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Cash Collateral & DIP Financing
90 Second Lesson: What is a “Professional Fee Carve-Out” in Chapter 11?
It’s typical for secured lenders in a chapter 11 case to set aside a portion of the proceeds of its collateral to pay professional fees. Understand what you may need to know about carve-out fees.
Dealing with Corporate Distress 15: Digging into DIP Financing & Cash Collateral Motions in Bankruptcy
Will lenders loan to a company in bankruptcy? In this installment, uncover the many intricacies of DIP financing & cash collateral motions in bankruptcy.
Third-Party Litigation Funding (TPLF) and Ethical Issues In Bankruptcy
TPLF represents billions in litigation investing. Litigation funding in the US rose to $2.8 billion last year — $17 billion worldwide. Read about ethical risks looming large.
Assignee Unknown: The Curious Cases of SmartLabs, Shine Bathroom Technologies, Liftopia, GlassPoint, SolarReserve, Maker Media, & Toymail
A curious mystery unraveled. Learn about the significant aspects of an Assignment for the Benefit of creditors, and why knowing the Assignee is important.
Legacies of the Jevic Case: Structured Dismissals Five Years after the Fall
The Jevic case upheld the absolute priority rule, but it did not prohibit structured dismissals. How are structured dismissals affected post-Jevic?
90 Second Lessons: Virgin Lender, Virgin Land: When the Collateral is Dirt
Editor’s 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 Tom S. wrote in asking, I am a hard money lender and have loaned on all sorts of collateral, but I’ve never loaned on raw […]
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 […]
Dealing with Corporate Distress 08: Preventing Forest Fires with First Day Motions in Chapter 11
The ABCs of ABCs, Business Bankruptcy & Corporate Restructuring/Insolvency In this installment, we take you on a tour of the time leading up to the filing of a chapter 11 case and the days that immediately follow. Mostly, we’re referring to first day motions. Before we dive into first day motions, however, you should understand […]
How a Distressed Company Can Manage Cash and Stakeholders in a Liquidity Crisis
Considerations for Companies in a Cash Crisis A liquidity crisis is a severe financial situation in which a company does not have enough cash or cash-convertible assets, which can lead to defaults and bankruptcy. Managing cash is critical when working to preserve or maintain solvency in order to maximize opportunities for a successful turnaround or […]
Incorporation by Reference in UCC-1 Filings
How Brevity in Financing Statements Can Lead to Insufficient Collateral Descriptions Our fast-paced society, coupled with the tendency for people to use shorthand in communications by emails and Twitter, influences everyone to look for ways to save time and be less verbose. When preparing and filing a UCC-1, however, brevity can be the filer’s enemy. […]