Search Results for: "Creditor"
A written tour of business bankruptcy and its alternatives In our past few installments we’ve been approaching our topic in a more or less chronological manner, explaining what generally happens first, second, third, and so on. We think it useful to switch convention and spend this and the next few installments talking about things from the perspective of specific players. This time, we focus on the secured creditor. What/who is a secured creditor? Examples include (there are other possibilities): The holder of a real estate mortgage A bank with a […]
NOTICE OF PUBLIC SALE BY ORDER OF ASSIGNEE FOR THE BENEFIT OF CREDITORS OF INTEGRATED ORTHOPEDICS, INC D/B/A WABASH MEDICAL INC. 3717 NORTH RAVENSWOOD AVE., SUITE 217 CHICAGO, IL 60613 SALE OF ASSETS: Notice is hereby given that on January 29, 2016 at 2:00 pm, central time (the “Date of Sale”), in the offices of Rally Capital Services, LLC, 350 North LaSalle St, Suite 1100, Chicago, IL 60654, that Howard B. Samuels, not individually, but solely as Assignee for the Benefit of Creditors of Integrated Orthopedics, Inc., d/b/a Wabash Medical, Inc. (the “Company”), shall hold a public auction in accordance with Illinois common law to offer for sale in a single lot all of the Company’s right, title and interest in and to substantially all of its assets whether tangible or intangible, real or personal or mixed, owned or lease (including indirect and other forms of beneficial interest) wherever located and […]
JPMorgan Chase & Co. and others (“JPM”) lent $1.5 billion to General Motors Corporation (“Old GM”) under a term loan agreement (the “Term Loan Agreement”). JPM was the senior secured creditor of Old GM. Old Gm went into chapter 11 bankruptcy. Under the terms of the DIP financing approved by the bankruptcy court, proceeds of the DIP loan were used to pay $1.5 billion to JPM for its claims under the Term Loan Agreement. The unsecured creditors committee formed in the Old GM chapter 11 case (the “Committee”) wants that […]
In part one of our series on recharacterization, we discussed the elements of judicial recharacterization of loans as equity interests.[i] In part two of the series, we considered how debtors can “claw back” putative “loans” that they may have repaid years earlier because the “loans” were in fact equity investments and their repayment was invalid.[ii] In this finale of the series, we contrast recharacterization with equitable subordination, which is another means by which some creditors can seek to push ahead of others. Equitable subordination resembles recharacterization in that it permits […]
An assignment for the benefit of creditors (“ABC”) is a state-law means of business liquidation that, where it makes sense to pursue, usually takes less time and expense than a bankruptcy case. ABCs are available in many, but not all, states. They can involve judges or not, and can be set by statute or common law. An ABC is a trust agreement whereby the owner of a distressed company, the assignor, irrevocably transfers title, custody, and control of (usually all of) its assets to an impartial third party, the assignee, who is […]
In our last article[i], we discussed the judicial recharacterization of loans as equity interests. As we described, a court will recharacterize a lender’s debt claim as equity if it determines the “loan” actually was intended to be, and was treated by the parties as, an equity investment. Recharacterization is a powerful tool for creditors and trustees because, under the Bankruptcy Code’s priority scheme, debt claims (and all general unsecured claims) must be repaid in full before equityholders can receive any distribution on account of their (equity) interests. Because many, if […]
Closed Loop Fund LP will sell substantially all of the assets of IntegriCo Composites of Louisiana, L.L.C. The sale will be held on May 29, 2024 at 11:00 am CT remotely via Zoom. All of the personal property collateral pledged respectively to Secured Creditor, including the equipment that was acquired with proceeds from the loan of the Secured Creditor and all contracts, equipment, inventory, accounts, general intangibles, instruments, documents and chattel paper and other personal property assets will be sold The Obligor had generally been in the business of manufacturing of composite products created from recycled plastics. Professionals Involved: Robert E. Richards of DENTONS US LLP
The assets of Sky Capital Group LLC d/b/a Roady’s Truck Stops will be sold in a UCC Article 9 sale. Professionals Involved: Jacob Sparks, Esq. of Nelson Mullins Riley & Scarborough LLP
Secured creditors and buyers of distressed assets don’t have to worry about courts limiting their credit bids, but one Delaware case is cause for concern.
The Commercial Receivers Association Prepares to Celebrate its Second Annual Conference in Palm Beach, FL August 18-21, 2024