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Insolvency

Sears Chapter 11 Rulings Threaten to Upend Administrative Claim Status for Goods Vendors

Application of Section 503(b)(1)(A) and 503(b)(9) in the Sears Chapter 11 Filing Precedent setting rulings in the Sears chapter 11 case could radically alter how vendors support companies who file for bankruptcy in the future. Historically the presumption and practice in the vast majority of bankruptcy cases has been that vendors receive priority status for […]


Dealing with Corporate Distress 03: Welcome to the Jungle: The Animals of the Corporate Restructuring Industry

The ABCs of ABCs, Business Bankruptcy, & Corporate Restructuring/Insolvency Who are you? Maybe your company needs to file chapter 11. Or one of your customers recently filed. Or maybe a competitor is in (or is rumored to be close to filing) chapter 11. Maybe you’re thinking about getting into the corporate restructuring industry yourself. Regardless […]


This Greek statue in a museum symbolizes fraud And deceit in bankruptcy cases

Fraud And Deceit in Bankruptcy Cases – Lessons from “The Clouds”

What Can An Ancient Greek Playwright Tell Us About Bankruptcy? Some of the best lessons on fraud and deceit in bankruptcy were written around 2,500 years ago. Yes, all the way back in 423 B.C., the Greek playwright Aristophanes offered his thoughts for posterity in his comic play “The Clouds,” which tells the story of […]


A candle glowing in the dark, symbolizing investors dealing with corporate distress

Dealing with Corporate Distress 01: Hello Darkness, Our Dear Friend

A Series on the ABCs of ABCs, Business Bankruptcy & Corporate Restructuring/Insolvency Greetings, Dear Reader: It seems you’re interested in learning how to deal with corporate distress, and we’re glad you’re here. But let’s first make sure you got on the right plane. Maybe you… Are a C-suite executive of a business that’s considering buying […]


Old alarm clock

90 Second Lesson: Is Bankruptcy Needed if Creditors Will Just Agree to Take Less?

QUESTION: Murray D. emailed, recently: “I am a general corporate lawyer. One of my clients has been in business for 50 years. It has no bank debt but it owes its vendors about $2 million. He told me that most or all of his vendors are willing to work with him by writing some small […]


Small waterfall

Investing in Bankruptcy Claims as a Cash Investment

Investing in bankruptcy claims can be very profitable or can result in a significant, or even total, loss. Bankruptcy claims are a creditor’s right to payment from a debtor. A bankruptcy claim can be secured by the debtor’s property or can be unsecured. Claims are classified in chapter 11 plans of reorganization according to their […]


When a Seller of Real Property Files for Bankruptcy Before Closing

What are the purchaser’s rights under an executory contract? Sven, of St. Paul, related to us this sad but musical tale, which pertains to purchasing real estate where the seller goes bankrupt before closing: You see, she and I entered into a written contract to buy a piece of land with a small house on […]


Dealing With Distress For Fun & Profit – Installment #6 – The Mundane Middle of A Bankruptcy Case

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 […]


Dealing With Distress For Fun & Profit – Installment #5 – A Peek Into Some Basic Chapter 11 Concepts

A written tour of business bankruptcy and its alternatives Subsequent installments in this series will cover the concepts touched upon here in more detail.  We think it prudent, if not necessary, to at least throw some basic chapter 11 concepts on the table now, however, since they are so fundamental to any Chapter 11 case- […]


Dealing With Distress For Fun & Profit – Installment #4 – The Lifecycle of a Distressed Company

A written tour of business bankruptcy and its alternatives Companies in chapter 11 typically consider (or at least should consider) other options before ending up there. In fact, distressed businesses tend to follow a fairly predictable pattern, or lifecycle: denial, anger, bargaining, depression, and acceptance- – – No, those are the five stages of grief. […]


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