Search Results for: "Section 363"
Potential Outcomes of Intercreditor Deeds Secured creditors often seek agreement among themselves in order to limit intercreditor conflict and expedite fulfillment of their respective claims against a borrower in a Chapter 11 case. One might call it a “strength through peace” approach. However, in Chapter 11 cases, some courts have ignored intercreditor agreements in cramdown situations, refused to enforce certain terms as contrary to public policy, and have construed a given intercreditor agreement term as not covering the controversy at issue. We note that the likely fate of an […]
A Series on the ABCs of ABCs, Business Bankruptcy & Corporate Restructuring/Insolvency Greetings, Dear Reader: It seems you’re interested in learning how to deal with corporate distress, and we’re glad you’re here. But let’s first make sure you got on the right plane. Maybe you… Are a C-suite executive of a business that’s considering buying a failing competitor on the cheap Manage a private equity or hedge fund Are a junior associate in the restructuring or special situations group of a law, investment banking, or accounting firm Are a credit […]
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: How do I know if I should request relief from a debtor’s automatic stay? ANSWER: What is the Automatic Stay? Section 362 of the Bankruptcy Code provides for the automatic stay. The automatic stay, triggered immediately upon the debtor’s filing of a bankruptcy petition, bars nearly all actions against the debtor and its property, including actions to exercise […]
Is It Commercially Reasonable Notice, If No One Is Reading? You represent a secured lender. You are to assist your client in its exercise of rights under UCC §9-610 to sell its collateral after it has foreclosed upon the collateral. Or maybe you represent a chapter 11 debtor and are selling its assets under Bankruptcy Code §363. Or perhaps you are a federal equity receiver selling under 28 U.S.C §2001 et seq. Or you are an assignee for the benefit of creditors or state court receiver who is selling a […]
A written tour of business bankruptcy and its alternatives. This is the latest in the series, Dealing with Distress for Fun & Profit, which you can read from the beginning if you like. In this bat-installment, we turn to what is, theoretically, one of the most important parts of any chapter 11 case: confirming a chapter 11 plan. Chapter 11 Plans Are Not Always in the Cards Notice our use of the word “theoretically” above? That is because in many chapter 11 cases there never is a plan. Some cases […]
The economy, stupid. -James Carville The corporate restructuring profession has become, much like the broader economy, increasingly a world of few “haves” and many “have nots.” This is not by accident, and it is not going away. Those who see and accept the industry for what it is—and pivot accordingly—will continue to be winners. Those who possess a limited repertoire of moves and simply hope for economic downturns will continue to fight for limited market share. How We Got Here Chapter 11 Was Once New Technology The Bankruptcy Code is […]
Lee E. Buchwald, the Chapter 7 trustee of Magnesium Corporation of America and Renco Metals, Inc. (“Debtors”), announces a bankruptcy auction of an interest in certain litigation claims against The Renco Group, Inc. and Ira Leon Rennert, consisting of a fully-bonded $213 million judgment currently on appeal. The stalking horse bidder, an affiliate of litigation funder Gerchen Keller Capital, LLC, has submitted a bid of $25 million, subject to better offers which are due by August 9, 2016. On August 2, 2001 (the “Petition Date”), Magnesium Corporation of America (“MagCorp”) and Renco Metals, Inc. (“Metals”) (MagCorp and Metals together, the “Debtors”) each filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). By order dated September 25, 2003, the Debtors’ cases were converted to cases under Chapter 7 of the Bankruptcy Code. On September 25, 2003, Lee E. Buchwald was […]
A written tour of business bankruptcy and its alternatives In case you are hopping on board the bus in the middle of our tour, you may want to know that this installment looks at some of the more mundane stuff that happens after a Chapter 11 case is filed but before the end of the case. We will discuss that in later installments. Before we let you out of the bus to look around at this stop, let’s review what we’ve already seen (and what you may want to go […]