts

Analyzing Executory Contracts: Can AI Save Us from The Contract Tsunami?

The Overlooked (Giant) Asset Class: Executory Contracts In today’s world, one of the most important sources of assets and liabilities for a debtor is its executory contracts. Companies that were once heavy with assets and employees now have a much lighter balance sheet accompanied by many more business agreements enabling (or causing) them to utilize […]


Bankruptcy claims trading

An Introduction to Bankruptcy Claims Trading

A Primer on the Bankruptcy Claims Marketplace Upon the filing of a bankruptcy petition by a debtor in a U.S. chapter 11 proceeding, any attempts to collect debt by a creditor are halted. As a result, creditors face the daunting prospects of either waiting out the debtor’s bankruptcy case—not knowing when, how much, or even […]


Buying a distressed business

90 Second Lesson: First Step Before Buying a Distressed Business

How Types of Sales Affect the Purchase of a Distressed Business   Editor’s Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to [email protected] and we will try to answer it.   Question What is the first integral decision a buyer must make […]


363 vs Article 9 Sale

90 Second Lesson: Selling Collateral in a 363 Sale vs Article 9 Sale

Why a Secured Creditor May Push to Sell Collateral Outside of Bankruptcy   Editors’ Note: This is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to [email protected] and we will try to answer it. Question: An investment banker recently wrote in, saying: “I am currently […]


Bank Stocks on Sale

With the sharp slowdown in the economy, bank stocks have declined significantly, and, unlike the broad S&P 500 Index, have not recovered much of their lost value.  Year-to-date, our universe of 180 bank stocks has declined 31%, compared to the 6% decline in the broad market. Driving the weak shares are concerns over higher credit […]


Wind Turbine LLC tries to challenge a 363 sale

Can You Challenge a Section 363 Sale? Bid Now or Forever Hold Your Peace

How Natural Chem Holdings Tried to Beat the Wind in a 363 Sale Appeal    You would like to buy wind turbines in a lease-to-own scenario—that is, you would like to take possession of certain items and pay over time or in a lump-sum at some point in the future. You prefer this mode to […]


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