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Bankruptcy reporting requirements

Chapter 11 Reporting Requirements: How Debtors Must Stay Transparent

Bankruptcy Reporting Requirements Before and During Chapter 11 One of the  central principles of bankruptcy is that a debtor should have the benefit of a “fresh start.” However, to accord such relief, the Bankruptcy Code, Bankruptcy Rules, and case law require transparency from the debtor and other parties in interest. As such, strict compliance with […]


Borrower Bankruptcy

What Secured Lenders Should Know If Their Borrower Files for Bankruptcy

When a Borrower Files for Bankruptcy, How Can Secured Lenders Protect Their Position? As a secured lender, you should know well in advance the necessary details if a borrower files bankruptcy. Let us presume therefore that, from consultations with your borrower, it is clear that the borrower is in distress: The borrower is likely unable […]


Non-Bankruptcy Alternative Paths

Dealing with Corporate Distress 07: Chapter 11 is Not Always the Answer: Strategic Alternatives For and Against Distressed Businesses

The ABCs of ABCs, Business Bankruptcy, & Corporate Restructuring/Insolvency In Installment 5, we walked through the lifecycle of a hypothetical traditional chapter 11, and in Installment 6 we discussed key concepts you must comprehend in order to understand any chapter 11 case. Now we pull the camera back and turn our focus away from chapter […]


Healthcare Provider Bankruptcy

3 Special Issues in Healthcare Restructurings

2020 Saw Increased Healthcare Provider Bankruptcies. What Should Companies & Restructuring Professionals Know Moving Forward? Healthcare providers face many pressures, including costs associated with regulatory compliance and necessary technological and infrastructure investments. Congress’ repeated attempts to reform healthcare legislation have long created uncertainties for the healthcare industry. A PwC report predicts that throughout 2021, healthcare […]


Basic Chapter 11 Concepts

Dealing with Corporate Distress 06: Four Basic Chapter 11 Concepts to Know Before We Go any Further

The ABCs of ABCs, Business Bankruptcy, & Corporate Restructuring/Insolvency In the last two installments of this series, we introduced you to things a company should consider before deciding whether to file chapter 11, and a timeline for understanding how a “typical” chapter 11 case proceeds. In this quick little ditty, we want to make sure […]


Liquidity and Capital Structure

The Importance of Liquidity in the Capital Structure of a Distressed Company

How Liquidity Becomes the Kryptonite of a Distressed Company’s Capital Structure A company’s “capital structure” is the array of its liabilities and equity. It is often described by the debt to equity ratio, which is the amount of total debt divided by total equity. Capital structure commonly consists of three main components: working capital (also […]


Issues in healthcare restructuring

Potential Pitfalls and Opportunities in Healthcare Restructuring

How Unique Issues in Healthcare Restructuring Set It Apart from Corporate Restructuring   Over the past decade, arguably no industry experienced such dramatic regulatory change or consistent legislative uncertainty as healthcare. Today, continued efforts to repeal, defund, replace, or amend the Affordable Care Act—coupled with rising pharmaceutical costs, increased competition, massive capital investment expenses, etc.—virtually […]


Kuney’s Corner: The Secured Creditor’s Counter Strike – Section 1111(b) Election

Section 1111(b) Election: A Countermeasure for Undersecured, Secured Creditors   Mathew 5:29 – And if thy right eye offend thee, pluck it out, and cast it from thee: for it is profitable for thee that one of thy members should perish, and not that thy whole body should be cast into hell. In a previous […]


Collected money over time

Bankruptcy Considerations in a Collections Action

A Summary of Consumer Bankruptcy for Collecting Creditors Understanding what can occur during a collection action can be vital in determining which accounts to pursue. One common occurrence is that the debtor files for bankruptcy. So, what exactly is bankruptcy? Bankruptcy is a procedure that allows debtors to reorganize their debts and potentially liquidate certain […]


An investor hands over keys to a distressed asset as part of an assignment for the benefit of creditors, or ABC

Selling Distressed Assets: The Assignment for the Benefit of Creditors Alternative

An Alternative to Chapter 11 and Chapter 7 Liquidations Financially distressed companies faced with unlikely prospects for reorganization – and the creditors who can influence their decisions – often take advantage of the chapter 11 liquidation option, where the debtor’s assets can be sold free and clear of all liens, claims, and encumbrances. This leaves […]


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