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Investing in Distressed Businesses
Can You Challenge a Section 363 Sale? Bid Now or Forever Hold Your Peace
Don’t expect to challenge a 363 sale so easily. Find out why you should pursue other options for purchasing assets from a distressed seller.
90 Second Lesson: Stalking Horse Bid, Yay or Neigh?
A stalking horse bidder makes the first bid in an bankruptcy auction, setting the initial price and structure of the sale– but there are some disadvantages.
90 Second Lesson: Selling Collateral in a 363 Sale vs. Article 9 Sale
Why would a secured creditor prefer to sell its collateral outside of bankruptcy? Here’s how time, money, and control differ in a 363 sale vs Article 9 sale.
90 Second Lesson: First Step Before Buying a Distressed Business
Ordinary asset purchase? Article 9 sale? Bankruptcy acquisition? When buying a distressed business, the type of purchase should be top of mind.
Selling Distressed Assets: The Assignment for the Benefit of Creditors Alternative
An assignment for the benefit of creditors (ABC) can be a faster and more cost-effective alternative for a chapter 11 or 7 liquidation. Understand more about this alternative for selling distressed assets effectively.
What to Consider When Selling a Bankruptcy Claim
Why Sell a Bankruptcy Claim? Imagine this: One of your customers sends you a notice stating it has filed for chapter 7 or chapter 11 bankruptcy protection rather than the payment for goods or services provided that you were expecting. In technical terms, you now have a “claim” against the “debtor,” but you aren’t sure you want to deal with the bankruptcy process and delay only to recover part of what you are owed. When a bankruptcy claims purchaser offers to purchase your bankruptcy claim from you for cash, you […]
An Introduction to Bankruptcy Claims Trading Part 2: Sale of a Claim
New to the bankruptcy claims trading marketplace? Take a close look at documenting the purchase and sale of a bankruptcy claim.
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 if they will ultimately recover on their claims—or engaging in what could be a drawn out and expensive dispute with the debtors to protect their right and enforce their claims. Believe It…or Not…There is an […]
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, he is skeptical that this is the case and is hesitating on making an offer to purchase the property. Lou’s skepticism is well-founded. There are cases where the property sold in a section 363 sale […]
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 the day about the Markets and the Economy, on the one hand, and the world that is our stock and trade. We have, in the past few weeks, had a number of conversations with some […]