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Creditors’ Committee
Who Gets Paid First (and Second, Third, etc.) in Bankruptcy
Who makes the top of the list in the order of priority? See where you fall based on the absolute priority rule.
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.
Showdown in Spokane: The Spokane Country Club Bankruptcy Case
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 […]
You Sued and Won. Now What? How to Enforce a Judgment in Illinois and Turn It Into Cash
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.
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 […]
Solvent Debtor? A Chapter 11 Debtor Need Not Be Broke
A Solvent Debtor Can File for Bankruptcy…but Can They Survive a Motion for Dismissal? Suppose that your borrower or customer files for chapter 11 bankruptcy. You do not like this, because you’ll almost certainly not collect the full amount owed to you. In fact, to get anything at all, you’ll have to get involved with […]
90 Second Lesson: Carve-Outs for Unsecured Creditors
How Does a Fee Carve-Out Relate to A Carve-Out for Unsecured Creditors? [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.] In a separate 90 Second Lesson, we defined and explained the […]
Kuney’s Corner: The Many Fates of Intercreditor Agreements
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 […]
The Elegant Swan and Clumsy Duck: What is Recharacterization in Bankruptcy?
How the Recharacterization of Debt Impacts Creditors The line between a loan and an equity investment isn’t always clear. In these cases, those who represent unsecured creditors can impact the distribution on claims in the creditor’s favor. This is done through the recharacterization of debt. In bankruptcy, a debt claim has a higher priority […]