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Insolvency
90 Second Lesson: What Is a Composition Agreement?
What is a composition agreement? It’s a bankruptcy alternative that can alter payments to creditors that want to keep the debtor in business. Learn more in this 90 second lesson.
Steps a Supplier Can Take in the Face of a Potentially Bankrupt Retailer
A supplier to a potentially bankrupt retailer can mitigate losses by invoking the right to suspend delivery, demanding adequate assurance, and more.
Chapter 15 Bankruptcy: A Concise Overview
Chapter 15 bankruptcy is a tool for foreign companies with assets in the United States to get assistance from a U.S. bankruptcy court.
90-Second Lesson: You Default on a Commercial Loan, What Happens Next?
QUESTION: Scott T, emailed, asking, “I have a client who owns a few income-producing properties, and she thinks she may not be able to make her next mortgage payments to her lender. What should I tell her to expect?” ANSWER: Once a default on a commercial loan is looming or occurs, a proactive mortgage lender […]
When a Seller of Real Property Files for Bankruptcy Before Closing
Purchaser’s Rights Under an Executory Contract Sven, of St. Paul related this sad but musical tale to us, which pertains to purchasing real estate where the seller files for bankruptcy before closing: You see, she and I entered into a written contract to buy a piece of land near St. Paul with a small house […]
What to Consider When Selling a Bankruptcy Claim
Why Sell a Bankruptcy Claim? Imagine this: One of your customers sends you a notice stating it has filed for chapter 7 or chapter 11 bankruptcy protection rather than the payment for goods or services provided that you were expecting. In technical terms, you now have a “claim” against the “debtor,” but you aren’t sure […]
Commercial Real Estate Tenant Bankruptcy — What To Do
When a commercial real estate tenant files a chapter 11 bankruptcy case, the landlord faces unfamiliar issues. Although each case is unique, this article provides a basic overview of the issues commercial landlords could run into.
Assess 3 Potential Preference Action Defenses
These 3 preference action defenses options involve a detailed analysis of historical business interactions and utilization of records to support your transactions.
The “A&P” Chapter 22 Bankruptcy Saga: A Canary in the Coal Mine
On July 20, 2015, the Great Atlantic & Pacific Tea Company, made history by filing what we in the restructuring industry like to call “Chapter 22 Bankruptcy.” Read more to see how this case unfolded and what it means for struggling grocers and retail stores.
There Ought to Be a Law, and There Is: When the Insolvent LLC’s Manager Distributes Cash But Does Not Pay Creditors
The borrower is an LLC managed by a greedy principal member. The borrower slowly pays the secured creditor and unsecured creditors over years and its business becomes insolvent. The insolvent LLC makes cash distributions to its members, but not to the secured creditors. Is there a law against this sort of behavior?