Purchases and Sales

Loan to Own

March 18, 2015

Salus Capital Seeks to Limit Credit Bidding Rights in RadioShack's Bankruptcy

Breaking News Alerts from Chapter11Dockets.com

As we reported yesterday on sister site Commercial Bankruptcy Litigation, one of RadioShack's lenders (Salus Capital Partners) filed an adversary complaint against other of RadioShack's lenders.  Today, the other shoe dropped as Salus filed a motion in RadioShack's Chapter 11 bankruptcy cases asking the bankruptcy court to limit those lenders' right to credit bid their claims in sales of RadioShack's assets.  In the motion, Salus, acting as the agent for lenders referred to as the...

January 20, 2015

Versa Capital Management Submits Competing Offer to Be Plan Sponsor & DIP Lender for The Wet Seal, Inc.

Breaking News Alerts from Chapter11Dockets.com

In a Monday bankruptcy court filing, Versa Capital Management, LLC disclosed that it has submitted an offer to both (1) provide debtor-in-possession financing to and (2) sponsor a plan of reorganization for The Wet Seal, Inc.  A copy of the January 19, 2015 letter from Versa Capital Management's Chairman & CEO Gregory L. Segall to Wet Seal's Board of Directors and President/CEO can be viewed by clicking here.  The objection to which the letter was attached...

February 6, 2014

The Fisker Case: My Credit Bid is Capped at the Amount I Paid for the Debt?

  • Jonathan T. Brand
  • Lakelaw
  • Chicago, Illinois
  • (312) 360-1505
  • jbrand@lakelaw.com

One way to purchase assets (including the assets of a business as a going concern) is to prevail at a foreclosure sale or a § 363 bankruptcy auction with a credit bid.  The first step is to acquire the senior secured debt on the assets at a steep discount.  The next step is to outbid cash bidders with a credit bid up to the face value of the debt.  Last year, the US Supreme Court...

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