A company’s “capital structure” is the array of its liabilities and equity. Capital structure commonly consists of three main components: working capital (or operating debt), financing debt, and equity.
A Brief History of the Chief Restructuring Officer The role of a Chief Restructuring Officer (“CRO”) is approximately four decades old. While still a somewhat new role in the 1990s, CROs are now ubiquitous in the restructuring community. Todd Zywicki, a George Mason law professor who specializes in bankruptcy law, traces the origin of the […]
Editors’ Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to email@example.com and we will try to answer it. QUESTION: Who can be liable for a chapter 11 debtor’s unpaid taxes? ANSWER: One or more persons, including a fiduciary, may be subject to […]
Editors’ Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to firstname.lastname@example.org and we will try to answer it. QUESTION: Are insolvent or bankruptcy debtors exempt from federal income tax laws? ANSWER: In general, neither the Internal Revenue Code nor the Bankruptcy Code […]
There have been 10 restaurant company bankruptcy filings since November 2015. These companies, with approximately 1,000 combined locations, showcase the difficult operating realities of restaurant chains and could be a leading indicator of a general decline in economic conditions. Recent Restaurant Bankruptcies Opportunities and Challenges In recent years restaurant operators received increasing interest from private equity […]
The past 20 months have witnessed the U.S. energy sector slide into a state of distress not experienced since the 1980s. The magnitude of the price collapse and its duration is causing pain everywhere, with producers trying to cut their operations to the bare bone in an attempt to avoid bankruptcy or, in many cases […]
Times and mores are changing. More and more people and more and more states have de-stigmatized and legalized (in at least some respects) marijuana use, sales and cultivation. As the marijuana “industry” expands, and however unlikely it may seem, a marijuana business could run into creditor problems just like any other. In fact, this has happened already. Locally […]
Are you a lender who needs an appraisal of personal property (machinery, equipment, and inventory) in connection with making a loan? Are you a company that needs one in connection with a capital raise or some other purpose? Regardless of the reason the need may arise, there are some baseline concepts that you should understand before hiring an appraisal firm. This article discusses some of them.
As we watched the Broncos and Panthers come out onto the field this evening, we couldn’t help but be reminded of some of the incredible paychecks that the teams’ star players reeled in during this season. Leading them all was Peyton Manning, who earned $17.5 million– slightly more than twice the highest paid running back […]
A written tour of business bankruptcy and its alternatives In case you are hopping on board the bus in the middle of our tour, you may want to know that this installment looks at some of the more mundane stuff that happens after a Chapter 11 case is filed but before the end of the […]