A supplier to a potentially bankrupt retailer can mitigate losses by invoking the right to suspend delivery, demanding adequate assurance, and more.

It is important to be aware of the financial and legal risks of bankruptcy claims trading.

The section 1111(b)(2) election is an important creditor countermeasure in a Chapter 11 plan cram down attempt by the debtor.

Bankruptcy valuation of a debtor plays an integral part in bankruptcy, from debtor-in-possession financing, confirmation and how much creditors are paid.

Capital structure may not be relevant for a healthy company’s value, but for distressed companies, liquidity and capital structure can be key.

An organization that is in distress faces a harsh reality: to attempt to turnaround the business or dispose of it. This existential decision is incredibly time-sensitive, as any delay in action erodes the possibility of a successful recovery. In this article, we will explore the distressed organization and the difficult decisions faced by its stakeholders. We will outline considerations to keep in mind when faced with such a situation. As part of this process, we will also examine short-term survival as a concurrent process of the chosen strategy. The Key […]

Don’t Panic When a client or a competitor files for bankruptcy, it is natural to reflect on the downside. What’s going to happen to my outstanding receivables? Is the market primed for a downturn? How am I going to replace any lost business? These concerns are very real and require meaningful thought and discussion. However, solely focusing attention on the downside can prove short-sighted. There are incredible opportunities in bankruptcy for the astute businessperson. Opportunities in Action Imagine for a moment that you are the chief executive officer (CEO) of […]

Author’s Note Appellate rulings in a California bankruptcy case have the potential to upend a bedrock principle of Subchapter V plans. After an apparel company filed for Chapter 11 under Subchapter V because of a judgment it could not pay, its plan to reorganize has bounced between bankruptcy court and the district court since 2020. While the bankruptcy court supports the debtor’s use of Subchapter V’s unique provisions favoring debtors and equity holders, the district court has taken a more creditor-centric view and blocked its plan twice. While thousands of […]

When Corporate Attorney-Client Communication Is No Longer a Secret Imagine if every secret and strategy that you had ever shared with your attorney were laid open for the world to see. A trustee in a business bankruptcy case may well have the power to review, publish, and wield all of the debtor’s attorney-client communication, including those communications that the debtor’s principals reasonably believed were permanently encased in a fortress of secrecy. The trustee can thus gain major ammunition for claims against insiders, business partners, vendors, attorneys, accountants, advisors, and others. […]

Assessing Legal Risk    “One man’s rubbish is another man’s treasure.” -William & Robert Chambers Journal of Popular Literature, Science and Arts (1879)  “A little learning is a dangerous thing” -Alexander Pope, An Essay on Criticism (1709)    Purchasing operating assets from a financially distressed seller is a fantastic opportunity to buy low. Before doing so, however, any buyer must take into account a host of considerations, including, but not limited to, operational, competitive, integration, and legal issues, such as fraudulent transfers and successor liability. Buying a business, or business […]