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Creditors’ Committee

A court may recharacterize a creditor’s debt claim as an equity interest. This recharacterization often has a significant impact on creditor claims.

A debtor does not have to be insolvent to file for chapter 11 bankruptcy. Can its creditors pursue dismissal of a chapter 11 case?

Like a professional fee carve-out, secured creditors may also agree to a carve-out for unsecured creditors to appease the court and creditors’ committee.

Who makes the top of the list in the order of priority? See where you fall based on the absolute priority rule.

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.

The Spokane Country Club bankruptcy case (SCC, the club, or the debtor) is an interesting study. The bankruptcy process was used to disrupt the collection efforts of plaintiff creditors who had been awarded a judgment and to negate the club’s significant policy changes that had been stipulated in a state court proceeding. The club was founded in Spokane, Washington, in 1898. Spokane is located on the far eastern side of Washington State, closer to Missoula, MT, than to Seattle. The city is named after the Native American Spokane people, whose […]

You just won a hard-fought trial and obtained a money judgment against a corporate defendant. But how do you go about enforcing a judgement? You may need a collection lawyer to navigate difficult judgment debtors.

The Jevic case upheld the absolute priority rule, but it did not prohibit structured dismissals. How are structured dismissals affected post-Jevic?

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 land before. A builder wants to pledge some land as collateral. What special risks does raw land collateral pose to a lender? Answer Raw land is often inventoried by developers and is usually in some […]

Potential Outcomes of Intercreditor Deeds   Secured creditors often seek agreement among themselves in order to limit intercreditor conflict and expedite fulfillment of their respective claims against a borrower in a Chapter 11 case. One might call it a “strength through peace” approach.   However, in Chapter 11 cases, some courts have ignored intercreditor agreements in cramdown situations, refused to enforce certain terms as contrary to public policy, and have construed a given intercreditor agreement term as not covering the controversy at issue. We note that the likely fate of an […]

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