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Insolvency

Solvent Debtor Chapter 11 Bankruptcy

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 […]


Foreign Insolvency Chapter 15 Bankruptcy

Chapter 15 Bankruptcy: A Concise Overview

What Is the Purpose of Chapter 15 Bankruptcy? Bankruptcies are global fixtures, ones not necessarily restricted by borders. A company that files for insolvency protection in the Caribbean, Europe or the Far East may also have assets and interests elsewhere, like New York or Miami. Under those circumstances, the debtor’s representative may need the assistance […]


Liquidity Crisis is a Melting Ice Cube

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 […]


Healthcare Provider Bankruptcy

3 Special Issues in Healthcare Restructurings

2020 Saw Increased Healthcare Provider Bankruptcies. What Should Companies & Restructuring Professionals Know Moving Forward? Healthcare providers face many pressures, including costs associated with regulatory compliance and necessary technological and infrastructure investments. Congress’ repeated attempts to reform healthcare legislation have long created uncertainties for the healthcare industry. A PwC report predicts that throughout 2021, healthcare […]


Supplier to Bankrupt Retailer

Steps a Supplier Can Take in the Face of a Potentially Bankrupt Retailer

Adequate Assurance, Suspended Delivery, and Other Rights and Remedies of a Supplier to a Bankrupt Retailer The impending bankruptcy of a retailer is one of the most stressful experiences that a supplier may face. The supplier is confronted not only with the potential loss of a major customer, but also with the possibility of significant […]


Economic and Stock Market Data

Stock Market Pundits & Economic Data: What Conclusions Can We Draw on the Distressed Asset Space?

What Distressed Asset Investors Can Glean from Low Interest Rates, Rising Asset Prices and Insolvency on the Horizon DailyDAC readers know that we try to confine ourselves to publishing “evergreen” thought leadership—general education for business owners and investors about business bankruptcy, its alternatives, and related subjects. There isn’t a stark line between the news of […]


Protection Against Preference Actions

How to Assess 3 Potential Preference Action Defenses

Businesses Have Options for Defending a Preference Action. Here’s How to Build the Right Defense. Your company has just been served with a preference complaint. The complaint seeks to recover tens or hundreds of thousands of dollars even though your company has already taken a loss on the debtor’s accounts. Your initial response is anger […]


Consignment agreement for goods in bankruptcy

Consignment Arrangements: Dos & Don’ts to Avoid Getting Hurt

What Happens When Your Consignee Becomes Distressed and What You Can Do I was speaking with a client yesterday about consignment arrangements. What we discussed should be of interest to any company that sells goods using a consignment arrangement, and I thought I would share. What is a Consignment Arrangement? In a consignment arrangement, the […]


Attorney-client communication is not always secret in bankruptcy

Corporate Attorney-Client Privilege is in the Hands of the Bankruptcy Trustee

When is Your Company’s Attorney-Client Communication 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 […]


Swan deals in recharacterization

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 […]


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