Recent Articles

Managing Cash and Stakeholders to Turn Around a CompanyBy Steven A. San Filippo • 12/12/2018
[Editor's Note: This is an update of an article that originally appeared in May 2013.] Managing Cash Is Key for a Distressed Business When working to preserve or maintain solvency to maximize opportunities for a successful turnaround or restructuring of[...]
Valuation: The Pillar of Corporate RestructuringBy Jonathan Friedland • 12/07/2018
Bankruptcy Valuation Valuation—the estimation of an entity’s worth—plays a crucial role in all stages of a commercial bankruptcy, as well in any out-of-court restructuring.¹ Valuation can be critical at the beginning of a bankruptcy case in determining whether the debtor[...]
Cash is King – The Importance of Liquidity in a Distressed Company’s Capital StructureBy David Bagley • 11/28/2018
[Editor's Note: This is an update of an article previously published in May 2013.] What is Capital Structure? A company’s “capital structure” is the array of its liabilities and equity. Capital structure commonly consists of three main components: working capital[...]
Opportunities in Bankruptcy: Turning Coal Into DiamondsBy Michael A. Brandess • 11/21/2018
“The time to buy is when there’s blood in the streets.” - Baron Rothschild Don’t Panic, There Are Many Opportunities in Bankruptcy When a client or a competitor files for bankruptcy, it is natural to reflect on the downside. What’s[...]
Review of the NAFER 2018 Annual Conference in ChicagoBy Christopher M. Cahill • 11/12/2018
NAFER (the National Association of Federal Equity Receivers) held another wisdom-rich conference in October, this time at the Drake Hotel in Chicago.  It was the seventh annual event and attracted 200 attendees. The conference included the Training Camp as well[...]
Absolute Priority Rule in Bankruptcy: Are You Atop the List?By Patrick Maxcy • 11/07/2018
Editor’s Note: This is an updated version of an article published in May of 2013. If you are a vendor, service provider or another unsecured creditor to a chapter 11 debtor, you cannot be blamed for feeling like a duped[...]
What Constitutes the “Legal Rate” in a Solvent Debtor Bankruptcy Case?By Melanie L. Cyganowski • 10/31/2018
Chapter 11 bankruptcies find the debtor generally to be insolvent, but not always. Occasionally, a debtor will emerge from the bankruptcy process as a solvent entity, and in those situations, Bankruptcy Code §726(a)(5) may entitle creditors of the debtor’s estate[...]
From Penthouse to Ground Floor – The Penthouse Magazine BankruptcyBy Michele Schechter • 10/26/2018
The Life, Death and Many Reincarnations of Penthouse Magazine Penthouse International, publisher of Penthouse Magazine, sold for $11.2 million in June. The company was worth about $700 million (adjusted for inflation) at its height. The latest Penthouse Magazine bankruptcy highlights just[...]
Lender Liability Is Alive and Well: A Case StudyBy Gary W. Marsh • 10/20/2018
The relationship between a lender and borrower can be complex. The borrower wants capital to run and grow its business and the lenders want to earn a return and eventually get its principal back. If the borrower complies with the[...]
Dealing with Distress for Fun & Profit— Installment #18—How to Confirm a Chapter 11 PlanBy Jonathan Friedland • 10/18/2018
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[...]
Law Firm Bankruptcies: The “Unfinished Business” Doctrine and the Jewel WaiverBy Phillip D. Anker • 08/09/2018
One of the interesting aspects of business bankruptcy cases is that both the businesses and the issues their bankruptcy proceedings present can differ so much. In recent years, for example, we have seen department stores (Macy’s, Federated), toy retailers (Toys[...]
The Supreme Court Narrows the Bankruptcy Code Safe Harbor for Securities Transaction PaymentsBy Anna Kordas • 06/07/2018
In our last article, we discussed the U.S. Supreme Court’s acceptance for review of the Seventh Circuit’s decision in FTI Consulting, Inc. v. Merit Management Group, LP, 830 F.3d 690 (7th Cir. 2016), cert. granted, No. 16-784, 197 L. Ed.[...]
Timing Is Everything: How to Make a Rough Assessment of Potential Preference Action Defenses (PART 2)By Robert C. Maddox • 04/26/2018
Editor’s Note: Part 1 of this article laid out the prima facie case a plaintiff needs to have in order to sue for a preference, outlined the major defenses and explained the importance and use of certain key documents in[...]
Timing Is Everything: How to Make a Rough Assessment of Potential Preference Action Defenses (PART 1)By Robert C. Maddox • 04/23/2018
Your company has just been served with a preference complaint. The complaint seeks to recover tens or hundreds of thousands of dollars even though your company already has taken a loss on the debtor’s accounts. Your initial response is anger[...]
Long-Term Disruptive Trends: Installment #2 – Transportation Industry TrendsBy Todd A. Zoha • 03/10/2018
This article is the second in a series of articles discussing long-term disruptive trends and their impact on restructuring activity. Read Bankruptcy Venue Reform, the first installment of this series. Introduction to Disruptive Trends The English Oxford dictionary defines “disruption”[...]
Long-Term Disruptive Trends: Installment #1 – Bankruptcy Venue ReformBy Todd A. Zoha • 02/21/2018
This article is the first in a series of articles discussing long-term disruptive trends and their impact on restructuring activity. Introduction to Disruptive Trends The English Oxford dictionary defines “disruption” as a disturbance or problems which interrupt an event, activity,[...]
To Tell The Truth; The Importance Of Full And Frank Disclosure To Preserving The Attorney-Client PrivilegeBy Patrick Fitzmaurice • 01/08/2018
Imagine yourself as the owner of a small company, or the CEO of a large corporation. The company is not doing well, but you are convinced the distress can be overcome. While sales are down, competition is fierce and your[...]
Third-Party Litigation Funding and Issues It Creates In Bankruptcy Cases – This Ain’t Your Father’s Contingency Fee Arrangement!By Thomas J. Salerno • 12/05/2017
Third party litigation funding ("TPLF") is, beyond a doubt, here to stay. In bankruptcy cases, TPLF arises in a number of contexts. First is the TPLF as a pre-petition secured or unsecured creditor—i.e. the TPLF source funded litigation and thereby[...]
Being Proactive: Steps a Supplier Can Take in the Face of Potential Customer BankruptcyBy Erin N. Brady • 11/28/2017
The impending bankruptcy of a retailer is one of the most stressful experiences that a supplier may face. The supplier is confronted not only with the potential loss of a major customer, but also with the possibility of significant financial[...]
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