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 […]
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.
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 […]
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 […]
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 […]
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 […]
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 […]
A Series on the ABCs of ABCs, Business Bankruptcy & Corporate Restructuring/Insolvency Since a judge presides over a chapter 11 proceeding, one might assume that a chapter 11 case is like any other commercial litigation matter, with one party on each side of the case: a plaintiff and a defendant. One would be wrong (Felix […]
“The time to buy is when there’s blood in the streets.” – Baron Rothschild Don’t Panic, There Are Many Opportunities in Bankruptcy 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 receivable? Is the market primed for a downturn? How […]