What you need to know as a secured lender to a borrower who goes into bankruptcy you should know already, well in advance. If your borrower’s bankruptcy filing has taken you by surprise, please refer to my next article in this series, in which I will discuss the tactics and strategies in the contested case […]
There is a seeming irony here in that a company that files for bankruptcy often does not have the cash to do so. That’s where DIP financing comes in.
Drafting can easily go awry. When collateral descriptions are drafted errantly in security agreements and financing statements, secured creditors may not get what they bargained for and expensive disputes can bloom. A valid security agreement executed by the owner of the collateral and the secured party creates a security interest. Such a security agreement grants […]
A written tour of business bankruptcy and its alternatives Subsequent installments in this series will cover the concepts touched upon here in more detail. We think it prudent, if not necessary, to at least throw some basic chapter 11 concepts on the table now, however, since they are so fundamental to any Chapter 11 case- […]
The recommended reading this time is not an article but a pleading in a bankruptcy case. The official committee of unsecured creditors (the “Committee”) appointed in the Kids Brands case (In re Kid Brands, Inc., Case No. 14-22582 (Bankr. D. N.J.) objected to financing for which the large corporate debtor seeks approval from the Court. […]
When a customer files for bankruptcy, vendors with claims against the debtor that arose before the commencement of the case (the “Petition Date”) can be exposed to considerable losses. To protect themselves in the days and weeks before and after the bankruptcy filing, creditors must assess how to maximize their distribution on claims and prepare […]